LONG TERM OBJECTIVES AND INVESTMENTS

(NABA HASHMI, Karachi)

Without Long Term objectives , an organization would drift aimlessly toward some unknown end. it is hard to imagine an organization or individual being successful without clear objectives.

A long term planning of a financial accountant to increase investment for an Organization.

Long term planning of a management Accountant to increase Production in an Organization by Investment of Shares holders.

FINANCIAL OBJECTIVES

Financial objectives include those associated with growth in revenues , growth in earning higher dividends , larger profit margins , greater return on investment , higher earnings per share , a rising stock price , improving cash flow.
STRATEGIC OBJECTIVES
A Larger market shares, quicker on time delivery than rivals, shorter design to market times.
PRACTITIONERS OF U.S
Many Practitioners and Academicians attribute a significant part of U.S industry’s competitive decline to the short term rather than long term.
ISLAMIC INVESTMENT
Islamic investors perceive islamic investment as an act of worship, accordingly, there is a number of unique features arising from the religion of islam governing investment.
Islamic investment as a viable alternatively to the conventional investment. Islamic investor need to earn halal profits, hence in contrast to conventional investors that consider investment as a way to generate more materialistic profit.

Islamic investment lately, such evaluation involves a wide range of issues related to the practice of this industry.

The islamic scholars tried to define Islamic investment In the light of Holy Quran and Hadees.
Taqi usmani Suggested that , Islamic investing is employing the surplus money for the purpose to earn Halal profit in strict conformity with the precepts of Islamic shariah . in its Broader meaning AL-ISTITHMAR includes any activity leading to the increase of capital as long as it complies with islamic principles.
Islamic Investment can be defined as using a certain assets in accordance with shariah to generate profit in this world.
Islamic investors must consider the inclusion of Ethical standards, such as fairness and justice in the investment decision to fulfil the objectives of shariah . that is to say islamic investment aims to provide A fair Circulation of wealth, enhance employment rate rate and to maintain the stability of the economy.
PROHIBITION OF RIBA
Riba is unjustified increment in borrowing or lending money.

In the light of surah Al Baqarah (2:278 -279)
O you who believe! Be careful of (your duty ) to Allah and relinquish what remains (due) from usury, if you are believers but if you do (it) not, then be apprised of war from Allah and his Messenger, and if you repent, then you shall have your capital, Neither shall you make (THE DEBTOR) suffer Loss , nor shall you be made to suffer Loss.

PROHIBITION OF GHARAR

The term gharar refers to fraudulence. Technically gharar is the unknown surrounding a financial transaction.


The Prophet ( sallallaho Alaaihi wasallam ) has forbidden the pebble sale and the gharar sale.

DAWABIT OR REGULATION RULES OF INVESTMENT IN ISLAM
The term Dawabit refers to firmly protecting something from any foreign elements. Technically , Dawabit cannots the rules that shape the behavior.

In the investment context , Dawabit refers to a set of principles derived from shariah teaching that shape the Investment behavior of muslim Investors.
REGULATIONS AQIDA – OR –BELIEF OF INVESTMENT
The dawabit Aqida refers to the fixed dogmatic principles that guide the belief of muslim Investor , The application of this Regulation is characterized by the constancy and permanence through time and geographical location . the utmost objectives of this regulation is to promote social welfare.
AL- ISTIKHLAF OR VICEGERENCY

AL-ISTIKHLAF OR VICEGERENCY is a Noun derived from the word khalifa. The broad meaning of khalifa is one who succeeds another . the term khalifa is usually used when describing people succession. The generation sequence . the term khalifah refers to the action of replacing a person in Authority and take his place. Shariah scholars refers to khalifah to designate the vicegerent statue of human beings on earth.
In the light of Surah Al-Baqara (2:20)
“ And when your lord said to the Angels I am going to place in the earth A khalif they said : what ! wilt thou place in it such as shall make mischief in it and shed blood , and we celebrate they praise and extol Thy holiness ? He said : surely ! know what you do not Know.
ETHICAL CONTROL OF INVESTMENT

Islam encourages embodying values and ethics in investment.

HONESTY
In the light of Holy Hadith,
Honesty was preserved in the root of the hearts of men ( in the beginning ) and then they learnt it ( Honesty ) from the Quran , and then they learnt it from the ( prophet ‘s ) Sunno ( Tradition )
AL BUKHARI.
IN The Light of Surah AL- An’ama (6:152).
“ And give full measure and weight in justice . we do not charge any soul except [with the within ] its capacity . and when you testify , be just , even if [ it Concern ] a near relative . and the convenant of Allah fulfill. This has he instructed you that you may remember
RIGHTEOUSNESS ( JUSTICE )
And the Heaven He raised and imposed the balance ( ? ) That you not transgress Within the Balance and Establish Weight in justice and do not make deficit the balance. SURAT – AL –REHMAN (55;7-9).
Respect For Contractual Engagement
“ O you Who have believed Fulfill {all} Contracts.
SURAH – AL –MAIDAH (5:1).

Economic regulation
Dabit Iqtisadi or economic regulations represents a set of Islamic economic principles.

GROWTH OF ISLAMIC INVESTMENT
A strong global need of more than 1.6 billion Muslims, Islamic Investment is becoming increasingly important. Currently, there is Over U $$260 billion invested in Islamic Funds through 300 active Global Islamic institutions, More So, The Investor base looking to invest in Sharia Compliant instruments was estimated at About
$ 500 billion World Wide ( GLOBAL REPORT 2017 ).
 

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