Islamic Financial Markets

Islamic financial markets uphold the important role within the Islamic financial system as conduits of funds between surplus fund units (SFUs) with deficit fund units (DFUs) within the interest-free realm of Shari'ah, thus distinguishing itself from conventional markets that operate on the basis of interest. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Islamic Banking

Deposit Insurance Scheme
Authorizing the Buyer to Act as the Seller’s Agent in Buying from the Exporter and Selling to Himself
إجراء عمليات الشراء الآجل للعملات الأجنبية (Forward)
استثمار أموال البنك في الأسهم والعقارات
بطاقة الائتمان الإسلامية وفقاً لصيغة القرض الحسن
Murabahah Debt Restructuring with Central Banks as Guarantor
Murabahah Structure
Murabahah With Exporting And Importing Companies
احتساب نتائج المشاركة
Resolution No. 139 (5/15): Credit Cards
Resolution No. 136 (15/2): Al-musharakah Al-mutanaqisah And Its Shari’ah Rules
How Can Parallel IstiÎnÉÑ Be Structured?
Are Operational Leases and Finance Leases Both Considered Valid Lease Agreements?
What is the Ruling on a Lease Agreement That Culminates in Ownership?
Clarifications on Some Conditions of Partnership
Taking Bonds or Bills as Payment for Debts
Can an Investor Withdraw from an Investment Project before Its Term?
Is It Allowed to Use LIBOR as a Benchmark?
What is the Investment Procedure in Case an Investment Savings Account is Opened in a Foreign Currency?
Is a Guarantee against any Defect in the Product of Istisna‘ Allowed?
What Are the Rulings of Establishing a Real Estate Portfolio?
Is it Permissible to Enter in a Salam Contract for a Third Party?
What are the Shari‘ah Conditions for a Musharkah?
Resolution No. 129 (14/3): Contractor Agreements and Construction Contracts
What are the Rulings of the Investment Agency Contract?
What are The Shari‘Ah Rulings on the Stipulation in Wakalah Contract?
Is it possible to enter into a Shari’ah-compliant financial agreement with the Turkish government by purchasing the usufruct of their assets?
Is it possible for a separate company that is rated by an agency like S & P to play the role of a reputable bank in issuing a pledge in a Murabahah operation?
What is the Shari’ah compliant way to structure the purchase and lease of two airplanes?
Is it allowed to adopt templates to enter into Tawarruq transactions with a select group of international banks and financial institutions?
Is it allowed to buy a telecommunication services from a mobile service provider and then lease it to its clients?
Is it permissible to enter into Murabahah investment deals using an investment Wakalah agreement?
What is the opinion on the proposed Tawarruq financing by KFH Malaysia?
Is it permissible to conduct an international murabahah agreement for repeated deals on metals worth 250 million Kuwaiti dinars for a period of 5 years?
Is it permissible to form murabahah contractual agreements with different timeframes and a separate contractual agreement with each deal?
What’s Your Opinion Regarding the Treatment of a Composite Lease as a Loan by the US Internal Revenue Service (IRS)?
Is it Allowed to Participate in a Lease Contract That Contains a Clause which Contravenes the Laws of Shari’ah?
What is the Fatwa Committee’s Opinion of this Structure of Establishing a Fund for Leasing Out Airplanes?
What is the Ruling on This Proposed Structure of ijarah muntahiyah bi al-tamlik for Lands or Real Estates?
What is the Fatwa Committee’s Opinion on the Enclosed Copy of an ijarah muntahiyah bi al-tamlik Agreement?
Is It Permissible to Provide ‘educational murabahah’ as a Humanitarian Service that Will Aid in Developing Kuwaiti Families?
What is the Fatwa Committee’s Opinion Regarding the Enclosed Model for ijarah muntahiyah bi al-tamlik Agreement that KFH-Bahrain Desires to Use?
What’s the Fatwa Committee’s Opinion Regarding the ijarah muntahiyah bi al-tamlik Agreement for the Vacant Land?
What is the Ruling on Leasing a Building to the Owner of the Building’s Land?
Is It Allowed to Terminate the Contract of BBA That Began To Give Effects of Ownership to Enter in a New BBA with the Same Customer?
Application of al-Ijarah thumma al-Bai` in Vehicle Financing
Assignment of Liabilities in al-Ijarah thumma al-Bai`
Ownership Status of Ijarah Asset
Termination of Ijarah Contract
Absorption of Costs Associated with Ownership of Asset in Ijarah
Deposit Payment in Islamic Hire Purchase
Project Financing Based on Istisna` with Pledging of Conventional Bond
Application of Mudarabah Contract in Current Account Product
Financing Products Based on Musyarakah
Deposit Product Based on Tawarruq
Financing Product Based on Tawarruq
Sukuk Ijarah and Shariah Compliant Shares as Underlying Asset in Tawarruq Transaction
Application of Wakalah bi al-Istithmar in Deposit Product
Two Forms of Ibra’ in a Financing Agreement
Spot and Forward Foreign Currency Exchange Transactions
Forward Foreign Currency Exchange Transaction Based on Bai` Mu’ajjal
Foreign Currency Option Based on Hamish Jiddiyyah, Wa`d and Tawarruq
Foreign Currency Option Based on Wa`d and Two Independent Tawarruq Transactions
Islamic Credit Card Based on Bai` `Inah and Wadi`ah
Current Account Product Based on Wadi`ah Yad Dhamanah and Mudarabah Contracts
Deposit Product Based on Mudarabah and Qard Contracts
Deposit Product Based on Wadi`ah and Mudarabah Contracts
Financing Product for House under Construction Based on Istisna` Muwazi, Ijarah Mawsufah fi al-Zimmah and Ijarah Muntahia bi al-Tamlik
Development of a New Contract in the form of MurÉbaÍah Partnership Along with the MurÉbaÍah Transaction to the Purchase Orderer
What's the Shariah Opinion Regarding the Proposed Amendments to the Diminishing Musharakah Contract Concerning the Period and Iqalah?
Murabahah to the Purchase Order Framework After Amendments
Diminishing Musharkah Framework After Amendments
What's the Shariah Opinion Regarding the Purchase of Vehicles from Suppliers in Order to be Sold to Clients on the Basis of Murabahah?
What's the Shariah Opinion Regarding the Purchase of Household Equipments from Suppliers in Order to Be Sold to Clients on the Basis of Murabahah?
Mudarabah Contract Framework After Amendments
Is it Allowed for the Bank to Purchase Machinery in Order to be Leased Out for a Specified Period in Exchange for an Annual Rent Agreed Upon Between the Bank and Lessee?
What's the Shariah Opinion Regarding the Financing of Vehicles and Houseshold Equipments?
Investment Account Framework After Amendments
Term Account Framework After Amendments
Qard Hasan Framework After Amendments
Is it a Condition in a Vehicle Financing Based on Murabahah to the Purchase Order that the Vehicle Must Be Registered Under the Bank Name Before the Execution of the Contract?
What’s the Fatwa Committee’s Opinion on the Following Musharakah Structure?
Is it Allowed for KFH in Collaboration with Citibank to Finance the Construction of a Highway in Turkey?
Terms and Conditions as the Minimum Requirements for Mudarabah Contracts Set By the Central Bank of Bahrain
What’s the Shariah Opinion Regarding the Investment Agency Contracts Used By KFH-Bahrain and KFH-Kuwait?
Commodity Murabahah (Tawarruq) Frameworks to Be Used with Selected International Banks and Financial Institutions
Investment Agency Agreement Framework
What’s the Shariah Opinion Regarding Building Villas by KFH on a Land Owned by the Bank in Order to Be Sold to Customers Through Difference Methods?
What’s the Shariah Opinion Regarding the Islamic Credit Card Project?
RESOLUTION No. (50/1/6): 'REAL ESTATE FINANCING'
Client Guarantee for Commodity Soundness in Murabahah Transactions
Modes of Participation between Banks in the Murabahah Contracts
قواعد وأحكام بيع السلم
مراجعة هامش الربح وفق تغيير سعر العائد المصرفي السائد في السوق
شراء البنك آليات وتسجيلها باسمه وتأجيرها للغير
إبرام البنك عقدًا مع العميل للبيع بالوكالة
تمويل رأس المال العامل من خلال الوكالة بالاستثمار
المشاركة بعد شراء أسهم
تطبيق نظام الثواب والعقاب في المشاركة
منتج مشاركة متناقصة لحصة شائعة من أصل المتعامل
عقود المشاركة المتناقصة
Ijarah Contract with Floating Rental Rate
Financing Based on Musyarakah Mutanaqisah
Conditions for Validity of Bai` `Inah Contract
Islamic Credit Card Based on the Concepts of Wakalah and Kafalah

Source of Funds

Deposit Funds are nemely: Current Deposit Account, Savings Deposit Account and Term Deposit Account. For further details see: ISRA, Islamic Financial System; Principles and Operations.

