The paper is a critical examination of the recent judicial and regulatory developments in Malaysia which saw the transition of absolution (ibra') from a discretionary power of the creditor to a mandatory rebate governed by the Central Bank's regulations. It compares and contrasts the Malaysian Regulations on ibra' with the resolutions issued by the Council of the Islamic Fiqh Academy and offers a critical evaluation of juristic opinions on ibra' and da' wata'jjal. The jurisprudential methods of analogy (qiyas) and juristic preference (istihsan) are employed to examine the application of ibra' to long-term home financing contracts. The paper argues that claiming full credit price upon termination of contract due to early settlement or default is not fair to the customers of Islamic banks. The paper concludes that a mandatory ibra' provided by the regulatory authorities such as central banks is different from the controversial conditional ibra' stipulated by the contracting parties.

The book presents a study of the theoretical foundations for Islamic transactions. It provides the reader with a solid background which is essential for a comprehensive knowledge Islamic transactions, banking and finance. The main discussion include the sources for Islamic commercial and financial laws, the objectives of Sharia'ah with regard to commercial and financial transactions, property and its classifications and their implications for transactions, rights and financial rights, ownership and its types, the theory of contract, the pillars of contract, its classifications, and its options. The last chapter discusses factors that invalidate transactions such as usury/interest (riba), ambiguity (gharar), gambling (maysir), and the involvement of prohibited properties. The book is as important text note only for the students but also for all those who work in Islamic banks and financial institutions.

This book combines the theory and practice of Islamic commercial law in an English-language text. From the experts at the International Islamic University Malaysia, the book examines the source materials in the Qur'an and Hadith, and highlights the views and positions of leading schools of Islamic law, without burying the reader in juristic minutia. It combines theory with practice to address the needs of students while providing a pragmatic treatment of Islamic contracts. It provides diagrams for individual contracts to reveal the type and nature of the contractual relationships between parties and discusses all types of fundamental transactions, including sales, loans, debt transfers, partnerships, and more.

Sharikah literally means the mixing of two properties, so that they cannot be distinguished from each other. It also means sharing and participation. It refers to a property that belongs to several owners or co-proprietors in common, in such a way that each one had ownershio of every smallest part of it in proportion to the shares allotted to them.

The Arabic word for sale is bay'. Bay' literally means exchange, and applies to both sale and purchase. Technically, sale refers to an exchange of one property for another, one of which is called the subject-matter/ object, and the other the price. Sale can also be defined as a transfer of ownership of property for a consideration or compensation.

An executive lecture delivered regarding: 1) Islamic financial system and products - consist on the main prohibited elements; 2) investment in prohibited (haram) properties; 3) takaful.

There is growing criticism levelled against Islamic banking and financial products where industry critics argue that Islamic banks' deposit and finance products are the eaxt replicas of their conventional counterparts in substance. The difference, they contend, is only in the "form" where some English terms are replaced by Arabic ones. They contend that the gift (hibah) given by Islamic banks to their wadi'ah account holders and profit share given to the mudharabah investment account holders resemble interest which conventional banks give to their savings account holders.

Waqf is described as an act of dedicating a corpus of property or financial assets in perpetuity for the cause of Allah SWT. The ownership of the property or assets is transferred to Allah SWT, but the benefits are dedicated to the poor, sick, marginalized segments of society, or any other virtuous causes. Waqf institutions are among several instruments instituted in Islam to combat poverty and enhance societal welfare. Waqf provides the material infrastructure and creates a source of revenue for use in, among other things, social welfare enhancing activities, both at the family, community, and state levels. Corporate waqf is defined as a type of waqf where the mawq'f (waqf assets) are in the form of shares issued and managed by a corporate entity. Corporate waqf utilizes the application of waqf principles in a corporate setting. Corporate waqf is more than a charitable and philanthropic act by a business entity, but is an initiative to combine the concept of waqf and apply it to achieve business and corporate objectives. Consequently, it intends to redefine the role and function of business organizations in today's society by "giving back" and reaching out to the community. This study tries to gauge the level of awareness and willingness of State Economic Development Corporations (SEDCs) and State Islamic Religious Councils (SIRCs) to be involved in corporate waqf initiatives. The study found that, in general, the SEDCs are receptive of the idea of corporate waqf entities managing and enhancing the values of waqf assets and waqf properties; however, this must be done within the current legal framework. The study also found a lack of coordination between the SEDCs and SIRCs in making decisions on waqf related matters. It is suggested that the state government, through its departments/agencies, play a facilitative role in ensuring the efficient development of waqf assets or properties.

This paper intends to examine the methods of reasoning that are employed in Fiqh and critically discuss their adoption in Islamic economics. The paper argues that the methods used in Fiqh are mainly designed to find out whether or not a certain act is permissible or prohibited. Islamic economics, on the other hand, is a social science. Like any other social science its proper unit of analysis is the society itself. Methodologies of Fiqh and Islamic economics also differ as the former focuses on prescriptions. It prescribes what an individual should do or avoid. In contrast, Islamic economics is more concerned with describing economic phenomena. While Fiqh, especially worship (Ibadat) type, prescriptions are permanent in nature and for all individuals, economic descriptions may change from time to time and from society to another. This paper argues that the methods of reasoning for discovering the truth in fiqh and Islamic economics are not necessarily identical. While fiqh has a well developed methodology in the form of usul al-fiqh, Islamic economics in its search for finding the truth should rely on a methodology that suits its social and descriptive nature.

This paper argues that waqf does not play its historical role to support and finance religious, charitable and educational institutions in the Muslim world. It argues that the traditional way of appointing an individual as a mutawalli to manage waqf properties and the modern way of leaving the management of waqf properties in the hands of state institutions need to be revised. In particular, it examines the modern practice of appointing a government institution as a trustee (mutawalli/nazir) for the management of waqf properties. The paper contends that the practice has not contributed to the efficient management and productivity of the waqf properties. The paper subsequently concludes that educational and welfare institutions should be allowed to act as a trustee and manage the waqf properties for the benefit of the beneficiaries. This would enable these institutions to actively promote the creation of new waqf for educational and welfare purposes, provide professional support for the management of individual waqf properties and contribute to the socio-economic development of the society.

The word riba is derived from the root Arabic verb rabwun which literally means: to grow, expand, increase, inlfate, excess. The technical meaning of the word riba is 'a premium' that must be paid by the borrower to the lender along with the principal amount as a condition for the loan or for an extension in its maturity.