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Islamic Sharia Compliant Investment Funds – Blog Series No. 2 Islamic Sharia Compliant Investment in Shares and Equity Funds

Dealing in equity shares can be acceptable in Shariah subject to the following conditions: The principal business activity of the company does not violate Shariah principles and Islamic Moral values. Therefore, it is not permissible to acquire the shares of…

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Islamic Sharia Compliant Investment Funds – Blog Series No. 1 Introduction to Islamic Sharia Compliant Investment Funds

The term “Islamic Sharia Compliant Investment Fund” in this blogmeans a joint pool of collective investments funds, wherein the investors contributes money for the purpose of its investment to earn halal profits in strict conformity with the precepts of Islamic…

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Musharaka

Definition and classification of Musharakah  The literary meaning of Musharakah is “sharing”. The root of the term “Musharakah” in Arabic comes from the word “Shirkah”, which means ‘being a partner’. Under Islamic jurisprudence, Musharakah means; “a joint enterprise formed for…

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MUDARABAH

Mudarabah financing is a kind of partnership where one partner contributes money (i.e. the financier) to another (entrepreneur, who contributes his expertise, skill, knowledge, labour, idea), for investing in a commercial enterprise. The investment comes from the first partner who…

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