How Islamic Finance works?
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- čas přidán 29. 08. 2024
- In this video, we explore how Islamic finance works by connecting its activities to the real economy to bring value and benefit to society as a whole. Unlike conventional finance, which often deals with money-for-money transactions and leads to the financialization of the economy, Islamic finance focuses on tangible assets and real wealth creation.
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#IslamicFinance
ma shaa Allah ... Very wonderful briefing of the topic , may Allah bless you to increase more the content of discussions about Islamic applications in real life ...
Tabarak Allah akh Almir !
Im recommending your video to people. I hope more people can get educated on a topic that was highly emphasized in the Quran
May Allah bless your struggle.
Beautiful.
Ibn khuldom: market where transactions occur and theses transactions should be wholesome and not limited to finance only.❤
JazakhAllahu Khayran for the explanation! One small note, I feel like the portions of the video which shrink your screen and show another graphic are distracting from the topic. I believe putting you as the main focus throughout would be better. Just my opinion, but jazakhAllahu khayr for all that you do, may Allah bless you and your family!
masha Allah....
very nice explanation ... ... ... 🍉
May Allah increase you in knowledge ❤
Hvala, Allah c.c. razı olsun. Great content as always
Recently came across your channel and am glad that this channel exists.
Wonderful work
Welcome aboard!
Beautifully explained. Masha Allah!
Allahumma Barik
Brother Almir with due respect almost all islamic banks are borrowing money from other commercial banks and then kind of acting as brokers so are we not supporting the riba based system indirectly ?
I don't think that statement is correct. Try to be specific.
@@AlmirColan he is very right,Its not "islamic" banking at all
@@hahaloser3914the whole system of money creation is broken and probably not Islamic. Governments can create money which is backed by nothing. Worse fractional reserve banking means private companies can also create money. It would be very difficult if not impossible for Islamic banks to run on a 100% reserve system or if they did they could only give out very few loans on considerably worse terms than interest based options. At least Islamic finance systems are better if not perfect
It was a great explanation. 👍
Amazing explanation
Salam, can you make video explanation how Islam intrepret inflation and time value of money? Compound Interest was justified in the conventional financing due to these inflation and time of value which is taught in all economics, and finance classes
a great explanation
How come you never show the mathematical difference between the two systems?
Lets say for purchasing a house in a Salam contract, what would be the net difference in profit/loss for all parties involved in the transaction.
I’ve been your student for a while now and hoping to learn more. JazaakumuLlahu khoiron.
But please sir, the sound in the background is kind of distracting. Thanks a lot for your attention.
Thanks for the feedback. I will let the editor know
Brother, thank you very much for your efforts.
However, I have a really bad gut feeling about the Islamic financing. Especially the so called "Murabaha".
Even if the Islamic bank is buying the house and then reselling it to you, they are still just making money out of money.
If they actually owned the house before you even showed interest, then that's fine. But they don't.
The way it works, at least in my country, you go to a bank and say I want to buy that house or car
They go and get buying contract for that house and have it next to your selling contact.
And then to make it "islamic" they sign the buy first and then they sign the selling within minutes.
This act don't set well with me.
If a bank want to invest and buy houses, so they can selling them to people and make profit, that's absolutely fine. As long they own the houses before even having a buyer.
Now of course this can mean that they are risking loosing their investments, but that's what trade is.
But they never do it that way.
So that's why I have a bad gut feeling about this
That is for sure one of the challenges when structuring home financing arrangement where banks or financial institutions can not own property.
JazakAllah khayr for the simple yet concise explanation. Does this mean money for money transactions cause inflation?
Money-for-money transactions such as loans can impact inflation, but other major forces like supply chain disruptions and monetary policies also play significant roles. See my documentary and case study on Turkiye's economy for more details - Available at this playlist - czcams.com/play/PL648OdKhWVX-87SLEn5bQ0-_VnXoQpnB1.html&si=wn_fkxVhROpVk24C
Brother almir how are the islanic banks able to habe some much money reserved for these loans without generating money ?
Interest free does not mean profit free
WALAIKUMUSSALAM WA RAHMATULLAH
Assalamu alaikum
Can there be details explanations about a Hadith:
Are all the dates of Khaibar like this? He said: Allah's Messenger (ﷺ) , it is not so. We buy one sa' of (fine quality of dates) for two sa's out of total output (including even the inferior quality of dates), whereupon Allah's Messenger (ﷺ) said: Don't do that, but like for like, or sell this (the inferior quality and receive the price) and then buy with the price of that, and that would make up the measure.
Sahih Muslim, 1593 a
What are the ways do we have to do transaction and How?
That is the rule for exchanging ribawi goods of the same type. That is why we say money-for-money transactions must be on the spot and 1:1 (in equal amounts). I explained these rules in this video. See the discussion on types and rules of Riba here -czcams.com/video/18FJgXjqW0w/video.html
Can you please make a video on share market investing..
Its on my todo list ;)
@@AlmirColan ok sir
Thank you
Glad to talk to you
Brother i have a few questions. I am trying to learn
why does a man who cannot afford a house needs to burden himself with buying himself a house using loans. What does Islam say about this question?
Just because the riba based banks have created a habit / trend of getting people into a buying spree by making easy and long periods of loan, do we have to follow their footsteps. These tools only make the society drown into loans, liabilities and even unnecessary desires
Please share your thoughts Shaykh
Because sometimes that’s the only way to purchase a necessity like a house. Besides, an installment sale is different from an interest bearing loan.
To own a home or not is an individual decision based on personal assessment and preferences. My opinion is that if you can find a way to own a house that does not go against Islamic principles, then it is better to own a home than not to. A more detailed explanation is here: czcams.com/video/1nhQ0tOcEl0/video.html
@@AlmirColan jazakallah khair
how can I buy a home without taking a mortgage?