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Faith and Investment

July 16, 2009 Leave a comment

Paper for the Annual Conference of the International Interfaith Investment Group, Paris, 9-10 November 2006

Faith gives meaning to the world in which we live and to life itself. It answers for us such questions as who are we, wherefrom and whereto? Without faith it is hard to situate oneself in the world around. Situatedness in the world is not something one can ignore or be indifferent to, as it is an inalienable aspect of being, of life itself.

It is only natural that something so essential be related to all human activities, including investment. Investment connects our past, in which we earned and saved, with our future, in which we hope some return from it, making our wealth increase, grow. The way we earn and save involves, among other things, ethical choices that reflect our faith. The urge to grow and the desire to see our wealth increase is, likewise, based on our aspirations and plans for the future that reflect how we envisage our ‘situatedness’, a dimension of our faith.

All faith is in essence one: belief in a Supreme Being. The sponsors have asked me to speak specifically for the Islamic faith. I will be addressing three questions: What are the key issues in Islamic faith related policies? Ethical areas of concern that may conflict with my faith related concerns; and the (positive) differences between faith consistent investment and socially responsible investment (SRI).


Islam lays down an important principle: la darara wa la dirar , meaning : causing damage and retaliating by damage is not allowed. While recognizing freedom of enterprise, Islam does not allow policies directed at harming others. One is not allowed to do so even when he or she finds himself or herself a target of other people’s damaging policies. This in itself is a corollary of the overall Islamic view on human brotherhood in which we are expected to be caring and sharing vis a vis others rather than engaging in predatory policies. Justice tempered with benevolence is the guideline for business behavior in Islam. An investor is faced with two problems: Not harming others in one’s pursuit of profits and, possibly, promoting the social interest, the general weal, through one’s venture, besides securing his or her own interests. These are no easy tasks as they involve, among other things, the important question of information. All of our investment decisions are done in face of uncertainty. One may not know about the possible harms to others or the likelihood of social benefits being served. We continue to learn in matters of information gathering. The crucial thing for faith-based behavior is, intention and the will to do, not the consequences. Gathering information, managing risks and devising ways for handling uncertainties are dynamic possibilities left to human ingenuity. What faith seeks is to make human creativity and innovativeness serve good intentions. It does not allow one to be indifferent to the public interest or the fate of a brother.

Faith is eternal and universal. It does not give us a list of specific dos and do not-s. Every generation of human beings has to translate its implications for its own locale and times. For us in twenty first century new concerns about environmental damage, weapons of mass destruction and nuclear proliferation have been added to the predatory business practices of the older days listed in some of the sacred texts of the great religions including Islam. They generally fall in two categories: the so called sin industries whose scope is widened or narrowed according to specific faith-traditions; and unethical means such as fraud and false information, etc. All these and any other that humanity may vote to include in the above list are genuine concerns for Islamic policy, as damage must be removed to the extent possible.

This brings the Islamic approach in sharp contrast to the profit maximizing investment approach currently applauded. That approach to private profits bypasses all the concerns highlighted above. This should not be allowed as it amounts, ultimately, to killing the goose that lays the golden eggs.


Islam looks upon wealth as means to life. It refuses to recognize it as end in itself. Wealth as means to life is good as life itself is good, the greatest gift of God. (“ O man! What has made thee careless concerning thy Lord, the Bountiful. Who created thee, then fashioned, then proportioned thee?” [Quran, 82: 6-7]) Once wealth is looked upon as means to life all ways of increasing wealth that are life destroying are ruled out. Investment is good insofar as it increases life-sustaining wealth. All investment that fails to qualify on this criterion is ruled out.
It is in this perspective that Islam’s major prohibitions related to investment are to be understood. Lending money with a view to getting back more money after a passage of time violates the norms of justice and equity cementing human brotherhood as it lays the burden of facing risk and uncertainty almost entirely on the borrower. Gambling disrupts the natural nexus of work and reward throwing things to pure chance, thus opening the floodgates of envy and arrogance of unearned wealth, besides diverting talent and energies from productive enterprise to play. Ihtikar , i. e. withholding supplies of essential goods and services with a view to raising prices also negates the humane role of wealth, besides violating the principle of la darar noted above.

Islam does not have only prohibitions. Its emphasis on caring and sharing hastaken many forms, waqf or charitable endowments being one of them. By a waqf deed in the cause of Allah, a person gives away his property for the benefit of society, enabling education, health care, etc . to be funded by waqf income while the corpus itself is held in trust. While not exactly “investment” in economic jargon it is investment in society generating welfare.

Socially Responsible Investment, SRI, is a great step forward. The breaking loose from the strait jacket of neoclassical framework is most welcome. Individualism is rightly discarded as unbecoming of the social beings that humans are. Yet it fell short of recognizing the poisonous effect of another pillar of neoclassical dogma; the cult of profit maximization. Most of the time profit maximization approach is indifferent to distributive justice and equity, focusing entirely on efficiency.

While rightly cited as making possible great strides in wealth creation, it remains true that an exclusive pursuit of efficiency and growth has increased inequality in the distribution of income and wealth, multiplied conflict situations across the
globe and raised anxiety levels all round. Seen in this perspective SRI falls short of meeting the great challenges we face after decades of greed led capitalism. It is time to recognize that there is more to life than material wealth and ethical and spiritual considerations must be brought into focus. Abstracting them away in the name of scientific analysis then relegating them to a separate box of altruistic behavior or philanthropy is not right. Unlike SRI,hich is focused on immediate consequences (and would therefore be satisfied once the social dimension is introduced in private investment decisions),faith based investment has a broader longer-term view on the matter. Investment must meet man’s spiritual and moral needs. These include among other things moderation, non-indulgence and balanced living as all great religions have taught. It also includes the interest of future generations, as faith inspired caring and sharing does not stop at the current generation. Even if SRI can sustain a universal stance, these broader dimensions require faith. But I do not see any essential conflict between SRI and faith based investment. There is no need to pick up a fight.


Even though the organizers have not asked me to evaluate Islamic finance, I think I owe it to this learned audience to say something in this regard. The formalism from which contemporary practice suffers and the non-fulfillment of the original vision is by now universally acknowledged. Despite these shortcomings, Islamic finance keeps away from sin industries, avoids involvement in gambling like speculation and, to a great extent, maintains a firm link between finance and real assets, thus contributing to stability. It is an alternative to conventional finance that does not violate Islamic Shariah, but it fails to serve Islamic ideals of investment. As noted above Islam relates investment to wealth creation, which is to support good life that necessarily involves spiritual and moral dimensions, one of which is distributive justice. This is what current practice of Islamic banking and finance largely fails to do. Serious efforts are on to correct the course and remove the deficit. After all, thirty years is not a period long enough to judge such a unique venture as reasserting faith in finance –an area from which faith had largely been banished by the dominant civilization. It is a tough task to accomplish, for which all peoples of faith must pool their resources and skills. Muslims, with a long tradition of (the recently revived) faith consistent finance will welcome any initiatives in that direction.
[Supporting writings of the author can be accessed at


July 16, 2009 Leave a comment

By Sohail Jaffer, Partner, FWU Group

From Banque Stratégie, No 257 Mars 2008, p.21-22

Takaful, or Sharia-compliant insurance, is one of the most dynamic areas of the rapidly expanding market for Islamic financial services. According to a recent report published by Fitch Ratings, total global premium contributions reached $2.6 bn in 2006, and industry analysts estimate that the annual growth of the market may be as high as 40% in the booming GCC and well into double digits in a number of other regions.

Part of that expansion has inevitably been associated with the powerful economic growth rates that have been posted by all oil-exporting nations in recent years, which has bolstered personal disposable income levels and demand for a range of financial services. But much of the expansion can also be attributed to a growing recognition across the Islamic world that although conventional insurance violates Sharia law, Takaful – which is based on the Koranic principle of mutual help—does not. That growing recognition has triggered a virtuous circle, because it has prompted governments in a number of Islamic countries, including Egypt, Saudi Arabia and the UAE, to pass new legislation aimed at promoting an understanding of and a demand for insurance cover. It has also alerted several of the world’s largest insurance companies to the potential of theTakaful market, which has in turn underpinned further growth in the sector. A spokesman for the Central Bank of Bahrain (CBB) pointed to that trend in March2007, when the German insurance giant, Allianz, was awarded a licence to locate its global Takaful hub in Bahrain. “Public perception of life insurance, in particular, has changed considerably with the introduction of takaful and now represents a huge, fairly untapped opportunity,” he said. “The entry of a global insurance player, such as Allianz, in the Takaful arena also points to the tremendous potential of this line of business.”

