Muamalah Fiqh

  • How Tabdzir Can Hinder Investment 

    How Tabdzir Can Hinder Investment 

    Tabdzir, or wastefulness, is one behaviour that is often overlooked in our daily lives. Tabdzir refers not only to material waste but also to time, energy, and other resources. In an economic and financial context, tabdzir can have serious consequences that hinder investment growth, both at the individual and national levels. This article will discuss how tabdzir can hinder investment…

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  • How to Discipline Yourself to Consistently Invest 

    How to Discipline Yourself to Consistently Invest 

    Investing is one of the most effective ways to achieve long-term financial goals, such as buying a house, preparing for your children’s education, or planning for retirement. However, many people struggle to consistently invest due to various reasons, ranging from a lack of knowledge to the temptation to use investment funds for other purposes. Disciplining yourself to regularly invest requires…

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  • Profit Sharing System Based on DSN MUI: Accrual Basis and Cash Basis 

    Profit Sharing System Based on DSN MUI: Accrual Basis and Cash Basis 

    In recent decades, Islamic financial institutions have grown rapidly in Indonesia. This financial system offers solutions that align with Islamic Sharia principles, one of which is the profit-sharing system. DSN MUI Fatwa No. 14 of 2000 provides guidelines on the profit distribution system, including the division of profits based on accrual basis and cash basis.  Definitions of Accrual Basis and…

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  • Faith, Knowledge, and Deeds: The Three Foundations of Act in Islam

    Faith, Knowledge, and Deeds: The Three Foundations of Act in Islam

    Faith, knowledge, and deeds are three fundamental aspects of actions in Islam. These elements form a complementary foundation that guides a Muslim’s life. Faith is the belief that underpins all actions, knowledge illuminates the path of life, and deeds are the tangible actions reflecting one’s faith and knowledge. By understanding and practicing these three elements, a Muslim can achieve a…

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  • Profits Distribution in Mudharabah & Musyarakah: Permissible with High Cash Reserves?

    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…

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  • How Do You Mitigate Investment Risk?

    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: …

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  • Amanah as a Professional Ethic in Islam

    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…

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  • How Does Bad Cashflow Influence Profit Sharing in Mudharabah? 

    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…

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  • The Future of Crowdfunding with Artificial Intelligence (AI) 

    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…

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  • How to Analyse Loss Sharing in a Musyarakah Contract from the Income Statement

    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…

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