Islamic Finance

Maya Marissa Malek on ‘Socially Responsible Investments (SRI)’

Socially Responsible Investment, or SRI; Social Impact Bond, or SIB; Green Bond, Green Financing, are the buzz words in the conventional space lately. We don’t hear that much about Green Sukuk, or SRI Sukuk, or Social Impact Sukuk in the Islamic Finance space, though. The attributes of SRI, SIB, vis-à-vis its counterparts in the Islamic …

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Idris Mojaddidi on “Aqd or Contract in Islamic Finance”

Contract or aqd is Islamic commercial law means to tie or to bind because the contract is binding between the two parties, the offerer and offeree. Technically, contract is a legal agreement between two or more persons that creates rights and liabilities. Contracts are the foundation upon which the Islamic finance product rest. Contract in …

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Idris Mojaddidi on “Shariah Supervisory Board”

According to the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), Shariah Supervisory Board is an independent legal body of scholars who are specialised in Fiqh ul Muamalat, Islamic jurisprudence law and Shariah Supervisory Board shall consist of at least 3 members appointed by the shareholders in their General Annual Meeting upon recommendation by …

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Wan Hafizi Wan Halim on “Why Conventional Insurance is not compatible in Islam”

Let us start by understanding some of the “main” elements which are prohibited from the Shariah point of view. Let us discuss here just three of them which are riba, gharar and maysir. What is riba? Riba occurs in 2 different scenarios. In trading, which is “riba buyu’”, and in lending, which is “riba duyun”.  …

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Dr. Mohd Daud Bakar on “Shariah Scholars and Shariah Boards”

Some stakeholders of the Islamic Finance industry somehow believe that a Shariah scholar cannot sit on more than one Shariah board. They have to confine themselves to only one bank or one company or one product. And the argument is based on the assumption, perhaps an assumption that a Shariah scholar should observe the potential …

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