The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 155th Meeting
RESOLUTION No. 86/3/95: "BANK DEPOSITS (Bank Accounts)"
Is an Islamic Bank Responsible for the Source of the Funds by Which the Debt Owed to It Is Repaid?
RESOLUTION No. 76/7/8: PROBLEMS OF ISLAMIC BANKS
فتح حساب مشترك بالتضامن بين طرفين تجمعهم علاقة نسب
إعطاء الموظفين قروضًا حسنة أو تمويلهم بربح أقل
Can Contests with Prizes Be Used to Encourage Tenants of Properties Owned by an Islamic Bank to Open Accounts with the Bank to Facilitate Rent Payments?
If One Partner Injects Additional Capital after the Initial Capitalization, Should the Shares of Profit Be Adjusted?
Can an Adult Open an Account for a Minor with Restrictions on the Right to Withdraw from It?
Is it Impermissible to Separate the Money of Depositors from the Money of Shareholders?
Is it Allowed for KFH to Purchase the Share of its Depositors?
Adaptation (Takyif) of Wadi`ah Yad Dhamanah as Qard
Application of Wakalah bi al-Istithmar in Deposit Product
Hibah in Wadi`ah Contract
Deposit Product Based on Mudarabah and Qard Contracts
Deposit Product Based on Wadi`ah and Mudarabah Contracts
Shariah Concept for the Operation of Islamic Deposit Insurance
Commingling of Funds Contributed by Islamic and Conventional Banking Institutions in Deposit Insurance
Guarantee Limit for Islamic Banking Deposits by PIDM
Definition of Term “Deposit” in Islamic Deposit Insurance
Status of PIDM’s Claim Against Depositors ’Claim in the Event of Winding up of an Islamic Banking Institution
Application of Muqasah in Islamic Deposit Insurance
Priority of Depositors in Recovering Deposit in the Event of Winding Up of an Islamic Banking Institution
Surplus Sharing Post Liquidation and Payment of Claims between Islamic and Conventional Banking Funds
Depositor Customer’s Investment Fund from Doubtful Sources
What’s the Committee’s Opinion Regarding the Following Proposals: Accepting Deposits, Execution of Banking Services and Financing & Investment Operations?
How to Calculate the Zakat on the Bank’s Items Such as Current Account, Investment Savings Accounts, Investment Deposit Accounts and Other Items?
Is It Allowed for KFH to Accept Deposits from Entities Whose Businesses Include Proscribed Activities in Order to Use These Deposits in Shariah Compliant Investments?
Is It Allowed for KFH to Give Out Gifts to Those Who Open Accounts with It?
Is It Allowed for KFH to Finance Its Customers’ Subscription to Al-Majd Satellite Channel and to Provide a Complimentary Subscription as a Gift Paid by KFH’s Set-Aside Funds?
Is It Allowed for KFH’s Executive Department to Register the Entire Expected Returns on Finance for the Capital Base Only and Not Share It with the Customer Base?

The difference between the total value of the assets (current and fixed) and the total value of liabilities (current and long-term) is the shareholder's equity, also called common equity or owner's equity. See Fundamentals of Corporate Finance.

Real Estate Investment Portfolios
إعطاء الموظفين قروضًا حسنة أو تمويلهم بربح أقل
مخصصات معالجة الديون المشكوك في تحصيلها
(كسر الوديعة (التخارج
How Should Zakah Be Calculated for the Solar Year?
Is it Impermissible to Separate the Money of Depositors from the Money of Shareholders?
Is it Allowed to an Islamic Financial institution to Buy Its Depositors’ Shares?
Is it Allowed for KFH to Purchase the Share of its Depositors?
What Entity is Responsible for Paying Zakat Providing that A Company Acts as the Manager of Another that Represents the Shareholders?
What’s the Shariah Ruling Regarding a Loan with Specified Nominal Interest Given to a Company by the Shareholders Owing to Investment Conditions?
Is It Allowed for a Bank Converted to Conventional to Islamic to Distribute Any Profits Resulting from the Interest Earned to its Shareholders?
How Can KFH as a Shareholder of an Islamic Bank that Converted from the Conventional System Handle the Profits Provided as Cash and Bonus Shares?
Is It Allowed for KFH to Pay Shareholders’ Contribution in a Company as Qard Hasan and Mortgage the Shares of the Shareholders as a Security for the Benevolent Loan?
What’s the Shariah Characterization of the Current Account?
Is It Allowed for KFH’s Executive Department to Register the Entire Expected Returns on Finance for the Capital Base Only and Not Share It with the Customer Base?

Investment Funds means Investment Account funds. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Leasing Fund: Calculating Zakah
Can an Islamic Bank Let Companies That Deal With Usury Have Current Or Investment Accounts?
Providing Customers No-Interest Loans to Trade Currency for Profit
The Owner of an Investment Deposit Account Relinquishes His Account to Other Depositors for an Agreed Price
What to Do with Profits from Investment Accounts Closed by Their Owners when the Old Address Is not Valid?
Can an Islamic Bank Fund Recreational Activities for Its Workers Using Depositor or Shareholder Funds?
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 135th Meeting
RESOLUTION No. 86/3/95: "BANK DEPOSITS (Bank Accounts)"
How to Treat an Overdraft on an Investment Account?
Investment Deposit Account As Pawn in Murabaha Financing
قرار رقم 143 (1/16) بشأن زكاة الحسابات المقيدة وشركات التأمين الإسلامية والتأمينات النقدية ومكافآت نهاية الخدمة
احتياطي معدل الأرباح
دفع ضريبة عن مخصص مخاطر الاستثمار وقيدها على حساب الرصيد المتجمع في حساب مخاطر الاستثمار
دفع الزكاة عن أرباح أموال المساهمين أو الاحتياطيات
استثمار أموال البنك في الأسهم والعقارات
حساب فترة الوديعة الاستثمارية
الأرباح من وديعة الاستثمار
Can an Investment Deposit be Used as Security for a Deferred Payment Sale?
Does Profit-and-Loss Sharing Apply to the Shareholders’ Reserve Funds?
What is the Rule When an Unrestricted Investment Deposit Holder Wants to Withdraw His Deposit before the End of the Deposit Period?
Can a Charitable Organization Invest Donated Funds to Generate Income to Be Spent in Charity?
Can Real Estate Portfolios of Differing Status Be Merged Together?
When Should Profits Earned Be Credited to the Accounts of Investment Account Holders?
Can an Investor Withdraw from an Investment Project before Its Term?
Can a Condition of Investment Link the Right of Withdrawal to Relinquishment of any Share in the Profit or Loss?
Is It Allowed to Mix Deposits of Different Periods?
Can Investment Accounts Share in the Same Profit and Loss Calculation if They Are Opened on Different Dates?
How to Treat a New Deposit in a Mudarabah Investment Account?
Is it Allowed to Deposit Funds in a Conventional Bank in Exchange for Reduced Fees on Tawarruq Transactions?
Is It Allowed to Restrict the Right to Withdraw from an Investment Deposit Account?
What is the Investment Procedure in Case an Investment Savings Account is Opened in a Foreign Currency?
What is the Ruling on Withdrawal of a Deposit Made in Foreign Currency from an Investment Account Before the End of the Deposit Period?
Issues in Foreign Currency Investment
Is It Allowed to Invest Zakah Funds?
Is It Allowed to Participate in a Project Involving Contracts That Contain Some Prohibited Clauses?
Is it Allowed to Lease a Property and Build Residences to be Leased to the First Owner of The Property?
Is it Permissible in a Project to Accept Shares of Companies that do not Conform to Shari‘ah?
Is it Allowed to Purchase Existing Companies in order to Islamize them?
What are the Rules to be Observed Concerning Al-Yamamah Portfolio Account?
What are the Shari‘ah Conditions to Invest in a Fund?
Is it Allowed to Enter in an Investment where the Capital is Guaranteed?
Is it Allowed to Enter in an Investment where the Capital is Guaranteed?
Is the Guarantee of Specific Percentage in Investment Contracts Permissible?
What are the Rulings of the Investment Agency Contract?
What are The Shari‘Ah Rulings on the Stipulation in Wakalah Contract?
Is it allowed to invest on behalf of the customers in commodities and minerals in which banks compete to invest the wealth of their customers?
What is the Position of the Fund’s Manager vis-a-vis the Discount Percentage on the Sale of Shares and the Additional Profits Earned in the Event of Positive Market Performance?
Is it Allowed for KFH to Purchase the Share of its Depositors?
Mudarabah Investment Certificate as Security
Administrative Costs in Mudarabah Deposit Account
Intra-Day Transaction as an Islamic Money Market Instrument
Application of Wakalah bi al-Istithmar in Deposit Product
Depositor Customer’s Investment Fund from Doubtful Sources
Financial Market Instruments as Underlying Asset in Deferred Transaction
Hukum Pembayaran Simpanan Kumpulan Wang Simpanan Pekerja (KWSP) Bagi Ahli Yang Memeluk Islam
Wang simpanan KWSP dan PERKESO
Akaun Simpanan Yang Tidak Aktif Dalam Lembaga Urusan Dan Tabung Haji
Status Terkini Pematuhan Syariah Skim Sijil Simpanan Premium Bank Simpanan Nasional (BSN)
Pelaburan Dalam ASN, ASB Dan Seumpamanya
Hukum Pelaburan Ke Atas Syarikat Swiss Cash Mutual Fund
Bayaran Zakat Kumpulan Wang Simpanan Pekerja (KWSP) Sejurus Pengeluaran - Satu Alternatif
Zakat Wang KWSP
Fatwa Tentang Kaedah Pembayaran Zakat KWSP
Menentukan Satu Kaedah Tetap Bagi Zakat KWSP
Is it allowed for an Islamic Bank to invest a portion of its capital in buying the stock of the companies that are not aimed at dealing with interest?
What is the Ruling on Investing zakat Funds, Funds from Dormant Accounts or Those Tainted by riba or Suspected of Being Tainted by riba?
What is the Ruling on Investing zakat Funds, Funds from Closed Accounts or Those Tainted by riba or Suspected of Being Tainted by riba?
What is the Ruling on the zakat on Financial Portfolios that Represent Funds for Investment in Foreign Currency Exchange?
Is it allowed for an Islamic Bank to invest a portion of its capital in buying the stock of the companies that are not aimed at dealing with interest?
What's the Shariah Opinion Regarding the Establishment of a Company Abroad to Benefit from Tax Exemptions Providing that these Companies Are Involved in Interest?
What's the Shariah Opinion Regarding the Investments in Shares and Real Estate Using Funds that Exclusively Belong to Shareholders and those Belong to Investors?
Is It Allowed for KFH to Invest in a Company that Mainly Manufactures Temporary Birth Control Medicine?
Is It Allowed for Financial Investment Companies that Have Attained Credit Lines to Use Credit Lines Granted to them by KFH to Purchase Shares Through Deferred Murabahah Sales?
Is It Allowed for Financial Investment Companies that Have Attained Credit Lines to Use Credit Lines Granted to them by KFH to Purchase Shares Through Deferred Murabahah Sales?
Is It Allowed for KFH to Be the Selling Agent for the Units of an Islamic Fund Using Subscription Application Forms That Bear the Name of a Conventional Bank as the Investment Trustee?
What’s the Shariah Opinion Regarding Shariah Compliance Matters of I’mar Fund in Which KFH is a Representative in the Investment Sector That Sells Units of the Fund?
Is It Allowed for KFH to Invest in Companies Whose haram Elements Are Less Than Those Mentioned Percentages Because the haram Has Become so Widespread?
Is It Allowed to Purchase Companies That Provide Support Services to Customers That Are Involved in Businesses That Are Not Shariah Compliant?
Is It Allowed for KFH to Be the Selling Agent for a Fund That Was Established for Trading in Shares of GCC Companies Mainly Partaking in Shariah Compliant Activities?
Is It Allowed for KFH to be the Selling Agent for Petra Investment Fund?
What Are the Proposed Members of Shariah Committee for Al-Fajr Islamic Find Which KFH Is Willing to Invest in?
المحافظ الاستثمارية لشركات التأجير المالي التقليدية

