Assoc. Prof. Dr.


Mohamed Fairooz Abdul Khir

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Ph.D. in Fiqh, Usul al-Fiqh and Islamic Finance, University of Malaya (UM) (2011)
Fields/Area of Specialization
Islamic Banking
Assoc. Prof. Dr. Mohamed Fairooz Abdul Khir holds a Master in Shariah & Ph.D. in Fiqh, Usul al-Fiqh and Islamic Finance from University of Malaya (UM). Prior to joining INCEIF, he served International Islamic University Malaysia (IIUM) as an Associate Professor at Cluster of Islamic Accounting, Finance and Banking. He also served International Shari’ah Research Academy for Islamic Finance (ISRA) as a researcher and headed the Islamic Banking Unit. He has presented numerous research papers in local and international conferences and forums.

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Now showing 1 - 11 of 18
  • Publication
    Actual costs in fees and charges in Islamic banking
    Mohamed Fairooz Abdul Khir (ISRA, 2014)

    A bank is a financial intermediary that generates income from its fund-based and fee-based products and services. As for the former, the bank has to share the profits with parties from whom it sources funds such as depositors and shareholders to provide financing facilities for its customers. Unlike its fund-based products and services, the bank can recognise any profit generated from its fee-based products and services solely as its own income without having to share it with other parties as it does not utilise others' money in offering such products and services.

  • Publication
    Bilateral rebate (ibra' mutabadal) in Islamic banking operation: a critical appraisal
    Mohamed Fairooz Abdul Khir (Emerald Publishing Limited, 2016)

    This study aims to examine the scholars' views on the legality of bilateral rebate in Islamic financial transactions. It also aims to evaluate the contemporary application of bilateral rebate in Islamic banking operation as an alternative to the conventional mechanism in handling the events of early settlement of debt, early termination of debt facility and early withdrawal of term deposit. The study used deductive and inductive methods to analyze the juristic literature of all the major schools of law on the legality of both bilateral and unilateral rebate in a financial transaction. The study found bilateral rebate (ibra' mutabadal), instead of unilateral rebate, to be the best and fairest Islamic mechanism to overcome injustice in several events that may impact the bank's liquidity such as that of early settlement of debt facility and early withdrawal of term deposit in the sense that the interest (maslahah) of both transacting parties is equally secured.

  • Publication
    The Shari'ah basis for imposition of fees and charges in Islamic banking products and services
    Mohamed Fairooz Abdul Khir (2015)

    This research is essentially intended to explore relevant Shari'ah principles that may underlie imposition of fees and charges in various lslamic banking products and services (IBPS). It also aims at constructing a Shari'ah parameter for imposition of fees and charges in IBPS. This is a library research in which data has been collected from various materials such as classical fiqh books, regulators' policy guidelines and journal articles. In addition, deductive and inductive rnethods have also been employed to analyze the data critically in search for conclusive findings. The expected outcomes of this research may be in the form of a Shari'ah-compliant guide for practitioners and industry players in relation to the imposition of fees and charges in various products and services under different banking portfolios.

  • Publication
    Critical appraisal of rahn-based Islamic microcredit facility from Shari'ah perspective
    Mohd Bahroddin Badri; Lokmanulhakim Hussain; Mohamed Fairooz Abdul Khir (AENSI Publications, 2013)

    The rahn-based Islamic microcredit facility is currently popular among Islamic financial institutions in Malaysia, essentially because of its commercial features, which make it attractive and competitive with conventional pawnbroking. However, the substance of this product triggers some Shari`ah issues, which are mainly centred on the safekeeping fee the bank charges the customer under the principle of ijarah al-hifz (safekeeping fee) and wadi`ah yad al-damanah (guaranteed safe custody). This paper is primarily intended to examine the key Shari`ah issues associated with the structure that is widely accepted at present. It undertakes a case study of two selected Islamic banks that offer a rahn-based Islamic microcredit facility to their clients. The product manual of each bank has been examined to understand the structure flow of the product, payment of the safekeeping fee and other relevant operational aspects of the product. Interviews have also been conducted to gather data related to the operation of this product that was not available in the product manuals of the two selected Islamic banks. It is proposed that the alternative structure must comply with the Shari`ah and meets most of the distinctive commercial features of the rahn-based Islamic microcredit facility to maintain its commercial viability in the industry.

