Cookies Policy
X

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.

I accept this policy

Find out more here

The Negotiability of Debt in Islamic Finance: An Analytical and Critical Study

No metrics data to plot.
The attempt to load metrics for this article has failed.
The attempt to plot a graph for these metrics has failed.
The full text of this article is not currently available.

Brill’s MyBook program is exclusively available on BrillOnline Books and Journals. Students and scholars affiliated with an institution that has purchased a Brill E-Book on the BrillOnline platform automatically have access to the MyBook option for the title(s) acquired by the Library. Brill MyBook is a print-on-demand paperback copy which is sold at a favorably uniform low price.

Access this article

+ Tax (if applicable)
Add to Favorites
You must be logged in to use this functionality

The challenges posed by the non-liquidity and non-diversity of the Islamic debts market make the market an inefficient tool on contributing to Muslim economic growth. Islamic scholars and experts created sukuk as an Islamic debt instrument to avoid riba (usury), but the sukuk market (especially in the Gulf) still struggles with the prohibition of the trade of debt due to the prohibition of the two Fiqh Academies.Trading and securitizing debts should be permitted in Islamic law, with one condition, that the debt should be considered low risk. This new rule, the permissibility of trading debts, is supported by three Islamic legal bases, istishab, qiyas, and maslaha, which are recognized by all four Islamic schools of legal thought. Furthermore, permitting the trading of debts is more consistent with the principles and theories of Islamic law than is forbidding it. It is consistent with the obligations theory that debt is a personal right. It is consistent with the mal (property) theory that debt may be sold according to the three Islamic schools of legal thought, all of which consider debt as property. It is consistent with other modern Islamic financial transactions that are permitted by the two Fiqh Academies, such as tawarruq and murabaha.

Affiliations: 1: Higher Judicial InstituteAl-Imam Muhammad Ibn Saud University Riyadh mezeini@mzlawyers.com

10.1163/24056936-12340003
/content/journals/10.1163/24056936-12340003
dcterms_title,pub_keyword,dcterms_description,pub_author
10
5
Loading
Loading

Full text loading...

/content/journals/10.1163/24056936-12340003
Loading

Data & Media loading...

