Islamic Finance Fundamentals With Applications in Malaysia

Author: Shahriza Osman, Zahiruddin Ghazali & Syed Mohd Na’im Syed Salim
Publisher: UUM Press
ISBN: 9789670876726
Weight: 0.205kg
Page: 110
Year: 2016
Price: RM28

Islam postulates a unique link of contracts among the creator, man, and society on the basis of Syariah law that directly affects the workings of the various social, political, economic, and financial systems. Therefore, to understand the way in which economic affairs and financial institutions are organized in an Islamic system, it is first necessary to comprehend the nature of this relationship. Consequently, one cannot study a particular aspect or part of an Islamic system, economics, for example, in isolation, without having an understanding of the basic knowledge of Islamic finance.

Islamic finance products are contract-based. This book explains Islamic finance, which refers to the provision of financial services in accordance with Syariah law in chapter one. The Syariah law is the foundation for the establishment of an Islamic banking system. Chapter two illustrates the differences between the principles of Syariah and Tabii’. Chapter three explains the Islamic theory of profit. Chapter four is about risk and uncertainty, which is known as 'gharar' in Islamic finance. Chapter five discusses interest/riba, which is the most significant principle of Islamic banking. Chapter six explains some of the financial issues related to Islamic banking.