Islamic Finance
Ijara
Ijara or Leasing is the sale of the usufruct of an asset. Leasing is a contract whereby the owner of something transfers its usufruct to another person for an agreed period, at an agreed consideration. The subject of lease must have a valuable use. Therefore, things having no usufruct at all cannot be leased. more
Murabaha
Murabahah is a particular kind of sale where the seller expressly mentions he cost of the sold commodity he has incurred, and sells it to another person by adding some profit or mark-up thereon. more
Investment Funds
An investment fund is a joint pool wherein the investors contribute their surplus money for the purpose of its investment to earn halal profits in strict conformity with the precepts of Islamic Shari’ah. more
Salam & Istisna'
It is one of the basic conditions for the validity of a sale in Shari’ah that the commodity (intended to be sold) must be in the physical or constructive possession of the seller. There are only two exceptions to this general principle in Shari’ah. One is Salam and the other is Istisna’ more
Mudaraba
Mudaraba is a special kind of partnership where one partner gives money to another for investing it in a commercial enterprise. The investment comes from the first partner who is called 'rabb-ul-mal', while the management and work is an exclusive responsibility of the other, who is called 'mudarib'. more
Musharaka
Musharaka is a word of Arabic origin, which literally means sharing. In the context of business and trade it means a joint enterprise in which all the partners share the profit or loss of the joint venture. more