#2 Types of Islamic Finance - ACCA / CPA / SFM -By Saheb Academy
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- Опубліковано 26 лип 2024
- In this video I have explained 5 popular contracts or types of Islamic Finance
with examples and illustrations.
⏱TIMESTAMPS
0:00 - Intro
0:12 - Fast Recap of Concept
3:27 - Mudaraba
6:24 - Musharaka
8:33 - Sukuk
12:30 - Ijarah
16:04 - Murabaha
This video is relevant for ACCA F9 Financial Management students, Strategic Financial Management (ICAI) and also for CPA students.
After watching this video your will feel this topic is very easy.
Previous - #1 Principles of Islamic Finance
• #1 Principles of Islam...
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A great thanks to this video!! I just saw this video, just before 30 mins of my exam, and to my luck, a theory question was asked on Islamic finance!✨ much relieved!!!
Kis exame me iske bare mein question aaya tha
Need more videos in this series, or atleast share some sources where we can find information and education about this.
Mashallah this is Sadqa e Jariah.❤
I am an economists.. i would like to venture to this type of finance in shaa allah for the benefit of hereafter.
Murabaha is the best♥️
Jirani Smart in Kenya is practising this.
Someone is making real information on the Web. Thanks a lot bro. 💯👌
The forms of Contract allowed (Types of Products or services offered by the banks)
1. Mu da raba - partnership
2. Mus haraka - equity partnership
3. Su kuk - Islamic Bond
4. Ija rah - a from of lease
5. Mu ra baha - a form of Credit sale
1. Mudaraba
It is a partnership transaction where
- 1 party supplies the money (100% capital), this party is called "rab-all-maal"
- The other party provides management expertise (Skills), "this party is called "Mudarib"
- In order to undertake a spefic trade
- Resultant profit - is shared on pre-decided ratio
- Resultant loss - shall be borne by the Financer ie. by "RAB-ALL-MAAL". WHY? it is argued that Mudarib does not have money so he brought the skills only, so he shall not be penalised.
However, if there is loss due to the gross negligence or fraud or guilty or misconduct on behalf of Mudarib then the loss shall be borne by Mudarib. Othewise, generally the entire loss is borne by "Rab-all-maal"
2. Musharaka
It is a joint enterprise or
partnership structure where at least two parties or more bring capital and skills.
Every one can bring the capital and skills.
Every one can participate in the management or can be a sleping partner also. It is at their option.
Musharaka is different from Mudaraba in profit or loss sharing.
Resultant profit - is shared on pre - decided ratio
Resultant loss- is shared in the capital contribution ratio
3. Sukuk
Bonds that are structured in such a way
- as to generate returns to investors
- without infringing islamic law that prohibits interest that prohibits the interest
It aims at "profit sharing" by offering the investors, ownership in business and assets.
Steps involved
Step 1 - a company issues Sukuk
Step 2 - investors subscribe the Sukuk bonds
Step 3 - company receives money and appoints the Sukuk Manger to manage Sukuk Bonds
Step 4 - Company will procure or invest in assets
Step 5 - Company will give ownership of assets to the Sukuk Holders
Step 6 - The income earned from that assets is shared to the Sukuk Holders (the participation in the profit)
Step 7 - The benefit and risks is shared by the Sukuk Holders
So, unlike the conventional bonds, Sukuk are linked to an underlying tangible assets
4. Ijarah
An ijarah transaction is the Islamic equivalent of a lease where one party (lessor) allows another party (lessee) to use their asssets against the payment of a rental fee.
Steps involved
Step 1 - An individual needs a car.
Step 2 - Bank purchases car based on Ijarah agreement and initial payment of installment and "Rentals agreed hereonly"
Step 3 - Bank pays in a one go to the car dealer/manufacturer
Step 4 - The ownership of car remains with the bank
Step 5 - The car is delivered to the individual
Step 6 - At end of the lease period the bank gives the option to the individual either to return the car or to buy car based on the new contract
Step 7 - Major Maintenance work is carried by Bank as the ownership is with the bank
5. Murabaha
A murabaha transaction is a
deferred payment sale or
on installment credit sale
and
is mostly used for the purchase of goods for immediate delivery on deferred payment basis.
Step 1 Individual needs to buy assets, with low amount in hand
Step 2 Enter Murabaha contract with bank
Step 3 Bank will sell the assets on mark up to the individual (Cost + Profit)- this will be disclosed
Step 4 Individual will pay in Installment
Thank you so much
Thank you so much for the video. Hopefully you'll do more for the ACCA exams!!!
After seeing this video only i realised that there is a islamic finance in this world
May Allah reward you Jannah, such a nice and clear explanation.
MashaAllah Amazing explaination!! Looking forward for more such videos😊
Thank you so much, this is by far and away the best and clearest explanation of Islamic finance I've encountered
MaSha'Allah. Very well explained 👍👍👍
MashaAllah Amazing explaination!! Looking forward for more such videos
Amazing really enjoy proud on your teaching teachniques
JazakAllahu khaira!
