DOCSLIB.ORG

Islamic Finance & Markets 2020

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Islamic Finance & Markets 2020 Islamic Finance & Markets 2020 & Markets Islamic Finance Islamic Finance & Markets 2020 Contributing editor John Dewar © Law Business Research 2019 Publisher Tom Barnes [email protected] Subscriptions Claire Bagnall Islamic Finance [email protected] Senior business development managers Adam Sargent & Markets [email protected] Dan White [email protected] 2020 Published by Law Business Research Ltd Meridian House 34–35 Farringdon Street Contributing editor London, EC4A 4HL John Dewar Tel: +44 20 7908 1178 Fax: +44 20 7229 6910 Milbank The information provided in this publication is general and may not apply in a specific situation. Legal advice should always be sought before taking any legal action Lexology Getting The Deal Through is delighted to publish the seventh edition of Islamic Finance based on the information provided. This & Markets, which is available in print and online at www.lexology.com/gtdt. information is not intended to create, nor Lexology Getting The Deal Through provides international expert analysis in key areas of does receipt of it constitute, a lawyer– law, practice and regulation for corporate counsel, cross-border legal practitioners, and company client relationship. The publishers and directors and officers. authors accept no responsibility for any acts or omissions contained herein. The Throughout this edition, and following the unique Lexology Getting The Deal Through format, information provided was verified between the same key questions are answered by leading practitioners in each of the jurisdictions featured. July and September 2019. Be advised that Our coverage this year includes chapters on Philippines and Switzerland. this is a developing area. Lexology Getting The Deal Through titles are published annually in print. Please ensure you are referring to the latest edition or to the online version at www.lexology.com/gtdt. © Law Business Research Ltd 2019 Every effort has been made to cover all matters of concern to readers. However, specific No photocopying without a CLA licence. legal advice should always be sought from experienced local advisers. First published 2013 Lexology Getting The Deal Through gratefully acknowledges the efforts of all the contributors Seventh edition to this volume, who were chosen for their recognised expertise. We also extend special thanks to ISBN 978-1-83862-151-3 the contributing John Dewar of Milbank for his assistance with this volume and to Amer Hussein N Mambuay of SyCip Salazar Hernandez & Gatmaitan for his contribution to previous editions. Printed and distributed by Encompass Print Solutions Tel: 0844 2480 112 London September 2019 Reproduced with permission from Law Business Research Ltd This article was first published in September 2019 For further information please contact [email protected] www.lexology.com/gtdt 1 © Law Business Research 2019 Contents France 3 Switzerland 25 Jean-Baptiste Santelli and Racha Wylde Samuel Ljubicic and Robert Bissig De Gaulle Fleurance & Associés Meyerlustenberger Lachenal Ltd Japan 9 United Kingdom 30 Takashi Tsukioka John Dewar and Munib Hussain Nagashima Ohno & Tsunematsu Milbank LLP Malaysia 14 United States 36 Fiona Sequerah, Chan Jia Yong, Ng Chen Lynn and Phang Jian-Jie John H Vogel Christopher & Lee Ong Crowell & Moring Philippines 21 Uzbekistan 43 Rafael A Morales Atabek Sharipov and Nodir Yuldashev Morales & Justiniano Grata International Law Firm 2 Islamic Finance & Markets 2020 © Law Business Research 2019 United Kingdom John Dewar and Munib Hussain Milbank LLP 1 In general terms, what policy has your jurisdiction adopted available to everybody. On the retail side, all consumers gain from a towards Islamic finance? Are Islamic finance products wider choice of retail financial services, in particular those consumers regulated differently from conventional instruments? What whose religious beliefs prevent them from accessing conventional has been the legislative approach? finance. On the wholesale side, the entire country benefits from the UK financial services industry’s success as the leading Western centre for Islamic finance has developed rapidly in the United Kingdom over the Islamic finance. past decade and the government has been very supportive towards its development and promotion. The UK hosted the first stand-alone Market development Islamic financial institution in the EU and has the highest value of 2 How well established is Islamic finance in your jurisdiction? shariah-compliant assets of any non-Muslim country. The UK has a Are Islamic windows permitted in your jurisdiction? strong and proud tradition of openness and flexibility, which, combined with London’s position as a leading international financial centre and Islamic retail products first appeared in the UK in the 1990s, and in the UK’s significant Muslim population (just over 5 per cent of the UK the past decade there has been significant growth of Islamic finance population according to the 2011 census), provides a strong foundation products in both the wholesale and the retail sectors. According to for growth. As a result of its standing, London has long been perceived data published by Al Rayan Bank at the end of 2014, the UK was the as the Western hub for Islamic finance. ninth-largest market for Islamic finance with US$19 billion of shariah- The government established the UK’s first Islamic Finance Task compliant assets. Force in March 2013, and the Task Force’s mandate is to help to build Against the backdrop of global drivers of Islamic finance, the upon London’s status as the