Islamic Finance - The foundation of Islamic financial goods are contracts
By this point, it should be clear that Islamic finance relies on a number of contracts to underpin its goods and services. The glossary of contract and features explains the many contract types. Specific features and conditions are added to a specified contract type to make it practical and Shari'ah compliant. In comparison to including all necessary terms and conditions to make a product Shari'ah-compliant and financially successful, choosing a specific contract is rather simple. As a result, every applicable Shari'ah principle pertaining to that contract and product must be taken into account in order for it to be a viable contract for every Islamic financial product. In this environment, it is essential to have a thorough understanding of Shari'ah principles in order to assure compliance as well as to create market-leading goods and services. The process of choosing appropriate and pertinent contracts and applying all of those contracts' guiding principles into the final product results in the development of successful Islamic financial solutions. From a Shari'ah standpoint, there is no other option when a contract has been chosen or designated as the foundation of a financial product than to incorporate its prominent principles into all facets of the product.
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