Asset, Service, Right or Debt? | Fiqh Series

This article is part of our Fiqh blog series which aims to discuss more advanced subjects relating to Islamic Finance and Fiqh al-Mu’amalat. This blog piece addresses the different types of subject matters that are traded and transacted. Introduction One of the fundamental tasks in any Shariah review or Shariah product development is to understand […]
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Treatment of Surplus from Sale of a Collateralised Asset

QUESTION How should surplus from the sale of collateral? ANSWER In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. The Answer: Any surplus proceeds in excess of an outstanding debt realised from the sale of a collaterised asset must be returned to the debtor. The Fiqh (jurisprudence of the […]
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The Obsession with Possession in Islamic Finance

In almost all contemporary Islamic Finance structures and products, a fair amount of attention is given to how assets are being possessed, transferred and how the associated risks are being allocated. Similarly, retail investments are vetted and screened to understand whether an investor has possession of the underlying asset. What’s the big deal and obsession […]
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