Debt theories in Islamic commercial transactions and their implications for the Islamic capital market

Adam Sa'ad, Auwal and Syed Jaafar Alhabshi, Syed Musa (2019) Debt theories in Islamic commercial transactions and their implications for the Islamic capital market. International Journal of Management and Applied Research, 6 (4). pp. 296-306. ISSN 2056-757X

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Abstract

There are two different approaches to the prophetic concern regarding debt acquisition and the related rulings. The Prophet (peace be upon him) was recorded as having discouraged debt while other verbal traditions provided guidelines on how to manage debt in a socially responsible manner. This paper aims to analyse these two contrary views according to the Maqasid Shariah and look at how this has impacted juristic rulings. Furthermore, the paper reviews classical fiqh theories on debt, sale of debt, alMuqassah, Suftajah, Hawalah, and Ibra. The paper also reviews the theoretical perspective on the sale of debt according to the understanding of Islamic scholars across the schools of Islamic Jurisprudence which has a substantial impact on the contemporary practices in Islamic banking and the Islamic capital market.

Item Type:	Article (Journal)
Additional Information:	8761/76695
Uncontrolled Keywords:	Debt theories; Sale of Debt; Islamic Finance; Hawalah; Ibra; Suftajah; Muqassah
Subjects:	H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	DR. Auwal Adam Sa'ad
Date Deposited:	05 Dec 2019 16:26
Last Modified:	20 Feb 2020 11:28
URI:	http://irep.iium.edu.my/id/eprint/76695

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