can assist its prospective clients in finding alternate avenues for savings, investments and arranging finances by excluding RIBA from such transactions. Due to adequate capital base available with Islamic banks , it offers opportunities for financial innovation and flexibility to structure different types of arrangements which would allow for a shift from debt based financial system to equity and partnership based.
The main modes of financing are
- Murabahah (For financing raw material and finished goods)
- Musharaka (For partnership business )
- Diminishing Musharaka (For property financing)
- Ijara (For financing machinery and vehicles).