Use of Funds

Retail Financing: Retail financing can be defined as financing activities where the main emphasis is on service for individuals rather than businesses and corporate entities. It is a business segment which delivers financial services through a network of outlets and service points.

Corporate financing deals with the corporate financial decisions of the financial institutions which involve both term finance and working capital finance. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Financing to a Party Who Explicitly Performs Non-Shari`ah Compliant Activities
An Islamic Bank Has Multiple Accounts in Different Currencies with a Foreign Bank, Some Overdrawn and Some with Positive Balance
Is It Permissible for KFH to Issue a Statement for One of Its Customers Stating That He Has Such-And-Such Amount in His Account When He Does Not Actually Have That Balance?
Charging the Customer a Fee to Fix a Mistake Made by the Bank
The Bank Transfers Funds into a Client’s Account, Issues a Certificate That He Has That Amount in Available Funds, Then Withdraws What It Transferred
What Is to Be Done with Tellers’ Positive Discrepancies?
What Should Be Done with Small Cheques Issued to Accountholders Who Cannot Be Located or Contacted?
Buying Gold That Has Been Deposited with the Buyer
Can an Islamic Bank Buy a Company That Runs on Riba in Order to Change It?
Is It Permissible for KFH to Charge a Certain Fee to the Customer for Changing His Name in the Promissory Note to the Name of a New Buyer He Sold the Commodity to?
Is It Permissible to Sell a Specific Commodity to Someone for a Combination of Cash and Credit and to Calculate the Price on the Basis of All the Expenses?
Is It Permissible If the Producer Mistakenly Shipped the Commodity in the Name of the Customer Who Promised to Purchase It from KFH Which Ordered the Commodity in Its Name?
Can the Trade License Be Made Part of the Price When Selling a Business?
Is It Allowed to Sell a Government-Issued License to Undertake a Project?
Resolution No. 103: No permission to write any text on the back of a bill of exchange
Resolution No. 175: The impermissibility of the Corporation issuing the International Traveller Card (Iyābā)
اعتماد عمولة تغطية قيمة الحوالة وعمولة تنظيم تعهد قطع تصدير/ كتاب مسبق وعمولة تسديد تعهد
تحويل الأموال المجنبة من وحدة مصرفية إلى أخرى
دعم منظمة من الكسب غير المشروع
إمكانية مساهمة البنك في بعث صندوقين مشتركين للتوظيف
تحميل الوعاء العام مصاريف إصدار بطاقة التقسيط
كتابة الآيات القرآنية في دفتر الادخار
أرباح حساب الحج
أخذ البنك عمولة مقابل الخدمات المصرفية
تأمين البنك على أمواله وممتلكاته الخاصة
مخصصات معالجة الديون المشكوك في تحصيلها
Insurance Premium
Various Types of Banking Insurance
Islamic Financing Insured By Conventional Insurance
An Islamic Bank Has Multiple Accounts in Different Currencies with a Foreign Bank, Some Overdrawn and Some with Positive Balances
Stipulating that Customers not Deal with Competitors
Can a Customs Clearing Agent Charge Different Fees Based on the Value of the Goods?
Can an Islamic Institution Give a Non-Muslim Employee Leave to Celebrate His/Her Religious Holiday?
Can an Islamic Bank Use Photos That Include Women for Promotional Purposes?
What Is the Rule on Selling Cameras and Their Accessories?
Can the Employer Delay Payment of the Monthly Salary of an Employee under Probation?
Is the Ruling on an Employee Careless about Confidential Job-Related Information?
Is it Islamically Lawful for an Employer to Decline to Transfer the Work Permit of an Employee Who Resigns to Take a Better Offer?
Is It Allowed to Open an Account for a Minor Orphan with His Guardian Listed as His Father?
Can a Commercial Institution Distribute Cards in Mosques Containing Information about Its Activities?
Can 3-D Cartoon Characters Be Used in Displays Intended for Children?
Taking Bonds or Bills as Payment for Debts
Can Muslim Male Employees Work with a Non-Muslim Woman Who Does Not Dress According to Shari‘ah?
Can an Islamic Bank Accept Assignment of Rights Requested by Usurious Banks of Their Customers?
Issues Related to Point-of-Sale Service (KNET)
Are the Amounts Given to Employees for their Official Business Travel Considered Their Right?
Is It allowed to Sponsor Some Types of Sports?
What is the ruling on charging a nominal fee for withdrawing an investment deposit before the end of its period?
Is It Allowed to Finance Hotels that Provide Prohibited Services?
Is it Allowed to Sell for Undeclared Agent What he Bought as Agent?
What is the Shari‘ah Rulings in Transporting Money For a Sum of Money?
What is the Shari’ah compliant way to finance the exchange of vouchers?
Is it Permissible to Providing Internet Access to KFH’s Residential and Commercial Complexes?
What’s the Fatwa Committee’s Opinion Regarding Organization of the Business of Islamic Banks Issued by the Central Bank of Kuwait (CBK)?
Is it Allowed for KFH to Enter into a Contract with Debt Collection Agencies that Provide Gifts and Money in order to Collect the Owed Debts?
What’s the Fatwa Committee’s Opinion about the Participation in the February 2004 Shopping Festival?
Is it Allowed for KFH to Charge a Fee from Customers Who Withdraw their Financing Applications During the Promise Stage?
What’s the Fatwa Committee’s Opinion Regarding the Cooperative Marketing Contract and the Handling of the Returned and Damaged Goods?
Is it allowed for the Bank to insure its wealth and its exclusive properties?
Is it allowed for the Bank to insure its wealth and its exclusive properties?
Is it Allowed for KFH to Engage in the Establishment of a Company to Collect Financial Data on Banks’ Customers to Assess their Financial Standing?
What is the Ruling on the Application Form for Finance Facilities Where KFH Approves the Finance Limits and Letters of Guarantee Provided to its Customer?
What’s the Shariah Opinion Regarding Balances in the Claims Account That Have Been There for a Long Time Linked to Past Customers Who Cannot Be Reached?
What’s the Shariah Opinion Regarding Opening an Account with an Authorization from an Adult to a Minor to Utilize the Funds in the Account?
Is It Allowed for KFH to Organize a Lucky Draw for Customers in Which They Would Have to Answer Certain Questions Regarding KFH’s Products and Their Fiqh Characterizations?
Is It Permissible for KFH to Organize a Lucky Draw to Win Prizes Either in Cash on in Kind for Customers When They Use KFH Online Financial Services?
What Is the Ruling on Financing the Purchase of Jewelry (Gold and Gems)?
Is KFH Liable for Not Being Able to Trade in His Customer’s Pre-Invasion Kuwaiti Currency Notes Because KFH Was Late in Opening His Safe Deposit Box After the Liberation from Iraq?
What Is the Ruling on KFH Granting a Resigning Employee the Entire End-of-Service Remuneration?
What is the Ruling on Distributing Brochures Explaining Insurance Issues to Customers?
What’s the Shariah Committee’s Opinion on the Booklet Titled ‘Shariah Supervision in Islamic Banks’?
What Is the Ruling on Placing a Picture of a Man Handing Out a Bank Card or a Brochure in the Branch Offices?
Is It Allowed to Accept Instructions from Standing Payment Orders in Favor of Satellite Channel and MM Telcom from Customers?
Is It Allowed to Organize a Ramadan Festival That Include Activities Such as a Luck Draw and Fashion Show?
Is It Allowed to Import Internet Usage Cards for a Customer in a Cooperative Marketing Service?
What is the Ruling on Installing a Satellite Dish for a Residential Complex Based on Residents’ Request?
Is It Permissible for KFH to Issue a Brochure That Includes Pictures of Women Providing That It’s Just for the Women’s Section?
What’s the Shariah Opinion Regarding the Third Clause of the Supply Contract Used in Cooperative Marketing?
What Are the Parameters for Publishing Pictures of Women in the Magazine Wahat al-Muwazzaf Published by KFH?
Is It Allowed for the Organization Providing Training Courses for KFH’s Employees to Compensate the Shortage of Male Lecturers with Female Lecturers?
Is It Allowed for KFH’s Employees to Enjoy Discounts on Certain Products and Memberships in Clubs Since That KFH Has Joined the Kuwaiti Banking Association and Kuwaiti Banks Club?
What Is the Ruling on the Promotional Festival Intended for KFH’s Female Customers?
What Is the Ruling on Shooting a Movie Scene in One of KFH’s Branches?
Is It Allowed for KFH to Be the Sponsor of a Portion of a Time on a Music Channel?
What Is the Ruling on KFH Getting Involved in the Marketing Campaign Organized by MasterCard Worldwide Which Includes Offers to KFH’s MasterCard Cardholders During the European Cup?
What Is the Ruling on KFH Joining the Kuwait Banking Association?
Modes of Participation between Banks in the Murabahah Contracts

