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on Islamic Finance |
| By: | Abdul Rahim, Mohamad Syafiqe |
| Abstract: | The Malaysia Islamic banking market has expanded rapidly and it continues to embrace innovative structure, as underlined by the launch of Islamic banking products using various Shariah concepts. One of the most popular Shariah concept used by Islamic Banks across all market segment in Malaysia is Tawarruq (Commodity Murabahah). In recent years, Centre Bank of Malaysia has been issuing various Shariah resolutions and Shariah related policies to be complied by Islamic banks. Whilst this initiative is praiseworthy in strengthening and standardising the Shariah compliance culture, there are several issues which may impact the operational aspect of a bank. This paper will focus to discuss on the Shariah and operational concerns in Tawarruq based deposit product where the analysis will focus on the issue of prohibition of Bai` Wa Salaf. In addition, this paper will also provide some example of financial structures which already in Malaysia market as case study and reference. This article is based on qualitative research approach which is purely based on primary data gathered through library research and interview. |
| Keywords: | Bai` Wa Salaf, Tawarruq, Deposit Product, Islamic Banking, Shariah |
| JEL: | G00 G20 G21 |
| Date: | 2025–01–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123099 |
| By: | Abdul Rahim, Mohamad Syafiqe |
| Abstract: | In current Islamic banking products particularly in financing facility, the purpose of financing could be for asset acquisition or to obtain cash. In addition, financing may be given on secured or clean basis. For financing with secured asset, normally the value of security asset will match the financing amount whereas for unsecured facility, the underlying asset is merely to facilitate the transaction in which the value may not match the financing amount. In other words, the contracting parties may enter into transaction using an asset in which the price may be higher or lower than the actual market value. Such arrangement may lead to the issue on the permissibility to transact asset at different price than the actual cost or market value. This paper discusses on the Shariah and operational concerns in relation to possible benchmark on underlying asset value for Islamic banking transaction. This article is based on qualitative research approach which is purely based on primary data gathered through library research and observation from practitioner perspective. The outcome from the literature review can be applied as the possible asset value benchmark. |
| Keywords: | Benchmark, Underlying Asset Value, Islamic Banking product, Shariah |
| JEL: | G12 G2 |
| Date: | 2025–01–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123098 |
| By: | Abdul Rahim, Mohamad Syafiqe |
| Abstract: | One of the essential conditions to conclude al-Rahn (pledge) contract is to ensure that the pledged asset (Mal al-Marhun) is available during contract execution. The absence of this aspect may trigger the issue of Gharar (uncertainty) which would affect the validity of al-Rahn contract. This paper will look into the application of al-Rahn contract under debenture structure where the asset used as security for the debenture may include future asset which shall only be determined during crystallisation stage. The analysis will focus on the concept of Gharar and whether the issue of non existence of pledged asset may tantamount to element of excessive Gharar which is prohibited under Islamic commercial law (Fiqh al-Muamalah). |
| Keywords: | Rahn, Debenture, Future Asset, Gharar, Shariah |
| JEL: | G02 K0 |
| Date: | 2025–01–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123046 |
| By: | International Monetary Fund |
| Abstract: | The paper examines domestic revenue mobilization in Mauritania and proposes strategies to enhance tax revenue collection to address fiscal sustainability challenges and finance critical investment projects. Despite recent progress, Mauritania’s tax-to-GDP ratio remains below that of its peers, constrained by a complex legal framework, numerous derogatory tax regimes, and inefficiencies in revenue administration. The analysis indicates that Mauritania could increase tax revenues by up to 3.4% of GDP in the medium term, thus reducing its tax gap by one-third. Key policy recommendations include reducing VAT exemptions, replacing corporate tax exemptions with cost-based incentives, reforming the personal income tax system, broadening the consumption tax base, simplifying tax procedures, managing tax arrears more effectively, and strengthening tax compliance. |
| Date: | 2024–12–20 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfscr:2024/369 |
| By: | International Monetary Fund |
| Abstract: | 2024 Selected Issues |
| Date: | 2025–01–22 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfscr:2025/014 |