muamalah fiqih
- Muslim Lifestyle
The Concept of Hope in Islam: Is It Important?
In Islamic teachings, raja’ or the concept of “hope” plays an integral role in the relationship between a servant and Allah Ta’ala. Hope in Islam is not limited to seeking mercy or forgiveness; it also encompasses a deep conviction that Allah will always support His servants who place their trust in Him. However, raja’ cannot stand alone; it must be…
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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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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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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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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 » - Islamic Economics
Building Your Emergency Fund: A Step-by-Step Guide
Emergency funds are savings that are prepared to deal with emergencies in the future. Emergencies can be unexpected events such as illness, accidents, or job loss. Building an emergency fund is an important part of financial management. Not preparing an emergency fund properly can put you at risk of getting into personal debt. This article will discuss the benefits of…
Read More » - Islamic Finance
Islamic New Year and Its Financial Wisdom
The Islamic New Year, also known as the Hijri New Year, marks the beginning of the Hijri calendar based on the migration (Hijrah) of Prophet Muhammad (Shallallahu Alaihi Wa Sallam) from Mecca to Medina. For Muslims, this moment is not merely a change of the year but a symbol of new beginnings and spiritual reflection. Beyond its spiritual significance, the…
Read More » - Islamic Economics
Musyarakah Contracts and Capital Guarantee: What You Need to Know
One of the Shariah-compliant cooperative contracts is the Musyarakah contract. This contract involves joint participation in business activities, including sharing profits and bearing losses. However, there are cases where one of the shariks, especially a large investor, asks for a capital guarantee from the business manager when investing in a business. Is this permissible in Shariah? The basic provisions regarding…
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