Islamic Financial Product Development in the Context of Education and Health

Amadou Thierno Diallo () and Ahmet Suayb Gundogdu ()
Additional contact information
Amadou Thierno Diallo: Islamic Development Bank
Ahmet Suayb Gundogdu: Islamic Development Bank

Chapter 8 in Sustainable Development and Infrastructure, 2021, pp 129-144 from Palgrave Macmillan

Abstract: Abstract Ignoring Maqasid Al Shariah in product development is expected to emerge as an issue in Shariah compliance and/or risk management in financing schemes. For financing services, unlike merchandise trade finance, the very existence of the conflict with Maqasid Al Shariah, precipitates the Shariah-compliance issue. Health and education services should be provided through Waqf, and the financing of such services should be avoided. Murabaha contracts, unlike in merchandise trade, do not pave the way, neither does non-Shariah compliant organized Tawarruq, aka commodity Murabaha. Murabaha is the most commonly used tool of Islamic finance. Since Islamic finance should mimic the real economy, prevalence of Murabaha is expected and it is commendable. However, there are still misunderstandings related to different functions of Islamic tools such as Murabaha versus Waqf.

Keywords: Tawarruq; Trade in services; Maqasid Al Shariah; Murabaha; Charter schools; Private hospitals (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:psibcp:978-3-030-67094-8_8

Ordering information: This item can be ordered from
http://www.palgrave.com/9783030670948

DOI: 10.1007/978-3-030-67094-8_8

Access Statistics for this chapter

More chapters in Palgrave Studies in Islamic Banking, Finance and Economics from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().