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Islamic social finance can be defined as “the branch of Islamic finance where the products and services offered are designed to achieve social goals with or without profit”. There is a…

In summary, there are sale-based contracts and investment-based contracts in Islamic finance. The existence of minimum two parties, offer and acceptance, Shariah-compliant purpose, subject matter,…

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, paid on the spot. This video is…

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 labor. Any profit generated…

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 specified future date at an…

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 imposition of a fee. This video…

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 BY-NC-SA license.

Islamic banks and conventional banks have different characteristics. One of the distinguished elements is the relationship between the bank and the customer. In an Islamic bank, the relationship…

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 form of contract. The third…

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 known as rent. This video is…

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 include murabaha,…

BMT, Baitul Maal wat Tamwil, is an Islamic microfinance institution that originated in Indonesia. Its Baitul Maal unit runs the social function and manages the Islamic social funds such as zakat,…

Zorigt Dashdorj introduces model contracts, a standard agreement a government presents to its counterparts. Model contracts can reduce the risks and challenges of negotiations by limiting the scope…

Herbert M’cleod describes the importance of carefully assembling the negotiation team, considering breadth of expertise and authority. Once a team is assembled, the team sets its positions,…

A successful contract depends on its implementation, monitoring and ability to survive in an ever-changing environment. Solongoo Bayarsaikhan looks at the work that comes after an agreement is signed…

A key part of negotiation preparation is familiarity with standard and specific contractual terms, particularly from peer countries with comparable extractive sectors and of the company with whom the…