Muslim Government Expenditure. Muslims' Preparedness for Globalization. Nature and Content of Islamic Economics. Necessary New Mindset: Globalization. Neoclassical Economics. Objectives of Fiscal Policy in an Islamic Economy. Permissible vs Forbidden Discounting. Positive Time Preference as Basis for Discounting. Poverty from the Wealth of Nations.
Poverty in the Land of Plenty. Principles of Taxation Policy. Progress of Islamic Economics. Putting Ideas to Practice. Required Rate of Return in an Islamic Economy. Risk Assumption by Employees. Role of Fiscal Policy. Size of Interest Receipts and Payments: Pakistan. Sources of Finance for Present Muslim States.
Stochastic Productivity of Investment as Basis for Discounting. System Constraints on Taxation. Tabung Haji Prospects. The Contemporary Scene of Economics. The Problems in Economics. The Role of Monetary Policy. The State of the Art. Theory of Fiscal Policy. Theory of Income Determination. Theory of Islamic Economic: The Future. Theory of Islamic Economics: Essentials. Tools and Instruments. Way Ahead for Muslims: Globalization. Where Shall Capitalism Lead. Islamic Economic System.
Pakistan Supreme Court Challenges. Pakistan Supreme Court Response to Challenges. Issues in Pakistan Supreme Court Response. Future Challenges: Pakistan. Evaluation of Pakistan Banking Changes. Legal and Practical Constraints: Tabung Haji. Legal Reforms In Pakistan: Structural Reforms in Pakistan's Legal System. Procedural Reforms: The Qanoon-i-Shahadat. Criminal Law Reform. Jurists and Bureaucrats.
Secular Political Opponents. The Status of Women in Pakistan. Hudood Ordinances. Repugnancy to Islam - Who Decides? Objectives Resolution: The Argument. Raising the Ceiung: Fate of Land Reforms. Educating the Public on the Merits of Interest-free Economy. Objectives Resolution and Riba. The Faisal Case: Findings and Implications. The Variables and Nonvariables in Legal Thought. The Secularized Muslim Elites' Dilemma.
Dynamics of Islamic Approach. Religious Liberty. Supremacy of the Sharjah. Implementation of Hudood Ordinances. Types and Disposition of Cases. Region and the Hudood Ordinances. Gender and the Hudood Ordinances. Origins of International Law. Development of Modem International Law in the West. Muslim International Law. Socio-Economic Justice: its Place in Islam. The Muslim World. Legal Framework for an Islamic Financial System. Islamic Law of Contract.
Islamic Law of Contracts and Gharar. Banking Services. The Treasury. The Financial Market Instruments. Leasing in Pakistan. Investment Auctioning. Financing on Normal Rate of Return. Time Multiple Counter-loans. Special Loans Facility. Methods to Finance Alternative Mechanisms. Alternative Mechanisms to Replace Riba.
Commercial Banking: Pakistan. Specialised Financial Institutions: Pakistan. Government Transactions: Pakistan.
Commercial Banking. Interim Report on Elimination of Interest. Operations of Islamic Banks. How Islamic Banks Operate.
Issues Faced by Islamic Banks. Malaysian Islamic Financial Landscape. Islamic Financial Intermediaries: Malaysia. Non-bank Islamic Financial Intermediaries: Malaysia. Genesis of Islamic Banking in Bangladesh. Role of Bangladesh Central Bank.
Legal and Practical Constraints: Bangladesh. Achievements, Impacts and Prospects: Bangladesh. Principles of Distribution of Profit to Mudarba Depositors. Current Approach to Interest-Free Financing. Participation Term Certificate.
Prospects for International Transactions Without Riba. Criteria for Appraisal from the Riba Angle. Islamic Position of Foreign Exchange Transactions. International Trade: Exports and Imports. Selected Riba-Safe Transaction Modes. Promotion of a Riba-Safe Business Environment. International Capital Movements. International Transactions at Government Level. Prohibition of Interest. Theoretical Basis of Islamic Banking.
An Early Experiment: Islamic Banking. Unique Financial Institution. Business Practices of Islamic Banks. Sources of Funds of Islamic Banks. Some Misconceptions of Islamic Banking. Geographical Spread of IFIs. Experience of Islamic Banks: Some Conclusions. Main Conclusions Nature of Riba. Indexation of Loans. Profit-Sharing Arrangement with Depositors. Islamic Instruments for Secondary Reserves.
Provident Fund Balances of the Employees. Foreign Branches of Pakistani Banks. Riba-Free Alternatives in Commercial Banking. Islamic Principles of Finance. Model of Riba-Free Bank. Shari'ah Advisory Board. Interest-Free Banking: A Proposal. Bank as Business Partner. Bank as Intermediary. Islamic banks as financial intermediaries. Handling Delinquency and Default in Islamic Banking. Tawarruq based credit card.
Modes of Financing: Islamic Banking. Modes of Financing - Introduction. Project Financing. House Financing. Carrying Business of Service. Sharing in the Gross Profit. Diminishing Musharakah in Trade. Musharakah — Dishonesty. Financing of the Working Capital. Musharakah - Business Secrecy. Risk of Loss in Musharakah. Running Musharakah Account. Securitisation of Musharakah. Unwillingness to Share Profits. Equity Screening in Islamic Finance.
Hawalah vs. Wakalah vs. Wakala Deposit. Hawalah-based financing. Salam and Istisna — Background. Salam - Explained. Salam - Mode of Financing. Parallel Salam - Explained. Istisna — Mode of Financing. Istisna — Time of Delivery. Istisna vs. Ijarah vs. Istisna as a mode of finance. Takaful Insurance - Explained. Takaful - Wakalah Model. Takaful — Mudarabah Model. Takaful — Hybrid Model. Takaful — Waqf Model. Historical Development: Tabung Haji. Current Profile: Tabung Haji.
