Sales Contract of Commodity Murabahah Via Tawarruq Arrangemet in Supporting Maqasid of Shariah in Economy

Abstract

Commodity Murabahah contract via Tawarruq arrangement is a replacement of debatable contract of Bay al ‘Inah where the later involving only to two parties, to which involving the third party in order to obtain cash. Commodity Murabahah via Tawarruq arrangement also play important role in supporting the financial and economic activities in Malaysia for depository purposes such as Term Deposit-i thus it generate economic activities and promoting the growth of related commodity. On the other hand, the financing product such as Term Financing-i from Islamic financial institutions is example of fund application or utilization from the Islamic Bank. This product offered to retail customers for their personal need and usage. The cash facility will support the business expansion of Small Medium Enterprise (SME) or small business owner, and grow their business which later will contributing to increase of Zakat’s collection. By offering the Islamic Finance Product, not only it obliges in obeying Allah’s instruction in avoiding riba’ (usury), the applicant also may use for the purpose of better standard of living, improving financial status and avoiding illegal loan shark. Thus, this practice also accordance to the objective of Maqasid Shariah in protecting
the life, as well as protecting the wealth.
*was a post graduate (master) from University of Technology Malaysia (UTM)
**is a senior lecturer at Azman Hashim International Business School, UTM