Sharia Compatible Futures مستقبليات مقترحة متوافقة مع الشريعة

Abdul Rahim Al-Saati ()
Additional contact information
Abdul Rahim Al-Saati: Economics Department, King Abdulaziz University, Jeddah – Saudi Arabia

Journal of King Abdulaziz University: Islamic Economics, 2003, vol. 15, issue 1, 3-25

Abstract: A Sharia Compatible Future (SCF) is a contract that is designed to achieve the objectives of the conventional futures contract and to be in conformity with Islamic transaction restrictions, which means that the essence as well as the object of the contract must satisfy the Sharia code. This implies the prohibition of interest futures. Currency futures must obsrve the Islamic restrictons of currency transactions, and the institutional setting must enforce the Islamic ethics and must devise a means to prevent gambling in the Islamic restrictions of currency transactions, and the institutional setting must enforce the Islamic ethics and must devise a means to prevent gambling in the Islamic futures market. A future is one type of derivatives used to manage risk. It is a very efficient instrument to hedge risks and is used by businesses as well as financial institutions to bring their exposure to risk to an acceptable level. In this article, Sharia compatible futures are developed. The economic functions of futures and the rationale for hedging are discussed. Islamic literature on futures and the sharia position with regard to hedging are analysed. Sharia compatible futures are then suggested. مستقبليات حسب الشريعة ( م ح ش ) هي عقود مصممة لبلوغ أهداف المستقبليات التقليدية ، ومتوافقة مع التعاليم الإسلامية ، من حيث جوهرها وموضوعها . وهذا يتضمن تحريم الربا فيها . كما يتضمن أن تكون مستقبليات العملات وفق قواعد مبادلات العملة في الإسلام ، وأن يكون الوضع المؤسسي معززاً للقيم الإسلامية ، ومبتكرا لوسيلة لا قمار فيها في سوق المستقبليات الإسلامية.

Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://iei.kau.edu.sa/Files/121/Files/153887_IEI-VOL-15-06E-AlSaati.pdf (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:abd:kauiea:v:15:y:2003:i:1:no:1:p:3-25

DOI: 10.4197/islec.15-1.1

Access Statistics for this article

More articles in Journal of King Abdulaziz University: Islamic Economics from King Abdulaziz University, Islamic Economics Institute. Contact information at EDIRC.
Bibliographic data for series maintained by King Abdulaziz University, Islamic Economics Institute. ().