This document provides an introduction to Islamic finance for agriculture and small- and medium-sized enterprises (SMEs). It discusses the importance of the agricultural sector and SMEs, as well as the financing needs for each. The presentation then outlines the key principles of Islamic finance, including prohibitions on interest and risky transactions, and describes various Islamic contract structures that can be used to provide financing, such as partnerships, leasing, and asset-backed structures. The presentation concludes that Islamic finance offers ethical and balanced alternatives to conventional financing models.
The four Asian Tigers, Asian Dragons and Asian Miracles are various terms used to refer to the highly developed economies of
Hong Kong
South Korea
Singapore
Taiwan
The economic success of the Asian Tigers resulted from their own efforts. Each country largely followed the Japanese model of export-led development: they began with exports of the cheapest products, educated their citizens so that they would be knowledgeable workers, and then increased the value of the products that were being exported. Today, South Korea, for instance, is the home of technology giants Samsung and LG, both of which have benefited immensely from government policies that promoted education. Singapore, meanwhile, has become a global trading and banking hub-another example of expertise in a high-value industry.
The four Asian Tigers, Asian Dragons and Asian Miracles are various terms used to refer to the highly developed economies of
Hong Kong
South Korea
Singapore
Taiwan
The economic success of the Asian Tigers resulted from their own efforts. Each country largely followed the Japanese model of export-led development: they began with exports of the cheapest products, educated their citizens so that they would be knowledgeable workers, and then increased the value of the products that were being exported. Today, South Korea, for instance, is the home of technology giants Samsung and LG, both of which have benefited immensely from government policies that promoted education. Singapore, meanwhile, has become a global trading and banking hub-another example of expertise in a high-value industry.
Financial Solution for South Sudan INVESTMENT & GROWTHSand Mba
South Sudan is the youngest African country and classified as low-income, fragile country facing significant domestic and international constraints plagued by war and conflict yet seek financial solution that will encourage investment and growth. What is that Financial Solution?
Stimulation of foreign resources into Nigeria is to transform the economy as neoclassical economics promised. Successive governments in Nigeria usually attract large inflows, yet, small proportion is usually distributed to the agricultural sector despite the importance of this sector and the need for such capital. This study therefore focuses on the policy implication of sectoral distribution of foreign capital for the agricultural sector in Nigeria. The main objective is to examine the contribution of foreign capital to growth in the agricultural sector. Secondary data are employed for analysis. The relevant data are obtained from Central Bank of Nigeria (CBN) Statistical Bulletin. Simple percentages, tables and charts are the tools of analysis, while regression and correlation techniques are the inferential statistical approaches applied. Findings show that distribution of capital inflow in Nigeria does not reflect theoretical position that capital should flow to sectors of need, particularly, where there are abundant raw materials. This theoretical postulation has not been upheld in Nigeria where capital inflow was found to be randomly distributed. This has had negative effect on the contribution of foreign capital to growth in agricultural sector. It is therefore recommended that government should pursue policies like tax holidays and production subsidies for foreign investments in the agricultural sector.
Alberto Brugnoni - Assaif
Presentation within the conference "Halal Food - a border that does not divide", organized by LINK2007 in collaboration with the Italian Directorate-General of the Italian Ministry of Foreign Affairs and International Cooperation and Assaif.
Milan, October 23rd 2015
Financial Solution for South Sudan INVESTMENT & GROWTHSand Mba
South Sudan is the youngest African country and classified as low-income, fragile country facing significant domestic and international constraints plagued by war and conflict yet seek financial solution that will encourage investment and growth. What is that Financial Solution?
Stimulation of foreign resources into Nigeria is to transform the economy as neoclassical economics promised. Successive governments in Nigeria usually attract large inflows, yet, small proportion is usually distributed to the agricultural sector despite the importance of this sector and the need for such capital. This study therefore focuses on the policy implication of sectoral distribution of foreign capital for the agricultural sector in Nigeria. The main objective is to examine the contribution of foreign capital to growth in the agricultural sector. Secondary data are employed for analysis. The relevant data are obtained from Central Bank of Nigeria (CBN) Statistical Bulletin. Simple percentages, tables and charts are the tools of analysis, while regression and correlation techniques are the inferential statistical approaches applied. Findings show that distribution of capital inflow in Nigeria does not reflect theoretical position that capital should flow to sectors of need, particularly, where there are abundant raw materials. This theoretical postulation has not been upheld in Nigeria where capital inflow was found to be randomly distributed. This has had negative effect on the contribution of foreign capital to growth in agricultural sector. It is therefore recommended that government should pursue policies like tax holidays and production subsidies for foreign investments in the agricultural sector.
