Surah meaning

The rise of equity financing: background to Mudaraba Interest-based, conventional funding often hampers economic justice, fairness and equity, as it burdens borrowers with liabilities that, in many cases, cannot be settled. Widespread inequality remains a severe global challenge, and Islamic financial models offer means to ease this. At the heart of Islamic banking and finance lies economic justice realised through risk-sharing. All parties to an investment are expected to participate in both profits and losses. As Ayat 8 of Surah Al Maidah in the Quran declares: O you who have believed, be persistently standing firm for Allah, witness in justice, and do not let the hatred of a people prevent you from being just. Be just; that is nearer to righteousness. And fear Allah; indeed, Allah is acquainted with what you do. Unlike conventional arrangements, which do not require tangible underlying assets, banks and financial institutions may expand credit by generating money from existing money rather than from assets. This stands in contrast to Islamic financing...

Banking & Finance glossary A Auditing and Accounting Organisation for Islamic Financial Institutions (AAOIFI) The foremost Islamic, international, autonomous, independent, not-for-profit corporate body that develops and issues accounting, auditing, governance, ethics and Shari’ah benchmarks and standards for Islamic Financial Institutions (IFIs) and the wider Islamic finance sector. Founded in Bahrain in 1991, it is backed by a number of institutional members across more than 45 countries, including central banks and regulatory authorities, financial institutions, accounting and auditing practices, and legal firms. Its pronouncements are currently applied by leading Islamic financial institutions across the world and have advanced a progressive and gradual harmonisation of global Islamic finance practice. It also delivers professional qualification programmes—notably Certified Islamic Professional Accountant (CIPA), Certified Shari’ah Adviser and Auditor (CSAA), and the corporate compliance programme—in efforts to strengthen the industry’s human capital and governance frameworks. For further details, see Practice Note: Key participants in the Islamic finance industry—Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). Acceleration Acceleration is the formal action...

Inheritance is a core component of Shariah, the path to be followed. Its rulings are ordained by Allah subhanahu wa ta'ala (SWT) — Allah, the most glorified, the most high. A person’s assets, whether during life or after death, must never be used in a manner that conflicts with what Allah SWT has decreed. In Islam, breaching these commands is regarded as a major sin. The Quran sets out the inheritance laws plainly and in depth. It is the primary source of Shariah, with the Sunnah as the secondary source. The Sunnah comprises the words and actions of the Prophet Muhammad, peace and blessings be upon him (PBUH). While other acts of worship are mentioned in the Quran and elaborated in the Sunnah of the Prophet Muhammad (PBUH), the inheritance rulings are explained by Allah SWT directly in the Quran. Inheritance law in the Quran Most of the inheritance rulings in the Quran appear in Surah An-Nisa’ (chapter 4 of the Quran). Within this surah, three verses lay...