Trade Financing

An Islamic accepted bill (IAB) is a result of the securitisation of a murabahah Islamic trust receipt. The IAB is drawn to finance the trading of tangible halal goods and formulated based on the Islamic principles of murabahah (deferred lump-sum sale or cost-plus) and bay’ al-dayn (debt-trading). For further details see: ISRA, Islamic Financial System; Principles and Operations.

What’s the Committee’s Opinion Regarding the Following Proposals: Accepting Deposits, Execution of Banking Services and Financing & Investment Operations?

Islmic Letter of Credit (ILC) is a written undertaking given by the Islamic bank, to the seller (the beneficiary) at the request and on the instructions of the buyer (the applicant), to pay at sight or at a determinable future date, a stated sum of money within a prescribed time limit and against stipulated documents which must comply with terms and conditions. An Islamic bank may offer ILC under several shari'ah contract, namely wakalah (agency), murabahah (cost-plus profit) and musharakah (partnership).

The Purchaser Opens an LC for Delayed Payment in a Foreign Currency; the Bank Gives a Better Rate for Holding the Money till the Payment
Can the Guarantor Charge for the Guarantee?
LCs: Partial Coverage
Letter of Credit
Obtaining LCs Without Adequate Funds
Should an Islamic Bank Refuse to Open a Letter of Credit for a Buyer Who Is Planning to Resell the Purchased Commodity to the Government at a Huge Mark-up?
Should the Bank’s Fee for an LC Opened for an Estimated Sum Be Based on the Estimated or Actual Value?
Taking Commission On Issuance and/or Confirmation Of LCs
The Bank Charges a Fee for an LC as Compensation for Missing out on the Difference in Currency Exchange Rates
Is an Exporter’s Acknowledgement of the Opening of the LC Qabd? Can the Goods Then be Resold?
Is It Permissible for KFH to Open a Letter of Credit to Import Women’s Clothes That May Not Be Modest?
Is It Permissible for KFH to Deduct Expenses from the Customers’ Accounts After the Value of Goods Has Been Already Assessed in Murabahah Letters of Credit?
Is an Application for Documentary Credit That Lacks Detail Valid?
Who Has the Right to Profits Earned on Investment of Funds Sequestered to Secure an LC?
A Correspondent Bank Wants to Charge the Islamic Bank a Fee for Its Part in Issuing a Letter of Guarantee. Can the Islamic Bank Tell It to Charge the Customer?
Is It Permissible in a Murabahah Contract to Add a Condition That KFH Shall Not Pay the Producer the Price for the Goods Until After They Have Been Tested and Approved?
Would KFH Be Held Responsible in Case the Shipping Company Acknowledged That the Goods Were Sound But Then Failed to Make the Delivery?
A Murabahah Sale in Which the Intermediate Seller Stipulates That the Original Seller Will not Be Paid until the End Buyer Tests It
An L.C. Application Missing Details about the Goods to Be Purchased
Can an Islamic Bank Facilitate the Import of Meat That Is Not Islamically Slaughtered?
Can an Islamic Bank Sequester Funds in the Account of a Customer Who Applies to Open an L.C.?
Can the Murabahah Seller Raise the Markup if the Deal Involves Advance Payment That Will Extend the Deal’s Timeline?
Can the Seller in a Murabahah Sale Retain the Goods as Security until the Buyer Pays for Them?
Damage to or Loss of the Purchased Good
Delay In Receiving The Goods
How to Terminate a Pre-Existing Contract in Order to Effect a Murabahah Sale?
If the Goods Arrive before the Documents, and the Intermediate Seller Doesn’t Know the Actual Price, Can the Deal Be Switched to Musawamah?
Informing the Customer of LC Expenses after the Sale Contract Has Been Signed
Insurance Compensation for Damaged Goods Exceeds the Actual Loss; What to Do with the Excess?
Period Of Verification
The Buyer Guarantees the Reliability of a Fraudulent Exporter. Who Is Liable?
The Buyer Pre-Signs a Murabahah Contract and Deposits an Advance Payment before the Seller Buys the Goods
The Purchase Undertaker Requests the Intermediate Seller to Pass on Insurance Compensation for Damaged Goods
The Purchase Undertaker Wants to Avoid the Expense of a Third-Party Inspector of the Goods before Shipment
التعامل مع شركات التأمين التقليدي
Murabahah With Exporting And Importing Companies
Using Murabahah In Cigarette-Related Sales
Various Issues
When the Goods Arrive before Their Shipping Documents
When the Purchase Undertaker Is a Distribution Agent for the Exporter
If Some of the Goods Are Damaged, Must the Price Be Adjusted?
Buying a Good When the Importer Can’t Pay for It; Then Selling it to Him
Trading in Statues
The Agent Buys the Good Back from the Principal
Can an Islamic Bank Charge a Fee for Changes to the LC Made by Telex?
How Should an Amount Transferred from a Savings Account to an Insurance Account Be Considered?
Is It Allowed to Set a Minimum Fee for Opening a Documentary Credit?
Is it Allowed for a Nominated Bank to Take a Commission for Opening a Documentary Credit?
Issues in Deferred Payment Documentary Credits
Is It Allowed to Take a Commission on Issuing Letters of Guarantee and Confirmation of Documentary Credits when Dealing with Foreign Banks?
Is It Allowed to Enter in a Murabaha Contract as an Agent?
Is it permissible for KFH to appoint a financial institution as its agent to issue letters of credit on its behalf?
Is it Permissible in a Murabahah Contract for the Customer to Haste to Accept Direct Shipment of the Goods before KFH Had Purchased Them?
What’s the Committee’s Opinion Regarding the Following Proposals: Accepting Deposits, Execution of Banking Services and Financing & Investment Operations?
Is it Lawful to Open a Documentary Credit for a Customer in Order to Import Non-Alcoholic Beer?
Client Benefiting from Commissions Given to the Bank in Connection with Murabaha credit
Client Guarantee for Commodity Soundness in Murabahah Transactions
Delay in Payment of Goods Price to the First Seller
Delay of Goods Arrival in Murabahah Transactions
How to Determine the Price and Profit in Case of Difference in Credit Currency
Calculation of Profit for Advance Payments Offered to the Exporter
Client Investment Savings, and Current Deposits as Guarantee in Murabahah Transactions
General Provisions of Agency in Murabahah Transactions
The bank issues shipping guarantess and clearance permits in a manner which implies that the client has opened the credit in his name at the bank, while the credit is actually opened in the name of the bank
Non-Receipt of Invoices in the Name of the Bank in Murabahah Transactions
Forged Documents in Murabahah Transactions
The Name According to which the Credit will be Opened
the Difference between the Currency of the Credit and the Currency of the Murabaha
The Deals Contracted between the Client and the Exporter Prior to the Murabahah Contract
Shipping of the Goods on Behalf of the Client
Using the Client License to Import Goods from the Exporter
Bearing of the Expenses Incurred before the Cancellation of Murabahah Transactions
تعزيز البنك للاعتماد المستندي بناء على طلب العميل وتحميل العميل النفقات
جواز أخذ الأجرة عن تمديد مدة الاعتماد المستندي
فتح خطاب اعتماد بناء على الفاتورة المبدئية المقدمة من الزبون
سداد البنك عند تخلف المتعامل عن سداد البضاعة في الاعتماد مؤجل الدفع
الموافقة على خصم الاعتماد مؤجل الدفع من البنك المراسل
شراء بضائع مرابحة بموجب اعتمادات مستندية
عدم إكمال الزبون هامش اعتماد البضاعة وطلبه من البنك شراءها
المرابحة / الاعتمادات المستندية
ورود المستندات قبل البضاعة في اعتمادات تمويل المرابحة
التزام الوكيل بسداد المبلغ الذي تجاوز به حدود التسهيلات الممنوحة له

