The Uses and Misuses of Commodity Murabaha: Islamic Economic Perspective

Nidal Alsayyed

MPRA Paper from University Library of Munich, Germany

Abstract: Some exciting Economical developments have taken place in the area of Islamic finance during the preceding two years. There has been a fast expansion in its market share, diversification of products picked up pace and the rapid globalization of the services ensures their future expansion. Commodity murabahah is one of the most commonly used financing contracts in Islamic banking. But of no less consequence may prove, the lurch one finds commodity murabahah in at the close of 2008 (Hasan 2009) . Commodity Murabaha is clearly the Islamic treasurer’s funding product of choice, as it is flexible enough to facilitate many structures for financing, hedging, and currency exchanging. It is time to apply the shari'ah objective of “sa’dd-aldharai” that closes the potential avenues for outwitting the shari’ah objectives and spirit .

Keywords: Islamic Economics; commodity murabahah; Time share in price; Shari’ah objectives; Bai al Inah, Commodity Murabahah House (Suq Al-Sila), Commodity Murabahah Program (CMP) , deferred contracts, GCC, IIMM , Islamic Banking Scheme (IBS ); “sa’dd-aldharai” (search for similar items in EconPapers)
JEL-codes: A12 D23 D42 Z10 (search for similar items in EconPapers)
Date: 2010-01-10
New Economics Papers: this item is included in nep-ara and nep-cwa
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/20262/1/MPRA_paper_20262.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:20262

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().