Shubuhat in Islamic financial products : Part (1)‎

Abstract EN

Islam, in principles, prohibits all activities that cause harm to the dealers and consumers in the market as well as in the society as a whole.

However, less emphasis has been made on doubtful activities (shubuhat).

Besides the dearth of latter studies in general, no study has been ever conducted as regards specifically the determinants of shubuhat and the use of any determinants to test for existence of shubuhat in Islamic financial products.

Thus, the objectives of this paper are, firstly, to come up with determinants of shubuhat, and, secondly, to test the existence of shubuhat in some selected Islamic financial products using the determinants.

Using the qualitative textual analysis, determinants of shubuhat were constructed, and consequently used to identify the effective determinants underlying the Islamic products under study.

A total of nine Islamic financial products were selected and tested, and it was found that shubuhat did exist in the Islamic financial products