Modern applications of profit-sale (bay murabahah) from a maqasid Shari' ah perspective

al-Fijawi, Mohammed Farid Ali and Mohd Yunus, Saidatolakma (2019) Modern applications of profit-sale (bay murabahah) from a maqasid Shari' ah perspective. Al-Shajarah, 24 (1). pp. 49-66. ISSN 1394-6870

	PDF - Published Version Restricted to Registered users only Download (916kB) | Request a copy
Preview	PDF (wos) - Supplemental Material Download (275kB) | Preview
Preview	PDF (wos) - Supplemental Material Download (244kB) | Preview

Abstract

This paper looks into profit-sale (murābaḥah), a nominal sale contract in Islam, in search for Sharīʿah objectives embedded in the corpus according to the terms and conditions of the contract. In light of these objectives, applications of the profit-sale contract as a financing tool by Islamic Finance Institutions (IFIs) are examined. The study discovers that some modern applications bypass the primary Sharīʿah objectives of a sale contract, such as the seller taking liability for 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 in credit or riba.

Item Type:	Article (Journal)
Additional Information:	7146/79435
Uncontrolled Keywords:	Modern applications; Profit-sale (bay murabahah) ; Maqasid Shari' ah perspective
Subjects:	B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Islamic Revealed Knowledge and Human Sciences
Depositing User:	DR MOHAMMED FARID ALI
Date Deposited:	06 Mar 2020 08:21
Last Modified:	15 Apr 2020 00:14
URI:	http://irep.iium.edu.my/id/eprint/79435

Actions (login required)

View Item