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Characteristics of Murabaha

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

Rescheduling of Payment in Murabaha

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

Types of Ghaban

A fraudulent practice by which one party to a commutative contract (ba’i, ijarah, salam, etc.) attempts to deceive the other...

Difference Between Zakah and Sadaqah

Zakah (زكاة) is Arabic for obligatory charity (the third pillar of Islam). It constitutes a portion of wealth prescribed by...

Difference Between Constructive Possession and Physical Possession

Constructive possession (qabd hukmi) is the process or act or state of a party/ person having the legal rights over...

Total Costs of Murabaha

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

Difference Between Hibah and Sadaqah

Hibah (هبة) is a gift (an amount of wealth) given gratis (for no consideration) for the sake of the recipient....

Difference Between Murabaha and Tawarruq

Murabaha is a mode of financing based on the sale of a commodity for a deferred price. Put another way,...

Difference Between Mudaraba and Musharaka

Mudaraba is a partnership in profit (and loss) in which one partner provides capital (rab al-mal) and the other provides...

Conventional Options Versus Islamic Options

Options (conventional options) are derivative contracts that give the holder the right, without the obligation, to trade (buy or sell)...