Islamic Finance Fatawa

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The Shariah Breaches of Preference Shares

Definition of a Preference Share Preference shares are shares that rank above other share types and classes in terms of dividends or capital but have restricted voting rights. They are almost always fixed-income securities. The specifics of preference shares are usually set out in the company’s articles of association or shareholder agreements[1]. Key features of a preference […]
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How to Structure a Shariah Compliant Convertible Note

Data compiled in the last couple of years suggests that the start-up economy is worth over $3 trillion USD. This roughly equates to the GDP of the G7[1]. Start-ups embrace growth and innovation. Start-ups typically test assumptions that haven’t been tested before, through new technologies, products, and services. Funding is the life of a start-up, […]
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Combining Business and Hajj, Profit and Spirit

The greatest days of the year are the first ten days of Dhul Hijjah. The Prophet (sallallahu’alayhi wasallam) said: ‘There is no day more honourable in Allah’s sight, and no acts more beloved therein to Allah than those in these 10 days. So, say tasbih (subhanallah), takbir (Allahu akhbar) and tahlil (la ilaha illallah) a lot.’ […]
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Sifting Through The Crypto Junk

According to CoinMarketCap’s data, there are nearly 20,000 cryptos in circulation and 527 exchanges[1]. Based on this data, an average of 22 cryptocurrencies entered the market daily to date[2].  Many of the crypto-assets that are being released seem to be emulating established crypto-assets such as Bitcoin and Ethereum, with a few cosmetic changes. A lack […]
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Simplified Shariah Structures Guide: Salam

In this simple guide, we will look at the following: What is Salam? Benefits of Salam Key terms of Salam Key requirements of Salam Contemporary Applications of Salam What is Salam? Salam is a sale whereby the seller undertakes to supply some specific goods to the buyer at a future date in exchange of an […]
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Zakat vs Riba | Riba Exposed Series – 2

Two forces have been at odds since the beginning of time; the forces of good and the forces of evil. These battles are manifest in every arena of life, including the economic arena. And it is this economic face/off which is captured in the following verse of Surah al-Rum: “Whatever Riba you give, so that […]
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