Alberto Brugnoni - Assaif
Presentation within the conference "Halal Food - a border that does not divide", organized by LINK2007 in collaboration with the Italian Directorate-General of the Italian Ministry of Foreign Affairs and International Cooperation and Assaif.
Milan, October 23rd 2015
AlHuda CIBE going to organize Two days specialized training workshop on Islamic Banking, Finance and Islamic Microfinance at Philippines on 04-05 October, 2018
E: info@alhudacibe.com
http://www.alhudacibe.com/conference2018/IBIMFPH/
The Global Islamic Economy Summit 2013 is organized by Dubai Chamber of Commerce & Industry and Thomson Reuters, held on 25th-26th November, 2013 at Madinat Jumeirah, Dubai, UAE under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum,
Vice President and Prime Minister of the UAE and Ruler of Dubai.
AlHuda-Centre of Islamic Banking and Economics (CIBE) is a well known name in Islamic Banking and Finance sector which focuses on training, awareness, advisory and publications on Islamic Banking & Finance in order to promote the industry. AlHuda CIBE has organized a successful Conference "3rd Global Islamic Microfinance Forum" held on 6th & 7th October, 2013 in Dubai. AlHuda CIBE is very much pleased to share the topics and presentations being held in the Forum.
Role of Women Entrepreneurship in Economic Developmentuma reur
Entrepreneurs initiate and sustain the process of economic development in the following ways:
1. Capital Formation:
2. Improvement in Per Capita Income:
3. Generation of Employment:
4. Balanced Regional Development:
5. Improvement in Living Standards:
6. Economic Independence:
7. Backward and Forward Linkages:
8. Innovation:
9. Other contributions:
This project is part of an edX course: Unlocking investment and finance in Emerging Markets and Developing economies. I opted to 'create' my own country St Paul and devise a finance Strategy for the next 5 years in order to meet our development goals as an employee of the ministry of finance. To do this the following must be highlighted: the estimated financing needs of my country, sources of finance available, how to access these sources and how to work with Multilateral Developments Banks to do so.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
The European Unemployment Puzzle: implications from population aging
DrChachi on Introduction to Islamic Finance for Agriculture and SMEs
1. 30 April 2015
Introduction to Islamic Finance
for Agriculture and SMEs
Dr Abdelkader Chachi
Senior Training Specialist & Economist Researcher
Islamic Research and Training Institute, Islamic Development Bank, Jeddah, KSA
Presented at the Workshop organised by UNNExT on
“Trade Facilitation: Paperless Trade Facilitation for
Small and Medium-Sized Enterprises in Central Asia”
Held in Almaty, Kazakhstan, 4-6 May 2015
2. 30 April 2015 2
1. Importance of Agricultural Sector
2. Problems faced by Agricultural Sector
3. Importance of SMEs
4. Finance Needs for SMEs
5. Introduction to Islamic Finance
6. Islamic Finance for Agriculture and for SMEs
7. Conclusion
Outline of the Presentation
3. 30 April 2015 3
◊ Agriculture is probably the first economic activity performed by human beings, if we
add to it hunting, fishing and cattle breeding.
◊ Agriculture remained for centuries the most important economic activity in the entire
world.
◊ Agriculture is still a major source of livelihood throughout the world, especially for
the majority of poor people living in rural areas in developing countries.
◊ Agriculture sector contributes about 40% of worldwide employment and 100% of
food production.
◊ Despite the discovery of industry, trade and other services that became rival to
agriculture, agriculture was and still is the primary source of food security for the
world’s populations.
Importance of Agricultural Sector
4. 30 April 2015 4
◊ Increasing agricultural production is required in all countries, especially in
developing countries to feed the increasing populations.
◊ Investment in agricultural sector is critical for driving global economic growth.
◊ A key challenge for the majority of farmers all over the world is access to finance.
◊ Lack of access to finance is a key impediment to farmers in improving the
efficiency of their productions and adopting better technologies.
◊ Therefore, funding it is a necessity in to support economic growth, sustain
economic development, and ensure food security, youth employment, increase
food supply and reduce inflation, etc..
Importance of Agricultural Sector
5. 30 April 2015 5
1. The small size of the cultivated areas in some countries
2. The urban expansion in the countryside.
3. The exodus from the countryside towards the cities.
4. The small size of properties.
5. The fluctuation of agricultural production (depending on rain from year to year) and
prices.
6. The desertification (where agricultural land became non-productive).
7. The lack of financial support for agricultural projects.
8. The failure of financial authorities and laws to meet the demand for Islamic finance
9. The lack of encouragement to engage in agriculture.
Problems Facing Agricultural Sector
6. 30 April 2015 6
◊ Small and medium-sized businesses account for more than 90% of private sector
companies and provide more than 60% of private sector jobs.
◊ However, these businesses are all too often overlooked and grossly underestimated by
policy makers, bankers and other financers.
