Ijara is an Islamic finance concept that refers to the Islamic version of leasing. It is a bilateral contract between two parties: the lessor and the lessee. The lessor owns the asset and leases it to the lessee for an agreed period at an agreed rental. The lessee enjoys the benefit or usufructs of the asset/property at an agreed rental and period. The lessor is responsible for all major costs of the asset, such as insurance, while operational costs land on the lessee. At the end of the contract, the lessee may have the option to purchase the asset. Ijara is used in many situations where you would use car/home financing interest-based loans.

Islamic Treasury Bills are short-term securities issued by the government of Malaysia based on Islamic principles1. They are similar to conventional government securities in terms of their effective cash flows, issuance structure, legal status, and nature of transaction as financial products1. The difference is that Islamic Treasury Bills comply with Islamic principles in their issuance structure1. MITBs are usually issued on a weekly basis with original maturities of 1 year1. MITB auctions are held one day before the issue date1. If you have any further questions about Islamic Treasury Bills or would like to learn more about our financial services, please don’t hesitate to contact us.

Murabaha is an Islamic financing structure that allows for transactions without involving interest, which is prohibited in Islamic finance. It is a cost-plus financing arrangement in which the seller and buyer agree to the cost and markup of an asset. The markup takes place of interest, which is illegal in Islamic law. As such, murabaha is not an interest-bearing loan but is an acceptable form of credit sale under Islamic law. The purchaser does not become the true owner until the loan is fully paid. Murabaha is used in many situations where you would use car/home financing interest-based loans.

Mudaraba is an Islamic finance concept that refers to a partnership between two parties: the investor (Rabbul Mal) and the entrepreneur (Mudarib). The Rabbul Mal provides the capital, while the Mudarib manages the business. The profits are shared based on a pre-agreed ratio, while the losses are borne solely by the Rabbul Mal. Mudaraba is a form of trust financing and is used in many situations where you would use car/home financing interest-based loans. It is an acceptable form of credit sale under Islamic law and is used to provide capital to somebody undertaking the work.

Islamic Commercial Papers (ICP) are short-term debt instruments issued by corporations to fund their working and capital requirements on a short-term, roll-over basis. ICPs are issued based on the Shariah concept of Mudharabah and traded based on Bai Al-Dayn. The issuer of the ICP is the Mudharib, while the investor is the Rab-ul-Mal. The Mudharib invests the funds on behalf of the Rab-ul-Mal and earns a fee for their services. ICPs are similar to conventional commercial papers in terms of their effective cash flows, issuance structure, legal status, and nature of transaction as financial products. If you have any further questions about Islamic Commercial Papers or would like to learn more about our financial services, please don’t hesitate to contact us.

Money Market Instruments are short-term, low-risk investments that are highly liquid and can be easily converted to cash. In Islamic finance, money market instruments are based on the principles of Shariah law. Some examples of money market instruments include Islamic Treasury Bills, Islamic Commercial Papers, and Islamic Interbank Money Market Instruments. Investing in money market instruments can be a good way to earn a return on your investment while minimizing risk. However, it’s important to understand the risks associated with each type of instrument and to choose investments that align with your financial goals and risk tolerance. If you have any questions about money market instruments or would like to learn more about our financial services, please don’t hesitate to contact us.

Underwriting is a process in which an investment bank or underwriter guarantees the sale of a new issue of securities to the public. In Islamic finance, underwriting is done through the concept of Mudaraba. The underwriter acts as the Mudarib and invests the funds on behalf of the Rab-ul-Mal. The underwriter earns a fee for their services. The Mudaraba contract is based on the profit-and-loss sharing principle, which means that the underwriter’s return is not a fixed percentage but rather depends on the profit generated from the investments made by the underwriter. If you have any further questions about underwriting or would like to learn more about our financial services, please don’t hesitate to contact us.

Musharaka is an Islamic finance concept that refers to a partnership between two parties: the investor (Rabbul Mal) and the entrepreneur (Mudarib). The Rabbul Mal provides the capital, while the Mudarib manages the business. The profits are shared based on a pre-agreed ratio, while the losses are borne solely by the Rabbul Mal. Musharaka is a form of trust financing and is used in many situations where you would use car/home financing interest-based loans. It is an acceptable form of credit sale under Islamic law and is used to provide capital to somebody undertaking the work .

Manfa’a is an Arabic term that refers to the benefit or usufruct obtained from the use of a tangible asset or a service. In Islamic finance, Manfa’a is used in the context of Ijarah, which is the Islamic version of leasing. Ijarah is a bilateral contract between two parties: the lessor and the lessee. The lessor owns the asset and leases it to the lessee for an agreed period at an agreed rental. The lessee enjoys the benefit or usufructs of the asset/property at an agreed rental and period. Manfa’a is a transferable right and is typically transferred through Ijarah in return for a consideration (rental amount) .

Islamic Repo is a short-term, secured borrowing in Islamic finance. It is a Shari’ah-compliant repurchase transaction that provides efficient access to short-term funding, as well as giving Islamic financial institutions and corporates the ability to utilize their sukuk portfolios and other Shari’ah-compliant instruments in their liquidity management operations. The transaction is structured using a contract called a murabaha—a Shari’ah-compliant alternative of loans—that has been used for both secured and unsecured lending in the Islamic finance industry for many years. The underwriter acts as the Mudarib and invests the funds on behalf of the Rab-ul-Mal. The underwriter earns a fee for their services.

 Commodities are raw materials or primary agricultural products that can be bought and sold, such as gold, silver, oil, and wheat1. Investing in commodities can be a good way to diversify your portfolio and hedge against inflation2. Precious metals, such as gold and silver, are often used as a store of value and a hedge against economic uncertainty3. Our team of experts can help you navigate the complexities of commodity investing and identify opportunities that align with your financial goals and risk tolerance. If you have any questions about commodities or would like to learn more about our financial services, please don’t hesitate to contact us.

Stocks are financial instruments that represent ownership in a company. In Islamic finance, stocks must comply with Shariah law, which prohibits investments in companies that engage in activities such as gambling, alcohol and tobacco. Shariah-compliant stocks are screened by Shariah scholars to ensure that they meet the requirements of Islamic law2. Investing in stocks can be a good way to grow your wealth over time, but it’s important to understand the risks associated with each type of security and to choose investments that align with your financial goals and risk tolerance. If you have any questions about stocks or would like to learn more about our financial services, please don’t hesitate to contact us.