A significant expansion

The potential is tremendous indeed, and has been recognized by scores of other industry heavyweights. For example, when Prudential of the UK recently signed a Memorandum of Understanding (MOU) with Bank Aljazira of Saudi Arabia to develop the bank’s successful Takaful Ta’awuni life insurance business, it put the potential of the Saudi insurance market into vivid perspective. “The Saudi Arabian insurance market is currently relatively small with an estimated £8oom [$1.56bn] in annual gross premiums, and with more than 70 per cent of this being related to motor, medical and property insurance,” Prudential advised. “However, with GDP per capita now exceeding £6,700 [$13.o65bn], and life insurance penetration of less than one per cent, there is significant room for growth.”
There is equally significant room for expansion elsewhere in the Islamic world. According to data published by Swiss Re, in 2004 life insurance premiums amounted to just 0.28% of GDP in Pakistan and for 3.52% in Malaysia, compared with almost 9% in the UK. But as a number of industry participants have been quick to point out, there is no reason why the sale of well-structured and efficiently managed Takaful products should be restricted to Muslim-majority countries or even to Muslim customers. As the renaissance in socially responsible investing (SRI) continues to gather momentum across the world, Sharia-compliant products are expected to become increasingly popular among non-Muslim investors and policyholders. In its most recent analysis of the industry, the management consultancy group Oliver Wyman has forecast that as much as 20% of Takaful revenues could ultimately be generated from non-Muslim customers.
Identifying the potential of takaful is, however, one thing. Harnessing that potential in order to maximize the benefits for providers as well as for policyholders and for society at large is quite another, especially given the relative under-development of retail financial services throughout the Islamic world. One consequence of that under-development is that an emphasis on efficient distribution models is likely to be pivotal in determining the winners and losers in the Takaful market going forward. Many of those winners, market analysts believe, will be the products of partnership arrangements between banks and insurance providers (in the form of bancassurance) and specialist investment managers. Leading insurance companies such as Prudential, which has over 2I million customers worldwide, have been in the vanguard of this movement. Prior to the announcement of its joint venture with Bank Aljazira in Saudi Arabia, Prudential emphasized its commitment to the growth of the Takaful market in Malaysia when it launched a joint venture with Bank Simpanan Nasional Bhd (BSN). Set up in 2006, Prudential BSN Takaful Bhd (PBTB) offers “a range of takaful savings, protection and investment products which have been developed with the unique needs of Bumiputra (Muslim Malays), who make up 6o% of the population, in mind.” Specifically, PBTB is focusing on the potential for family and general Takaful products, including investment-linked policies, by leveraging BSN’s very extensive branch network of almost 400 branches and customer base of over 7 million customers nationwide.

Licensed from the state

PBTB was the first of a number of new Takaful ventures to have been licensed by the Malaysian Central Bank, and industry liberalization has also helped the development of the market in the Middle East. In Saudi Arabia, for example, at the end of 2006 the Council of Ministers ended the monopoly of the National Company for Co-Operative Insurance (NCCI) when it awarded licences to 13 new insurance companies. A handful of those are joint ventures focusing on the potential of Islamic insurance, such as Al Ahli Takaful, the largest shareholder in which is National Commercial Bank (NCB), which with over one million customers is Saudi Arabia’s largest commercial bank. NCB is the leading financial asset manager in the Arab world, was the first bank in the Kingdom to offer investment funds, and has 260 branches located throughout Saudi Arabia dedicated to Islamic financial services, meaning that its distribution network is unrivalled. Other shareholders in Al Ahli Takaful include the International Finance Corporation (IFC), the FWU Group and the German insurance company, VHV.

Marketing products?

Another striking example of this partnership-based approach is the Meethaq savings scheme launched recently by Abu Dhabi Commercial Bank (ADCB) in a joint arrangement with the Dubai Islamic Insurance and Reinsurance Company and the Germany-based FWU AG. The Meethaq initiative, which offers individuals access to savings plans linked to Sharia compliant mutual funds, is likely to be an important blueprint for the future evolution in which Takaful products are sold for several reasons. Foremost among these is that it makes Takaful widely accessible to savers throughout the United Arab Emirates (UAE) by putting a strong emphasis on the flexibility of the product, which is offered to all UAE residents aged between 18 and 6o. Savers can choose between a number of mutual funds and participate through monthly subscriptions equivalent to as little as AED 1,000. Contributions, which are deferrable if necessary, can be made on a monthly, quarterly, semi-annual or annual basis, and partial withdrawals are permitted.
One key way in which the Meethaq initiative will serve as an important blueprint for other providers of takaful products is that it has a very clear focus on the delivery of superior investment returns. Marketing products that are religiously acceptable will only represent half the battle for providers of Takaful-linked investments. If those products fail to prove their worth by outperforming local or international benchmarks, they will inevitably fail to attract an extensive customer base, especially in the context of a global bear market where strong returns become increasingly elusive.
As with other joint ventures involving banks such as NCB in Saudi Arabia and BSN in Malaysia, distribution through ADCB’s network of more than 40 local branches is fundamental to the success of the Meethaq product. For banks in a range of other countries with a dense distribution network twinned with a strong local heritage — but not necessarily with any expertise in Islamic finance – an increasingly attractive way of participating in the fast-growing Takaful market has been leverage off their extensive client relationships by white labelling products generated by smaller specialists.
The long term success of the Takaful sector will therefore hinge principally on the distribution capacity of the principal players in the market, which in turn will hinge on the commitment of banks and bancassurance giants – rather than smaller independent agents – to use their very extensive networks to reach a global and highly diversified range of customers.


July 16, 2009 Leave a comment


The issue of corporate governance structure has recently received considerable attention in conventional literature and public policy debates. Traditional ‘shareholder value centered’ view of corporate governance is being questioned in favor of a corporate governance structure extended to a wide circle of stakeholders and incorporating each stakeholder’s claims, rights and obligations. The paper discusses the design of an efficient and optimal corporate governance structure of a firm within Islamic economic system. The objective of this paper is to identify factors, which will influence the corporate governance within an Islamic economic system and to examine if corporate governance model will be a ‘shareholder-‘ or ‘stakeholder-‘ centered? The paper argues that the governance model in Islamic economic system is a stakeholder oriented model where governance structure and process at system and firm level protects rights of stakeholders who are exposed to any risk as result of firm’s activities. Whereas conventional system is struggling with finding a convincing arguments to justify stakeholders’ participation in governance, the foundation of a stakeholder model is found in Islam’s principles of property rights, commitment to explicit and implicit contractual agreements and implementation of an effective incentive system. The paper also discussed the implication of a stakeholder model on depositors, Islamic financial institutions, and regulators.

The issue of corporate governance and search for optimal governance structure has recently received considerable attention in conventional economic literature and public policy debates. This increased attention can be attributed to several factors such as (a) the growth of institutional investors, i.e. pension funds, insurance companies, mutual funds and highly leveraged institutions, and the role institutional investors play in the financial sector especially in major industrial economies; (b) widely articulated concerns and criticism that the contemporary monitoring and control of publicly held corporations in Anglo-Saxon countries especially UK and USA is seriously defective leading to sub-optimal economic and social development, (c) a shift away from traditional ‘shareholder value centered’ view of corporate governance in favor of a corporate governance structure extended to a wide circle of stakeholders; and (d) impact of increased globalization of financial markets, global trend of deregulation of financial sectors, and liberalization of institutional investors’ activities which have raised concerns over corporate governance. Although, each of the above mentioned factors provides compelling reasons to examine current corporate governance structures, the most challenging, and the one which contains the seeds of a paradigm shift in understanding of corporate governance, is the stakeholder-oriented model of governance.

This paper examines the arguments for and against the stakeholder model presented in conventional literature and argues that a stakeholder-oriented theory of corporate governance finds strong roots in the Islamic economic system. Section I discusses the stakeholders theory in conventional system and identifies critical issues. Sections II and III examine the theoretical framework in support of stakeholders theory from Islamic economic system. Section IV discusses the governance structure in Islamic economic system and Section V concludes the discussion.
The concept of corporate governance is diverse and, over the period of time, definition of the term ‘corporate governance’ has oscillated between two extremes– from a narrow concept of a mechanism of implementing investors’ interest to a broad concept advocating protection of all internal and external stakeholders’ rights. This wide spectrum of concept stems out of two divergent views: (a) how the entity of a ‘firm’ should be perceived in an economic system, and (b) the form of the incentive system to protect rights and to preserve the obligations of economic agents in the environment in which the firm operates. Whether one views the firm as a bundle of assets and liabilities, a legal entity, an economic or social organization, a nexus of contracts, or as a combination of these elements, will influence the way in which the evolution of conceptualization of corporate governance is analyzed.

