Islamic Banking and Finance

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. What is Waqf? The term Waqf (plural: Awqaf) is derived from the Arabic root word “وَقَفَ” which generally means to stop, contain, or preserve. In Islamic law, Waqf

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