Publication:
Some issues of bay' al-'inah in Malaysian Islamic financial markets
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Date
2001
SDG:
Abstract
The contract of bay' al-'inah normally involves a sale of an asset or property by a first party to a second party for immediate or spot payment followed by an immediate sale of the same asset by the second party to the first party for a higher amount on deferred payments. The asset is by no means useful to both parties either for consumption purposes or derivation of usufruct (manfaah). Apparently this device is used to bypass the Quranic prohibition of interest as riba since the main objective of the contract involvess two consenting parties both of whom are willing to pay and receive a contractual rate of return on a loan.
Keywords
Bay'al-'inah , Malaysia , Islamic finance
Citation
Rosly, Saiful Azhar & Sanusi, Mahmood. (2001). Some issues of bay' al-'inah in Malaysian Islamic financial markets. Arab Law Quarterly, 16 (3), pp. 263-280.
Publisher
Brill