Tradable Inventory Certificates A Proposed New Liquidity Instrument

Monzer Kahf () and Mahah Mujeeb Khan
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Monzer Kahf: Professor of Islamic finance at Qatar Faculty of Islamic Studies, Doha, Qatar, Postal: Qatar Faculty of Islamic Studies, Doha, Qatar, http://monzer.kahf.com
Mahah Mujeeb Khan: MSc. Islamic Finance graduate of Qatar Faculty of Islamic Studies, Doha, Qata, Postal: Qatar Faculty of Islamic Studies, Doha, Qata

Islamic Economic Studies, 2015, vol. 23-1, 1-31

Abstract: The paper proposes inventory certificates, a new Islamic financial instrument based on inventory of big corporations to be financed and owned by investors. This instrument uses murābaḥah as the underlying contract and accommodates collateral and guaranteed return. It may be issued for short to medium terms. It has a potential important contribution to solving the problems of working capital finance faced by Islamic business institutions in general and liquidity management of Islamic banks in particular. It will also address the dearth of short term investment tools in the Islamic financial markets, providing an instrument which characterized of having stable and low risk returns.

Keywords: Central Banking Product; Short Term Financial Product (search for similar items in EconPapers)
Date: 2015
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