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The concept and application of hibah as a financial instrument from the Malaysian legal perspective: an analysis

Hassan, Rusni and Mohamad Zaizi, Nor Azdilah (2020) The concept and application of hibah as a financial instrument from the Malaysian legal perspective: an analysis. IIUM Law Journal, 28 (1). pp. 227-252. ISSN 0128-2530 E-ISSN 2289-7852

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Abstract

The principle of hibah (gift) is a popular subject in the Islamic law of administration, relating to wealth management. Hibah is a solution to deliver wealth to non-heirs apart from the wasiyyah (bequest) or faraid (succession) systems. However, in the broader context of wealth management in Malaysia, hibah has also been used as a financial instrument in the Islamic financial institutions’ products and services. Based on that, the legality and enforcement of hibah with regards to the related applicable laws in the Malaysian legal system might be affected in two different situations. First, the conflict of jurisdiction may be arising from the fact that the matter of the classical hibah concept will be under the jurisdiction of the classical hibah concept will be under the jurisdiction of the States, whilst the commercial hibah which has been structured with the Islamic banking and takaful products and services established by the Islamic financial institutions, will be under the Federal government. The scarcity of literatures discussing hibah from the perspective of Islamic banking and finance contributes to the limited understanding and awareness among the society on this matter. In view of that, this study explores and analyse the concept and application of hibah as the financial instrument in the Islamic banking and takaful products and services. This study also analyzes some relevant Shari’ah and legal issues on the application of hibah in the Islamic banking and takaful products and services, which are currently practiced by the Malaysian Islamic financial institutions. This is done by assessing relevant statutes and decided cases. This article finally provides recommendations to improve and enhance the application of hibah as an Islamic banking and takaful products and services in Malaysia.

Item Type: Article (Journal)
Additional Information: 1525/87918
Uncontrolled Keywords: hibah, gift, Islamic Financial Institutions, Islamic Financial Instrument, Legal Practice
Subjects: BPH Islamic Economics
K Law > KBP Islamic Law
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Dr Rusni Hassan
Date Deposited: 19 Jan 2021 17:29
Last Modified: 19 Jan 2021 17:29
URI: http://irep.iium.edu.my/id/eprint/87918

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