islamic finance
- Business
Part-2: Islamic Private Equity: What Contracts Are Used
In the world of Islamic finance, private equity plays an important role as an investment instrument that offers potential profits through equity participation in companies that have not gone public. Islamic private equity operates under the principles of sharia in every transaction, including in the selection of contracts used. In the first part of the discussion, we discussed the contracts…
Read More » - Business
Islamic Private Equity: What Contracts Are Used?
Islamic private equity operates under the principles of sharia in every transaction, including in the selection of the contracts used. These contracts not only ensure compliance with Islamic law and fulfil different financing needs, but also support the principles of fairness and profit sharing in the transaction. In Islamic finance, private equity plays an important role as an investment instrument that…
Read More » - Business
What are the differences between Securities Crowdfunding (SCF) and Stock Exchanges?
In Indonesia’s capital markets, there are two institutions that offer investment services: Securities Crowdfunding (SCF) and the Stock Exchange. Both play an important role in connecting securities issuers with investors. Let’s explore the differences between both. 1. Definition and Mechanism Securities Crowdfunding (SCF) Securities Crowdfunding (SCF) is an alternative financing scheme that allows issuers to sell their securities in the…
Read More » - Business
How Islamic Securities Crowdfunding (SCF) Contributes to Environmental, Social, and Governance (ESG)
Islamic Securities Crowdfunding (SCF) is an innovative funding model that allows individuals and companies to invest in business projects through the offering of shares or bonds in accordance with Shariah principles. These principles prohibit riba, gharar, and haram business activities, creating an ethical and sustainable investment system. In addition to promoting business ethics, Islamic SCF also has the potential to…
Read More » - Business
How Mudharabah Akad Works in Sukuk Issuance
The Islamic capital market is one of the innovations in the field of Islamic finance that presents Islamic contracts and values in capital practices and transactions in the capital market. One of the innovations in securities issuance in the Islamic capital market is sukuk. Sukuk itself is defined based on the fatwa of the National Sharia Council of the Indonesian…
Read More » - Islamic Economics
Principles of Generosity in Trade in the Hadith of Prophet Muhammad ﷺ
Trade is an essential part of human life. Since the dawn of civilisation, humans have engaged in trade as a way to meet their needs, be it food, clothing, housing, or other goods. Trade also enables the exchange of ideas, cultures, and innovations between different societies. In the Islamic context, trade has a very important place. The Prophet Muhammad ﷺ…
Read More » - Islamic Finance
Why Should We Use Sharia Contract in Muamalah?
With a long history that dates back to Prophet Muhammad’s involvement in commerce at a young age, his example continues to serve as a model for ethical and successful business practices guided by Islamic principles. The concept of entrepreneurship is not a new concept, it has existed since the time of the Prophet Muhammad. Rasulullah himself is a very good…
Read More » - Muamalah Fiqh
Profit Sharing in Mudarabah and Musyarakah, Is It Allowed?
One of the things that is usually required by one of the parties in Mudharabah and Musyarakah is profit sharing with a certain amount, an example is as follows: Example: “I will deposit my capital of 30 million with the condition that I get a fixed profit sharing of 10% per month (3 million per month)” “I as an investor…
Read More » - Muamalah Fiqh
Musyarakah With Tiered Profit Sharing, Is It Allowed?
One of the possible profit-sharing schemes proposed in a Musyarakah contract is a tiered profit-sharing scheme. This is done by providing different profit sharing ratios based on a certain percentage of profit realised from capital or sales. An example is as follows: Also Read:The Meaning of Eid al-Fitr in Making Financial Hijrah Implementation of The Zakat System in The Modern EraKenapa…
Read More » - Muamalah Fiqh
Mudharabah Is The Spirit of Mutual Assistance in Business Financing. How Come?
In Islamic economics, the values of mutual assistance and cooperation are at the core of every financial transaction. One form of cooperation that is upheld in business financing is the mudharabah contract. This contract is not just a business agreement, but also reflects the spirit of mutual support between the capital owner (shahibul maal) and the business manager (mudharib). With…
Read More »