  • Publication
    Wadiah and ujrah issue in al-rahnu product: a turning point to tawarruq structure
    Dziauddin Shariff; Fadhilah Adibah Ismail; Mohamed Fairooz Abdul Khir (Human Resource Management Academic Research Society, 2022)

    The issue of wadi'ah and ujrah has long been discussed by scholars in the past by dividing them into two different types of contracts, namely mu'awadat and tabarru'at. They agreed that these two contracts have different characteristics, where mu'awadat is to generate profit while tabarru'at is a purely charitable contract. Thus, this article aimed to review why this combination is a non-shari'ah compliant and therefore, a replacement with another shari'ah structure becomes an essential. This study uses qualitative approach where interviews and content analysis are conducted and several books of fiqh from the four schools of thought are examined. The frequency of words by using some identified terms such as wadi'ah, rahn, ujrah, mu'awadat and tabarru'at are determined and coded to form the tendency of fiqh views whether it support the objective or against it. The study shows that modern scholars have a tendency of shared similar views and they found these two covenants (wadi'ah and ujrah) have been mixed in the same product namely ar-rahnu and this has raised the issue of shariah. They argued the safekeeping of collateral is applied based on the principle of wadi'ah where they impose a fee for the service that is rendered. This kind of fee is charged under the principle of ujrah. However, this connection gives rise to the indirect implications of bay' wa salaf and qard jarra manfa'ah, that are prohibited in shari'ah. Therefore, the tawarruq is so much better option to replace the wadiah-ujrah principles.

  • Publication
    Shari'ah perspective on gold
    Mohamed Fairooz Abdul Khir (ISRA, 2015)

    The Quran confirms that gold as a currency is desired by all of mankind due to its inherent nature of purchasing power and store of value that enables mankind to gain ownership. Al-Razi in his commentary on Chapter Ali-Imran, verse 14 stated that, "the owner of gold and silver are the owner of everything." Recently, there has been an increasing demand for gold as it continues to display its positive stable qualities that qualifies it as a risk management tool, particularly during adverse financial markets scenarios. According to the latest Gold Demand Trends annual report from the World Gold Council (WGC), gold demand in Q4 2014 increased by 6% as compared to that in Q4 2013. In addition, with the issuance of the guiding principles of Basel III: Liquidity Coverage and Liquidity Risk Monitoring Tool, there is an attempt to explore gold as a Shariah-compliant high quality liquid asset (HQLA) for the Islamic banking system.

  • Publication
    Al-'adl wa al-ihsan fi al-bay' wa al-qard al-hasan
    Mohamed Fairooz Abdul Khir (ISRA, 2012)

    An abstract is written in Arabic.

  • Publication
    The concept of the time value of money: a Shari'ah viewpoint
    Mohamed Fairooz Abdul Khir (ISRA, 2012)

    The concept of the time value of money (TVM) has been well accepted and widely applied in the conventional financial system for a very long time. However, Islamic scholars hold differing views regarding its conceptual and practical foundation in the Islamic financial system. The opponents of TVM have argued that recognizing it will lead to acceptance of riba, against which Islam is at war. This may, however, be a hasty judgment. Islam does not reject any concept that aligns with its teaching, promotes justice among people and secures their interests, particularly in financial transactions. The concept of TVM establishes that time can be given a counter-value in association with real commercial activities. Therefore, Islamic acceptance of TVM should not be disregarded, particularly in financial transactions, such as deferred sales and loan contracts, in order to uphold justice. However, the concept of TVM must be applied in accord with specific Shari'ah parameters because applying it without complete adherence to its Shari'ah parameters may lead to actual riba. In contrast, if the Shari'ah parameters are completely complied with, the application of TVM may result in removal of riba and achievement of fair economic effects in financial transactions. Hence, this study aims to examine the legal status of the time value of money in Islam and then formulate the Shari'ah parameters for its application in Islamic finance. The study employed the library method to collect information, which was analysed using comparative, deductive and inductive methods. The study establishes that Islam recognizes the legitimacy of the time value of money arising from deferment (ajal), but its application must be in conformity with the Shari'ah parameters in order to avoid riba.