Western hub for Islamic finance by show- government, the Financial Services Authority (FSA) (replaced in large casing the UK as the preferred choice for the Muslim world to invest in part by the Financial Conduct Authority (FCA)) and the Bank of England and do business with. Its objectives include engaging with the United have actively supported the development of Islamic finance in the Kingdom Islamic Finance Secretariat and others to promote and raise UK over the past decade. In 2000, the Bank of England recognised the international profile of the industry and to use Islamic finance to the potential for retail and wholesale Islamic finance in the UK and, facilitate inward investment and strengthen the UK economy. In June together with HM Treasury, established a working group to investigate 2014, the UK became the first Western country to issue a sakk, attracting the obstacles facing the industry. This led to the first of many legisla- orders of more than £2 billion from global investors. London’s maiden tive measures introduced by HM Treasury to enable the development sakk is structured as a sakk al-ijarah and will pay out profits based on of Islamic finance in the UK. Since 2003, HM Treasury, HM Revenue & the rental income from three government-owned properties in lieu of Customs (HMRC) and the FSA have introduced several changes to the interest (riba), which is forbidden by shariah. The £200 million sale was tax and regulatory systems to enable UK companies to offer a range heavily oversubscribed by investors in the UK, Middle East and Asia, of Islamic financial products including asset finance, mortgages and attracting orders of £2.3 billion, 10 times higher than the amount sold. ISAs. Since 2004, the FSA has authorised a number of Islamic financial Then, in April 2015, the Secretary of State of Her Britannic Majesty’s firms and the UK is the first country in the EU to authorise stand-alone Government (acting by the Export Credits Guarantee Department Islamic financial institutions to offer only shariah-compliant products. (ECGD) and operating as UK Export Finance) guaranteed a sakk issued This has been achieved by applying the same authorisation criteria to by Khadrway Limited (where the proceeds of the issuance were used Islamic and conventional financial institutions. Britain currently has by the Emirates to finance the acquisition of four new Airbus A380- 20 financial institutions, including six fully shariah-compliant banks, 800 aircraft). This was the world’s first sakk supported by an export offering Islamic finance products. The main financiers in the UK market credit agency. include stand-alone Islamic financial institutions such as Al Rayan Bank Islamic finance products in the UK are not regulated any differently (formerly Islamic Bank of Britain) and certain conventional institutions from conventional instruments and existing legislation and regulations that have set up Islamic windows. If a conventional institution estab- apply. The UK’s approach has been to ensure a level playing field for lishes a separate branch or subsidiary to operate as an Islamic window, Islamic finance products and conventional instruments, and so the UK that branch or subsidiary would probably require a separate authorisa- has proactively monitored and responded to any unequal treatment tion from the FCA. between the two by introducing remedial legislation and regulations. Sovereign wealth funds from Islamic countries are active in the For example, the government was quick to remedy the adverse tax treat- UK. The mandate of the Islamic Finance Task Force is to facilitate ment of sukuk to place them on a level playing field with conventional Islamic financial business, including investment in UK infrastructure by debt instruments. Another example is where the HM Treasury abolished Islamic sovereign wealth funds. Islamic funds also operate from the UK the double stamp duty land tax charge
Load more

Recommended publications
  • Maqasid Al-Shari'ah in Ijarah (Leasing) Contract of Islamic
    Journal of Islamic Finance, Vol. 6 No. 2 (2017) 038 – 044 IIUM Institute of Islamic Banking and Finance ISSN 2289-2117 (O) / 2289-2109 (P) Maqasid Al-Shari’ah in Ijarah (Leasing) Contract of Islamic Banking System Adeyemo Wale Lateefa, Alawiye Abdulmumin Abdurrazzaqa, Syahirah Abdul Shukora, Amalina Ahmad Tajudina aFaculty of Syariah and Law, Universiti Sains Islam Malaysia (USIM) Abstract The operating ijarah and ijarah financing are currently generating interest among the Islamic banks, investors, customers and even policy makers due to their less risk overloads and better profits to the public. This paper attempts to highlight the benefits of applying the Islamic legal objectives (Maqasid Al-Shari’ah) in ijarah contract, and how a strict compliance to the latter can help manage Shari’ah, business and distribution of wealth in the society. The paper discusses the impact of Muslim scholars in applying ijtihad and analogical deduction to fashion out the appropriate ruling in respect of the issues, by putting into consideration what would be the best interest of Islam and Muslim community as a whole. It also discusses the consent of the contracting parties as one of the conditions validating the ijarah contract, and as a supplement to the objective of avoiding injustice and embezzlement of another person’s wealth. The paper explains how the profit made and the risks incurred, if any, are shared between the parties involved in ijarah transaction which are proportionally shared according to what has been earlier agreed upon. Keywords: ‘Ijarah, Maqasid al-Shari’ah, Islamic banking, ijtihad, distribution of wealth. © IIUM Press 1.
