Islamic Capital Market

An Islamic capital market, as is the case of a conventional capital market, constitutes an integral part of the Islamic financial system. In general, an Islamic capital market comprises two main components: the debt market and the equity market. They are indispensable for the efficient mobilisation of resources and their optimal allocation. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Development


Framework


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

Sukuk Structure

The most common structure of sukuk ijarah applied in the market is a sale and leaseback structure. Thus, an issuer that wants to raise sukuk would have to identify assets to sell and leaseback. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Resolution No. 137 (3/15): Sukuk Al-ijarah
Resolution No. 110 (4/12): "Lease Ending with Ownership and Leasing Bonds"
Ijarah Sukuk And Shari’ah-compliant Securities As Underlying Assets In Tawarruq Transactions
Is it Permissible to Lease a Leased Asset?
Is it Permissible for KFH to Act As a Joint Lead Manager in Issuing Sukuk for the Dubai Civil Aviation Authority (DCAA)?
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?
Rulings of Sukuk Al-Ijarah
What are the Conditions for Sukuk Ending with Ownership?
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 Sukuk al-ijarah issued by the Government of Qatar?
What is the Ruling on Purchasing and Trading the sukuk ijarah that will be Issued by the Government of Bahrain?
What’s the Fatwa Committee’s Opinion Regarding Sukuk Ijarah Issued by the Monetary Agency of Bahrain (MAB) on Behalf of the Bahraini Government?
Is it Allowed for a Company to Lease the Property to a Third Party Providing that the Turkish Treasury Guarantees the Payment of the Rent?
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)?
Is it Allowed to Accept a Cash Reward in Return for KFH’s Promise to Participate in Sukuk Ijarah Investment Deal?
Utilisation of Third Party’s Asset Acquired Through Mudarabah Contract as Underlying Asset in Issuance of Sukuk Ijarah
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
Sukuk Ijarah and Shariah Compliant Shares as Underlying Asset in Tawarruq Transaction
Ownership of Underlying Asset in Sukuk Based on Ijarah Contract
What’s the Shariah Opinion Regarding Qatar’s Sukuk Ijarah?
قرار رقم: 196 (2/21) بشأن استكمال موضوع الصكوك الإسلامية

Sukuk can be structured in various ways in accordance with the nominated contract which is approved by the Shari'ah and that suits the preference of issuers. Sukuk can accordingly be designed using the agency structure based on the contract of wakalah. The agency contract is selected for the purpose of managing and investing the proceeds generated from the sukuk issuance. This contract is called wakalah bi al-istithmar. For further details see: SUKUK: Principles and Practices.


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
TA`WIDH - SAC SC Malaysia

Issues and Challenges

According to Moody’s definition, asset-backed ṣukūk are those whose “investors enjoy asset-backing; they benefit over some form of security or lien over the assets, and are therefore in a preferential position over other, unsecured creditors. In other words, in the event the issuer were to default or become insolvent, the noteholders would be able to recover their exposure by taking control of and ultimately realising the value from the asset(s). It also requires the element of securitisations to be present―true sale, bankruptcy remoteness and enforceability of security. On the other hand, asset-based ṣukūk are those for which “the originator undertakes to repurchase the assets from the issuer at maturity of the Sukuk, or upon a pre- defined early termination event, for an amount equal to the principle repayment. In such a repurchase undertaking, the true market value of the underlying asset (or asset portfolio) is irrelevant to the Sukuk noteholders, as the amount is defined to be equivalent to the notes. In this case, noteholders have no special rights over the asset(s) and rely wholly on the originator’s creditworthiness for repayment, either from internal sources or from its ability to refinance. For further details, see ISRA Research Paper; Parallels between Asset-Backed Ṣukūk and Securitization (IRP8).

The Existence of Underlying Asset Throughout the Sukuk Maturity Tenure
Is it Allowed for KFH to Purchase and Trade in Istisna’ Sukuk for Periods Reaching Up to 10 Years in Order to Finance Projects Whose Construction Period Might Be 2-3 Years?

