Business
-
Profits Distribution in Mudharabah & Musyarakah: Permissible with High Cash Reserves?
In the business world, especially in Islamic partnership schemes like mudharabah and musyarakah, profit distribution is a crucial aspect to consider. The question is, is it permissible to distribute profits if the company has high cash reserves but is experiencing losses? This article will discuss the important aspects of this question, from understanding mudharabah and musyarakah to the implications of…
Read More » -
The Story of Abu Bakr Radhiyallahu Anhu’s Generosity in Giving Away All His Possessions
Abu Bakr (radhiyallahu anhu) was the most honoured and respected companion of the Prophet Muhammad ﷺ in the history of Islam. He was known not only for his strong faith, but also for his extraordinary generosity. One of the most inspiring stories from his life is when he gave away all his wealth in the cause of Allah ﷻ. This…
Read More » -
Upgrade Skills as a Sign of a Good Muslim Professional
In an increasingly competitive work environment, upgrading skills is one of the keys to achieving success. For a Muslim professional, this is not just about earning a livelihood but also about fulfilling responsibilities as a trustworthy and competent individual. Islam encourages its followers to continually learn and develop themselves, so they can make the best contribution in every aspect of…
Read More » -
How Do You Mitigate Investment Risk?
Investment is an important step in achieving long-term financial success. Risks in investment can come from various factors, such as market fluctuations, regulatory changes, or unexpected events, such as the global economic crisis. Although we cannot completely eliminate risk in investment, we can manage and minimise it with the right strategy. Here are some ways to effectively mitigate investment risk: …
Read More » -
Amanah as a Professional Ethic in Islam
In Islam, ethics play a vital role in guiding a Muslim’s behavior in both personal and professional aspects of life. One of the core ethical values is Amanah, which signifies trustworthiness and honesty. This principle is not only a religious obligation but also a cornerstone of professional ethics in Islam. The Concept of Amanah in Islam Amanah, which comes from…
Read More » -
How Does Bad Cashflow Influence Profit Sharing in Mudharabah?
Mudharabah contracts represent a crucial aspect of Islamic finance, providing a partnership where one party supplies the capital and the other provides expertise and management. Howver, According to pre-determined ratios, the venture’s profits are divided, but the capital provider is responsible for losses. Understanding how a company’s cash flow influences profit sharing in Mudharabah contracts is essential for both parties…
Read More » -
How to Analyse Profits Shared in a Mudharabah Contract from the Income Statement
The mudharabah contract is a highly regarded form of business cooperation in Islamic economics due to its fairness. In this contract, one party provides the capital (shahibul maal), and the other party provides the expertise or labor (mudharib). The goal of this contract is to achieve profits that will be shared according to the initial agreement. However, to ensure fairness…
Read More » -
The Future of Crowdfunding with Artificial Intelligence (AI)
Crowdfunding has become one of the most popular ways to raise funds for various projects, ranging from small businesses to charity projects. Crowdfunding itself is the choice of many parties to raise funds for both social and commercial projects because of its simple and easy process. While in the development of technology, the world is entering a phase where the…
Read More » -
How to Analyse Loss Sharing in a Musyarakah Contract from the Income Statement
The musyarakah contract is one of the important instruments in Islamic finance, allowing two or more parties to share capital and risks in a business venture. This article aims to explain how to view and understand how losses are shared in a musyarakah contract through the income statement. We will also include an example of an income statement and detailed…
Read More » -
Ensuring Halal Investments: Indonesia’s Sharia Stock Screening
The Islamic capital market in Indonesia has experienced rapid growth in recent years. This expansion is driven by increasing public awareness of the importance of investing in accordance with Islamic Sharia principles. Shariah-compliant equity investment has become an attractive option for Muslim investors, offering the potential for halal profits that align with their religious values. However, to avoid riba (usury),…
Read More »