Unlock the fundamentals of Bai Istijrar in this in-depth online lecture by AIMS UK! Learn what an Istijrar contract is, how it functions in Islamic finance, and the unique features that set it apart from other Shariah-compliant contracts. This video simplifies complex terms for students, finance professionals, and anyone interested in Islamic commercial transactions.
Discover the practical applications of long-term Istijrar contracts, their contractual structure, and how they ensure ethical trading over time. Whether you're new to Islamic banking or expanding your knowledge, this lecture provides a comprehensive, engaging, and clear explanation of Bai Istijrar.
For a complete lecture on Istijrar, and for more lectures on Islamic Banking and Finance, visit: https://aims.education/what-is-istijrar-and-its-types/
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Discover the practical applications of long-term Istijrar contracts, their contractual structure, and how they ensure ethical trading over time. Whether you're new to Islamic banking or expanding your knowledge, this lecture provides a comprehensive, engaging, and clear explanation of Bai Istijrar.
For a complete lecture on Istijrar, and for more lectures on Islamic Banking and Finance, visit: https://aims.education/what-is-istijrar-and-its-types/
#Istijrar #BaiIstijrar #IslamicBanking #IslamicFinance #Islam #Islamic #Muslim #AIMS #AIMSEducation #ShariahCompliant #IslamicFinancing #IslamicBankingandFinance #Banking #Finance #IslamicStudies #IslamicEducation #Education #elearning #Training #OnlineCourses #WhatIs #onlinecourses
Institute of Islamic Banking and Finance
https://aims.education/islamic-banking-and-finance-institute/
Certified Islamic Banker (CIB)
https://aims.education/islamic-banking-certification-courses/
Certified Islamic Finance Expert (CIFE)
https://aims.education/islamic-finance-certification-courses/
Master Diploma in Islamic Finance (MDIF)
https://aims.education/diploma-in-islamic-banking-and-finance/
MBA in Islamic Banking and Finance
https://aims.education/islamic-banking-and-finance-mba-masters-degree/
PhD Islamic Finance
https://aims.education/phd-islamic-finance-and-banking/
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LearningTranscript
00:00Bismillah ar-Rahman ar-Rahim
00:06Chapter 2. Repeat Sale Agreement or Estedra
00:12The concept of Estedra. It is not a mode of finance, rather a sale agreement, and it may
00:23be defined as a sale agreement where the buyer purchases goods from time to time in different
00:28quantities. Price may be determined in advance with every consignment or after the delivery
00:34of all the consignments, and payment is made at the end of the term.
00:41Key Terms of the Contract
00:43The product is supplied on an ongoing basis through an agreed mode of payment. The commodity
00:49is delivered in instalments over a period of time. Payment may be deferred to a future date.
00:54The price may be agreed in advance, or it could be the future average price prevailing
01:00in the market. Each time there is no offer or acceptance or bargain, and there is one
01:05master agreement where all terms and conditions are finalised.
01:12Estedra Case Study
01:14Ali is a supplier of rice, and Bilal is a retailer. On the 1st of January they sign a sale agreement,
01:21according to which Ali will supply a total of 10 tonnes of rice from January till June to Bilal.
01:27They agree that payment will be made at the end of the total delivery.
01:34Regarding the price
01:35They may agree on a fixed price, for example $1 per kilogram.
01:40Or they may agree that the price will be agreed in advance with every consignment.
01:45Or, they may also agree that the price will be calculated at the end of the delivery,
01:50and it will be according to the average price prevailing in the market.
02:15Types of Estedra
02:17First type
02:18The price is determined after all transactions of purchase are complete.
02:23It is permissible under these conditions.
02:26The seller discloses the price of goods at the time of each transaction.
02:30The sale becomes valid only when the buyer possesses the goods,
02:33and the amount is paid after all transactions have been completed.
02:37The following situations may emerge in the 1st type.
02:44The price of the subject matter was unknown,
02:46but the contract has agreed on whatever the price shall be,
02:49this sale will become valid.
02:52A conflict may emerge if the difference in the market and agreed prices are too high.
02:57In this condition, the sale will become invalid,
03:00and the subject matter cannot be utilised until the conflict is resolved.
03:03The second type
03:08The price is determined in advance, but the purchase is executed time to time.
03:14It is used by Islamic banks for both supplier and customer.
03:20Here is its mechanism.
03:22The first agreement
03:23Between the bank and the supplier
03:24The bank signs an agreement to purchase with the suppliers.
03:29The bank agrees to purchase assets from the supplier at market price,
03:32or at a predetermined discount from the market price.
03:36Whenever the bank has a new customer,
03:38it will
03:38Purchase the assets from the suppliers,
03:41and will
03:41Sell it to the customer on the basis of Moorabaha.
03:48Second agreement
03:49Between the bank and the customer
03:51The bank signs an agreement of sale with the customer.
03:55The bank agrees to sell certain assets in a certain quantity at a certain price,
04:00within a specified time period.
04:01The customer then purchases the assets from the banks,
04:05in tranches and within the specified time period.
04:09This type is referred as Estedra with pre-agreed sale,
04:13because
04:13the customer purchases a given amount of assets over a period of time,
04:17but the price is always known before the sale.
04:20The demand is erupted.
04:21The analyze contains almost nothings,
04:22but the potential features of the pump at a certain price.
04:24If that drug cleared,
04:25if the candidate becomes