Tijarah secara etimologi berasal dari Bahasa Arab at-tijaratu, diambil dari bentuk Masdar (kata dasar) tajara’-tajran-wa ‘tijaratan yang artinya berdagang, berniaga, barang dagangan, atau mengenai perdagangan perniagaan.Praktik dan proses tijarah (perdagangan) dalam konteks hukum Islam mengacu pada dua persoalan penting. Dalam kitab Mausu’ah al-Fiqhiyyah, dua persoalan penting yang dimaksud yaitu: Jual beli.Makelar. Jual beli adalah pertukaran harta dengan harta atas dasar saling merelakan, atau memindahkan hak milik dengan ganti yang dibenarkan. Menurut Sulaiman al...

Standard Bank Limited (SBL) inaugurated the process of depositing treasury invoices on behalf of Bangladesh Government through automatic invoicing system recently. This sort of initiative is remarkable move by any Shariah based bank in Bangladesh. The automated invoicing system is one of the major endeavours of receiving government money in scheduled banks through government software with the aim to bring government services to the doorsteps of the people, through which money will be deposited in the government treasury in a timely manner.SBL started its commercial operations in 1999 ...

Bangladesh Securities and Exchange Commission (BSEC) has given approval for issuing country’s first ever green sukuk which will be convertible, participative and redeemable and asset backed by Islamic Shariah. The Bangladesh Export Import Company Limited (Beximco) is going to issue this first-ever private sector asset-backed Islamic Shariah compliant Sukuk Al Istisna for BDT 30 billion.The Sukuk will be issued for the purpose of construction of the solar projects of Teesta Solar and Korotoa Solar, the two subsidiaries of Beximco Power Company and financing and refinancing the machinery...

Before issuers tap the global fixed market, lead arrangers would have been selected first as they will play a vital role in marketing the debt instruments. Some regional GCC banks would be able to underwrite deals (notably the UAE and Saudi financial institutions), while other GCC banks may face some restrictions from their respective central banks on underwriting cross-border deals.Prospective issuers may wish to conduct some research to see the most active underwriters within a geographical area (for instance, Bloomberg’s US dollar/international Sukuk issuance league table).The m...

Dr Zamir Iqbal, Vice President of Finance and Chief Financial Officer of the Islamic Development Bank (IsDB) marked the listing of the bank’s USD 1.7 billion Sukuk on Nasdaq Dubai by ringing the market opening bell on the 26th of October 2021.  Why it Matters?  The latest listing bolsters IsDB’s position as the largest supranational issuer of Sukuk on Nasdaq Dubai. IsDB has a total value of USD 18.8 billion via 13 issuances listed on the exchange since 2016. According to Dr Iqbal, IsDB’s relationship wi...

On the 25th of October 2021, the State Bank of Pakistan (SBP) invited tenders for the sale of five-year Islamic bonds worth PKR 100 billion against three highways in the country. Why it Matters?  The SBP invited the tenders for sale of Government of Pakistan Ijara Sukuk (GIS) to raise PKR 25 billion on fixed rental rate (FRR) and PKR 75 billion on variable rental rate (VRR). These issuances were noted as one of the Pakistan Government's strategies to raise funds from the Islamic banking sector, in addition to&n...

On the 25th of October 2021, Qatar International Islamic Bank (QIIB) reported a net profit of QAR 840 million for the third quarter that ended on the 30th of September 2021 (3Q 2021), up 7% from 3Q 2020. The company's earnings per share (EPS) for 3Q 2021 came in at QAR 0.55. Why it Matters?  Sheikh Dr Khalid bin Thani, Chairman at QIIB, noted the 3Q 2021 results demonstrate the acceleration in the bank’s growth and that its performance can be attributed to Qatar’s solid economy, which fosters a favo...

Labuan International Business and Financial Centre (Labuan IBFC), a special economic zone of the Government of Malaysia, is positioning itself to become a digital-based gateway with Islamic financial capabilities for global investors and players, according to a statement issued on the 22nd of October 2021. Labuan IBFC comes under the Labuan Financial Services Authority (Labuan FSA), which provides a licensing regime to support the evolving digital financial landscape, permitting digital financial services (DFS) firms to operate within a live market environment.  Why...

Turkey's Islamic finance and banking sector, or participation banking as it is known in the country, has outperformed conventional banks and could account for 15% of the market by 2025. This was revealed by sector representatives, who also expect Istanbul Financial Center (IFC) to make a significant contribution to the interest-free finance system. Why it Matters? Ikram Göktaş, Chairperson of the Board of Directors of the Participation Banks Association of Turkey (TKBB) and General Manager of Vakıf Katılım, explained that the publ...

Sector guides on oil & gas, construction & infrastructure and manufacturing expand the range of reference points for Malaysia’s banks to identify ESG risksNew guides lay out parameters for Islamic banks to incorporate the balancing act of different trade-offs through their Shariah governance processRecognizing that different approaches to ESG trade-offs, even within the same responsible finance framework, can lead to different outcomes helps Islamic banks define the unique elements of their ESG strategy The Value-based Intermediation Community of Practitioners has r...