INTERNATIONAL WORKSHOP

Global Islamic Market

Asian Perspectives on the Diversity of Capitalism

November 22th 2018
9:30 - 17:30
Paris Science et Lettres Université
Room 4, 60 rue Mazarine, 75006 Paris
Presented by the Fondation France-Japon of the EHESS with the support of PSL-IRIS Études Globales,
this project aims to deliver an encompassing analysis of the configuration of the new economic and religious
dynamics within Islamic capitalism, to assist our understanding of the diversity of capitalism. At the occasion
to launch this project, this kick-off meeting will reexamine the state of the art of Islamic economies, throughthe process of its institutionalization and its application into practice by actors. What kind of normativetransformation has occurred in the evolution of Islamic economic ideas of Islam? How have the ancient Islamic
jurisprudences been interpreted to bring them into modern contexts, especially with regard to geographicaland doctrinal differences? How can the development of Islamic capitalism be understood in the context ofthe global economic system, which includes the secular and non-Muslim world? How Islam is mobilized tolegitimate economic activities and to create the system of value? The objective of this kick-off meeting is tounderstand the historical, political and social context of the Islamic capitalism to further our discussion on theformation of the “Global Islamic Market.” Three panels will be proposed to discuss the genesis, historicity ofthe economic though of Islam, institutionalizations of Islamic finance, and on a micro level the practices anda role of Muslim entrepreneurs on the Islamic market.

Programme
9:30 - Opening remarks by Sébastien Lechevalier (EHESS)

Session I: The Genesis of the Economic Thought of Islam
Discussant: Sébastien Lechevalier (EHESS)

9:45 - Redefining an “Islamic Economy” in Modernity
Frédéric Coste (CERI-Sciences Po)

10:15 - Return on “Islam and Capitalism” by Maxime Rodinson: Some
Observations

Hocine Benkheira (EPHE)

10:45 - Reconsidering the Intellectual Heritage of Islamic Economic Studies inJapan and France

Shinsuke Nagaoka (Kyoto University)

11:15 - Discussion
11:45 - Lunch BreakSession II: Institutionalizations of Islamic FinanceDiscussant: Pascal Buresi (EHESS, CNRS)

13:00 - Islamic Reforms and the Economic Development Agenda in Malaysia
since the 1980s

Mohamed Aslam Haneef (International Islamic University Malaysia)

13:30 - Do Determinants of Fees Differ between Islamic and Conventional Funds?
Kaouther Jouaber-Snoussi (Université Paris-Dauphine, PSL Research University)

14:00 - European Genesis of Islamic Finance
Bochra Kammarti (EHESS)

14:30 - Discussion
15:00 - Coffee BreakSession III: The practices in the Global Islamic Market at
Stake
Discussant: Hocine Benkheira (EPHE)

15:30 - Sufi Entrepreneurs in Central Asia: From National to Transnational
Networks

Yana Pak (EHESS)

16:00 - Mapping Islamic Leisure Travel in Non-Islamic Countries: Discussion of
Halal Tourism from an East Asian Perspective and Beyond
Shin Yasuda (Takasaki City University)

16:30 - Discussion

List of Communications
Return on “Islam and Capitalism” by Maxime Rodinson: Some observations
By Hocine Benkheira (EPHE)
Rodinson’s book was first published in 1966, more than half a century ago. The context was a two-level
debate. First level: the question of the development of the so-called «underdeveloped» countries and the«exit» of underdevelopment (problematic that has generated an abundant sociological, political and economic
literature). Second level: the question of the development of capitalism in Western European societies, withreference to the opposite approaches of Karl Marx and Max Weber. Efforts will be made here to highlight thepresuppositions of the debate, in particular the notion of «economy», namely that the productive practices
constitute everywhere an autonomous field of human activity and that would be distinguished by their own«laws». Here we will mainly question this assumption according to which the economy plays a decisive rolein all societies, regardless of geographical area or time.

Redefining an “Islamic Economy” in Modernity
By Frédéric Coste (Sciences Po)
This presentation aims at highlighting “worldviews” appearing in relation to the economic precepts of Islam.
They reveal fundamental transformations between politics, law, morality, knowledge, history and society.
A cosmological shift will be shown to occur between the classical period of Islam and modernity, entailinga renewed conception of religious principles with the advent of “social justice”. The “worldview” of Jamaati-islami claims to set up the “Economic system of Islam”, which will be determined in confrontation with
ideologies such as Communism, Socialism, National-socialism, Secularism, Nationalism, and Capitalism,
during the partition of India and the creation of Pakistan. This conception will ultimately be in conflict with a
new one under the name of Islamic Finance in the mid-70s, giving birth to an unprecedented definition of thisreligion.

