Islamic working capital finance through Murabahah for a construction company
Joint Authors
Ullah, Karim
Jan, Shafi Allah
Khan, Zuhur
Source
Journal of Islamic Business and Management
Issue
Vol. 7, Issue 1 (30 Jun. 2017), pp.140-148, 9 p.
Publisher
Riphah International University Riphah Centre of Islamic Business
Publication Date
2017-06-30
Country of Publication
Pakistan
No. of Pages
9
Main Subjects
Financial and Accounting Sciences
Abstract EN
-This case study presents a narrative of how mur¯abah.
ah, a sale-based Islamic mode of financing, applies in the banking routine to create a real working capital finance service to a construction company.
The construction company was looking to finance diesel, bitumen, and petrol to be used as working capital in its construction projects for the Government.
The case presents interesting episodes of the client company and the bank as to how they reached the situation of applying mur¯abah.ah and how that fits in within the broader Islamic banking regulatory framework of the country.
A customised mur¯abah.ah process flow is designed and applied with subsequent changes due to various market and external factors.
The case shows how the bank purchases the goods from refineries and sells the same at a cost-plus to the construction company and how all settlements are made till the maturity of the case while maintaining Shar¯ı‘ah compliance.
Many supporting parties such as tak¯aful company, legal entities, credit information bureau, and suppliers provided supporting services to execute mur¯abah.
ah in the context of working capital finance.
The roles of each party and issues in the application process are discussed
American Psychological Association (APA)
Ullah, Karim& Jan, Shafi Allah& Khan, Zuhur. 2017. Islamic working capital finance through Murabahah for a construction company. Journal of Islamic Business and Management،Vol. 7, no. 1, pp.140-148.
https://search.emarefa.net/detail/BIM-798400
Modern Language Association (MLA)
Ullah, Karim…[et al.]. Islamic working capital finance through Murabahah for a construction company. Journal of Islamic Business and Management Vol. 7, no. 1 (Jun. 2017), pp.140-148.
https://search.emarefa.net/detail/BIM-798400
American Medical Association (AMA)
Ullah, Karim& Jan, Shafi Allah& Khan, Zuhur. Islamic working capital finance through Murabahah for a construction company. Journal of Islamic Business and Management. 2017. Vol. 7, no. 1, pp.140-148.
https://search.emarefa.net/detail/BIM-798400
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 148
Record ID
BIM-798400