Prohibited elements in Islamic financial transactions: a comprehensive review

Saiti, Buerhan and Abdullah, Adam (2016) Prohibited elements in Islamic financial transactions: a comprehensive review. Al-Shajarah (SI). pp. 139-159. ISSN 1394-6870

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Abstract

This paper analyzes prohibited elements in transactions from a shari’ah perspective, since it is obligatory on the individual (fardhu ‘ayn) to understand the Islamic law of transactions (fiqh mu’amalat). Islam is not only a religion, but also a complete way of life. Islam has clearly forbidden all business transactions that lead to exploitation and injustice in any form to any of the parties of a contract. Islam requires that all financial and business transactions be based on transparency, accuracy, and disclosure of all material information so that no one party takes advantage of other parties. There is wisdom (hikmah) behind every prohibited transaction and in order to practice business and banking activities that are genuinely shari’ahcompliant, it is important to understand the prohibited elements in Islamic law. Accordingly, prohibited elements such as riba, gharar, qimar, maysir, fraud and coercion are discussed, as well as, the importance of the legality of the subject matter. Sahih, fasid, batil contracts and extrinsic conditions are covered in respect to different schools of thought

Item Type:	Article (Journal)
Additional Information:	7451/54314
Uncontrolled Keywords:	fiqh mu’amalat, riba, gharar, maysir, khilabah, ikrah, mahal al-aqd, sahih, fasid, batil, Islamic finance
Subjects:	K Law > KBP Islamic Law > KBP1 Islamic law.Shariah.Fiqh > KBP173.25 Islamic law and other disciplines or subjects
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	ASSOC PROF DR BUERHAN SAITI
Date Deposited:	03 Jan 2017 10:20
Last Modified:	10 Oct 2017 13:03
URI:	http://irep.iium.edu.my/id/eprint/54314

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