Understanding Islamic Finance - Doha Academy of Tertiary Studies

Index 511financial markets and instrumentsderivatives 209–11foreign exchange market 209fund management 201–3inter-bank funds market 205–6investment Sukuk 204–5major instruments of 200trading 205types 200–1types of forward market 206–8financial services and businesses, nature ofIjarah 366major players 358–9management of deposit pools and investments359–60Murabaha 364–6operational controls 367–9other compliances 367selection of mode of financing 360–2Sharī´ah compliance 363–4tenor of financing 362–3financing issues, with banksdealings in different cards 379–83forward contract and foreign exchangedealings 375–7liquidity management 374–5project financing 373–4refinancing schemes 377–8trade finance operations 370–3working capital finance 369–70foreign exchange market 209dealings by banks 375–7forward market 206–8forward salesBai ′ Salam/Salaf 241–2disposing of goods purchased 250–2economic role 242–3features of valid Salam 243–9post execution scenarios in 252–4Salam rules 255–6security or a pledge in a 249–50Sukuk or certificates (SC) 254–5free mutual consent, in transactions 110fund management 201–3future flow securitization (FFS) 394gambling and Islamic principles 62Gharar, prohibition ofin insurance 419Gharar, prohibitions ofabsence of Jahl 61examples of 60–1gambling 62general principles for avoiding Gharar insales transactions 61in terms and essence of the contract 59–60in terms of object of the contract 60glossary of terms 485–96gold standard 3The Golden Age of Islam 28Hamish Jiddiyah 116–17Holy Qur’ān 25, 27, 30, 84, 418, 437–8, 451,454, 475Ahd 103Aqd 103–5avoiding interest 74–5business norms and principles 64–7concept of welfare 34–5difference between cash and credit prices141on distribution of wealth 35hardship 418insurance practice 419issues related to payments on borrowings162, 174, 436Ju’alah 351lending rules 70Mithāq 103mutual cooperation 68ownership in 33prohibition of Riba in 44–7, 95, 434reference to contracts 104references of Qimār and Maisir 62references to loans and debts 155, 159social justice and economic welfare 40society in 38–9as source of the divine law 21–2, 41system of Zakat 12in trading aspects 131in utilization of goods and assets 33honesty, role in Islamic economics 65–6Ibādāt 105Ibāhatul Asliyah 22Ibn Khaldun’s ideas on market system 27–8Ibn Taymiyah’s concepts of Thaman-e-mithl28Ijarah, see leasing (Ijarah); Riba, prohibition ofIjarah Muntahia-bi-Tamleek 104, 112issues with 295–6leased assets and securitization of leases 297