Wei have choseni Banks asi ouri researchi product In this producti is

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Wei have choseni Banks asi ouri researchi product. In this producti is is onei of thei Islamici financei producti as to depositi financing, liquidityi financingi and personali financing. Thosei typesi of Islamici financingi used Murabahahi and Tawarruqi as a producti in the particulari transaction. Ini Malaysia, thei operationi of Tawarruqi is supervisedi by Shariahi Committeei (SC) ini additioni to thei advicei of the whichi is thei highesti Shariah Negarai Malaysiai (BNM) cani be soughti to ensurei uniformityi in viewsi andi practices.

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iNowadays, Islamici banksi foundi the newi Islamici financei producti derived fromi Murabahahi financingi which knowni asi Tawarruq. Thei concepti ofi Tawarruqi or commodityi Murabahahi has beeni widelyi appliedi in Islamici financei (Zukri, 2009). Ini Malaysia, especiallyi fori personali financingi (Dusuki, 2007).

Tawarruqi is thei typesi of transactioni where a personi buysi a commodityi with a deferredi paymenti then sellsi it to a thirdi partyi other than the originali selleri fori an immediatei cashi price. Iti is generallyi used to describei a transactioni in which an Islamici banki sellsi a commodityi to a customeri on deferredi paymenti at costi plusi profit, andi the customeri then sellsi the commodityi on a spoti basisi to a thirdi partyi fori cashi (Zulkifli, 2009).

Thei purposei of thisi contracti is to obtaini cash immediatelyi from anotheri partyi (Zuhaily, 2007).

iNevertheless, thei validityi of the applicationi of Tawarruqi in Islamici bankingi is questionablei eitheri it is permissiblei or not. Thei existi Tawarruqi li producti beari a strikingi resemblancei to interesti basedi product., Meccaii concepti, ori i ini Islamici law. Somei scholarsi prohibiti the applicationi of Tawarruqi becausei of somei factors:

I. Illahi ofi Ribai

Ibni Taymiyyahi from Hanbalii Schooli and hisi student, chosei to Tawarruq. "i.e. Ibni Taymiyyahi i Tawarruq, andi him to it, buti prohibitedi Tawarruq. iFurthe rmore, hei that thei isi ini Tawarruq. iHow ever, Tawarruqi is thani Riba, becausei Tawarruqi a andi lossesi (Wahbah Al-Zuhaili, 2018). Therei is ai Tawarruq. Thei fromi Umar, thati hei Tawarruqi and said, "Tawarruqi is thei origini ofi Riba". Hei meansi that Tawarruqi that i toi lending i withi interest, practicedi ini, suchi Ribai al-Nasiah.

II. Tawarruqi transactioni samei with Inahi whichi wasi prohibitedi byi manyi scholarsi

"Az-zuhdi" "ithe Propheti Muhammadi, "Ifi peoplei practicei Inah, theni theyi followi the tailsi of cowsi and leavei jihadi in the wayi of Allahi and Allahi willi punishi themi and noti forgivei themi until theyi comei backi to theiri religion."

III. Thei objectivesi of purchasei and sellingi doesi not occuri in Tawarruqi

recognisedi objectivesi and noti with recognisedi. Thei Muhammadi, "Thei rewardi of deedsi dependsi upon the intentionsi and everyi personi will geti the rewardi accordingi to whati he hasi intended."

IV. Mafasidi overwhelmi Masalihi

Somei scholarsi forbidi Tawarruq becausei of mafasidi overwhelmi masalih. Thei Amongi thei harmfuli effecti arei i ini thei, and iti leads, throughi, toi (Mohammad Nejatullah Siddiqi, 2007). Iti is thei causei for Tawarruqi to be impermissiblei in Islamici bankingi system.

However, ini myi opinion, Ii thinki thati Tawarruqi is permissiblei to be practicedi in Islamici banking. Thisi isi because:

I. Tawarruqi is a typei of salesi

Tawarruqi is definedi as i the selleri in orderi to obtaini cash. Iti is generallyi acceptablei by referringi to versesi in Al-Qurani wheni, "Allahi has allowedi tradei and hasi prohibitedi Riba" (2:275). Ini addition, i (Al-Qaradawi, 2018). Iti denotesi is the.

II. Mutuali consenti betweeni the partiesi

Everyi agreementi made betweeni the partiesi is legallyi permissiblei in Islami where if bothi partiesi agreedi and havei mutuali consenti towardi their agreementi ori transaction. Thisi principlei was laidi downi ini Al-Quran: "Oi you whoi believe! Doi not squanderi your wealthi amongi yourselvesi ini vanity, excepti it be ai tradei by mutuali consent" (Ani Nisa' 4:29). iThus, thei free agreementi is onei of the conditionsi which renderi tawarruq transactioni validi in Islamici pointi of viewi especiallyi in debti transaction. Ini the casei studyi of HLISB, iCM Flexi Property Financing-I isi based on mutuali consenti betweeni the customeri and thei bank.

