Sharia issues on the modern applications of Murabaha in Islamic financial institutions (IFIS)

Abstract

Murabha is one of the Islamic banking product widely used by the IFIs. Due to several reasons the modern applications of Murabah at IFIs has brought many Shariah issues. This study intended to identify the Shariah issues that are been criticized by the expert and to explain the basis behind those issues. This study has employed qualit methods where by the date were collected through primary and secondary sources. As per the objectives of this study, the researchers have found the some Shariah issues. The issues found are common for all the IFIs in the world. All of the issues highlighted in this study are serious and challengeable to the stability of the IFIs. Among the issues some have been discussed for which the suggestions for the rectification have been recommended while some are ongoing unsolved issues among the scholars.