Banking

The commercial and investment banks had operated in their independent domains for a good part of the twentieth century. The former catered to individuals and businesses […]

Islamic banks use many other accessory contracts including Wakalah, Jua’lah, Tawarruq, Kafalah, Rahn, Hawalah, Istijrar, Amanah, Wadiah, and Hibah. Ju’alah is a reward or payment for […]

The instrument of Ijarah brings Shari’ah compliance to the traditional lease contracts of commercial institutions. Elements of Riba or gharar present in many lease contracts make […]

Salam is a cash sales agreement where the seller promises to provide the buyer with an agreed product at a future date in exchange for an […]

  Both traditional and Islamic banks have to deal with short term cash issues. They either have too much cash which needs to be invested to […]

Murabaha is an instrument where the bank acquires a product upon request from the customer and sells it at an agreed upon profit. This is an […]

Mudarabah and Musharakah are the preferred methods of interest-free financing. However, they are not well suited for modern day acquisition of property and other tangible assets. […]

Qard is any kind of loan given by one party to the other and which is due back to the lender within an agreed upon contract. […]

Indexation is a part of financial contract where the amount due is adjusted for the change in value of currency based on a defined index. In […]