Bay’ al-Istijrār in Letter of Credit in the Light of the Decision of the Central Bank of Malaysia: An Applied Analytical Study: بيع الاستجرار في الاعتماد المستندي في ضوء قرار البنك المركزي الماليزي: دراسة تحليلية تطبيقية

Abstract

This research aims to study the application of Bay' al-Istijrār in contemporary transactions, particularly in the context of the letter of credit. With the widespread use of contemporary banking transactions adopting various forms of Bay' al-Istijrār, it becomes crucial to examine these forms to ensure their compliance with the pillars and conditions of permissible transactions. Despite the Central Bank of Malaysia's decision to implement Bay' al-Istijrār in the letter of credit, a comprehensive study focusing on this application and its alignment with the pillars and conditions of Bay' al-Istijrār by jurists was not found by the researchers. To address this gap, the researchers employed both the inductive and analytical approaches. The research yielded significant findings, including that the Bay' al-Istijrār has different forms, some of which are permissible, and some others are forbidden; and the letter of credit based on the sale of rent, as stated by some jurists, is permissible