Islamic Funding Structures And Financing Alternative

The financial jurisprudence adhered to by this site is after the manner of Mufti Taqi Usmani
Mufti Muhammad Taqi Usmani, Sheik-Ul-Islam, is one of the leading Islamic scholars living today. He graduated par excellence form Dars e Nizami at Darul Uloom, Karachi, Pakistan. He served as a judge on the Federal Shariat Court of Pakistan from 1981 to 1982 and theShariat Appellate Bench of the Supreme Court of Pakistan between 1982 and 2002. He is an expert in the fields of Islamic Jurisprudence (fiqh), economics, and hadith. Then he specialized in Islamic Jurisprudence under the guidance of his eminent father, Mufti Muhammad Shafi, the late Grand Mufti of Pakistan. Since then, he has been teaching hadith and Fiqh at the Darul-Uloom, Karachi.


Sharia Compliance - The Duty After The Duty

Islamic banks around the world have devised many creative financial products based on the risk-sharing, profit-sharing principles of Islamic banking. For day to day banking activities, a number of financial instruments have been developed that satisfy the Islamic doctrine and provide acceptable financial returns for investors. Broadly speaking, the areas in which Islamic banks are most active are in trade and commodity finance property and leasing. Some of the basic financial techniques of Islamic banking are the following

The concepts of equity and morality are at the root of Islamic banking and absence from interest. In Islam moral and equitable values form an integral part of the rules of law governing contractual and financial relations to such an extent that the relationship which exists between equity, law and religion is an organic rather than supplementary relationship. The importance of Islamic banking has increased dramatically over the past 10 years. The main difference between Western and Islamic-style banking is the concentration on people and their businesses rather than on accounts- it is a much more 'grass roots' banking according to one expert.



A form of credit that enables customers to make a purchase without having to take out an interest-bearing loan. The bank buys an item and sells it to the customer on a deferred basis. The price includes a profit margin agreed by both parties. Repayment, usually in installments, is specified in the contract. The modern Murabahah has become the most popular financing technique among Islamic banks, used widely for consumer finance, real estate, the purchase of machinery and for financing short-term trade.




This is the sale of a commodity at a price which includes a stated profit known to both the vendor and the purchaser. Under Murabaha, the Islamic bank purchases, in its own name, goods that an importer or a buyer wants, and then sells them to This technique is usually used for financing trade, but because the bank takes title to the goods, and is therefore engaged in buying and selling, its profit derives from a real service that entails a certain risk, and is thus seen as legitimate. Simply advancing the money to the client at a fixed interest rate would not be legitimate. It is important to note that only a legitimate profit in addition to the actual price is considered lawful under Islamic law. Any excessive addition on account of deferred payments will be disallowed as it would amount to a payment based on the value of money over time i.e. interest.

Areas of Application Murabaha is one of the most widely used modes of finance by the Islamic banks. It is suitable for partial financing to the investment activities of the customers, in industry, trade or others. It enables the customer/investor to obtain finished goods, raw material, machines or equipment from the local market or through import.



1.It is permissible for the beneficiary, to offer a promise to purchase a particular commodity deciding its specifications and committing itself to buying it on Murabaha for the cost plus the agreed upon profit.

2.It is permissible that the mutual promise agreement shall contain various conditions agreed upon by the two parties, specially with respect to the place of delivery, the payment of a cash security to guarantee the implementation of the operation and the method of paying the price.

3.It is permissible to stipulate the binding nature of the promise to purchase. The effect of the promise being binding is determined either by the satisfaction of the promise or indemnifying the damages caused by breaking the promise without excuse.

The Phase of the first purchase

4.It is a condition that the bank purchases the requested commodity (first purchase contract) before selling it on Murabaha to the buyer. The contract in the first purchase must be settled, in principle, between the source seller and the bank.

5.It is permissible for the bank to authorize a second party including the buyer to receive the commodity on its behalf. This authorization must be in a separate contract in case of the buyer for fear of giving false impression of connection between the authorization and the Murabaha sale.

