Question 1 : Mohamed and Hasan enter a legally binding contract of Mudaraba as active partners for a predetermined duration of five years. Mohamed obtains ten thousand Bahraini dinars from a Rubul-mal Hasan. And they agreed to divide their profits in 40:60 percentage. In addition, the Rub-ulmal has placed constraints on the Mudarib in this transaction. And it was decided that the contract would automatically expire at the conclusion of the term if not terminated by mutual agreement prior to the sale of an illiquid asset.

1. Relate and adapt the circumstances in which Mohamed will be entitled to receive a salary

2. Evaluate the different capacities of Hasan which can apply to the given case. [5Marks]

Question 2: The Bahraini government sold a plot of land to XYZ company. The land was then leased to the government by XYZ company for a 5-year period, which corresponded to the duration of the trust certificates. The XYZ company declared that it would hold these assets in trust for the trust certificate holders. The lease rental payment from the government to XYZ company will exactly match the trust certificates' periodic distribution payments.

1. Determine the Islamic financial systems for this Sukuk [3 Marks]

2. Determine the different parameters needed to be observed in Sukuk Ijara and Sukuk al Mudaraba [7 Marks]

3. Use analytical tools to assess the role of the SPV in Sukuk. [7 Marks]

Question 3 : Ebrahim, a taxi driver, insured his motor vehicle with Saudi Insurance in Bahrain, fulfilling all of the requirements of comprehensive Takaful for the sum of BD 5,700

with a premium of BD 100

1. Relate and adapt the sentence Mutual support and assistance, with the fortunate many supporting the suffering few " to the concept recognized by Takaful [8 Marks]

2. Assess the different takaful contracts for Ebrahim

3. Determine in which scenario can Ebrahim (the Takaful participant) gets renewal discount [8 Marks]