The Growth of Sharia Banking in AsiaFiqh, Islamic banking, Sukuk

Factors Considered By Islamic Banks When Designing Islamic Banking Products/Services. Case Study of Selected Islamic Banks in Malaysia.Islam, Islamic banking, Musharakah, Shariah, Takaful, Zakat, Participation

Infrastructure Financing through Islamic Finance in the Islamic CountriesAmanah, Fiqh, Gharar, Halal, Islam, Islamic banking, Mudarib, Murabahah, Musharakah, Nisab, Riba, Salam, Shariah, Shariah compliant, Sukuk, Takaful, Tawarruq, Waqf, Zakat, Usufruct, Credit Risk, Ijarah Contract, Al-mal, Mark-Up, Participation, Provision, Reserves

By now the world has heard of the most profitable “corporate Empire” and its successful bond issuance. Aramco is in a league of its own when we compare its financial metrics with supermajor oil companies (Saudi Aramco made a net profit last year of $111 billion, more than five times that of Exxon Mobil Corporation (rated AAA)). Aramco's balance-sheet carries all the characteristics of AAA rated firms but the actual rating is A1:"Saudi Aramco has many characteristics of a Aaa-rated corporate, with minimal debt relative to cash flows, large scale of production, market leadership and access in Sa...

Financing as per the Shariah is not loan or interest based, but it is instead asset based and provided through Sale based contracts (Murabaha, Salam and Istisna), Lease based contracts (Ijarah and its variations) and Sharing contracts (Mudarabah-profit share/loss borne by owner of capital, Musharakah-profit share/loss borne to extent of capital ownership, Muzara'a-revenue share). The above-mentioned contracts thus create the uniqueness in the taxation of Islamic financial products compared to conventional financing products.I will simply highlight below some of the possible technical tax iss...

In part 1 (which can be read HERE), we started to look at how a Murabaha share financing structure would work. In part 2 (HERE) we completed the structure and also started to look at what it means to involve real assets - in this case, shares.As a recap, this is the structure that we ended up with:In reality, the structure used by any specific bank for Murabaha share financing may differ from this, however from my experience this is not often the case. If there is any departure from this, it will not be meaningful.Once we concluded that we needed the 3 parties working together in this manner,...

Liquidity creation and bank performance: evidence from MENAIslamic banking, Credit Risk

Islamic Banking System: A Credit Channel of Monetary Policy – Evidence From an Emerging EconomyIslamic banking, Shariah, Reserves

Waqf-based Crowdfunding: A Case Study of waqfworld.orgIslam, Sadaqah, Shariah, Ummah, Waqf, Zakat

Analysis of Macroeconomic and Bank-level Determinants of Liquidity of Islamic Banks in Malaysia