◊ Often the hardest part of starting a business is raising the money to get going. The
entrepreneur might have a great idea and clear idea of how to turn it into a successful
business. However, if sufficient finance cannot be raised, it is unlikely that the business
will get off the ground.
◊ The economic importance of small and medium businesses has grown dramatically in
developed countries since 1980s
Importance of SMEs
Sabine Vinck “Importance Of SMEs Is Grossly Underestimated” http://www.forbes.com/sites/lbsbusinessstrategyreview/2014/12/12/importance-of-smes-is-grossly-underestimated/2/
Lim Riley (2012) "Sources of finance for startups and SMEs” http://www.tutor2u.net/business/finance/finance_sources_smes.htm
7. 30 April 2015 7
◊ Much attention has been paid to small firms worldwide due to their potential for generating jobs
and economic growth.
◊ Small and medium enterprises (SMEs) are increasingly seen as playing an important role in
the economies of many countries. Thus, governments throughout the world focus on the
development of the SME sector to promote economic growth.
◊ For example the UK now has more than one million small businesses than it had in 1979. As a
result, it is now accepted government policy that the small firm sector is the main vehicle for
recovery from recession and the main provider of jobs.
◊ Similarly in the US, the economy passed a milestone of great importance in 1979 by the shift
from industrial manufacturing economy composed of large firms to an entrepreneurial economy
driven by information and innovative technology (Wetzel, 1996).
Importance of SMEs
Sabine Vinck “Importance Of SMEs Is Grossly Underestimated” http://www.forbes.com/sites/lbsbusinessstrategyreview/2014/12/12/importance-of-smes-is-grossly-underestimated/2/
Lim Riley (2012) "Sources of finance for startups and SMEs” http://www.tutor2u.net/business/finance/finance_sources_smes.htm
8. 30 April 2015 8
◊Access to finance
◊ All businesses require financial resources in order to start trading and to fund growth.
◊ Lack of access or availability can be a constraint on business growth.
◊ Whether business owners can access adequate and appropriate finance to grow is a
particular concern for policymakers.
◊ New SMEs can be financed from founders’ own wealth and/or by accessing external sources
of finance, whether from ‘informal’ sources such as family and friends, or from ‘formal’,
market-based sources such as banks, venture capitalists and private equity firms.
◊ Once businesses are trading, further development can be financed using retained profits.
Finance Needs of SMEs
http://www.forbes.com/sites/skollworldforum/2013/08/26/financing-agricultural-growth-in-africa/
9. 30 April 2015 9
◊ The preservation of wealth is one of the 5 main Objectives of Islamic Shari‘ah (Maqasid Al-
Shari‘ah). These are the preservation of:
Deen (religion)
Nafs (life)
‘Aql (mind)
Nasl (progeny)
Mal (wealth)
◊ Anything that affects any of these objectives positively is welcomed in Islam and anything
that affects any of them negatively is not acceptable.
Introduction to Islamic Finance
10. 30 April 2015 10
◊ The Islamic Shari‘ah is made up of two components. These are:
Ibadat (Worship Rites)
‘Mu‘amalat) (Transactions)
◊ Any innovation in Ibadat is not acceptable.
◊ Every Mu‘amalat (transaction) is acceptable in Islam as long as it does not involve one or
more of the prohibited ones such as Riba (usury & interest), Gharar (deception), Qimar
(gambling), Ihtikar (monopoly), Iktinaz (hoardding), Mujazafah (speculation), etc..
◊ Therefore, the Muslims could have their own Financial or banking System that complies with
the rules of the Islamic Shari‘ah, as long as they avoid the prohibited transactions.
Introduction to Islamic Finance (cont.)
11. 30 April 2015 11
◊ Permission of all transactions that do not involve any prohibition.
◊ Prohibition of Riba (Interest/Usury) is perhaps the most eminent.
◊ Prohibition of contracts involving Gharar (excessive risk, deception and uncertainty).
◊ Prohibition of Qimar (gambling), Iktinaz (hoarding), Ihtikar (monopoly), Israf (extravagance),
Fasad (corruption), Mujazafah (speculation), Ghish (deception) Tadlees (fraud) Kathib (lying),
Sariqah (stealing), etc..
◊ Prohibition of dealings involving Khamr (intoxicants), Khinzir (Pork), and all unethical
dealings such as prostitution, stealing, etc..
◊ Selling what is not owned or possessed.
◊ Selling Fruits before they are ripe.
◊ Selling debts.
Introduction to Islamic Finance (cont.)
12. 30 April 2015 12
As Sami Suweilem put it the Islamic Financial
System is based on two fundamental pillars:
For-Profit Domain or Business Sector
Non-Profit Domain or Charitable Sector
For Islamic Finance to be successful it must
take a balanced approach and implement the
2 pillars at the same time.
