Journal of King Abdulaziz University: Islamic Economics

Theoretical Trends of Islamic Banking: Critical Reading

2024-02-12T11:54:00+00:00

Moving away from usurious lending, in which the borrower bears the risk of the loan,
to almudaraba and participation, in which the two parties to the contract share its profits and
losses, was the title of the emerging Islamic banking, where its project and its contracting system
were prepared through individual initiatives. However, as soon as Islamic banks were
established, professional considerations began to dominate the leadership of banking practice,
specifically in the field of risk management. It led to a decisive transformation that would bring
Islamic banks back into the Indebtedness system but through financing sales. Just as this
transformation had its supporters, it also had opponents who saw in it a departure from the
established theoretical path. The matter was decided in the fatwa institutions in favor of the new
transformation, as they noted that the Murabaha sale to the person ordering the purchase
provides the requested level of security for the Islamic banks, but the matter did not stop there, as
some banks quickly prepared a contractual system that allows them to afford liquidity for
customers, as traditional banks do. This paper aims to monitor the main trends in thought parallel
to banking practice and to estimate the doctrinal frameworks and mechanisms by which funds
are supplied to Islamic banks from the audience of financiers, and the frameworks and
mechanisms by which these funds are invested with the relevant parties. Its approach to this is
the critical extrapolation of jurisprudential consideration evolution and banking thought regarding banking practice over half a century. The research proposes a theoretical review that
could establish new corrective paths.

The Term 'Marketing' in the Islamic Jurisprudential Heritage and Its Impact on Controlling the Legality of Marketing Practices

2024-01-16T08:13:51+00:00

This study explores the concept of marketing within the context of Islamic jurisprudential heritage and its influence on establishing the legality of marketing practices.
Existing studies on Islamic marketing usually combine the term "marketing" with either
Islam or the guidelines and regulations of Islamic jurisprudence. They generally aim to
discern whether Islamic marketing exists as an independent discipline with its unique
foundations and principles distinct from traditional marketing or if it merely applies Islamic legal rulings to traditional marketing topics. Some studies also present the Islamic perspective
on contemporary marketing sciences. Regardless of the stance one adopts, this study does not
aim to debate which views are more valid. Instead, it identifies a gap in the existing literature
on marketing from an Islamic perspective: the lack of in-depth exploration of the term
"marketing" within the Islamic jurisprudential heritage. It highlights the verbal and contextual
connotations the term carries, which influence the formulation of many concepts and
deduction of legal guidelines for marketing practices. In the absence of this crucial aspect,
existing literature on marketing from an Islamic perspective often merely discusses the
ethical dimensions of marketing practices, such as honesty, trustworthiness, avoidance of
fraud, and deception. These aspects are not disputed, but often overshadowed by the broader,
foundational principles of marketing within an Islamic framework. Marketing, being a
mediation process aimed at achieving a fair sales deal, has its unique set of rules that align
with the required practices and activities. The research concludes with an examination of the
contextual significance of the term "marketing" and its legal texts, framing the fundamental
marketing concepts. It indicates the concept, importance, purpose, requirements, cause, and
Sharia rulings applicable to marketing, deducing legal guidelines for marketing mix elements.
These can serve as a basis for determining the legitimacy of marketing practices.

Managing Surplus in Takaful Insurance Companies: The Moroccan Experience as a Model

2024-01-08T11:12:51+00:00

The abstract: This research aims to shed light on the regulatory, legal, and Sharia principles governing the distribution methods of surplus in cooperative insurance companies, proposing the optimal approach for distribution that maximizes fairness to the stakeholders in insurance companies as much as possible. It also highlights the importance of managing insurance surplus in cooperative insurance companies, reflecting solidarity among contributors in bearing losses and reducing insured risks by collective donations. We emphasize the significance of the surplus distribution system in balancing the principles of solidarity, achieving justice, and equality among members of the cooperative body, contributing to reinforcing the idea of Islamic cooperative insurance. This underlines the credibility of cooperative insurance companies and their adherence to Islamic Sharia provisions through their commitment to the opinions of the subcommittee of participative finance emanating from the Higher Islamic Council in Morocco. To achieve this goal, the researcher adopted an analytical approach to present theoretical and practical methods for managing cooperative insurance surplus. The researcher recommended the necessity of forming reserves and allocations for cooperative insurance companies before distributing the surplus to confront potential future deficits that may hinder their operations.

The Role Of The Marsad Contract In Rehabilitating Degraded Awqaf Lands: Innovative Waqf Projects

2024-04-15T10:10:15+00:00

This research is part of an active endeavor to develop endowment (waqf)
properties and strengthen confidence in their economic and social potential. It explores the concept of "Marsad contract" as One of the most significant developmental mechanisms that
can be adopted for the reconstruction and restructuring of endowment lands.Marsad
(designated money) is a debt owed at the endowment, where the lessee invests their own
funds with the permission of the administrator of the endowment (Nazir) to develop the
essential endowment properties. It is a specialized form of lease that combines two
transactions: firstly, a debt owed to the endowment represented by what the lessee (debtor)
provides for the development of the endowment property, and secondly, the lease of the
endowment to the lessee to benefit from it until the value of that development is
consumed.The central issue addressed by this research is precisely the effectiveness of the
Marsad contract in the reconstruction and restoration of the endowment lands. To answer this
main question, the research proposes a series of subsidiary questions:
•What is the nature of the Marsad contract? What is its precise adaptation from a
jurisprudential perspective?
•What are the limits of the investor's disposal with endowment land?
•What are the most important proposed strategies for utilizing this type of contract and
strengthening confidence in it?
Based on these methodological inquiries, the paper is structured around two pillars:
-Theoretical: Defining the Marsad contract, its adaptation from a jurisprudential perspective,
and highlighting its most significant economic benefits.
-Applied: The research suggests four practical projects: solar energy farms, drought-resistant
fruit trees, industrial cluster localization, and strengthening the endowment techniqual.The
research concludes by appreciating the developmental returns of this contract and considering
it, if implemented with the necessary juristic and legal conditions, as a safe and suitable
financial solution for fruitage of endowment lands.