Examining the Anatomy of Mudaraba Islamic Financing

Overview

  • This Practice Note present I high level analyses of the anatomy of Mudaraba Islamic Financing.

Practical Guidance

The evolution of Islamic finance

The requirement for financing is an essential requirement of business and commerce. Conventional financing has been operational for hundreds of years whereas Islamic financing is a recent phenomenon which gained momentum in the mid-1970s following the incorporation of the Islamic Development Bank and Dubai Islamic Bank. Both of these banks operate within the boundaries of Sharia, which is the Islamic code of law, and since their inception, Islamic financing has been gradually expanding and has become one of the fastest growing sectors in the financial markets.