Publication:
The emerging Shari'ah issues of the COVID-19 pandemic in contemporary Islamic financial applications
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Date
2021
SDG:
Abstract
The outbreak of the coronavirus epidemic (COVID-19), classified by the World Health Organization as a pandemic, has led to the emergence of many challenges. It started as a health crisis and then turned into a global economic crisis that most countries could not manage or control as a result of lockdown policies and restrictions on movement and travel. This is not to mention the forms of damage that have affected the contractual obligations and rights of various contracting parties at the level of financial institutions such as banks, takaful companies and others. The challenges imposed by the coronavirus pandemic have led to a reexamination of the fiqh treatment of catastrophes. The role of Islamic economic experts and the Islamic financial industry has had to be clarified in addressing its effects on contractual relations and future obligations in distressed financing contracts. The theory of catastrophes (jawa'ih) is one of the most important jurisprudential theories in Islamic fiqh. It comprises a set of principles and provisions that deal with the harmful effects upon one of the parties bound by a contract as a result of damage to what the party is obliged to deliver, or failure to obtain the intended benefit from the obligation. It is based on achieving justice in the practical application of financial transaction contracts, removing difficulty, taking into account arising circumstances, and preventing abuse in the exercise of rights and the freedom to contract. It thus regulates the rights of people related to the exchange of properties and usufructs.
Keywords
Theory of catastrophes , Coronavirus pandemic , Theory of emergency conditions , Non-performing funds , Rescheduling , Construction and supply contracts , Funds to be cleansed
Citation
Bouheraoua, S., Djafri, F., & Mikail, S. A. (2021). The emerging Shari'ah issues of the COVID-19 pandemic in contemporary Islamic financial applications. Kuala Lumpur, Malaysia: ISRA.
Publisher
International Shari'ah Research Academy for Islamic Finance (ISRA)