    [Show full text]
  • New Model of Salam Sale for Agricultural Development Finance
    Research Article New Model of Salam sale for Agricultural Archives of Development Finance Al Siddig Talha M Rahma* Agriculture Imam Mohammed Ibn Saud Islamic University, College of Economics &Business administration, Kingdom of Saudi Arabia Research and Abstract Technology (AART) The new financial economic model derived from the traditional Salam situation. This scenario is based on the idea behind the treatment of risks facing traditional Salam applications, which includes high rates of inflation and the exit of financing from its approved aspects, which cannot enable the farmer or producer to disburse this monetary benefit in the Volume 1 Issue 3, 2020 fields of agriculture. Then Banks and financial institutions lose huge amounts of money that are wasted. In addition, lack of understanding of the process of obtaining loans between farmers and producers, this new model can solve many problems Article Information and risks in the classic sales of Salam, which rely mainly on granting cash loans. Received date: May 28, 2020 Published date: July 07, 2020 The paper works to monitor and limit the risks posed by the traditional Salam and pushes that agricultural financing loses. It is most important input to financing and then corrects the paper and it relies on this innovative model, which aims to provide the necessary inputs to farmers and producers. This paper attempts to solve this problem by providing inputs directly *Corresponding author by updating production through regular and timely operation of modern scientific inputs. Al Siddig Talha M Rahma, Imam Mohammed Ibn Saud Islamic University, The study identified the structural equation model to analyze the results of the analysis of descriptive statistical data, College of Economics & Business which resulted in the preferred cash financing for farmers as a desirable situation.
    [Show full text]
  • Understanding Islamic Law (Sharī’A)
    Understanding Islamic Law (Sharī’a) bhala understanding 2e.indb 1 7/6/16 8:09 AM bhala understanding 2e.indb 2 7/6/16 8:09 AM Understanding Islamic Law (Sharī’a) second edition Raj Bhala Associate Dean for International and Comparative Law and Rice Distinguished Professor, University of Kansas School of Law Carolina Academic Press Durham, North Carolina bhala understanding 2e.indb 3 7/6/16 8:09 AM Copyright © 2016 Carolina Academic Press LLC All Rights Reserved Library of Congress Cataloging-in-Publication Data Names: Bhala, Raj, author. Title: Understanding Islamic law / Raj Bhala. Description: Second Edition. | Durham, North Carolina : Carolina Academic Press, [2016] | Includes bibliographical references and index. Identifiers: LCCN 2016027161 | ISBN 9781632849502 (alk. paper) Subjects: LCSH: Islamic law. Classification: LCC KBP144 .B49 2016 | DDC 340.5/9--dc23 LC record available at https://lccn.loc.gov/2016027161 Carolna Academic Press LLC 700 Kent Street Durham, NC 27701 Telephone (919) 489-7486 Fax (919) 493-5668 www.caplaw.com Printed in the United States of America bhala understanding 2e.indb 4 7/6/16 8:09 AM Bismillah ir Raḥmān ir Raḥīm (In the Name of God, the Most Gracious, the Most Merciful) Christians and Muslims are brothers and sisters. We must therefore consider ourselves and conduct ourselves as such. Together, we must say no to hatred, to revenge and to violence, particularly that violence which is perpetrated in the name of a religion or of God himself. God is peace, salām. His Holiness, Pope Francis (1936–), Bishop of Rome Address and Meeting with the Muslim Community Central Mosque Bangui, Central African Republic 30 November 2015 May the pure, brilliant sun of bodhicitta [enlightened mind] Dawn in each and every heart and mind Dispelling the darkness of suffering and confusion Unstoppably — until all are illumined and awakened.