III. Noi harmfuli effecti

Byi referringi to versesi ini Hadith wherei Propheti Muhammadi says, "anythingi thati isi harmful, iti isi haram". Iti wasi narratedi that Ibni Mas'udi rulesi that therei was no harmi in declaredi lumpi sumi or percentagei profiti margins. Ini thisi regard, thei costi in Tawarruq isi determined andi thusi permitted.

IV. Tawarruq isi differenti from Inahi

Inahi is prohibitedi becausei the personi. iTherefore, accordingi to the fouri schoolsi ofi thought, iMaliki, iHambali and iShaif'I seei the differencesi betweeni Inahi andi Tawarruq, wherei as somei of Hanafii schooli of thoughti namei Tawarruqi asi Inah, buti the majorityi of themi -Hammam Inahi is to the orginali seller. To thei market, and permissiblei anyi detestation. iObviously, whichi the thei firsti partyi at certaini price, andi the who buysi the commodityi at a andi oni payment. Oni thei contrary, consistsi of. Thei firsti partyi buysi the commodityi fromi, andi it to thei whoi is noti firsti seller. Thisi differentiation, Maliki's who arei very stricti regardingi with thei issuei ofi Bay' the in Tawarruq. Toi them, purchasei. Iti is supportedi alsoi byi Hambalii and Shaf'Ii juristsi who generallyi allowi Tawarruq (Shochrul Rohmatul Ajija, 2018).

V. Noi elementi of Ribai

Allahi said, "Oi youi whoi believe! Doi noti squanderi your wealthi amongi yourselvesi ini vanity, excepti it bei a tradei byi mutuali consent" (Ani Nisa' 4:29). Thisi showsi thati it isi to the propertyi of by ways, noti withi thei Shariah. Murabahahi transactioni is not basedi on Ribai becausei the profiti margini is agreedi by bothi partiesi and therei is noi otheri hiddeni paymenti chargedi by the selleri to the purchaseri (Financial Islam, 2018). Tawarruqi is likei purchaseri at a throughi debt, andi the at a to the at the samei price, to makei the fromi the otheri price. Thisi of is because therei Riba. Ini the of payment, twoi havei beeni to thei for of Islamici activities, i.e. ta'widigharamah. Ta'widi refers to a for arisingi from actuali lossi by the due to thei in of or by thei customer. Gharamahi refersi to the imposedi for a in or settlement, withouti the to provei the suffered. BNMi that ta'widi is to be on the afteri the date, gharamahi is to be buti has to bei toi charityi (Bank Negara Malaysia, 2018). Thei of this mechanismi is to the harmi suffered, iand ati time, on the to i to the stipulatedi scheldule. Besidesi that, ofi resolvedi that the penaltyi for defaulti paymenti eitheri has to be or iti is wherei it is classifiedi as (Al-Quran, chapter Ali Imran, verse 130). Ini the casei studyi ofi HLISB, 1% p.a. ta'widi chargedi for defaulti paymenti duringi the facilityi tenurei is agreedi upfronti by thei parties.

VI. Tawarruqi as to avoidi usuryi withouti Hilahi

Thei Tawarruq basedi on thei of (M. Muhsin Khan, 2009), whoi has beeni to the Tawarruqi transaction, oni the wheni a fromi Khaybari to the Muhammad, of thei quality. Thei i him, "Arei all the from of quality" andi answered, "No, Ii havei i two of low datesi for onei ofi quality." Oni thei answer, thei Muhammadi this, andi he selli his fori cash, toi money, theni to of a qualityi (Hosen and Narawi, 2012). Thei the legali imethodi usury, withouti the of Hilahi or of nature, conditionsi had been and therei no usuryi tradei transaction. Ibni saidi with regardi to ofi Tawarruq, iti is andi the is thati it isi permissible, of thei of thei evidencei and becausei it and enablesi to meeti needs. Asi who it to thei onei fromi he boughti it, thisi is noti this isi a transaction, whichi Innah. Thisi is becausei it is a at gettingi the on Ribai (Abdur Rahman Yusri Ahmad, 2018). iThus, thisi the of tradingi transactions, the intenti and usingi a is and may be out, ori practice, asi from usuryii ori implicitly. Ini otheri words, thei Tawarruqi transactioni is and is wheni it is indeedi required.

VII. Permissibilityi of Tawarruqi has beeni recognizedi by manyi Islamici organizationsi

ORGANIZATION RULINGS

Islamici Academy, membershipi consisti of assembledi in thei 15th of the i of thei Islamici Conferencei Issuedi a resolutioni supportingi Tawarruq, oni onei condition, thati purchaser, ori Mutawarriq, doesi noti the itemi he hasi boughti to the at a loweri price, eitheri ori indirectly. Ifi or this is noti adherei to, thei Tawarruqi transactioni is categorizedi asi usurious, whichi isi (Hosen and Narawi, 2012).

Islamici Judiciali Assembly, ai branchi of thei Worldi Muslimi Leaguei duringi its Conferencei ofi Rajab, 1419Hi Decidei the permissibilityi ofi Tawarruq (Zulkifli Hasan, 2000)

and Accountingi i for Organization Islamici Auditingi Financei (AAOIFI) Issuedi Shariah standardi applicationi i on Standardi No. 3. Thei procedurei is when. Firsti contracti involvesi the purchasingi of whichi calli as i ori Musawamah. to thirdi partyi which wasi statedi in Standardi No. 30(2) (David Eisenberg, 2012).

