Islamic Banking and Finance

What is Takaful? Takaful is an alternative to conventional insurance. It is a major Islamic insurance type where participants put their money into a pool system to mutually help each other in the period of any loss or disaster. Takaful Insurance works rely on the principle of cooperation (Ta’awun). In essence, every participant of the […]

Purification refers to disposing of unacceptable profits by donating them to charity. Of course, Shariah does not allow Muslims to profit from unacceptable practices and impermissible sources. So, Muslim investors are expected to eliminate any income derived from riba or other haram sources. Subsequently, Shariah scholars have given direction on the topic of income purification.

Islamic Finance protects consumers in many ways. The most important features are its freedom from Riba, Gharar, Maysir, and avoidance of trading impermissible goods and services. Furthermore, Islamic Finance, at its core, promotes the principle of justice and equity.   Get Musaffa Premium Now  Prohibition of Riba Riba is usury or interest in English. Riba is

Development of Islamic Finance The UK has witnessed rapid growth in the Islamic Finance sector in the last five years. UK market is the 17th largest in Islamic Finance out of 48 countries. Furthermore, it is the first non-Muslim majority country to be the main Islamic Finance hub in Europe. Initially, with the introduction of

Islamic Finance is blossoming in this world from time to time. There are strong Islamic inter-bank money markets and Islamic capital markets at work. Islamic Finance had been established to avoid riba’, gharar, and maysir. In this article, we will look into the four principles of Islamic Finance. The following are the four principles of

Musharakah is a partnership agreement in Islamic finance in which partners share in the profits and losses of a business. Musharakah is a type of Shirkah al-Amwal (or partnership), which in Arabic means “sharing.” Since Shariah prohibits interest in lending, Mushakarah allows that partners distribute the profit on pre-agreed ratios, while each partner shares the

Ijarah derives from Arabic, meaning “to give something on rent.” It is a type of contract in Islamic Finance that requires the bank to buy an item for a customer and then lease it back. Being very similar to the leasing contract, as a customer, you can use an asset or equipment, which an Islamic bank owns for

Have you ever heard about the Islamic term “Waqf” and wondered what it means? In this post, we will learn about what Waqf is and its types. Get Musaffa Premium Now  What is Waqf? Waqf means endowment when you translate the term from Arabic. According to Shariah, a Waqf is the dedication of a property,

Do you know the uniqueness of Istisna’ in Islamic finance? You may have heard the word “istisna” and you may be wondering what it is. In this article, we will explain what it is. Hopefully, you can use this to your advantage with this knowledge. Get Musaffa Premium Now  Firstly, Istisna is a sale contract