|
Qirad
The qirad (also known as Muqaradah by Hanafi and Hanbali scholars)Sapuan, Noraina Mazuin. "An evolution of Mudarabah contract: a viewpoint from classical and contemporary Islamic scholars." Procedia economics and finance 35, no. 3 (2016): 349-358. was one of the basic financial instruments of the medieval Islamic world. It was an arrangement between one or more investors and an agent where the investors entrusted capital to an agent who then traded with it in hopes of making profit. Both parties then received a previously settled portion of the profit. The agent was not liable for any losses, provided these did not exceed the capital subscribed. (In later Hanafi jurisprudence, the agent had no authority to incur liabilities in excess of the capital, and so would have to bear any further losses personally.) In modern Islamic finance, the term "Mudarabah" is used for the same instrument. "Mudarabah" is derived from "al-darb al-ard", which is mentioned in the Quran, however "Mudarab ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Investment
Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing is to generate a return from the invested asset. The return may consist of a gain (profit) or a loss realized from the sale of a property or an investment, unrealized capital appreciation (or depreciation), or investment income such as dividends, interest, or rental income, or a combination of capital gain and income. The return may also include currency gains or losses due to changes in the foreign currency exchange rates. Investors generally expect higher returns from riskier investments. When a low-risk investment is made, the return is also generally low. Similarly, high risk comes with a chance of high losses. Investors, particularly novices, are often advised to diversify their portfolio. Diversification has the statistical effec ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Commenda
The commenda was a medieval contract which developed in Italy around the 10th century, and was an early form of limited partnership. The commenda was an agreement between an investing partner and a traveling partner to conduct a commercial enterprise, usually overseas. The terms of the partnership varied, and are usually categorized by modern historians as ''unilateral commenda'' and ''bilateral commenda'', based on the share of contributions and profits between the partners. The bilateral commenda was known in Venice as colleganza or collegantia. The commenda has been described as a foundational innovation in the history of finance and trade. The commenda was a partnership between an investing partner (called the ''commendator'', or ''socius stans'') and a traveling partner (called the ''tractator'' or ''socius procertans''). The investing partner would provide the capital and the traveling partner would execute a commercial enterprise (generally an overseas trade), the initial capi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hanafi
The Hanafi school ( ar, حَنَفِية, translit=Ḥanafiyah; also called Hanafite in English), Hanafism, or the Hanafi fiqh, is the oldest and one of the four traditional major Sunni schools ( maddhab) of Islamic Law (Fiqh). It is named after the 8th century Kufan scholar, Abu Hanifa, a Tabi‘i of Persian origin whose legal views were preserved primarily by his two most important disciples, Imam Abu Yusuf and Muhammad al-Shaybani. It is considered one of the most widely accepted maddhab amongst Sunni Muslim community and is called the ''Madhhab of Jurists'' (maddhab ahl al-ray). The importance of this maddhab lies in the fact that it is not just a collection of rulings or sayings of Imam Abu Hanifa alone, but rather the rulings and sayings of the council of judges he established belong to it. It had a great excellence and advantage over the establishment of Sunni Islamic legal science. No one before Abu Hanifa preceded in such works. He was the first to solve the cases an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hanbali