Currently, sukuk are viewed as debt instruments. Thus, investors will usually require a return based on a spread over a certain benchmark. If we recall the SABIC deal, for example, it was priced at three months SIBOR plus 0.40%. In many global sukuk deals, LIBOR is a frequently used benchmark. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Can the Bank Inform the Investor of His Expected Profit in Commodity Murabahah with Variations Based on the Currency Used?
Is It Permissible for Two Parties to Agree to a Currency Exchange at a Price Different from the Prevailing Rate?
Contractual Price of Istisna'a Linked to the Period of Execution
When a Government Agency Hires a Contractor to Build Housing for Citizens, Is It Lawful for the Citizens to Request Changes to the Basic Plan if They Agree to Pay for Them?
The price of the purchased commodity (Muslam Fih)
Change of the contract price due to additions in the required work
Is It Permissible for KFH to Round the Fractions Off to the Nearest Whole Number Profit Rate or Should KFH Take the Percentage as It Is?
Is It Permissible for KFH to Sell Machines on a Murabahah Basis and Include the Price of Assembly Expenses in the Contract or Must They Be Deducted from the Machine’s Price?
Is It Permissible for KFH to Increase the Rate of Murabahah in Upcoming Deals with a Customer Who Frequently Make Late Payments of the Murabahah Installments?
Is It Permissible for KFH to Sell Something by MurÉbaÍah at a Profit Rate to Be Agreed Upon on the Day of Delivery?
Is It Permissible for a Person (Principal or Agent) to Quote a Price for Goods Before Taking Ownership of Them?
Agent = Buyer = Seller
Is It Permissible to Add a Ratio to the Price Against Any Delay in Payment But in Case Payment Is Completed on the Due Date This Ratio Would Be Discounted for the Customer?
Is It Permissible to Advertise a Deferred-Payment Sale by Mentioning the Spot Price and Deferred Price of a Particular Commodity?
Dollars Are Purchased at Different Prices on the Same Day; Which Price Should the Customers Be Charged?
Ibra’ In Variable Rate Bai` Bithaman Ajil Product
A Discount for Accelerated Payment in a Delayed Payment Contract
A Shari‘ah-Compliant Alternative to an Option Contract
Does the Customer Who Purchased a Car Have a Right to Benefit from the Discount Given to KFH After Completion of the MurÉbaÍah Deal with Him?
What is the Shariah View on How to Calculate the Sale Price in a Murabahah Transaction?
SETTING TRADERS’ PROFITS by Dr Yūsuf al-Qaraḍāwī
Resolution No. 174: Adding a profit rate to the price quote of a commodity that the client wishes to purchase in murābaḥah
Can a Contractor Renegotiate to Get a Lower Price from Its Subcontractors without Passing the Discount to the Customer Who Accepted Its Original Price?
Can the Murabahah Seller Raise the Markup if the Deal Involves Advance Payment That Will Extend the Deal’s Timeline?
Charging the Purchase Undertaker for Assembly of Purchased Equipment
Delay in Setting the Profit Margin of a Murabahah Sale to the Day of Delivery
Delay in Setting the Profit Margin of a Murabahah Sale to the Day of Delivery
Does the Buyer Have a Right to the Discount Given to the Intermediate Seller?
Giving the Bank’s Accountholders a More Attractive Price than Non-Customers
How to Calculate the Selling Price in Murabahah
+ more

The rating of Sukuk represents the evaluation of default risk of an issuer and/ or Sukuk. This is usually done by special companies called Credit Rating Agencies (CRAs). For further details see: ISLAMIC CAPITAL MARKETS: Principles & Practices.

Sukuk are typically structured similar to conventional bonds with respect to their exposure to the risk of default. However, the remedial options to mitigate this risk in the form of restructuring may be more challenging for sukuk. Since sukuk are a recent innovation in the capital markets, issues such as how to unwind, restructure or enforce Shari'ah-compliant instruments and entities pose more difficulties than conventional securities. For further details see: SUKUK: Principles and Practices.