Islamic Reforms and the Economic Development Agenda in Malaysia since the
1980s
By Mohamed Aslam Haneef (International Islamic University Malaysia)
The presentation will first provide some demographic statistics of Malaysia and discuss the structuraltransformation of the Malaysian economy as it moved from a more laissez-faire market system in the late
1950s and 1960s, to one that saw a greater state role in the development agenda with the introduction of the
New Economic Policy in 1970. The 1970s and 1980s global Islamic resurgence also witnessed the questioning
and rejection of the modernization/secularization thesis by many scholars/consultants to developing nations.
An Islamic reform agenda was introduced in Malaysia during the Mahathir Administration and it focusedconsiderably on the economic dimension- and could be seen as part of the political and socio-economic
agenda of the State. This Islamic reform agenda was introduced by the state in plural Malaysia for the ‘nationand its peoples’. In trying to explain the Malaysian experience, attention will be given to the 3Ps i.e. politicalwill, people and policies. From one angle, these primarily Islamic economic reforms seem to have beensuccessful in that Malaysia, despite being a relatively small country, has managed to be the overall leader inthe Halal economy for the last few years as stated in the Global Islamic Economy Report.

Do Determinants of Fees Differ between Islamic and Conventional Funds?
By Kaouther Jouaber-Snoussi (Université Paris-Dauphine, PSL Research University) & Meryem Mehri(Université Paris-Dauphine, PSL Research University)
This paper considers an international sample of conventional and Islamic funds to assess whether country
conditions affect the fund manager fees. Overall, the results strongly show that legal conditions, culture
and political risk have robust effects on fund manager fees. We find that Islamic and conventional funds indeveloping countries with weaker legal settings and higher corruption have higher fixed and performancefees. However, performance fees will be lower and fixed fees will be higher in countries with higher politicalrisk. Overall, Hoefsted’s cultural values significantly affect the fees of managers with robust differential effects
between Islamic and conventional funds.

European Genesis of Islamic Finance
By Bochra Kammarti (EHESS)
Islamic finance resulted by the thought of an Islamic economy emerging in the first half of the twentieth century
as a critique of capitalism and socialism (Coste, 2015, Islahi, 2016). By Islamic finance, we understand an
Islamic financial normative repertoire and the creation of a financial industry, that is to say, a set of institutions
and organizations that work to produce and disseminate services and standardized contracts of finance orinsurance in a large scale.
The circulation in Europe of this normative repertoire creates conflicts of norms and practices between,on the one hand, the Islamic prescriptions of the shariah - Koran and Sunnah - and on the other hand
the monopolies of European financial uses (Kammarti, 2015, 2017). This communication describes theseconflicts of norms and the creation in Europe of an offer of Islamic finance. This interpenetration (Göle, 2005)
resulted by the jointly work of religious and secular, Muslims and non-Muslims, private and public actors. As
in the Muslim world, Islamic finance training appears in the academic field, Islamic financial norms circulates
in spaces of law – Parliament and Justice Court – and spreads at the local level through financial institutions(banks, insurance companies, Internet platform, etc.).
The creation of an offer of Islamic finance at the local European level gives the opportunity to European
Muslims to finance their personal or professional projects in accordance with the sharîa, and the possibility
for financial professionals – bankers, lawyers, etc. – to work in accordance with their faiths and ethics. This
new pious middle class does not oppose the secular neoliberal hegemonic model (Göle, 2000, Haenni,2005), but attempt to find a way to developp a socially responsible capitalism through the Islamic reference.

Reconsidering the Intellectual Heritage of Islamic Economic Studies in Japanand France
By Shinsuke Nagaoka (Kyoto University)
Since the middle of the twentieth century, intellectual debate aimed at the reconstruction of the economic
system based on the teachings of Islam has been active in the Islamic world. This reached the formationof an independent academic discipline known as “Islamic economics” in the 1970s. Islamic economics was
not only an academic discipline but also a pragmatic movement that had a great influence on the revival ofIslamic economic practices such as Islamic finance, the halal industry and revitalization of the traditional
Islamic economic institutions (zakat and waqf). It is obvious that Muslim scholars are the main players ofIslamic economics. They considered the revival of Islamic economic practices an urgent issue closely related
to their own faith and life and provided various innovative ideas and products. At the same time, Anglo-Saxon
countries also played a major role in the development of Islamic economics and related practices. Some
universities in these countries such as Durham University, UK and Harvard University, USA set up research
centers specializing in Islamic economics, and major financial institutions have become actively involvedin Islamic finance and have greatly contributed to improving the sophistication of its financial products.
Therefore, it can be said that Islamic economics and related practices revived in the modern era have been
led by the collaboration between the Islamic world and Anglo-Saxon countries. This presentation refers to thisas “Islamic and Anglo-Saxon path of Islamic economics.” Apart from mainstream Islamic economics, there
are countries such as Japan and France that have fostered their own traditions of “Islamic economic studies”(The presentation does not refer to this as “Islamic economics”). Islamic economic studies in these countries
do not necessarily directly contribute to the development of Islamic economic practices but have produced
original research from their own perspectives, taking advantage of the relative separation from the subject.
This presentation attempts to trace the traditions and development of Islamic economic studies in Japan andFrance. It examines how we can utilize and develop such intellectual heritage for this brand-new research
project on the Islamic economy based in France with Japanese researchers.

