Palgrave CIBFR Studies in Islamic Finance
Series Editors
Nafis Alam
Henley Business School, University of Reading, Selangor, Malaysia
Syed Aun R. Rizvi
Suleman Dawood School of Business, Lahore University of Management Sciences, Lahore, Pakistan

The Centre for Islamic Business and Finance Research (CIBFR) is a global center of excellence for developing Islamic business and finance as a scientific academic discipline and for promoting Islamic financial products, monetary and fiscal policies, and business and trade practices. Based at The University of Nottingham campus in Malaysia, CIBFR looks at the multi-dimensional aspects of Islamic business, cutting across the major themes of Islamic economics, Islamic finance and the Halal market. True to the pioneering nature of the research CIBFR undertakes, the Palgrave CIBFR Series in Islamic Finance offers empirical enquiries into key issues and challenges in modern Islamic finance. It explores issues in such varied fields as Islamic accounting, Takaful (Islamic insurance), Islamic financial services marketing, and ethical and socially responsible investing.

More information about this series at http://​www.​palgrave.​com/​gp/​series/​15190

Mohsin Ali and Najeeb Zada

The Islamic Finance Trading Framework

Legitimizing Profit Making

Mohsin Ali
Taylor’s Business School, Taylor’s University, Subang Jaya, Malaysia
Najeeb Zada
Department of Islamic Theology, Islamia College Peshawar, Peshawar, Pakistan
ISSN 2523-3483e-ISSN 2523-3491
Palgrave CIBFR Studies in Islamic Finance
ISBN 978-3-319-96612-0e-ISBN 978-3-319-96613-7
© The Editor(s) (if applicable) and The Author(s) 2019
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Contents

Index 83

List of Figures

Fig. 3.1 Ordinary murābaḥah structure 28
 
Fig. 3.2 Application of the salam contract in agricultural financing 32
 
Fig. 3.3 Classical istisna structure34
 
Fig. 3.4 Lease of a moveable asset36
 
Fig. 3.5 Basic structure of a fee-based wakalah bi al-istithmar contract41
 
Fig. 3.6 Musharakah mutanaqisah structure for home financing46
 
Fig. 3.7 Mudharabah process flow47
 
Fig. 3.8 Structure of bay al-sarf in spot forex50