Masudul Alam Choudhury: Islamic critique and alternative to Financial engineering issues, Comment by مسعود العالم شودري: النقد الإسلامي والبديل لقضايا الهندسة المالية ، تعليق: محمد عمر فاروق

This is definitely a scholarly paper of sufficient originality. Before I offer my critique, let me summarize the paper and identify its core aspects. 1. It argues that a financial system and its constituents “stand upon the assumptions of behavior, markets and institutions” of their respective methodological worldview. 2. The conventional financial institutions evolved from the Neoclassical worldview, which the author, coming from an Islamic background, totally rejects. ”The central point of risk-return analysis and interest-driven argumentation is shown to arise from the conformable preference, market and institutional ramifications of such argumentation in mainstream financial engineering. All these are premised on the epistemology of mainstream neoliberal and neoclassical worldview.” 3. Islam has its own methodological worldview and therefore Islamic financial system must be derived from its own Islamic worldview. ”In the case of the Islamic alternative, the mainstream financial engineering arguments and applications must be thorough revamped. Such an extensive transformation emanates from Islamic epistemological foundation, just as rationalism and economic rationality define the epistemological outlook of neo-liberalism and neoclassicism.” --