We also created Islamic Microfinance Solutions that comply with Shari’ah Law to help economically vulnerable Muslim families to develop their livelihoods. We have found that the needs of these families are largely underserved by the microfinance market. To bridge this gap, we offer Murabha (buying and selling), Mudaraba (investment), Ijarahah (leasing facility, Diminishing Musharaka Partnership), Salam (deferred delivery sale facility), and Wakalah (working capital – agency model).
This financial system which operates according to Islamic law (which is called sharia) and is, therefore, sharia-compliant. Just like conventional financial systems, Islamic finance features banks, capital markets, fund managers, investment firms, and insurance companies. However, these entities are governed both by Islamic law and the finance industry rules and regulations that apply to their conventional counterparts. Islamic economics is based on core concepts of balance, which help ensure that the motives and objectives driving the Islamic finance industry are beneficial to society. These considerations include promoting justice in all economic activities, remembering that all people have mutual responsibility for all others, and using the earth’s resources wisely.