ISLAMIC MONEY MARKET AND APPLICATION OF THIRD PARTY GUARANTEE FOR ECONOMIC DEVELOPMENT

Purpose of Study: The Islamic money market plays a significant role in the development of the economy and providing funds for short term projects. This paper discusses money market instruments such as treasury bills, certificates of deposit, short period mudharabah interbank investment and Islamic accepted bills of exchange. It examines how short term instruments can be used to import and export goods. The study analyses the mechanisms and characteristics of Islamic money market and finds that it has the same characteristics and mechanisms of the conventional money market; they differ only in the instruments that are traded in the market. In the Islamic money market any instrument which is not in accordance with the principles of Islamic law is not traded. Methodology: A qualitative research methodology in which an Islamic jurisprudential approach is used to analyse data and the permissibility of application of third party guarantee in Islamic money market was utilised. Results: It was discovered in this paper that application of third party guarantee in Islamic money market is permissible. However, the guarantee should be done voluntarily without charging a fee so that the Islamic money market would be differentiated from the conventional money market wherein a fee is charged. Conclusion/- and Recommendations: In the Islamic money market, the instruments used in the market must be acceptable by the principles of Islamic law.  It is impermissible in Islamic law for a company that conducts the investment of Islamic money market instruments to carry out its activities in non-halal activities. Islamic money market instruments can be used to finance short period investment, to import and export assets. The researcher suggested to conduct empirical research in order to have a clear picture on Islamic money market instruments and application of third party guarantee in the market

REVISITING THE CONCEPT OF LEGAL GUARANTEE IN ISLAMIC LAW FOR STRUCTURING ISLAMIC FINANCIAL PRODUCTS

Purpose of Study: In the modern Islamic financial products and services, legal guarantee is becoming increasing important in the structuring of products, particularly those used in the investments. As a result of the increasing importance of the concept of guarantee, this paper specifically revisits the conceptual analyses of legal guarantee in Islamic law with a view to providing the basis for the use of this concept in structuring relevant Shari‘ah-compliant products. Methodology: The study adopts a comparative legal analysis of the views of classical Muslim jurists. The researchers examine the principles relating to guarantee, such as the meaning of guarantee, its authority, its pillars and conditions. Other principles include modes of guarantee and its objective.  The paper also examines the principles and terms of guarantee necessitates an assessment of the effect of the guarantee contract on the contracting parties, particularly whether the guarantor has the right of recourse to the guaranteed person for a refund. The researchers adopt qualitative research methodology to analyse and examine the data. Results: It was found that although guarantee is permissible in Islamic law, it is not absolute. In fact, to make it more Islamically acceptable or Shari’ah compliant there are other terms and conditions that the contract has to fulfil especially by the guarantor, guaranteed person as well as guaranteed asset. Results: Legal Guarantee is permissible in Islamic law to prevent harm that may happen to the traders and investors, and protect the public interest.  Classical and contemporary Muslim scholars’ views are that guarantee is not limited to guarantee for debt, but extended to the guarantee for other commercial transactions like guarantee of future liability and physical punishment.  Guarantee has its own pillars and conditions, which should be met in order for a guarantee contract to be a valid one. The researchers suggest to conduct empirical research in order to have a clear picture on the concept of legal guarantee for structuring Islamic financial products

The application of third party guarantee in structuring sukuk in the Islamic capital market: a preliminary literature survey

In the Islamic capital market, the Sukuk (Islamic investment certificates) segment is considered by key stakeholders in the Islamic financial services industry as the most vibrant segment in the global Islamic financial system. This paper provides a preliminary literature survey on the application of third party guarantee in Islamic capital market with specific reference to Sukuk transactions. The methodology adopted in this study leverages on the dynamics of comparative jurisprudential analysis of the different schools of thought in Islamic law from the classical to the modern jurists. Though this aspect of Islamic capital market is relatively in its infancy stage of development, the Islamic financial services industry is fraught with diverse practices where a perceptible disconnect is noticed between juristic ideals and practical application of third party guarantee in Sukuk structuring. Therefore, the paper finds that though the use of third party guarantee is permissible in Islamic capital market, there is however a proviso which must be adhered to – the voluntary nature of the guarantee. The guarantee should be provided without charging any fee, and this is applicable in commonly used sukuk products such as Sukuk al-ijarah, Sukuk al-mudarabah, and Sukuk al-istisna‘. It is however permissible to impose a compensatory fee in Sukuk al-istisna‘ in the case of failure to deliver the subject matter of the contract on the due date and the contractee has suffered a damage

