Revisiting the principles of Gharar (uncertainty) in Islamic banking financing instruments with special reference to bay al-inah and bay al-dayn- towards a new modified model

Revisiting the principles of Gharar (uncertainty) in Islamic banking financing instruments with special reference to bay al-inah and bay al-dayn- towards a new modified model

One of the significant features of Islamic banking is the elimination of riba and gharar. However many problems arise in some of Islamic banking financing instruments when they are claimed to contain significant elements of gharar thus held unacceptable in certain Muslim countries. Among these instr...

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Main Author: Razali, Siti Salwani
Format: Article
Language:English
Published: Publishing India Group 2012
Subjects:
BP173.75 Islam and economics
HG1501 Banking
Online Access:http://irep.iium.edu.my/26482/
http://irep.iium.edu.my/26482/
http://irep.iium.edu.my/26482/1/Revisiting_the_principles_of_Gharar.pdf
id iium-26482
recordtype eprints
spelling iium-264822012-11-29T01:00:42Z http://irep.iium.edu.my/26482/ Revisiting the principles of Gharar (uncertainty) in Islamic banking financing instruments with special reference to bay al-inah and bay al-dayn- towards a new modified model Razali, Siti Salwani BP173.75 Islam and economics HG1501 Banking One of the significant features of Islamic banking is the elimination of riba and gharar. However many problems arise in some of Islamic banking financing instruments when they are claimed to contain significant elements of gharar thus held unacceptable in certain Muslim countries. Among these instruments are Bay al-Inah and Bay al-Dayn. Currently, Bay al-Inah is not accepted in some countries such as the Middle East countries as it is regarded as part of interest-based transaction. However, in Malaysia, Bay al-Inah has been formalised as a permissible practice and is has emerged as the most important mode of transactions that stimulates the growth of Islamic transaction in Malaysia, which finally comes across the globe to be among the most successful Muslim state in the development of Islamic Finance. On the other hand, Bay al-dayn or the sale of debt is not unanimously accepted or validated by Muslim scholars. Even though some scholars allow it in all forms and aspects, the others either disallow it entirely or allow it under certain circumstances and with certain clauses or conditions.The paper will discuss at length on both contracts and the legal implications of the presence of gharar on the validity of these contracts. The views from the jurists will be critically examined to revisit the existence of gharar especially in these two Islamic banking instruments namely bay al-dayn and bay al-inah. KEYWORDS Islamic Financial Instruments, Contracts,Gharar(Uncertainty),Bay Inah and Bay al-Dayn,Islamic Banking Products Publishing India Group 2012-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/26482/1/Revisiting_the_principles_of_Gharar.pdf Razali, Siti Salwani (2012) Revisiting the principles of Gharar (uncertainty) in Islamic banking financing instruments with special reference to bay al-inah and bay al-dayn- towards a new modified model. International Journal of Financial Management, 2 (1). pp. 33-43. ISSN 2229-5682 http://www.publishingindia.com/ijfm/30/revisiting-the-principles-of-gharar-uncertainty-in-islamic-banking-financing-instruments-with-special-reference-to-bay-al-inah-and-bay-al-dayn-towards-a-new-modified-model/130/1024/
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic BP173.75 Islam and economics
HG1501 Banking
spellingShingle BP173.75 Islam and economics
HG1501 Banking
Razali, Siti Salwani
Revisiting the principles of Gharar (uncertainty) in Islamic banking financing instruments with special reference to bay al-inah and bay al-dayn- towards a new modified model
description One of the significant features of Islamic banking is the elimination of riba and gharar. However many problems arise in some of Islamic banking financing instruments when they are claimed to contain significant elements of gharar thus held unacceptable in certain Muslim countries. Among these instruments are Bay al-Inah and Bay al-Dayn. Currently, Bay al-Inah is not accepted in some countries such as the Middle East countries as it is regarded as part of interest-based transaction. However, in Malaysia, Bay al-Inah has been formalised as a permissible practice and is has emerged as the most important mode of transactions that stimulates the growth of Islamic transaction in Malaysia, which finally comes across the globe to be among the most successful Muslim state in the development of Islamic Finance. On the other hand, Bay al-dayn or the sale of debt is not unanimously accepted or validated by Muslim scholars. Even though some scholars allow it in all forms and aspects, the others either disallow it entirely or allow it under certain circumstances and with certain clauses or conditions.The paper will discuss at length on both contracts and the legal implications of the presence of gharar on the validity of these contracts. The views from the jurists will be critically examined to revisit the existence of gharar especially in these two Islamic banking instruments namely bay al-dayn and bay al-inah. KEYWORDS Islamic Financial Instruments, Contracts,Gharar(Uncertainty),Bay Inah and Bay al-Dayn,Islamic Banking Products
format Article
author Razali, Siti Salwani
author_facet Razali, Siti Salwani
author_sort Razali, Siti Salwani
title Revisiting the principles of Gharar (uncertainty) in Islamic banking financing instruments with special reference to bay al-inah and bay al-dayn- towards a new modified model
title_short Revisiting the principles of Gharar (uncertainty) in Islamic banking financing instruments with special reference to bay al-inah and bay al-dayn- towards a new modified model
title_full Revisiting the principles of Gharar (uncertainty) in Islamic banking financing instruments with special reference to bay al-inah and bay al-dayn- towards a new modified model
title_fullStr Revisiting the principles of Gharar (uncertainty) in Islamic banking financing instruments with special reference to bay al-inah and bay al-dayn- towards a new modified model
title_full_unstemmed Revisiting the principles of Gharar (uncertainty) in Islamic banking financing instruments with special reference to bay al-inah and bay al-dayn- towards a new modified model
title_sort revisiting the principles of gharar (uncertainty) in islamic banking financing instruments with special reference to bay al-inah and bay al-dayn- towards a new modified model
publisher Publishing India Group
publishDate 2012
url http://irep.iium.edu.my/26482/
http://irep.iium.edu.my/26482/
http://irep.iium.edu.my/26482/1/Revisiting_the_principles_of_Gharar.pdf
first_indexed 2023-09-18T20:39:27Z
last_indexed 2023-09-18T20:39:27Z
_version_ 1777409266412421120

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