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Islamic Financing Presentation
 

Islamic Financing Presentation

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A brief overview on the process of Ijaara

A brief overview on the process of Ijaara

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    Islamic Financing Presentation Islamic Financing Presentation Presentation Transcript

    • Ijaara
    • Notable Scholars of Islamic Finance Abdulkader Thomas   SHAPE Financial Corporation Mufti Taqi Usmani   (Dar Ul Uloom Karachi) Molana Dr. Imran Ashraf Usmani   (Shariah Advisor Meezan Bank) Molana Dr. Ijaz Samdani   (Darululoom Karachi)
    • Islamic Finance History Developed in mid 8th century   Considered the early form of capitalism  Created many modern banking solutions ○ Checks, partnerships, corporations, trusts, etc . Modern Islamic finance   Based mostly in the Middle East  Steady growth rate of approximately 10-15%
    • Conflict of “Interest” Religion versus environment   Required to engage in Islamic finance solutions  Virtually no viable Islamic solutions exist in the current environment Need for Islamic institutions   Provide relief for conflict of interest
    • Western Banking System Dollar  • Dollar is the Asset • Charges for the Use of the Asset • Usury or Riba o Charging for the Use of Money
    • Islamic Banking System Asset Based  Money Asset  Service/Good is the Asset 
    • It’s All About the Process
    • The Process Halal Non Halal
    • Western Banking Process $300,000 $330,000
    • Calculating Interest $300,000 = Principle  10% = Interest  Mortgage Payment = Principle + Interest  Mortgage Payment = $300,000 + $30,000  Total Payment = $330,000 
    • Islamic Banking Process $325,000 $300,000
    • What are you Paying for? For use of the asset you are being charged  rent You are paying the fixed amount of  principle ($300,000) You are also paying the fixed amount for  use of the asset, or rent ($25,000) Total Payment = $325,000 
    • The Process Halal Non Halal
    • Q&A