The modern theory of firm dates to Coase’s (1937) fundamental insight that firms exists as a substitute for more costly modes of transacting. Transaction costs in negotiating, contracting, coordinating, enforcing and discharging rights and obligations under a set of contracts can be reduced by creating a firm that serves as a middleman between the consumer and the supplier of inputs. Based on Coase’s idea of transaction costs as an explanation for the existence of a firm, Alchain and Demsetz (1972) further refined the idea and viewed the firm through agency-cost theory and focused on the cost of monitoring. They considered management of the firm to be a ‘continuing process of negotiation of successive contracts.’ Jensen and Meckling (1976), developed the notion of the firm as nexus of contracts, and argued that contractual designs emerge to minimize transaction costs between specialized factors of production. Focus of early researchers was to identify ways in which managers could be made responsive to shareholders despite the dispersed nature of share ownership.

This basic agency problem suggests a possible definition of corporate governance as that which constitutes an efficient monitoring structure solving both adverse selection and the moral hazard problems. Shleifer and Vishny’s (1997) survey of corporate governance is focused on this view of corporate governance restricted to the ways in which the suppliers of finance to corporations assure themselves of getting a return on their investment. Corporate governance structure, focused on investor-manager contract and relation, is often referred to ‘shareholder model’ of corporate governance. It can be characterized as a model where (1) shareholders ought to have control, (2) managers have a fiduciary duty to serve shareholder interests alone, and (3) the objective of the firm ought to be the maximization of the shareholders’ wealth.

Traditional definition of corporate governance among economist and legal scholars, based on agency relationship between the investor and the manager, is concerned with the protection of shareholders’ or investors’ interests only. Business ethicists have generally considered this result to be ethically unacceptable because it unjustifiably neglects the rights of non-shareholder groups. Opponents of shareholder-value concept point out that this profit-maximization approach to the firm is too narrow a view for an economic analysis of corporate governance because of externalities imposed by profit maximization choices on other stakeholders. These include, inter alia, constraints on welfare of management and workers who have invested their human capital as well as off-work related capital (housing, spouse employment, schools, social relationships, etc.) in the employment relationship and on suppliers and customers who have also sunk investments in the relationship and foregone alternative opportunities, and on communities who suffer from the closure of business. The exclusion of the interests of the others involved in the firm affirms a divisiveness that could well be consequentially counter-productive.

The neo-institutional economists argue that the firm’s claimants go beyond shareholders and bondholders to include others with whom the firm has any explicit and implicit contractual interaction. In this “nexus-of-contracts” view, each corporate constituency, including employees, customers, suppliers, and investors, provide some asset in return for some gain. Contracts result from bargaining by these constituencies over the terms of their compensation as well as the institutional arrangements that protect this compensation from post-contractual expropriation. According to this view, there is nothing unique to corporate governance, which simply becomes a more complex version of standard contractual governance. All stakeholders are regarded as contractors with the firm, with their rights determined through bargaining.

Stakeholder theorists reject the three main propositions of the shareholder system and argue for the following: (1) all stakeholders have a right to participate in corporate decisions that affect them, (2) managers have a fiduciary duty to serve the interests of all stakeholders groups, and (3) the objective of the firm ought to be the promotion of all interests and not only those of shareholders. This view is commonly referred to as ‘stakeholders’ model of corporate governance where ‘stakeholders’ may include customers, suppliers, providers of complementary services and products, distributors, and employees. Therefore, this theory holds that corporations ought to be managed for the benefit of all who have some stake in the firm.

A critical review of evolving literature dealing with stakeholders reveals that the concepts of stakeholder, stakeholder model, stakeholder theory, stakeholder management, and stakeholder society are explained and used by various authors in very different ways and supported (or critiqued) with diverse and often contradictory evidence and arguments. Trole (1999) suggests that there is little formal analysis of the economics of stakeholder model or stakeholder society. Stakeholder model is largely normative and is still evolving to find a sound theoretical foundation in conventional economic literature. In this process, a number of issues have to be addressed among which are: first, it is argued that ‘nexus-of-contracts’ view of the firm needs to expand the concepts of contracting and agency beyond their narrow use in economics and include their legal and moral uses in order to make stakeholders theory of governance a comprehensive one. Distinction between explicit (or formal) and implicit (or relational or self-enforcing) contracts and claims is key concept in understanding the foundation of stakeholder model. When it is difficult to write complete state-contingent contracts—when, for example, certain variables are either ex-ante unspecifiable or ex-post unverifiable– people often rely on “unwritten codes of conduct”, that is, on implicit contracts. These may be self-enforcing, in the sense that each party lives up to the other party’s (reasonable) expectations from a fear of retaliation and breakdown of cooperation. This implies that, in addition to obligation on explicit contracts, obligations arising out of implicit contracts have to be incorporated into the “nexus of contracts” theory with convincing arguments, and that only can be articulated by expanding the scope of analysis to include ethics, morals and social order. Hart (2001) forcefully argues that many economic transactions are sustained by self-enforcing (“implicit”) contracts or norms of behavior, such as honesty or trust; concepts which so far have proved difficult to formalize in economic theory.

Second issue is how to draw a line of distinction between a stakeholder and a non-stakeholder. Existence of a stakeholder entity and its rights are easy to recognize, but question still remains who really qualifies as an actual stakeholder? Third issue deals with the stakeholders’ right to influence management decision-making or to participate in governance of the firm. Questions arise why stakeholders should be given such right and why managers should have a fiduciary duty to protect rights of non-investor or non-owner stakeholders if such stakeholders have protected their rights through bargaining in the terms of the contracts. Whereas there appears to be a consensus on identifying the rights of non-owner stakeholders and an implicit agreement to protect these rights, there is still a debate on why such stakeholders should participate in the control and management processes of a firm. For example, the notion that property rights are embedded in human rights and that restrictions against harmful uses are intrinsic to the property rights concept clearly highlights the interests of other non-owner stakeholders but it remains unclear which uses of property should be restricted and which persons should count as stakeholders. Simply bringing non-owner stakeholders into the conception of property rights does not, provide by itself, a justification for assigning any specific groups of stakeholders, such as employees and customers, managerial responsibilities. So far, discussions of stakeholder model have not been able to articulate a convincing argument on either theoretical, moral, or legal grounds to recognize active role of stakeholders in management and control of a firm.

In considering an Islamic view of the role of stakeholders, it is noted that two fundamental concepts of Islamic economic system pertaining to property rights and contracts govern the economic and social behavior of individuals, society and state. These two principles also dictate objective function of economic agents, including legal entities like firms. A firm in Islamic economic system can be viewed as ‘nexus-of-contracts’ whose objective is to minimize transaction cost to maximize profits and returns to investors subject to constraints that these objectives do not violate property rights of any party whether it interacts with the firm directly or indirectly. In pursuit of these goals, firm honors its obligations to explicit and implicit contracts without impinging on the social order. This definition incorporates stakeholders’ role in its view of the firm and supports recognition and protection of their rights. A discussion of Islam’s principles of property rights and contracts in Sections II and III provide a foundation for this proposition and also clarifies issues, which the conventional stakeholder theory has yet to resolve.
The design of governance system in Islam can be best understood in light of principles governing the rights of individual, society, and state, the laws governing property ownership, and the framework of contracts. Islam’s recognition and protection of rights is not limited to human beings only but encompasses all forms of life as well as environment. Each element of Allah (S.W.T.)’s creation has been endowed with certain rights and each is obligated to respect and honor the rights of others. These rights are bundled with the responsibilities for which humans are held accountable. Shari[ah offers a comprehensive framework to identify, recognize, respect and protect rights of every individual in creation, community, society, and the state. Islamic scholars and Fuqha’ have defined and codified detailed principles identifying these rights. The importance of being conscious and mindful of the rights of others (including stakeholders– human or non-human) and the significance of discharging the responsibilities associated with such rights is reflected by the following saying of the Prophet (pbuh):

‘So give to everyone who possesses a right (kull dhi haq) his right.’
The term right (haq) denotes something that can be justly claimed, or the interests and claims that people may have been granted by Shari[ah. Majority of Shari[ah scholars and jurists hold that similar to a physical property, rights are also property (al mal) because, like physical property which has beneficial uses and is possessable, rights have beneficial uses and are regarded as capable of being possessed. Rules defining the property rights in Islam deal with the rights of ownership, acquisition, usage and disposition of the property. Any violation of these rules is considered a transgression and leads to disruption in social order.

