Five Basic Islamic Financing Contracts

Murabaha: (Cost plus)

A Murabaha transaction is basically a cost plus profit financing transaction in which a

tangible asset is purchased by an Islamic bank at the request of its customer from a

supplier. The Islamic bank sells this asset to its customer on a deferred sales basis with a

mark up that is bank’s profit. The mark up on the asset cannot be altered during the life of

the contract. The Murabaha deals offer enough flexibility to be used in real estate and

project financing.

Ijara and Ijara wa-Iqtina: (leasing and lease purchase)

Ijara and Ijara wa-iqtina are Islamic leasing concepts similar to western operating and

finance leases. Ijara is similar to conventional operating lease, where in an Islamic bank

(lesser) leases the asset to the client (lessee) for agreed on lease payments for a specified

period of time, but with no option of ownership for the lessee. The maintenance and

insurance is the responsibility of the lesser.

On the other hand, in ijara wa iqtina, lessee has the option of owing the asset at the

termination of the lease. In both types of leasing, the lease payments must be agreed on in

advance to avoid any speculation. 

Istinsa: (leasing structured mode)

Istinsa is a leasing mode which is used to finance long term or large scale facilities

involving like construction of a sugar plant. In this mode, bank could either own the plant

and charge the lessee a fee based on profits or sell the plant to the company on a deffered

basis similarly like the Murabaha transaction. 

Mudaraba: (profit-sharing)

Mudaraba is a trust based financing agreement in which an investor e.g. Islamic bank

give capital to an agent for a project. Profits are based on prearranged and agreed ratio. In

case of loss earn no return and the agent receives no compensation for his effort.

Musharaka: (equity participation)

Musharaka is similar to a joint venture in which bank and agent jointly invest in some

project. They agreed on some prearranged profits and losses. 

(Zaher and Hassan 2001)

Islamic Banking

The prohibition of interest in Islam caused many writings to come forward with an idea

to establish banks that do not work on interest basis. So the basic difference between

Islamic banks and conventional banks is that Islamic banks are interest free banks

whereas conventional banks are interest based banks. (Kahf 2006) Although interest and

profit are very clear concepts but they are misunderstood by many people. Basic

difference between interest and profit is that interest is the reward to money and profit is

the reward to capital investment. In other words money produces interest and capital

investment produces profits. (Toutounchian 2004)

Islamic finance has gripped the world with a strong commitment and passion. It has been

depicted that interest in this segment has grown rapidly in almost 60 countries, not only

in Islamic countries but in the leading global financial centers. Even United Kingdom has

adopted an open door policy and provided a level playing field to Islamic finance and

now Singapore is following its lead.  (Dr.Shamshad 2007)

Islamic banking has shown tremendous growth in the past 20 years, with estimated

deposits surpassing $80 billion in more than 45 countries. Annual turnover is currently

estimated at $70 billion and is projected to pass $100 billion by 2000. (O’Sullivan 1994,

p. 7) For the last 60 years, the mode of banking in Pakistan was totally of interest based

but now there is a shift from western banking to Islamic banking in number of banks in

Pakistan and also there are some new banks like Meezan bank which is totally based on

Islamic banking. In 2007 Meezan Bank creates a significant milestone in the history of

Islamic Banking by opening its 100th branch in the city of Karachi. With 100 branches in

31 cities clearly positions the Bank as the leading Islamic Bank in Pakistan. Two new

dedicated Islamic Banks start operations in Pakistan, namely Emirates Islamic Bank and

Dawood Islamic Bank. (Meezan Bank 2007)

Halal and Healty Foods

Consuming foods that are halal become an absolute must for Muslims. Not only halal food ingredients, but also how to obtain it must be lawful, and we must also consider how its processing. The food we eat not only be processed in a clean but must also be processed in a place that is not mixed with a processing tool or a presentation tool that is used to process food that is haram. Food ways must be adapted to the teachings of the Prophet, so that the food we eat but also good for filling our bodies.

Tips to Prevent Flu and Colds Without Medication

         Flu and Colds are two diseases that often come in the monsoon or transition season like now. But apparently there are ways to avoid and cure the flu and common cold without drugs. Here are some tips on preventing and treating influenza with no cure.
1. Maintain hygiene by always washing hands after each move and before eating.
2. Eat an orange every day.
3. Try to keep your body warm, always wear a jacket or heavy clothing when going out in the rain.
4. Drink plenty of water at least 8 glasses a day.
5. Eat garlic every day because they contain quercetin, a compound that fight viruses and bacteria to make  immunity.
6. Get plenty of rest.
7. Avoid stress because it can reduce the immune stree.
8. Exercise can strengthen the immune system, at least walk for 30 minutes.
9. If not cold, drop a few drops of eucalyptus oil into a container of boiling water, cover head with towel and inhale its vapors.
10. Do not smoke, because smoking raises tension on the respiratory system.
11. Pray always to be avoided from health and disease.

