Mudharabah

Assalamu 'Alaikum

Mudharabah

The icon of pure Islamic banking and the most maligned concept. Fourteen centuries ago a very special young man entered into a business relationship with a widowed noble lady of Makkah. She provides the capital; he buys goods and brings them for trade in Sham (Syria). Profits from the venture are shared based on a ratio as preagreed between them; any and all business losses are borned by the noble lady. The young man, Prophet Muhammad s.a.w, an icon of trustworthiness, captured the heart of the noble lady, Siti Khadijah r.a. She became his wife, and the rest, as they say is history.

Hounding Hudud : the abysmal failure of Muslims to do dakwah

Assalamu 'Alaikum

Hounding Hudud : The abysmal failure of Muslims to do dakwah

Let’s not even begin to discuss the merits or demerits of Hudud. That’s not where we should begin any discussion on Hudud. We need to explore and identify, the world view of the debaters before we begin the debate. If one is well learned, enlightened and knowledgeable on the subject and the other is well, none of the above, we should first focus on bringing that party’s world view up to scratch before commencing the debate. If we are debating the subject of physics we can see the folly of a university professor debating the subject with a sixth former.

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.

The Politics of Being Abroad

[classof72] The Politics of Being Abroad‏
From:zahid aziz (zaziz@hotmail.com)
Sent:Tuesday, May 20, 2008 11:33:19 AM
Reply-to:classof72@yahoogroups.com
To: classof72@yahoogroups.com; melayu_riyadh@yahoogroups.com

Assalamu 'Alaikum,
Nothing ever happens when you’re living in Malaysia but the minute you decide to leave and live abroad all manner of fun takes place. Its like when you were kids straining your eyes at the night sky hoping to glimpse at a shooting star you’ve read so much about but you never see it do you. But the minute you take your eyes of it the heavens blow up like a fire at a fireworks factory.

A Breathe of Fresh Air

[classof72] A Breathe of Fresh Air‏
From:zahid aziz (zaziz@hotmail.com)
Sent:Wednesday, March 12, 2008 10:55:19 PM
Reply-to:classof72@yahoogroups.com
To: melayu_riyadh@yahoogroups.com; classof72@yahoogroups.com

Assalamu ‘alaikum,

To me it was a simple choice. As a Muslim nothing but nothing is separable from Islam. As Muslims we should live and breathe Islam, for what higher title do we hold than to be the Vice Regent of Allah on this Earth. So it’s a foregone conclusion I will support whichever party upholds the command of Islam.

Sukuk in three jurisdictions, Malaysia, Gulf and Saudi Arabia

Sukuk in three jurisdictions, Malaysia, Gulf and Saudi Arabia

When Allah swt declared war on riba humans interpret it as ok to have it fifty fifty. In other words we say it’s ok to begin Islamic banking slowly, let it coexist with conventional banking so that the beauty of Islamic banking will shine through and eventually everyone will convert to it. That’s what we thought and assumed acceptable under Shariah. However a clear interpretation of Shariah does not support such a notion ; what is haram is haram and cannot be condone or allowed to exist in any form or manner.