Murabahah Contract in Islamic Trade Finance Instruments in Malaysia

Islamic Trade Finance (ITF) instruments were introduced in Islamic banking system in Malaysia since the early 1990s when there is a need for Islamic instruments in commerce especially in international trade. In order to be accepted in Islamic Finance transactions, some amendments have been made so t...

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Main Authors: Abdul Rahim, Ahmad Khilmy, Ahmad Razimi, Mohd Shahril, Mohd Noor, Mohd Murshidi
Format: Conference or Workshop Item
Language:English
Published: 2016
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/31340/1/IMEC%2001%2001%202016%2001-15.pdf
https://repo.uum.edu.my/id/eprint/31340/
https://www.usim.edu.my/
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Institution: Universiti Utara Malaysia
Language: English
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spelling my.uum.repo.313402024-08-29T11:02:24Z https://repo.uum.edu.my/id/eprint/31340/ Murabahah Contract in Islamic Trade Finance Instruments in Malaysia Abdul Rahim, Ahmad Khilmy Ahmad Razimi, Mohd Shahril Mohd Noor, Mohd Murshidi HG Finance Islamic Trade Finance (ITF) instruments were introduced in Islamic banking system in Malaysia since the early 1990s when there is a need for Islamic instruments in commerce especially in international trade. In order to be accepted in Islamic Finance transactions, some amendments have been made so that it will be „shariah compliant? by applying muamalat contracts in those products. There are several muamalat Contracts applied in ITF instruments namely murabahah, wakalah, bay’ al-dayn, kafalah, tawarruq and wadi’ah. The most commonly used contract is murabahah which is applied in Letter of Credit (LC), Working Capital Financing (WC), Trust Receipt (TR) and Accepted Bills. This article analyses the application of murabahah contract in Islamic Trade Finance (ITF) instruments namely Letter of Credit (LC-i), Working Capital (WC-i), Trust Receipt (TR-i) and Accepted Bills (AB-i). This article concludes that there are several Shari?ah issues related to the application of murabahah in the facilities mentioned such as al-muwaadah, ownership and prising of the subject matter (al-ma’qud alaih) 2016 Conference or Workshop Item PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/31340/1/IMEC%2001%2001%202016%2001-15.pdf Abdul Rahim, Ahmad Khilmy and Ahmad Razimi, Mohd Shahril and Mohd Noor, Mohd Murshidi (2016) Murabahah Contract in Islamic Trade Finance Instruments in Malaysia. In: 3rd International muamalat and entrepreneurship IMEC2016, 28 - 29 September 2016, Everly Hotel, Putrajaya, Malaysia. https://www.usim.edu.my/
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Abdul Rahim, Ahmad Khilmy
Ahmad Razimi, Mohd Shahril
Mohd Noor, Mohd Murshidi
Murabahah Contract in Islamic Trade Finance Instruments in Malaysia
description Islamic Trade Finance (ITF) instruments were introduced in Islamic banking system in Malaysia since the early 1990s when there is a need for Islamic instruments in commerce especially in international trade. In order to be accepted in Islamic Finance transactions, some amendments have been made so that it will be „shariah compliant? by applying muamalat contracts in those products. There are several muamalat Contracts applied in ITF instruments namely murabahah, wakalah, bay’ al-dayn, kafalah, tawarruq and wadi’ah. The most commonly used contract is murabahah which is applied in Letter of Credit (LC), Working Capital Financing (WC), Trust Receipt (TR) and Accepted Bills. This article analyses the application of murabahah contract in Islamic Trade Finance (ITF) instruments namely Letter of Credit (LC-i), Working Capital (WC-i), Trust Receipt (TR-i) and Accepted Bills (AB-i). This article concludes that there are several Shari?ah issues related to the application of murabahah in the facilities mentioned such as al-muwaadah, ownership and prising of the subject matter (al-ma’qud alaih)
format Conference or Workshop Item
author Abdul Rahim, Ahmad Khilmy
Ahmad Razimi, Mohd Shahril
Mohd Noor, Mohd Murshidi
author_facet Abdul Rahim, Ahmad Khilmy
Ahmad Razimi, Mohd Shahril
Mohd Noor, Mohd Murshidi
author_sort Abdul Rahim, Ahmad Khilmy
title Murabahah Contract in Islamic Trade Finance Instruments in Malaysia
title_short Murabahah Contract in Islamic Trade Finance Instruments in Malaysia
title_full Murabahah Contract in Islamic Trade Finance Instruments in Malaysia
title_fullStr Murabahah Contract in Islamic Trade Finance Instruments in Malaysia
title_full_unstemmed Murabahah Contract in Islamic Trade Finance Instruments in Malaysia
title_sort murabahah contract in islamic trade finance instruments in malaysia
publishDate 2016
url https://repo.uum.edu.my/id/eprint/31340/1/IMEC%2001%2001%202016%2001-15.pdf
https://repo.uum.edu.my/id/eprint/31340/
https://www.usim.edu.my/
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