slideshow

Mosa’qaat Contract in Islamic Finance

Posted on 11th August 2012 by Camille Paldi,

 

Temple near Beirut

Thoughts from Iraj Toutounchian’s Islamic Money & Banking, Integrating Money in Capital Theory

This is a contract between the owner of a ‘tree and the like’ and an Amel, against a clear-cut share of the yield, which includes fruit, flower petals, and so on.  Again, the constituent parts of Mosa’qaat can be separated into tree, labor, yield, and time period.  The ‘tree and the like,’ which form the subject of an agreement must possess the following characteristics:

  1. The trees and plants should be such as have gone into the ground and be capable of staying in the ground for more than one year.  It then follows that vegetation and plants of a seasonal nature, which naturally last less than one year, cannot be the subject of such a contract.
  2. Non-yielding trees, which do not give fruit, cannot be the subject of a Mosa’qaat agreement unless their leaves or flowers have market value.
  3. The garden (or orchard) owner should really own the trees or interests therein, and/or should be entitled to use them.
 

The specification and boundaries of the orchard or garden should be stated in relation to the yield, as well as the type and number of trees.  If the share of the parties is fixed as a definite quantity of the yield, and/or the yield of certain trees is reserved for one of the parties, and the rest for the other party, the transaction is void.  In the same way, it is not permissible for the entire yield to go to one of the parties.  (Iraj Toutounchian)


Posted on 11th August 2012 by Camille Paldi


Comment on this post







Twitter

    • 31st July @camille paldi
    • Kuveyt Turk issues TRY 160 million Sukuk - http://t.co/2ruDNdwvPQ #GoogleAlerts
    • 31st July @camille paldi
    • Islamic Finance banks finding support in Turkey - http://t.co/k6lYX8rCFg #GoogleAlerts
    • 31st July @camille paldi
    • What Dodd-Frank Can Learn From Islamic Finance - http://t.co/mhfODqiS9j #GoogleAlerts
    • 30th July @camille paldi
    • Register today! camille@faaif.com. Get ready Forest Gate! https://t.co/0XYY78wOIn
    • 30th July @camille paldi
    • Bank Muscat participates in financial services roundtable in London - http://t.co/UzliYnyq9S #GoogleAlerts
    • 30th July @camille paldi
    • Adel S Al-Ghamdi: Saudi Stock Exchange Opts for Quality - http://t.co/BrEm5ju6mQ #GoogleAlerts
    • 30th July @camille paldi
    • Renaissance Group prices $125 million 7.9 per cent dual-currency perpetual bond - http://t.co/yb6lJ7FSK4 #GoogleAlerts
    • 30th July @camille paldi
    • Moody's assigns first time ratings to Nigeria's Access Bank - http://t.co/JMO3JEn2Os #GoogleAlerts
    • 30th July @camille paldi
    • KFH-Turkey issues sukuk worth USD 58 mln - http://t.co/AkkBmCsmRz #GoogleAlerts
    • 30th July @camille paldi
    • MBSB-Muamalat merger, full-fledged Islamic bank on the cards? - http://t.co/a5OsuzlFbz #GoogleAlerts
    • 30th July @camille paldi
    • Bangladesh http://t.co/uc0LiGpj5p to keep conventional, Islamic banks separate - http://t.co/zLWfoZoDaQ #GoogleAlerts
    • 30th July @camille paldi
    • LCI closes innovative Islamic finance facility - http://t.co/hvT14T8BUU #GoogleAlerts
    • 29th July @camille paldi
    • Junk-rated sukuk top market on Saudi housing shortage - http://t.co/zIVrU5c1Kk #GoogleAlerts
    • 29th July @camille paldi
    • Kuwait preparing Islamic bond legislation to help finance budget-min | Reuters - http://t.co/mal6ykK2Xt #GoogleAlerts
    • 29th July @camille paldi
    • Indonesia sells 2.93 trillion rupiah of Islamic bonds, above target - The Economic Times - http://t.co/atpGqoXGEi #GoogleAlerts
    • 29th July @camille paldi
    • Markaz examines trends in the GCC bonds & Sukuk primary market - CPI Financial - http://t.co/4S4iuMeLNy #GoogleAlerts
    • 29th July @camille paldi
    • South Africa proposes extending Islamic bonds to corporate issuers - http://t.co/GkZrwp1FZE #GoogleAlerts
    • 29th July @camille paldi
    • China-led AIIB plans to use Hong Kong as sukuk issuance platform - http://t.co/lULDAilNMs #GoogleAlerts
    • 28th July @camille paldi
    • https://t.co/MbTmG92JBM
    • 28th July @camille paldi
    • Goldman Sachs : Islamic financing a viable option - http://t.co/0ZkiCSpSD3 #GoogleAlerts

Articles

Reforming Economics and Finance in the Light of Abrahamic Principles

Reforming Economics and Finance in the Light of Abrahamic Principles

Introduction

The modern day economic system is built upon and around interest-based lending, which allows one class of people to grow rich at the expense of the majority of the population. Interest has been prohibited in all Abrahamic religions for essentially the same reaso...

Posted on 1st July 2015 by Camille Silla Paldi

China's Entry to the Islamic Finance Market

China's Entry to the Islamic Finance Market

 

By Matthew Pendrey

Assistant Director at The Royal Bank of Scotland

 

 

In April 2015, Qatar International Islamic Bank signed an historical agreement with Southwest Securities, based in Chongqing, to develop Shari'ah-compliant finance across ...

Posted on 1st July 2015 by Matthew Pendrey

Islam Explains Why Interest is Prohibited in the Bible and Torah

Islam Explains Why Interest is Prohibited in the Bible and Torah

 

By Camille Paldi, CEO of FAAIF, camille@faaif.com

 

 

Lending money is not prohibited in the Bible. What is prohibited is charging abusively high interest. This is because high-interest loans...

Posted on 6th June 2015 by Camille Silla Paldi

The Changing Face of Banking in Dubai

The Changing Face of Banking in Dubai

The Changing Face of Banking in Dubai

Posted on 30th May 2015 by Matthew Pendrey

Video

Find all our videos here, and also a link to our YouTube video channel so you can view our 'video of the week'

Submit

We would like you to get involved with our site. So if you want to submit Articles, Videos, Events and Call for Papers, please click the button below:

Submit

Valid XHTML 1.1 |  Valid CSS |  Web Design in Durham and Newcastle |  Copyright © 2015

* Prices are converted at USD$0.2723 per AED 1