Islamic trust receipt (ITR) is a financing facility to finance domestic or international trade documents drawn against ILC or wakalah inward bills for collection. Islamic banks issue the ITR facility to the customer based on the murabahah principle for financing the purchase of goods. It is a document of trust signed by the customer (importer); the strength on which the Islamic bank allows the customer (importer) to obtain release of the merchandise but makes a lump-sum payment at a later date. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Islamic Shipping Guarantee is an indemnity document issued by a bank that allows the importer to take possession of shipped goods from a shipping company in the absence of the original transport document (bill of lading or airway bill). This indemnity document is presented by the importer to the carrier or the agent so that the goods can be released in the event that the cargo arrives prior to the shipping documents. The document indemnifies the shipping company for any financial consequences incurred due to the release of the cargo without the presentation of a bill of lading. It helps importers to quickly collect goods and thus avoid high port demurrage charges, which facilitates smooth running of the business and minimises damage to goods due to delays.

The bank issues shipping guarantess and clearance permits in a manner which implies that the client has opened the credit in his name at the bank, while the credit is actually opened in the name of the bank

Islamic Bank Guarantee (IBG) is an indemnity letter issued by an Islamic bank to the customer in the form of a guarantee under the principles of kafālah in which the bank becomes liable if the customer fails to perform his obligation to the third party. It is a binding written obligation issued by the bank to assure the beneficiary the due payment as specified in the letter of guarantee if any form of default occurs by its customer. This facility usually functions to protect beneficiaries (e.g., government departments and statutory bodies) against non-fulfillment of the bank customer’s obligations. Thus, the issuing bank undertakes the risk and liability on behalf of the beneficiary. In return, the customer pays a certain amount charged by the bank. If the customer fails to fulfill his obligation, the issuing bank will pay the beneficiary and claim accordingly from the customer to reimburse the payment made.

Can an Islamic Bank State in an L.C. or Letter of Guarantee That the Fee Charged by a Conventional Bank Shall Be Obtained from the Beneficiary?
Resolution No. 12 (2/12): Letter of Guarantee
Can an Islamic Bank Issue a Guarantee for a Contractor Doing Work for a Conventional Bank?
Can the Murabahah Seller Take a Mortgage from the Purchase Undertaker before It Buys the Subject of the Contract?
What’s the Committee’s Opinion Regarding the Following Proposals: Accepting Deposits, Execution of Banking Services and Financing & Investment Operations?
Letter of Guarantee Amendments
Is it Allowed to Issue a Letter of Guarantee to a Client for his Debt Owed to a Commercial Bank and Secured by Real Estate Mortgage Insurance?
Is it Permissible to Increase the Current Fee Charged for Issuing Letters of Guarantee Providing That There Are Additional Indirect Costs?
Is it Permissible to Increase the Current Fee Charged for Issuing Letters of Guarantee Providing That There Are Additional Indirect Costs?
Is it Allowed to Issue a Performance Bank Guarantee in Favor of a Local Bank as a Security for the Payment of Debt Incurred by a Deceased Parent?
Is it Allowed for KFH to Issue a Performance Bank Guarantee in Favor of the Ministry of Information to Grant a Company an Exclusive Sponsorship to Have Commercials on Specified Channels?
Is it Allowed for KFH to Take a Fee in Return for the Facilities Granted to the Customer in a Letter of Guarantee?
Is It Allowed to Calculate the Fee for a Letter of Guarantee as a Percentage of the Value of the Letter of Guarantee as a Consideration for Additional Services?
What’s the Shariah Opinion Regarding Calculating a Fee for Letters of Guarantee?
RESOLUTION No. 12 (12/2): THE LETTER OF GUARANTEE
Client Guarantee for Commodity Soundness in Murabahah Transactions
Arrival of the Goods Prior to the Arrival of the Documents in Murabahah Transactions

Mezzanine financing


Treasury Securities

The market in which participants are able to buy, sell, exchange and speculate on currencies. The forex markets is made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors.

Can the Bank Inform the Investor of His Expected Profit in Commodity Murabahah with Variations Based on the Currency Used?
A Forex Option
An Islamic Bank Has an Account in Foreign Currency with a Foreign Bank and Vice Versa. Can They Treat Each Other’s Deposits as Non-Interest Loans for Investment?
Changing a Check in a Foreign Currency; What Day’s Price Should Be Recorded?
Dollars Are Purchased at Different Prices on the Same Day; Which Price Should the Customers Be Charged?
The Customer Requests a Bank Draft to Cash It with a Foreign Bank, which Will Charge a Fee for Cashing It. Does the Issuing Bank Have to Inform the Customer about the Fee?
RESOLUTION No. 84/1/9: GOLD TRADE, SHARI'A SOLUTIONS FOR COMBINED CASH AND TRANSFER PAYMENTS
Resolution No. 105: The permissibility of borrowing in deutsche marks and lending in US dollars to avoid price volatility
Resolution No. 110: Selling foreign currencies to clients for less than the market price in order to encourage them to deal with the Corporation
The Exchange Rate to Be Used on an Unexpected Deposit by a Third Party for a Customer in a Correspondent Bank When Knowledge of the Deposit is Delayed
اعتماد عمولة تغطية قيمة الحوالة وعمولة تنظيم تعهد قطع تصدير/ كتاب مسبق وعمولة تسديد تعهد
انخفاض قيمة العملة
دفع الأرباح المستحقة للودائع بالعملات الصعبة
أرباح الودائع بالعملة الصعبة
استثمار البنك ودائع العملاء بالعملة الصعبة وردها بالعملة نفسها
عمولة صرف عملة
مشروعية شراء دولار الحوالات بالدولار النقدي
مشروعية تداول العملات في عمليات الصرف قبل تقييدها حقيقة في الحساب
الصرف المؤجل للعملات المختلفة الجنس
بيع البنك عملة أجنبية لجهة ما بسعر يحدد مسبقًا
قيام البنك بإيداع وديعة لدى أحد البنوك الذي يبيعه أجنبية بسعر شراء البنك المركزي
What is the Investment Procedure in Case an Investment Savings Account is Opened in a Foreign Currency?
Revisiting the Ruling on Terminating an International Murabahah Deal before Its Term
Is it Allowed for a Partner to Replace his Customer in a Foreign Currency Investment?
Is it permissible for KFH to become involved in a portfolio for foreign currency exchange?
Is it allowed to fix the exchange price on the subscription day rather than the transaction day?
Spot and Forward Foreign Currency Exchange Transactions
What’s the Committee’s Opinion Regarding the Following Proposals: Accepting Deposits, Execution of Banking Services and Financing & Investment Operations?

Can an Islamic Bank Take Treasury Bills as Payment for Goods Purchased from It?
Taking Bonds or Bills as Payment for Debts
Is it permissible to buy a leasing company which has some assets in the form of treasury bonds?
Is It Allowed for KFH to Manage Surplus by Purchasing Government Bonds Based on Bay’ al-Dayn?
Is It Allowed for KFH to Manage Surplus by Placing the Surplus with the Central Bank in a Deposit Account Based on Wadiah Contract?

