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An exploratory study on the possibility of replacing tawarruq based Islamic banking products using other alternatives

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dc.contributor.authorZaki Ahmad
dc.contributor.authorFaathih Zahir
dc.contributor.authorAhmed Mohamud Usman
dc.contributor.authorZakariya Mustapha
dc.contributor.authorAishath Muneeza
dc.date.accessioned2020-10-22T14:45:34Z
dc.date.available2020-10-22T14:45:34Z
dc.date.issued2020
dc.description.abstractTawarruq which is also known as commodity murabahah in Islamic banking is widely practiced in Malaysia to structure different types of Islamic banking products. The widespread use of tawarruq has made Islamic banks to be re-named as "tawarruq banks" and some even call tawarruq as the "magic lamp" of the industry. Shariah scholars have criticised this frequent usage of tawarruq in Islamic banking industry of Malaysia, while the practitioners have replied by saying that if tawarruq is a shariah approved concept, then what is wrong with the usage of it? However, from the shariah perspective, the issue here is not about the shariah compliance of tawarruq transactions per se. It is about the shariah limitations imposed by the scholars on the use of it. This simply means that there is a reservation made by shariah scholars in allowing the usage of tawarruq contract in Islamic finance as tawarruq is a contract allowed to be used when one has to choose between a conventional loan and tawarruq. The purpose of this research is thus to show the alternative Islamic commercial contracts that could be used to structure Islamic banking products that have been structured in the market using tawarruq. It is anticipated that the outcome of this research will assist Islamic banking industry to understand why and how they can move away from tawarruq.en_US
dc.identifier.citationAhmad, Z., Zahir, F., Usman, A. M., Muneeza, A., & Mustapha, Z. (2020). An exploratory study on the possibility of replacing tawarruq based Islamic banking products using other alternatives. International Journal of Management and Applied Research, 7(2), pp. 142-159.en_US
dc.identifier.doihttps://doi.org/10.18646/2056.72.20-011
dc.identifier.issn2056-757X
dc.identifier.urihttps://ikr.inceif.org/handle/INCEIF/3297
dc.languageEnglish
dc.language.isoengen_US
dc.publisherNew Millennium Discoveriesen_US
dc.rights2020. New Millennium Discoveries
dc.sourceSEDONA
dc.subjectAlternative model of tawarruqen_US
dc.subjectIjarahen_US
dc.subjectIslamic financeen_US
dc.subjectSalamen_US
dc.subjectTawarruqen_US
dc.titleAn exploratory study on the possibility of replacing tawarruq based Islamic banking products using other alternativesen_US
dc.typeJournal Articleen_US
dlc.maintopicIslamic bankingen_US
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicIslamic bankingen_US
relation.isAuthorOfPublication81014255-5cb8-46bc-ad81-bf6d8a3a0702
relation.isAuthorOfPublication81014255-5cb8-46bc-ad81-bf6d8a3a0702
relation.isAuthorOfPublication81014255-5cb8-46bc-ad81-bf6d8a3a0702
relation.isAuthorOfPublication.latestForDiscovery81014255-5cb8-46bc-ad81-bf6d8a3a0702
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