WHAT IS RIBA? Riba is an Arabic term which means usury or oppression, or most commonly referred to as “interest” in the common language. In the modern business activity, riba or interest is mainly or predominantly used in the business model of banking institutions. Let say you wish to purchase your house worth 1 million …
Islamic Banking is a way of banking which conforms to the rules and principles of Shariah. By saying this, it means that Islamic Banking avoids the express prohibition as applicable under the main sources of Islam, which is the Quran and Hadith. What is the main difference between the conventional banking and Islamic banking? Conventional …
WHY IS INTEREST HARAM? The important question whenever we speak about Islamic finance is, why is the element of interest, as applicable in the conventional banking model, prohibited, or why is it haram? Interest is haram because of various reasons, however I’ll just summarize it or I’ll just focus on 2 main points. Taking advantage …
It has been widely publicized and discussed in many platforms, as well as in the media, that Shariah scholars are open and vulnerable to window-shopping of fatwa. In brief, window shopping of fatwa means that scholars are open to give the fatwa based on the best offer of the client. On the other side of …
Dr. Mohd Daud Bakar on the so-called “Window Shopping of Fatwa” Read More »
You have referred to Shariah Advisory as the backbone of the industry. Could you elaborate further on this statement? Shariah advisory is the backbone of Islamic finance – because simply, the soul of Islamic Finance is Shariah. And who best knows about Shariah other than the Shariah scholars. It is not enough for Islamic finance …
Is there such a thing called halal loan? Yes, there is. A halal loan simply means a loan without interest. If I lend you a dollar today, I cannot charge anything beyond that figure for the repayment because that would simply be riba’, and riba’ is strongly prohibited in Islam. Everyone knows that. So here’s …
Alhamdulillah. I’m very happy to make this statement. I’m actually the chairman of the Shariah board of Amanie, and I am in this business of advising Islamic banks for the last two decades, maybe more. It is so thrilling to see Islamic banking now becoming a global business, huge assets, tremendous rate of growth and …
I want to talk about one of the best advisory company in Islamic financial industry. I want to talk about Amanie Advisory. I’ve been with this company since 2007, 2008 and from my previous experience since 1988 in this field, during studying, searching, as well as advising many companies, banks, funds, takaful companies, I can …
Islamic investment is a broad term which refers generally to any kind of investment done in accordance with the Shariah principles, or Islamic law. Now, investment is made possible by having surplus funds, whether it’s an individual who has cash stored under their mattress or an organization which has built up retained profits over the …
Islamic mortgage Home mortgage is a very common terminology describing the way to own and purchase your dream property. How does it work, conventionally? You go, simply go to a bank, you don’t have sufficient funds to purchase your dream property, let’s say it’s worth 1 million USD. You go to the bank, you request …