UPDATE ISLAMIC FINANCE PART 3

Below are some of the contracts that are  used in the Islamic Financial transactions :

Transactional  Contract

1. Sales of Ownership   -  Property: Barter and Sale for Price (Bay') - Spot, Credit ( cost Plus - Murabahah )  and Bay' al Muajjal ( lump sum or instalment)  and Future Currency : Spot (sarf) and Debt (Hiwalah)
2. Sale of Right to use: Leasing  (ijarah)

Financing Contract

1. Trade Financing - Murabahah
2. Asset-Backed -ijarah / istisna'
3. Equity Partnership - Musyarakah

Intermediation Contract

1.  Partnership - Mudharabah and Musyarakah
2. Fee Based Services - Trust: Deposit (Wadiah), Custody (amanah),Representation (wakalah), Fee Based Service ( Ju'alah) and Security : Guarantee (kafalah) and Pledge (Rahn)
3. Insurance (takaful)

Social Welfare

1.  Gracious Loan ( tanpa profit - Qard al -Hassan)
2.  Trust ( waqf)

Distribution of "duit raya" and school bags to the children of Orphanage  Home in Seremban, N Sembilan.