Fund Mobilization: Tabung Haji. Saving Procedures: Tabung Haji. Zakat Payment: Tabung Haji. Distribution of Profit: Tabung Haji. Investments: Tabung Haji. Investment Principles: Tabung Haji. Investment History: Tabung Haji. Investment in Equities: Tabung Haji. Islamic Investment Funds. Investment in Shares — Criteria. Reserves in Islamic Equity Funds.
Islamic Equity Funds. Islamic Commodity Funds. Ijarah Investment Funds. Murabahah Investment Funds. Mixed Islamic Funds. Equity Funds - Guarantee of capital of the fund by the manager. Gearing in Investment Funds. Purification in Islamic Equity Fund.
Poverty: Some Points to Ponder. Parameters of Child Labour. Child Labour Statistics. Child Labour Income. Cost of Child Labour. Concerns Raised on Child Labour. Why Child Labour Exists. Misdirected Spendings. Tackling Child Labour. Preparation of an Employment Policy. Special Focus on Poverty Alleviation. Other Measures to Tackle Poverty. Dual Challenge. Case Of Pakistan: Critical Issues. Institutional Buildup at Grassroots. Key Role for Zakat Committees. Population - Evidence from History.
Quality of Life. The Issue of Scarce Resources. Factors Affecting Poverty in Pakistan. Poverty in Pakistan. Broad-Basing of Growth for Poverty Reduction. Inflation and Poverty Alleviation. The Existing Poverty Situation. Poverty in Pakistan Context. Poverty in an International Context. Murabaha is defined as a contract of sale in which a customer requests the Islamic bank to buy goods from a supplier and resell them to the customer at the original purchase price plus expenses and a negotiated profit, on agreed terms.
This financial structure is one of the most commonly used methods by Islamic banks and financial institutions. In fact, 70 per cent of Islamic transactions worldwide are conducted through the murabaha structure. According to Islamic law, the buying and selling of goods for a profit in the process of trade is permitted.
Furthermore, the following rules for murabaha need to be satisfied for the transaction to take place:. A popular form of murabaha is known as bai bithaman ajil BBA , which is a form of sale whereby the payment of the price is deferred. As mentioned, the Islamic finance system is asset-based as opposed to debt-based and interest riba is strictly forbidden.
Unlike conventional bonds, sukuks do not yield interest. Instead, they are based on non-interest security providing investors with the ownership of an underlying asset. They include musharaka and mudaraba-based sukuks. The Malaysian government is seen as a leader when it comes to Islamic finance globally. The UK has already tapped into the sukuk industry and will soon be the first Western country to allow banks to sell Islamic bonds.
It seems Australia will follow the lead. The sukuk bond is growing rapidly and is viewed by Australia as one of the most appealing Islamic products because of its versatile nature and ability to adapt into the mainstream financial system. This is why Senator Sherry recently identified the market for sukuks as a wholesale opportunity for the Australian financial sector. The Australian government has made several indications of its commitment to the Islamic banking and finance industry.
Furthermore, the Johnson Report and the Henry Tax Review both called for an inquiry into Australian taxation law to ensure that shariah -compliant products are on a level playing field with conventional products. From a taxation perspective this view will ensure a more level playing field. All these developments increase the importance of legal practitioners understanding the basic principles of shariah -compliant products and how they may be relevant to clients.
In my opinion, however, what has been missing from the IBF conversation is whether the IBF products that will be introduced to the Australian financial market are compliant with shariah law or whether they are simply mainstream products under the guise of shariah terminology.
Her thesis focuses on the shariah -compliant nature of Islamic finance products introduced in Australia. She is also the recipient of the National Australia Bank scholarship in Islamic banking Join Sign In. Remember me. Select from any of the filters or enter a search term.
Reset Search. Home About Contact Close About. Search for:. One wonders why the Rab Al Maal is prevented from managing the business affairs of Mudarabah despite the fact that it is the one who has provided the capital in full.
You see, the reason why in Shariah , the capital provider is not given the right to work with the Mudarib , or to get involved in acts relating to the Mudarabah operation, is because such a provision would curtail the freedom of the Mudarib , limit the investment scope and hinder the Mudarib in achieving the objective of the Mudarabah contract, which is to deploy the capital prudently, efficiently and profitably for the mutual benefit of both parties.
For further explanation, please review article 84 where I have explained it in detail. Returning to the differences between Musharakah and Mudarabah , in Mudarabah , the ownership of the entire assets developed through deploying the capital belongs to the Rab Al Maal , or in other words, the capital provider becomes the de-facto owner of all the Mudarabah assets. This is not the case in Musharakah where all partners jointly own the Musharakah assets, albeit in proportion to the ratio of investing the capital.
Next, if there is an increase in the value of the Mudarabah fixed assets, it will solely belong to the Rab Al Maal and the Mudarib will not be able to share it. Simply because another name for Mudarabah is partnership in the operating profit. As such, the Mudarib is only eligible to share the outcome which is a direct consequence of its effort by utilizing its expertise.
Nevertheless, it is important to differentiate here that if there is an increase in the market value of the trading inventory and, as a result, the Mudarabah produces a higher profit, the Mudarib shall be entitled to share such earnings.
On the contrary, if there is an increase in the value of fixed assets owned by the Musharakah entity, such benefit shall be shared by all partners in the same ratio as they have funded the capital.
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