Shariah issues on selected hybrid products practiced by Islamic banks

Mohd Yunus, Saidatolakma and Mahadi, Nur Farhah and Mahmad Robbi, Ahmad Akram and Embong, Rahimah (2023) Shariah issues on selected hybrid products practiced by Islamic banks. International Journal of Academic Research in Progressive Education and Development, 12 (3). pp. 2510-2522. E-ISSN 2226-6348

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Abstract

This article examines the Shariah aspects of certain hybrid products practiced by Islamic banks in Malaysia and provides a comprehensive analysis of the Shariah principles governing the implementation of these hybrid contracts. Among the hybrid contracts, bayʽ bithaman ajil (BBA) and tawarruq have raised concerns due to their potential for facilitating interest (ribā) in buying and selling transactions. On the other hand, other hybrid contracts like mushārakah mutanāqiṣah and murābaḥah to the purchase order are deemed less controversial. When applying these contracts, adherence to important Shariah principles is crucial, including the permissibility of individual contracts, independence of contracts, absence of contradictory commitments, and avoidance of any form of ribā. This study has significant implications for Islamic banking and finance institutions, as well as the Muslim community at large, by promoting the development and provision of Sharia-compliant products and enhancing confidence in their dealings with these institutions.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Keywords: Hybrid Contract, Sharīʽah Principles, Islamic Banking and Finance, Malaysia
Subjects:	BPH Islamic Economics BPK Islamic law. Shari'ah. Fiqh
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Fundamental and Inter-Disciplinary Studies (Effective: 5th Feb 2014) Institute of Islamic Banking & Finance (IIiBF) Kulliyyah of Islamic Revealed Knowledge and Human Sciences
Depositing User:	DR AHMAD AKRAM MAHMAD ROBBI
Date Deposited:	04 Apr 2024 10:26
Last Modified:	04 Apr 2024 10:26
URI:	http://irep.iium.edu.my/id/eprint/111727

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