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Modern applications of profit-sale (Bayʿ murābaḥah) from a Maqāsid Sharīʿah perspective

This paper looks into profit-sale (murābaḥah), a nominal sale contract in Islam, in search for Shari'ah objectives embedded in the corpus and in the terms and conditions of the contract. In light of these objectives, applications of the profit-sale contract as a financing tool by the Islamic Fi...

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Main Authors: Ali, Mohammed Farid, Mohd Yunus, Saidatolakma
Format: Article
Language:English
English
English
Published: IIUM Press, International Islamic University Malaysia 2019
Subjects:
HG3368 Islamic Banking and Finance
KBP Islamic Law
KBP173.25 Islamic law and other disciplines or subjects
Online Access:http://irep.iium.edu.my/66887/1/66887_MODERN%20APPLICATIONS%20OF%20PROFIT-SALE%20%28BAY%20MURABAHAH%29%20_article.pdf
http://irep.iium.edu.my/66887/2/66887_MODERN%20APPLICATIONS%20OF%20PROFIT-SALE%20%28BAY%20MURABAHAH%29%20_scopus.pdf
http://irep.iium.edu.my/66887/3/66887_MODERN%20APPLICATIONS%20OF%20PROFIT-SALE%20%28BAY%20MURABAHAH%29%20_wos.pdf
http://irep.iium.edu.my/66887/
http://journals.iium.edu.my/shajarah/index.php/shaj/issue/view/55
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spelling my.iium.irep.668872020-04-09T23:35:49Z http://irep.iium.edu.my/66887/ Modern applications of profit-sale (Bayʿ murābaḥah) from a Maqāsid Sharīʿah perspective Ali, Mohammed Farid Mohd Yunus, Saidatolakma HG3368 Islamic Banking and Finance KBP Islamic Law KBP173.25 Islamic law and other disciplines or subjects This paper looks into profit-sale (murābaḥah), a nominal sale contract in Islam, in search for Shari'ah objectives embedded in the corpus and in the terms and conditions of the contract. In light of these objectives, applications of the profit-sale contract as a financing tool by the Islamic Finance Institutions (IFIs) are examined. The study discovers that some modern applications bypass the primary Shari'ah objectives of a sale contract, such as the seller taking liability of possible risks and having real possession of the items on sale. Contrary to this, the seller transfers his liability to the customer, and takes possession (qabḍ) of the goods on paper only, instead of possession in the real sense. Such applications distort the mode of trading real goods into a mere disguise for an increase on credit or riba. IIUM Press, International Islamic University Malaysia 2019-06 Article NonPeerReviewed application/pdf en http://irep.iium.edu.my/66887/1/66887_MODERN%20APPLICATIONS%20OF%20PROFIT-SALE%20%28BAY%20MURABAHAH%29%20_article.pdf application/pdf en http://irep.iium.edu.my/66887/2/66887_MODERN%20APPLICATIONS%20OF%20PROFIT-SALE%20%28BAY%20MURABAHAH%29%20_scopus.pdf application/pdf en http://irep.iium.edu.my/66887/3/66887_MODERN%20APPLICATIONS%20OF%20PROFIT-SALE%20%28BAY%20MURABAHAH%29%20_wos.pdf Ali, Mohammed Farid and Mohd Yunus, Saidatolakma (2019) Modern applications of profit-sale (Bayʿ murābaḥah) from a Maqāsid Sharīʿah perspective. Al-Shajarah, 24 (1). pp. 1-16. ISSN 1394-6870 (In Press) http://journals.iium.edu.my/shajarah/index.php/shaj/issue/view/55
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
English
English
topic HG3368 Islamic Banking and Finance
KBP Islamic Law
KBP173.25 Islamic law and other disciplines or subjects
spellingShingle HG3368 Islamic Banking and Finance
KBP Islamic Law
KBP173.25 Islamic law and other disciplines or subjects
Ali, Mohammed Farid
Mohd Yunus, Saidatolakma
Modern applications of profit-sale (Bayʿ murābaḥah) from a Maqāsid Sharīʿah perspective
description This paper looks into profit-sale (murābaḥah), a nominal sale contract in Islam, in search for Shari'ah objectives embedded in the corpus and in the terms and conditions of the contract. In light of these objectives, applications of the profit-sale contract as a financing tool by the Islamic Finance Institutions (IFIs) are examined. The study discovers that some modern applications bypass the primary Shari'ah objectives of a sale contract, such as the seller taking liability of possible risks and having real possession of the items on sale. Contrary to this, the seller transfers his liability to the customer, and takes possession (qabḍ) of the goods on paper only, instead of possession in the real sense. Such applications distort the mode of trading real goods into a mere disguise for an increase on credit or riba.
format Article
author Ali, Mohammed Farid
Mohd Yunus, Saidatolakma
author_facet Ali, Mohammed Farid
Mohd Yunus, Saidatolakma
author_sort Ali, Mohammed Farid
title Modern applications of profit-sale (Bayʿ murābaḥah) from a Maqāsid Sharīʿah perspective
title_short Modern applications of profit-sale (Bayʿ murābaḥah) from a Maqāsid Sharīʿah perspective
title_full Modern applications of profit-sale (Bayʿ murābaḥah) from a Maqāsid Sharīʿah perspective
title_fullStr Modern applications of profit-sale (Bayʿ murābaḥah) from a Maqāsid Sharīʿah perspective
title_full_unstemmed Modern applications of profit-sale (Bayʿ murābaḥah) from a Maqāsid Sharīʿah perspective
title_sort modern applications of profit-sale (bayʿ murābaḥah) from a maqāsid sharīʿah perspective
publisher IIUM Press, International Islamic University Malaysia
publishDate 2019
url http://irep.iium.edu.my/66887/1/66887_MODERN%20APPLICATIONS%20OF%20PROFIT-SALE%20%28BAY%20MURABAHAH%29%20_article.pdf
http://irep.iium.edu.my/66887/2/66887_MODERN%20APPLICATIONS%20OF%20PROFIT-SALE%20%28BAY%20MURABAHAH%29%20_scopus.pdf
http://irep.iium.edu.my/66887/3/66887_MODERN%20APPLICATIONS%20OF%20PROFIT-SALE%20%28BAY%20MURABAHAH%29%20_wos.pdf
http://irep.iium.edu.my/66887/
http://journals.iium.edu.my/shajarah/index.php/shaj/issue/view/55
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score 13.211869

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