    [Show full text]
  • Qardhul Hasan Principles Applied to Micro Finance Facilities Paper to Be
    Research Center for Islamic Economics and Finance Universiti Kebangsaan Malaysia Bangi 43600, Selangor, Malaysia Fax: +603-89215789 http://www.ekonis-ukm.my E-mail: [email protected] Working Paper in Islamic Economics and Finance No. 1021 Qardhul Hasan Principles Applied to Micro Finance Facilities Abdul Ghafar Ismail1 Bayu Taufiq Possumah2 Research Center for Islamic Economics and Finance School of Economics Universiti Kebangsaan Malaysia Bangi, 43600 Selangor D.E., Malaysia Fax: +603-8921 5789 e-mail: [email protected] Paper to be presented at The 2nd International Workshop in Islamic Economics Theory: Islamic Micro-finance Towards Global Poverty Alleviation and Sustainable Development, 8-9 December 2010, Bangi Abstract During the last ten years, several developing Muslim countries experienced an interesting phenomenon. Where they are able to build his country's economy through the economic empowerment of small communities. The role of microfinance institutions cannot be denied. Through microfinance programs, the country can further improve the welfare of the poor and reducing poverty. Accordingly, Muslim countries have to combat it by using religious institution and culture. In this case, the role of Qardh al Hasan, as traditional Islamic financing in tackling of poverty is very relevant and important. Qardh al Hasan is supposed to be an important to investigate and provide much needed social service to the poor effectively. The Qardh al-hasan is one of financing-product provided by microfinance institutions. Unlike other financing products, the qardhul-hasan has some unique characteristics, including to entertaint a very specific customers who might be categorized as the dhuafa’ group. The purpose of this paper is to show how microfinance programmes based on Qardh al Hasan financing principles can be established.
    [Show full text]
  • Sukuk in Focus the Necessity for Global Common Practices Deloitte Islamic Finance Insights Series Leading by Engaging
    Sukuk in focus The necessity for global common practices Deloitte Islamic Finance Insights Series Leading by engaging Sukuk in focus | The necessity for global common practices Contents 04 05 06 07 Foreword from Deloitte Foreword from ISRA Acknowledgments Executive summary 09 10 12 17 Introduction: Strategic Shariah governance and Practice and market Regulatory capabilities and practice approach sustainability institutions market development 40 41 Sustainability in focus Thinking further ahead: Practice and policy considerations 03 Sukuk in focus | The necessity for global common practices Foreword from Deloitte Dear Islamic finance practitioners, For Islamic finance practitioners, this will require re-thinking and re-modelling of For nearly two decades, many financial their governance frameworks and regulators and investment institutions business operating channels. Most around the world have been committed importantly, practitioners need to harness to strengthening practices in Islamic their Islamic finance corporate culture capital markets, and leverage standards and embrace a ‘back to basics’ approach for Sukuk as a key investment asset class. and adhere to designing products and Embedded within this has been an services in line with the ‘equity-base’ equally strong commitment from industry differentiator to fund real economy standards setters and other business projects. supporting institutions (BSIs) to address practice differences and inconsistency. Clearly, this can be streamlined in the first place, with Maqasid Al Shariah, which It is with great pleasure that we produce reflects values and practices of social and Dr. Hatim El Tahir, FCISI this report, and put forward our thoughts economic inclusion and sustainable Director, Islamic Finance Group on a number of business practices community development.