Sufi Entrepreneurs in Central Asia: From National to Transnational Networks
By Yana Pak (EHESS)
Since the 1970s, after the oil boom, the Islamic economy has grown significantly. Through the transformationand confessionalization of solidarity groups in Kazakhstan, we will try to see if the islamized economy offers
a new framework of economic organization and redistribution of wealth, valuing and mobilizing both, private
initiative and solidarity, on the scale of the whole social body. This paper, based on fieldwork research
conducted in Kazakhstan between 2014-2016, explores how Halal economies and Muslim entrepreneurs
are being driven not only by market demands and economic opportunities, but also by religious thinking
and contest, which leads progressively to the emergence of new forms of non-institutionalized organization,
nourished by Islamic values. And how local national branches of Sufi businessmen from Central Asia, Turkey
and Europe are connected to the transnational network of Sufi Brotherhood.

Mapping Islamic Leisure Travel in Non-Islamic Countries: Discussion of Halal
Tourism from an East Asian Perspective and Beyond
By Shin Yasuda (Takasaki City University of Economics)
In recent years, halal tourism and Muslim tourists have been widely recognized in the tourism industries ofEast Asian countries such as Japan, South Korea, Taiwan and China, and have gained a certain popularity
within the field. Local governmental institutions as well as tourism industry representatives in these countries
have actively promoted the development of this market, making Muslims and Islam much more visible in
the East Asian tourism industry. However, there is a lack of large Muslim populations and knowledge about
Islam in East Asia; consequently, the description of halal tourism, Muslim tourists, and Islam vis-a-vis tourism
activities frequently encounters difficulties with miscommunication among stakeholders, who are mostly nonMuslims. In the discourse on halal tourism in these countries, however, there is a new and increasingly
quite significant demographic initiative, which includes social and financial networks to establish positive
experiences for both the host and guest communities.
Previous studies, however, have focused on the importance of halal consciousness regarding individual
Muslim tourists by analysing their motivation and satisfaction from the perspective of consumer behaviours
and service-marketing management. As a result, these studies have trivialised the social impact of these
activities by limiting them to the individual sphere and have thereby overlooked the broader influence of
halal tourism. Indeed, the discussion of halal tourism inside and outside Muslim communities should not
be limited to individual Muslim tourists; rather, the social effects of Islamic values, i.e., “Islamic leisure,” onhost communities and other Muslim tourists are of greater significance. In this sense, halal tourism can be
described as an investment in social dynamics that can reconfigure the existing perspectives and experiencesof both host and guest communities.
This presentation, therefore, explores the import of Islamic leisure by analysing the emerging social
phenomenon of halal tourism in East Asian countries—and in particular, the social impact of halal Muslim
financial influence and social networking.

