Islamic Banking

STANDARD NOTES FOR MUAMALAT MANAGEMENT

Muamalat Mgmt

Muamalat is an Arabic word meaning financial transaction. Muamalat is set of rules (fiqh) related to worldly matters such as business, trading, commerce transactions, lending and borrowing contract. Muamalat also involves rules regarding the social transactions between human such as marriage, inheritance (waqaf, faraidh) and other human activities. Therefore, it has developed Shari'ah principles based on Al-Quran and Al- Sunnah as the main references that can be used in explaining the ever-changing human needs. Understanding the objectives of Shari'ah or Maqasid of Shari'ah is essential for the development of the Muslim ummah in all areas of life, particularly in the area of muamalat. Muamalat nowadays associated to economic and finance since these elements are the key happiness in this world and hereafter. As a muslim we are believe that all wealth on this world belongs to Allah. Human are only the appointed trustees to manage and distribute the wealth amongst them. Human are encourage to seek wealth through knowledge and skill given by Allah.

Why it’s important

* Do not have subahah in the transaction such as riba, mayshir and grahar. It’s obligates the Shariah principles.

* Islam encourages work in general, and trade and commerce in particular.

* Muslims must be ethical in all aspects of life.

* Islamic principles strongly focus the observance of ethical and moral code.

* Islamic businesses must operate on a basis of fairness and integrity, while also treating everyone equally.

* In Islamic business there must be fairness and trust between people which is very important for dealing with people.

* Business Ethics in Islam is based on tawhid, or unity principle, which determines the relationship between God and man; man and man; and man and society

Maybank Islamic Bhd

Maybank Islamic Berhad, the Islamic finance arm of Maybank Group is Malaysia’s premier Islamic bank...