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There are two types of contracts in Islamic banking and finance, which are sale-based (exchange-based) contracts and investment based (equity-based) contracts.…
Sale-Based Contracts in Islamic Finance: Murabaha
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Salam is a sale whereby the seller undertakes to deliver a certain commodity to the buyer at a future date in exchange of the full financial consideration, the price,…
Sale-Based Contracts in Islamic Finance: Salam
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Mudaraba is a form of partnership in profit whereby one party, the fund provider, provides capital, and the other party, the fund manager, provides management skills or…
Investment-Based Contracts in Islamic Finance:…
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Musharaka is a partnership between two or more parties, whereby all parties share the profit and bear the loss from the partnership. This video is licensed under the CC…
Investment-Based Contracts in Islamic Finance:…
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Wakala is a contract where a party, as principal authorizes another party as his agent to perform a particular task on matters that may be delegated, with or without…
Investment-Based Contracts in Islamic Finance:…
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From an Islamic perspective, human beings are not the real owners of wealth or resources, but their role is that of a trustee, appointed by the creator. Therefore,…
Introducing Islamic Microfinance and Islamic…
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In summary, there are sale-based contracts and investment-based contracts in Islamic finance. The existence of minimum two parties, offer and acceptance,…
Summary and Conditions of Contract in Shariah
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For Islamic finance to provide effective support to the Sustainable Development Goals, it is necessary to establish an enabling environment both at the country level and…
Contribution of Islamic Finance to the SDGs
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Islamic banks and conventional banks have different characteristics. One of the distinguished elements is the relationship between the bank and the customer. In an…
Introduction to Commercial Islamic Financial…
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Istisna is a contract whereby a seller sells an asset which is yet to be constructed, built or manufactured according to agreed specifications and delivered on an agreed…
Sale-Based Contracts in Islamic Finance: Istisna
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According to Shariah, a contract must have some pre-requisites. The first one is the existence of a minimum of two parties. Second, the offer and acceptance, namely the…
Concept and Nature of Contracts in Shariah
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Ijara refers to leasing whereby the ownership of a usufruct of an asset is transferred to another person for a specified period in exchange of a specified consideration…
Sale-Based Contracts in Islamic Finance: Ijara
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Sukuk, is one of the most important Islamic capital market instruments. According to the Shariah Standards published by the Accounting and Auditing Organization for…
An Introduction to Sukuk
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The key differences between the sukuk and the conventional bonds are related to the nature of issue, asset type, purpose, underlying contract, security, restrictions in…
Differences Between Sukuk and Conventional Bonds
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