Why do we need Islamic Economy – Equal distribution of Income.

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Presentation transcript:

Why do we need Islamic Economy – Equal distribution of Income

Islamic Financing Loan to help Profit / Loss Sharing

Some Principles Full faith on Quran and Hadith Islam explain the main Principles Limitation of Human Being

Capitalism Vs Islamic Economy Asset Backed Financing Money only Medium of Exchange IF based on illiquid assets Capital Vs Entrepreneur

Basic Mode of IF Mudarabah Musharakah

Others Salam Istisna Ijarah Murabahah

Islamic Banking Main Goals Criticism

Musharakah ( Sirkat) Partnership on Possession ( Obligatory) Partnership on Possession ( Voluntary) Contractual Partnership ( Capital) Contractual Partnership ( Labor) Contractual Partnership ( Goodwill)

Basic Rules of Musharakah Capable to make contract Profit Distribution Profit Rate Loss Conclusion

How to dissolve Musharakah Becoming in capable to continue contract If anyone die By giving notice

Is it possible to dissolve Musharakah without dissolving Business Yes

Mudarabah Profit Distribution Right to Dissolve Suitable for Project Financing

Securitization of Musharakah Possible but assets must be converted from cash to physical assets

Use of Musharakah Import and Export Financing Working Capital

Arguments against Musharakah & Solutions Risk of Losses Some People are not Honest Borrowers are not interested

Diminishing Musharakah House Financing Transportation Ready Made Garments

Murabahah Not only Deferred Payment May be in Cash Cost and profit or margin disclosure mandatory

Strict Conditions for Murabahah Goods must be exist Seller got Possession Direct or Indirect Posse ion i.e. seller taking risk.

Thank You End