1. Mirakhor Abbas, Zaidi Iqbal Hassan Kabir, Lewis Mervyn"Profit-and-loss sharing contracts in Islamic finance" Handbook of Islamic Banking 2007Vol 49 Edward Elgar
2. Almousa Abdullah"The Sale of Rights in Islamic Jurisprudence" Justice J. Saudi Arabia 2010Vol 45 170
3. Alsanhouri Abdulrazzaq"Rights Sources in Islamic Jurisprudence" 1954
4. Atamech Abir"Sukuk Quarterly Bulletin" 2013 1q2013
5. Atamech Abir"Sukuk Quarterly Bulletin" 2014 4q 2013
6. Accounting & Auditing Org. for Islamic Fin. Inst."Shariah Standards No. 17" 2003 4 6
7. Al-Jadaan & Partners Law Firm at
8. Muhammad al-Saddiq, Darir al-Amin Al-Gharar in Contracts and Its Effects on Contemporary Transactions 1997 Islamic Research and Training Institute
9. Alhattab Mawahaeb Aljaleel 1992 Dar Elfekr
10. Alkasaney Badae’e Alsanae’e 1996 Dar Alhadeeth
11. Alnawaway Rawdhat Altalebeen 2003 Dar Alem Alkotob
12. Jobst Andreas A."The Economics of Islamic Finance and Securitization" Journal of Structured Finance 2007Vol 13
13. Arab Monetary Fund Contribution of the Arab Monetary Fund to The Development of Arab Capital Markets 2003
14. Arab News Oct. 7, 2013 at
15. "Arnold & Porter Team Assists Turkey with Islamic Bond Offering" LegalTimes 2012 September 26 at
16. Sabahi Babback"Islamic Financial Structures as Alternatives to International Loan Agreements: Challenges for American Financial Institutions" Bepress Leg. Ser. 2004 at
17. Grewal Baljeet Kaur"Constraints on Growth in Islamic Finance" 2011
18. "Banking Without Regulation: The Freeman: Foundation for Economic Education"
19. BAYINA Advisors"The GCC Debt Market Report" 2010
20. "Bond Ratings—Series 7" Investopedia at (last visited Jul. 3, 2014)
21. Weeramantry C. G. Islamic Jurisprudence: An International Perspective 1988Vol 32
22. Richardson Christopher F."Islamic Finance Opportunities in the Oil and Gas Sector: An Introduction to an Emerging Field" Tex. Int. l. j. 2006Vol 42 119 130
23. Richardson Christopher F."Islamic Finance Opportunities in the Oil and Gas Sector: An Introduction to an Emerging Field" Tex. Int. l. j. 2006Vol 42 119 130
24. Clifford Chance LLP Dubai International Financial Centre Sukuk Guidebook 2009 Dubai International Financial Centre
25. Zacharias Diana"Fundamentals of the Sunnī Schools of Law" Heidelberg J. of Int’L Law 2006Vol 66 491 495
26. McKenzie Duncan"Islamic Finance 2010" 2010 at
27. Ernest & Young"Islamic Funds & Investments Report" 2009
28. Ernest & Young"Rapid Growth Market" 2012
29. Mann F. A."The Legal Aspect of Money: With Special Reference to Comparative Private and Public International Law" 1982 4th ed.
30. Khan Fahim Hassan Kabir, Lewis Mervyn"Islamic methods for government borrowing and monetary management" Handbook of Islamic Banking 2007 Edward Elgar 285 295
31. Khan Fahim"Time Value of Money and Discounting in Islamic Perspective" Rev. of Islamic Econ. 1991Vol 1 33 36
32. FASB"Accounting Standards Codification"
33. Vogel Frank E., Hayes Samuel L. Islamic Law and Finance: Religion, Risk, and Return 1998 Kluwer Law International
34. Vogel Frank E. at
35. "General Knowledge of Holy Quran" at (The Quran has 6,235 Ayahs, and 77,439 words)
36. Makdisi George"The Significance of the Sunni Schools of Law in Islamic Religious History" Int’l J. of Middle East Stud. 1979Vol 10 1
37. Gurulkan Haluk Islamic Securitization a Legal Approach 2010 The Institute For Law and Finance at Johann Wolfgang Goethe University
38. Hassan Kabir, Lewis Mervyn Handbook of Islamic Banking 2007 Edward Elgar
39. Visser Hans Islamic Finance: Principles and Practice 2009 Edward Elgar Publishing
40. "HSBC seeks big growth, sukuk pickup in 2010" 2010 Feb. 15 Reuters at
