...Miscellaneous Sources Can an Islamic State Levy Modern Taxes? Public finance deals with the income and expenditure of a state. It consists of the efficient management of taxes and other sources of revenue, proper budgeting and effective control over state expenditures. In this chapter, we would study in detail the sources of revenue, while in the next chapter we would discuss budget and expenditure of the Islamic state. Sources of revenue of the public treasury (Bait-ul-Mal) in the Islamic state in the time of Prophet Muhammad (PBUH) and early caliphs included Zakat, Ushr, Khums, Fai, Jizyah and Kharaj. The first five sources have been mentioned in the revealed book of Islam, while the sixth arose out of the extended application of the Fai properties of the Islamic State. These sources were tapped and utilized by the state to defray its essential expenses incurred on discharging various functions, and also with a motive to distribute wealth among the poor and destitute classes of the society. Let us discuss these sources briefly as under. 1- Az-Zakat ‘Zakat’ or ‘Zakah’ literally means ‘growth’ or ‘increase’ or ‘nourishment’ Another derivative of this word carries the sense of purification. Thus, Zakat means ‘to grow’, ‘to increase’ or ‘to purify’. It is because of the fact that Zakat helps the purification of human soul from miserliness, selfishness, lust and greed of wealth and, thus, it paves the way for its growth and development. Technically, Zakat is a compulsory contribution...
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...This page intentionally left blank An Introduction to Islamic Law The study of Islamic law can be a forbidding prospect for those entering the field for the first time. Wael Hallaq, a leading scholar and practitioner of Islamic law, guides students through the intricacies of the subject in this absorbing introduction. The first half of the book is devoted to a discussion of Islamic law in its pre-modern natural habitat. The author expounds on the roles of jurists, who reasoned about the law, and of judges and others who administered justice; on how different legal schools came to be established, and on how a moral law functioned in early Muslim society generally. The second part explains how the law was transformed and ultimately dismantled during the colonial period. As the author demonstrates, this rupture necessitated its reinvention in the twentiethcentury world of nation-states. In the final chapters, the author charts recent developments and the struggles of the Islamists to negotiate changes which have seen the law emerge as a primarily textual entity focused on fixed punishments and ritual requirements. The book, which includes a chronology, a glossary of key terms and lists for further reading, will be the first stop for those who wish to understand the fundamentals of Islamic law, its practices and its history. w a e l b . h a l l a q is James McGill Professor in Islamic Law in the Institute of Islamic Studies at McGill University. He is a worldrenowned...
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...an Introduction to Islamic Finance = = = jìÑíá=jìÜ~ãã~Ç=q~èá=rëã~åá `çåíÉåíë= Foreword Some Preliminary Points _ÉäáÉÑ=áå=aáîáåÉ=dìáÇ~åÅÉ= qÜÉ=_~ëáÅ=aáÑÑÉêÉåÅÉ=ÄÉíïÉÉå=`~éáí~äáëí=~åÇ=fëä~ãáÅ= bÅçåçãó= ^ëëÉíJÄ~ÅâÉÇ=cáå~åÅáåÖ= `~éáí~ä=~åÇ=båíêÉéêÉåÉìê= mêÉëÉåí=mê~ÅíáÅÉë=çÑ=fëä~ãáÅ=_~åâë= 6 9 V NM NO NQ NR Musharakah qÜÉ=`çåÅÉéí=çÑ=jìëÜ~ê~â~Ü= qÜÉ=_~ëáÅ=oìäÉë=çÑ=jìëÜ~ê~â~Ü= Distribution of Profit Ratio of Profit Sharing of Loss 17 NV OP 23 24 24 qÜÉ=k~íìêÉ=çÑ=íÜÉ=`~éáí~ä= j~å~ÖÉãÉåí=çÑ=jìëÜ~ê~â~Ü= qÉêãáå~íáçå=çÑ=jìëÜ~ê~â~Ü= Termination of Musharakah without Closing the Business OR OU OU 29 Mudarabah _ìëáåÉëë=çÑ=íÜÉ=jìÇ~ê~Ä~Ü= aáëíêáÄìíáçå=çÑ=íÜÉ=mêçÑáí= qÉêãáå~íáçå=çÑ=jìÇ~ê~Ä~Ü= `çãÄáå~íáçå=çÑ=jìëÜ~ê~â~Ü=~åÇ=jìÇ~ê~Ä~Ü= 