The Tips on How to Maintain Assets of Wife-Husband

1. Do not be wasteful
    Use treasures that we have the best possible and should not be used for the benefit of no use (in vain).
2. Requested permission from the husband to spend what we want
    Communication is the bridge to maintain the harmony of the family. For that before we buy anything it helps us, and discuss to the husband. Whether we buy goods that would be useful for later.
3. Buying an item is required only
   Use items that can still be used and do not buy in advance because it will useless if the item will not be used.
4. Save part of the husband earned a living
    Saving money is important, because one time we need when we are in difficult circumstances.
5. Frugality in the use of budget
    Frugality is highly recommended at all because it can suppress the number of excessive expenditure.
6. Grateful for what we can today
   This last point is grateful for what we can today because with gratitude God will add to the favors that have been given to us.

“EKONOMI ISLAM”

Oleh:

Mustafa Edwin Nasution

Budi Setyanto

Nurul Huda

Ekonomi Islam memiliki sifat dasar sebagai ekonomi robbany dan insany. Disebut ekonomi rabbany karena sarat dengan arahan dan nilai-nilai Ilahiyyah. Lalu ekonomi Islam dikatakan memiliki dasar sebagai ekonomi Insani karena system ekonomi ini dilaksanakan dan ditujukan untuk kemakmuran manusia. (Qordlowi, Peran Nilai dan Moral dalam Perekonomian Islam). Hal. 12.

Pengertian ekonomi Islam menurut beberapa tokoh yaitu: (hal. 16-17)

1. M. Akram Kan

Islamic economics aims the study of the human falah (well-being) achieved by organizing the resources of the earth on the basic of cooperation and participation. Secara lepas dapat diartikan bahwa ilmu ekonomi Islam bertujuan untuk melakukan kajian tentang kebahagiaan hidup manusia yang dicapai dengan mengorganisasikan sumber daya alam atas dasar bekerja sama dan partisipasi.

2. Muhammad Abdul Mannan

Islamic economics is a social science which studies the economics problems of a people imbueded with  the values of Islam. Jadi, menurut Mannan ilmu ekonomi Islam adalah ilmu pengetahuan social yang mempelajari masalah-masalah ekonomi masyarakat yang diilhami oleh nilai-nilai Islam.

3. M. Umar Chapra

Islamic economics was defined as that branch of knowledge which helps realize human well-being through an allocation and distribution of scarce resources that is an conformity with Islamic teaching without unduly curbing Individual freedom or creating continued macroeconomic and ecological imbalances. Menurut Chapra, ekonomi Islam adalah sebuah pengetahuan yang membantu upaya realisasi kebahagiaan manusia melalui alokasi dan distribusi sumber daya yang terbatas yang berada dalam koridor yang mengacu pada pengajaran Islam tanpa memberikan kebebasan individu atau tanpa perilaku makro ekonomi yang berkesinambungan dan tanpa ketidakseimbangan lingkungan.

4. M. Najjatullah Siddiqy

Islamic economics is the muslim thinker’s response to the economic challenges of their time. In this endeavour they were aided by the qur’an and the Sunnah as well as by reason and experience. Yaitu: respon pemikir muslim terhadap tantangan ekonomi pada mas tertentu. Dalam usaha keras ini mereka dibantu oleh al-Qur’an dan Sunnah, akal dan pengalaman.

PENDIDIKAN DALAM PERSPEKTIF AL-QUR’AN

Prof. Dr. H. Abuddin Nata, MA

(UIN Jakarta Pers, Jaksel, 2005)

Al-Qur’an sebagaiman dikemukakan Abd. Wahhab Khallaf adalah firman Allah SWT yang diturunkan melalui malaikat Jibril kepada hati Rasulullah SAW, Muhammad ibn Abdillah dengan mempergunakan bahasa Arab dan maknanya yang benar, agar menjadi hujjah (dalil) bagi Muhammad SAW sebagai Rasul, undang-undang bagi kehidupan manusia, serta hidayah bagi orang yang berpedoman kepadanya, menjadi sarana pendekatan diri kepada Allah dengan cara membacanya. Ia tersusun diantara dua mushaf yang dimulai dengan surat al-Fatihah dan diakhiri dengan surat an-Naas, yang disampaikan kepada kita secara mutawattir baik dari segi tulisan maupun ucapannya, dari satu generasi ke generasi lain, terpelihara dari berbagai perubahan dan pergantian sejalan dengan firman Allah: Sesungguhnya Kami yang menurunkan ad-Dzikr (al-Qur’an) dan Kami pula yang memeliharanya.

Menurut H.M. Quraish Shihab, bahwa kata iqra’ terambil dari kata qara’a yang berarti menghimpun. Dari kata iqra’ yang berarti menghimpun ini lahir aneka makna seperti menyampaikan, menela’ah, mendalami, meneliti, mengetahui ciri sesuatu, dan membaca baik teks tertulis maupun tidak. Selain itu, kata iqra’ juga berarti bacalah, telitilah, dalamilah, ketahuilah ciri-ciri sesuatu; bacalah alam, tanda-tanda zaman, sejarah, maupun diri sendiri, yang tertulis maupun yang tidak.

Salih Abdullah Salih dalam bukunya yang berjudul “Islamic Education: Qur’anic Outlook”, menyimpulkan bahwa al-Qur’an adalah Kitab Pendidikan, dengan alasan: