Saturday, 24 September 2016

What is diffrence between Istisna and Ijarah?

Under Istisna,  the manufacturer either uses his own material or he arrange for the material himself whereas under Ijara the material  is provided by the customer and the manufacturer uses only his labour and skill meaning that his services will be hired for specific fee paid to him. Further, under Istisna the purchaser has the right to reject the goods after inspection if  these are not according to the specifications agreed at the time of contract whereas under Ijara this right of ispection does not exist.

What is Bai Muajjal?

Bai Muajjal is the Arabic equivalent of "Sale on differed payment basis". The deferred payment becomes a debt payable by the buyer in lump sum or in installments  as may be agreed between the two parties. In Bai Muajjal, all those items can be sold on deferred payment basis which come under the definition of tangible goods where quality does not make a difference but the intrinsic vale does. Those assets do not come under definition of capital where quality can be compensated for by the price and Shariah scholars have an "ijmah" (Consensus) that demanding a high price in deferred payment in such a case is permissible.
The following are the condition of valid Bai Muajjal:

1. The price to be paid must be agreed and fixed at the time of deal. It may include any amount of profit agreed between the parties.
2. Complete/ total possession of the object in question must be given to the buyer, while the defrred price is to be treated as a debt due from him.
3. Once the price is fixed, it cannot be decreased in case of earlier payment nor can it be increased in case of default.
4. If the commodity is sold on installment, the seller may put a condition on the buyer that if he fails to pay any installment on its due date, the remaining installments will become due immediately.

What is Musawamah?

Musawamah is a general and regular kind of sale in which price of the commodity to be traded is bargained between seller and the buyer without any reference to the price paid or cost incurred by the former. Thus, it is different from Murabaha in respect of pricing formula. Unlike Murabaha, seller in Musawamah is not obliged to reveal this cost. Both the Parties negotiate on the price. Alla other conditions relevant to Murabaha are valid for Musawamah as well. Musawamah can be used where the seller is not in a position to ascertain precisely the costs of commodities that he is offering to sell.

What is Murabaha used for in Islamic Banks?

Murabaha is typically used for to facilitate the short term financing requirements of the customer. The following are the uses of Murabaha:

1: Purchase of raw material, goods and merchandise of all kinds and description.
2: Purchase of equipments.
3: Import of goods and merchandise.
4: Export financing (pre-shipment)
5: Other financing of working capital nature

Presently, the majority of financing extended by Islamic banks is based upon Murabaha.

Islamic banking meant only Muslims?

The teachings of Islam are not confined to Muslims, rather these equally address the non-Muslims due to their universal nature. The basis of Islamic banks is laid down on ethical values and socially responsible system. The values like justice, mutual help, fee consent and honesty on the part of the parties to the contract, avoiding fraud, misrepresentation and misstatement of facts and negation of injustice or exploitation form the basic principles of Islamic banking. Therefore, the principles of Islamic banking lead the economic system to achieve the common good and economic prosperity. On this premise, Islamic banking a viable option for everyone irrespective of their religion.

Wednesday, 14 September 2016

Saturday, 3 September 2016


The first record of coffee's discovery is from Yemen when an Arab named Khalid noticed that his animals became livelier eating a certain berry. He boiled the berries to create al-qahwa. This brew was later consumed by Muslims to stay awake through nights for prayers.

Sheikh 'Abd-al-Kadir, the Persian Sufi based in Baghdad, wrote the earliest known manuscript on the history of coffee in 1588. Coffee soon spread to rest of the Muslim world by travelers, pilgrims and traders reaching Makkah and Turkey in the late 15th century, from where it made its way to Venice in 1645.

Coffee was first introduced in England by a Turkish merchant named Pasqua Rosee in 1650 and its consumption was largely on the traditional Muslim preparation of the drink. By 1700, there were about 500 coffeehouse in London and nearly 3,000 in the whole of England. The Arabic 'al-qahva' became the Turkish 'kahve' the the Italian 'caffe' and then English 'coffee'.