​Corporate Finance – Principle and Concept of Islamic Finance 
Ijarah is a form of leasing  contract where a lessor / owner leasese out an  asset to a lesse a an agreed lease rental for a predetermined lease period. The ownership of the lease asset shall always be with the lessor. 
Istisna is form of a purchase order contract In this contract the buyer requires a seller or contractor to deliver or construct the asset to be completed in the future according to the specification given in the sale and purchase contract. The term of payment can be as agreed by both parties in the contract. 

Mudharabah is a profit sharing contract. It is a contract made between two parties to enter into a business venture. The parties consists of the rabbal mal ( capital provider) who shall contribute capital to finance the venture and the mudharib ( entrepreneur) who will manage the venture. 

Murabahah is a cost plus sale contract. It is a contract where the cost and profit margin are made known in the sale and purchase of an asset. 

Musharakah is a profit and loss sharing contract.It is a partnership agreement where two or more parties financing a business venture where all of them contribute the capital either in the form of cash or kind.

Wakalah is an agency contract. It is when one party authorises another party to act on behalf of the former based on agreed terms and conditions as long as he still alive. 

Bai’ salam is an advanced purchase contract where the payment is made in cash at the point of contract while the delivery of the asset purchased will be deferred to a pre determined date. 
Bai’ ‘inah is a sale with an immediate repurchase contract where the contract involves the sale and buy back transaction of an asset by a seller. 

Corporate Finance - How Shariah Screening on listed Companies is conducted? 

​There are two tier approach of Shariah Screening on listed companies. 

The first part focuses on the business activity benchmark and the second part focuses on the financial ratio benchmarks. 

In terms of business activity benchmark, the  benchmark for  acceptable revenues or profits  generated by clearly prohibited activities, such as conventional bank (riba),conventional insurance, gambling, liquor and liquor related activities, pork and pork related activities, non halal food and beverages, interest income from conventional accounts and instruments, non compliant entertainment and tobacco and tobacco related activities is maximum 5%.

Maximum 20% is dedicated for share trading, stock broking business and rental received from non shariah compliant activities. 

Less than 33%  are related to financial ratio benchmark. These include cash over total assets and debt over total assets.

Cash over asset covers the amount of cash placed in conventional accounts and instruments with the exclusion of any cash on Islamic accounts and instruments. 

Debt over asset includes the interest bearing debts and not Islamic debt or financing or sukuk 

​Investment Management and Corporate Finance - What is the key component of the Capital Market? 

Investors
 The investors may include individual, insurance companies, pension funds, private corporation, public sectors and government agencies. 

Market Intermediaries 
Market intermediaries consists of universal brokers, unit trust companies, investment banks, fund manager, investment advisors, corporate finance advisors and financial planners. 

Market institutions 
Market institutions include clearing houses, issuing houses, central depository and exchanges.

Products 
Products include shares, bonds ( debt securities), hybrid securities, Shariah compliant products, derivatives, warrants, unit trust, structured products,

Issuers 

​What is capital market? 
Capital market consists of market and institutions that facilitates the issuance and secondary trading of long term financial instruments. 

Capital market consists of equity market, debt securities market, financial derivatives market and Islamic capital market. 

The purpose of the capital market is to provide funds to government or industries to meet their long term capital requirements. These may include financing for fixed investments such as housing development, building, plants or even bridges.