6.After the bank purchases the commodity and before selling it on Murabaha to the buyer, the bank shall bear the consequences of any damages or defects (unless there is an agreement with the customer releasing the bank of the defects). That means if the commodity is damaged the bank is liable and if the commodity is defective (a defect that is not included in the release) the bank bears the responsibility, thus it cannot deliver the commodity to the buyer and the buyer will not bear any risk or responsibility.

The phase of Murabaha sale

7.It is a condition that the Murabaha sale contract be drawn at the last phase. That is after the promise to purchase and the purchase of the commodity in the name of the bank and receipt of the commodity directly by the bank or through an agent.

8.The legal rules of Murabaha must be observed in drawing the contract of Murabaha sale connected with a promise to purchase, specially the conditions of the transparency of the cost of the first purchase and the amount of profit because ignorance leads to dispute and invalidates the contract.

9.It is permissible to document the debt resulting from Murabaha by a guarantor or a mortgage, like any other sale on credit. It is permissible that the mortgage accompanies the contract or be prior to it, because it is possible to take mortgage on actual debt as well as promised debt before it is realized but the mortgage shall only be in effect if the debt goes into effect.



The legality of this financing technique has been questioned because of its similarity to riba.

1. The legality of Murabaha sale is (obtained) obvious from:

It is no crime in you if you seek of the bounty of your Lord Al-Baqara 198.

That is because Murabaha represents looking for more. It is also subsumed under the general rule that legalizes sale Allah sayeth "Allah hath permitted trade".

2. The Prophet (PBUH) permitted the sale of the commodity for more than its purchase price. He said: "if the two commodities are different, buy and sell as you wish.

3. The consensus of the Ummah on the permissibility of the Murabaha sale. The Kassani has pointed out that the people inherited these kinds of sales (Murabaha and other sales) throughout the generations and ages without any protests of non acceptance.

4. The Fatwa of the second conference of the Islamic bank: "The promise in the Murabaha sale to he who orders the purchase" is legally permissible after owning and possessing the commodity, only then it is permissible to sell it to the purchaser who requested it for the price specified and mentioned in the previous mutual promise agreement as long as the liability of damage before delivery and the consequences of a return for unseen defect is on the bank.

As to whether the promise is binding to the buyer, the bank or both, it better secures the interests of all parties, the bank and the customer, to have the promise as binding. It is legally acceptable and it is up to each Islamic bank to take either opinion according to what its committee of legal observers decide."



The Practical Steps of the Murabaha Sale

1. The purchaser: determines its needs.

The purchaser: determines the specifications of the commodity he wants and requests the seller to determine the price.

The seller: sends a quotation valid for a certain period.

2. Signing a promise to purchase agreement

The purchaser: promises to buy the commodity from the bank on Murabaha sale for the cost of the commodity plus the agreed upon profit.

The bank: studies the request and determines the conditions and securities for approval.

3. The first sale contract

The bank: notifies the purchaser of its approval of purchasing the commodity. The bank may pay the price immediately or as per the agreement.

The seller: expresses its approval to the sale and sends the invoice

Delivery And Receipt Of The Commodity

The bank authorizes the beneficiary to receive the commodity.

The purchaser: undertakes the receipt of the commodity in his capacity as legal representative and notifies the bank execution of the proxy

Affixing Signatures

The two parties (the bank and the purchaser) sign the Murabaha sale contract according to the agreement of the promise to purchase.



It is suitable for partial financing to the investment activities of the customers, in industry, trade or others. It enables the customer/investor to obtain finished goods, raw material, machines or equipment from the local market or through import.



It is selling the commodity for the purchase (1)price plus a certain profit margin agreed upon. This margin can be (2) a percentage of the purchase price or a (3) lump sum. These last three are called "Amana (honesty) Sales".

Definition: Murabaha sale is one kind of absolute sale (asset for price), which is divided into four kinds in respect to price:

Bargain Sale:

It is selling the commodity for agreed upon price irrespective of its purchase price.

Tawlia Sale (Respective sale):
It is selling the commodity for its purchase price without addition or discount.

