Business
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Be Careful! These 3 Defects Make The Mudarabah Contract Become Riba
Who isn’t tempted by the promise of immense wealth in this world and paradise in the afterlife? This is surely the dream of all of us. So, it’s no surprise that enthusiasm for financial migration and ridding our wealth of usury is currently at an all-time high. We want to increase our assets, but through paths that please Allah ﷻ.…
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Ethics of Profit-Sharing Negotiations in Islam
In Islam, profit sharing negotiations are never solely focused on results. It has to do with reaching a consensus with full agreement from each party. Our Ethics, character and intention are all reflected in the process itself, in the way we conduct ourself in the negotiation, in the way we value our business partner and their effort in profit percentage,…
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Mudharabah in Islamic Bank
Mudharabah is a key concept in the Islamic business and economic system. This contract serves as a foundation for financing and fundraising instruments in the Islamic financial industry. Based on profit-sharing based on business performance, the Mudharabah contract is considered fairer and more equitable than conventional interest-based lending systems, which burden business managers in the event of adverse events. This…
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How to Attract Investors in Crowdfunding
Crowdfunding has become a popular alternative method of raising capital for projects and businesses. In recent years, Islamic Securities Crowdfunding (SCF) has emerged as an attractive option for entrepreneurs and investors who prioritise sharia principles in doing business. However, attracting investors’ attention to Islamic SCF requires the right strategy and a deep understanding of what their concerns are. This article…
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The History of Crowdfunding in Modern Era
Crowdfunding is the practice of raising funds for various types of endeavours, such as product ideas, businesses, or activities. Although it sounds modern, this practice has actually been around for centuries. The history of crowdfunding can be traced back to the past, when individuals or groups sought financial support from the community to realise their projects or ideas. This article…
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Why Does Investment in Sharia Crowdfunding Have More Barakah?
In the world of investment, finding an instrument that is not only profitable but also blessed is the dream of every Muslim. Sharia crowdfunding comes as an investment solution that fulfils sharia principles, avoids usury, gharar (uncertainty), maysir (speculation), and does not invest in the haram sector. With the development of financial technology, everyone can now participate in blessed investments…
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Differences Between Sharia Securities Crowdfunding and Sharia Peer-to-Peer Lending
In recent years, the development of financial technology (fintech) in Indonesia has significantly impacted the access to capital for Micro, Small, and Medium Enterprises (MSMEs). Two popular fintech innovations in the context of sharia financing are Sharia Securities Crowdfunding (SCF) and Sharia Peer-to-Peer (P2P) Lending. Both offer different solutions for MSMEs to obtain funds in accordance with sharia principles. Definitions…
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Khadijah Radhiyallahu Anha: The Perfect Example of a Wife
In his journey of life and da’wah, The Prophet Muhammad ﷺ was surrounded by companions and friends who were always ready to strengthen him, help him, and even sacrifice themselves for him. The Prophet’s closest friends such as Abu Bakr, Umar bin Al-Khattab, Uthman bin Affan, Ali bin Abi Talib and other friends, Radhiyallahu anhum were the pillars who supported…
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How to View Loss Sharing in a Mudharabah Contract from the Income Statement
Mudharabah is a form of business cooperation in Islamic finance where one party provides capital (shahibul maal) and the other provides expertise and labor (mudharib). It is important for both parties to understand how losses are shared in this contract, especially through the analysis of the income statement. A good understanding of loss distribution helps maintain trust and harmonious cooperation…
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A Profitable Business, But Declining Faith? How Come?
Sometimes we wonder why some people’s businesses are so successful, yet their faces still look anxious. They change cars every year, but they never sleep well. Money flows freely, but their hearts are dry. In today’s business world, “steady profits” is often the benchmark for success. However, there’s another aspect that often slips through our fingers without us realizing it:…
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