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.
Istisna in Islamic Banking & Parallal Istisna
What is Istisna? Istisna is a special sale contract where the commodity is transacted before it comes into existence. Istisna in Islamic banking is mostly an order for the producer to manufacture a specific [...]
What is Musawamah in Islamic Banking? Examples & Contract Overview
What is Musawamah? Musawamah is an Arabic word that means "bargaining" or "negotiation." Musawamah in Islamic banking represents a trade where seller and buyer negotiate the price of goods or services without disclosing the [...]
Asset Backed Financing in Islamic Banking
What is Asset-Backed Financing in Islamic Banking? Asset backed financing in Islamic banking offers Sharia-compliant alternatives to conventional interest-based financial models. This financing method is grounded in the principles of risk-sharing and asset ownership, [...]
Musharakah Contract in Islamic Banking
What is Musharakah? Musharakah is a type of Islamic banking contract that involves two or more parties coming together to form a partnership. The term Musharaka means ‘sharing’ or ‘partnership’ in Arabic. Its root [...]
Sukuk (Islamic Bond) Meaning, Structuring & Types
Sukuk Meaning: Sukuk, commonly known as Islamic bonds, serve as a cornerstone in the realm of Islamic finance. The core sukuk meaning emerges from its Arabic root, which implies "certificates" or "documents". Despite the [...]
Is Investing in Stocks Haram or Halal?
Are Stocks Haram or Halal? Investing in stocks often raises questions of compliance within the Islamic faith, leading to queries such as "Is investing in stocks haram?" or "Are stocks haram?" The answer hinges [...]
Wadiah and its Types
Waidah Meaning: Wadiah means "custody" and "trust." In Islamic banking, it refers to a deposit. It has two types: Wadiah yad Dhamanah and Wadiah yad Amanah. وَدِيعَة differs from Qard; the concept involves safekeeping [...]
Islamic Microeconomics
What is Islamic Microeconomics, and What Does it Deal With? Microeconomic theory deals with the behavior of economic agents of the economic system, like consumers, firms, and factors of production. Subsistence and the means [...]
Reverse Murabaha or Tawarruq Contract in Islamic Banking
What is Tawarruq Contract or Reverse Murabaha? Tawarruq contract is also referred to as Reverse Murabaha. It is defined as, "A financial instrument in which a buyer purchases a commodity from a seller on [...]
Gharar: Meaning, Types, Examples & Role in Islamic Banking
Gharar Meaning in Islam: Gharar (الغرر) means uncertainty, hazard, chance or risk. Islamic dictionary describes it as “The sale of what is not present”. Now let us understand, what is gharar in Islamic banking. [...]