Discount Sale
It is selling the commodity for its purchase price with a certain discount.

Murabaha Sale is divided into two types: (a) Ordinary Murabaha Sale and (b) Murabaha Sale connected with a profit.

Ordinary Murabaha Sale

There are two parties to it, the seller and the buyer. The seller is an ordinary trader who buys a commodity without depending on a prior promise of purchase, then he displays it for Murabaha sale for a price and a profit to be agreed upon

Murabaha Sale connected with a promise

There are three parties to it. The seller, the buyer and the bank as an intermediary trader between the buyer and the seller. The bank here does not purchase unless the buyer specifies its desire and a prior outstanding promise to purchase.

The mode of Murabaha sale connected to a promise is used by the Islamic banks which undertake the purchase of commodities according to the specifications requested by the customer and then resell them on Murabaha to the one who promised to buy for its cost price plus a margin of profit agreed upon previously by the two parties.

There are different forms to the application of Murabaha sale connected to a promise of purchase. Some of these forms are determined by whether the promise is binding or not. Other forms are determined by how the bank receives the commodity in the case of the first sale. Should the bank receive the commodity directly or through one of its agents or should it authorize the buyer to receive the commodity.



The challenge of Islam is for societies to create institutions, infrastructure and systems that will preserve the values of Islam together with the individual freedom of all of creation. The Share'eah contains prescriptions, recommendations, suggestions, general principles, and guidelines that may be considered the basis for an overall economic and commercial theory. Such a theory must be part of the complete vision of Islam and the integration of all aspects of human life. Critics unaware of Islam's Share'eah Laws, and much of the response that surrounds any discussion of it is based on this unawareness.

Islam is a way of life, a form of government, a social structure, as well as a regulatory norm for interpersonal relationships. The conduct of business is not different, and apart from all these other aspects of social life. It is a part of human life and normal like any other.



Literally Wakalah means protection or remedying on behalf of others. Legally Wakalah refers to a contract where a person authorizes another to do a certain well-defined legal action on his behalf. It is a contract of agency which means doing any work or providing any service on behalf of any other.
The majority of the jurists consider WAKALA'a as one of the divisions of Salam, therefore it is subsumed under the definition of Salam. But the Hanafite school of jurisprudence makes WAKALA'a an independent and distinct contract. The jurists of the Hanafite school have given various definitions to WAKALA'a, some of which are: "That it is a contract with a manufacturer to make something" and "It is a contract on a commodity on liability with the proviso of work".



Kafaalah is an Arabic word from the scale of Nasara, Yansuru. It means to join. Allah Ta'ala has 99 qualities. One is al-Kafeel as he joins (assists) in the affairs of every creation.

1) Sharee Definition

'To attach a responsibility to another in a claim.' (Hidaaya). Kafaalat is permissible. This is proven from two prime sources of Shari'ah.



So Called Islamic Bonds

Modern "SUKUK" emerged to fill a gap in the global capital market. Islamic investors want to balance their equity portfolios with bond-like products. Because "SUKUK" are asset-based securities — not debt instruments — they fit the bill. In other words, "SUKUK" represent ownership in a tangible asset, usufruct of an asset, service, project, business, or joint venture

Each "SUKUK" has a face value (based on the value of the underlying asset), and the investor may pay that amount or (as with a conventional bond) buy it at a premium or discount.


Please note that our representation here is neither to seen or accepted as guidance, acceptance, or recommendation. Rather it is EXISTENCE.

We share this information here, with the intention that the community is informed of the existence of this product, which some muslims (and others do not) accept as compliant. For our part, we do not participate in this product.

Most sharia scholars believe that having "SUKUK" managers, partners, or agents promise to repurchase "SUKUK" for the face value is unlawful. Instead, "SUKUK" are generally repurchased based on the net value of the underlying assets (each share receiving its portion of that value) or at a price agreed upon at the time of the "SUKUK" purchase.

We know business needs!

