FINANCE

KembaraXtra – Islamic Finance – Gharar

KembaraXtra – Islamic Finance – Gharar Introduction In Islamic commercial law, Gharar refers to uncertainty, ambiguity, or lack of clarity in a transaction that can potentially harm one of the contracting parties. Unlike Riba, which has a fixed and for


KembaraXtra – Islamic Finance – Riba

KembaraXtra – Islamic Finance – Riba Introduction In Islamic finance, Riba is one of the most important prohibitions and a foundational principle distinguishing Islamic finance from conventional finance. The word Riba is often translated into English as


KembaraXtra – Islamic Finance – Fungible Goods

KembaraXtra – Islamic Finance – Fungible Goods Introduction In Islamic finance, fungible goods (mithliyyāt) are goods or assets that are interchangeable, uniform, and measurable by quantity, weight,...


KembaraXtra – Islamic Finance – Shari’ah Compliance

KembaraXtra – Islamic Finance – Shari’ah Compliance Introduction The foundation of Islamic finance rests firmly on Shari’ah compliance. Every financial product, service, and transaction offered under Islamic finance must align with the principles and ob



KembaraXtra-Islamic Finance – Profit and Loss Sharing

KembaraXtra-Islamic Finance – Profit and Loss Sharing Introduction One of the most distinctive features of Islamic banking is the principle of profit and loss sharing (PLS). Unlike conventional banking, which is heavily dependent on fixed interest-based



Islamic Finance – The Need for Underlying Assets

Islamic Finance – The Need for Underlying Assets Introduction A central feature of Islamic finance is the requirement of underlying assets in contracts of sale (bayʿ) and lease (ijarah). This principle ensures that every financial transaction is tied t


Islamic Finance – Mudarabah and Musharakah

Islamic Finance – Mudarabah and Musharakah Learning Objectives By the end of this module, learners should be able to: Understand the principles of Mudarabah (profit-sharing) and Musharakah (equity partnership). Differentiate between Mudarabah, Mushar


Islamic Finance – The Salient Features: Interest-Free Banking

Islamic Finance – The Salient Features: Interest-Free Banking Introduction One of the most distinctive hallmarks of Islamic finance is that it is a system founded on the principle of being completely interest-free. Unlike conventional finance, where in