41. Humayon A. Dar Hassan Kabir, Lewis Mervyn"Incentive compatability of Islamic Banking" Handbook of Islamic Banking 2007Vol 85 Edward Elgar
42. Ibn Alqayem Ealam Almowaqeen 1993 Dar Alhadeeth
43. Ibn Hazm"Almohalla"
44. Ibn Qudamah Alsharh Alkabeer 1996 DarAlhadeeth
45. Ibn Taymiah Majmo’a Al Fatawa 1994 King Fahad Center
46. Mihajat Iman"The real TAWARRUQ concept Islamic Economic Forum for Indonesian Development (ISEFID)" 2009
47. "Islamic Banking Goes Global" The Middle East 2005
48. "Islamic Banks: A Novelty No Longer" Businessweek.com 2005 Aug. 7 at
49. "Islamic finance industry to hit $5 trillion by 2016" TradeArabia News Service 2012 June 28 at
50. Islamic Finance News Halim Nazneen , et al Deals of the Year Handbook 2013 Red Money Group
51. Islamic Fiqh Academy (Jeddah)"Resolutions and Recommendations of the Council of Islamic Fiqh Academy" 2000 1st ed.
52. Islamic Fiqh Academy in Jeddah at
53. Islamic Fiqh Councel (Makkah)"Resolutions of the of Islamic Fiqh Councel Makkah" 2006
54. Woodruff Jeffery"Demystifying Corporate Sukuk" 2007
55. Lipson Jonathan C."Re: Defining Securitization" s. Cal. L. Rev. 2012Vol 85 1229 1231
56. Hassan Kabir, Lewis Mervyn Hassan Kabir, Lewis Mervyn"Islamic banking: an introduction and overview" Handbook of Islamic Banking 2007Vol 1 Edward Elgar
57. London Interbank Offered Rate (libor) Definition"Investopedia"
58. Balala Maha-Hanaan Islamic Finance and Law: Theory and Practice in a Globalized World 2011 Tauris Academic Studies (2010)
59. El-Gamal Mahmoud A. Islamic Finance: Law, Economics, and Practice 2006 Cambridge University Press
60. El-Gamal Mahmoud Overview Of Islamic Finance 2006 U.S. Department of Treasury
61. Malaysia International Islamic Financial Centre (mifc)"Sukuk Using Al-Istisna’ Structure" at (last visited Jan. 15, 2014)
62. Kamali Mohammad Hashim"Principles of Islamic Jurisprudence" 2003 3rd rev. and enlarged ed.
63. Kurdey Mohammed"Ahkam Baya Aldayn" 1992
64. Islam Mohammad"Al-Mal: The Concept of Property in Islamic Legal Thought" Arab L. Q. 1999Vol 14 361 362
65. Alamin Mohammed"Hadith Number Mohammed Alamin Articles" at
66. Obaidullah Mohammed Islamic Financial Services 2005 Scientific Publishing Centre, King Abdulaziz University
67. Obaidullah Mohammed Hassan Kabir, Lewis Mervyn"Securitization in Islam" Handbook of Islamic Banking 2007Vol 191 Edward Elgar
68. al-Bashir Muhammad, al-Amine Muhammad Global Sukūk and Islamic Securitization Market: Financial Engineering and Product Innovation 2012 Brill
69. Ayub Muhammad Understanding Islamic Finance 2007 John Wiley & Sons Ltd.
70. Us̲mānī Muḥammad Taqī An Introduction to Islamic Finance 2002 Kluwer Law International
71. Alzarqa Mustafah"Obligations Theory in Islamic Jurisprudence" 1999 1st ed.
72. Mankiw N. Gregory"Principles of Economics" 2004 3rd ed.
73. Saleh Nabil"Definition and Formation of Contract under Islamic and Arab Laws" Arab L. Q. 1990 MayVol 5 101
74. Nashawy Naser Bay Aldayn 2007 Dar Alfekr Aljame’ey
75. ncb Capital"GCC DEBT CAPITAL MARKETS An emerging opportunity?" 2009
76. Norton Rose Fulbright"AAOIFI Statement on Sukuk and its mplications" at (last visited Jan. 15, 2014)
77. Tsafrir Nurit The History of an Islamic School of Law: The Early Spread of Hanafism 2004 Harvard University Press
78. Allahim Osamah"The sale of debt and its applications in contemporary life" 2012
79. "Press Release, Al-Jadaan & Partners and Clifford Chance, llp, Al-Jadaan and Clifford Chance advise on landmark sovereign and largest ever Saudi sukuk" ameinfo.com 2012 Jan. 23 available at