Wealth Management


Asset Management


Islamic Banking Facilities

Islamic Credit Card Based On Bai' 'Inah
Resolution No. 108 (2/12): "Credit Cards"
RESOLUTION No. 102/4/10: CREDIT CARDS
Is It Allowed to Charge a Late Penalty on a Credit Card Holder if He Misses a Payment?
RESOLUTION No. 78/9/8: CREDIT CARDS
Resolution No. 179: The Corporation issuing a free Iyābā card for subscribers to the Visa gold card
مشروعية تعامل البنك مع شركة الماسترد كارد لبطاقات الائتمان
بطاقة الائتمان الإسلامية وفقاً لصيغة القرض الحسن
Can a Credit Cardholder Refuse the Life Insurance Contract That Comes with It?
When the Award for Personal Accident Insurance Exceeds the Diyah
Resolution No. 139 (5/15): Credit Cards
Can an Islamic Bank Give a Credit Card as a Prize to Murabahah Buyers and Add the Cost of the Card to the Murabahah Base Price?
What is the Rule on an Islamic Bank Issuing Credit Cards or Acting as an Intermediary to Issue Them?
Can a Bank Take a Commission from Merchants Who Accept Its Debit Card for Payment?
Is It Allowed to Charge a Fee for Foreign ATM Withdrawals in Addition to the Currency Exchange Fee?
What Is the Shari‘ah Ruling on Enabling Visa Electron Cardholders to Make Withdrawals from KFH’s ATM Machines?
What Is the Shari‘ah Ruling on Enabling Holders of Visa Cards Issued by Other Banks to Make Withdrawals Using KFH’s ATM Machines?
What Is the Ruling on Enabling Holders of Visa Cards Issued by other Banks to Make Withdrawals Using KFH’s ATM Machines? (2)
What is the Ruling on Providing Additional Services That Include Life Insurance to Visa Gold-Card Holders?
Some Conditions for Issuing a Visa Card
How permissible is it to subscribe to shares of Al-Qarin Petrochemical Products Company?
Takaful Coverage for Conventional Credit Card Product
Islamic Credit Card Based on Bai` `Inah and Wadi`ah
Islamic Credit Card Based on the Concept of Ujrah
Takaful Cover for Islamic Credit Cardholders
Cash Back Rebate on Credit Card Annual Fee
Is it Allowed for KFH to Charge 4% Fee in Return for Cash Withdrawals from Other Banks’ ATM Machines Using Visa or MasterCard Issued by KFH?
Is It Allowed to Deduct Certain Amounts from a Number of Customers’ Accounts in Order to Pay for the Usage of Their Credit Cards Issued by Local Banks?
Is It Allowed to Increase the Commission Paid By a Company on the Total Amount of Revenue That Comes in as a Result of a Service Being Used by Customers?
What’s the Shariah Opinion Regarding Penalties on Credit Cards Holders Due to Violation of the Conditions of the Contract?
What’s the Shariah Opinion Regarding Paying Installments by CreditCard in Which KFH Incurs a Fee of 2% of the Installment Amount That Must Be Paid to CreditCard Issuer Bank?
What’s the Shariah Opinion Regarding the Islamic Credit Card Project?
Is It Allowed for KFH to Increase the Services Available to Its Credit Card Holders in Return for an Increase in the Membership Fee?
Is It Permissible to Allow All Visa and MasterCard Cardholders to Make Cash Withdrawals from KFH’s ATM Machines in Exchange for 4% Fee in Return?
What’s the Shariah Opinion Regarding the Estimated Cost for Issuing Silver Visa Credit Cards?
What’s the Shariah Opinion Regarding the Islamic Credit Card Project Concerning the Purchase of Silver and Gold Islamic Cards Proposed by ABC Islamic Bank?
What’s the Shariah Opinion Regarding the Addition of American Express Services to KFH’s Point of Sale Equipment?
Is It Allowed to Enable All Banks’ Credit Cardholders to Make Cash Withdrawals from KFH’s ATM Machines?
What’s the Shariah Opinion Regarding Issuance Fees of Credit Cards Based on the Following Mechanism?
Is It Permissible for KFH to Organize a Lucky Draw to Win Prizes Either in Cash on in Kind for Customers When They Receive ATM Cards?
Is It Permissible for KFH to Organize a Lucky Draw for Customers in Order to Encourage Privileged Customers to Collect the New Privileged Cards?
What’s the Shariah Opinion Regarding Increasing the Fees for Banking Card Services?
What’s the Shariah Opinion Regarding Increasing the Fees for Banking Card Services in Order to Cover the Actual Costs Incurred by the Bank?
What’s the Shariah Opinion Regarding the Fees and Services Provided to Customers by the Bank Cards Department?
Is It Allowed to Provide a Debt Collection Company with a Point-of-Sale Equipment That Accepts the Credit Cards of KFH and Other Banks?
What’s the Sharia Opinion Regarding Placing the Picture of a Football Player on Credit Cards During the World Cup Qualifying Matches?
Is It Allowed to Give Cardholders the Opportunity to Join a Lucky Draw by Using the Card to Lease a Commodity Whose Value Exceeds a Certain Limit?
RESOLUTION No. 63/1/7: FINANCIAL MARKETS
Islamic Credit Card Based on the Concepts of Wakalah and Kafalah

When securing a loan, the fi rm and the bank negotiate the amount, the maturity, and the interest rate, as well as any binding covenants that might be included. Aft er an agreement is reached, both parties sign the debt contract, which is sometimes referred to as a promissory note. For further details, see Fundamentals of Corporate Finance.

Resolution No. 152: The Trade Line Scheme that the Corporation wishes to use in dealing with its clients
What’s the Shariah Opinion Regarding Increasing the Promissory Note Value or the Mortgage Taken as a Security for the Debt?
Calculation of Profits According to the Number of Days During which Payment is Made
Presentation of Cheques, Bonds and the Like as Guarantee in Murabahah Transactions
Is it Permissible to Charge a Fee for Cashing a Check in a Foreign Currency?
Which Day’s Exchange Rate Should Be Used in Repaying the Bank for Withdrawals on a Bounced Foreign Check?
Who Should Bear the Exchange Difference when Cashing a Check in a Foreign Currency?
Is it Lawful to Ask the Guarantor for a Guaranteed Check as a Security Deposit?
Changing a Check in a Foreign Currency; What Day’s Price Should Be Recorded?
Charging a Fee for Travelers’ Checks in a Foreign Currency
Is the Conventional Procedure for Dealing with Lost Checks Acceptable?
Selling Traveler’s Checks
The Customer Requests a Bank Draft to Cash It with a Foreign Bank, which Will Charge a Fee for Cashing It. Does the Issuing Bank Have to Inform the Customer about the Fee?
Can a Customer Islamically Transfer a Traveler’s Check to Another Person in the Same Currency?
Can an Islamic Bank Charge a Customer for Writing a Bounced Check?
Resolution No. 155: The permissibility of the Corporation charging commissions for selling or collecting back traveller’s checks
Resolution No. 184: Gifts offered by the Corporation to its clients for purchasing traveller’s checks
Can the Seller in a Murabahah Sale Retain the Goods as Security until the Buyer Pays for Them?
Delay In Receiving The Goods
بيع البنك عملة أجنبية لجهة ما بسعر يحدد مسبقًا
If a Customer Cashes a Cheque Drawn on a Foreign Bank, Should the Exchange Rate Be from the Day of Cashing or the Day the Cheque Clears?
Can an Islamic Bank Charge a Fee for Issuing a Bank Draft?
Who Bears Liability When a Cheque Is Lost in the Clearing Process?
Is a Customer Allowed to Transfer Funds from His Savings Account to His Current Account?
Is It Allowed to Charge a Fee for Foreign ATM Withdrawals in Addition to the Currency Exchange Fee?
Is It Allowed, When Issuing a Bank Draft, to Include the Cost of a Procedure the Customer Might Not Use When Cashing It?
What Is the Ruling on Buying Currencies?
What Is the Shari‘ah Ruling on Charging a Fee to Issue a Bank Draft?
Charging Fees on Services
What is the ruling on charging a nominal fee for withdrawing an investment deposit before the end of its period?
Is it allowed to charge a nominal fee on a VIP customer’s current account to cash issued cheques?
Is It Allowed to Collect a Nominal Amount as a Fee for Each Over-the-Counter Withdrawal Slip from a Current Account?
Is It Allowed to Charge a Fee on Customers Issuing Cheques in Case of Insufficient Funds or No Balance?
Is It Allowed to Charge Customers a Fee Per Cheque on Cheque Clearing Services Noting That the Actual Costs Are Greater?
Presentation of Cheques, Bonds and the Like as Guarantee in Murabahah Transactions

Resolution No. 53/4/6: Possession: its different forms, especially its modern forms and their rules
Is It Allowed to Install KFH’s Credit Card Machine in a Trader’s Shop That Sells Cigarettes and Other Related Accessories?

Islamic Money Market

The tenure in money market transactions is from overnight to 12 months, although the most common tenure is three months or less. Hence, the money market is often characterised as the market for short-end debts. In many countries, transactions in the primary and secondary money markets take place over-the-counter (OTC) via electronic telecommunication but some are done in an exchange market. Capital market caters for long-term financial transactions with maturities longer than 12 months. The financial instruments in the capital market vary more than the money market and they include sukuk, bonds, and equities. Transactions in capital market instruments are either exchange traded or OTC. For further details see: ISLAMIC FINANCIAL SYSTEM: Principles and Operations.

