Islamic Funding Structures And Financing Alternative | SHARIA | Muslim Compliant Businesses Best Practice

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.



Musharaka: This is a partnership, normally of limited duration, formed to carry out a specific project. It is therefore similar to a western-style joint venture, and is also regarded by some as the purest form of Islamic financial instrument, since it conforms to the underlying partnership principles of sharing in, and benefiting from, risk. Participation in a musharaka can either be in a new project, or by providing additional funds for an existing one. Profits are divided on a pre-determined basis, and any losses shared in proportion to the capital contribution.



Areas of Application | Decreasing Partnership

The decreasing partnership is suitable for the finance of industrial establishments, farms, hospitals and every project capable of producing regular income.

Nowadays it is considered to be the appropriate mode to finance collective investment. As regards the bank it earns periodical profit all the year round.

As regards the partner, it encourages the partner to participate in Halal investment. It realizes the customer's ambition to individually own the project in the short run when the bank withdraws gradually.

As regards the society, it corrects the course of the economy by developing the mode of positive partnership instead of the negative relationship of indebtedness, by doing so it achieves equity in distributing the results.



1.It is a condition that the capital of the company is specific, existent and under disposal. It is invalid to establish a company on non-existent fund or debt, for the purpose of the company is profit that is by disposal which can not be of effect in debt or non-existent capital.

2.It is not a condition that partners have equal shares in capital, though variations in shares is permissible, it is subject to agreement.

3.It is a condition that the capital of the company is money and valuables. Some of the jurists permit participating with merchandise on condition it is evaluated in the contract and the value agreed upon becomes the capital of the company.

4.It is permissible to impose conditions forbidding one of the partners from work, because the company is built on procuracy and each partner implicitly permits and gives power of attorney to the other partner to dispose of and work with capital but it is permissible for one partner to singly work in the company by mandate of other partners.

5.A partner is a trustee on the funds in his hand from the company and he guarantees only in case of trespass or negligence and it is permissible to take a mortgage or a guarantee against trespass and negligence but it is impermissible to take security for profit or capital.

6.It is a condition that profit for each partner must be known to avoid uncertainty and it must be a pro rata ratio to all partners and must not be a lumpsum because this contravene the requirement of partnership.

7.In principle, profit must be divided among partners in ratios proportionate to their shares in capital but some of the jurists permit variation in profit shares whereupon it is determined by agreement; for one of the partners may be more dexterous and more diligent and may not agree to parity so variation in profit share becomes necessary.

8.Each partner bears loss proportionate to its ratio in the capital of the company and it is permissible to impose condition to the contrary.

9.In principle, partnership is permissible and not a binding contract, so it is admissible for any partner to rescind the contract whenever it wishes provided that this occurs with the knowledge of the other partner or partners, because rescinding the contract without the knowledge of other partners prejudices their interests. Some of the jurists are of the view that the partnership contract is binding up to the liquidation of capital or the accomplishment of the job accepted at the contract.

The Legal Rules| Decreasing Partnership

In addition to all the legal rules that apply to the permanent partnership which also apply to the decreasing partnership, the following matters must be observed

1.It is a condition in the decreasing partnership that it shall not be a mere loan financing operation, but there must be real determination to participate and all the parties shall share profit or loss during the period of the partnership.

2.It is a condition that the bank must completely own its share in the partnership and must have its complete right in management and disposal. In case the bank authorizes its partner to perform the work, the bank shall have the right of supervision and follow up.

3.It is impermissible to include in the contract of decreasing partnership a condition that adjudges the partner to return to the bank the total of its shares in capital in addition to profits accruing from that share, because of resemblance to Riba (usury).

4.It is permissible for the bank to proffer a promise to sell its shares in the company to the partner, if the partner pays the value of the shares. The sale must be concluded as a separate deal with no connection to the contract of the company



Divisions of the Modes of Partnership

Partnership operations embrace all kinds of contract companies which the Islamic Figh divides into three kinds:

(1) Labour Company

it is a contract in accordance to which two or more parties agree on accepting to do a job (such as trade, construction, etc.) together and to divide the accruing profit among themselves in specific percentage.

(2) Character Company

It is a contract in accordance to which two or more parties agree on purchasing with their characters and reputation goods and commodities on credit for trading in condition of distributing the accruing profit, or loss among themselves in ratios proportionate to what each one of them bears of the debt guarantee or security.

(3) Asset Company

It is a contract in accordance to which two or more parties agree on participating in the contribution of capital for investment and the accruing profit shall be divided among themselves in specific percentages agreed upon and they bear losses in ratio proportionate to their (contributions) shares in capital. But, profit may be distributed separate from the debt guarantee borne by each, whereas loss shall be proportional to debt guarantee.

