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Use of hiyal in Islamic finance and its Shari'ah legitimacy
Author
Source
Journal of Islamic Business and Management
Issue
Vol. 1, Issue 1 (31 Dec. 2011), pp.69-92, 24 p.
Publisher
Riphah International University Riphah Centre of Islamic Business
Publication Date
2011-12-31
Country of Publication
Pakistan
No. of Pages
24
Main Subjects
Financial and Accounting Sciences
Religion
Islamic Studies
Topics
- Banks
- Islamic jurisprudence
- Islam
- Financing
- Finance
- Credit operation
- Tawarruq
- Religious aspects
- Banking
- Maqasid al-Shari'ah
- Islamic Banks
- Deeds
- Deception
Abstract EN
Sharī´ah legitimacy of Islamic banking has been a subject of intense debate and discussion among the religious scholars.
A group of ‘ulama hold the opinion that current Islamic banking practices are un-Islamic.
Their major objection on Islamic banking and finance is that it heavily relies on ╒iyal i.e.
stratagems and subterfuges to circumvent sharī´ah prohibitions on riba, which frustrate the higher objectives of the sharī´ah.
The purpose of this paper is to examine whether Islamic financial products and banking transactions are in nature of stratagems that frustrate the purpose and spirit of law or they are only clever uses of law with a view to provide solutions to difficult problems without frustrating the purpose of Islamic law.
The article is divided into two sections.
Section-1 deals with classical approach towards treatment of legal devices.
Section-II deals with the application of ╒iyal to modern Islamic finance.
In this section, subversive ╒iyal such as bai´ al-‘inah, tawarruq, commodity murabaha and sale and lease back ╖uk┴k have been discussed.
In the analysis of the author, such legal devices oppose the higher objectives of sharī´ah relating to Islamic economics and finance.
This section also deals with such legal devices which suggest a way out or outlet from difficult situation.
An attempt has been made to determine whether a particular device simply overcomes rigidity and inconvenience or it circumvents sharī´ah prohibitions.
The paper emphasizes the centrality of maq┐╖id alsharī ´ah in ijtihad and fatwa in the field of Islamic finance.
It suggests that in developing financial products, maq┐╖id al-sharī´ah should be given prime consideration; otherwise Islamic finance will lose its real merit and substance.
American Psychological Association (APA)
Mansuri, Muhammad Tahir. 2011. Use of hiyal in Islamic finance and its Shari'ah legitimacy. Journal of Islamic Business and Management،Vol. 1, no. 1, pp.69-92.
https://search.emarefa.net/detail/BIM-604828
Modern Language Association (MLA)
Mansuri, Muhammad Tahir. Use of hiyal in Islamic finance and its Shari'ah legitimacy. Journal of Islamic Business and Management Vol. 1, no. 1 (Dec. 2011), pp.69-92.
https://search.emarefa.net/detail/BIM-604828
American Medical Association (AMA)
Mansuri, Muhammad Tahir. Use of hiyal in Islamic finance and its Shari'ah legitimacy. Journal of Islamic Business and Management. 2011. Vol. 1, no. 1, pp.69-92.
https://search.emarefa.net/detail/BIM-604828
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 91-92
Record ID
BIM-604828