Every Islamic financial contract has its own principles and conditions. A transaction does not become valid merely because it is given an Islamic label.
A genuine cost-plus sale (مرابحة) must actually be a sale. A genuine leasing (إجارة) must actually involve usufruct of an asset. A genuine partnership (مشاركة) must actually involve partnership rights and risks.
The substance of the transaction matters more than its label.
This principle will be used repeatedly in later levels.
Opening interactive controls...
The Basic Idea of Islamic Financing
Every Islamic financial contract has its own principles and conditions. A transaction does not become valid merely because it is given an Islamic label.
A genuine cost-plus sale (مرابحة) must actually be a sale. A genuine leasing (إجارة) must actually involve usufruct of an asset. A genuine partnership (مشاركة) must actually involve partnership rights and risks.
The substance of the transaction matters more than its label.
This principle will be used repeatedly in later levels.