Tawarruq

Tawarruq (Monetization/ Cash Financing/ Cash Procurement): Tawarruq is the infinitive (masdar) of the verb tawarraqa (to eat leaves); it is said as tawarraqa al-hayawan (i.e., the animal ate the leaves). Literally: from wariq: silver; also dirhams, which are coined from silver. Awraqa: to become rich. Some say it refers to both minted and non-minted silver (al-fidhah al-madhrubah or al-fidhah ghayr al-madhrubah). Tawarruq was, therefore, used by earlier generations for the purpose of seeking silver money, while it is used nowadays for seeking paper money, and that is a valid literal usage derived from the same word. Hence, the monetisation beneficiary is called mutawarriq. Technically: tawarruq is a term commonly used in the books of the Hanbali school of law while other schools mention the form of tawarruq under the rubric of bay' al-ajal and bay' al- 'inah (sale and buyback). Hence, the technical meaning varies according to its different types. The Al-Mawsu'ah al-Fiqhiyyah Al-Kuwaytiyyah (Fiqh Encyclopedia of Kuwait) defined tawarruq as buying a commodity with deferred payment and selling it to a person other than the buyer for a lower price with immediate payment. See ISRA Islamic Financial System: Principles and Operations for further details.


Can a False Statement Be Made to the Authorities to Facilitate Tawarruq?
Deposit And Financing Products Based On Tawarruq
International Commodity Murabahah
Resolution No. 179 (19/5): Tawarruq: its meaning and types [Organised Tawarruq Impermissible in 2009]
Prohibition of Al-Tawarruq Al-Munazzam in 2007
Rules Of Tawarruq
Tawarruq Using Cement as the Commodity
Tawarruq When the Bank Does Not Involve Itself in the Customer’s Resale of the Good
Tawarruq With a Conventional Bank
Using Cars as the Commodity in Tawarruq
What Is the Shariah Ruling on the Following Process of Tawarruq?
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 151st Meeting
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 146th Meeting
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 144th Meeting
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 134th Meeting
The Purchase Undertaker by Deferred Payment Wants to Sell the Good before Completing the Payments
التورق المصرفي: اعتماد صيغة التورّق أسلوبًا في التمويل
Revisiting The Rulings On Bai' 'Inah
Sale Of The Tawarruq Asset By The Customer To The Third Party: Issue Of Delivery And Payment
What is Shari’ah Opinion Concerning the Use of Tawarruq in Financing some Needs?
Is it Allowed to execute a tawarruq transaction in order to pay off the debt if the objective is to realize the interests of both parties, especially the indebted customer?
Is It Allowed to Buy and Sell Commodities of Metals in the Bases of Tawaruq?
What is the Ruling on Providing a Tawarruq Transaction to a Company, a Percentage of which is Owned by the Provider?
What is the Ruling of Conducting Tawarruq by Selling Islamic Sukuk or Shares on a Deferred Murabahah Basis?
Is it allowed to offer tawarruq on shares instead of construction materials (iron and cement)?
Is it Allowed to supply a company of a line of credit (in the form of tawarruq transactions) to finance a construction project?
What are the permissible means to restructure a conventional debt in order to conform to the Shari’ah principles?
What are the rules governing Tawarruq operations?
Is there any mechanism to adopt to reschedule the customers’ debt so that the monthly payment is reduced and the number of years is increased?
Is it permissible for us to buy the debt owed to one of our customers by other parties?
Is it allowed to adopt templates to enter into Tawarruq transactions with a select group of international banks and financial institutions?
How permissible is it to conduct a tawarruq sale for a client who wants to use it to obtain a bank statement regarding the balance in his account?
What is the opinion on the proposed Tawarruq financing by KFH Malaysia?
Is it allowed to conduct a Tawarruq procedure for a rich client to settle his debt with KFH?
Is it permissible to conduct Tawarruq procedure for a company that intends to settle a previous interest-based debt?
Is it allowed to conduct tawarruq to purchase secondary shares of a mobile phone service provider?
What is the opinion on the appointment of KFH to serve as an agent for selling the commodity and receiving its price in a tawarruq deal?
Is it allowed to facilitate Tawarruq (monetization) contract by buying and selling crude palm oil and other derived products?
Is it allowed to continue providing Tawarruq to the same company?

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