The notion of ownership in Islam is two-tiered: (i) real and absolute, and (ii) delegated and restricted through time-bound possession. The former belongs to Allah (S.W.T.) only because He is the ultimate creator while the latter is reserved for the man in order that he becomes materially able to perform his duties and obligations. Therefore, the first axiom of the property rights in Islam is that Allah (S.W.T.)– the real owner, creator, and benefactor– reserves the right to prescribe for man– His vicegerent, recipient and possessor-owner– rules governing the property while it is in the temporal possession of man. Ownership rights in Islam originate from the concept of Khilafah (stewardship) as the Qur’an and Sunnah clearly and explicitly state that Allah (S.W.T.) is the sole owner of property and that man as vicegerent of Allah (S.W.T.) is merely trustee and custodian. This relationship implies that man has the right to use and manage his ‘private property’ in a manner similar to that of a custodian and trustee. Property is not an end itself, but a means to discharge effectively man’s responsibilities as the vicegerent of Allah (S.W.T.).

The second axiom of property rights in Islam is that this right of possession is a collective right and individuals can only earn a priority in the use of these resources. While a part of these resources are reserved for the exclusive possession of the collectivity, the remaining part is allowed to become of individual’s without the collectivity losing its initial right of possession to these resources. However, when an individual applies his creative labor to these resources he gains a right of priority in the use and enjoyment of the resulting product, without the rights of others being nullified. Individuals are to use these resources with the full understanding that Allah (S.W.T.)’s ultimate ownership and the collectivity’s prior right, remain intact. This notion is the result of the permanence, constant, and invariant ownership of Allah (S.W.T.) of all the resources, and by implications, that of prior right to these resources by the collectivity. This proposition becomes a legislative basis for requiring preservation of society’s well-being and interests.

Social interest and the collective dimensions of human life demands that individual freedom is kept within certain limits and a balance is created such that the individual, the society, and the state each has a claim on property rights in respect of the roles assigned to them. Property rights of these three agents should not come into conflict with one another, nor should the exercise of those rights by any one of these agents jeopardize the exercise of rights by the others. If as a result of the growth of the society, division of labor, or increasing complexities of markets, either the obligation to share is shirked or the rights of the society and the cohesion of the community are undermined, or a harmonious social order is at stake, the justification is created for the intervention of the legitimate authority to take corrective measures.

Second axiom of the property rights implies that while individual’s possession of these resources and his share in the outcome is allowed, sanctioned and protected by the Shari[ah, it is so as long as it does not come into conflict with society’s interest and well being. Hence, private initiative and choice are recognized, but such recognition is not allowed to subvert the principle of sharing or lead to violation of the rights of the society and the state. However, once the individuals have discharged the duties to the society and the state, in accordance with prescribed manner and amount, and are not in violation of the rules of Shari[ah, their rights to their possessions is held inviolate and no one has a right to force appropriation (or expropriation) of that person’s property to anyone else. This is further endorsed by hadith stating that “Muslims’ blood, property and dignity are protected against each other.”

Ibn Taimiyah views property as a right granted by Shari[ah to utilize an object but a right of varying kinds and degrees. Sometimes the right is an extended one so that the proprietor can sell or give away the object, lend it or make a gift of it, bequeath it or use it for productive purposes; but sometimes the right is incomplete, and therefore the proprietor’s rights are limited or restricted. Rules concerning property acquisition, possession, usage and disposal should be looked at as regulations rather than the restrictions. Basic conditions to maintain lawful rights to property are that (1) property should not have been acquired by unlawful means (means repugnant to Shari[ah), (2) the acquisition and its continuity should not result any damage or harm to others; and (3) the acquisition of property should not invalidate any valid claim nor should establish an non-valid one. Islam places great emphasis on acquiring and maintaining rights to property through lawful means but does not impose any limits on the amount of the property owned, i.e. imposition of any cap on the amount of wealth an individual can accumulate as long as the individual is conforming to the obligations set by Shari[ah.

Islam recognizes two ways in which an individual can obtain rights to property: (1) through his own creative labor and/or (2) through transfer–via exchange, contract, grants or inheritance– of property rights from another individual who has gained title to the property or asset through his own labor. Property acquired through non-permissible and unjustifiable means like gambling (maysir), bribing, stealing, cheating, forgery, coercion, or illegal trading does not qualify as ‘al-mal’ as defined by Shari[ah and therefore is proscribed and forbidden. Consequently, any property, which is considered counter-productive or non-beneficial, loses its legitimacy and its associated rights. Hoarding with the intention to creating artificial scarcity and profiteering is considered unacceptable means of building wealth and property. Similarly, property acquired through breach of trust, adulteration, non-compliance with weights and measures, or unethical means does not satisfy the definition of property (al-mal) and therefore it’s ownership is not considered legitimate.

Concomitant with property rights, the Shari[ah imposes responsibilities, among which are the obligations– severely incumbent upon the individual– not to waste, destroy, squander, or to use the property for purposes not permitted by the Shari[ah. To do so would be to transgress the limits set on one’s right and an encroachment on the rights of the others. The right of the collectivity to the property is further protected by the Shari[ah through the limitations imposed on the right of disposition of the property by the person who has gained priority in the use and enjoyment of that property. Hence, while the right of use and enjoyment of the property is affirmed by the Shari[ah, the exclusive and absolute right of disposition of the property is rejected. . The prohibition of israf and tabdhir (wasting and squandering) in all areas applies to property as well. The individual may not make an alteration in his property that may harm even his neighbor. If the property owner proves his inability to use the property properly (within boundaries defined by Shari[ah), he forfeits his ownership rights. Under such conditions, the legitimate authority is fully justified in withdrawing the rights of usage of that property in order to protect it from the misuses by the owner. This position of the Shari[ah is in conformity with the Islamic conception of justice (al-[adl and al-ihsan) and the rights and responsibilities of the individual and the community.

Islam’s concept of property rights differs in many aspects from the concept of property rights in other economic systems. On one extreme, proponents of market-based system argue in favor of individual-centered private property rights as fundamental right while on the other extreme a small minority believes that private property right is fundamentally immoral. On the contrary, Islam promotes a balance among rights of individuals, society and the state. This concept sharply contrasts with the self-centered utility maximizer economic agent idealized in neoclassical economics in an unbounded, insatiable, quest for acquisition and accumulation. Before the full market society came to prevail in the West, a great deal of property right in land and other assets was a right to use and enjoy the asset but not a right to dispose of it. The development of full market society required revision of this notion of property since it was considered that the right not to be excluded from the use or enjoyment of something that is not marketable. It was deemed impossible to reconcile this particular right with a full market economy. Hence, of the two earlier kinds of property rights—the right to exclude others and the right not to be excluded by others-the second was all but abandoned and the conception of property rights was narrowed to cover only the right to exclude others. In Islam, however, this right is preserved without in any way diminishing the role of the market as resource allocative and an impulse-transmitting mechanism. Islam does not endorse the notion of conventional system that a person does no harm to members of his group if as a result of his effort he is better off and others are no worse off than they would otherwise be.

Several conclusions can be drawn from the preceding discussion. First, Islam’s concept of property rights is different such that the individual has a delegated right on the property whose acquisition, usage and disposal are subject to rules including the principle of sharing as dictated by Shari[ah. Second, whereas Islam strongly recognizes individual’s private property rights, these rights are governed by rules designed to protect the rights of society and the state. Third, by virtue of the first and second axiom of property rights, every individual, group, community, society and the state becomes a stakeholder whose rights are granted and preserved by Shari[ah to promote social order and economic development. Fourth, whereas it is difficult to recognize or justify some rights of others in a formal economic theory in the conventional system without drawing any reference to ethics and morality, such problem does not exist in Islam where everyone’s rights and recognized are protected by Law (Shari[ah). Finally, inclusion (or exclusion) and recognition (or denial) of rights of stakeholders in Islamic economic system are based on foundations of rules and laws, which need no justification merely on the grounds of morality alone but are derived from principles aimed at creating a just and balance in economic and social system.

Whereas Shari[ah guarantees some basic property rights to individuals by virtue of them being member of the society, rights of a firm or a legal entity like corporation are earned and acquired. It is not the firm, which accrues property rights but it is the property acquired in course of the firm’s economic activity that has property rights and claims. Once a property is earned or acquired by the firm, it is subject to the same rules of sharing and prohibition of wasting which apply to property of individuals. Firm’s property rights also come with similar claims and responsibilities as individuals. This implies that firm is expected to preserve property rights of not only local community or society but also of those who have participated in the process of acquiring or earning the firm’s property. No action of the firm that violates basic set of property rights of those with whom firm interacts will be acceptable.

