SHARIAH COMPLIANT BUSINESSES, BENEFITS AND CERTIFICATIONS IFSC 2013 - - PowerPoint PPT Presentation

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Jul 06, 2023 8 likes •60 views

SHARIAH COMPLIANT BUSINESSES, BENEFITS AND CERTIFICATIONS IFSC 2013 Singapore, 1st Oct 2013 Dr Cedomir Nestorovic Professor ESSEC Business School Director Executive MBA Asia Pacific Academic Co-director MBA Arabian Gulf University, Manama,

SLIDE 1

SHARIAH COMPLIANT BUSINESSES, BENEFITS AND CERTIFICATIONS

IFSC 2013

Singapore, 1st Oct 2013

Dr Cedomir Nestorovic Professor ESSEC Business School Director Executive MBA Asia Pacific Academic Co-director MBA Arabian Gulf University, Manama, Bahrain

SLIDE 2

What is a Shariah compliant business ?

Shariah-based products

Real spirit of the Shariah Observance of Shariah principles in substance Emphasis on the Holy Qur’an and Sunna

Shariah-compliant products

Non contradicting Shariah ruling Observance of Shariah principles in form Emphasis on jurisprudence

SLIDE 3

2 examples: Islamic Finance and Halal Food

Islamic Finance

Musharaka Shrikat Al-Aqd Shrikat Al-Milk Shrikat Mutanakisa In-house Certification

Halal Food

Gelatine Slaughtering by Al-Kitab Mechanical Slaughter Pre-slaughter Stunning Third-party certification

SLIDE 4

Halal Food

Gelatine Raw materials from zabihah slaughter only Slaughtering by Al-Kitab Slaughter by a Muslim only Mechanical Slaughter No mechanical slaughter Pre-slaughter Stunning No pr-slaughter stunning

SLIDE 5

What is the benefit?

Criteria:
1. Friendly attitude of bank’s staff
2. Expertise of bank’s advisor
3. Good repute of the bank
4. Variety of financing options
5. Shari’ah compliance
6. Low service charges

Source: Criteria for selecting an Islamic bank in Pakistan JIMA, vol 2, n°1, 2011

Spiritual benefits
1. Individual benefit: Purification
f income
2. Social benefit: reducing