Principles of Wa'd and Muwa'adah: Their Application in Islamic Financial Contracts

 2675
ISBN/ISSN: 0128-1976 (Printed) | E-ISSN 2289-4365
Pages: 208
Year: 2011


This publication is part of the journal ISRA International Journal of Islamic Finance (English Journal) (2011-2)

The application of unilateral promise (wa'd) in certain Islamic financial products, although recent, has witnessed spectacular development. It has been widely applied in products such as murabahah for a purchase orderer (murabahah lil amir bi al-shira’), leasing ending with ownership (ijarah muntahiyah bi al-tamlik), Islamic hire-purchase (ijarah thumma al-bay'), diminishing partnership (musharakah mutanaqisah), sukuk structures, and treasury products such as FX-i forward Islamic profit rate swaps. Some of these structures employ only one-way wa'd while others use two-way wa'd. Thus, it is important to examine principles of both unilateral promise (wa'd) and bilateral promise (muwa'adah) in order to identify whether structures that utilise two-way wa'd (wa'dan) comply with the rules of wa'd or whether they resemble the features of muwa'adah.


875366e4bf.png

 

user_id not set
bool(false)
string(1) "0"

 

Unfortunately your account does not have the necessary access level to continue. We would like to suggest that you upgrade account to enjoy more benefits on this website.


Comments

( No comment has been added. )

 

ADVERTISEMENT