31 PO PP PQ PR ÅçåíÉåíë= Musharakah & Mudarabah as Modes of Financing mêçàÉÅí=cáå~åÅáåÖ= Securitization of Musharakah Financing of a Single Transaction Financing of the Working Capital 37 PU 39 42 43 pçãÉ=lÄàÉÅíáçåë=çå=jìëÜ~ê~â~Ü=cáå~åÅáåÖ= Risk of Loss Dishonesty Secrecy of the Business Clients’ Unwillingness to Share Profits House Financing on the Basis of Diminishing Musharakah Diminishing Musharakah for Carrying Business of Services Diminishing Musharakah in Trade RO aáãáåáëÜáåÖ=jìëÜ~ê~â~Ü= 52 54 55 56 RT 59 63 63 Murabahah fåíêçÇìÅíáçå= Some Basic Rules of Sale Bai’ Mu’ajjal (Sale on Deferred Payment Basis) 65 SR 66 70 jìê~Ä~Ü~Ü= pçãÉ=fëëìÉë=fåîçäîÉÇ=áå=jìê~Ä~Ü~Ü= Murabahah...
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...The Journal of Applied Business Research – January/February 2009 Volume 25, Number 1 The Evolution Of Islamic Finance In Southeast Asia: The Case Of Malaysia (1) Rika Nakagawa, Institute of Developing Economies, Japan ABSTRACT The purpose of this paper is threefold: to explain why the Islamic financial system was introduced in Malaysia; to outline how the Malaysian government has promoted this system; and to analyze the development of the Islamic financial system with a specific focus on the banking sector. In Malaysia, the first Islamic bank, Bank Islam Malaysia Bhd., was established in 1983. One turning point of the Islamic financial system in the country was the Financial Sector Master Plan presented by the central bank in 2001. The government, in accordance with the plan, has taken a strong initiative in the development of an Islamic financial system. As a result, the country has succeeded in promoting a comprehensive Islamic financial system, banking and insurance sectors and capital markets. In the banking sector, this paper reveals that the profit-sharing system does not seem to be popular in this country although the reward system is central to Islamic Finance. In order for further development of the Islamic financial sector, the reasons why the percentage of contracts under the profit-sharing system is small need to be analyzed. Keywords: Islamic Finance in Malaysia, Financial Sector Master Plan, New Economic Policy, Bank Islam Malaysia Bhd., Islamic Banking Scheme...
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...civilization and virtually wiped us out of the intellectual map of the world. In Part – II we have ventured to suggest some remedial measures following which we may be able to leap forward and reclaim our lost glory and respectable place in the comity of nations. Of late, we ran into one of the most disturbing and distressing report concerning the state of education and research in the Muslim world visà-vis the Judao-Christian world. For instance, it was reported that the Jewish population around the world is almost 14 million. With this numerical strength, they have been able to produce thus far 163 Nobel Laureates.1 The Muslims, on the other hand, are more than one billion in population and have produced only eight Noble prize winners so far2. This contrast became further embarrassing when it was read in conjunction with another survey report wherein it was underscored that the Muslims were terribly lagging behind in the field of knowledge and education from the rest of the world both in quantitative and qualitative terms. It was reported that there were nearly 500 universities in the entire Muslim world3 and they too were hardly any better than ordinary colleges as they weren’t engaged in any research work or the generation of a new knowledge. While it was stated that Tokyo alone has more than one thousand universities, some of which could be compared with the best universities of the world. While the fact remains that man (or Adam) * Prof. Dr. Muhammad Saleem, Dean, Faculty...
