Is Malaysian Islamic home financing bay’ bithaman al-ajil (‘BBA’) compatible with Islamic law? A critical examination on the issue of ‘beneficial ownership’
Islamic Banking has been established since 1980s in Malaysia. It was initially commenced with the incorporation of Bank Islam Malaysia Berhad (BIMB) in 1983. Until today, Islamic Banking has robustly developed in Malaysia providing various kinds of Islamic transaction products including Islamic home...
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| Format: | Article |
| Language: | English |
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MCSER Publishing, Rome-Italy
2017
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| Online Access: | https://repo.uum.edu.my/id/eprint/21283/1/MJSS%208%202%202017%2027%2036.pdf |
| _version_ | 1825804530353176576 |
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| author | Md Dahlan, Nuarrual Hilal Mohd Noor, Fauziah Shuib, Mohd Sollehudin |
| author_facet | Md Dahlan, Nuarrual Hilal Mohd Noor, Fauziah Shuib, Mohd Sollehudin |
| author_sort | Md Dahlan, Nuarrual Hilal |
| collection | UUM |
| description | Islamic Banking has been established since 1980s in Malaysia. It was initially commenced with the incorporation of Bank Islam Malaysia Berhad (BIMB) in 1983. Until today, Islamic Banking has robustly developed in Malaysia providing various kinds of Islamic transaction products including Islamic home finance. Various Islamic home finance products have been introduced and practised in Malaysia. Among the products are: Bay’ Bithaman al-Ajil (BBA), Musharakah al-Mutanaqisah (MM), Commodity Murabahah and Ijarah. Nonetheless, there are many issues in these products when faced with the problems of abandoned housing projects.One of the issues is the issue of beneficial ownership in BBA.It is evident that, the application of BBA is
proven to be defective and contains many flaws, if involves abandoned housing projects in Malaysia. This paper aims to highlight this issue and provide solutions to the issues discussed.This paper used shariah (Islamic Law) doctrinal and qualitative case study research methodologies. This paper finds that the current terms in the BBA are inadequate and warranted it to be provided with equitable terms on beneficial ownership thus can fully comply with the requirements of the
shariah.The outcome of this paper will help the Islamic banking industry in dealing with issues arising from ‘beneficial ownership’ in transaction involving abandoned housing projects in Malaysia. |
| first_indexed | 2024-07-04T06:17:01Z |
| format | Article |
| id | uum-21283 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:17:01Z |
| publishDate | 2017 |
| publisher | MCSER Publishing, Rome-Italy |
| record_format | eprints |
| spelling | uum-212832017-11-27T01:58:49Z https://repo.uum.edu.my/id/eprint/21283/ Is Malaysian Islamic home financing bay’ bithaman al-ajil (‘BBA’) compatible with Islamic law? A critical examination on the issue of ‘beneficial ownership’ Md Dahlan, Nuarrual Hilal Mohd Noor, Fauziah Shuib, Mohd Sollehudin BP Islam. Bahaism. Theosophy, etc HG Finance K Law (General) Islamic Banking has been established since 1980s in Malaysia. It was initially commenced with the incorporation of Bank Islam Malaysia Berhad (BIMB) in 1983. Until today, Islamic Banking has robustly developed in Malaysia providing various kinds of Islamic transaction products including Islamic home finance. Various Islamic home finance products have been introduced and practised in Malaysia. Among the products are: Bay’ Bithaman al-Ajil (BBA), Musharakah al-Mutanaqisah (MM), Commodity Murabahah and Ijarah. Nonetheless, there are many issues in these products when faced with the problems of abandoned housing projects.One of the issues is the issue of beneficial ownership in BBA.It is evident that, the application of BBA is proven to be defective and contains many flaws, if involves abandoned housing projects in Malaysia. This paper aims to highlight this issue and provide solutions to the issues discussed.This paper used shariah (Islamic Law) doctrinal and qualitative case study research methodologies. This paper finds that the current terms in the BBA are inadequate and warranted it to be provided with equitable terms on beneficial ownership thus can fully comply with the requirements of the shariah.The outcome of this paper will help the Islamic banking industry in dealing with issues arising from ‘beneficial ownership’ in transaction involving abandoned housing projects in Malaysia. MCSER Publishing, Rome-Italy 2017 Article PeerReviewed application/pdf en cc_by https://repo.uum.edu.my/id/eprint/21283/1/MJSS%208%202%202017%2027%2036.pdf Md Dahlan, Nuarrual Hilal and Mohd Noor, Fauziah and Shuib, Mohd Sollehudin (2017) Is Malaysian Islamic home financing bay’ bithaman al-ajil (‘BBA’) compatible with Islamic law? A critical examination on the issue of ‘beneficial ownership’. Mediterranean Journal of Social Sciences, 8 (2). pp. 27-36. ISSN 2039-9340 http://www.mcser.org/journal/index.php/mjss/article/view/9857 |
| spellingShingle | BP Islam. Bahaism. Theosophy, etc HG Finance K Law (General) Md Dahlan, Nuarrual Hilal Mohd Noor, Fauziah Shuib, Mohd Sollehudin Is Malaysian Islamic home financing bay’ bithaman al-ajil (‘BBA’) compatible with Islamic law? A critical examination on the issue of ‘beneficial ownership’ |
| title | Is Malaysian Islamic home financing bay’ bithaman al-ajil (‘BBA’) compatible with Islamic law? A critical examination on the issue of ‘beneficial ownership’ |
| title_full | Is Malaysian Islamic home financing bay’ bithaman al-ajil (‘BBA’) compatible with Islamic law? A critical examination on the issue of ‘beneficial ownership’ |
| title_fullStr | Is Malaysian Islamic home financing bay’ bithaman al-ajil (‘BBA’) compatible with Islamic law? A critical examination on the issue of ‘beneficial ownership’ |
| title_full_unstemmed | Is Malaysian Islamic home financing bay’ bithaman al-ajil (‘BBA’) compatible with Islamic law? A critical examination on the issue of ‘beneficial ownership’ |
| title_short | Is Malaysian Islamic home financing bay’ bithaman al-ajil (‘BBA’) compatible with Islamic law? A critical examination on the issue of ‘beneficial ownership’ |
| title_sort | is malaysian islamic home financing bay bithaman al ajil bba compatible with islamic law a critical examination on the issue of beneficial ownership |
| topic | BP Islam. Bahaism. Theosophy, etc HG Finance K Law (General) |
| url | https://repo.uum.edu.my/id/eprint/21283/1/MJSS%208%202%202017%2027%2036.pdf |
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