related to islamic banking

1. Presented by :
Ahmad Raza Bajwa
Muhammad Abdullah

2.  Islamic Law Framework
 No interest / gambling
 Avoiding Unlawful Businesses
 Derived from Islamic Economics

3.  Caliphate
 Distribution & Circulation on Equality
 Clear roles in Policy etc
 Two prime views

4.  Various modes of Sharia’h complaint financing
 Expansion at global level in 30 years
 $400 Billion industry size
 15% growth

5. NAME Branches
Meezan Bank Limited 62
Al Baraka Islamic Bank 11
Bank Islami Pakistan Limited 10
Dubai Islamic Bank Pakistan Limited 10
Emirates Global Islamic Bank Limited 6
First Dawood Islamic Bank Limited 1

7.  Murabaha
- Contract of sale
- Seller declares cost & profit
- Bank buys on behalf of customer
 Ijarah
- Contract for leasing
- Agreed rental
- Ownership is subjective

8.  Musharakah
- Joint businesses ,P/L sharing
- Pre agreed ratios for profit
- Losses
- Mixed funds provision
- Participation in management

9. • contractual agreement for manufacturing goods and
commodities
• allowing cash payment in advance and future delivery or a
future payment and future delivery
• used for providing the facility of financing the manufacture or
construction of houses, plants , roads and highways

10.  a contract in which the bank earns a profit margin on his
purchase price and allows the buyer to pay the price of the
commodity at a future date in a lump sum or in installments.
 Must mention cost of the commodity and the margin of profit is
mutually agreed.
 The price fixed for the commodity in such a transaction can be
the same as the spot price or higher or lower than the spot price

11.  A form of partnership
 one party provides the funds
 the other provides expertise and management(Mudarib).
 Any profits accrued are shared between the two parties on a pre-
agreed basis, while loss is borne only by the provider of the
capital.

12.  Salam means a contract in which advance payment is made for
goods to be delivered later on.
 The seller undertakes to supply some specific goods to the buyer
at a future date in exchange of an advance price fully paid at the
time of contract.
 quality of the commodity intended to be purchased is fully
specified.
 The objects of this sale are goods and cannot be gold, silver or
currencies.

13.  Human resource for Sharia'h compliance
 Unresolved Fiqh Issues
 Legal framework
 Excess Liquidity
 Technology