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Liquidation of a Mudaraba Contract

Mudaraba is a partnership in profit (ribh) in which one party (rab al-mal) provides funds, while the other (mudarib) contributes...

Categories of Musharaka

Sharika (partnership or corporate entity) or musharaka (the process of forming sharika) is the commingling of funds and/ or resources...

Categories of Hiwalah

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

Ba’i al-Tawarruq versus Ba’i al-Inah

Tawarruq and inah are two different derivations from murabaha. Tawarruq is sometimes called commodity murabaha as it involves having access...

Ba’i al-Tawarruq vs. Ba’i al-Inah

Tawarruq and inah are two different derivations from murabaha. Tawarruq is sometimes called commodity murabaha as it involves having access...

Calculation of Murabaha Acquisition Cost

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

Calculation of Cost in Murabaha

Murabaha (مرابحة) is the sale of goods at cost plus an agreed profit mark-up (ribh). More specifically, the price quoted...

Subject Matter of Murabaha

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

Shares as Subject-Matter of Murabaha

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

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...