#2 Types of Islamic Finance - ACCA / CPA / SFM -By Saheb Academy

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.
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• #1 Principles of Islam...
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[@anirudhj571]

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!!!

[@Aaqib98765]

Kis exame me iske bare mein question aaya tha

[@niraj7921]

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

[@sitiazlina1614]

Thank you so much

[@yusufathman2478]

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.

[@electrofiedgaming7102]

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.❤

[@SudhanshuHACKER]

Someone is making real information on the Web. Thanks a lot bro. 💯👌

[@DBSJ18forever]

Thank you so much for the video. Hopefully you'll do more for the ACCA exams!!!

[@gulnazfathima2758]

After seeing this video only i realised that there is a islamic finance in this world

[@QuranTheWay]

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.

[@y_p7]

May Allah reward you Jannah, such a nice and clear explanation.

[@arififtekharrabbi8277]

MaSha'Allah. Very well explained 👍👍👍

[@sirtajwazir967]

Amazing really enjoy proud on your teaching teachniques

[@hennawithrehana02]

MashaAllah Amazing explaination!! Looking forward for more such videos😊

[@hanifbillah]

Thanks for your video on Islamic Finance.

[@MrWasphantom97]

Thank you so much, this is by far and away the best and clearest explanation of Islamic finance I've encountered

[@mehboobrehman01]

Wonderful explanation, thank you sir!

[@user-no3lu8ex6n]

MashaAllah Amazing explaination!! Looking forward for more such videos

[@bushrajabeen2670]

So well explained. Thankyou it's really helpful.

[@anonymoussoul7319]

JazakAllahu khaira!

[@craftsnthings8438]

May Allah bless you. Well explained and very informative.

[@tabindajadoon4909]

This was so amazing easily understandable and very helpful

[@rajabconstructionco.9973]

Mashaallah very nice helpful valuable video jazak Allah hu khair Thanks you sir 🇮🇳 india

[@sarahnabaa8697]

Amazing explanation mashallah easy to understand

[@SIY...]

Thank u so much brother this video really helped me a lot in understanding these topics Jazakallah.

[@sohaibakbar1174]

Jazak'Allah

[@ReactionByFaris]

Excellent Explanation

[@cynthiaakinyiosuri6432]

well explained! Thank you

[@zoroluffy355]

It's more deep, so please more videos of this topics

[@jakobalincola7033]

Nice Video Sir And Thanks u So Much

[@ZainabAzhar-rv4em]

Well explained

[@abdullahabduljalal131]

جزاك الله خيرا

[@sumonpaul9407]

Really nice class 👏

[@mohammadsaleeth704]

Well explained sir

[@mikej8678]

Awesome video!

[@ssss-bm3hp]

Need more videos in islamic finance ..plz do upload sir ... Sir I request you to teach us zakat calculations and also calculation of inheritance law ..plz consider my comment...may allah grant us ease... jazakallahu khairen

[@birdbird5220]

very helpfull thanks

[@mamatube4118]

Mashallah keep it up

[@hamzaali2153]

Superb guy

[@KhadijaAli-wg6fu]

Thank you soo muCh sir

[@naziyaparveen6652]

Helpful I was confused before open Finance work

[@seidyimam641]

it is interesting topic

[@hijasnasar4003]

We are waiting for next video regarding Islamic finance.

[@hubertsmith_larbi6397]

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?

[@randomfusion9562]

Sir sukuk is basically a preference share if you see in our. Conventional financial system ?

[@Shabu._said]

❤

[@TINYMINI-170]

Plant Assets, Natural Resources, and Intangible Assets WANT VEDIO ON THIS

[@mmchoice5786]

❤❤❤❤

[@durvakshikhamkar4207]

Sir thanx for providing free lec.......you are the best sir

[@TheWanderingMonk_]

Is there any Hindu finance

[@iqranaseer7173]

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?

[@TINYMINI-170]

SIR, PLEASE SHARE NOTES THAT YOU MAKE DURING LECTURES ON ACCOUNTING AND BUSINESS ECNOMICS

[@imrangori6239]

Any one can guide me that is sukuk and share in company is same? share buying is allowed in islamic finance?

[@ynpinformative8424]

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..

[@mdimroz8259]

Hi sir I want to do US Cma.. Please upload video on courses like cpa,uscma,cfp,cwm

[@SarahBhaya]

Please add more content here

[@MRAadil-kr5hg]

How will SUKUK bonds work on developmental projects?

[@wajidanjum8188]

Yaaah

[@gulshanhussain5521]

Sir cost accounting(overhead pls)

[@EconomistsMUFID]

Saheb can u make video on diluting and distributing.

[@aneeshshaw1036]

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

[@Witnesser6]

Yes sir please

[@mintu8232]

Sir, could you plz explained about cash flow forecasting in acca fm paper.. Plz...

[@hameedkhan-qe1kd]

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?

[@syedhassanali5538]

But how will bank earn in that?

[@user-fi3mw8ik1z]

whats different between Jewish finance and islamic finance most Muslim counters still deal with Jewish finance

[@ijazhussain8318]

Sir pls upload video on costing

[@SahebAcademy]

Ok sure.

[@amidsherefa7976]

It is good explanation but my question is what is the role of Islamic bank in the case of musharakah

[@bittukhan1507]

You can use money to make money but you can't use interest. There's big difference, don't get confused

[@adityaa473]

Sir 5th SEM bcom

[@SahebAcademy]

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.

[@adityaa473]

@@SahebAcademy thank you very much *_Sir_* 🔥

[@SahebAcademy]

#1 Contract Costing - Concept & Format kzbin.info/www/bejne/fmHUY6R3dtOomKs

[@zerma6]

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 .

[@shekujalloh551]

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

[@usmanmudasser5359]

Watch his first video in this series. In islamic financing principles, you can not make money from money. This is interest.

[@syedyahya2108]

You didn't explain Wakala.

[@rahat8280]

How do you know that music industry is forbidden? If it is Islamic music industry?

[@MohsinKhan-xs9og]

❤