Shariah Investment Agreement

Syed Adam Alhabshi; Abbas Mirakhor; Haji Mohd. Na’im Haji Mokhtar; Syed Othman Alhabshi

Syed Adam Alhabshi , Abbas Mirakhor , Haji Mohd. Na’im Haji Mokhtar and Syed Othman Alhabshi

Shariah Investment Agreement

The Legal Tool for Risk-Sharing in Islamic Finance

In: De Gruyter Studies in Islamic Economics, Finance and Business, 6

De Gruyter Oldenbourg | 2021

https://doi.org/10.1515/9783110562750

Overview
Contents

About this book

Risk-sharing investment is currently the buzz word in Islamic finance. However, there is an incongruence in applying multilayered and opaque Tijarah contracts for investment purposes. This has contributed to the divergence between Shariah and Common Law and caused tremendous problems and systemic legal risks to Islamic finance.

The authors of Shariah Investment Agreement introduce a legal tool in the form of a Shariah Investment Agreement carefully drafted to ensure that it is Shariah-compliant and can be applied in Common Law jurisdictions as well, so as to allow for the execution of risk-sharing investment in Islamic finance. It details the building blocks and key considerations that must be noted when drafting such agreements so the investor and investee will know what to expect when entering into such a contract.

Proper implementation of the Shariah Investment Agreement will pave a clear route to a harmonious convergence between Shariah and Common Law and lead to Islamic finance developing further to become a stronger, unstoppable force in the finance industry.

Explains concept of risk-sharing investment under Shariah and Common Law
Details the building blocks and key considerations when drafting Shariah Investment Agreements
Case studies and step-by-step guides on drafting of Shariah contracts

Author information

Syed Adam Alhabshi, Shook Lin & Bok, Kuala Lumpur; Abbas Mirakhor, retired Professor of Economics and Finance, USA; et al.

Frontmatter Free access PDF PDF	I
Acknowledgements Free access PDF PDF	VII
Foreword Free access PDF PDF	IX
Contents Free access PDF PDF	XI
Chapter 1 Introduction Access restricted Content is available PDF PDF	1
Chapter 2 The Shariah: Refining Bay’ and How It Can Be Applied Access restricted Content is available PDF PDF	9
Chapter 3 The Common Law: Its Background and Applicability to Bay’ Access restricted Content is available PDF PDF	35
Chapter 4 The Shariah Investment Agreement: A Solution to Islamic Investment Access restricted Content is available PDF PDF	64
Chapter 5 Policy Recommendations and Future Research Access restricted Content is available PDF PDF	107
Chapter 6 Conclusion Access restricted Content is available PDF PDF	111
Appendix A Key Quranic Ayahs and Translation Access restricted Content is available PDF PDF	113
Appendix B Commodity Murabahah Case Study Access restricted Content is available PDF PDF	117
Appendix C Comparative Analysis of Musharakah by Bank Negara Malaysia and AAOIFI Access restricted Content is available PDF PDF	121
Appendix D Case Study: Shariah-Compliant Securities as Determined by the SAC of SC (as at 2016) Access restricted Content is available PDF PDF	161
References Access restricted Content is available PDF PDF	165
List of Abbreviations Access restricted Content is available PDF PDF	171
List of Cases Access restricted Content is available PDF PDF	173
List of Legislations Access restricted Content is available PDF PDF	175
About the Authors Access restricted Content is available PDF PDF	177
Index Access restricted Content is available PDF PDF	179

(Deutsch)

Shariah Investment Agreement

The Legal Tool for Risk-Sharing in Islamic Finance

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