Why it is felt that there should be a specifically Islamic finance industry? A major factor is the need felt by Islamic religious and political elites to present the Islamic community as a force to be reckoned with in the world economy and on the world political scene, that is, in identity politics. A weapon in this process is an emphasis on the uniqueness of Islamic ethics as originating in divine revelation, which is claimed to set Islamic society apart from others. However, a number of issues that the Quran and the Hadith, the prime sources on which Islam rest, are unequivocally clear about prevent Islam to fit the modern world. Radical revisions of the nature of divine revelation are required to remedy this uncomfortable situation. I highlight some of the ways shown by Islamic scholars to do this. As long as their efforts get a hostile reception in their own communities, the claims of Islamic finance being based on superior ethics is hollow.