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Differences Between al-Adl and al-Ihsan

Adl or al-adl is Arabic (العدل) for justice or fairness. In general, the term “al-adl” relates to the concepts of...

Difference Between Options and Swaptions

An option is a derivative contract giving the holder (buyer) the right, without the obligation, to trade (buy or sell)...

Characteristics of Zakah

Zakah (زكاة) is Arabic for obligatory charity (the third pillar of Islam). It constitutes a portion of wealth prescribed by...

Definition of Mudharabah

Mudharabah (مضاربة) is a type of partnership (sharakah or musharakah) for profit (ribh) which is structured so that one partner...

Characteristics of Murabahah

Murabaha (also spelled murabahah) is a shari’a compatible mode of debt financing which involves the sale of a commodity mostly...

Shari’a Rules on Agency In Murabaha

Murabaha (مرابحة)- cost-plus sale- is one of the most common Islamic contracts of trading. It belongs in the broader class...

Shari’a Basis for Permissibility of Murabaha

Murabaha is a type of trust-based sale (buyu al-amana) whereby acquisition of assets is financed on short or relatively long...

Classifications of Sharikah

Sharikah (partnership or corporate entity) or musharakah (the process of forming sharikah) is the commingling of funds and/or resources from...

Barrier Option Versus Limit Option

Both barrier options and limit options denote the same. By definition, it is an exotic option whose payoff depends on...

Invalid Assets for Murabaha Transactions

Murabaha (also spelled murabahah) is a shari’a compatible mode of debt financing which involves the sale of a commodity mostly...