Islamic Banking and Finance Blog
Welcome to the Islamic finance blog at AIMS Education, your resource on information and the Islamic banking and financial industry, products, and services. Our Islamic banking blog provides insightful perspectives, analyses, and updates on the ever-expanding Islamic finance domain in the finance sector worldwide. Our articles on Islamic banking and finance will help you keep up with what is new and developing in the Islamic banking and finance industry.
8 Key Principles of Consumption in Islam
The Concept of Consumption in Islam Consumption, in Islamic terminology, refers to the act of using goods and services to satisfy human needs and desires. Consumption in Islamic economics is a central activity that [...]
Ariyah in Islamic Jurisprudence and Finance
What is an Ariyah? Ariyah is an Arabic term that refers to the lending of non-fungible objects for a gratuitous purpose. In classical Islamic jurisprudence, Ariyah (also spelled Aariyat) is defined as making another [...]
14 Key Principles of Business in Islam
What are the Principles of Business in Islam? Islam is not just a religion—it is a comprehensive way of life that deeply values ethical business conduct. Islam outlines clear and practical guidelines for commercial [...]
What is Hawala? Mechanism & Role in Islamic Finance
What is Hawala (حوالہ)? In Arabic, the term ḥawala or حوالہ refers to "transfer" or "trust", and it is an informal way of transferring funds where no actual cash is interchanged. The origin of [...]
Understanding the Concept of Capital in Islam
Understanding Capital in Islam Capital in Islam is a “third factor of production” or “produced means of production.” It refers to a set of acquired consuming values spent to generate more of the same [...]
Amanah in Islamic Banking and Finance
What is an Amanah? “Amanah” (امانة) originates from an Arabic word that means trust or loyalty. In Islamic banking and finance, it refers to a transaction when a person gives something (such as property [...]
What is Iqtisad (اقتصاد) or Moderation in Spending in Islam?
What is Iqtisad and Ilm-ul-Iqtisad? The term Iqtisad (اقتصاد) is derived from the Arabic word “Qas’d” (قصد), which means to signify moderation or balance in spending, actions and behavior. In Islam, Iqtisa'd implies a [...]
Muzara’ah (مُزارَعَة) in Islamic Finance
What is Muzara'ah (مُزارَعَة) in Islam? The term Muzara’ah (مُزارَعَة) is derived from the Arabic root word "Zara", which means "to sow the seed." In Islam, Muzara’ah refers to a contractual arrangement wherein the [...]
What is Bai (Sale) or بيع? Types, Conditions for Valid & Invalid Bai
What is Bai (Sale)? Sale or Bai (بيع) is defined as the “Exchange of a thing of value, by another thing of value, with mutual consent." More specifically, Bai may be defined as the [...]
What is Istijrar? Meaning, Types of Bail Istijrar Contract in Islamic Banking
What is Istijrar? Bai Istijrar (اِستِجرار) is a Shariah-compliant repeat Sale Agreement in which a buyer purchases goods from a seller in different quantities over time, and the payment is made at the end [...]