Fatwasi Permanenti Committeei for Scientifici Researchi Thei (Abdurrahma, 2018).

SACi of BNMi in itsi meetingi 51st on iheld 28th Julyi 2005i standardi agreementi fori Tawarruqi depositi accountsi also was launchedi betweeni banksi and corporatei which aimi to removei the barrieri to thei sector'si growthi (Bank Negara Malaysia, 2018).

Ini conclusion, Tawarruqi transactioni practicei by Islamici banksi is accordingi to Shariahi guidelines. Thisi isi becausei Tawarruq is a typei of salesi with noi harmfuli effect. Iti is a contracti formedi under mutuali consenti betweeni the partiesi and to avoidi usuryi withouti Hilah. Tawarruqi transactioni is noti basedi on Ribai becausei the profiti margini is agreedi by bothi partiesi and therei is no otheri hiddeni paymenti chargedi by the selleri to thei purchaser. Eveni thoughi therei are differenti viewsi and standsi towardsi the legalityi of Tawarruqi but the Fatwasi from AAOIFI confirmedi that the productsi are permiti to be usedi in currenti practice. Tawarruqi hasi been widelyi used ini Saudii Arabia, GCCi (Corporationi (Habib Ahmed, 2018). Thei i loani (Shinsuke, 2018).

Recommendation:

Ini regardi withi the prohibitioni of Tawarruqi by some Muslimi scholarsi or juristsi such asi Taymiyyah, Alqiyyni and Allasani, iconversely, somei of Muslimi juristsi agreei to the implementationi ofi Tawarruq. Basedi on the permissibilityi ofi Tawarruq, Islamici banksi use it asi friendlyi producti to theiri customeri to facilitatei in obtainingi the cashi againsti a higheri valuei of cashi on deferredi paymenti basisi by adoptingi a seriesi of purchasei and salesi contracts. Therei arei manyi Tawarruq productsi offeredi by differenti Islamici banksi in thei market. Ini orderi fori to be morei competitivei in thei market, I wouldi recommendi HLISB to introducei twoi toolsi or softwarei that wouldi allowi peoplei to increasei theiri incomei viai Tawarruq withi knowledgei beforei consideringi a certaini producti toi buy.

Thei firsti tooli is titledi "Equationi discoveryi for financiali forecasting", whichi givesi the consumeri an ideai of the pricei historyi of eachi product, andi a closei estimatei expectationi of tomorrow'si pricei for alli products, andi informi the customeri which producti has the potentiallyi obtainingi the highesti profit. Wheni peoplei do not knowi enoughi abouti thesei products, theyi arei abouti to buyi and justi randomlyi or dependi on onei of thei employees'i suggestion, theyi willi definitelyi losei and thisi is whati happensi (Razen Baker, 2011).

Thei secondi tooli is ai multi-agenti basedi smarti e-Marketi system. Thei e-marketi systemi allows the banki to buyi the commodityi at marketi thicknessi (i.e. iabundance), the clienti and transferi ownershipi usingi the Shariahi complianti Murabahai instrument. Thei clienti then sellsi thei commodity, iwhich hei owns, directlyi to a thirdi partyi for cashi usingi the smarti e-Marketi bidingi and askingi protocolsi and the pre-familiarisedi withi exchangei auctioni mechanisms. Ini fact, thei smarti e-Marketi guaranteesi marketi participantsi are fairlyi informedi about the specifici detailsi of tradedi commodities, andi the appliedi biddingi and clearingi conditionsi andi rules. iAlso, thei deliveryi must be immediatei in the formi of officiali transferi of commodityi ownershipi (i.e. formali digitali certificate). Thei banki is thei insuringi partyi beingi the e-Marketi administratori thati guarantees: (1) thei reliabilityi of the registeredi clientsi andi the itraders; (2) thei implementationi of tradedi transactions; (3) ithe formali implementationi of the officiali transferi of iownership; iand (4) thei trustedi flowi of cashi betweeni buyersi andi sellers. Suchi formali practicesi would makei CM Flexi Property Financing-I morei competitivei and increasei the e-Marketi thicknessi with the growingi numberi ofi commodities, tradersi and potentiali clientsi (Wafa Ghonaim, 2017).

Withi thesei newi tools, CMi Flexii Property Financing-I willi be morei competitivei as comparedi to otheri Tawarruqi products. Thisi is becausei thesei improvementsi makei CM Flexi Property Financing-I morei suitablei for thosei who agreei on Tawarruqi and alsoi thosei who prohibiti it. Somei of thei Shariah scholarsi may claimi that thesei toolsi over timei wouldi eliminatei their rolei in Islamici banks. iHowever, thesei toolsi wouldi only worki for Tawarruqi and to savei timei fori both, thei loaneri and thei retailer. Thei Shariah committeesi would continuei to supervisei this processi and anyi other transactionsi happeningi ini thei bank.