80. Saadallah Ridha Hassan Kabir, Lewis Mervyn"Trade financing in Islam" Handbook of Islamic Banking 2007Vol 172 Edward Elgar
81. Royston Miles Goode & Centre for Commercial Law Studies"Payment obligations in commercial and financial transactions" 1983
82. Elfakhani Said, Zbib Imad, Ahmed Zafar Hassan Kabir, Lewis Mervyn"Marketing of Islamic financial products" Handbook of Islamic Banking 2007Vol 116 Edward Elgar
83. Alhosayyen Saleh"Islamic Banks, Pros and Cons" 2009
84. Ali Salman Syed Islamic Capital Market Products: Developments and Challenges 2005 Islamic Development Bank
85. Hakim Sam R. Hassan Kabir, Lewis Mervyn"Islamic money market instruments" Handbook of Islamic Banking 2007Vol 161 Edward Elgar
86. Hamdan Sara"Interest Rises in Islamic Bonds" N.Y. Times 2013 Feb. 27 available at
87. "Saudi Arabia: Debate continues over global sharia standards" 2013 Apr. 9 Oxford Business Group
88. Saudi Gazette"GACA sukuk issue hits sr15.21 billion, Saudi Gazette" at (last visited Apr. 9, 2014)
89. Saudi Hollandi Capital"Sukuk Market in Saudi Arabia" 2013
90. Saudi Ministry of Finance"Saudi Budget for 2014" 2013
91. TAG EL-DIN Seif I."Capital and Money Markets of Muslims: The Emerging Experience in Theory and Practice" Kyoto Bulletin of Islamic Area Studies 2007Vol 1
92. Hannan Shah Abdul USUL AL FIQH 1999Vol 6 Islamic Jurisprudence
93. Nisar Shariq"Islamic Bonds (Sukuk): Its Introduction and Application" available at
94. ʿAlwānī Ṭāhā Jābir Fayyāḍ Source Methodology in Islamic Jurisprudence: Uṣūl Al Fiqh Al Islāmī 1994 New rev. English ed.
95. Box Tamara, Asaria Mohammed"Islamic Finance Market Turns to Securitization" Int. Financ. Law Rev. 2005 JulyVol 24
96. The International Islamic Financial Market"IIFM Sukuk Report" 2013 3rd ed.
97. "The Islamic Jurisprudence Encyclopedia" 1992 2nd ed.
98. Bearman Peri J., Peters Rudolph, Vogel Frank E. The Islamic School of Law: Evolution, Devolution, and Progress 2005 Harvard University Press
99. The Muslim World League in Makkah at
100. "The rationale of prohibition of Riba, The prohibition of Maysir and Gharar, Financial Islam—Islamic Finance" at (last visited Nov. 1, 2013)
101. "The Shariah’s Board of the Accounting and Auditing Organization for Islamic Financial Institutions Standards for Islamic Banking" 2010Vol 240
102. Understand-Islam.Org 2009
103. Carney William J."Corporate Finance: Principles and Practice" 2010 2nd ed.
104. Bambale Yahaya Yunusa"An outline of Islamic jurisprudence" 2007
105. Dutton Yasin Netton Ian R. The Origins of Islamic Law: The Qurʾan, the Muwattaʾ and Madinan Amal (Culture and Civilization in the Middle East) 1999 Curzon Press
106. Mersch Yves Islamic finance—partnerships opportunities between Luxembourg and the Arab countries, Speech Before the 5th Economic Forum Belgium-Luxembourg-Arab Countries 2009 Nov. 17 Brussels
107. Iqbal Zamir"Challenges Facing Islamic Financial Industry" J. of Islamic Econ. Banking & Fin. 2007Vol 3
http://brill.metastore.ingenta.com/content/journals/10.1163/24056936-12340003
Loading

Article metrics loading...

/content/journals/10.1163/24056936-12340003
2016-12-27
2018-10-23

Sign-in

Can't access your account?
  • Tools

  • Add to Favorites
  • Printable version
  • Email this page
  • Subscribe to ToC alert
  • Get permissions
  • Recommend to your library

    You must fill out fields marked with: *

    Librarian details
    Your details
    Why are you recommending this title?
    Select reason:
     
    Brill Research Perspectives in International Banking and Securities Law — Recommend this title to your library
  • Export citations
  • Key

  • Full access
  • Open Access
  • Partial/No accessInformation