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 …
Maya Marissa Malek on ‘Socially Responsible Investments (SRI)’ Read More »
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 …
Idris Mojaddidi on “Aqd or Contract in Islamic Finance” Read More »
Istisna’ is an Arabic word which means ‘request to construct’ and technically it refers to an agreement to sell or to buy a non-existent asset that is going to be manufactured in the future with the same specifications given by the ultimate purchaser and is to be delivered on a specified future date with a …
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 …
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”. …
Wan Hafizi Wan Halim on “Why Conventional Insurance is not compatible in Islam” Read More »
Can a Bank be Halal and Islamic at the same time? Well to me it can because Banking activities by itself should fall under the category of Mu’amalah. And Mu’amalah means the wordly matters, or the wordly activities of the human being from the Islamic point of view. So the original rulings of the Mu’amalah …
Conventional insurance is not compatible in Islam, because it involves with some of the elements which are clearly prohibited from the Shariah point of view. However, the concept of risk management by itself is a very valid concept in Islam. Because Muslims are in fact encouraged to mitigate as much as possible all types of …
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 …
Dr. Mohd Daud Bakar on “Shariah Scholars and Shariah Boards” Read More »
Amanie Advisors is a Shariah Advisory firm which is operating at the international level. It was setup in the city of Kuala Lumpur in 2005 and from there on we moved to Dubai and we are operating in other cities of the world as well. Amanie means in Arabic – dreams; it is our dream …
Shariah Audit is a way of assessing or ascertaining whether the practice of the financial institutions conforms to the relevant Shariah standards and guideline. The standards and guideline as referred to here is the standards as issued by the Shariah Supervisory Board, the Shariah guideline of the institution, and the relevant policies and procedures of …