Financial Systems prevailing 1400 years back Islam had maintained this mode

Financial systems prevailing 1400 years back islam

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Financial Systems prevailing 1400 years back Islam had maintained this mode after Nabuwat So, Mudarabah was considered to be legitimate Islamic Transaction Essence If SSU can give money to( ) SDU under Halal and Permissible Islamic Mechanism Then, it is possible that Finance can be Islamic
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Financial Systems at the time of Riba Prohibition Profession of Makki Sahab (RA) Trading with Yemen & Syria Profession of Madni/Ansar Sahab (RA) Farming
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Financial Systems at the time of Riba Prohibition Ansar Sahab (RA) came to Prophet Muhammad (SAW) and said that: We use to finance our cultivation through Riba based loans Buy Seeds Paid to Labor Met our home expenditures On cultivation We use to liquidate our cultivation And use to pay principal along with interest What to do now? There must have been some Badri Saheb and some ںولواںوقوبا ووس So, they went & requested Hazrat Muhammad (SAW). Nabi Karim (SAW) told them a contract called SALAM In which the Agricultural Products can be sold in advance & its price can be received in advance. This produce should not be specifically from your land
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Credit Sale or Purchase If you don’t have money You can buy on credit or sell on credit Bai Mujjal Murabaha Mua’jjal Here Who is SSU? Seller is SSU Who is SDU? Buyer is SDU SSU sell at a higher price with increased margin/profit
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ASSETS Nature of Assets REAL MONETARY (Definition by Brealey Myer) These are those assets which have intrinsic utilities, i.e. power to satisfy human wants (Definition by Fuqahaa’) ںیم تاذ یکزیچ سک وھ ءافن Example: Utility of Clock, Board, Seat, etc Example: Utility of 1,000 rupee note Can it be used to quench thirst? Can it be used as communication device? Can calculation be done on it? Can it be used for sms? Both definition are same
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ASSETS Can Fixed Return be earned? REAL MONETARY NON CONSUMABLES CONSUMABLES نمث یقیقح Gold (Dinnar) & Silver(Dirham) / Rupees, $, Euro Tangible Assets – Building, Chair, Water_Glass, etc Food/Fuel/Water / Marker Ink Muhsarakah Mudabarah Buy or Selling Fixed Rent If I make an investment, Can I take a fixed return? Fixed Return cannot be earned on Red Balloon Category Fixed Return can be earned on Green Balloon Category Loan given to someone & a fixed return is set on it Riba Dr ZA’s investement @ UBL Dr ZA’s nani 4 house on rent - Capitalist
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Why Islamic Finance?
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  • Summer '19
  • Faisal Sawar
  • Sharia

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