Publication at Faculty of Law |
2019
Abstract
The present paper focuses on the issue of Islamic financing and its different forms which are primarily used in banking transactions executed by Islamic banks. The text first defines the basic aspects of Islamic financing which include asset-backing, Islamic type contracts and compliance with the prohibition of Riba as well as other principles of Islamic law.
Subsequently, three of the most important Islamic type contracts that are used for Islamic financing are detailed: lease agreement (Ijarah), purchase contract in which the purchase price is determined by the declared purchase price and a mark-up charged by the seller (Murabahah) and the commercial or investment partnership (Musharakah).