    [Show full text]
  • Resolutions of the Shariah Advisory Council of the SC
    RESOLUTIONS OF THE SHARIAH ADVISORY COUNCIL OF THE SECURITIES COMMISSION MALAYSIA 31 December 2020 Resolutions of the Shariah Advisory Council of the Securities Commission Malaysia Resolutions of the Shariah Advisory Council ii of the Securities Commission Malaysia CONTENTS PART A 2 INTRODUCTION AND OBJECTIVES PART B 3 RESOLUTIONS OF THE SHARIAH ADVISORY COUNCIL OF THE SECURITIES COMMISSION MALAYSIA PRINCIPLES AND CONCEPTS OF MUAMALAT IN THE ISLAMIC CAPITAL MARKET 1. Ta`widh 4 2. Bai` `Inah (i) Implementation of Bai` `Inah 8 (ii) Implementation of Resolution on Bai` `Inah in Sukuk Structuring 12 3. Ibra’ 14 4. Wa`d and Muwa`adah 16 5. Tawarruq 20 6. `Aqd al-Tawrid 21 ISLAMIC CAPITAL MARKET PRODUCTS 7. Nature of Shares 25 8. Crude Palm Kernel Oil Futures Contract (FPKO) 26 9. Single Stock Futures (SSFs) Contract 27 10. Islamic Business Trusts 29 11. Islamic Exchange-Traded Fund Based on Gold and Silver 31 12. Stapled Securities 34 Resolutions of the Shariah Advisory Council iii of the Securities Commission Malaysia 13. Issuance of Redeemable Convertible Unsecured Islamic Debt 35 Securities (RCUIDS) with Free detachable Warrants Based on Shariah Principle of Murabahah (via Tawarruq Arrangement) 14. Islamic Securities Selling and Buying-Negotiated Transaction (iSSB- 39 NT) Model 15. Islamic Real Estate Investment Trusts (Islamic REIT) 40 SHARIAH ISSUES IN RELATION TO THE ISLAMIC CAPITAL MARKET TYPES OF IJARAH 16. Ijarah Mudhafah Ila Mustaqbal 54 17. Ijarah Mawsufah Fi Zimmah 56 18. Ijarah Muntahiyah Bi Tamlik 58 19. Sublease 60 20. Implied Sublease 61 IJARAH ASSET 21. Asset and Usufruct as Mahal al-`Aqd in Ijarah Contract 63 22.
    [Show full text]
  • Leveraging Islamic Banking and Finance for Small Business: Exploring the Conceptual and Practical Dimensions
    ADBI Working Paper Series LEVERAGING ISLAMIC BANKING AND FINANCE FOR SMALL BUSINESSES: EXPLORING THE CONCEPTUAL AND PRACTICAL DIMENSIONS Mohamed Asmy Bin Mohd Thas Thaker, Hassanudin Bin Mohd Thas Thaker, Anwar Bin Allah Pitchay, Md Fouad Bin Amin, and Ahmad Bin Khaliq No. 1156 June 2020 Asian Development Bank Institute Mohamed Asmy Bin Mohd Thas Thaker is associate professor at the International Islamic University Malaysia, Kuala Lumpur. Hassanudin Bin Mohd Thas Thaker is assistant professor at Sunway University, Kuala Lumpur. Anwar Bin Allah Pitchay is assistant professor at Universiti Sains Malaysia, Penang. Md Fouad Bin Amin is assistant professor at King Saud University, Riyadh. Ahmad Bin Khaliq is assistant professor at the International Islamic University Malaysia, Kuala Lumpur. The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms. Working papers are subject to formal revision and correction before they are finalized and considered published. The Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI’s working papers reflect initial ideas on a topic and are posted online for discussion. Some working papers may develop into other forms of publication. Suggested citation: Thaker, M. A. B. M. T., H. B.
    [Show full text]
  • 1 the Practice of Murabaha
