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Hoarding versus circulation of wealth from the perspective of Maqasid Al-Shari'ah

Ibrahim, Ahmad Asad and Elatrash, Radwan Jamal Yousef and Farooq, Mohammad Omar (2014) Hoarding versus circulation of wealth from the perspective of Maqasid Al-Shari'ah. International Journal of Islamic and Middle Eastern Finance and Management, 7 (1). pp. 6-21. ISSN 1753-8394

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Purpose - The purpose of the paper is to explore the issue of hoarding and dishoarding in modern context, especially as it relates to circulation of wealth, an important economic objective from Islamic viewpoint. Design/Methodology/Approach - This paper presents a survey of scholarly positions on the issue of hoarding and circulation of wealth from Islamic perspectives and analyzes how these positions affect the shaping of financial and economic dimensions of life in our contemporary time. The paper draws on the primary sources, the Qur’an and hadith, and examines the positions of the classical and contemporary scholars, especially in the context of the growing interest in finance, financial system and economy from Islamic perspective. Findings - The paper identifies the fact that the notion of hoarding (kanz) needs significantly revised understanding as money as a concept and tool has evolved substantively in modern times. It also examines variant positions regarding the concept of hoarding and finds more merit in favor of the position that paying zakat is not enough to be exempted from the Qur'anic implications about hoarding. It also identifies and examines securitisation, such as sukuk, as an important tools for better circulation of wealth. Research Limitations/Implications - With the advent of Islamic finance in modern times, sukuk has emerged as one of the most popular capital market instruments. Such instruments can be more relevant for development and shared prosperity, where the notion of hoarding (kanz) is properly understood and the gravity of entrenched propensity to hoarding (kanz) is recognised. Practical Implications - Capital market and its instruments, such as sukuk, can be very useful tool for prevention of hoarding and facilitating circulation of wealth. However, greater awareness about the ways and means by which hoarding exists widely in modern times is essential to enable Islamic finance to serve the people and the humanity from Islamic viewpoint. Originality/Value - Hoarding and dishoarding are not widely explored topic in contemporary literature on Islamic economics and finance. This paper makes a valuable contribution in its attempt to bring the problem of hoarding and the challenge toward greater circulation of wealth to highlight.

Item Type: Article (Journal)
Additional Information: 2257/47923
Uncontrolled Keywords: Sukuk, Circulation of wealth, Dishoarding, Hoarding, Islamic capital market, kanz
Subjects: B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc > BP1 Islam > BP100 Sacred books > BP134 Qur'an
K Law > KBP Islamic Law
K Law > KBP Islamic Law > KBP1 Islamic law.Shariah.Fiqh
K Law > KBP Islamic Law > KBP1 Islamic law.Shariah.Fiqh > KBP100 Sources.Quran, Hadith, Ijma', Qiyas.
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Islamic Revealed Knowledge and Human Sciences
Depositing User: Assoc Prof Radwan Jamal Elatrash
Date Deposited: 17 Mar 2016 11:05
Last Modified: 09 Jan 2018 16:17
URI: http://irep.iium.edu.my/id/eprint/47923

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