  • Publication
    ISRA Bloomberg quarterly sukuk review Q3, 2014
    Shamsiah Mohamad; Tawfik Azrak; Nur Najihah Hussin; Mohamed Fairooz Abdul Khir (ISRA, 2014)

    A summary of some Q3 2014 sukuk issuances are presented along with ISRA's views on the sukuk tradability, transaction flow and shariah compliance. The following sukuk are reviewed from Bumi Armada Capital Sdn Bhd, Bumitama Agri Ltd, Hong Kong Sukuk 2014 Limited, Perusahaan Penerbit SBSN Indonesia III, and Perbadanan Tabung Pendidikan Tinggi Nasional.

  • Publication
    Islamic finance education in the era of Industrial Revolution 4.0 (IR 4.0)
    Hainnur Aqma Rahim; Mohamed Saladin Abdul Rasool; Nor Asmat Ismail; Mohamed Fairooz Abdul Khir (Human Resource Management Academic Research Society, 2021)

    The idea of a new era, the Industrial Revolution (IR 4.0), encourages the increased use of highly automated tools and the development of cutting-edge technology that limits human interaction and speeds up normal processes in the banking industry's existing environment. This paper attempts to explore the significance of IR4.0 in the Islamic finance education. Thus, this article presents three main purposes; 1) to identify the Fourth Industrial Revolution (4th IR); 2) to identify the IR 4.0 and Higher Education In Malaysia and 3) to stress the roles of Islamic Finance Education Providers. This study employed a qualitative research methodology through data collection from several previous works. The findings of this study revealed that the universities as provider of higher education services in the area of Islamic finance must also strategize the Islamic finance education direction and revisit the program that they are currently offering by altering the contents to be in consonance with the IR 4.0.

  • Publication
    Hubungan budaya organisasi dan nilai Islam terhadap amalan etika kerja Islam (EKI) di kalangan penjawat awam di Malaysia
    Sutera Manis Zamzam; Hainnur Aqma Rahim; Mohamed Fairooz Abdul Khir (Asian Scholars Network (ASNet), 2020)

    Kajian ini bertujuan untuk melihat hubungan budaya organisasi dan nilai Islam terhadap amalan etika kerja Islam (EKI) di kalangan penjawat awam di dalam organisasi Islamik. Secara khususnya pula, kajian ini akan memfokuskan kepada ciri-ciri yang ada di dalam teori budaya organisasi Hofstede dan nilai-nilai Islam yang ada di dalam ayat Al-Quran dan seterusnya menganalisis arah dan hubungan yang wujud di antara nilai budaya, nilai Islam terhadap amalan EKI. Kajian ini telah mengemukakan beberapa persoalan kajian iaitu apakah arah dan kekuatan hubungan nilai budaya terhadap amalan EKI dalam organisasi, apakah arah dan kekuatan hubungan nilai Islam terhadap amalan EKI dalam organisasi, bagaimanakah nilai budaya mempengaruhi amalan EKI di dalam organisasi dan bagaimanakah nilai Islam mempengaruhi terhadap amalan EKI dalam organisasi. Kajian dilaksanakan di kalangan penjawat beragama Islam di Wilayah Persekutuan Kuala Lumpur dan Putrajaya yang berkhidmat di agensi Islamik. Analisis statistik inferensi dilakukan di dalam kajian ini untuk melihat perhubungan yang wujud antara pemboleh ubah bebas dengan pemboleh ubah bersandar. Ujian korelasi Pearson dan regresi berganda digunakan untuk melihat hubungan dan arah yang wujud. Pemboleh ubah bebas dalam kajian ini adalah nilai budaya dari enam ciri budaya Hofstede dan nilai Islam di dalam al-Quran dengan melihat kepada pengaruh terhadap tingkahlaku kepada organisasi dan pelanggan di kalangan responden. Pemboleh ubah bersandar di dalam kajian ini pula adalah amalan etika kerja Islam. Kajian ini akan melihat sejauhmana kesedaran responden terhadap elemen nilai budaya yang wujud di dalam organisasi dan di dalam persekitaran kehidupan dan juga melihat kepercayaan kepentingan nilai Islam dalam melaksanakan tugas di dalam organisasi dengan memberi fokus kepada hubungan terhadap organisasi dan pelanggan. Kajian ini membuktikan bahawa amalan EKI dipengaruhi secara signifikan dan keseluruhannya berhubungan secara positif dengan pemboleh ubah kajian. Dapatan kajian ini sedikit sebanyakakan membantu organisasi untuk mengenalpasti mekanisma dalam usaha untuk meningkatkan amalan EKI di dalam organisasi.