Selective Shariah issues in Islamic banking and finance

• Main Authors: Hassan, Rusni, Harun, Hafiza, Shmsuddin, Muhammad Hafiz, Syed Mohamad Nasir, Syed Muhammad
• Format: Book
• Language: English
• Published: Malaha PLT, IIUM, Export-Import Bank of Malaysia Berhad 2024
• Subjects: BPH72 Economic development. Growth. Sustainable development. Sustainability; BPK Islamic law. Shari'ah. Fiqh; HG Finance; HG3368 Islamic Banking and Finance
• Online Access: http://irep.iium.edu.my/112041/3/112041_Selective%20Shariah%20issues%20in%20Islamic%20banking.pdf; http://irep.iium.edu.my/112041/

There are opportunities for research on Shariacompliant contracts related to the development of Islamic banking and finance, particularly in Malaysia. One of the applicable Shariah contracts that is relatively new in Islamic banking is Aqad Taurid. Aqad Taurid can be an independent Aqad that does not have to follow the rules of other Aqad. This Aqad is not prohibited under Shariah law, provided that it does not violate any Shariah requirements. However, the Aqad Taurid must follow the rules of the Aqad applied during the process of Aqad Taurid, such as Aqad Istisna and Aqad Salam. Aqad Taurid has the potential to be developed and applied under various Islamic banking facilities, particularly in the trade finance facility. Aqad Taurid could promote efficiency and speed, as the customer only needs to enter into the contract at the beginning of the Aqad. The sales price will be paid only after the expiration of the delivery period. Aqad Taurid is considered relatively new and has not been practiced by any Islamic Financial Institution (IFI) before in Malaysia. We expect more innovations in Islamic finance using Aqad Taurid in the near future.