Tradable inventory certificates a proposed new liquidity instrument

Abstract EN

The paper proposes inventory certificates, a new Islamic financial instrument based on inventory of big corporations to be financed and owned by investors.

This instrument uses murābaah as the underlying contract and accommodates collateral and guaranteed return.

It may be issued for short to medium terms.

It has a potential important contribution to solving the problems of working capital finance faced by Islamic business institutions in general and liquidity management of Islamic banks in particular.

It will also address the dearth of short term investment tools in the Islamic financial markets, providing an instrument which characterized of having stable and low risk returns.