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...Meezan Bank’s Guide to Islamic Banking Meezan Bank’s Guide to Islamic Banking 1 Meezan Bank’s Guide to Islamic Banking Meezan Bank’s Guide to Islamic Banking Written by Dr. Muhammad Imran Ashraf Usmani Ph. D. Islamic Finance Assistance in translation, editing and compilation by Zeenat Zubairi DARUL-ISHAAT Urdu Bazar Karachi Ph: 021-2631861 2 Meezan Bank’s Guide to Islamic Banking Copyright Regd. No. Publications Rights Reserved with DARUL - ISHAAT KARACHI FIRST EDITION 2002 PRINTED AT ILMI GRAPHICS PUBLISHER DARUL - ISHAAT URDU BAZAR KARACHI-1 PAKISTAN. E-mail : ishaat@digicom.net.pk Ph: 021-2631861 AVAILABLE AT IDARATUL MA’ARIF, DARUL ULOOM, KORANGI, KARACHI DISTRIBUTOR IN U.K. AZHAR ACADEMY LTD., at continenta (London) Ltd.. Cooks Road, London E-15 2pw This copy cannot be sold in the U.K., unless sold by or authorised by the 3 Meezan Bank’s Guide to Islamic Banking TABLE OF CONTENTS Preface 7 SECTION I INTRODUCTION TO ISLAMIC ECONOMIC SYSTEM 1 2 3 Chapter 1: Chapter 2: Chapter 3: The Islamic Economic System Factors of production in Islam The objectives of the distribution of wealth in Islam 11 19 29 SECTION II RIBA, ITS PROHIBITION & CLASSIFICATIONS 4 5 6 7 8 Chapter 4: Chapter 5: Chapter 6: Chapter 7: Chapter 8: Riba in the Qur'an Riba in Hadith Riba and its types Commercial interest and usury Simple and compound interest 34 36 42 53 62 SECTION III ISLAMIC CONTRACT 9 10 11 12 Chapter 9: Chapter 10: Chapter...
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...Introduction to Islamic Insurance K. M. Mortuza Ali 1 K. M. Mortuza Ali Managing Director Prime Islami Life Insurance Limited 29 Dilkusha C/A Raj Bhaban (6th Floor) Dhaka – 1000 Phone – 9560889, 9570729 (Off) 8353552 (Res) Mobile – 019-366617 Fax – 880-2-9564390 Email – plicl@bdonline.com kmortuza@bdmail.net 2 Chapter (I) Basic ideas about Risk & Insurance 1. 2. 3. 4. 5. 6. 7. 8. 9. What is Risk? How do we distinguish between pure risk and speculative risk ? How risk is handled? Why every risk is not insured? What are the characteristics of Insurable risks? What are the requisites of Insurance for Covering Risk? What are the Principles of Insurance contract? What are the different types of Life Insurance policies? How Insurance is different from Gambling? 10. What is the main function of insurance? 11. What is the greatest value of insurance? 12. What is the Purpose of Life Insurance? 13. How insurance protects value of life? 14. How life Insurance schemes meet the saving needs? 15. What are the social and economic values of Insurance? 16. What is the Actuarial principle of Life Insurance? 17. What is reinsurance? 18. What are the different methods of reinsurance? 1. What is Risk? Risk has been defined as the uncertainty as to the occurrence of an economic loss. It is the passivity of adverse result from a desired outcome. Risk and probability are not synonymous. We must understand the difference between risk and probability. The terms hazard and peril are...
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...ISLAMIC PROJECT FINANCE AND PRIVATE FUNDING SCHEMES INTRODUCTION From Islamic perspective there is no objection to such private provision (private sector companies) but there is always involve Shariah compliance issues. There is borrowing on the basis of riba is haram. The adoption of Islamic financing techniques such as istisna can avoid such difficulties and discounting of future income is seen as legitimate by Islamic economist. This technique can be used to calculate for social rate of return in Muslim societies. Increased knowledge can reduces uncertainty involved in any project but it will take time to reach the fruition. The modern techniques of project appraisal can be used by Islamic financial institutions and if there is commercial funding method that gives the appropriate needs and circumstances of Muslims countries and communities. As raise the private sectors, good information flow is important for the project to be properly evaluated. The issue of discounting is potentially causes problems from the perspective of Shariah. Discounting rate is equated with interest rate which constitutes riba. It also useful tool if the decision on the merits of different projects are to be made on the basis of comparison from their present value. Such the calculations enhance the knowledge of decision makers. Islamic financing instruments are used to replace the interest-based borrowing and to ensure the financial arrangements are efficient. 2. State arrangement of project...
