islamic financing
- Business
Does Islamic Financing Have to Be Cheap?
Following Shariah rules to the letter, Islamic finance is a substitute for traditional financial systems. Understanding that Shariah compliance puts adherence to Islamic laws ahead of cost considerations is crucial to answering the frequently asked question: Should Islamic financing be less expensive than conventional methods? Shariah’s core principle is compliance over cost Shariah places a strong emphasis on conducting financial…
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Massive Potentials of Istishna’ Contracts in Islamic Financing
The istishna’ contract is one of the Islamic financing instruments based on a sale and purchase agreement where the product or item being sold does not yet exist at the time of the contract and must be produced according to the buyer’s specifications. This financing solution is particularly useful for sectors such as construction, manufacturing, and projects that require custom-made…
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The Opportunities of Salam Contract in Islamic Financing
The salam contract is a form of sale contract in Islamic law that provides flexibility and significant potential in Islamic financing. In a salam contract, the payment is made upfront, while the goods or commodities are delivered at a later date. This structure holds particular relevance in sectors like agriculture and manufacturing that require initial capital for production. The potential…
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