vol 24 no3,2024

Using International Indicators to Control Lease-to- "Sharia Study" Own

 

Using International Indicators to Control Lease-to- "Sharia Study" Own

Hamza Salama Nahar Al-Ghariri
Director of Sharia Auditing
Al-Rajhi Bank
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Received : 26/12/2022                          Accepted :17/10/2023
Abstract:

This study focuses on the discussion of global indicators and how much Islamic financial institutions use them to ensure fairness in long-term transactions. It also examines the legitimacy of using these indicators and connecting them to contracts, and explores the importance of either following these indicators or finding substitutes for them.

The study seeks to explain the indicators and their calculation method, and assess whether it is appropriate to tie contracts to these indicators. I used an inductive deductive research method to analyze jurisprudential opinions and infer the Sharia ruling.

The most crucial findings of the study indicate that not using this clause has no impact on banks' profits, suggesting it is unnecessary, and it is more suitable to prohibit linking the fee to an indicator rather than allowing it.

The researcher suggests requesting a reevaluation of this subject, particularly from Sharia organizations that reflect a consensus view, using the actual circumstances as the foundation instead of prioritizing the institutions' interests in issuing fatwas.

International indicators in the Islamic economy show that leasing schemes ending with ownership are gaining popularity.

Keywords: International Indicators, Leasing, Leasing Ending with Ownership, Islamic Economics.

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