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 …
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 …