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Mr. Jawad can take advantage of the features of Shariah-compliant banking at XYZ Islamic
Bank. This will enable the business to deploy the surplus money for the activities of the business
as needed. The main feature of Islamic banking is that the activities of the bank should be
shariah-compliant (HSBC. 2020). The two types of investment and deposit accounts of Islamic
This form of investment is shariah compliant. It is a profit-sharing partnership. There is a preagreed ratio for sharing the profits. The losses are share as well based in proportion to the
investment of each partner. This is the best form of Islamic financing and should be the preferred
This form is investment is shariah-compliant as well. This investment involves the purchase and
resale of an asset. The investors buy the asset and agree to sell at a pre-agreed price. This allows
the user to secure credit while eliminating interests.
For the purchase of delivery vans, Mr. Jawad could secure finance using the financing schemes
available as part of Islamic banking (HSBC, 2020).
This is an investment scheme that is shariah compliant. There are two main parties in this
scheme, Rab-ul-Mal, and Mudarib. Rab-ul-Mal is the investor, while Mudarib is the manager of
the investment. For this case, it is Mr. Jawad who needs the funds for the purchase of delivery
vans. This scheme is highly attractive because if there are losses, the loss will be borne by the
Rab-ul-Mal. The profits are for share at a pre-agreed ratio.
The Central Bank of Bahrain (2020a) has established rules for banking and finance, which apply
to the activities of financial institutions and individuals. There are 7 volumes, and Volume 1
applies to conventional banks. T...
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