Hybrid Contracts and Issues in Islamic Finance

M. Kabir Hassan, Muhammad Mostofa Hossain () and Aishath Muneeza ()
Additional contact information
Muhammad Mostofa Hossain: University of Malaya
Aishath Muneeza: International Centre for Education in Islamic Finance (INCEIF University)

Chapter Chapter 9 in Hire Purchase Under Shirkah al-Milk (HPSM) in Islamic Banking and Finance, 2023, pp 189-200 from Springer

Abstract: Abstract The rapid growth of the IBF industry inevitably requires constant product innovation in line with Shari’ah principles to fulfil the diverse demand of its multi-facet customers, taking into consideration technological advancement, digital inclusion, and electronic accessibility. As per the changing nature of the market and the customers, the Islamic financial system cannot solely rely on the core classical financial contracts; instead, it must introduce newly devised products in order to maintain steady progress and sustainability as well as to align with market dynamics and customer preferences. Hybrid contracts are the end solution in this regard. Over the decades since IFS’s inception, it has shown the aptitude to devise many hybrid products, with some gaining wide acceptance while others stirring controversies. A hybrid contract evolves from a single contract into a versatile structure. It is grouped from several contracts or products. In the contemporary Islamic financial spectrum, there are a considerable number of hybrid products in practice in various jurisdictions. Since the HPSM, MMP, BBA, IMD, ijarah sukuk, and musharakh sukuk are hybrid products, this chapter will highlight the permissibility of a hybrid contract and its underlying issues.

Keywords: Hybrid Contract; Islamic Finance (search for similar items in EconPapers)
Date: 2023
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:spr:sprchp:978-3-031-50105-0_9

Ordering information: This item can be ordered from
http://www.springer.com/9783031501050

DOI: 10.1007/978-3-031-50105-0_9

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().