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...[pic] ASA Tower, 23/3 Bir Uttam A.N.M. Nuruzzaman Sarak, Shymoli,Dhaka. 1207. Internship Report On “Modes of Investment of IBBL” Submitted To Dr. Md. Abdul Hye Professor & Dean Faculty of Business ASA University Bangladesh (ASAUB) Submitted By Sheikh Refath Jessan ID. No: 091-12-0293 Section: ACT-6A Major: Accounting Batch: 6th Program: BBA ASA University Bangladesh (ASAUB) Date: December 30, 2012 December 30,2012 Dr. Md. Abdul Hye Professor & Dean, Faculty of Business ASA University Bangladesh (ASAUB). Dear Sir: SUBMISSION OF INTERNSHIP REPORT I have the pleasure to submit the internship report on ‘Modes of Investment of Islami Bank Bangladesh Limited (IBBL)’ for your kind perusal and evaluation. It is a matter of immense pleasure for me to have the opportunity to prepare internship report on, ‘Modes of Investment of Islami Bank Bangladesh Limited (IBBL)’. I am grateful to you for allowing me to carry out such work and necessary co-operation and assistance from you during my report. I believe that the knowledge and experiences acquired while conducting this study will help me in many ways and the readers as well in future. I have tried my best to accommodate my ideas and findings as specifically as you asked about within the time frame and resources available I would like to mention that there might be some errors in the report...
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...92 Singapore Academy of Law Journal (2012) 24 SAcLJ UNILATERAL CONVERSION OF A CHILD’S RELIGION AND PARENTAL RIGHTS IN MALAYSIA The issue of unilateral conversion of a child to Islam by one parent who has embraced Islam and the subsequent tussle over the custody of the child between the disputing parents in the civil court and the Syariah Court has of late ignited controversy in Malaysia. This article seeks to examine the extent of the non-Muslim parent’s right to determine the child’s religion, the impact of the unilateral conversion of the child to Islam on the parents’ custodial right in a family dispute and how the existing legal and judicial systems in Malaysia can be strategically used to achieve one’s aim. KUEK Chee Ying LLB (Hons) (University of Malaya), LLM (University of Malaya); Lecturer, Faculty of Business and Law, Multimedia University. TAY Eng Siang LLB (Hons) (University of Malaya), LLM (Distinction) (University of Malaya); Lecturer, Faculty of Business and Law, Multimedia University. I. Introduction 1 1 Malaysia is a multi-ethnic and multi-religious country. The Federal Constitution of Malaysia guarantees freedom of religion where every person is granted the right to profess and practise, and, subject to 2 3 certain restrictions, to propagate his or her religion. Though not 1 2 According to the Population and Housing Census 2010, the total population of Malaysia was 28.3 million, of which about 91.8% were...
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...introduced to meet the above Quranic verse interpretation. It should be noted that BBA is a Murabahah product but the product name of BBA was given by BBMB to differentiate between a short term (below 12 months) and long-term (above 12 months) tenor financing products. Murabahah is for short term meanwhile BBA is for a long term financing products. 2.0 BAI’ BITHAMAN AJIL (BBA) 2.1 DEFINITION The Majallah refers to BBA as the Bai’ al Muajjal. In Pakistan the term is called Bai’ al-Muajjal, in Bangladesh it called bay’al-Muazaal. BBA means a "deferred payment sale". It is a sale contract in which the payment of the price is deferred and payable at a certain particular time in the future. It is a mode of Islamic financing used for property, vehicle, as well as financing of other consumer goods. It can be implicated in any sale contract, including Musawamah and Murabahah but it is not applicable for a Salam contract, as the payment of Salam must be settled in full at the beginning of the contract. Technically, this financing facility is based on the activities of buying and selling. The furniture that you wish to purchase for example, are bought by the bank and sold to you at an agreed to price, after the bank and you determine the tenure and the manner of the instalments. The price at which the bank sells you the furniture will include the actual cost of the furniture and will...
