Abstract

This Paper treats five forms of Islamic Investment, namely:

Term-sale, "Salam Sale", Mudaraba, Speculation/ Muqaradha Deeds ["Soukuk-ul-Muqaradah"]. And Istissna'e.

It mentions the problems Islamic Institutions are facing upon using each of the above forms for financing purposes, and shows which of such forms is/, and which is not, compatible with Islamic Shari'a.

Among the principal problems faced in Sale:

uncommitment of "the party ordering the purchase" a and,

risks of imported goods and,

debtor's incapacity or,

deferment/delaying by a solvent party.

The Paper elaborates the permissible solutions in Murabaha and Mussawama sales, the fact the selling (goods) before actual or derivative receipt (of such goods) is not compatible with Islamic Shari'a. It exposes the questions of charging pre-sale risks on the customer and the fines/ penalties eventually imposed on delaying debtor(s). However, it is permissible, that payments may be declared due and payable before their effective Maturity Dates.

The research paper spots other problems related to the following and proposes the way-out in each case:

taxes not admissible in Islamic Shari'a,

the participation of Usury-taking banks and,

cease of debtor.