Modern applications of profit-sale (Bayʿ murābaḥah) from a Maqāsid Sharīʿah perspective

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

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

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

E-Wallet in Malaysia: A Proposed Structure of Contracts According to The Juristic Adaptation (Takyif Fiqhi)

The rapid growth of the financial industry in line with technological development leads to the emergence of e-wallet. E-wallet is an instrument of payment of goods or services electronically without the need to use cash. The use of e-wallet although still in its initial stages in Malaysia, is still subject to Shariah analysis. This study would like to analyze several Shariah issues in e-wallet, which aimed to measure the Shariah compliance, as well as to come out with some suggestions to improve its implementation. Among the research findings are the use of e-wallet is subject to origin of ruling in commercial transactions which is permissible, thus the Shariah analysis of it focuses on the circumstances that would make it forbidden, and the possible contracts between all contractors which include the user, the bank and non-bank issuer, and the third party have been discussed in the study with taking into consideration of juristic adaptations, conditions, and implications. Two methods will be used in this research, firstly the inductive method in collecting data, and the second is the analytical method in analyzing the data

Juristic methods of purifying haram incomes: An analysis in the context of Islamic banks in Malaysia abstract

This study is an attempt to articulate juristic mechanisms by which Islamic banks in Malaysia can purge the unlawful incomes from their assets. Islamic bank being a modern corporate entity when dealing with people of diverse cultures and conventional business entities, at times feel the pressure of not being able to stay away from transactions tainted with haram. Islamic banks as a matter of principle should not involve themselves in any unlawful business activities in the process of which they can procure unlawful incomes. A question of how Islamic banks in Malaysia should treat such incomes, both classical and contemporary jurists have proposed their own set of juristic methods. This study provides recommendations to the Islamic banks in order to address the importance of undertaking the purification process of haram income according to Shariah

Qardhul Hasan as a proposed tool for social financing through temporary cash waqf and zakah: a maqasid approach

This research article aims to study the possibility of actualizing temporary cash Waqf and Zakah in contemporary world as they constitute the basin pillars of social financing in Islamic financial and economic system, and they have a very important role in achieving higher intents of Shariah like justice, social cooperation, and economic welfare. The problem of the research lies in the differences of opinions of scholars regarding permissibility of applying Qardhul Hasan on Zakah and this article attempts to employ Maqasid approach to give the preference among those views as well as delineating the rules and proposing suitable tools for it. Similarly, it again taking Maqasid approach propose application of Qardhul Hasan on temporary cash Waqf. The study is carried out considering the contemporary Islamic banks in general and suggest for actual application in Malaysian context. Content analysis and comparative analysis methods have been used to carry out the research. The research concludes that applying Qardhul Hasan through temporary cash Waqf and Zakah for social financing is permissible in the light of Maqasid-e-Shariah

Entrusting government in resolving Covid 19: economic impacts through government support scheme

Purpose – With regard to the recent spike of Covid-19 cases and the Malaysian Government’s announcement on the extension of Movement Control Order (MCO), this study seeks to gain a deeper understanding on the role of government in exercising MCO and providing government support schemes i.e. the Malaysian stimulus package to combat the economic impact of the Covid-19 pandemic. Design/methodology/approach –The qualitative technique will be used secondary (documentary content analysis) published data into the context of this research. The data will be analysed using qualitative content, narrative, and discourse analysis to provide its findings and discussion. Findings – The findings indicated that by understanding the importance of entrusting government in resolving Covid-19, we can further enhance the government support scheme to fulfil its “raison d’etre” in resolving this pandemic not merely to ensure its positive impact in socio-economic per se, but its efforts to stabilize and strengthen the economy as well. Practical implications –This study may also motivate industry practitioners, academicians, and the society at large to appreciate the importance of entrusting the authorities in resolving the economic crisis during this plague. The study will further provide significant socio-economic impacts as the results will enable new initiatives by the authorities to strengthen Malaysian economic resilience in response to the outbreak of the Covid-19 disease to equip themselves in unpredictable financial conditions of global economic upheavals. Originality/value – The study strengthens public perception on the idea of the effectiveness of government’s policy and efforts in handling Covid-19 pandemic to achieve positive economic impacts

Muslim Feminists` Reading of the Quran: A Juristic Analysis on Family Law Issues

Muslim feminist movement represents an indigenous voice among the contemporary literature on women and family. Its main contention is that women in Muslim society are accorded less favourable treatment especially in terms of legal rights. To remedy the situation, feminist scholarship`s main argument is that there is a need for feminist-reading of the sacred texts so as to purge the juristic legacy of male-biased views and achieve justice and equality for Muslim women in contemporary families. One principal methodological framework for this idea to materialise is to embark on the re-reading of the Qur`an from the women`s perspective. In this context, this paper presents issue-based analysis of Amina Wadud`s reading of the relevant Qur`anic passages on family law matters and finds that in spite of its merits, its main handicap lies on its methodological flaws, both in terms of approach and outcome. Methodologically, it is regarded as selective and ultra-vires of Islamic methodology of legal reform. It terms of impact, it is suspected as being tainted with Western inspired assumptions of rights in terms of justice and equality between the genders. To overcome this impasse, the paper argues for a mediated holistic approach to harmonise relations between men and women in the family.  Keywords: Family law, gender equality, justice, Muslim feminist

Application of the build, operate, transfer (BOT) contract as a means of financing development of Waqf Land: Malaysian experience

The build, operate and transfer (BOT) contract has widely been applied in developing economies since the participation of private sectors has declined in the reconstruction and funding of public infrastructure. BOT is a financing and operating approach, which has been practiced primarily in the area of infrastructure privatization in developing countries. Recently, application of the BOT scheme has been carried out in many waqf institutions, especially Majlis Agama Islam Wilayah Persekutuan. The BOT approach offers new perspectives in the field of waqf as it has the capability to enhance waqfproperty for the public’s benefit. Property enhancement is the major reason why waqf is enjoined by Islam. Waq f institutional involvement in developing its property and public infrastructures by way of BOT contracts is proving to be a challenging exercise. This article examines the current practice of applying BOT contracts in waq f institutions in general and in Majlis Agama Islam Wilayah Persekutuan in particular, with specific reference to the application of other types of contracts. In addition, the practice is discussed in terms of its compliance with the principles of Sharīʿah law. Moreover, this article aims to identify the issues, problems as well as challenges that might face waqf institutions during implementation of BOT contracts

The application of Build, Operate and Transfer (BOT) contract in Majlis Agama Islam Wilayah Persekutuan Malaysia

This Build, Operate and Transfer (BOT) is a new concept applied in developing and constructing private and public infrastructures. It is a means of project financing and operating practiced primarily in the area of private infrastructure in developing countries. Recently, some waqf institutions have applied the BOT approach. The BOT structure gives a new direction in the field of waqf, as it enhances waqf property for public benefits. The involvement of waqf institution in developing its property and public infrastructures through BOT is a challenging exercise. The study examines the current practice of this contract in waqf institutions in general and in Majlis Agama Islam Wilayah Persekutuan with reference to the contracts applied in compliance with the principles of Sharīah