The basic framework for an Islamic financial system is a set of rules and laws, collectively referred

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Question:

The basic framework for an Islamic financial system is a set of rules and laws, collectively referred to as Shari'ah which also helps govern the economic, social, political, and cultural aspects of Islamic societies.
(a) Briefly define Maqasid al-Shari'ah. Describe 4 main characteristics of Maqasid al-Shari'ah.

2
Islamic finance gives people the freedom to sell and purchase their properties and exchange their wealth and goods with each other to fulfill their different needs. These activities must be conducted in a proper and fair manner. Every shariah sale contract has a different nature and legal effects, such as the transfer of ownership. risk-taking, and profit distribution. When these contracts are different from each other in nature and legal purpose, they have different requirements and conditions which should be met to make the contract valid according to the Shariah.
(a) Describe the three classifications of the shariah contract. Provide one example of each.

3
Equity-based contracts involve partnership and the sharing of risks and rewards in a venture. In Islamic equity finance, the ownership of shares in a company is considered proportionate ownership of the company's business and assets. Muslim investors therefore cannot own a company that is involved in non-Shariah-compliant activity.
(a) Describe the characteristics of Islamic Equity.
(b) Islamic banks serve as a financial intermediary with an addition of the avoidance of Riba, and promotion of social and economic growth whilst upholding Islamic moral values and rulings. Briefly describe the uses of Ijarah.

4
The Sukuk market has proven its usefulness as a significant source of capital for public and private sector entities. As a result, the Sukuk market has gained great popularity both in Islamic and non-Islamic countries.
(a) Dicess the Sukuk Istishna structure