The Islamic Financial Engineering as a strategy for confronting financial crises risks


Global banking is facing major challenges especially in times of financial crisis. The financial crisis (2008) has led to weaknesses and strengths that have been the mainstays of the Islamic banks, which were the least harmful during this period and were more resilient to the financial crisis. Of other banks, as confirmed by a study of the International Monetary Fund on the ability of Islamic banks to meet their dues during the crisis period, then emerged the importance of Islamic banks and their role in the resilience to financial crises, Which can be counted as important strategies in the face of internal and external financial crises and reduce their effects.The importance of the subject of this research strengthens the great trend towards dealing with Islamic banks which have spread and increase in number. The increase in their demand due to their ability to benefit from the financial resources held outside the banking system to serve economic development in accordance with the teachings of Islamic law through the use of more sophisticated banking tools and products. Banks, as well as the need for their clients to provide sources of finance, crisis response and risk hedging.The researchers reached a number of conclusions and recommendations. The most important conclusions were that "Islamic banks have spread extensively in both Islamic and Western countries this helped spreading the services provided by these banks in a large number of countries in 2014.The spread of Islamic banking In Saudi Arabia was the highest at(51.2%) while the lowest was in Indonesia at(3.7%)". "The application of Islamic financial instruments contributes to the development of Islamic banking products". The main recommendations of the study was that" monetary authorities ( the central banks) should take into account the nature of the work of the Islamic banks and help develop the Islamic banking industry". "Islamic banks should periodically evaluate the tools, products and services provided through Islamic financial engineering in terms of the safety of these tools, according to Islamic law side.