An Appraisal of Al-Ijarah Al-Mawsufah Fi Al-Dhimmah (Forward Ijarah) from Fiqh Perspective

34 Pages Posted: 30 Apr 2014 Last revised: 23 Aug 2015

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Monawer

University of Malaya

Akhtarzaite Aziz

International Islamic University of Malaysia (IIUM)

Date Written: December 18, 2012

Abstract

Al-IjÉrah Al-MawÎËfah FÊ Al-Dhimmah (forward ijÉrah) is a new form of transactions introduced to the Islamic banking industry which has original ground in the classical books of Islamic Jurisprudence. Most of the classical scholars discussed it with particularized ijÉrah in parallel without any separation of chapters or headings unlike al-BahËtÊ and al-MinhÉjÊ. The scholars of four schools of Islamic Law are unanimously agreed on the legality of forward ijÉrah albeit some contemporary scholars mention the early dispute in this regard and attribute prohibition of forward ijÉrah to ×anafÊ School. This attribution is not accurate as it is proved by their many classical texts. Forward ijÉrah could be more flexible for both customers and banks to the extent that it does not become void if the stipulated usufruct damages while particularized ijÉrah becomes void because of damage of the object. Therefore, there is a need for further research in this regard in order to innovate some new tools that can improve the services of Islamic financial intuitions.

Keywords: Ijarah Mawsufah Fi Dhimmah, Legality, Dispute, Forward Ijarah, Fiqh

JEL Classification: G32

Suggested Citation

Mohammad Monawer, Abu Talib and Aziz, Akhtarzaite, An Appraisal of Al-Ijarah Al-Mawsufah Fi Al-Dhimmah (Forward Ijarah) from Fiqh Perspective (December 18, 2012). Available at SSRN: https://ssrn.com/abstract=2430597 or http://dx.doi.org/10.2139/ssrn.2430597

Abu Talib Mohammad Monawer (Contact Author)

University of Malaya ( email )

Kuala Lumpur, 50603
Malaysia

HOME PAGE: http://works.bepress.com/monawer

Akhtarzaite Aziz

International Islamic University of Malaysia (IIUM) ( email )

P.O. Box 10
Jalan Gombak
Selangor, 50728
Malaysia

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