We (a) Seek to establish approved income activities and an enhanced ROI for our prospects while applying the principles of Islam; (b) invite all to right conduct, and to proceed on common terms; (c) to be available to our community for compliance in their operations; (d) Be exemplars of what we call others to.

You may use our services for brainstorming, planning and/or implementation, to resolve issues and challenges.


Understand technology

We provide custom configurations to ensure relevance to internal/external culture, procedures, needs etc.

We convene and discuss the range of possibilities suitable to satisfy the need requirement.


Do the duty after the duty

."If one of ten Dirhams used to select a cloth is tainted the Salah is unacceptable as long as the cloth is worn."(Musnad Ahmad).. .


Gap Mgnt Intervention

Critical Culture Shifting and Profit Enhancement Change has occurred (perhaps someone has just left suddenly) or it is about to (A strategic change is to be implemented) Extremely cost efficient:


Just-in-Time Support

Non-executive directors are usually found in big, multi-national companies.

In reality there is often a genuine requirement for a good Director in smaller and owner-managed companies.


Profit Oriented Trade-Offs

Our PM practice method lets you know if you are doing the first things first. How to know what to do before the first thing.

How do know what is involved and what will pull it together.

We can help you with your decision-making strategies, tradeoffs, and shortcuts in high ambiguity settings, and ease some of your anxieties over uncertainties.


Prod/Svc Evaluation

Many Business Plans are rejected simply for being too complicated, too simplistic, or because the wording of the plan and the actual financial forecasts that accompany it do not agree with each other.


Owner/Mgr Evaluation

Stress Test owner, management and team. owner .

How well are you equipped to manage your dream operations in meeting the deliverables of customers that have entrusted their business to you.


Biz/Project Evaluation

Stress Proof Business. If your business/project received a report card, what do you think it would say.

At critical periods, companies are required as a better practice principle to conduct internal business and personal process evaluation operations commonly called STRESS TESTS


Foreign (local) Office

Different cultures and values add to the hurdles to be overcome before the first staff is employed, or the first product/service is rolled out.

Dispatching your own staff to the new country immediately, may require costly and time-consuming training and orientation and dislocation.


PlcCounsel ToGo

Need An Expert Stand-In or have a meeting that you dread attending, or will need expensive local home talent in a foreign country to navigate through.


Scale-Up Teams

Need expertise short term, augment your current management to chart a new thrust, get secure the favours and services of a new resource or venture partner, an new banking institution as a requirement to access emerging opportunities or enter into new markets.


PlcCompliant Document

Compliant Business and Technology Counsel & Practice Solutions to Transition from Conventional Business to Compliant Business, Training Technical Advice, Coaching and Business Plans and Proposals geared to initiate and transform Individual Operations to Islamic Business with permissible products and services .

We provide such support, that assist in re-ordering, personal intention and conduct to re-orientate individuals to right conduct, compliance and permissible personal goal setting for planned successful outcomes..


PlcCompliant Entity

We develop our own compliant models to deliver solutions in custom coaching and business plans geared to transform your Operations to Compliant Businesses with permissible products and services.


PlcCompliant Financiers

We recommend your verified services to prospect clients to be Business Matched and in which activity you may re-purchase qualified performing loans of your choice for permissible financing and provide new opportunities.

Our services introduce you to a wider client base previously unknown to your right conduct, compliance and permissible corporate performance


"business done by a man with his own hands and every, permissible commercial transaction"

We provide products through our custom programmes and arrangement with specific benefits and specific performance requirements in a roll-out.

Products are aesthetic, cost effective, energy lean, environmental sustainable and satisfies a specific trigger and user service proposition for the target demographic, be it individuals, companies, city chambers of commerce, industry sector interests, standing governments of countries or party interests of the same country

Getting off on the right foot requires a proven game plan. We do stagings that provide the raised the bar on performance for your company that allows you to achieve faster concept to target implementation, so that you don’t have to. We may be your best option in finding the best-fitting solution just-in-time.