    THE PRACTICE OF MURABAHA: A COMPARATIVE STUDY BETWEEN BANK MUAMALAT INDONESIA AND ALBARAKA BANK IN SOUTH AFRICA Thesis Submitted to the Shari’a and Law Faculty in Partial Fulfillment of the Requirements for the Degree of Strata 1 By: Shiraaj Buziek 105046103559 ISLAMIC ECONOMICS SHARI’A AND LAW FACULTY SYARIF HIDAYATULLAH STATE ISLAMIC UNIVERSITY JAKARTA 2011 1 2 THE PRACTICE OF MURABAHA: A COMPARATIVE STUDY BETWEEN BANK MUAMALAT INDONESIA AND ALBARAKA BANK IN SOUTH AFRICA Thesis Submitted to the Shari’a and Law Faculty in Partial Fulfillment of the Requirements for the Degree of Strata 1 By: Shiraaj Buziek 105046103559 Under the Guidance Advisor DR. Phil. JM. Muslimin, MA NIP. 150 295 489 ISLAMIC ECONOMICS SHARI’A AND LAW FACULTY SYARIF HIDAYATULLAH STATE ISLAMIC UNIVERSITY JAKARTA 2011 3 PENGESAHAN PANITIA UJIAN Skripsi berjudul “The Practice Of Murabaha: Comparative Study Between Bank Muamalat Indonesia and Albaraka Bank In South Africa” telah diujikan dalam Sidang Munaqasyah Fakultas Syariah dan Hukum Universitas Islam Negeri (UIN) Syarif Hidayatullah Jakarta pada 5 April 2011. Skripsi ini telah diterima sebagai salah satu syarat memperoleh gelar Sarjana Ekonomi Syariah (SE.Sy) pada Program Studi Muamalat (Ekonomi Islam). Jakarta, 5 April 2011 Mengesahkan Dekan, Prof.Dr.H. Muhammad Amin Suma, SH, MA, MM NIP. 195505051982031012 PANITIA UJIAN 1. Ketua : Dr.H.A.Mukri Adji, M.A NIP. 195703121985031003 2. Sekretaris : Mu‟min Roup, S.Ag., MA NIP. 150281979 3. Pembimbing : Dr. Phil JM Muslimin, MA (…………..) NIP. 150295489 4. Penguji I : Dr. H. Anwar Abbas, M.Ag, MM NIP. 195502151983031002 5. Penguji II : Drs. Noryamin Aini, MA NIP. 196303051991031002 4 IN THE NAME OF ALLAH THE MOST BENFEICIENT THE MOST MERCIFUL 5 DECLARATION I declare that the thesis “The Practice Of Murabaha: Comparative Study Between Bank Muamalat Indonesia and Albaraka Bank In South Africa” is hereby submitted to the Shari‟ah and Law Faculty at UIN Syarif Hidayatullah State Islamic University of Jakarta in Partial Fulfillment of the Requirements for the Batchelors Degree.
    [Show full text]
  • Introduction to Takaful
    + Introduction to Takaful Zulkifli Hasan, PhD + Contents n Insurance n Takaful + HISTORICAL BACKGROUND OF WESTERN CONCEPT OF INSURANCE n 1. Ottoman Empire- First introduce western concept of insurance- Maritime Code 1863. n 2. Ottoman Law of Insurance 1874-only life insurance is haram or unlawful n Since then, western concept of insurance is practiced almost in all countries in the world + Insurance? n Financial protection which involves the execution of contracts between the insurer and the insured in which the insurer agrees to underwrite the subject risk of such contracts. + Definition n Insurance is an economic device whereby the individual substitutes a small certain cost (premium) for a large uncertain financial loss (the contingency insured against) that would exist if it were not for the insurance. +Socio-Economic Benefits of Insurance n Risk Coverage n Habit of Thrift n Safe and Profitable Investment n Secure working environment for Businesses n Planning for life stage needs n Capital formation in the Economy + Nature of Insurance Contract General Insurance Premium Compensation Life Insurance Premium Compensation + Insurance from Islamic Perspective n Three major groups. 1. Those who consider both the concept and practice of commercial insurance un-Islamic. 2. Those who are in agreement with the present insurance and find nothing wrong in it. 3. Those who accept the concept of insurance, but find prohibited elements in its present practice. + Rulings of Collective Fiqhi Bodies n Islamic Research Institute of Al-Azhar Uni: 1965 n Council of Grand Ulama of Saudi Arabia n Majlis Tahqiqat-e-Shari'yah Lucknow, India n Islamic Fiqh Academy of Rabita al-Aa'lam-e-Islami n Al Majma’ Al-Fiqhi Al- Islami of OIC: 1975 n Council of Islamic Ideology, Pakistan: 1983 n International conference on islamic economic 1976 n European Council for Fatwa.
