PROPOSING SUITABLE SHARĪʿAH COMPLIANT FINANCING SOLUTION TO THE BUSINESSES FROM INDUSTRY PERSPECTIVE

Abstract

This paper highlights the importance of understanding (i) the features, risks and practical implications of modes of financing used by Islamic banks and, (ii) the business model of the customer in order to propose suitable and suitableSharīʿah compliant financing solution to the businesses. Lack of understanding in this regard may cripple the provision of ensuring strict Sharīʿah compliance guidelines in true letter and spirit. The paper also emphasis the need of rigorous capacity building of Islamic banking staff, awarenessSharīʿah sessions for customers and other related parties so that everyone knowthe role and responsibility expected from them while dealing in Islamic banking products and services.