So well explained. Thankyou it's really helpful.
Thanks for your video on Islamic Finance.
Good Lecture to learn the terms and Islamic banking basic. but Islamic banking is always bound by KIBOR and in long term finance SBP polices which are same for all. It is just name because it ends in fractional Banking by central bank.
Wonderful explanation, thank you sir!
May Allah bless you. Well explained and very informative.
Mashaallah very nice helpful valuable video jazak Allah hu khair Thanks you sir 🇮🇳 india
This was so amazing easily understandable and very helpful
Thank u so much brother this video really helped me a lot in understanding these topics Jazakallah.
Jazak'Allah
Well explained
well explained! Thank you
Nice Video Sir And Thanks u So Much
Amazing explanation mashallah easy to understand
جزاك الله خيرا
Well explained sir
It's more deep, so please more videos of this topics
Excellent Explanation
Really nice class 👏
We are waiting for next video regarding Islamic finance.
Awesome video!
very helpfull thanks
it is interesting topic
Mashallah keep it up
Superb guy
Helpful I was confused before open Finance work
Thank you soo muCh sir
Sir sukuk is basically a preference share if you see in our. Conventional financial system ?
Question: at the end of the lease period, if the lessee returns the asset, will he be given the rent back?
If the lessee buys the asset, what money does he pay? The previous amount at the time of the purchase or the current value of the asset? Will the rent be counted in the final payment or not?
Hi sir I want to do US Cma.. Please upload video on courses like cpa,uscma,cfp,cwm
❤
SIR, PLEASE SHARE NOTES THAT YOU MAKE DURING LECTURES ON ACCOUNTING AND BUSINESS ECNOMICS
❤❤❤❤
Plant Assets, Natural
Resources, and
Intangible Assets WANT VEDIO ON THIS
please i have a question
so with the Ijarah, the example you cited when the person is done with the leasing period and he or she wants to buy or rent the car, does he/she pay another money for rental or what?
Sir thanx for providing free lec.......you are the best sir
Is there any Hindu finance
Sir, could you plz explained about cash flow forecasting in acca fm paper.. Plz...
How will SUKUK bonds work on developmental projects?
Sir cost accounting(overhead pls)
Yaaah
One thing need to clear, how Islamic Bank dealing with cash advance we are taking thru Islamic Bank's credit card? Which type of this transaction called?
Please reply sir..
Hello brother it will be great if you start with acca papers bro please it's a request. I hope you can do that too for acca aspirants
Yes sir please
Any one can guide me that is sukuk and share in company is same? share buying is allowed in islamic finance?
Please add more content here
Saheb can u make video on diluting and distributing.
Sir, I have plz read my problem and give me a solution.
I want to invest in small businesses like tea shops, etc.
Plan ye hai k shop walay ko Rs 50k du and return mein first 4 months mein 25% means 12k shop walay se lu jo 4months baad 50k return ho jaiga investment. Next months se 12k (25%) k bajaiy 12% means 6k lu and so on. Baaqi k 6k shop walay ko du tha k wo bhi benefit Le sakay bcz it's a small business. Isi Tarah area k saray shops mein Thora Thora investment karna Chahta hu. Loss se bachnay k Liye 6k monthly wesay bhi Le Raha hai tho hamain UN k loss se dur rehna.
Plz give mein answer of my questions.
1-Kya ye plan possible halal hai?
2-If no than why?
3-If loans Le and invest karay, Baad mein loan wapis kar de 4months and ud k Baad Jo income ayegi wo halal hogi or nhe?
It is good explanation but my question is what is the role of Islamic bank in the case of musharakah
But how will bank earn in that?
whats different between Jewish finance and islamic finance most Muslim counters still deal with Jewish finance
Sir pls upload video on costing
Ok sure.
Sir 5th SEM bcom
Yes very soon I will upload process and contract costing chapters...I don't have the book with me right now so I have ordered on amazon and it will be delivered within few days.
@@SahebAcademy thank you very much *_Sir_* 🔥
#1 Contract Costing - Concept & Format
ua-cam.com/video/H0q2qAAnubI/v-deo.html
You can use money to make money but you can't use interest. There's big difference, don't get confused
I believe the ijarah is probably not halal in the way you present it . The fact there is no defined end but it can be bought or return introduce the “1 contract 2 outcome” that I believe is not acceptable .
Murabaha..is it not a kind of interest
Or is Profit allowed in Islam??
Cuz if the bank buys the car for $100 and sells it for $120 then is the $20 profit not the same as interest. If I borrow you $100 and ask you to pay me $120 is it not the same thing
Watch his first video in this series. In islamic financing principles, you can not make money from money. This is interest.
You didn't explain Wakala.
How do you know that music industry is forbidden? If it is Islamic music industry?
❤