Principles of property rights in Islam clearly justify inclusion of stakeholders into decision-making and accountability of an economic agent’s activities. This inclusion is based on the principles that (a) collectivity (community, society, state) has sharing rights with the property acquired by either individuals or firms, (b) exercise of property rights should not lead to any harm or damage to property of others (including stakeholders), (c) rights of others are considered as property and therefore are subject to rules regarding violation of property rights, and finally (d) any property leading to the denial of any valid claim or right would not qualify to be recognized ‘al mal’ and therefore will be considered unlawful according to Shari[ah.
The significance of contractual obligations in economic and social relations cannot be over-emphasized. The whole fabric of Divine Law is contractual in its conceptualization, content, and application. Islam forcefully places all economic relations on the firm footing of ‘contractus.’ It recognizes only one status, i.e. moral consciousness and virtue, all other status on any basis is obliterated. The very foundation of the Shari[ah is covenant between Allah (S.W.T.) and man; this imposes on man the duty of being faithful to his word. On Allah’s side, the Qur’an often states that “Allah will not fail in His Promise.” On man’s side, his commitment to the contractual obligations is considered the best form of honoring his acceptance of Allah (S.W.T.) as his Lord.

A contract in Islam is a time-bound instrument, which stipulates the obligations that each party is expected to fulfill in order to achieve the objective(s) of the contract. Contracts are considered binding and their terms are protected by the Shari[ah, no less securely than the institution of property. The freedom to enter into contracts and the obligation to remain faithful to their stipulations has been so emphasized in Islam that a characteristic, which distinguishes a Muslim, is considered to be his faithfulness to the terms of his contracts. In the Shari[ah, the concept of justice, faithfulness (called Amanah, whose antonym is khiyanah meaning betrayal, faithlessness and treachery), reward and punishment are linked with the fulfillment of obligations incurred under the stipulation of the contract.

Contractual foundation of the Shari[ah judges the virtue of justice in man not only for his material performance but also by the essential attribute of his forthright intention (niyya) with which he enters into every contract. This intention consists of sincerity, truthfulness, and insistence on rigorous and loyal fulfillment of what he/she has consented to do (or not to do). This faithfulness to one’s contractual obligations is so central to Islamic belief that when the Prophet was asked “who is the believer?” He replied that “a believer is a person in whom the people can trust their person and possessions.” In a very terse, direct and forceful verse, the Qur’an exhorts “O you who believe, fulfill contracts.” So basic is the notion of contracts in Islam that every public office is regarded, primarily as a contract and agreement, which defines the rights, and obligations of the parties.

Implication of the emphasis placed on contracts in Islam is that it makes the members of the society and economic agents aware of the obligations arising from their contractual agreements– verbal or written, explicit or implicit. In case of explicit contracts, parties to the contract clearly stipulate expected behavior and duties with respect to the terms of the contract. This contract is to be free of information asymmetry; parties intend to comply with the terms of the contract and are fully aware of rights and obligations. Importantly, the state ensures enforceability of the contract in case of violations by either party. On the other hand, implicit contracts are not formal contracts with clearly defined terms but are claims and obligations that come with the rights to be part of a society. Principles of sharing and rights of collectivity to property rights are form of implicit contracts to preserve and protects rights of others and thus establish a wide spectrum of implicit obligations. Within property rights framework, one has contractual obligations to others including the community and the society according to the rules of Shari[ah, and honoring of this obligation is considered a sacred duty. This sacred duty to preserve property rights of others is moral, social and legal foundation for recognizing and enforcing obligations to implicit contracts.

Islam’s framework of contracts places equal emphasis on obligations arising from both explicit and implicit contracts and this behavior is expected from individuals as well as from public and private entities. Therefore, just as it is incumbent upon economic agents to honor explicit contracts, it is obligatory on them to preserve sanctity of implicit contracts by recognizing and protecting property rights of stakeholders, community, society and state. Whereas conventional stakeholders’ theory is searching for sound arguments to incorporate implicit contracts in the theory of firm, in Islamic economic system rights of and obligations to stakeholders are taken for granted.

Islam’s framework of property rights and contacts also establish guidelines regarding who can qualify as a stakeholder and if such stakeholder has right to influence the firm’s decision-making and governance. In a very broad sense, any group or individuals with whom firm has any explicit or implicit contractual obligations qualifies as a stakeholder even though firm may have formal contracts with them through mutual bargaining. In Islam, a stakeholder is the one whose property rights are at stake or at risk due to voluntary or involuntary actions of the firm. In case someone’s rights are encroached or threatened as result of firm’s operations, that individual, group, community or society becomes a stakeholder. This risk-based definition of stakeholder is supported by a saying of Prophet that “a Muslim is the one from whose hand others are safe.”

Having established the firm’s responsibility to society and stakeholders, question still remains whether stakeholders have the right of participation in decision-making. Or, if they are given right to participate, is it practical and operationally efficient? These issues are discussed in detail in the following section.
Corporate Governance Structure:
Once the rights of stakeholders are recognized, one can focus on what determines the best institutional arrangements to protect the stakeholders’ rights to its true spirit. Or what structure of governance can yield the optimal results. Within the conventional stakeholder theory, there are opposing arguments with regards to stakeholders’ participation in the governance. Some argue that there is greater need that a firm should internalize the externalities on the various stakeholders and this internalization should be in form of active participation in the process and structure of corporate governance. Others argue that each stakeholder or constituency is free to bargain with a firm and to choose the most effective means for protecting its interests. Some stakeholders may derive little benefit from the set of rights negotiated by shareholders and therefore would prefer other safeguards for their interests. Consumers, for example, instead of seeking a seat on the board of directors, or the benefit of fiduciary duties may settle for manufacturers’ warranties, consumer and product safety laws, and tort liability system because these protections better serve their interests.

Islamic economic system is a rule-based incentive system based on the rules of Shari[ah with the ultimate goal of maintaining a just and harmonious social order. Rules are restrictions on what the members may do without upsetting the social order on whose existence all members count in deciding on their individual choices and actions. Therefore, attachment to and observance of rules will guide the member of the society in their actions. The rules themselves are composed of those which deal with the individual’s body and his state of consciousness, those which govern his relationships with other members of the society, those which guide his relationship with the collectivity and finally those which constitutes the code of conduct necessary for the community as a whole. Rules serve to prevent conflicts, reconcile the different purpose of many individuals and facilitate cooperation among them. If as a result of growth of the society, division of labor, or increasing complexities of markets, either the obligation to contracts or property rights are shirked or the rights of the society and the cohesion of the community are undermined, the justification is created for the intervention of the legitimate authority to take corrective measures. Compliance with them promotes social integration and unity and preserves the intended social order.

In Islam, expected behavior of a firm would not be any different from the expected behavior of any other member of the society. Since firm itself does not have a conscious, behavior of its managers becomes the behavior of the firm and their actions are subject to the same high standards of moral and ethical commitment expected from a Muslim. In other words, firm’s economic and moral behavior is shaped by its managers acting on behalf of the owners and it becomes their fiduciary duty to manage the firm as a trust for all the stakeholders and not for the owners alone. Consequently, it will be incumbent upon managers to ensure that behavior of the firm conforms to the principles and the rules of Shari[ah. If there is any deviation, institutional arrangement discourage such deviation. In an ideal situation where all agents are Mo’meneen, those among Muslims whose behavior correspond fully to the requirement of the Shari[ah, the faithfulness to the terms of contracts and accountability to respect others’ property rights will lead to elimination of problems due to asymmetric information, moral hazard and adverse selection and thus would guarantee optimal governance. In a less perfect world where commitment to contracts may be influenced by personal interests at the cost of interests of collectivity to induce deviation from the terms of contract, design of a governance structure will be required to ensure faithfulness to agent’s contractual agreements and protections of everyone’s rights.

The design of a corporate governance system in Islamic economic system entails implementation of a rule-based incentive system such that the compliance with the rules ensures an efficient governance system to preserve social justice and order among all members of society. This would imply the design of institutions and rules that induce or, if needed, compel managers to internalize the welfare of all stakeholders. The rights that are claimed for stakeholders are not ends in themselves– which ought to be recognized in any form of economic organization– but means for protecting constituency rights. In an Islamic system the observance of rules of behavior guarantee internationalization of stakeholder rights (including those of the society at large). No other institutional structure is needed. It is the Islamic government that specifies the appropriate corporate governance structure, “incorporating all stakeholders’ rights into fiduciary duties of managers” of the firm on behalf of none– investors or stakeholders. So no other institutional arrangement that would allow individual non-investor stakeholders to negotiate directly with the firm is necessary. Incorporating all stakeholders’ right into fiduciary duties of managers would be counter-productive and would lead to sub-optimal results. The important point is that each stakeholder is given freedom of bargaining to protect its rights and there are systematic institutional arrangements in place to provide protection and to mediate where disputes and disagreements arise.
Institutional arrangements can be part of system-wide infrastructure surrounding the governance structure of the firm. For example, because contracts are invariably incomplete, judicial interpretations can fill in the gaps. It is permissible to regard employment law, consumer law, tort law, as well as judicial rulings and administrative regulations, as part of the contracts that various stakeholders have with the firm. Similarly, the concept of Shari[ah boards is very unique to Islamic financial system. A Shari[ah board, consisting of Fuqaha’ (scholars in Shari[ah matters) has been used to oversea the operation of a financial institution to ensure that the operations and code of conduct of Islamic bank is according to the rules of Shari[ah. A Shari[ah board for every firm, which is seen in present architecture of Islamic banking, is not efficient whereas only one set of rules is needed for appropriate corporate governance based on the Shari[ah for all firms. The same idea of Shari[ah board can be extended to a system-level board consisting of scholars from different disciplines including Shari[ah, economics, finance, and commercial law, to ensure that rules are defined and enforced so that economic agents fully comply with contractual obligations to all the stakeholders.
This paper examines the conventional stakeholder theory of corporate governance, which views a firm as a ‘nexus-of-contracts’ with different stakeholders and argues that firm’s objective should be to maximize welfare of all stakeholders. This theory has yet to offer strong arguments with regards to who is a stakeholder and why firm has any obligation to non-owner stakeholders because of absence of theoretical foundation to incorporate morals, ethics and trust in the economic theory. This paper argues that the principles of property rights and contracts in Islam offer theoretical foundation to acknowledge the rights of all stakeholders.

