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The first question comes from Abu Dhabi, our brother Ferassat. He says that he's been looking into Islamic Finance and

He says that can I explain in simple terms?

He has this point underline. Can I explain in simple terms the concepts of Morabah and

Musharaka and Muldaraba and also can I recommend some books on modern Islamic Finance in the English language?

So these are simple questions, insha'Allah, so let us begin.

And we have never claimed nor do I view myself as a specialist in

Islamic modern Islamic economics. I'm just a minor student of knowledge when it comes to the field of modern finance and I always whenever I talk about finance

I give you the opinions and positions of Ulama far greater authorities in this field in the contemporary issues of finance. However, this question is an easy one because it deals with the classical

definitions. Apparently our brother wants to know how do we understand these terms so that when we open up the books of Ferq or the modern Islamic finance

text that these terms can then be understandable. So insha'Allah, what I'm going to do is present these concepts in very simple language with

illustrations that insha'Allah will be useful for the beginning student of knowledge. And of course, as I've said again, multiple times that modern Islamic economics and the fatawa is related to it is a very, very interesting

enterprise of how classical Ferq connects with modern Ferq. And why and how it is necessary for some areas, not all, but for some areas that we rethink through because our modern economic system is so radically different from the way that

that bartering occurred a thousand years ago that you cannot open up any book of early Islamic law for the first 300 for the first 1300 years and then expect to understand our modern day transactions. You have to extrapolate, you have to rethink through. And so these terms,

and these terms that are found in early Islamic law that are now being used quite a lot when it comes to the issue of modern finance. And because of this, it is important that we understand the classical issue. So let us begin with the first term,

from the root, which means to profit, which means to make a profit, ribach in the Arabic language means your profit. So if I purchase this water for $10 and I sell it for $15, my ribach, my profit is $5. So,

Mura Baha is the active engagement of making a profit. And what Mura Baha entails is an offer to buy merchandise at a set amount of profit. You make an offer to purchase a person's merchandise and you state in the offer that I'm going to give you such and such a profit. However, you much your cost was, however much you spent on the initial investment, I will give you such and such a profit.

A very simple example. Suppose I have come back from a far away land and I have imported this product. I say, this is a product that I have purchased from a far away land and I've come back to my home country and I purchased it once again, let's say for $10.

Now, generally speaking, if you walk into a store and I have this item on display, you will not know the cost. I'm going to advertise it for $15, let's say, and it's up to you to buy or to not buy.

The difference in Mura Baha is that you know the cost of the item and you then add onto it, you tack onto it, the buyer, not the seller, the buyer, tacks on the profit and says, I will give you a profit of 10% or of $10 for every bottle, whatever it might be.

You tack on the profit and you make an offer to buy based upon a specific profit amount. And this transaction, so for example, I come and tell you, I purchased this bottle of water from, Michelle, it is from France, this one, okay, this bottle of water for, let's just say, $10.

I come back to America and you walk into my house or my merchandise store, whatever, and you know, and I have said that this bottle is $10 and you say, okay, I will buy all of your water bottles that you purchase for $10, I will buy it and give you a profit of $2 each, so you will be getting $12 for every $10 or $3 or I'll pay double, doesn't matter how much profit you put on, this is called Mura Baha.

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