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ECTIVES OF WORKSHOP To give an overview of ijara and musharaka principles in business and financial transactions. To elaborate in details the operational aspects of ijara and musharaka principles in financing. To examine the potential risks for every principle used by the financier. To examine the suitability of each principle for a particular financing product. DAY ONE Overview of Ijara in in Financial Transactions General and specific concept of ijara PROGRAMME LEADER Dato Prof. Dr.

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Since Islamic law (Sharia) does not permit profiting from interest in lending, musharakah allows for the financier of a project or company to achieve a return in the form of a portion of the actual profits ing to a predetermined ratio.

Ijara, where the lender buys the property and leases it to you, transferring ownership to you once the loan term ends. Musharaka, where you and the sharia-compliant lender buy the property together and you gradually buy them out of their share. The more shares you own the less you have to pay back.

Ijara, where the lender buys the property and leases it to you, transferring ownership to you once the loan term ends. Musharaka, where you and the sharia-compliant lender buy the property together and you gradually buy them out of their share. The more shares you own the less you have to pay back.

The simplest form of ijara involves the bank as the owner of an asset and leasing it out to its customer against predetermined rentals for an agreed period of time. The identity of the bank is same as that of the vendor of the asset.

Islamic banks use ijarah to enable their customers to use durable goods and equipment such as ships, aircraft, heavy machines, plants and vehicles. The customers have a luxury to use these durable goods without having to buy them. Usually, the contract of ijarah is for a time long enough to cover the life of the asset.

Differences ConceptMudarabahMusharakah Investment Comes solely from the "financier" (rabb-ul-maal) not the "working partner" Comes from all partners Ownership All goods purchased during the venture belong to the "financier" not the "working partner" Owned jointly by all partners in proportion of their investment2 more rows

Types of Musharakah Shirkah al-'inan: a partnership in which the partner is simply the agent and does not serve as guarantors of other partners. Shirkah al-mufawadah: an equal, unlimited, and unrestricted partnership in which all partners put in the same sum, share the same profit, and have the same rights.

Ijarah “اجارۃ” is an Arabic term that means “lease”, “rent” or “hire”. In the context of Islamic banking and finance, Ijarah refers to a contract where one party (lessor) leases a tangible asset or property to another party (lessee) for an agreed period of time and at an agreed rental price.

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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232