Introduction to Islamic Finance

water_drop

Video Tutorial: Why Islamic Finance

Watch an introductory video tutorial available for free at www.EthicaInstitute.com.

Understand the problem with artificial wealth creation.

Learn how Islamic finance differs from conventional finance.

Find out how Islamic finance makes money.

Familiarize yourself with basic Islamic finance principles.

Watch here.

——————————————————————————————————————

 

Introduction to Islamic Finance 

By Mufti Taqi Usmani

Read online HERE

TABLE OF CONTENTS:

Musharakah
The concept of Musharakah
The basic rules of Musharakah
Distribution of Profit
Ratio of Profit
Sharing of Loss
The nature of the capital
Management of Musharakah
Termination of Musharakah
Termination of Musharakah without Closing the Business

Mudarabah
Business of the Mudarabah
Distribution of profit
Termination of the Mudarabah
Combination of Musharakah and Mudarabah

Musharakah & Mudarabah as Modes of Financing
Project financing
Securitization of Musharakah
Financing of a Single Transaction
Financing of the Working Capital
Some objections on Musharakah financing
Risk of Loss
Dishonesty
Secrecy of the Business
Clients’ Unwillingness to Share Profits
Diminishing Musharakah
House Financing on the Basis of Diminishing Musharakah
Diminishing Musharakah for Carrying Business of Services
Diminishing Musharakah in Trade

Murabahah
Introduction
Some Basic Rules of Sale
Bai’ Mu’ajjal (Sale on Deferred Payment Basis)
Murabaha as a mode of financing
Murabahah as a Mode of Financing
Basic Features of Murabahah Financing
Some issues involved in Murabaha
Different Pricing for Cash and Credit Sales
The Use of Interest-Rate as Benchmark
Promise to Purchase
Securities against Murabahah Price
Guaranteeing the Murabahah
Penalty of Default
No Roll Over in Murabahah
Rebate on Earlier Payment
Calculation of Cost in Murabahah
Subject Matter of Murabahah
Rescheduling of Payments in Murabahah
Securitization of Murabahah
Some basic mistakes in Murabaha financing

Ijarah
Basic rules of leasing
Lease as a mode of financing
The Commencement of Lease
Different Relations of the Parties
Expenses Consequent to Ownership
Liability of the Parties in Case of Loss to the Asset
Variable Rentals in Long Term Leases
Penalty for Late Payment of Rent
Termination of Lease
Insurance of the Assets
The Residual Value of the Leased Asset
Sub-Lease
Assigning of the Lease
Securitization of Ijarah
Head-Lease

Salam and Istisna’
Salam
Conditions of Salam
Salam as a Mode of Financing
Some Rules of Parallel Salam
Istisna’
Difference Between Istisna’ and Salam
Difference Between Istisna’ and Ijarah
Time of Delivery
Istisna’ as a Mode of Financing

Islamic Investment Funds
Equity fund
Conditions for Investment in Shares
Ijarah fund
Commodity fund
Murabahah Fund
Bai’-Al-Dain
Mixed fund

The Principle of Limited Liability
Waqf
Bait ul mal
Joint stock
Inheritance under debt
The limited liability of the master of a slave

 The Performance of the Islamic Banks —A Realistic Evaluation

——————————————————————————————————————

 

Meezan Bank’s Guide to Islamic Banking

By Dr. Imran Usmani

Section I: Introduction to Islamic Economic System

Section II: Riba, Its Prohibition & Classifications

Section III: Islamic Contract

Section IV: Islamic Modes of Financing

Section V: Banking in Islam

Section VI: Applications of Islamic Financing

——————————————————————————————————————

 

Fiqh or Fiction: Is Islamic banking truly Islamic, or is it just cosmetically-enhanced conventional banking?

By Atif Khan (www.IslamicAdvisory.com)

Islamic bankers, caught between scholars and layman, devote much of their time to an often-skeptical public about the authenticity of their products. Time well spent. The purgative effects of ridding the Islamic financial sector of pretenders (and there are many) at the hand of an educated consumer are obvious. Too often, however, this educational process is long on theory and short and practical relevance.

The following are among the most commonly asked questions by customers new to Islamic banking (ordered in increasing degree of complexity).