The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 160th Meeting
جدولة كامل الدين أو جزء منه بالتراضي أو تطبيقًا لحكم قضائي
إعادة جدولة الديون
مدى جواز تسجيل المبالغ الزائدة عن أصل الدين ضمن أرباح البنك
Extension of Murabahah Period
Increasing A Murabahah Contract’s Period And Consideration
Murabahah Debt Restructuring with Central Banks as Guarantor
Settling The Debt Of A Murabahah With Another Murabahah
Is there any mechanism to adopt to reschedule the customers’ debt so that the monthly payment is reduced and the number of years is increased?
Is It Allowed to Charge Rescheduling Fees Equivalent to the Actual Expenses Incurred by the Lessor?
Is it Allowed to Charge Fixed Rescheduling Fees that Are Based on Commercial Standards so that the Fees Charged by KFH Are in Line with Those Charged by Other Banks?
Is it Allowed to Charge for Rescheduling the Payment of Installments upon The Customer’s Request?
Late Payment and Additional Recourse Charge
Restructuring and Rescheduling in Islamic Financing Agreement
Financing Settlement Through New Financing
What's the Shariah Opinion Regarding the Proposed Amendments to the Murabahah to the Purchase Order Contract Concerning the Rates, Commissions, Currency Differences and Postal Fees?
Default in Payment of Murabaha Debt
Solutions to Settle the Murabaha Debt

Islamic Equity Market

Islamic Equity Market Instruments are Shares or Stocks, Stock Index Futures, Short-selling, Islamic Real Estate Investment Trusts
(REITs), Islamic Exchange Traded Funds (Etfs). For further details see: Islamic Financial System; Principles and Operations.

Shari’ah stock screening is a process that filters a pool of stocks from a particular database separating those stocks that conform to Shari’ah principles from those that do not. Shari’ah screening is a process of distinguishing between Shari’ah compliant and Shari’ah non-compliant investments; compliant investments conforming to the principles of the Shari’ah and non-compliant investments that are tainted, according to Shari’ah principles. For further details, see Shari'ah Stock Screening: A brief outlook.

Deferred Sales of Shares in a Company Whose Cash Assets Exceed Its Tangible Assets
Resolution No. 122 : Management of a stock portfolio
Circulation of Shares
Trading In The Shares Of Shari’ah-Compliant Companies That Are Involved In Riba-Based Transactions With Conventional Banks
Resolution No. 181 (19/7): Regarding endowing shares, sukuk, material rights and benefits
Is It Allowed to Trade Shares in Companies Whose Core Activities Are Lawful but Which Borrow and Lend on Interest?
What Is the Ruling on Buying and Selling Shares That Represent a Mix of Tangible Assets and Debts?
What Is the Ruling in Dealing with Shares of a Company that Has Lawful activities but is Involved in Usurious Debts?
What are the Rulings of Purchasing Existing Companies and Restructuring them so that they Conform to the Investment Requirements of the Shari’ah?
Is It a Condition in Establishing an Investment Portfolio to deal only with Companies that are Full Shari‘ah Compliance?
Is it Allowed to Sale and Purchase Sahres of Islamic Companies with Deferment?
What are the Conditions to Invest with a Company that Has a Shari’ah Board?
Is it Allowed to Lease Shops that Buy some non Permissible Products?
Is it Allowed to Buy a Property Leased for Forbidden Activities?
Is it Allowed to Buy or Sell Shares of Companies that are Involved in Prohibited Activities while there Core Activity is Permissible?
Is it allowed to sell sukuk by auction with either spot or deferred payment?
Is it allowed to purchase two properties in Europe whereby the first is a warehouse and the second is a building rented by a foreign bank?
Is it permissible to buy a leasing company which has some assets in the form of treasury bonds?
How permissible is it to subscribe to shares of Al-Qarin Petrochemical Products Company?
Is it permissible to take the shares of companies as collateral?
Is it permissible to finance projects which include a portion of haram activities providing their increasing significance in the society?
Is it allowed to conduct tawarruq to purchase secondary shares of a mobile phone service provider?
Involvement and Investment in Fund activity that has Presence of Riba
What’s the Fatwa Committee’s Opinion Regarding the List of the Companies to Be Included in Al-Muthanna Investment Index Fund?
Depositor Customer’s Investment Fund from Doubtful Sources
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?
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?
Is it Permissible to Invest and Trade the Shares of a Company Whose Purposes Are a Mixture of Permissible and Prohibited Activities?
Is it Allowed for KFH to Purchase an Ownership Certificate for Metals on Spot Basis and Sell it to the Purchase Undertaker on Deferred Basis With an Attendant Price Differential?
Is it Allowed for KFH to Market a Fund Whose Main Activity is Investment in Shares of Companies Included in the Dow Jones Islamic Market Index?
+ more

