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

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Presentation on theme: "Why do we need Islamic Economy – Equal distribution of Income."— Presentation transcript:

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

2 Islamic Financing Loan to help Profit / Loss Sharing

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

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

5 Basic Mode of IF Mudarabah Musharakah

6 Others Salam Istisna Ijarah Murabahah

7 Islamic Banking Main Goals Criticism

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

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

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

11 Is it possible to dissolve Musharakah without dissolving Business Yes

12 Mudarabah Profit Distribution Right to Dissolve Suitable for Project Financing

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

14 Use of Musharakah Import and Export Financing Working Capital

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

16 Diminishing Musharakah House Financing Transportation Ready Made Garments

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

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

19 Thank You End


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