Read the rest …

——————————————————————————————————————

 

21 Commonly Asked Questions Regarding Islamic Finance & Banking

By Atif Khan (www.IslamicAdvisory.com)

We spoke to bankers, both Islamic and conventional, and laymen, both sincere and skeptical, and compiled 21 of the most commonly asked questions related to conventional mortgages. We confirmed the answers with qualified scholars who referred back to the Qur’an; Sunna of the Prophet, may God bless him and give him peace; the scholarly consensus of the four traditional schools of Sunni jurisprudence, the Hanafi, Shafi‘i, Maliki and Hanbali schools, the same ones followed by imams Bukhari, Muslim, Nawawi, Suyuti, Ghazali and the other leading jurists of Islam; and the Shari‘a standards of the world’s largest regulatory body governing Islamic banks, the Accounting and Auditing Organization for Islamic Financial Institutions in Bahrain.

The following are actual questions posed by Muslim

homebuyers and industry practitioners:

Part 1

Part 2

Advertisements

18 responses to “Introduction to Islamic Finance

  1. Amin Ibrahim Gandhi

    Salaam Alykum,
    I want to make enquiries on the institutions that offer masters in islamic Finance or islamic banking.
    Thank you.
    Aminu Gandhi

  2. I have read some English and French books about this topic ,and I got convinced of the truth of Islamic economy ,even if my post notes about its opportunities of practise .

    And thank you Zuberi for the link it’s really helpful .

  3. i want to know about objective the islamic finance

  4. Assalaam Alaikum, my daughter has completed B.com from Kakatiya University, Warangal Dist. A-P. I want my daughter to take admission in the new course “Islamic Banking and Finance” please advice me how can i apply and do you run course in Hyderabad or Warangal (A-P). Could you send me course details and fee details and the training Centres of the Courses in A.P on my email address. i am living in Dubai and my family is in inid hyderabad.

    Thank you
    Khaleel Khan – Dubai UAE.
    e-mail: kkhan2001in@yahoo.co.uk

  5. I don’t know anything about the islamic economy can we read sth about it i mean are there any books or magazines?

  6. Thanks for your blog !

  7. tha is very intresting and helpful for us that we have devoloped an islamic system i pray for its growth and evalution to the level of full purity.
    how can i get the regular updates about islamic banking

  8. Nasibullov Ali

    Assalaam Alaikum,
    I am interesting in Islamic Economics Instruments and Finance. It is necessary for me to get information on Islamics Finanancial Halal Standarts for banks, JSC, takkaful etc. I would be very happy to take part in a course of Islamic Finance but could not get some information how can i get it and how much does it cost. Thankyou

  9. i think it is one of the better institutions in the field of islamic finance and islamic banking.i will pray for it to become a great success in world financial crunch

  10. Readers my find my website of interest

    Brian Kettell

  11. Salam…i would like ask you a few questions:
    1) how can circular resolution be done in A shariah board meeting? is it a common practise between the International Shariah board? like aaoifi or ifsb?

  12. assalamu’alaikum..

    thanks for these great introductions…

  13. as for Meezan Bank’s Guide to Islamic Banking, now can be downloaded (complete) here

    http://www.meezanbank.com/docs/GIBcomplete.pdf

  14. Pingback: Trending in Alexa

  15. Abubakar Dissa Mohd Fika

    resourceifuslly, the site?

    d

    khd

    h

    l

  16. To

    The Islamic Finance Resource Subject: Request for Financial Assistance for Treatment
    R/Sir,
    I am very poor person. I am suffering from a severe lung disease and have been operated on two times in Liquat National Hospital Karachi. I have spent about fifteen Lac on my operations and medicine while taking huge loan. But I have not recovered as yet and the treatment is still continuing. I live in a rented house. I have a six member family and I am the sole supporter of it. I am a Non- government(NGO) employee and work as Literacy Coordinator in NCAD (National Commission for Human Development). My monthly salary is about seventeen thousand.
    It is extremely difficult for me to support my family and pay back the loan already taken and continue my treatment at the same time. You are therefore requested to kindly please assist me financially so that I may be able to continue my treatment.
    Looking forward to your favourableand kind consideration.

    Thanks

    Sikandar Ali Shah Bukhair S/o Syed Ahmed Ali Shah CELL NO . +923337544899 MY ACCT: NO.01- 01-101-3913-7
    BANK CODE NO 0233 ABL BANDAR ROAD LARKANA Date: __18___/__01____/_2015__

  17. Linos are not available, could you please update the links?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s