Presentation of Speakers
Mohammed-Hocine Benkheira After teaching at the Universities of Oran, Algierand Rouen, Hocine Benkheira was elected to the EPHE, to the Section of Religious
Sciences, in 1999 lecturer, and in 2007 director of studies. He holds the Chair
Training Legal Doctrines and Ritual in Islam from the 7th to the 15th century. He
published L’amour de la Loi. Essai sur la normativité en islam (PUF, 1997), Islamet Interdits alimentaires : juguler l’animalité (PUF, coll. « Pratiques théoriques »,2000) et La maîtrise de la concupiscence. Mariage, célibat et continence sexuelle enislam, des origines au XVIe siècle (Vrin, collection « Etudes musulmanes », 2017).
In collaboration, he published L’animal en Islam (Les Indes savantes, 2005) and La
famille en islam, d’après les sources arabes (Les Indes savantes, 2013). He is also amember of the Editorial Board of Studia Islamica.
Frédéric Coste is an associate doctor at CERI-Sciences Po. He holds a PhD in
Political Science obtained in 2015 at the IEP of Paris, on Islamic economics andfinance. For the past four years, he has co-hosted a seminar on «Islam and the
new spirit of capitalism» at EHESS / IISMM. He also teaches international political
economy at the Ecole Polytechnique and Sciences Po. His works have been publishedin Studia Islamica, Revue des mondes musulmans et de la Méditerranée (REMMM),
Revue du Mauss.
Mohamed Aslam Mohamed Haneef, Ph.D is currently Professor at the Departmentof Economics and Director, Centre for Islamic Economics, International Islamic
University Malaysia (IIUM). He received his PhD from the School of Development
Studies, University of East Anglia, UK. He was Fulbright visiting scholar at the Center
for Muslim-Christian Understanding, Georgetown University, US from SeptemberOctober 1996 and held a Commonwealth Fellowship at the Oxford Centre for Islamic
Studies (1999-2000). He has published books and articles and conducted researchin various areas of Economics, Development Studies and Islamic economics. Current
research interests in socio-economic impact of awqaf and social economics/finance.
He is also actively involved in numerous public and private executive training programs, specializing in Islamic
economics and contemporary development issues. Editorial Board member for IIUM’s Journal of Economics
and Management Sciences from 1997-2010, advisory member since 2010 and its Chief Editor from July
2005- December 2008. Also Editorial Board member of Intellectual Discourse July 2008- Dec 2014. Appointed
Executive Committee Member, International Association for Islamic Economics (IAIE), 2012 till present andInternational Council of Islamic Finance Educators (ICIFE), 2014 till present. Investment Committee member
for Affin Islamic Funds 2001-2014 and PMB Investment Berhad, 2016 to date.
Kaouther Jouaber-Snoussi is Doctor in Finance and a Senior Lecturer of Financeat Université Paris-Dauphine, PSL Research University, CNRS. She is member of
DRM-Finance research center. She has co-founded and is Program Director of the
Executive Master “Principles and Practices of Islamic Finance” since 2009. Headof finance teaching at the Paris-Dauphine Management Bachelor’s Degree, she isalso involved in several Masters of finance of the University. She is the author ofmany papers and books on Islamic finance, corporate finance and microstructureof financial markets. Her research area is covering the microstructure of financial
markets, market regulation and Islamic finance. Most of her recent research focuseson the underlying stock market quality upon option listing. She is also developing research on the performanceof Islamic finance institutions and mutual funds.

Bochra Kammarti is a PhD student at the Ecole des Hautes Etudes en Sciences
Sociales (EHESS) of Paris. Bochra Kammarti graduated from the University ofGranada (Spain) and the University of Leipzig (Germany) in sociology, politicalsciences and cultural studies. She obtained her Master’s degree in Social Sciencesfrom the EHESS. The central theme of Bochra Kammarti’s research is the presenceof Islamic religious patterns in secular context. After obtaining her Master’s Degree on
the contemporary phenomenon of veiled women in Tunisia, she continues her studies
in a PhD program, focusing on one hand on the emergence of Islamic finance inEurope and on the other hand on the articulation between religious beliefs and financial, economic practices.
In 2010, she joined the ERC research project EUROPUBLICISLAM directed by Nilüfer Göle as research
assistant until 2012. Since 2017, she participates in the IEG project Norms, Practices and Politics. Islamin Europe in the global era, directed by Nilüfer Göle and to the IEG project Global Islamic Market: Asian
Perspectives on the Diversity of Capitalism, directed by Sébastien Lechevalier.
Shinsuke Nagaoka is an Associate Professor at the Graduate School of Asian and
African Area Studies, Kyoto University, Japan. He has M.A. in Economics from the
University of Tokyo (2004), and a Ph.D. in Islamic Area Studies from Kyoto University(2009). He has studied Islamic economics & finance from the interdisciplinary aspects;
economics, history and Islamic studies. His major publications are A Study on Islamic
Finance in the Modern World (in Japanese, The University of Nagoya Press, 2011)
and Islamic Economics and Finance in Action: Inventing a New Universal Paradigm(in English, Brill, 2019, forthcoming).
Yana Pak trained in Sociology at the University of Sorbonne Paris IV, hold her MA on« Islamic Finance and Economic Habitus of Muslim Entrepreneurs ». PhD candidate
since 2013 at EHESS-CETOBaC, her thesis « Network of Sufi Entrepreneurs inCentral Asia » aims to analyze the emergence and confessionalization of new formsof solidarity groups nourished by islamic values, by focusing on Islamic economy
in the post-Soviet Central Asian context with national and trans-national prospects.
Currently she coordinates the seminar at EHESS-IISMM « Islam and New Spirit ofCapitalism ».

Shin Yasuda is Associate Professor at Department of Tourism Policy, Faculty ofRegional Policy in Takasaki City University of Economics, Gunma Prefecture, Japan.
He got BA in History at Sophia University in Tokyo, Japan and MA and Ph.D. in Area
Studies at Kyoto University, Kyoto, Japan. His research interests includes Islamic
tourism and religious tourism in Islamic countries, history of tourism in the Middle
Eastern countries, and theoretical studies in religious tourism, anthropology of
tourism and sociology of tourism. He edited the book titled Religious Tourism in Asia:
Tradition and Change through Case Studies and Narratives (CABI Religious Tourism
and Pilgrimage Series) with Razaq Raj and Kevin Griffin.