What are the Rulings for a Short Term Liquidity Management Fund?
Issuance of Bank Negara Negotiable Notes Based on Ijarah Concept
Islamic Negotiable Instrument of Deposit Based on Mudarabah
Intra-Day Transaction as an Islamic Money Market Instrument
Liquidity Management Instrument Based on Qard
Sukuk Ijarah and Shariah Compliant Shares as Underlying Asset in Tawarruq Transaction
Application of Tawarruq in Sukuk Commodity Murabahah
Proposed Operational Model of Commodity Murabahah House (Now Known as Suq al-Sila`)
Repurchase of Negotiable Islamic Debt Certificate
Application of Bai` `Inah in Issuance of Negotiable Islamic Debt Certificate
Application of Bai` `Inah in Islamic Interbank Money Market
Hibah in Interbank Mudarabah Investment Contract
Islamic Profit Rate Swap Based on Bai` `Inah

The term money market instruments refers to short-term investment papers including long-term instruments such as government securities that have almost reached their maturity date. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Bai' 'Inah Transactions In The Money Market
Hibah In Inter-Bank Mudharabah Investment Contract

Bai' 'Inah Transactions In The Money Market
Hibah In Inter-Bank Mudharabah Investment Contract
The Shari’ah Ruling On Currency Trading
‘When Issue’ Transaction
Sale Of The Tawarruq Asset By The Customer To The Third Party: Issue Of Delivery And Payment
Bidding Concept by Principal Dealer in Islamic Money Market

Islamic Capital Market

The Islamic Capital Market (ICM) has been expanding worldwide, from the Middle East and Asia Pacific regions in the 1990s to include other geographical regions like Europe, the Americas and the global offshore markets in the 2000s. While some countries are at an advanced stage of development, others still find themselves at an early stage putting into place the appropriate infrastructural set-up for ICM operations to kick off. For further details see: ISLAMIC CAPITAL MARKETS: Principles & Practices.

Sukuk: The most common Arabic term used for Islamic securities in the market today is sukuk (plural for sakk). Literally, sukuk means certifications. Some have defined sukuk as papers representing financial obligations arising from trade and other commercial activities while others have defined sukuk as similar to trust certificates which represent a share in an asset or business venture. AAOIFI defined sukuk as "certificates of equal value representing undivided shares in ownership of tangible assets, usufruct and services, assets of particular projects or special investment activity". IFSB defined sukuk as "certificates that represent the holder's proportionate ownership in an undivided part of an underlying asset where the holder assumes all rights and obligations to such asset". Securities Commission Malaysia (SC) defined sukuk as "document or certificate which represents the value of an asset".

Resolution No. 137 (3/15): Sukuk Al-ijarah
قرار 188 (3/20) بشأن استكمال موضوع الصكوك الإسلامية
What Is the Ruling on the Islamic Lease Sukuk for the Government of Bahrain?
Is It Allowed to be a Lead Manager for Sukuk that are not Tradable in the Secondary Market?
Can the Sukuk-Holders Appoint any Trustee?
Is it allowed to sell sukuk by auction with either spot or deferred payment?
Shariah Concept for the Operation of Guarantee Facilityby Danajamin Nasional Berhad
Capital Segregation in the Operation of Danajamin
Scope of Danajamin’s Guarantee on Sukuk
Guarantee on the Obligation Arising from Purchase Undertaking
Financing Settlement Through New Financing
Is It Allowed for KFH to Act as a Manager to Issue Sukuk That Cannot Be Traded in the Secondary Market Because the Majority of Their Assets Are Debts?

Although sukuk are generally viewed as a contemporary class of Islamic financial instruments, their usage can be traced back to the 1st Century AH during the Umayyad Caliphate. For further details see: ISRA, Islamic Financial System; Principles and Operations.

قرار 188 (3/20) بشأن استكمال موضوع الصكوك الإسلامية

The regulatory framework for Islamic banking focuses primarily on regulating the banking and financial institutions as licensed entities, on the broad presumption of a debtor-creditor relationship between the industry players and the participating public. The ICM, however, focuses primarily on regulating activities, on the broad presumption of an investor-investee or investor-investment manager relationship between the industry players and the participating public. For further details see: ISLAMIC CAPITAL MARKETS: Principles & Practices.

AAOIFI Shari’ah Resolutions: Issues On Sukuk
قرار 188 (3/20) بشأن استكمال موضوع الصكوك الإسلامية
قرار رقم 178 (4/19) بشأن الصكوك الإسلامية ( التوريق ) وتطبيقاتها المعاصرة وتداولها
Is It Allowed to Subscribe to The Sukuk of the National Central Cooling Company (Tabrid) in the United Arab Emirates?
Conditions Regarding the Creation of Investment Fund on Real estate investment?
What are the Conditions for Issuing Sukuk?
Is it Allowed to Lease an Asset form the State and Lease It to the State?
What are the Rulings of Sukuk Al-Musharakah?
What are the Shariah Rulings for Sukuk Musharakah?
Can the Sukuk-Holders Appoint any Trustee?
Rulings of Exchangeable Sukuk
Rulings of Sukuk Al-Ijarah
What are the Conditions for Sukuk Ending with Ownership?
The Rulings of the Musharakah Sukuk
Is it possible to enter into a Shari’ah-compliant financial agreement with the Turkish government by purchasing the usufruct of their assets?
What is the Ruling on Purchasing and Trading the sukuk ijarah that will be Issued by the Government of Bahrain?
Is it Allowed for KFH to Participate in Issuing Sukuk Ijarah for the State of Qatar?
What’s the Fatwa Committee’s Opinion on the Islamic ijarah deal that will be executed in favor of Bahrain Petroleum Company (BAPCO)?
Issuance of Bank Negara Negotiable Notes Based on Ijarah Concept
Utilisation of Third Party’s Asset Acquired Through Sale Concept in Issuance of Sukuk Ijarah
Utilisation of Third Party’s Asset Acquired Through Sale Concept in Issuance of Sukuk Ijarah
Bidding Methods for the Sukuk BBA
Mortgage Guarantee Facility
What’s the Shariah Opinion Regarding the Frameworks for the Conversion of Debt into Shares and the Islamization of a Targeted Company?
What’s the Shariah Opinion Regarding that Attached Investment Request for the Restricted Investment Deposit Specific to KFH’s Share in a Real Estate Fund?
RESOLUTION No. 30 (5/4): "MUQARADHA" BONDS AND INVESTMENT CERTIFICATES

One of the most common sukuk classifications is based on the underlying Shari'ah contracts. These include BBA, murabahah, salam, istisna’, ijarah, musharakah, mudarabah and wakalah. For further details see: ISRA, Islamic Financial System; Principles and Operations.

AAOIFI Shari’ah Resolutions: Issues On Sukuk
Sukuk Murabahah of a Company That Mines Gold
Resolution No. 156 (5/17): The Completion Of Sukuk Al-Musharakah: The Components Of Its Assets
The Final Statement And Decision Of the 22nd Al-Baraka Forum On Islamic Economics: Kingdom of Bahrain, 1423 H.A., 2002
قرار 188 (3/20) بشأن استكمال موضوع الصكوك الإسلامية
قرار رقم 178 (4/19) بشأن الصكوك الإسلامية ( التوريق ) وتطبيقاتها المعاصرة وتداولها
آلية أخذ الموافقة الشرعية للعمل بالصكوك الإسلامية
إمكانية صياغة صكوك مشاركة تمويل محفظة
Resolution No. 181 (19/7): Regarding endowing shares, sukuk, material rights and benefits
Is it Allowed to Securitize the Assets owned by The State?
Is it Allowed to Manage the Surplus Liquidity of the Islamic Financial Institutions by Purchasing Government Sukuk that are Approved By Bank Negara Malaysia?
Is It Allowed to be a Lead Manager for Sukuk that are not Tradable in the Secondary Market?
Is it Allowed to Trade in Sukuk Istisna’ when the Project Becomes a Tangible Asset?
Is it Allowed to Enter in a Diminishing Partnership with a Party Appointed as an Agent to Manage the Asset?
Rulings of Exchangeable Sukuk
قرار رقم: 196 (2/21) بشأن استكمال موضوع الصكوك الإسلامية

The Islamic Capital Market (ICM) operates alongside the conventional financial system in which many of its supportive institutions either do not exist or are underdeveloped. For further details see: ISLAMIC CAPITAL MARKETS: Principles & Practices.

The equity market is a market where company shares, securities, and other instruments are traded under a stock exchange or in the over-the-counter (OTC) market. The market facilitates the fl ow of funds from individuals and institutional investors to corporations, as well as between investors. The market allows those with surplus funds to put their money into investments which give them returns and enables corporations to fi nance investments and new business ventures. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Similar to conventional Structured Investment Products (SIPs), Islamic SIPs are also structured such that they are linked to or benchmarked against the performance of certain underlyings, which include equities, commodities and real estate. For further details see: ISLAMIC CAPITAL MARKETS: Principles & Practices.

What are the Shari‘ah Conditions that Allow Purchasing Shares of Companies?

Corporations and government agencies use a primary market to raise funds from initial buyers of a security, such as a bond or a stock. For further details see: ISRA, Islamic Financial System; Principles and Operations.

A secondary market is a financial market where existing securities are bought and sold. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Islamic Financial Instrument as Underlying Asset in Conventional Transaction
Is It Allowed for KFH to Act as a Manager to Issue Sukuk That Cannot Be Traded in the Secondary Market Because the Majority of Their Assets Are Debts?

A contra transaction is defined as a transaction where a participating organisation allows its client to settle outstanding purchase positions against outstanding sale positions of the same securities where the orders in respect of the purchase and sale transactions are transacted within the period stipulated by the Fixed Delivery Settlement System (FDSS). For further details see: ISLAMIC CAPITAL MARKETS: Principles & Practices.