The Hanbali school ( ar, ٱلْمَذْهَب ٱلْحَنۢبَلِي, al-maḏhab al-ḥanbalī) is one of the four major traditional Sunni schools (''madhahib'') of Islamic jurisprudence. It is named after the Arab scholar Ahmad ibn Hanbal (d. 855), and was institutionalized by his students. The Hanbali madhhab is the smallest of four major Sunni schools, the others being the Hanafi, Maliki and Shafi`i. The Hanbali school derives ''sharia'' primarily from the ''Qur'an'', the ''Hadiths'' (sayings and customs of Muhammad), and the views of Sahabah (Muhammad's companions). In cases where there is no clear answer in sacred texts of Islam, the Hanbali school does not accept ''istihsan'' (jurist discretion) or '''urf'' (customs of a community) as a sound basis to derive Islamic law, a method that Hanafi and Maliki Sunni '' madh'habs'' accept. Hanbali school is the strict traditionalist school of jurisprudence in Sunni Islam. It is found primarily in the countries of Saudi Arabia ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Islamic Golden Age
The Islamic Golden Age was a period of cultural, economic, and scientific flourishing in the history of Islam, traditionally dated from the 8th century to the 14th century. This period is traditionally understood to have begun during the reign of the Abbasid caliph Harun al-Rashid (786 to 809) with the inauguration of the House of Wisdom in Baghdad, the world's largest city by then, where Muslim scholars and polymaths from various parts of the world with different cultural backgrounds were mandated to gather and translate all of the known world's classical knowledge into Aramaic and Arabic. The period is traditionally said to have ended with the collapse of the Abbasid caliphate due to Mongol invasions and the Siege of Baghdad in 1258. A few scholars date the end of the golden age around 1350 linking with the Timurid Renaissance, while several modern historians and scholars place the end of the Islamic Golden Age as late as the end of 15th to 16th centuries meeting with the I ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mudarabah
Profit and Loss Sharing (also called PLS or participatory banking) refers to Sharia-compliant forms of equity financing such as mudarabah and musharakah. These mechanisms comply with the religious prohibition on interest on loans that most Muslims subscribe to. ''Mudarabah'' (مضاربة) refers to "trustee finance" or passive partnership contract, while ''Musharakah'' (مشاركة or مشركة) refers to equity participation contract. Other sources include sukuk (also called "Islamic bonds") and direct equity investment (such as purchase of common shares of stock) as types of PLS. Khan, ''Islamic Banking in Pakistan'', 2015: p.91 The profits and losses shared in PLS are those of a business enterprise or person which/who has obtained capital from the Islamic bank/financial institution (the terms "debt", "borrow", "loan" and "lender" are not used). As financing is repaid, the provider of capital collects some agreed upon percentage of the profits (or deducts if there are losses) ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Qur'an
The Quran (, ; Standard Arabic: , Quranic Arabic: , , 'the recitation'), also romanized Qur'an or Koran, is the central religious text of Islam, believed by Muslims to be a revelation from God. It is organized in 114 chapters (pl.: , sing.: ), which consist of verses (pl.: , sing.: , cons.: ). In addition to its religious significance, it is widely regarded as the finest work in Arabic literature, and has significantly influenced the Arabic language. Muslims believe that the Quran was orally revealed by God to the final prophet, Muhammad, through the archangel Gabriel incrementally over a period of some 23 years, beginning in the month of Ramadan, when Muhammad was 40; and concluding in 632, the year of his death. Muslims regard the Quran as Muhammad's most important miracle; a proof of his prophethood; and the culmination of a series of divine messages starting with those revealed to Adam, including the Torah, the Psalms and the Gospel. The word ''Quran'' occurs so ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Muhammad
Muhammad ( ar, مُحَمَّد; 570 – 8 June 632 Common Era, CE) was an Arab religious, social, and political leader and the founder of Islam. According to Muhammad in Islam, Islamic doctrine, he was a prophet Divine inspiration, divinely inspired to preach and confirm the tawhid, monotheistic teachings of Adam in Islam, Adam, Abraham in Islam, Abraham, Moses in Islam, Moses, Jesus in Islam, Jesus, and other Prophets and messengers in Islam, prophets. He is believed to be the Seal of the Prophets within Islam. Muhammad united Arabian Peninsula, Arabia into a single Muslim polity, with the Quran as well as his teachings and practices forming the basis of Islamic religious belief. Muhammad was born approximately 570CE in Mecca. He was the son of Abdullah ibn Abd al-Muttalib and Amina bint Wahb. His father Abdullah was the son of Quraysh tribal leader Abd al-Muttalib ibn Hashim, and he died a few months before Muhammad's birth. His mother Amina died when he was six, lea ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Dinars
