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    Islamic Financial Products Fin 310

    Uploaded by

    Sharif Haidari

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    © All Rights Reserved
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    Islamic Financial Products Fin 310

    Uploaded by

    Sharif Haidari
    3 views3 pages

    Original Title

    ISLAMIC FINANCIAL PRODUCTS FIN 310

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    3 views3 pages

    Islamic Financial Products Fin 310

    Uploaded by

    Sharif Haidari

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Islamic Products

    Masraf Al Rayan bank provides several kinds of Islamic products. Here we will present the most
    used and vital products and in the next section we will categorize and measure these products.

    The most important Islamic products of the bank are:

     Murabaha
     Ijarah
     Ijarah Muntahia Bittamleek
     Istisna’a
     Mudaraba

    Murabaha

    To the purchase orderer, the form of transaction that incorporates the customer's pledge to
    purchase the goods from the institution is referred to as Murabaha. This distinguishes it from the
    more common sort of Murabaha, which does not require the consumer to make such a pledge.
    Murabaha to the buy orderer refers to the institution's sale of an item to a customer (the purchase
    orderer) at a pre-agreed selling price that includes a pre-agreed profit margin over the item's cost
    price, as stipulated in the customer's pledge to purchase. Typically, a Murabaha to purchase
    orderer transaction entails the institution extending a Murabaha credit facility to the customer. A
    Murabaha to purchase orderer transaction often incorporates deferred payment terms, but this is
    not a necessary prerequisite of such transactions. A Murabaha can be arranged without payment
    deferment. In this situation, the mark-up will include only the profit earned by the institution on a
    spot sale, not the additional price for payment delay.

    Ijarah

    Ijarah refers to the leasing of property pursuant to a contract that provides for the acquisition of a
    specified permitted benefit in the form of a usufruct for a certain duration in exchange for a
    specified permissible fee.

    Ijarah Muntahia Bittamleek


    Ijarah Muntahia Bittamleek is one of the kinds of Ijarah that Islamic financial organizations
    employ. This is a type of leasing contract in which the lessor promises to transfer ownership of
    the leased property to the lessee either at the end of the Ijarah period or in stages over the
    contract's lifetime.

    Istisna’a

    Istisna'a is a contract for the sale of specified manufactured or constructed goods, with the
    producer or builder (contractor) obligated to deliver the goods to the purchaser upon completion.

    Mudaraba

    To comprehend Mudaraba, one must first define Sharika (Musharaka), which is an agreement
    between two or more parties to combine their assets or services, duties, and liabilities for the
    purpose of profit. The following characteristics distinguish a Mudaraba contract from a Sharika
    (Musharaka) contract:

     The Sharika requires that all parties contribute capital, whether in the form of currency,
    commodities, services, or liabilities in the case of a reputation partnership, and that the
    contract be founded on a single factor, namely capital. Profitability in a Mudaraba, on the
    other hand, is determined by two factors. The first element is the presence of capital that
    is subject to and comparable to Sharika capital's criteria. The second component is the job
    performed by the Mudarib, which is distinct from the venture's funding.
     In Sharika, work is generally performed jointly by the parties, whereas in Mudaraba, the
    Mudarib performs the job.
    Quantifying each Islamic product in assets/liabilities/equity values.

    TOTAL ISLAMIC PRODUCTS ASSETS = 91,191,703 QAR

    TOTAL ISLAMIC PRODUCTS LIABILITIES = 5,208,266 QAR

    EQUITY

    Islamic Products ASSETS = Islamic Products LIABILITIES + Islamic Products EQUITY


    Islamic Products EQUITY = Islamic Products ASSETS - Islamic Products LIABILITIES

    Islamic Products EQUITY = 91,191,703 QAR - 5,208,266 QAR

    Islamic Products EQUITY = 85,983,437 QAR

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