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 …
The Most Important 4 Principles of Islamic Finance Read More »
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 …
What is Musharakah? Definition, Example, and 2 Types of Musharakah. Read More »
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 …
What is Ijarah? Definition and 2 Types of Ijarah Read More »
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. What is Waqf? Waqf means endowment when you translate the term from Arabic. According to Shariah, a Waqf is the dedication of a property, a Sadaqah Jariyyah (ongoing …
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. Firstly, Istisna is a sale contract between the seller (bank) …