Bai ( Buying & Selling) Presented by : Zubair Mughal CEO – AlHuda: Centre of Islamic Banking & Economics.

Slides:



Advertisements
Similar presentations
SALIENT FEATURES OF ISLAMIC FINANCIAL LEASE
Advertisements

At AlHuda CIBE Workshop.
ISTISNA AS MODE OF FINANCE
192 Ahmad Block, New Garden Town, Lahore - Pakistan.
PREPARED BY: MOULANA SHOAYB JOOSUB
SALE (Bai).
ISTISNA’.
Meezan Tijarah (Finished Goods).
Introduction to Ijarah Version 2.0 Release Date: Jamad ul Thani 31, 1430 H June 25, 2009 Prepared By: Product Development and Shariah Compliance Department.
Center of Islamic Finance COMSATS Institute of Information Technology Lahore Campus 1 Adopted from open source lecture of Dr. Muhammad Imran Usmani.
Center of Islamic Finance COMSATS Institute of Information Technology Lahore Campus 1 Adopted from open source lecture of Mufti Najeeb Khan.
Murabaha & Musawamah.
COMMODITY MURĀBAHAH And TAWARRUQ ASSOC. PROF. DR. AZMAN MOHD NOOR
THE CONCEPT OF IJARA Dr. Muhammad Zubair Usmani Sharia Advisor
CENTER FOR ISLAMIC ECONOMICSCENTER FOR ISLAMIC ECONOMICS International Conference on Islamic Finance & Banking 1 ISLAMIC SALES CONTRACT Dr. Muhammad Imran.
Sale Contract /Murabaha . Muhammad Najeeb Khan
WORKSHOP ON ACCOUNTING OF MURABAHA UNDER IFAS – 1
MBF707: Monetary and Fiscal Framework in Islamic Finance COMSATS Institute of Information Technology (Virtual Campus)
Introduction to Murabaha Version 2.0 Release Date: Jamad ul Thani 31, 1430 H June 25, 2009 Prepared By: Product Development and Shariah Compliance Department.
Introduction to Istisna’ Version 2.0 Release Date: Jamad ul Thani 31, 1430 H June 25, 2009 Prepared By: Product Development and Shariah Compliance Department.
Ijara Two Days Specialized Training Workshop On Islamic Microfinance
Essentials of Islamic Finance – IU Gulshan Campus, Slide # 1 Essentials of Islamic Banking and Finance IQRA University Gulshan Campus IRSHAD AHMAD AIJAZ.
Ministry of Rural Rehabilitation and Development Afghanistan Rural Enterprise Development Program Islamic Finance Product Development The Use of the Order-to-Purchase.
Islamic Modes of Financing Murabaha. Summary of the Previous Lecture In previous lecture we discussed the; Governing features of Islamic banking system.
Istisna’ NIBAF, SBP – Islamabad 7 – 8 March, 2008 Al – Huda Training Programme Muhammad Khaleequzzaman Head Islamic banking Department Int’l Islamic University.
Essentials of Islamic Banking and Finance
Islamic Modes of Financing Diminishing Musharakah.
IJARAH & ISSUES RELATEED TO IJARAH – DM & ISSUES RELATED TO DM By: Abdul Samad AlHuda Centre of Islamic Banking & Economics (CIBE)
Istisna Presented by: Muhammad Najeeb Khan (Shriah Advisor) in Habib Metropolatin Bank Islamic Banking Presented at AlHuda CIBE Workshop.
Center of Islamic Finance COMSATS Institute of Information Technology Lahore Campus 1 Adopted from open source lecture of Meezan Bank. Customized for best.
Salam & Istisna By: Abdul Samad AlHuda Centre of Islamic Banking & Economics (CIBE)
Islamic Trade Finance Murabaha: The Bankers’ Perspective Saleem Khan.
Islamic Financial Accounting Standard-1
SECURITIZATION By Dr. Muhammad Imran Usmani.
MURABAHA 1. 2 COMPONENTS OF VALID SALE SALE CONTRACT SUBJECT MATTER PRICEPOSSESSION Offer/Acceptance Buyer/Seller Existence Ownership Possession Valuable.
Islamic Modes of Financing Salam
MBF707: Monetary and Fiscal Framework in Islamic Finance COMSATS Institute of Information Technology (Virtual Campus)
Islamic Modes for Agricultural Financing PRODUCTS – Diminishing Musharakah Lahore 20 – 21 October, 2008 Al – Huda Training Programme Muhammad Khaleequzzaman.
(sale on deferred payment basis)
Murabahah. Murabahah:  “Murabahah” is a term of Islamic Fiqh and it refers to a particular kind of sale having nothing to do with financing in its original.
CHAPTER# 6 ISLAMIC MODES OF FINANCING
Islamic Banks in the System of National Accounts Omar Hakouz Regional Advisor on National Accounts 10th AEG meeting on national Accounts April 2016,
Islamic Trade Finance Murabaha By Faraz Younus Bandukda Manager, Research and Product development Al Meezan Investment Management Limited.
Why do we need Islamic Economy – Equal distribution of Income.
Islamic banks. Submitted by We knew already that commercial banks rely on attracting deposits and funds to run a predefined interest, deposits for the.
Sukuk Bonds. Basics of Sukuk Sukuk is popularly known as an Islamic or Sharia compliant ‘Bond’ whilst in actual fact, it is an asset- backed trust certificate.
Lecture 5 MURABAHAH 1. Overview 2 What is Murabahah? Rules of Murabahah How Does Murabahah Work? Security and Guarantee Difference between Murabahah and.
FINA: Special Topic In Finance
Table 1. The main products of Islamic Banks
SECURITIZATION By Dr. Muhammad Imran Usmani.
SALAM.
Essentials of Islamic Banking and Finance
The Principles of Islamic Banking
Islamic Banking and Finance Products
Providing Smart Microfinance in Palestine
Bai’ SALAM.
SALAM.
ISTISNA.
Compliance of Shariah Principles in Banking Transactions
SECURITIZATION By Dr. Muhammad Imran Usmani.
PREPARED BY: MOULANA SHOAYB JOOSUB
At AlHuda CIBE Workshop.
Istisna Presented by: Muhammad Najeeb Khan (Shriah Advisor) in Habib Metropolatin Bank Islamic Banking Presented at AlHuda CIBE Workshop.
At AlHuda CIBE Workshop.
SALAM Fiqh ul Muaamalth – II IAIB 3101 Lecturer in chargr RA
Ali Sheikh Mohamed Omar Abdirahman Mohamed Hassan.
Group(B) members Abdirahman Addow Hassan Abbas Abdulkarim Mohamed
ISLAMIC ECONOMICS PROJECT
ISLAMIC ECONOMICS PROJECT
ISLAMIC ECONOMICS PROJECT
Presentation transcript:

