Download Bai - AlHuda CIBE

Bai ( Buying & Selling)
Presented by :
Zubair Mughal
CEO – AlHuda: Centre of Islamic Banking & Economics
Basic Rules of Bai

Existence of Product/Commodity

Ownership of Product/Commodity

Possession of Product/Commodity
Basic Rules of Bai

Unconditional basis

Product have value/Price.

Bai on Such product which is
permissible in Islam.
Basic Rules of Bai

Product Must be Identify, clear with all
demanding Qualities.

Not based on any incident, struggle etc

Price must be clearly identified.
Bai (Buying & Selling)
Basic Kinds of Bai
Kinds of Bai
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Bai
Bai
Bai
Bai
Bai
Bai
Musawamah
Murabaha
Surf
Salam
Istisna’
Urboon
Basic Kinds of Bai


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Bai Eenna
Bai Touliya
Bai Wadhia
Bai
There are three basic type of Bai’s which
are using in Islamic Banking as the
mode of financing in Pakistan
 Murabahah
 Salam
 Istisna’
Murabahah


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Basically, it’s not a mode of financing
but a source to avoid interest Dealing
It’s not a type of loan, but a deal (Bai)
Murabahah can be used as source of
financing when client needs funds to
purchase any product/Machinery etc.
Murabahah



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Sharing of Risk of loss differentiate
Murabahah from the interest category
Product Must be bought from third
party for avoid buy back transaction
Roll over is not Valid in Murabahah
If actual cost can not be identified then
Murabahah deal not possible.
Bai
Important Note
Following 3 Basic Rules of Bai are
exceptional for Salam & Istisna’



Existence of Product/Commodity
Ownership of Product/Commodity
Possession of Product/Commodity
Salam

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
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Pay 100% amount in Advance.
Product must be quantified, identified
and Measured with quality.
Date of delivery, Time, Place must be
mentioned clearly in advance.
Salam is not valid for a specific
farm/land/garden.
Istisna’



Not necessary to pay the 100% amount
in advance Like Bai salam.
Price must be decided on beginning of
the contract.
Qualities, features of that product must
be clearly identified.
Bai
Differences Between
Istisna and Salam
Differences Between Istisna
and Salam


Istisna deal with manufacturing items,
but Salam could or could not be
manufacutred, but salam ideal of
agriculture sector.
In salam advance payment is necessary,
but in Istisna’ its not.
Differences Between Istisna
and Salam


Date, time of delivery the necessary
part of Bai Salam, But in Istisna, it is
not the part of the deal.
In Bai salam, it can be cancelled one
sided, but in Istisna, it could be
cancelled, if production is not started
yet.
Type of Bai according to Quality
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Bai
Bai
Bai
Bai
Salah
Fasid
Batil
Maqoof
Type of Bai according to Quality
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Bai Majool
Bai Muqayaddah
Bai Mu’ajal
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