Islam’s principles of property rights, contracts, and just social order define the business environment where economic agents are morally conscious of protecting property rights and contractual obligations to each other whether acting as managers, employees, suppliers, customers, or in any other capacity. All participants in economic activities, whether individuals, firms, corporations, non-profit organization or public institutions, are subject to the same degree of commitment. Notion of sanctity of contractual obligations is not limited to explicit contracts, which are well defined, stipulated and documented, but is equally applicable to implicit contracts, which are incomplete in nature. Property rights of all contractual parties, i.e. individuals, or local communities, or intangible legal entities, or the society are preserved and protected. Keeping in mind that voluntary behavior of all economic agents may deviate from the expected behavior, implementation of an incentive system according to the guidelines of Shari[ah will ensure that all economic activities adhere to Shari[ah’s principles of property rights and contracts so that an optimal social order is achieved. It is not necessary for each stakeholder to be a participant in the decision-making as long as their rights are protected through sound institutional arrangements.

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Strategi Bisnis : Strategi Pemasaran

July 16, 2009 Leave a comment

By: M. Suyanto

Strategi pemasaran meliputi segmentasi pasar dan pembidikan pasar, strategi produk, strategi harga, strategi tempat dan strategi promosi. Pasar yang menonjol pada masa Nabi Muhammad s.a.w. adalah pasar konsumen. Untuk pemasaran produk konsumen, variabel segmentasi utama adalah segmentasi geografis, segmentasi demografis, segmentasi psikografi, segmentasi perilaku dan segmentasi manfaat.

1. Segmentasi Pasar dan Pembidikan Pasar.

Segmentasi geografi merupakan pembagian pasar menjadi unit-unit geografis yang berbeda, misalnya wilayah, negara, propinsi, kota, kepulauan dan berdasarkan musim. Surat Quraisy ayat 1-2: Karena kebiasaan orang-orang Quraisy (yaitu) kebiasaan mereka bepergian (berdagang) pada musim dingin dan musim panas. Pada musim panas biasanya mereka berdagangan sampai Busra (Syiria), sedangkan pada musim dingin mereka berdagang sampai Yaman. Demikian pula yang dilakukan Nabi Muhammad s.a.w., terutama sebelum pada masa kenabian. Pasar yang terkenal pada masa jahiliyah yang terletak di utara Kota Mekah antara meliputi Busra, Dumatul Jandal, dan Nazat. Pasar yang terletak di selatan kota Mekah mencakup Mina, Majinna, Ukaz, Sana’a, Aden, Shihr, Rabiyah, Sohar dan Daba. Sedangkan pasar yang di timur kota Mekah terdiri dari Musyaqqar, Sofa dan Hijar.

Reruntuhan Kota Busra

Segmentasi demografi yang dilakukan Muhammad adalah pasar dikelompokkan berdasarkan keluarga, kewarganegaraan dan kelas sosial. Untuk keluarga, Muhammad menyediakan produk peralatan rumah tangga. Sedangkan produk yang dijual Nabi Muhammad s.a.w. untuk warga negara asing di Busra terdiri dari kismis, parfum, kurma kering, barang tenunan, batangan perak dan ramuan.
Segmentasi psikografi yang dilakukan Nabi Muhammad s.a.w. mengelompokkan pasar dalam variabel gaya hidup, nilai dan kepribadian. Gaya hidup ditunjukkan oleh orang-orang menonjol dari pada kelas sosial. Minat terhadap suatu produk dipengaruhi oleh gaya hidup, maka barang yang dibeli oleh orang-orang tersebut untuk menunjukkan gaya hidupnya. Nabi mengetahui kebiasaan orang Bahrain, cara hidup penduduk Bahrain, cara mereka minum dan cara mereka makan.
Segmentasi perilaku yang dilakukan Nabi Muhammad s.a.w. membagi kelompok berdasarkan status pemakai, kejadian, tingkat penggunaan, status kesetiaan, tahap kesiapan pembeli, sikap. Pasar dapat dikelompokkan menjadi bukan pemakai, bekas pemakai, pemakai potensial, pemakai pertama kali dan pemakai tetap dari suatu produk. Hashim bin `Abdul Manaf memulai karir bisnisnya dengan memperoleh ijin resmi untuk menjual barang-barang dari kulit di Bizantium di wilayah Syiria. Demikian pula `Amr bin al-`As dan pebisnis Hijaz menjual barang-barang dari kulit di Mesir dan Abissinia.
Segmentasi manfaat mengklasifikasikan pasar berdasarkan atribut (nilai) atau manfaat yang terkandung dalam suatu produk. Konsumen akan mencari produk yang menyediakan manfaat khusus untuk memuaskan kebutuhannya. Nabi Muhammad s.a.w. tidak hanya berdasarkan manfaat material, tetapi lebih dari itu adalah manfaat yang disebut maslahah. Maslahah merupakan kepuasan kebutuhan manusia yang luas mencakup kebutuhan material (al-mal), jiwa (al-nafs), kebenaran (ad-din), kecerdasan (al-aql) dan keluarga (al-nasl). Rasulullah s.a.w. menganjurkan agar mencari nilai maslahah, dengan memberikan do’a sewaktu memasuki pasar. Dari Umar bin Al Khaththab RA bahwa Rasulullah SAW bersabda, ”Barangsiapa memasuki pasar kemudian mengucapkan ’laa ilaaha illallah wahdahu laa syariika lah lahulmulku wa lahulhamdu yuhyii wa yumiitu wa huwa hayyum laa yamuutu biyadihil khairu wa huwa ’alaa kulli syai in qadir’ (Tidak ada sesembahan yang berhak disembah kecuali Allah semata, tidak ada sekutu bagi-Nya kekuasaan dan segala puji milik-Nya, yang menghidupkan dan mematikan. Dia Maha hidup dan tidak pernah akan mati, di tangan-Nya segala kebaikan dan Dia maha kuasa atas segala sesuatu ) maka Allah tetapkan baginya satu juta kebaikan, Allah menghapus darinya satu juta keburukan, dan Allah mengangkat baginya satu juta derajat.” (HR. At-Tirmidzi).
Setelah melakukan segmentasi pasar, berikutnya, pemasar harus membidik segmen pasar yang terbaik. Untuk melakukannya, pemasar terlebih dulu harus mengevaluasi potensi laba masing-masing segmen. Nabi Muhammad s.a.w. memasarkan barang-barang manufaktur, pakaian, barang mewah dan untuk orang kaya Mekah dan memasarkan peralatan rumah tangga untuk keluarga biasa. Sedangkan warga negara asing di Busra memasarkan kismis, parfum, kurma kering, barang tenunan, batangan perak dan ramuan. Dari Abu Hurairah RA bahwa Rasulullah SAW pernah bersabda, ”Wahai manusia ! Sesungguhnya orang yang kaya itu bukan lantaran banyak harta benda, akan tetapi orang kaya adalah orang yang kaya jiwa.” Allah azza wa jalla memberikan bagian rezeki kepada hamba-Nya sesuai yang telah ditetapkan baginya, maka bersikap baiklah dalam menuntut rezeki, ambillah apa yang halal dan tinggalkanlah yang harum.” (HR. Abu Ya’la, sanadnya hasan, dan yang pertama adalah Muttafaq ’Alaih)

2. Penentuan Posisi (Positioning)

Pembidikan pasar juga berarti menentukan pesaing. Pada masa Nabi Muhammad s.a.w. yang menonjol dalam kafilah dagang adalah kesukuan dan kepribadian. Kafilah dagang harus meneliti posisi pesaing dan memutuskan posisinya yang terbaik. Penentuan posisi pedagang adalah tindakan untuk merancang citra pedagang serta nilai yang ditawarkan sehingga pelanggan dalam suatu segmen memahami dan menghargai kedudukan pedagang dalam kaitannya dengan pesaingnya. Tugas penentuan posisi terdiri dari tiga langkah: mengenali keunggulan bersaing yang mungkin untuk dimanfaatkan, memilih yang paling tepat dan secara efektif mengisyaratkan kepada pasar tentang posisi yang dipilih pedagang.
Kafilah dagang Quraisy mempunyai positioning sebagai ”pemelihara Ka’bah”, sehingga keempat putra Abdul Manaf, yaitu Hasyim, Abdul Syam, Muttalib dan Naufal berhasil mengantongi ijin perjalanan dan keamanan dagang yang disebut Aylaf (persetujuan) dari penguasa-penguasa tetangga. Sedangkan Muhammad mempunyai positioning sebagai ”Al Amin” yang berarti orang yang dapat dipercaya.

