Islamic Banking and Finance

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