Equity market indices are a mainstay feature of all established equity capital markets the world over. Such an index is basically a number computed, in real time, to reflect the current price level of its designated components. It is often used as a benchmark or bell weather of the performance of a given stock exchange. The indices are frequently quoted in the media when reporting on the performance of equity markets. These indices are also commonly discussed by financial analysts and stock market observers. Famous indices include the Dow Jones, Standard & Poor’s 500 and the NASDAQ in the US, FTSE 100 in the UK and the Nikkei in Japan. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Although Islamic and conventional funds have similar economic objectives - such as pooling investors, preserving the capital and optimising returns - they are different in essence and structure, particularly in terms of: investible universe, role of Shari'ah advisor, purification, fee structure. For further details see: ISLAMIC CAPITAL MARKETS: Principles & Practices.

Valuation is a process of determining the intrinsic or the “true” value of equities in order to assist investment decisions of buying or selling a stock. In other words, how are the prices of securities determined in the market and do these market prices reflect their intrinsic value? The purpose of valuation is to determine the real meaning of the disclosed profit or to determine the true future value of the security, company or asset. Valuation not only helps us to understand the real value but also what are the sources of the value. Valuation is also important for the issuing companies as it can illustrate successful company operations, e.g., during the launch of a new product and to establish the company’s performance track record. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Is it Allowed to Evaluate Real Estate that Belongs to a Conventional Insurance Company?
Is it Allowed for KFH to Take a Fee in Return for the Facilities Granted to the Customer in a Letter of Guarantee?
What's the Shariah Opinion Regarding the Expansion of a Mudarabah Investment in Real Estate Between the Bank and Capital Provider to Involve Othe Investors?
What's the Shariah Opinion Regarding the Expansion of a Mudarabah Investment in Real Estate Between the Bank and Capital Provider to Involve Othe Investors? (Continued)
Expropriated Property
سندات المقارضة

Bursa Malaysia define Islamic stock broking services as 'the business of trading in securities carried out by an Islamic participating organisation on the stock market of Bursa securities, whether on full-fledged basis or via an Islamic window services'. In other words, Islamic stock broking is an alternative trading mechanism for investors to invest in shares and securities based on Islamic principles. For further details see: Islamic Equity Market, Securities Commission Malaysia.

Using a Brokers to Find a Lessee
Can a Broker’s Fee Be Recovered if a Sale is Terminated?
Can Someone Who Finds Clients to Lease Property Charge a Fee for Doing so?
Is It Allowed for a Company to Assign an Agent to Buy Shares of the Company on Its Behalf and Then Sell Them to Himself?
Is it Allowed to Charge a Commission on Every Electronic Purchase and Sale Order of Shares?
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?
Is It Allowed for KFH to Open an Account in a Brokerage Firm that Reserves the Right to Impose Interest on the Overdue Amount Until the Payment is Made?
Is It Allowed to Customize a Website for KFH Customers to Buy and Sell Shares of Kuwaiti Companies Online in Exchange for Charging Fees on Each Transaction Executed by a Customer?
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?
Is It Allowed to Provide e-Trading Service That Enables Customers to Trade Shares on a Stock Exchange and Provide Customers with Guidance of Listed Islamic Companies?

Venture Capital: venture capital is typically provided to new, high potential, growth companies in the interest of generating a return through a realization event, such as an initial public offering (IPO) or a trade sale of the company. Venture capital investments are generally made in the form of cash in exchange for shares of the venture company (invested company). (Securities Commission Malaysia, 2008: 122).

Private Equity (PE) is the investment of funds into a private company with the potential growth, giving the investor an opportunity to realise huge returns upon sale of the company later. For further details see: ISLAMIC CAPITAL MARKETS: Principles & Practices.


Crowdfunding


Islamic Structured Investment Products

Equity-Linked Notes (ELNs) are the most applied in SIPs in both Islamic and conventional markets. An (ELN) is a type of SIP with its returns tied to the performance of an underlying equity, which can be a single stock, a basket of stocks or an equity index. For further details see: ISLAMIC CAPITAL MARKETS: Principles & Practices.

Interest Rate-Linked Notes (IRLNs) are capital-protected instruments where the interest and additional returns are linked to the performance of the underlying interest rate index. For further details see: ISLAMIC CAPITAL MARKETS: Principles & Practices.

