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Lesson 65 E1d

Islamic financial instruments

You'll learn about the five main Islamic financial instruments and how they work as alternatives to conventional interest-based finance.

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In this lesson

  1. 0:00 Islamic financial instruments overview
  2. 0:05 Murabaha trade credit explained
  3. 0:40 Ijara lease finance agreement
  4. 1:11 Mudaraba equity-style partnership
  5. 1:43 Musharaka joint venture structure
  6. 2:23 Sukuk Islamic bonds concept
  7. 3:07 Practice question walkthrough

About this lesson

This video covers Murabaha (trade credit with a fixed mark-up), Ijara (lease finance), Mudaraba (equity-style profit sharing), Musharaka (joint venture partnerships), and Sukuk (Islamic bonds). Understanding these instruments is essential for FM, AFM, and SBR papers, where Islamic finance appears in questions about alternative financing methods and global financial practices. You'll see how each instrument manages risk differently and when banks typically use them in practice.

Duration: 4m

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