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TOPIC:
Presented By:
ISLAMIC
FINANCING
Ammar Ikram
Abdul
Islamic financing refers to the means by which corporations in the Muslim world, including banks and other lending institutions,
raise capital in accordance with Sharia, or Islamic law. Sharia law prohibits- Riba and Investment in Haram businesses.
CONVENTIONAL BANKING
The functions and operating modes of
conventional banks are based on fully
manmade principles.
It does not deal with zakat.
The investor /lender is guaranteed of a
predetermined rate of interest or returns.
2.
Characteristics:
Both share profit in pre-agreed ratio.
Loss is borne by Rab al Mal only, Mudarib loses
his services.
2.