London School of International Business (LSIB)

What are the main sources of Islamic finance discussed in the Level 5 Certificate Concepts of Islamic Finance and Banking online?

Islamic finance is a rapidly growing sector that is gaining popularity worldwide. The Level 5 Certificate Concepts of Islamic Finance and Banking online course covers various sources of Islamic finance that are essential for understanding the principles and practices of this unique financial system.

Below is a summary of the main sources of Islamic finance discussed in the Level 5 Certificate Concepts of Islamic Finance and Banking online:

Sources of Islamic Finance	Description
Zakat	Zakat is a form of almsgiving in Islam, where Muslims are required to donate a portion of their wealth to help those in need. It is one of the five pillars of Islam and plays a crucial role in Islamic finance.
Sukuk	Sukuk are Islamic bonds that comply with Shariah principles. They are structured to generate returns without violating Islamic laws on interest (riba). Sukuk have gained popularity in the global financial market as an alternative investment instrument.
Mudarabah	Mudarabah is a form of partnership where one party provides capital, and the other party provides expertise and labor. Profits are shared based on a pre-agreed ratio, while losses are borne by the capital provider. It is commonly used in Islamic banking and finance.
Musharakah	Musharakah is a joint venture partnership where all partners contribute capital and share profits and losses based on their capital contribution. It is a popular mode of financing in Islamic finance for project financing and business investments.
Ijarah	Ijarah is a leasing contract where the lessor (owner) leases an asset to the lessee (user) for a specific period in exchange for rental payments. It is commonly used in Islamic banking for asset financing and leasing transactions.

These are just a few of the main sources of Islamic finance discussed in the Level 5 Certificate Concepts of Islamic Finance and Banking online course. By understanding these sources, students can gain a comprehensive knowledge of the principles and practices of Islamic finance, which is essential for anyone looking to work in the Islamic finance industry.

Enroll in the Level 5 Certificate Concepts of Islamic Finance and Banking online course today to learn more about the fascinating world of Islamic finance and banking!