3. Strategi Produk

Produk pada dalam Al Qur’an dinyatakan dalam dua istilah, yaitu al-tayyibat dan al-rizq. Kata al-tayyibat digunakan 18 kali, sedangkan kata al-rizq digunakan 120 kali dalan Al-Qur’an. Al-tayyibat merujuk pada suatu yang baik, suatu yang murni dan baik, sesuatu yang bersih dan murni, sesuatu yang baik dan menyeluruh serta makanan yang terbaik. Al-rizq merujuk pada makanan yang diberkahi Tuhan, pemberian yang menyenangkan dan ketetapan Tuhan (Ali, 1975). Menurut Islam, produk konsumen adalah berdaya guna, materi yang dapat dikonsumsi yang bermanfaat yang bernilai guna yang menghasilkan perbaikan material, moral, spiritual bagi konsumen. Sesuatu yang tidak berdaya guna dan dilarang dalam Islam bukan merupakan produk dalam pengertian Islam. Dalam barang ekonomi konvensional adalah barang yang dapat dipertukarkan. Tetapi barang dalam Islam adalah barang yang dapat dipertukarkan dan berdaya guna secara moral (Choudhury, 1991). Dari Abu Daarda r.a., ia berkata, ”Rasulullah s.a.w. bersabda, “Sesungguhnya rezeki itu akan mencari seorang hamba sebagimana kematian mencarinya.” (HR. Ibnu Hibban, Al Bazzar, dan Arth-Thabrani dan lafazhnya, ”Sungguh rezeki itu akan mencari seorang hamba lebih banyak daripada apa yang dicari oleh ajalnya.” Dari Sa’d bin Abi Waqqash RA, ia berkata, “Aku mendengar Rasulullah s.a.w. bersabda, “Sebaik-baik dzikir adalah yang samar dan sebaik-baik rezeki adalah yang mencukupi.” (HR. Abu Awanah dan Ibnu Hibban).
Produk meliputi kualitas, keistimewaan, desain, gaya, keanekaragaman, bentuk, merek, kemasan, ukuran, pelayanan, jaminan dan pengembalian. Kualitas didefinisikan oleh pelanggan. Kualitas merupakan seberapa baik sebuah produk sesuai dengan kebutuhan spesifik dari pelanggan. Dari Jabir r.a., katanya : ”Nabi s.a.w. melarang menjual buah-buahan sebelum masak.” Lalu ditanyakan orang kepada beliau, ”Bagaimanakah buah yang masak?” Jawab Nabi s.a.w. :”Kemerah-merahan, kekuning-kuningan dan dapat dimakan seketika.” (Bukhari).
Keistimewaan merupakan karakteristik yang melengkapi fungsi dasar produk. Produk istimewa pada masa jahiliyah adalah perhiasan dari emas, perak dan pakaian sutra. Sebelum Muhammad menjadi Nabi perhiasan emas dan pakaian sutra boleh dipakai oleh pria dan wanita. Dari Ibnu Umar r.a.,Rasulullah s.a.w.memakai cincin dari emas atau perak dan dijadikannya muka cincin itu di sebelah telapak tangan beliau dimana terukir tulisan ”Muhammad Rasulullah”. Orang banyak mulai memakai cincin seperti itu pula. Setelah beliau melihat orang ramai memakaicincin seperti itu, beliau lalu membuang cincin itu dan bersabda :”Saya tidak akan memakainya lagi untuk selama-lamanya.” Kemudian beliau memakai sebuah cincin perak. Orang banyak juga mulai memakai cincin perak. Ibnu Umar berkata : Setelah Nabi s.a.w., orang yang memakai cincin itu adalah Abu Bakar, lalu Umar, lalu Utsman, sampai cincin itu jatuh dan hilang oleh Utsman ke dalam sumur di Aris.
Produk ini lebih ditujukan kepada wanita dan untuk dijual. Dari Abdullah bin Umar r.a, katanya : “Nabi s.a.w. pernah mengirimkan pakaian sutera atau sutera campuran kepada Umar r.a., kemudian beliau melihat pakaian itu dipakai oleh Umar. Sabda beliau, “Sesungguhnya aku kirimkan pakaian itu kepadamu, bukanlah untuk kau pakai. Yang akan memakainya ialah orang-orang yang tidak beruntung baginya. Kukirimkan kepadamu ialah supaya engkau dapat mengambil manfaat daripadanya, yakni supaya kau jual.”(Bukhari).
Desain merupakan totalitas keistimewaan yang mempengaruhi cara penampilan dan fungsi suatu produk dalam hal kebutuhan pelanggan. Pakaian putih merupakan pakaian terbaik. Dari Ibnu Abbas r.a. bahwa Rasulullah bersabda, ”Pakailah pakaian kalian yang berwarna putih, karena pakaian putih adalah sebaik-baik pakaian kalian dan kafanilah mayit kalian dengannya.”(Abu Daud, Tirmidzi, ibnu Hibban). Ada tambahan : ”Karena sesungguhnya pakaian itu lebih suci dan lebih baik.”(Tirmidzi, Nasa’i, Ibnu Majah dan Al Hakim). Dari Aisyah r.a., ia berkata : ”Rasulullah s.a.w. pernah keluar dengan memakai pakaian bulu yang dihiasi dengan gambar pelana unta dari rambut hitam.” (Muslim). Demikian pula kamar Rasulullah s.a.w. mempunyai desain interior yang menawan yang membuat tenteram penghuninya.
Gaya menggambarkan penampilan dan perasaan itu bagi pelanggan. Dari Aiman r.a.,katanya : Saya masuk kerumah Aisyah, di situ ada baju perempuan yang terbikin dari benang seharga lima dirham. Kata Aisyah : ”Lihatlah sahaya perempuan, perhatikanlah dia! Ia merasa megah karena memakai pakaian itu dalam rumah. Saya pernah memakai baju itu pada masa Rasulullah s.a.w. Setiap wanita yang ingin berdandan di Madinah, selalu mengirim utusan kepadaku untuk meminjaminya”(Bukhari).

Desain interior kamar Rasulullah s.a.w.

Produk fisik atau berwujud membutuhkan kemasan agar tercipta manfaat-manfaat tertentu seperti misalnya perlindungan, kemudahan, manfaat ekonomi dan promosi. Pedang Rasulullah s.a.w. mempunyai selongsong yang indah. Demikian pula tempat sikat gigi (siwak) Rasulullah s.a.w. mempunyai kemasan yang cantik.

Tempat sikat gigi Rasulullah s.a.w.

Pelayanan pada pelanggan yang memang diingini oleh para pelanggannya. Nabi Muhammad s.a.w. tetap memberikan pelayanan terbaik, meskipun kadangkala pelanggannya berbuat kasar. Dari Abu Hurairah r.a. katanya : “Seorang laki-laki datang kepada Nabi s.a.w., menagih piutangnya. Dan orang itu menagih dengan sikap kasar. Karena itu timbullah para sahabat hendak memukul orang itu. Beliau bersabda, “Biarkanlah dia ! Dia berhak untuk menagih.” Selanjutnya beliau menambahkan, “Berikanlah kepadanya unta yang sebanding dengan untanya?” Kata mereka, “Ya, Rasulullah !Tidak kami dapati unta yang sebanding dengan untanya, tetapi ada yang lebih daripada untanya.” Sabda beliau, “Berikanlah kepadanya ! Sesungguhnya orang yang paling baik di antaramu, ialah yang paling baik pembayarannya.” (Bukhari).

