Murabahah

Assalamu ‘Alaikum

Murabahah

This is another type of sale, also known as cost plus sale. You buy something then you sell it to some else at cost to you plus a profit margin. It is a rule of Murabahah that you must tell the buyer your cost and profit margin. That’s Islamic transparency for you.

Of Islamic Financing and Abandoned Housing

Assalamu ‘Alaikum,

Of Islamic Financing and Abandoned Housing

You took your little daughter and young wife to the housing site. Nothing there but cranes and a big hole in the ground. But you get all excited; this is the place you’d imagine would be the start of your life as a family, building up happy memories amid much love and fondness. That was 3 years ago. You are now back at the scene. It is still a big hole in the ground, but the cranes and construction workers have long gone.

It is a Sale (Commentary on Bai' Bithaman Ajil Part II)

Assalamu ‘Alaikum,

It’s a Sale ( Commentary on Bai’ Bithaman Ajil Part II)

One really has to grasp the principle or we can get confused and mixed up with a conventional term loan. A conventional loan is a loan of money, the lender is not really concerned what you do with the money, just pay the regular interest or agreed repayments and they are happy. They also do not wish to know what difficulties you are facing, just pay as agreed and let’s get on with our lives, that seems to be the attitude.

And you too, Pet!

And you too, Pet, our prayers are with you.

Our hearts go out to Anwar Ibrahim

Our hearts go out to Anwar Ibrahim. May Allah take care of you my brother. Hasbunallahu wa ni'mal wakil.

Commentary on Bai' Bithaman Ajil

Assalamu ‘Alaikum

Commentary on Bai' Bithaman Ajil

A sale where the payment of the price is deferred. This is the most familiar concept of Islamic Financing so much so it has almost become the de facto definition of Islamic banking in Malaysia. Which is a shame because Islamic Financing is so rich in concepts other than Al Bai' Bithaman Ajil.

Getting familiar with Islamic Financing

Getting Familiar with Islamic Financing

Approved Syariah Concepts for Islamic Economic Transactiions

Primary principles

Deferred-Payment Sale [ Bai’ Bithaman Ajil (BBA)]

A contract that refers to the sale and purchase transaction for the financing of an asset on a deferred and an instalment basis with a pre-agreed payment period. The sale of price will include a profit margin.