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Outline of Presentation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Islam and Shariah Islam Aqidah (Faith & Belief) Shariah (Practices & Activities) Akhlaq (Morality & Ethics) IBADAT (Man to God Worship) Muamalat (Man to Man Activities) Political Activities Economic Activities Social Activities Banking & Financial Activities
Sources of Fiq’h in Islam  (Islamic Finance) ,[object Object],[object Object],[object Object],[object Object]
Basic Difference between Islamic and Conventional Banking ,[object Object],Bank Client Money  Money + Money(interest) Bank Client Islamic Banking Goods & Services money
Riba in Quran ,[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Human Financial Needs Fulfillment of Financial Needs  Own Capital Others’ Capital Equity Financing Debt Financing
External (Equity & Debt) Financing Debt Market Equity Market Bai’ al-Istisna’  (Sale on Order) Bai’ al-Salam  (Commodity Sale) Al-Ijarah  (Leasing) Others Bai’ al-Murabaha  (Cost Plus Profit Sale) Al-Musharakah  (Joint Venture Profit Sharing) Al-Bai’ Bithaman (Mu)Ajil  (Deferred Installment Sale) Al-Mudarabah  (Trustee Profit Sharing) Uqud al-Muawadhat (Deferred Contracts of Exchange) Uqud al-Ishtirak  (Contracts of Profit Sharing ) Debt Financing Equity Financing
PRODUCT TREE Islamic Banking Modes Trade Based  Modes Partnership Based  Modes Rental Based  Modes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
ONUS SHIFTS!! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Industry Progress in Pakistan ,[object Object],[object Object],Year  2001 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2002 2003 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2 10 2007 - 09 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2004 - 06 18 4 3
Industry Progress & Mkt. Share
 
 
 
 
 
Islamic products and services offered by 800+  Financial Institutions around the world ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
International Overview  ,[object Object],[object Object],[object Object],[object Object]
International Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
International Overview ,[object Object],[object Object]
International Overview ,[object Object],[object Object]
International Overview ,[object Object],[object Object],[object Object]
Encourage asset-based financing and based on commodity trading & Services Based on money trading. Money is a medium of exchange and not a commodity Partners, investor and traders, buyer or seller relationship Creditor-Debtor relationship Aim at maximising profit but subject to Sharia'h restrictions Aim at maximising profit without any restrictions Promote risk-sharing between provider of capital (investor) and user of funds (entrepreneurs) Investor is assured of pre-determined rate of interest Functions and operations are based on Sharia’h principles Functions and operations are based on fully man made principles Islamic banking  Conventional banking
Deal in Zakat Do not Deal in Zakat ( Non Muslim Countries ) Islamic banks have no provision to charge any extra money from the defaulters  It can charge additional money in case of defaulters  No right of profit if there is no risk involved.  It is almost risk free banking and depositor has no risk of losing its money because interest is guaranteed. Islamic banking  Conventional banking
[object Object],[object Object]
PRODUCT TREE Islamic Banking Modes Trade Based  Modes Partnership Based  Modes Rental Based  Modes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Basic Rules of Bai ,[object Object],[object Object],[object Object]
Basic Rules of Bai ,[object Object],[object Object],[object Object]
Basic Rules of Bai ,[object Object],[object Object],[object Object]
Bai (Buying & Selling) ,[object Object]
Kinds of Bai ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Basic Kinds of Bai ,[object Object],[object Object],[object Object]
Bai  ,[object Object],[object Object],[object Object],[object Object]
Murabahah ,[object Object],[object Object],[object Object]
Murabahah ,[object Object],[object Object],[object Object],[object Object]
Bai ,[object Object],[object Object],[object Object],[object Object],[object Object]
Salam ,[object Object],[object Object],[object Object],[object Object]
Istisna’ ,[object Object],[object Object],[object Object]
Bai ,[object Object]
Differences Between Istisna and Salam ,[object Object],[object Object]
Differences Between Istisna and Salam ,[object Object],[object Object]
Type of Bai according to Quality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Type of Bai according to Quality ,[object Object],[object Object],[object Object]
Thank You.

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Alhuda Presentation

  • 1.  
  • 2.
  • 3.
  • 4. Islam and Shariah Islam Aqidah (Faith & Belief) Shariah (Practices & Activities) Akhlaq (Morality & Ethics) IBADAT (Man to God Worship) Muamalat (Man to Man Activities) Political Activities Economic Activities Social Activities Banking & Financial Activities
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. External (Equity & Debt) Financing Debt Market Equity Market Bai’ al-Istisna’ (Sale on Order) Bai’ al-Salam (Commodity Sale) Al-Ijarah (Leasing) Others Bai’ al-Murabaha (Cost Plus Profit Sale) Al-Musharakah (Joint Venture Profit Sharing) Al-Bai’ Bithaman (Mu)Ajil (Deferred Installment Sale) Al-Mudarabah (Trustee Profit Sharing) Uqud al-Muawadhat (Deferred Contracts of Exchange) Uqud al-Ishtirak (Contracts of Profit Sharing ) Debt Financing Equity Financing
  • 10.
  • 11.
  • 12.
  • 13. Industry Progress & Mkt. Share
  • 14.  
  • 15.  
  • 16.  
  • 17.  
  • 18.  
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25. Encourage asset-based financing and based on commodity trading & Services Based on money trading. Money is a medium of exchange and not a commodity Partners, investor and traders, buyer or seller relationship Creditor-Debtor relationship Aim at maximising profit but subject to Sharia'h restrictions Aim at maximising profit without any restrictions Promote risk-sharing between provider of capital (investor) and user of funds (entrepreneurs) Investor is assured of pre-determined rate of interest Functions and operations are based on Sharia’h principles Functions and operations are based on fully man made principles Islamic banking Conventional banking
  • 26. Deal in Zakat Do not Deal in Zakat ( Non Muslim Countries ) Islamic banks have no provision to charge any extra money from the defaulters It can charge additional money in case of defaulters No right of profit if there is no risk involved. It is almost risk free banking and depositor has no risk of losing its money because interest is guaranteed. Islamic banking Conventional banking
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.
  • 38.
  • 39.
  • 40.
  • 41.
  • 42.
  • 43.
  • 44.
  • 45.

Editor's Notes

  1. Source: Institute of Policy Studies
  2. Collective Ijtamaee Ijtehad at 4.5