No industry can be completely immunised from issues and problems. These problems may either stem from internal faults which need to be improved over time or from external factors which require some reforms. For further details see: ISLAMIC CAPITAL MARKETS: Principles & Practices.


What Would the Transactions of Global Stock Market Be Called?

Takaful and Retakaful

The essence of takaful could be seen in the system of mutual help in relation to the custom of blood money under the ancient Arab tribal custom, and eventually was approved by the Prophet (p.b.u.h.). The basis of shared responsibility in the system of “aqila”, as practised between Muslims of Mecca (muhajirin) and Medina (ansar) laid the foundation of mutual insurance. This practice was then followed by the Prophet’s companions. Aqila is non-commercial in nature and is aimed at helping those in need without demanding contractual payments. Instead, it is motivated by the sense of brotherhood and mutual responsibility to help fellow members of the tribe who are in need of contribution. For instance, in case of unintentional murder involving two different tribes, the accused person’s paternal relatives will bear the responsibility of paying the blood money which is pooled from the group members’ contributions to the victim’s relatives. For further details see: Islamic Financial System; Principles and Operations.

Takaful stakeholders are the takaful operator, participants, nominees and beneficiaries. All these parties are dependent on each other to ensure the smooth running of a takaful practice. The main parties to a takaful contract are the operator and participants. For further details see: Islamic Financial System; Principles and Operations.

In general, there are two types of takaful: general takaful and family takaful, which is comparable to life insurance.

As in the case of reinsurance, there are two types of ReT arrangement available for takāful companies: treaty retakāful and facultative retakāful. In treaty ReT, a TO is contractually bound to cede, and the RTO is bound to assume, a specified portion of a type or category of risks taken by the former. In this form of ReT, the retakāful companies do not separately evaluate each of the individual risks covered under their treaties and are dependent on the original risk underwriting decisions made by the ceding company’s primary policy writers. Therefore, the evaluation process and capability of the ceding companies are taken into account when pricing the treaty. Facultative retakāful, on the other hand, is negotiated separately for each takāful policy taken by the ceding TO. For further details see: ISRA Research Paper; Retakaful: Risk Sharing vs. Risk Transfer: An Examination from the Shari’ah Perspective

There are currently four takaful models operated worldwide which apply to several forms of contract governing the relationship between participants and the takaful operator. The most widely practised models are mudarabah and wakalah. Some takaful operators adopt a hybrid model either combining mudarabah and wakalah or wakalah with waqf model or even mudarabah and waqf. However, the most commonly used contracts are mudarabah (profit-sharing), wakalah (agency) and waqf (endowment). For further details see: Islamic Financial System; Principles and Operations.

Despite the takaful industry expanding at an exponential rate, and with a few models developed reflecting its versatility, there are still some fiqh issues which some Muslim jurists have raised. The fact that takaful operation differentiates itself on the premise of tabarru’ rather than premium, this raises some fiqh discussions. The nature of donations has been viewed with scepticism by some Muslim scholars as it is supposed to be a unilateral rather than bilateral contract, unlike the conventional insurance contract. For further details see: Islamic Financial System; Principles and Operations.


قرار رقم: 200 (6/21) بشأن: الأحكام والضوابط الشرعية لأُسس التأمين التعاوني
قرار رقم 143 (1/16) بشأن زكاة الحسابات المقيدة وشركات التأمين الإسلامية والتأمينات النقدية ومكافآت نهاية الخدمة
Resolution No. 9 (9/2): Concerning Insurance And Reinsurance
Retakaful Business Model Based on Wakalah - Wakaf
Retakaful with Conventional Insurance and Reinsurance Company
Retakaful Service Fee as Income for Shareholders Fund
Provision of Reserve in Takaful Business
Murabaha - Standard (60)

Others


Ta'widh On Judgement Debt
Any Link between the Insurance Settlement for Damaged Goods and the Seller’s Settlement with the Purchase Undertaker?
Overcompensation by the Insurance Company above the Actual Damage
The Purchase Undertaker Does Not Want the Intermediate Seller to Incur Added Expenses for Insurance against Certain Risks (1)
The Purchase Undertaker Does Not Want the Intermediate Seller to Incur Added Expenses for Insurance against Certain Risks (2)
The Purchase Undertaker Requests the Intermediate Seller to Pass on Insurance Compensation for Damaged Goods
عمولة شركات التأمين على السلع المبيعة مرابحة
استعمال العائد الذي يتلقاه بنك البركة من بنك الجزائر لتسديد حصة البنك في شركة ضمان الودائع المصرفية
بطاقة الائتمان الإسلامية وفقاً لصيغة القرض الحسن
عمولة شركات التأمين على السلع المبيعة مرابحة
إضافة الاستثمارات إلى الاحتياطي الأساسي
مسؤولية العميل عن التأمين في معاملات المشاركة
الجهة التي تتحمل تكاليف التأمين في المرابحة
التعامل مع شركات التأمين التقليدي
تحمل المشتري البضاعة المراد شراؤها بالمرابحة
قيام البنك عند تلف البضاعة المستوردة باستيفاء مبلغ من شركة التأمين يزيد عن المبلغ الذي دفعه البنك
تأمين البنك على أمواله وممتلكاته الخاصة
Insurance Premium
Hibah In The Takaful Industry
When the Customer Can Be Charged for Shipping and Insurance
An Insurance Company Pledges to Collect Debts and to Pay the Debts It Can’t Collect
Can a Credit Cardholder Refuse the Life Insurance Contract That Comes with It?
Transferring the Right to Benefit from Insurance to a Purchase Undertaker after the Sale
Islamic Financing Insured By Conventional Insurance
Can a Muslim Company Agree to a Non-Muslim Employee’s Demand for Comprehensive Life Insurance as a Condition of Employment?
Can a Buyer of Insurance Sell the Policy to a Third Party?
Is It Allowed To Require the Lessee To Get Comprehensive Insurance for the Car and Assign the Lessor as the Policy’s Beneficiary?
Is It Allowed to Buy Shares of a Conventional Insurance Company in Order to Convert It into a Cooperative Insurance Company?
Is it Allowed to Buy Shares In a Company that Make Insurance Life the Inventor-Partner?
What is the Fatwa Committee’s Opinion about the Entity Responsible for Repairing Rented Cars Damaged Due to Floods?
Is it Allowed to Purchase a Real Estate Properties that Are Leased to Two Companies where the First Is a Health Insurance Company and the Second is a Financial Collection Company?
Is it Allowed for KFH to Reserve the Right to Collect the Rent Payments from a Conventional Insurance Company if the Customer Violates any of the Terms of Ijarah Financing Agreement?
Is it Allowed to Stipulate that Seller can Re-buy the Commodity if the Buyer Dies?
What is the Ruling on Establishing a Takaful Fund for Customers Indebted to KFH’s Local Real Estate Department?
What’s the Fatwa Committee’s Opinion Regarding the Account of the Members’ organization, the Condition for Cancelling the Insurance and the Insurance Intermediaries’ Commission?
What’s the Fatwa Committee’s Opinion Regarding Mortgage Takaful in the Event of Death or Permanent Disability?
What’s the Fatwa Committee’s Opinion Regarding Amendments Added to the ‘Debt Insurance Policy’ by the First Takaful Insurance Company?
What’s the Permissible Means to Rectify the Situation Whereby KFH has Completed the Procedures for the Investment in a Company Covered by Conventional Insurance?
What is the Ruling on the e-Health Insurance Project Suggested by the Public Service Company?
Takaful Coverage for Islamic Financing
Takaful Coverage for Conventional Loans
Takaful Coverage for Conventional Credit Card Product
Retakaful Service Fee as Income for Shareholders Fund
Provision of Reserve in Takaful Business
Wang Simpanan KWSP, SOCSO Dan Seumpamanya Bagi Ahli Beragama Islam Yang Meninggal Dunia
Status Pampasan Polisi Insurans Konvensional Selepas Kematian Pembeli Polisi
Hukum Mempromosikan Produk Insurans Konvensional Menurut Perspektif Syariah
Kajian Hukum Insurans Am
Hukum Pelaksanaan Takaful Di Malaysia
Hukum Ke Atas Produk Investment Link Menurut Islam
Is it allowed for the Bank to insure its wealth and its exclusive properties?
What is the Ruling on Paying Zakat Funds to Kuwait Heart Foundation (KHF) and Takaful Prisoners Care Fund (TPCF)?
Is it allowed for the Bank to insure its wealth and its exclusive properties?
Is It Allowed for KFH to Purchase Shares in a Company Whose Inventors’ Lives Are Insured to Prevent the Collapse of the Company in the Event of the Death of Its Inventor?
RESOLUTION No. 9 (9/2): INSURANCE AND REINSURANCE
Charging Against Insurance in Murabahah Transactions
Liability of Goods Damage Prior to Delivery in Murabahah Transactions
Insurance of Sold Commodity in Murabahah Transactions
Addition of Insurance Installments in the Value of the Commodity
Calculation of Profits on Insurance Service
Application of Musahamah Concept in Commercial General Takaful Plan

Islamic Financial System ©

 

 


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