Although Islamic finance began in the seventh century, it has been formalized gradually since the late 1960s. This process was driven by the tremendous oil wealth that fueled renewed interest for Shariah compliant products and practice. HIBA MALIK writes. The concept of risk-sharing is central to Islamic banking and finance. It is essential to understand the role of risk-sharing in raising capital. At the same time, Islamic finance demands the avoidance of Riba (usury) and Gharar (ambiguity or deception). Accordingly,....