Islamic FInance OT Flashcards
1
Q
Riba
A
Not allowed to charge interest on money
2
Q
Murabaha
A
A credit sale. Charge a higher price, no interest
3
Q
Ijara
A
A lease. We buy asset and rent it to the business. Pay rent rather tnan interest
4
Q
Mudaraba
A
Profits are shared between both parties. But all losses are suffered by the investor
5
Q
Musharaka
A
Both parties provide capital (partnership). Share profit but also share the losses
6
Q
Sukuk
A
Buy an asset and to finance buying property. Income from asset is distributed to investors instead of interest
