Shariah Rooting of Financial Engineering and Evaluation of some of its Applied Models

• Main Author: Saleh, Abdulmajid Obaid Hasan
• Format: Conference or Workshop Item
• Language: English; English
• Published: 2021
• Subjects: BPH Islamic Economics
• Online Access: http://irep.iium.edu.my/90198/1/ABDULMAJI%CC%87D.pdf; http://irep.iium.edu.my/90198/2/confernce-ppp.pdf; http://irep.iium.edu.my/90198/; https://karcief.karatay.edu.tr/

Financial markets have proceeded in two stages; the first stage, commercial banks then joined money markets. The entry of intermediaries into the contractual process imposing some new and varied contracts, this development was accompanied by some violations of Islamic law such as simulated contracts. In what has recently been dubbed "financial engineering," this study identifies the most serious issues with these contracts and clarifies their Shariah structure by describing the most relevant Shariah regulations governing contracts formation and renewal in Islamic jurisprudence. The descriptive and analytical approach has been used. The research came to a conclusion with an explanation of the most significant characteristics of financial products as well as an assessment of several practical models. The current study indicates that, Islamic financial institutions today need a diverse (portfolio) of financial instruments and products to enable them to respond to the numerous demands placed by economic reality. This approach is Proportional to the study of contracts and composition evolution.