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Bursa Malaysia's Suq Al-Sila' (Commodity Murabahah House) as an Alternative Platform for Tawarruq Transaction

In 2009, Bursa Malaysia launched a new trading platform called Suq al-Sila' or Commodity Murabahah House. The platform is introduced to facilitate Islamic financia1 transactions particularly the application of commodity murabahah which is based on the principle of taw'arruq. This platform...

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Main Author: Asyraf Wajdi Dusuki
Format: Article
Language:English
Published: Universiti Sains Islam Malaysia 2012
Subjects:
Tawarruq
Commodity murabahah
Shari'ah
Islamic finance
Legal stratagem
Agency
Online Access:http://ddms.usim.edu.my/handle/123456789/5388
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spelling my.usim-53882015-03-02T06:37:35Z Bursa Malaysia's Suq Al-Sila' (Commodity Murabahah House) as an Alternative Platform for Tawarruq Transaction Asyraf Wajdi Dusuki Tawarruq Commodity murabahah Shari'ah Islamic finance Legal stratagem Agency In 2009, Bursa Malaysia launched a new trading platform called Suq al-Sila' or Commodity Murabahah House. The platform is introduced to facilitate Islamic financia1 transactions particularly the application of commodity murabahah which is based on the principle of taw'arruq. This platform is claimed to provide genuine commodity transactions where possession and delivery of the commodity can take place without any hindrance, as opposed to the controversial practice of tawarruq using a platform like the London Metal Exchange(LME). This paper aims at discussing the practice of tawarruq using Bursa Malaysia's Commodity Murabahah House. In particular the paper provides comprehensive discussion on the debates over tawarruq which subsequently lead to declaration by OIC Fiqh Academy deeming organized tawarruq as impermissible. This paper concludes that despite the criticisms and some unresolved Sharah matters entangling the practice of tawarruq, the effort made by Bursa Malaysia to introduce a platform such as Commodity Murabahah House is commendable. Furthermore, since the nature of modem organized tawarruq may not strictly comply with Shariah principles, the reasons behind using this facility should be carefully taken into consideration, especially in situations of real urgency and cases of need. 2012-03-12T06:08:06Z 2012-03-12T06:08:06Z 2010 Article 1823075X http://ddms.usim.edu.my/handle/123456789/5388 en vol.7 no.1 2010; Universiti Sains Islam Malaysia
institution Universiti Sains Islam Malaysia
building USIM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universit Sains Islam i Malaysia
content_source USIM Institutional Repository
url_provider http://ddms.usim.edu.my/
language English
topic Tawarruq
Commodity murabahah
Shari'ah
Islamic finance
Legal stratagem
Agency
spellingShingle Tawarruq
Commodity murabahah
Shari'ah
Islamic finance
Legal stratagem
Agency
Asyraf Wajdi Dusuki
Bursa Malaysia's Suq Al-Sila' (Commodity Murabahah House) as an Alternative Platform for Tawarruq Transaction
description In 2009, Bursa Malaysia launched a new trading platform called Suq al-Sila' or Commodity Murabahah House. The platform is introduced to facilitate Islamic financia1 transactions particularly the application of commodity murabahah which is based on the principle of taw'arruq. This platform is claimed to provide genuine commodity transactions where possession and delivery of the commodity can take place without any hindrance, as opposed to the controversial practice of tawarruq using a platform like the London Metal Exchange(LME). This paper aims at discussing the practice of tawarruq using Bursa Malaysia's Commodity Murabahah House. In particular the paper provides comprehensive discussion on the debates over tawarruq which subsequently lead to declaration by OIC Fiqh Academy deeming organized tawarruq as impermissible. This paper concludes that despite the criticisms and some unresolved Sharah matters entangling the practice of tawarruq, the effort made by Bursa Malaysia to introduce a platform such as Commodity Murabahah House is commendable. Furthermore, since the nature of modem organized tawarruq may not strictly comply with Shariah principles, the reasons behind using this facility should be carefully taken into consideration, especially in situations of real urgency and cases of need.
format Article
author Asyraf Wajdi Dusuki
author_facet Asyraf Wajdi Dusuki
author_sort Asyraf Wajdi Dusuki
title Bursa Malaysia's Suq Al-Sila' (Commodity Murabahah House) as an Alternative Platform for Tawarruq Transaction
title_short Bursa Malaysia's Suq Al-Sila' (Commodity Murabahah House) as an Alternative Platform for Tawarruq Transaction
title_full Bursa Malaysia's Suq Al-Sila' (Commodity Murabahah House) as an Alternative Platform for Tawarruq Transaction
title_fullStr Bursa Malaysia's Suq Al-Sila' (Commodity Murabahah House) as an Alternative Platform for Tawarruq Transaction
title_full_unstemmed Bursa Malaysia's Suq Al-Sila' (Commodity Murabahah House) as an Alternative Platform for Tawarruq Transaction
title_sort bursa malaysia's suq al-sila' (commodity murabahah house) as an alternative platform for tawarruq transaction
publisher Universiti Sains Islam Malaysia
publishDate 2012
url http://ddms.usim.edu.my/handle/123456789/5388
_version_ 1645151660731793408
score 13.222552

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