islamic economics
- Business
Concept of Wakaf Sukuk in Islamic Economics
Waqf is a crucial pillar in the Islamic economic system that serves as a social instrument for wealth and welfare distribution. Traditionally, waqf has been used in Muslim societies to support various social projects such as building mosques, schools, and hospitals. However, as times have progressed, the concept of waqf can now be applied in various forms, one of which…
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Does Mudharabah fit All Business Funding?
In the world of Islamic finance, Mudharabah is known as a contract where one party provides capital, and the other party offers expertise and manages the business. Profits generated are shared between the two parties based on an agreed ratio, while losses are borne entirely by the capital provider. While Mudharabah has its merits, especially in promoting ethical and fair…
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Maximize Returns with Compound Growth
Islamic finance has gained considerable momentum over the past few decades, driven by the increasing awareness and demand for ethical and Sharia-compliant financial solutions. At its core, Islamic finance is based on the principles of equity, fairness, and avoidance of interest (riba). One of the most effective strategies for growing wealth in Islamic finance is through the application of compound…
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The Value of Humility in Crowdfunding
Crowdfunding is a concept that has gained popularity in the digital era, allowing individuals or groups to raise funds from many people to support their projects or initiatives. Crowdfunding is not just about money; it is also about building a community, increasing visibility, and, most importantly, demonstrating the value of humility. This article will explore how crowdfunding reflects humility and…
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7 Principles of Transparency for Islamic Family Financial Planning
Managing family finances is a significant responsibility that requires good planning and execution. In this context, transparency is a key to ensuring that all family members can actively participate and understand their financial situation. Here are some important aspects of designing family finances with an emphasis on transparency. 1. The Importance of Transparency in Family Financial Management Transparency in family…
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Deferred Payment Gold Sales According to DSN-MUI and AAOIFI Rulings
Gold trading has been a subject of debate among Islamic scholars due to its association with strict Shariah principles on riba (usury) and gharar (uncertainty). In this context, the National Sharia Council of the Indonesian Ulama Council (DSN-MUI) and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) have issued guidelines and fatwas on non-cash gold trading. In this…
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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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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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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…
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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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