Takyif fiqhi on the permissibility of ijarah mawsufah fi al-dhimmah: a critical analysis
Ijarah mawsufah fi al-dhimmah (hereinafter referred to as IMAD), also known as forward ijarah¸ is an Islamic financial product that involves the sale of an identified asset currently being produced or constructed for a future delivery such as a property, office, factory, and so forth. In the clas...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2020
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| Online Access: | http://journalarticle.ukm.my/14867/1/IJIT-Vol-17-June-2020_1_1-14.pdf http://journalarticle.ukm.my/14867/ http://www.ukm.my/ijit/volume-17-june-2020/ |
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| Summary: | Ijarah mawsufah fi al-dhimmah (hereinafter referred to as IMAD), also known as
forward ijarah¸ is an Islamic financial product that involves the sale of an identified
asset currently being produced or constructed for a future delivery such as a
property, office, factory, and so forth. In the classical fiqh literature, it has been
discussed under the general purview of leasing and forward sale contracts. However,
in the context of modern Islamic finance practice Islamic banks and financial
institutions have upheld its usage as an independent financial instrument. The
contemporary scholars claim that except for Hanafi, other key fiqh schools consider
IMAD as an Islamic financial product. The study is an attempt to prove that such a
claim is merely based on assumption. Besides, it is motivated by lack of holistic study
of Hanafi’s original reference books. The methodology chosen for this study is
content analysis of the relevant published literatures. The study finds that no
classical scholars including those of Hanafi school of thought were in disagreement
so far over the IMAD to consider it as an independent and standalone Islamic finance
product. The study aims at reconciling scholars’ different views on the issue of IMAD
for its wider acceptance. |
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