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Modern Applications of Qard

The contract of qard (interest-free loan) may be put into practical use in many shari'ah-compliant ways, key among which are...

Forms of Ijarah Contract

In Islamic finance parlance, ijarah means leasing of a property against a preset amount of money (consideration or in Arabic...

Difference Between Conventional Audit and Islamic Audit

Audit is a form of assurance that involves an appraisal and examination of the financial statements of an entity with...

Legality/ Permissibility of Murabaha

Murabaha is a type of trust sale (buyu al-amana) whereby acquisition of assets is financed on short or relatively long...

Uses of Murabaha

By definition, murabaha is a type of sale (ba’i or bay’) in which the seller candidly reveals to the buyer...

Categories of Hawalah

In general, hawalah (الحوالة) is an agreement to transfer or assign something to someone else. The subject matter (mahall- محل)...

Risks Involved In Musharakah Contract

A financial institution participating in musharakah contracts (whether permanent musharakah or diminishing musharakah) is typically exposed to four different types...

Termination of Murabaha

Murabaha is a type of trust-based sale (buyu al-amana) whereby acquisition of assets is financed on short or relatively long...

Determination of Zakah Base

The zakah base (receptacle; وعاء الزكاة) is typically calculated at a zakah rate which ranges from 2.5% to 20% depending...

Determination of Murabaha Mark-up

Murabaha (also spelled murabahah) is a shari’a compatible mode of debt financing which involves the sale of a commodity mostly...