The enforceability of Wa‘d Mulzim (Binding Promise) from a fiqh perspective: A critical analysis of wa‘d application in sukūk contracts

Wa‘d (promise) is a concept that is frequently applied in various Islamic financial products. Although this concept has been used widely in Islamic financial products, as a result of the arising Sharī‘ah issues, wa‘d especially wa‘d mulzim (binding promise) in some contemporary practices towards co...

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Main Authors:	Md. Sawari, Mohd. Fuad, Nik Abdullah, Nik Azizu, Mat Jubri@Shamsuddin, Mustafa, Abdul Aziz, Akhtarzaitie
Format:	Article
Language:	English
Published:	IIUM Press 2018
Subjects:	KBP Islamic Law
Online Access:	http://irep.iium.edu.my/64525/ http://irep.iium.edu.my/64525/ http://irep.iium.edu.my/64525/1/18-01-11E%20Final.pdf

id	iium-64525
recordtype	eprints
spelling	iium-645252018-07-19T02:47:52Z http://irep.iium.edu.my/64525/ The enforceability of Wa‘d Mulzim (Binding Promise) from a fiqh perspective: A critical analysis of wa‘d application in sukūk contracts Md. Sawari, Mohd. Fuad Nik Abdullah, Nik Azizu Mat Jubri@Shamsuddin, Mustafa Abdul Aziz, Akhtarzaitie KBP Islamic Law Wa‘d (promise) is a concept that is frequently applied in various Islamic financial products. Although this concept has been used widely in Islamic financial products, as a result of the arising Sharī‘ah issues, wa‘d especially wa‘d mulzim (binding promise) in some contemporary practices towards contracts of Islamic financial products, remains a debatable practice among some Sharī‘ah scholars. This research aims to analyse some Sharī‘ah issues pertaining to the application of the wa‘d mulzim in the Islamic finance industry, especially the issue of wa‘d mulzim in sukūk contracts, particularly in partnership-based contracts which are sukūk muḍārabah, and sukūk mushārakah concepts. Two aspects are particularly emphasized. First, wa‘d can be binding in certain conditions, but to legally enforce this concept, there remain disputes and controversial discussions among scholars. Second, this study also discusses the issues of “promise to buy” or “promise to sell” (the asset) at a certain “price” i.e. the price at the same nominal value at which the bond was issued. Hence, this research will try to analyse the opinions of the scholars, certain related fatwas, Sharī‘ah resolutions and guidelines to understand the applicability of the binding promise towards Islamic financial products and ensure that the application of the binding promise is in line with the Sharī‘ah requirements. IIUM Press 2018-06 Article PeerReviewed application/pdf en http://irep.iium.edu.my/64525/1/18-01-11E%20Final.pdf Md. Sawari, Mohd. Fuad and Nik Abdullah, Nik Azizu and Mat Jubri@Shamsuddin, Mustafa and Abdul Aziz, Akhtarzaitie (2018) The enforceability of Wa‘d Mulzim (Binding Promise) from a fiqh perspective: A critical analysis of wa‘d application in sukūk contracts. International Journal of Fiqh and Usul al-Fiqh Studies, 2 (1). pp. 119-131. E-ISSN 2600-8408 http://journals.iium.edu.my/al-fiqh/index.php/al-fiqh/article/view/37/17
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	KBP Islamic Law
spellingShingle	KBP Islamic Law Md. Sawari, Mohd. Fuad Nik Abdullah, Nik Azizu Mat Jubri@Shamsuddin, Mustafa Abdul Aziz, Akhtarzaitie The enforceability of Wa‘d Mulzim (Binding Promise) from a fiqh perspective: A critical analysis of wa‘d application in sukūk contracts
description	Wa‘d (promise) is a concept that is frequently applied in various Islamic financial products. Although this concept has been used widely in Islamic financial products, as a result of the arising Sharī‘ah issues, wa‘d especially wa‘d mulzim (binding promise) in some contemporary practices towards contracts of Islamic financial products, remains a debatable practice among some Sharī‘ah scholars. This research aims to analyse some Sharī‘ah issues pertaining to the application of the wa‘d mulzim in the Islamic finance industry, especially the issue of wa‘d mulzim in sukūk contracts, particularly in partnership-based contracts which are sukūk muḍārabah, and sukūk mushārakah concepts. Two aspects are particularly emphasized. First, wa‘d can be binding in certain conditions, but to legally enforce this concept, there remain disputes and controversial discussions among scholars. Second, this study also discusses the issues of “promise to buy” or “promise to sell” (the asset) at a certain “price” i.e. the price at the same nominal value at which the bond was issued. Hence, this research will try to analyse the opinions of the scholars, certain related fatwas, Sharī‘ah resolutions and guidelines to understand the applicability of the binding promise towards Islamic financial products and ensure that the application of the binding promise is in line with the Sharī‘ah requirements.
format	Article
author	Md. Sawari, Mohd. Fuad Nik Abdullah, Nik Azizu Mat Jubri@Shamsuddin, Mustafa Abdul Aziz, Akhtarzaitie
author_facet	Md. Sawari, Mohd. Fuad Nik Abdullah, Nik Azizu Mat Jubri@Shamsuddin, Mustafa Abdul Aziz, Akhtarzaitie
author_sort	Md. Sawari, Mohd. Fuad
title	The enforceability of Wa‘d Mulzim (Binding Promise) from a fiqh perspective: A critical analysis of wa‘d application in sukūk contracts
title_short	The enforceability of Wa‘d Mulzim (Binding Promise) from a fiqh perspective: A critical analysis of wa‘d application in sukūk contracts
title_full	The enforceability of Wa‘d Mulzim (Binding Promise) from a fiqh perspective: A critical analysis of wa‘d application in sukūk contracts
title_fullStr	The enforceability of Wa‘d Mulzim (Binding Promise) from a fiqh perspective: A critical analysis of wa‘d application in sukūk contracts
title_full_unstemmed	The enforceability of Wa‘d Mulzim (Binding Promise) from a fiqh perspective: A critical analysis of wa‘d application in sukūk contracts
title_sort	enforceability of wa‘d mulzim (binding promise) from a fiqh perspective: a critical analysis of wa‘d application in sukūk contracts
publisher	IIUM Press
publishDate	2018
url	http://irep.iium.edu.my/64525/ http://irep.iium.edu.my/64525/ http://irep.iium.edu.my/64525/1/18-01-11E%20Final.pdf
first_indexed	2023-09-18T21:31:34Z
last_indexed	2023-09-18T21:31:34Z
_version_	1777412545969127424

The enforceability of Wa‘d Mulzim (Binding Promise) from a fiqh perspective: A critical analysis of wa‘d application in sukūk contracts

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