The Uses and Misuses of Commodity Murabaha: Islamic Economic Perspective
AbstractSome exciting Economical developments have taken place in the area of Islamic finance during the preceding two years. There has been a fast expansion in its market share, diversification of products picked up pace and the rapid globalization of the services ensures their future expansion. Commodity murabahah is one of the most commonly used financing contracts in Islamic banking. But of no less consequence may prove, the lurch one finds commodity murabahah in at the close of 2008 (Hasan 2009) . Commodity Murabaha is clearly the Islamic treasurer’s funding product of choice, as it is flexible enough to facilitate many structures for financing, hedging, and currency exchanging. It is time to apply the shari'ah objective of “sa’dd-aldharai” that closes the potential avenues for outwitting the shari’ah objectives and spirit .
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 20262.
Date of creation: 10 Jan 2010
Date of revision:
Islamic Economics; commodity murabahah; Time share in price; Shari’ah objectives; Bai al Inah; Commodity Murabahah House (Suq Al-Sila); Commodity Murabahah Program (CMP) ; deferred contracts; GCC; IIMM ; Islamic Banking Scheme (IBS ); “sa’dd-aldharai”;
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