SUKUKBAY.COM

Islamic Finance creating wealth through trading in real assets, investments and partnership

Sukuk Contracts can be Murabaha, Mudaraba, Musharaka, Ijara, Salam and Istisna.

 

Fiqh (Islamic law) has laid down clear principles on wealth, it’s management and specific contracts to manage it including  adherence to moral guidance governing property and wealth.

 

In Islam there is no time value for money, so interest cannot be charged or paid, but Islam recognises capital as factor of production providing yields based upon sharing of profit and loss.

 

Islamic Finance is as old as the pyramids.

Sukuk & Islamic Law

Market forces, supply and demand, motivation for profit and private ownership are the same.

 

In a capitalist market the profit motive and private ownership are given unlimited power to make economic decisions. If there are any restrictions they are imposed by human beings and always subject to change through legislation. Profit is an important factor and not how that profit is derived, such dealings of making huge profits by banks is actually possible without actually providing a socially justifiable service or producing any tangible product e.g. the trading in derivatives, such methods are controlled by divine laws in an Islamic system. History has shown this to be socially irresponsible e.g.  Black Monday with only a few making huge profits at the expense of others, credit crunch, BNP and Northern Rock catastrophes.

 

In an Islamic economic system, private ownership, profit motive and market forces are recognized. In addition Islam has laid down restrictions on economic activities which are decreed by the divine law and cannot be changed or removed by anyone. Prohibitions of riba (interest on loans), gambling, hoarding, socially irresponsible trading, speculative transactions and short sales are some examples.

Capitalist and Islamic Economies