The ASOS Surgical Risk Calculator: development and validation of a tool for identifying African surgical patients at risk of severe postoperative complications

Background: The African Surgical Outcomes Study (ASOS) showed that surgical patients in Africa have a mortality twice the global average. Existing risk assessment tools are not valid for use in this population because the pattern of risk for poor outcomes differs from high-income countries. The objective of this study was to derive and validate a simple, preoperative risk stratification tool to identify African surgical patients at risk for in-hospital postoperative mortality and severe complications. Methods: ASOS was a 7-day prospective cohort study of adult patients undergoing surgery in Africa. The ASOS Surgical Risk Calculator was constructed with a multivariable logistic regression model for the outcome of in-hospital mortality and severe postoperative complications. The following preoperative risk factors were entered into the model; age, sex, smoking status, ASA physical status, preoperative chronic comorbid conditions, indication for surgery, urgency, severity, and type of surgery. Results: The model was derived from 8799 patients from 168 African hospitals. The composite outcome of severe postoperative complications and death occurred in 423/8799 (4.8%) patients. The ASOS Surgical Risk Calculator includes the following risk factors: age, ASA physical status, indication for surgery, urgency, severity, and type of surgery. The model showed good discrimination with an area under the receiver operating characteristic curve of 0.805 and good calibration with c-statistic corrected for optimism of 0.784. Conclusions: This simple preoperative risk calculator could be used to identify high-risk surgical patients in African hospitals and facilitate increased postoperative surveillance. © 2018 British Journal of Anaesthesia. Published by Elsevier Ltd. All rights reserved.Medical Research Council of South Africa gran

Maternal and neonatal outcomes after caesarean delivery in the African Surgical Outcomes Study: a 7-day prospective observational cohort study.

BACKGROUND: Maternal and neonatal mortality is high in Africa, but few large, prospective studies have been done to investigate the risk factors associated with these poor maternal and neonatal outcomes. METHODS: A 7-day, international, prospective, observational cohort study was done in patients having caesarean delivery in 183 hospitals across 22 countries in Africa. The inclusion criteria were all consecutive patients (aged ≥18 years) admitted to participating centres having elective and non-elective caesarean delivery during the 7-day study cohort period. To ensure a representative sample, each hospital had to provide data for 90% of the eligible patients during the recruitment week. The primary outcome was in-hospital maternal mortality and complications, which were assessed by local investigators. The study was registered on the South African National Health Research Database, number KZ_2015RP7_22, and on ClinicalTrials.gov, number NCT03044899. FINDINGS: Between February, 2016, and May, 2016, 3792 patients were recruited from hospitals across Africa. 3685 were included in the postoperative complications analysis (107 missing data) and 3684 were included in the maternal mortality analysis (108 missing data). These hospitals had a combined number of specialist surgeons, obstetricians, and anaesthetists totalling 0·7 per 100 000 population (IQR 0·2-2·0). Maternal mortality was 20 (0·5%) of 3684 patients (95% CI 0·3-0·8). Complications occurred in 633 (17·4%) of 3636 mothers (16·2-18·6), which were predominantly severe intraoperative and postoperative bleeding (136 [3·8%] of 3612 mothers). Maternal mortality was independently associated with a preoperative presentation of placenta praevia, placental abruption, ruptured uterus, antepartum haemorrhage (odds ratio 4·47 [95% CI 1·46-13·65]), and perioperative severe obstetric haemorrhage (5·87 [1·99-17·34]) or anaesthesia complications (11·47 (1·20-109·20]). Neonatal mortality was 153 (4·4%) of 3506 infants (95% CI 3·7-5·0). INTERPRETATION: Maternal mortality after caesarean delivery in Africa is 50 times higher than that of high-income countries and is driven by peripartum haemorrhage and anaesthesia complications. Neonatal mortality is double the global average. Early identification and appropriate management of mothers at risk of peripartum haemorrhage might improve maternal and neonatal outcomes in Africa. FUNDING: Medical Research Council of South Africa.Medical Research Council of South Africa