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

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)

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Abstract

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.

Item Type: Article (Journal)
Additional Information: 7146/66887
Uncontrolled Keywords: profit-sale, Bayʿ murābaḥah, Maqāsid Sharīʿah
Subjects: H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
K Law > KBP Islamic Law
K Law > KBP Islamic Law > KBP1 Islamic law.Shariah.Fiqh > KBP173.25 Islamic law and other disciplines or subjects
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Fiqh and Usul al-Fiqh
Kulliyyah of Islamic Revealed Knowledge and Human Sciences
Depositing User: DR MOHAMMED FARID ALI
Date Deposited: 05 Mar 2019 11:48
Last Modified: 05 Mar 2019 11:48
URI: http://irep.iium.edu.my/id/eprint/66887

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