Extensive Literature review about Islamic Finance.
The different elements of Islamic Finance- Murabaha, Musharakah, Ijara, and Islamic Sukuk.
Academic and practitioner.
Sample Solution
Islamic finance, an alternative to conventional banking, is built on principles derived from Islamic law and has become increasingly popular in many countries around the world. Unlike its conventional counterparts, Islamic finance seeks to promote ethical behaviour and economic justice through a unique set of rules and principles such as risk-sharing, equity financing, asset-based transactions (such as Murabaha), profit sharing (Musharakah), leasing (Ijara) or Islamic bonds/sukuk.
Sample Solution
Islamic finance, an alternative to conventional banking, is built on principles derived from Islamic law and has become increasingly popular in many countries around the world. Unlike its conventional counterparts, Islamic finance seeks to promote ethical behaviour and economic justice through a unique set of rules and principles such as risk-sharing, equity financing, asset-based transactions (such as Murabaha), profit sharing (Musharakah), leasing (Ijara) or Islamic bonds/sukuk.
Murabaha is one of the most common structures used in Islamic finance which involves two parties where one agrees to purchase goods at their own cost with a mark up fee that has been agreed upon by both parties; this allows greater flexibility compared to other forms of financing since no interest rate needs to be determined upfront. Musharakah on the other hand is a form of partnership where profits or losses are shared between two or more individuals according to predetermined ratios while Ijara refers to leasing agreements whereby an owner leases out property for an agreed period time in exchange for rental payments.
Lastly there’s Sukuk – also referred to as “Sharia-compliant bonds” – which are similar to traditional bonds but based on asset-backed transactions rather than debt; this means that investors receive returns based on underlying performance instead of fixed ones like those found with regular securities.
The literature surrounding these topics have been growing over the years not only among academics but practitioners too; several research papers can now be found analyzing various aspects related specifically towards Murabaha, Musharakah Ijara, and Sukuk proposing different approaches depending on context etc. This provides numerous opportunities for those interested in furthering their knowledge about these concepts either by reading up existing material already available online or exploring new ways they could potentially be applied within modern day settings too!
