Murābaḥah-Taꜥāwun Financing: An Innovation in Islamic Personal Financing

Busari, Saheed Abdullahi and Aminu, Sikiru Olanrewaju (2019) Murābaḥah-Taꜥāwun Financing: An Innovation in Islamic Personal Financing. International Journal of Fiqh and Usul al-Fiqh Studies (IJFUS), 3 (1). pp. 103-108. E-ISSN 2600-8408

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Abstract

Entrepreneurs, especially in developing societies, which include many Muslim countries among their fold, face a herculean task in up-scaling their businesses due to a lack of capital to procure relevant assets to grow their businesses. The world Islamic banks’competitiveness report (2016) identified poor financial inclusion as one of the critical factors responsible for the uneven distribution of wealth in the Muslim world. This study presents the Murābaḥah-Taʻāwun financing product as an innovative addition to the range of financial products available on the Islamic banking shelf to reduce the incidence of poverty. Murābaḥah-Taʻāwun is operationalized where a group of entrepreneurs contribute funds together under a recognized Islamic bank while allowing every partner access to the fund on a rotational basis for the purchase of an asset according to a pre-defined arrangement. The study highlighted the importance of Murābaḥah-Taʻāwun as an Islamic financial contract by reviewing relevant extant literature. The proposed product shows that greater financial inclusion can be achieved without recourse to ribÉÒand thus will reduce poverty among Muslims

Item Type:	Article (Journal)
Additional Information:	9848/89855
Uncontrolled Keywords:	Murābaḥah Taʻāwun, Entrepreneur, Islamic Banking, Poverty, Financial Inclusion
Subjects:	BPH Islamic Economics > BPH754.4 Murabahah - Cost-Plus Financing
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Fiqh and Usul al-Fiqh
Depositing User:	Dr. Saheed Abdullahi Busari
Date Deposited:	24 May 2021 09:10
Last Modified:	24 May 2021 09:10
URI:	http://irep.iium.edu.my/id/eprint/89855

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