Evidence of Legality – Modes of Partnership

1. The legality of partnership is evident from: ....They share in a third Saad 24

....Truly many are the partners (in business) who wrong each others:Not so do those who believe, And work deeds of righteousness. Saad 24

2. It was reported in the Holy Hadith from the Prophet (PBUH), said Allah sayeth: “"I am the third of the two partners, unless either of them betrays his friend, I withdraw from between them".

3. There is consensus among Muslims on the legality of partnership in general, despite the differences in some of its kind. But Ainan (rein) company is permissible by consensus and people have transacted in this mode in every age without protest of non-acceptance.

Truly many are the partners (in business) who wrong each other: Not so do those who believe And work deeds of righteousness.Saae 24

The Hadith:

I am the third partner to the two partners unless either of them betrays his friend. If either betrays his friend, I quit from betwixt them.



The Practical Steps of - Permanent Partnership

1. Delivery and receipt of the commodity

The Bank: tenders part of the capital required in its capacity as a partner and authorizes the customer/partner to manage the project.

Partner: tenders part of the capital required for the project and be a trustee on what he holds from the bank funds.

2. Results of the Project

The work in the project is for the growth of capital. The project may achieve positive or negative results.

3. The Distribution of Wealth

In case of loss, each partner bears part of the loss proportionate to its share in capital.

In case of earning profits, they are divided between the two parties (the bank and the partner) in accordance with the agreement.

4. The bank sells its share in capital

The Bank: expresses its readiness, in accordance with the agreement, to sell a specific percentage of its share in capital

The Partner: pays the price of that percentage of capital to the bank and the ownership is transferred to the partner.

Note | Decreasing Partnership

This process continues up to the end of the partnership of the bank in the project and that is by gradually transferring the ownership of the project to the customer/partner. In this way the bank has its principal returned plus the profit earned during the partnership.

Evidence of Legality In the first Conference of the Islamic banks in Dubai, the conferees studied the topic of partnership ending with ownership (decreasing partnership) and they decided that this mode can be applied in one of the following (ways) forms

The First Form| Decreasing Partnership

The bank agrees with the customer on the share of each one in capital and the conditions of partnership. The conference has decided that the bank should sell its shares to the customer after the completion of the partnership and in an independent contract where the customer has the right to sell its share to the bank or others and the bank will have the same provision

The Second Form| Decreasing Partnership

The bank agrees with the customer in participating in the total or partial finance of a project of prospective earnings, and that is on the basis of the agreement of the bank with the other partner, according to which the bank gets a percentage share in the accruing net income with the right to retain the remainder of the income for the purpose of paying the principal of what the bank has contributed.



2. Results of the Project

The work in the project is for the growth of capital. The project may achieve positive or negative results.

The Distribution of Wealth

In case of loss, each partner bears part of the loss proportionate to its share in capital.

In case of earning profits, they are divided between the two parties (the bank and the partner) in accordance with the agreement.

4. The bank sells its share in capital

The Bank: expresses its readiness, in accordance with the agreement, to sell a specific percentage of its share in capital

The Partner: pays the price of that percentage of capital to the bank and the ownership is transferred to the partner.



Definition – Permanent Partnership

This mode is represented in the contribution of the partners to equal or unequal ratios of capital to establish a new project or to participate in an established one, whereby each participant owns a share in the capital permanently and deserves his share of the profit. The partnership originally is intended to continue up to the dissolution of the company. But it is possible for a reason or another one of the partners sells its share in the capital to withdraw from the project

Definition – Decreasing Partnership

Decreasing partnership is a mode innovated by Islamic banks, it differs from the permanent partnership only in continuity.

The Islamic bank in this mode has all the rights and obligations of the ordinary partner. The Islamic bank from the very beginning does not intend to stay in and continue the partnership up to the liquidation of the company. Instead the Islamic bank gives the other partner the right to take the place of the bank in the ownership of the project, and agrees to assign its share in the partnership to the customer for full payment at one and the same time or gradual disbursement, in accordance with conditions agreed upon.

In reality, there are many forms for the application of the decreasing partnership. The most widely used form is the form in which the bank gradually relinquishes its share to the partner, in exchange the partner pays the price to the bank periodically (from the return of the project of external sources) during a reasonable period to be agreed upon. After the discharge the bank withdraws from the project and it becomes the property of the partner.

The Characteristic Traits of Modes of Partnership The partnership operation means two or more parties draw a contract to work together by the capital they contribute in condition of dividing the accruing profit between them Related by Abu Daoud.

The most important traits of these operations are: The participation in capital whether it is an asset, labour or liability. The partnership in work, management and disposal where the right of ownership and disposal remains to each partners. The partnership in the results of the operations whether profit or loss. The continuity in the partnership, usually to long terms.



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.

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