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shunyataxfin
Jul 20, 20233 min read
Sharing in the Gross Profit
Financing on the basis of musharakah according to the above procedure may be difficult in a business having a large number of fixed...
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shunyataxfin
Jul 20, 20233 min read
Risk of Loss in Musharakah
It is argued that the arrangement of musharakah is more likely to pass on losses of the business to the financier bank or institution....
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shunyataxfin
Jul 20, 20232 min read
Modes of Financing - Introduction
However, it does not mean that the concept of musharakah and mudarabah cannot be used for financing a running business. The concept of...
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shunyataxfin
Jul 19, 20233 min read
What is Loan & How do loans work
The concept of loan has undergone a significant change under capitalism. In the pre-capitalist era loans represented real savings....
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shunyataxfin
Jul 19, 20235 min read
Islamic House Financing
House financing arrangement is composed of the following transactions: 1. To create joint ownership in the property (Shirkat-al-Milk). 2....
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shunyataxfin
Jul 19, 20233 min read
Financing of the Working Capital
Where finances are required for the working capital of a running business, the instrument of musharakah may be used in the following...
20
shunyataxfin
Jul 18, 20235 min read
Diminishing Musharakah in Trade
The third example of diminishing musharakah as given above is that the financier contributes 60% of the capital for launching a business...
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shunyataxfin
Jul 18, 20235 min read
Variable Rentals In Ijarah
In the long term lease agreements it is mostly not in the benefit of the lessor to fix one amount of rent for the whole period of lease,...
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shunyataxfin
Jul 17, 20233 min read
Assignment of the Lease
The lessor can sell the leased property to a third party whereby the relation of lessor and lessee shall be established between the new...
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shunyataxfin
Jul 17, 20233 min read
Sub-Lease In Ijarah
If the leased asset is used differently by different users, the lessee cannot sub-lease the leased asset except with the express...
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shunyataxfin
Jul 15, 20234 min read
Rules of Leasing - Ijarah
. Leasing is a contract whereby the owner of something transfers its usufruct to another person for an agreed period, at an agreed...
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shunyataxfin
Jul 15, 20235 min read
Leased Asset - Residual Value
Another important feature of the modern ‘financial leases’ is that after the expiry of the lease period, the corpus of the leased asset...
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shunyataxfin
Jul 14, 20234 min read
Ijarah as a Mode of Financing
Like murabahah, Ijarah was not originally a mode of financing. It is simply a transaction meant to transfer the usufruct of a property...
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shunyataxfin
Jul 14, 20232 min read
Ijarah (Leasing) as a Mode of Finance
Leasing is well known in the west as a mode of finance. There are many reasons why an agent will opt for leasing rather than borrowing...
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shunyataxfin
Jul 14, 20233 min read
What is Ijarah & Ijarah Parties
It should be clearly understood that when the lessee himself has been entrusted with the purchase of the asset intended to be leased,...
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shunyataxfin
Jul 13, 20233 min read
Introduction to Ijarah
Ijarah is a term of Islamic fiqh. Lexically, it means ‘to give something on rent’. In the Islamic jurisprudence, the term ‘ijarah’ is...
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shunyataxfin
Jul 13, 20234 min read
Islamic Financing Sukuk Instruments
AAOIFI Shariah Standard No.17 (Investment Sukuk), broadly defines sukuk as certificates of equal value representing undivided shares in...
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shunyataxfin
Jul 13, 20236 min read
Sukuk al-Istithmar
The first step in structuring a sukuk is often to analyze what exactly the business of an originator entails and what assets (if any) are...
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shunyataxfin
Jul 12, 20237 min read
Sukuk al-İstisna
Alternatively referred to as the “Islamic project bond”, the structure of sukuk al-istisna has not been that widely used. Although, at...
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shunyataxfin
Jul 12, 20235 min read
Sukuk al-Murabaha
Although the sukuk al-murabaha structure is less commonly used in comparison to some of the other sukuk structures described in this...
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