Friday, 9 December 2011

Home Ownership with Options in Islamic Finance: A Rejoinder

Home Ownership with Options in Islamic Finance: A Rejoinder

12/9/2011 10:47:08 AM

Islamic Finance

Irshad Ahmad Aijaz

Recently, Brother Salman Ahmed has submitted a proposal of a Shari'ah compliant alternative model of housing finance. Below, I submit my comments on the proposal.


Undertaking in Islamic finance

Undertaking (Wa’d) is somewhat a debatable issue, some scholars do not see its legal enforceability (respected Dr Rafic Al-Masri is among them) while majority of scholars allow it. Brother Salman’s objection that it is an “organized way of avoiding market risk” is not a valid criticism.

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