    [Show full text]
  • A Proposed Qard-Al-Hasan Contract
    International Journal of Islamic Economics and Finance (IJIEF) Vol. 3(2), page 95-118, Special Issue: Islamic Social Finance and Ethics Crowdfunding as an Alternative Mode of Financing Micro and Small Enterprises: A Proposed Qard-al-Hasan Contract Abdulmajeed M.R. Aderemi Universiti Sultan Zainal Abidin, Malaysia Corresponding email: [email protected] Muhammad Shahrul Ifwat bin Ishak Universiti Sultan Zainal Abidin, Malaysia Article History Received: June 6th, 2020 Revised: August 8th, 2020 Accepted: August 30th, 2020 Abstract The global financial crisis that occurred in 2008, coupled with the evolution and globalization of social media and technology has made the evolvement of crowdfunding easy to use as a means of financing. However, the concept of crowdfunding is correlated with spiritual and religious responsibility which can increase the economic growth of Micro and Small Enterprises. In light of this, this paper aims to investigate the capacity of crowdfunding and proposes a crowdfunding model that adheres to the principle of Shari’ah by adopting a legitimate contract known as Qard-al-Hasan. In this regard, the study adopts a qualitative research using secondary data with descriptive, and inductive approaches in analysis. The result shows that Qard-al-Hasan based crowdfunding is great for pioneering business people to get access to financing their small and micro enterprises in compliance with Shariah. However, the findings of this paper will provide a new mechanism for financing micro and small enterprises in line with Shariah. Keywords: Crowdfunding, Qard-al-Hasan, Micro and Small Enterprises. JEL Classifications: P43, O36, D64, L25. @ IJIEF 2020 published by Universitas Muhammadiyah Yogyakarta, Indonesia All rights reserved DOI: Web: https://doi.org/10.18196/ijief.3235 https://journal.umy.ac.id/index.php/ijief/article/view/8968 Citation: Aderemi, A.
    [Show full text]
  • Takaful) by Bouaziz Cheikh
    POINT DE VUE POINT OF VIEW Assurances et gestion des risques, vol. 81(3-4), octobre-décembre 2013, 291-304 Insurance and Risk Management, vol. 81(3-4), October-December 2013, 291-304 Abstract To Islamic Insurance (Takaful) by Bouaziz Cheikh ABSTRACT Takaful is the means of bringing the social and economic benefits of modern insurance coverage, in a form consistent with their religious beliefs, to Muslims and to the merging economics of many predominantly Muslims countries. As such, the development of Takaful is crucial, both to social inclusion in non–Muslim countries, and to economic development in a number of countries with emerging market economies. It is therefore only surprising that the Takaful industry is undergoing a period of rapid growth. Yet the development of Takaful faces some formidable barriers that are largely due to the complex structure of takaful unders- tandings and the unresolved issues associated with it. These issues contribute to making the development of an appropriate legal and regulatory infrastructure, as well as financial reporting, corporate governance, rating and other related matters, problematic for the Takaful industry. RÉSUMÉ L’assurance « takaful » apporte des valeurs sociales et économiques aux bénéfices de l’assurance traditionnelle actuelle, qui sont en harmonie avec les croyances religieuses islamiques que l’on retrouve dans de nombreux pays. En cela l’assurance « takaful » opère en parallèle dans les pays non-islamiques notamment dans les économies émergentes et se développe rapidement depuis ces dernières années. L’auteur Bouaziz Cheikh est Commissaire Aux Comptes / Chercheur, École De Hautes Études En Assurance (Alger) : Master En Assurance.
    [Show full text]
  • Ijarah ( Lease )
    Dallah Al-Baraka Group Al-Baraka Banking Group (ABG) Department of Research & Development Ijarah ( Lease ) Prepared by: Dr.Abdul Sattar Abu Ghuddah Secretary General, Unified Shariah Panel Dallah Al-Barakah Group 1 2 ﺑﺴﻢ ﺍ ﺍﻟﺮﲪﻦ ﺍﻟﺮﺣﻴﻢ In the name of Allah, the merciful, the compassionate 3 4 Introduction In the name of Allah, the merciful, the compassionate Praise be to Allah, the AlMighty and peace be upon prophet Mohammad, family and companions. It is our pleasure to present this research on Shariah provisions of Ijarah and Ijarah Wa AlIqtina, which have been conducted in an attempt to develop an standard for Ijarah and Ijarah Wa Aliqtina. During preparation of this book, consideration is given to showing basic principles of the two types of Ijarah jurisprudence (Figh) i.e operating and lease (Ijarah) ending into ownership. Then light was shed on points which need accounting treatment in order Shariah requirements to be observed thereto. Certain Figh subjects were briefly tackled while others were excluded, due to the fact that they are not relevant to the subject matter of this research. Furthermore, Shariah issues which are not required for the purpose of this research were either briefed or dropped. It is also noticed that there is an imbalance in the quantity of data related to some Figh issues. This is because we elaborated on accounting matters. 5 While other subjects which are not of the basic principles of Ijarah are briefly mentioned. It is worth mentioning that operating Ijarah is the type which is frequently referred to by jurists of all schools, while Ijarah Wa Aliqtina (Lease ending into ownership) is one of the newly introduced modes of Ijarah contract.
    [Show full text]