A Commodity-Linked Note (CLN) is a type of SIP where the return is tied to the performance of a commodity or basket of commodities over a certain period. For further details see: ISLAMIC CAPITAL MARKETS: Principles & Practices. 

This is a type of SIP which offers fixed income returns where the coupon or maturity payment is tied to the performance of an underlying which may be a single foreign currency, a basket of foreign currencies or FX futures. For further details see: ISLAMIC CAPITAL MARKETS: Principles & Practices.

Credit-Linked Notes (CLNs) are SIPs where the principal repayment and coupons are linked to the creditworthiness of the issuer and a third party (known as the reference entity). For further details see: ISLAMIC CAPITAL MARKETS: Principles & Practices.


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

Primary Market


Contra Trading


Issues and Challenges

Ownership means the recognition by the Sharīʿah of people’s ability to utilise a thing (ʿayn) or a benefit (manfaʿah) by making use of it directly, by exchanging it, or by giving it freely to someone else, thus excluding all encumbered disposition.

Is It Permissible to Engage in a Sale Contract on Deferred Basis with a Client Who Directly Communicated with the Producer Abroad to Send Certain Goods?
Will Shipping the Goods on the Request of the Purchase Undertaker Be Considered as Only Taking Possession Without Ownership?
What Are the Rules of Taking Possession in Currency Trading with Regard to the General Practices of Banks?
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 156th Meeting
A Discrepancy is Found in Murabahah Goods That Were Sold before Possessing Them
Any Link between the Insurance Settlement for Damaged Goods and the Seller’s Settlement with the Purchase Undertaker?
RESOLUTION No. 76/7/8: PROBLEMS OF ISLAMIC BANKS
Resolution No. 112: The permissibility of transferring the title of the leased property to the lessee and perfecting a lien on the property
Resolution No. 120: Putting the name of the Corporation in newspaper ads along with the names of agencies selling cars by installments
Resolution No. 151: the Corporation appointing the purchaser as an agent to determine and receive what he will eventually buy
Resolution No. 152: The Trade Line Scheme that the Corporation wishes to use in dealing with its clients
Resolution No. 157: The Corporation selling ready-mixed concrete
Resolution No. 159: The Corporation selling gold, silver and currencies to its clients
Resolution No. 161: The permissibility of the seller of a commodity to Al Rajhi providing a guarantee of the party purchasing from Al Rajhi
Buying A Portion Of A Land Through Murabahah
Can a Contract Be Signed with a Purchase Undertaker before the Official Ownership Transfer Procedures Are Completed? (1)
Can Real Estate That Is Bought and Resold Be Registered Directly in the Final Buyer’s
The Bank Uses the Purchase Undertaker’s Import License to Purchase a Foreign Good
The End Buyer Wants to Pay the Original Seller a Sum to Settle a Price Dispute between the Original Seller and the Intermediate Buyer
The Purchase Undertaker Does Not Want the Intermediate Seller to Incur Added Expenses for Insurance against Certain Risks (2)
Transporting The Subject Matter Under The Name Of The End Customer
Using Murabahah to Finance Charitable Projects
دفع الزكاة عن أرباح أموال المساهمين أو الاحتياطيات
Deferred Installment Sale: Issue Of Selling Assets That Is Not In One’s Possession And Compensation For Refusal To Buy The Subject Matter
Insurance Premium
Murabahah Mudawwarah: Actual Or Constructive Possession
Resolution No. 50 (2/6): Rulings on Installment Sales
Cancelling A Murabahah Contract
Ensuring Proper Separation Of Contracts
Murabahah With Exporting And Importing Companies
+ more

Speculation, in practice, takes place as a result of holding securities for relatively short durations, called day trading. For further details see: ISLAMIC CAPITAL MARKETS: Principles & Practices.

Short-selling refers to the practice of the sale of securities (in this case, shares) not absolutely owned by the selling party at the time of sale. For further details see: ISRA, Islamic Financial System; Principles and Operations.

Market liquidity can be defined as "the ability to trade an asset at short notice, at low cost and with small impact on its price". For further details see: Measuring and Managing Liquidity Risk.

What are the Rulings for a Short Term Liquidity Management Fund?
Islamic Financial Instrument as Underlying Asset in Conventional Transaction

 

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