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...messengers and the last of your prophets, Muhammad and his pure and cleansed progeny. Also send your blessings to all your prophets and envoys. CONTENTS Foreword ... ... ... ... ... ... ... ... ... ... ... ... ... .. Introduction .................................... The Triple Nature of Possession ... ... ... ... ... Freedom of Private Enterprise and its Limits ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... Social Justice ... ... ... ... ... ... ... ... ... ... ... ... Economic Problems ... ... ... ... ... ... ... ... ... ... 3 7 18 21 34 38 Dear Reader This leaflet is one of several Islamic publications that we distribute, as a contribution, among the people throughout the world. You are requested to study the present publication with care and if you find it useful, please pass it on to your friend. You may re quisition for further Islamic publications available with us. We assure you that the books requested by you will be mailed to you immediately. Yours in Islam, Publication Secretary, P.O. Box No.1136-1545, Tehran, Iran. FOREWORD The urgent need of Islamic literature is felt throughout the world. Many young Muslims by birth, when asked which religion they adhere to their answer comes hesitatingly...
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...Introduction: profusion and variety There are hundreds of legal systems in the world. At the global level, international law is of great importance, whether created by the practice of sovereign states or by agreement among them in the form of treaties and other accords. Some transnational entities such as the European Union have created their own legal structures. At the national level there are over 180 sovereign states in the United Nations Organization. Many of these are federal or confederal, and their constituent parts may well have their own law. But, despite this great variety, it is important to begin by emphasizing one great division: that into religious and secular legal systems. Each side of this split holds quite different views as to law, in its source, scope, sanctions, and function. The source of religious law is the deity, legislating through the prophets. Secular law is made by human beings, and one of its most famous examples begins with the words 'We, the people'. It follows from this difference in their source that religious laws are perceived to be eternal and immutable, while secular rules can be changed by their makers. Religious law tells people what to believe as well as how to behave, whereas secular law deals with our external actions as they affect others. In a religious legal system disputes are usually adjudicated by an officer of that religion, so the same person is both judge and priest. In a secular system, by contrast, the office of judge is...
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...RLG204H5 S – Exam Review Week 3B: Denny CHAPTER 8 - Muslim creeds and theologies: Their purposes and varieties * Islamic Theology * Creed in Islam = Shahāda: simply proclaims the essential nature of God and the relation to him of his prophet, and thus implicitly all humans (if it is a creed, it is very laconic) * Kalām = theology in Islam = words, discussion, discourse * Ilm al-kalām = “science of discourse” or il al-tawhīd = “the science of (the divine) unity” * Theology only legitimate when subservient to the religious law, sharī’a * Fiqh = science of Muslim jurisprudence (‘Understanding’) is the chief Islamic science, in light of which all others are judged * Kalām is subordinate to fiqh * Majority of Muslims have given their allegiance in analysis and interpretation of doctrinal matters to the ‘ulamā’ = ‘the scholar jurists’ * THEOLOGICAL ISSUES * Khārijites = faction that seceded from Alī’s Shī’a * Had very high ideal of what Muslim community should be * Called themselves “the people of paradise” * Abandoned their leader Alī after his arbitration with Umayyad challenger, Mu’āwiya * Later also rejected the Umayyads * Now Khārijites = outlaw Muslims who zealously persisted trying to force their vision of Islam on their brothers * Strictest faction = Azraqites – Moderate faction = Najdite * Murji’ite = position that no human can discern whether sinners were...
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...Introduction 1 1.1 Origin of the Report Today‟s business world is continuously changing. The operation of business is getting complex in every moment. That is why, today, the management of any business activity requires so much expertise from the part of its employees. The business graduates are the core part of management. So a business graduate has to have so much theoretical as well as practical knowledge to manage the ever-changing business activity. Besides the theoretical knowledge, practical experience is provided to business graduates & internship is the well practiced mechanism in this regard. The internship program is an integral part of the BBA program. As a student‟s of BBA program of different universities, everyone has to submit a report after completion of internship program. We were assigned to Islami Bank Bangladesh Limited to complete the program. As a student of BBA, internship is an academic requirement. For doing internship we were sent to the Islamic Bank Bangladesh, New Market Branch, Dhaka under the supervision of Mohammad Ali Biswash, SPO, Islami Bank Bangladesh Limited, New market Branch, Dhaka. The completion of our general class for internship program in Islamic Bank Training and Research Academy (IBTRA), the IBTRA authority gave us the selecting topics‟ for preparing the internship report. Our supervisor Mohammad Ali Biswash, SPO, Islami Bank Bangladesh Limited, New market Branch, Dhaka, also support us to prepare a report...
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