The Handbook of Islamic Banking and Finance is a welcome addition to the growing literature on finance complying with the Sharia. In the past decade Islamic finance has become a dynamic and increasingly international part of the global financial system, which is estimated to amount to a $1 trillion industry. With some suggesting that the industry could again treble in size over the next decade or so, Islamic finance has the opportunity to become even more of a force to be reckoned with internationally.

Bahrain has played an important role in helping the industry's development throughout its recent history. The Central Bank of Bahrain (CBB) is generally acknowledged to have among the most well-developed and comprehensive regulatory regimes for Islamic finance in the world. As a result, Bahrain has become a major international centre for Sharia-compliant financial services and takaful (insurance). The CBB has also led the way in issuing sukuk, or Islamic bonds, in an effort to facilitate the growth of Islamic finance and to provide a much-needed liquidity instrument for Islamic financial institutions.