Scientific Book ReviewConcept of Hedging in Islamic Finance Written by: AbdelKarim Guendouz, published by the Arab Monetary Fund, the United Arab Emirates, 2020 (1442 H), 77 pages

Abstract

This scientific review presents an analytical reading of the book ‘Concept of Hedging in Islamic Finance’ by AbdelKarim Guendouz, published by the Arab Monetary Fund.

In this review, the most important contents of the book, and authors’ ideas and recommendations have been explored. This book shows the beginning of the concept of hedging in general, then it presents the concept and theory of risk in conventional economic thought. It further explains in detail the concept of risk, its various divisions and its management. The author also tries to review the concept of hedging through a historical narrative, what does it look like now? How will it be in the future?

The author mentions some applications of hedging in the conventional financial industry, then he proceeds to define the concept of hedging in Islamic economic thought, clarifying its legitimacy,  sources and types. The author discusses the difficulty of providing  a precise differentiation  between the concepts of hedging and risk, then he deeply clarifies his attempts and attempts of many researchers in identifying that differentiation. Besides, this review discusses some ideas and recommendations offered by the author, as well as the authors’ contribution to science of risk management in general, and Islamic financial risk management in particular