Bai ( Buying & Selling) Presented by : Zubair Mughal CEO – AlHuda: Centre of Islamic Banking & Economics

Basic Rules of Bai Existence of Product/Commodity Ownership of Product/Commodity Possession of Product/Commodity

Basic Rules of Bai Unconditional basis Product have value/Price. Bai on Such product which is permissible in Islam.

Basic Rules of Bai Product Must be Identify, clear with all demanding Qualities. Not based on any incident, struggle etc Price must be clearly identified.

Bai (Buying & Selling) Basic Kinds of Bai

Kinds of Bai Bai Musawamah Bai Murabaha Bai Surf Bai Salam Bai Istisna’ Bai Urboon

Basic Kinds of Bai Bai Eenna Bai Touliya Bai Wadhia

Bai There are three basic type of Bai’s which are using in Islamic Banking as the mode of financing in Pakistan Murabahah Salam Istisna’

Murabahah Basically, it’s not a mode of financing but a source to avoid interest Dealing It’s not a type of loan, but a deal (Bai) Murabahah can be used as source of financing when client needs funds to purchase any product/Machinery etc.

Murabahah Sharing of Risk of loss differentiate Murabahah from the interest category Product Must be bought from third party for avoid buy back transaction Roll over is not Valid in Murabahah If actual cost can not be identified then Murabahah deal not possible.

Bai Important Note Following 3 Basic Rules of Bai are exceptional for Salam & Istisna’ Existence of Product/Commodity Ownership of Product/Commodity Possession of Product/Commodity

Salam Pay 100% amount in Advance. Product must be quantified, identified and Measured with quality. Date of delivery, Time, Place must be mentioned clearly in advance. Salam is not valid for a specific farm/land/garden.

Istisna’ Not necessary to pay the 100% amount in advance Like Bai salam. Price must be decided on beginning of the contract. Qualities, features of that product must be clearly identified.

Bai Differences Between Istisna and Salam

Istisna deal with manufacturing items, but Salam could or could not be manufacutred, but salam ideal of agriculture sector. In salam advance payment is necessary, but in Istisna’ its not.

Differences Between Istisna and Salam Date, time of delivery the necessary part of Bai Salam, But in Istisna, it is not the part of the deal. In Bai salam, it can be cancelled one sided, but in Istisna, it could be cancelled, if production is not started yet.

Type of Bai according to Quality Bai Salah Bai Fasid Bai Batil Bai Maqoof

Type of Bai according to Quality Bai Majool Bai Muqayaddah Bai Mu’ajal

Thank you