What do you understand by Islamic finance?
Islamic finance is a way to manage money that keeps within the moral principles of Islam . It covers things like saving, investing, and borrowing to buy a home. The moral principles many Muslims live their lives by are sometimes known as the ‘Shari’ah’.
Why do we need to understand Islamic finance?
Islamic finance provides financial services for all segments of the population and can help increase financial inclusion. Islamic finance also serves as an alternative source for funding infrastructure and as a means of diversifying funding and risk exposures of investors.
How many types of financial contracts are there in Islam?
Essentially, there are two types of Islamic financial contracts, namely commutative and non-commutative.
What is the best book for understanding Islamic finance?
Ayub, Muhammad, 1951– Understanding Islamic finance/Muhammad Ayub. p. cm. — (Wiley finance series) Includes bibliographical references and index. ISBN 978-0-470-03069-1 (cloth:alk. paper) 1. Finance—Islamic countries. 2. Finance—Religious aspects—Islam. 3. Economics—Religious aspects—Islam. I. Title. HG3368.A6A98 2007 332.0917 67—dc22 2007035537
What is Islamic finance and how is it different from conventional finance?
Islamic finance is a term that reflects financial business that is not contradictory to the principles of the Shari’ah. Conventional finance, particularly conventional banking business, relies on taking deposits from and providing loans to the public. Therefore, the banker-customer relationship is always a debtor-creditor relationship.
What is an Islamic financial institution?
Islamic finance financial institutions, products and services designed to comply with principles of Shari’ah (Islamic law) is one of the most rapidly growing segments of the global finance industry.…
What are the traditions of Finance in Islam?
Briefly these traditions are: 1. When the holy Prophet (pbuh) expelled Bani al Nadhir from Madina, he was told that debts were owed to some of them that had not become due; the Prophet said, “Dha‘awoo wa Ta‘ajjloo” (remit a part of the receivable and take that earlier). 164 Understanding Islamic Finance