At the personal level the obligation is to (a) engage in halal professions and business activities. (b) Facilitate seamless transitions from conventional business practices to a Islam Compliant Practices; (c) Be a catalyst in the enhancement of permissible lifestyle businesses from concept to product delivery, and customer satisfaction.


At the corporate level the obligation is to seek to (a) establish a system that facilitates such individual efforts and discourage their opposites in our community; (b) research, establish, and support, promote compliant Businesses activities; (c) increase the successful small to medium owner managers pool of entrepreneurs (d) transition and convert conventional business to compliance; (e) be an intermediary between diverse cultures; (f) be a bridge-builder facilitator in trade, commerce and business relations, on a best practices of Islam


At the greater collective level we intend to be in the vanguard of establishing, maintaining and propagating Businesses Best Practice, based on Islam


Business and it’s environment is risky beyond control, companies of all sizes are facing critical issues of resources and seek agile multi-skilled individuals and locations for economies of scale and everywhere life's dynamism creates new challenges.


Recommendation or Expression of Interest Communication Product/Service Introduction.

Where We Are Intro To Company, We Conduct A Customer/Entity Readiness Evaluation to determine if we are a good fix


These are issues which arise from the things clients are not so good at or, the things they are not sure how to do or they are not sure if they're dong it right or just the things they don't like doing or even some of the things they are good at - but it's no longer profitable to do it., or even some of the things that you are good at, but just cannot do now.


Fixed Cost, Fixed Time, On Terms, On Time, First Time


Shared vision from risks framed in common terms, through shared costs and collaborative action that fosters the catalyses Shared opportunities for Shared benefits Custom Methods & Processes allows us to provide the deliverables exactly on requirements above 90% of the Time. 5% to 10% of the time, deliver according to adjusted deliverables..


We work on common terms which ensures that if we do well, you do well and if you do not, we do not either.

If you do an early termination, you forfeit 50% of your fees. If We terminate Early, we return 100% of your fees.


If perchance, you are not provided with your complete deliverable we will return 50% of We provide you with a respite of three (3) business days to sign off on our project after we have been paid – and if you are not satisfied with our solution, we will return 50% of your total fees


Billed fees are 100% earned and due.


Our standard fees rate is 4.5Grams of 99.999 purity gold per hour or the equivalent in your currency.(if we need a custom fee for your delivery it may be multiples of 4.5Grams or percentages of 4.5Grams


Our declared liability is 50% the fees collected for our agreed solution.


As Muslims involved in business and technology consulting, we rely completely on the tenets of Islam to determine our praxis and counsel, our business relationships, our products and our associates. Islam is its own culture, a way of life, a form of government, a social structure, as well as a regulatory norm for the full range of human and human/other relationships.

The conduct of business is no exemption.

Our socio-politico-economic-ethico*-moral theories should be consistent with guidance and instruction and the basis of all of them must be one. and when the Creator and His Messenger has made a decision, it is not for Mankind and ins to have an opinion on it

Islamic society preserves the notions of free enterprise and social solidarity, social responsibility and an alternative form of humanity for all.

This precedes and supersedes self-interest, and that also is the object of many specific guarantees in Islam


On this site our descriptions are longer than many others, primarily because we know what we can do and it the declaration provides a clear indication of our capabilities, the value we exchange and what the standards and delivery options we should be held observed.


We provide our solutions against the background of the Islamic Aadaabs Of Khidmat (Service To Others) of which there are three conditions of Kidmaat, viz.

Sincerity: The motive of rendering the service must be nothing other than Muhabbat (affection).

Congeniality:  The hearts of the Khaadim (the one who renders the service) and the Makhdoom (the one who is being served) should be at one. There should be congeniality (Munaasabat) between them. They should not be strangers.

Ability: The Khaadim should know how to render the service he is to undertake. | CEO.IKRIMAH - In Other Words We Will Not Take The Project Unless We Can Deliver. {iA}

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IKRIMAHPLC controls these sites from its offices in Singapore. You agree that any action proceeding, or other matters relating to your access to, or use of, the information on these sites shall be governed by Islamic Laws and permissible Singapore law. Here you choose (a) compliance and confidence with