Authors retain the copyright without restrictions for their published content in this journal. HSSR is a SHERPA ROMEO Green Journal.
MANUFACTURE CONTRACT (ISTISNA’A), CONCEPT, IMPORTANCE & RISKS
Corresponding Author(s) : Nada Zuhair Al-feel
Humanities & Social Sciences Reviews,
Vol. 7 No. 5 (2019): September
Purpose of the study: This research deals with Manufacture Contract (Istisna'a contracts) Arabic (الإستصناع) in terms of their concept, importance, and risks related to them; as one of the means used by Islamic banks to meet the individuals special needs of goods and products that require special specifications.
Methodology: The study is based on the descriptive approach that gave a clear picture of Istisna'a is a contract and as a financing formula. It is meant by the terms and conditions of its validity and legitimacy, distinguishing it from the other financing forms witnessed by the banking reality, the methods and procedures of its application and its importance.
Results: it does not stipulate what is required in the peace contract to accelerate the price, a contract that recognizes contemporary jurisprudence in need of modification and development to be removed from its traditional image to a new image through which it is able to accommodate the fate Greater than the requirements for industrial finance. Given the importance of this contract in the field of industrial investments carried out by Islamic banks, the many questions that may be raised about its legitimacy, its relevance to other contracts, the risks faced by banks in applying it, and the solutions that must be prepared to address it, we have chosen it to be the subject of this study.
Applications of this study: This research can be used for the universities, teachers, and students.
Novelty/Originality of this study: In this research, the model of Manufacture Contract (Istisna’a), Concept, Importance & Risks is presented in a comprehensive and complete manner.
Al-Ayadi, A. S. (2010). Banking Operations and Control Department, Dar Al-Fikr, Amman, 1st edition.
Meera, M. A. (2011). Emerging Financing Contracts in Islamic Banks (Empirical Applied Study). Al-Maiman Publishing and Distribution, Riyadh.
Samhan, H. M., Mubarak, M. O., & Saqri, A. A. (2012). Investment Management in Islamic Banks. Publications of the Arab Organization for Administrative Development. League of Arab States, Cairo, Egypt.
Khalaf, F. H. (2006). Islamic Banks. World of Modern Books, Jadara for global Books, Irbid.
Makkawi, M. M. (2012). Reserve Against the Risks of Islamic Banking Financing, Dar Al-Fikr wa al-Fikr, Mansoura, I.
Tajeddine, S. A. I. (2013). Towards a New Islamic Product for the Industrial Futures Market (Istisna'a Hedging for Musharaka Finance). Esra International Islamic Finance Journal, 4, 1.
Badran, K. A. K. (1979). Contract of Istisna'a or Contracting in Islamic Jurisprudence (Comparative Study), I. Available at: http://www.Katntakji.com/media.
Al-Qari, M. A. (2004). Risks in Islamic Banking Financing, Hawliya Al-Baraka Journal, Dallah Al-Baraka Group. General Secretariat of the Shari'a Board, 6.
Al-Jazzar, O. Y. (2009). Futures in Islamic Alternative Economy. Master Thesis. Faculty of Sharia and Law, Comparative Jurisprudence Department, Islamic University, Gaza.
Ariffin, N. M., Archer, S., & Karim, R. A. A. (2009). Risks in Islamic banks: Evidence from empirical research. Journal of Banking Regulation, 10(2), 153-163. https://doi.org/10.1057/jbr.2008.27 DOI: https://doi.org/10.1057/jbr.2008.27
Haron, A., & Hock, J. L. H. (2007). Inherent risk: credit and market risks. Islamic finance: The regulatory challenge, 2.
Siddiqi, M. N. (2000). Islamic banks: concept, precept and prospects. Review of Islamic Economics, 21-36.
Sarker, A. (2005). CAMELS rating system in the context of Islamic banking: A proposed ‘S’for Shariah framework. Journal of Islamic Economics and Finance, 1(1), 78-84.
Tariq, A. A. (2004). Managing financial risks of sukuk structures. Loughborough University, UK, September (mimeo).
Archer, S., & Haron, A. (2013). Operational risk exposures of Islamic banks. Islamic Finance: The New Regulatory Challenge, 133-52. https://doi.org/10.1002/9781118628973.ch7 DOI: https://doi.org/10.1002/9781118628973.ch7
Hanif, M. (2014). Differences and similarities in Islamic and conventional banking. International Journal of Business and Social Sciences, 2(2).
El Massah, S., & Al-Sayed, O. (2013). Risk aversion and Islamic finance: an experimental approach. International Journal of Information Technology and Business Management, 16(1), 49-77.
Van Greuning, H., & Iqbal, Z. (2007). Banking and the risk environment. Islamic Finance: The Regulatory Challenge, John Wiley & Sons, Singapore, 11-39. https://doi.org/10.1002/9781118390443.ch2 DOI: https://doi.org/10.1002/9781118390443.ch2
Vogel, F. E., & Hayes, S. L. (1998). Islamic law and finance: religion, risk, and return (Vol. 16). Brill.