The dinar () is the principal currency unit in several countries near the Mediterranean Sea, and its historical use is even more widespread. The modern dinar's historical antecedents are the gold dinar and the silver dirham, the main coin of the medieval Islamic empires, first issued in AH 77 (696–697 CE) by Caliph Abd al-Malik ibn Marwan. The word "dinar" derives from the Latin " ''dēnārius''," a silver coin of ancient Rome, which was first minted about c.211 BCE. The English word "dinar" is the transliteration of the Arabic دينار (''dīnār''), which was borrowed via the Syriac ''dīnarā'', itself from the Latin ''dēnārius''. The Kushan Empire introduced a gold coin known as the ''dīnāra'' into India in the 1st century AD; the Gupta Empire and its successors up to the 6th century adopted the coin. The modern gold dinar is a projected bullion gold coin, not issued as official currency by any state. Legal tender Countries currently using ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Dirhams
The dirham, dirhem or dirhm ( ar, درهم) is a silver unit of currency historically and currently used by several Arab and Arab influenced states. The term has also been used as a related unit of mass. Unit of mass The dirham was a unit of weight used across North Africa, the Middle East, Persia and Ifat; later known as Adal, with varying values. The value of Islamic dirham was 14 qirat, 10 dirham = 7 mithqal, in Islamic law (2.975 gm of silver). In the late Ottoman Empire ( ota, درهم), the standard dirham was 3.207 g; 400 dirhem equal one oka. The Ottoman dirham was based on the Sasanian drachm (in Middle Persian: ''drahm''), which was itself based on the Roman dram/drachm. In Egypt in 1895, it was equivalent to 47.661 troy grains (3.088 g). There is currently a movement within the Islamic world to revive the dirham as a unit of mass for measuring silver, although the exact value is disputed (either 3 or 2.975 grams). History The word "dirham" ultimately ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Islamic Banking
Islamic banking, Islamic finance ( ar, مصرفية إسلامية), or Sharia-compliant finance is banking or financing activity that complies with Sharia (Islamic law) and its practical application through the development of Islamic economics. Some of the modes of Islamic banking/finance include ''Mudarabah'' (profit-sharing and loss-bearing), ''Wadiah'' (safekeeping), ''Musharaka'' (joint venture), ''Murabahah'' (cost-plus), and ''Ijara'' ( leasing). Sharia prohibits ''riba'', or usury, defined as interest paid on all loans of money (although some Muslims dispute whether there is a consensus that interest is equivalent to ''riba''). Investment in businesses that provide goods or services considered contrary to Islamic principles (e.g. pork or alcohol) is also ''haram'' ("sinful and prohibited"). These prohibitions have been applied historically in varying degrees in Muslim countries/communities to prevent un-Islamic practices. In the late 20th century, as part of the revi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Islamic Jurisprudence
''Fiqh'' (; ar, فقه ) is Islamic jurisprudence. Muhammad-> Companions-> Followers-> Fiqh. The commands and prohibitions chosen by God were revealed through the agency of the Prophet in both the Quran and the Sunnah (words, deeds, and examples of the Prophet passed down as hadith). The first Muslims (the Sahabah or Companions) heard and obeyed, and passed this essence of Islam to succeeding generations (''Tabi'un'' and ''Tabi' al-Tabi'in'' or successors/followers and successors of successors), as Muslims and Islam spread from West Arabia to the conquered lands north, east, and west, Hoyland, ''In God's Path'', 2015: p.223 where it was systematized and elaborated Hawting, "John Wansbrough, Islam, and Monotheism", 2000: p.513 The history of Islamic jurisprudence is "customarily divided into eight periods": El-Gamal, ''Islamic Finance'', 2006: pp. 30–31 *the first period ending with the death of Muhammad in 11 AH. *second period "characterized by personal interpreta ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