Introduction to Islamic Finance (cont.)
Like a bird, an economy needs the two sectors to fly
Sami Suweilem (2011) "Introduction to Islamic Finance", power point presentation
delivered to the Staff of the World Bank through video-conferencing
13. 30 April 2015 13
◊ Islamic Modes of Finance for Agricultural Sector
◊ Islamic banks and other Islamic financial institutions may apply the following Islamic
contracts to specifically finance agriculture:
1. Muzara‘ah Contract (between an owner of a land and a farmer who is ready to work in it.
They share the yields as agreed 50-50% or 40-60%, for example)
2. Mugharasah Contract (a landowner gives a farmer a land to plant fruit trees to be partners
in the land and trees when they bear fruits)
3. Musaqah Contract (Use someone in watering fruit trees of an existing orchard and share
the yields as agreed 50-50% or 40-60%, for example)
4. Salam Contract (the financier advances money to a farmer in order to receive a certain
amount of a measured quantity and described quality of a crop)
Introduction to Islamic Finance (cont.)
14. 30 April 2015 14
◊ Islamic Modes of Finance for Business Sector
◊ Islamic banks and other Islamic financial institutions may apply the following
Islamic contracts to finance agriculture, SMEs or any business either directly if
the country's laws allow it, or through subsidiaries:
1. Musharakah (Partnership/joint venture). A contract in which two or more
investors pool their funds for a project and share its profits and losses
2. Mudarabah contract under which the Mudarib (entrepreneur) manages the
funds of Rabb al-Mal (investor) for a percentage on any profits made.
Financial losses to be born by Rabb al-Mal.
Introduction to Islamic Finance (cont.)
15. 30 April 2015 15
◊Islamic Modes of Finance for Business Sector (cont.)
3. Murabahah (Markup sale) a contract of sale in which payment is made some
time after delivery of the goods transacted with a pre-agreed higher price
4. Bay‘ Mu’ajjal sale on deferred payment: allows the buyer to pay for the
goods over a series of instalments.
5. Ijarah (Leasing) hire of an asset for an agreed rental for a fixed period.
6. Ijarah waqtina’ (Hire Purchase) same as Ijarah, but that at the end of the
contract the asset leased becomes the property of the lessee.
Introduction to Islamic Finance (cont.)
16. 30 April 2015 16
◊Islamic Modes of Finance for Business Sector (cont.)
7. Jo‘alah: A Commission or a reward for doing a specific job or rendering a
specific service.
8. Istisna‘ commissioned manufacture made-to-order in which the manufacturer
designs and makes the product in accordance with the buyer's wishes.
9. Tawarruq: Buying a commodity on deferred payment then selling it for cash to
a different buyer than the original seller.
10. Sukuk: Certificates of investments in a project for a specific period with a
promise of a share in the proceed of the investment.
Introduction to Islamic Finance (cont.)
17. 30 April 2015 17
◊Islamic Modes of Finance for Charitable Sector
1. Nafaqah: obligatory spending for designated relatives: parents, family and close
relatives.
2. Zakah (compulsory charity) 2.5% of savings given annually to the poor and needy. One
of the 5 pillars of Islam.
3. Sadaqah (voluntary charity) very much recommended by Islam in addition to help the
poor and destitutes.
4. Awqaf (endowments) perpetual charity.
5. Takafol (Mutual or cooperative solidarity or insurance). Participants pool their funds as
a provision against any losses to life, limb, or property that one of them may suffer.
6. Qard Hassan: interest-free loan.
Introduction to Islamic Finance (cont.)
18. 30 April 2015 18
◊ Islamic Finance is offers a number of alternative modes of finance that can suit
any business, whether in agriculture, for SMEs or any other business.
◊ Contrary to conventional finance which lend finance on interest, that the client
has to pay or face bankruptcy, The client of Islamic finance has a number of
choices to select from.
◊ In most of the Islamic contracts of finance, the client loss is limited to his share
in the capital of the project or to his reward in the contract and he does not
need to guarantee the capital and interest to the financier.
Conclusion
19. 30 April 2015 19
◊ Islamic Finance is ethical
◊ Islamic Finance is fair
◊ Islamic Finance is balanced
◊ Islamic Finance is more stable
◊ Islamic finance provides more choice of financial products
◊ Islamic finance deals in real economy
◊ Islamic finance prohibits all forms of exploitative means such as gambling, fraud,
speculation, monopoly, etc..
◊ Islamic finance is spreading all over the world including Non-Muslim Countries
Conclusion
20. 2030 April 2015
جزيال شكرا
Thank You very much
Merci Beaucoup
Muchas Gracias
Email: achachi@isdb.org
Tel. +966-12-646 6229
Fax. +966-12-637 8927
Website: irti.org