4. Strategi Penetapan Harga

Strategi harga yang digunakan Nabi Muhammad s.a.w. berdasarkan prinsip suka-sama-suka. Dalam surat An Nisaa’ ayat 29 : ”Hai orang-orang yang beriman, janganlah kamu saling memakan harta sesamamu dengan jalan yang batil, kecuali dengan jalan perniagaan yang berlaku dengan suka sama-suka di antara kamu. Dan janganlah kamu membunuh dirimu, sesungguhnya Allah adalah Maha Penyayang kepadamu.” Demikian pula Anas meriwayatkan bahwa Nabi pernah menawarkan sebuah kain pelana dan bejana untuk minum seraya mengatakan : “Siapakah yang ingin membeli kain pelana dan bejana air minum?” Seorang laki-laki menawarnya seharga satu dirham dan Nabi menanyakan apakah ada orang yang akan membayar lebih mahal. Seorang laki-laki menawar padanya dengan harga dua dirham dan ia menjual barang tersebut padanya (Timidzi, Abu Dawud dan Ibnu Majah). Dari Anas r.a, katanya Nabi saw. bersabda : “Hai Bani Najjar ! Tetapkanlah harga kebunmu kepadaku didalamnya ada runtuhan dan pohon kurma.” (Bukhari).
Strategi harga yang digunakan Nabi Muhammad s.a.w. yang lain adalah prinsip tidak menyaingi harga orang lain dan tidak menyongsong membeli barang sebelum dibawa ke pasar serta tidak berbohong. Dari Abdullah bin Umar r.a. katanya Rasulullah saw, bersabda ”Janganlah kamu menjual menyaingi penjualan saudaramu.” (Bukhari). Dari Abu Hurairah r.a. katanya : “Rasulullah saw melarang orang kota menjualkan barang (dagangan) orang desa dan janganlah kamu membohongkan harga barang dan janganlah seseorang menjual menyaingi harga jual saudaranya, janganlah menawar sesuatu yang sedang dalam penawaran saudaranya dan jangan seorang wanita minta supaya diceraikan saudaranya (madunya) untuk menunggangkan isi bejananya.” (Bukhari).
Nabi Muhammad s.a.w. menetapkan strategi harga dengan prinsip membantu orang lain. Dari Jabir bin Abdullah r.a., katanya : “Aku pernah bersama-sama dengan Nabi saw. dalam suatu peperangan tetapi untaku terlambat karena lelah. Nabi saw. datang kepadaku seraya berkata, “Jabir !” Aku menyahut, “Ya, Rasulullah !” Tanya Nabi, “Bagaimana kabarmu ?“ Jawabku, “Untaku lambat dan lelah : makanya aku terlambat.”Lalu dihela beliau untaku itu dengan tongkatknya, dan bersabda : “Nah, naiklah !” Lalu aku naiki unta itu, dan agak kutahan jalannya supaya jangan mendahului Rasulullah saw.” Tanya beliau, “Apakah engkau sudah menikah ?” Jawabku, “Sudah, ya Rasulullah.” Tanya beliau pula, “Apakah gadis atau janda ?” Jawabku, “Dengan janda, ya Rasulullah.” Sabda beliau pula, “Kenapa tidak dengan gadis saja. Engkau dapat bersedagurau dengannya dan dia dapat bersendagurai denganmu.” Jawabku, “Aku mempunyai banyak saudara perempuan. Aku ingin kawin dengan wanita yang mau berkumpul, menyisiri dan mengurus mereka.” Sabda beliau, “Sesungguhnya engkau bakal datang kepada mereka. Apabila engkau tiba, maka senanglah, senanglah !” Selanjutnya beliau bersabda, “Akan engkau jualkah untamu ?” Jawabku, “Ya.” Lalu beliau beli dariku seharga satu uqiyah, Beliau tiba lebih dahulu dariku, dan aku tiba pagi-pagi. Kami pergi ke mesjid, maka di sana aku bertemu dengan beliau di pintu mesjid. Sabda beliau, “Baru tibakah engkau ?” Jawabku, “Ya, benar.” Sabda beliau lagi, “Tinggalkanlah untamu, masuklah dan shalatlah dua raka’at !” Aku masuk ke mesjid, kemudian aku shalat. Beliau menyuruh Bilal supaya menimbang untuk beliau satu uqiyah. Bilal menimbang, dan diberatkannya timbangan untukku. Kemudian aku pergi, Tetapi baru saja aku membelakang, beliau bersabda, “Panggil Jabir !.” Tiba-tiba beliau mengembalikan unta (yang telah dibelinya itu) kepadaku. Belum pernah ada sesuatu lebih kubenci daripada hal itu. Sabda beliau, “Ambillah kembali untamu serta uang harganya untukmu !” (Bukhari).
Nabi Muhammad s.a.w. menetapkan strategi harga meskipun dengan sahabat terdekatnya. Dari ’Aisyah r.a. katanya : ”Sungguh sedikit waktu bagi Nabi saw. Pada hari-hari itu, namun beliau memerlukan datang ke rumah Abu Bakar pagi atau petang. Maka ketika telah diizinkan bagi beliau untuk pergi (hijrah) ke Medinah, kami tidak pernah terkejut melainkan ketika beliau datang ke rumah kami waktu Zuhur, Lalu kedatangan beliau itu diberitahukan kepada Abu Bakar. Kata Abu Bakar, ”Nabi saw, tidak akan datang saat ini melainkan karena ada urusan yang sangat penting.” Ketika Nabi saw. Masuk ke tempat Abu Bakar, beliau bersabda kepadanya ” Suruh keluarlah orang yang ada di dekatmu !” Kata Abu Bakar, ”Ya, Rasulullah ! Hanya ada dua orang anakku, ”Aisyah dan Asma.” Sabda Nabi saw, ”Tahukah engkau bahwa sesungguhnya aku telah diberi izin untuk keluar (hijrah) ?” Kata Abu Bakar, ”Anda perlu teman. Ya Rasulullah !” Sabda beliau, “Ya, kawan.” Kata Abu Bakar, “Ya, Rasulullah ! Aku punya dua ekor unta yang sengaja kusediakan untuk keluar (hijrah), ambillah seekor untuk Anda” Sabda Nabi, “Kuambil seekor dengan harganya.” (Bukhari).
Strategi harga yang ditetapkan dalam jual beli kepada Allah, dicontohkan oleh Ali bin Abu Thalib. Ali bin Abi Thalib. “Wahai wanita, apakah kamu mempunyai sesuatu yang bisa dimakan suamimu?” tanya Ali kepada istrinya Fátimah. “Demi Allah aku tidak mempunyai sesuatu sedikitpun, Namur ini ada uang 6 dirham dari hasil upahku memintal bulu. Uang tersebut akan aku belikan makanan untuk Hasan dan Husain” jawab Fatimah. ”Wahai wanita yang mulia, berikan uang 6 dirham itu kepadaku” kata Ali. Fátima lalu memberikan uang 6 dirham itu kepada Ali bin Abi Thalib. Sesudah uang diterima, Ali ke luar rumah dengan maksud membeli makanan untuk kedua putranya. Tiba-tiba di tengah jalan ia bertemu seorang yang berkata “Siapa yang mau meminjami Allah, Dzat Yang Menguasai dan pasti Dia akan menepati Janji-Nya”. Akhirnya Ali mendekati orang tersebut dengan menyerahkan uang 6 dirham yang dibawanya dari rumah yang sedianya dibelikan makan untuk anaknya. Setelah uang diberikan Ali langsung pulang. Ketika Fátima mengetahui kepulangan suaminya ke rumah tanpa membawa makanan apa-apa, ia terus menangis. Melihat istrinya menangis, Ali langsung bertanya “Wahai wanita mulia, apa yang menyebabkan engkau menangis?”. “Wahai putra paman Rasulullah, aku melihat engkau pulang dengan tanpa membawa makanan sedikitpun” jawab Fátimah. “Wahai wanita mulia, aku telah menghutangkan uang 6 dirham tadi kepada Allah” kata Ali. “Kalau itu yang engkau lakukan aku setuju” kata Fatimah. Kemudian Ali bin Abi Thalib keluar hendak menuju ke tempat Rasulullah saw, tiba-tiba di tengah jalan ia bertemu seorang Badui yang sedang menuntun unta. Ali lalu mendekati Badui tersebut, maka Badui itu berkata “Wahai ayah Hasan, belilah unta ini”. “Aku tidak mempunyai uang sepeserpun untuk membeli untamu itu” kata Ali. Badui :” Aku menjual unta ini dengan cara dihutangkan”. Ali: “Kalau begitu, berapa harga unta ini kamu jual?”. Badui: “Aku menjualnya dengan harga 100 dirham”. Ali:“Baiklah, unta ini aku beli, namun pembayarannya nanti saja setelah aku mendapatkan uang”. Setelah itu Ali bin Abi Thalib menuntun unta yang baru dibelinya. Tetapi tidak begitu jauh Ali dihadang oleh seorang Badui lain, yang bertanya kepadanya “Wahai ayah Hasan, apakah kamu hendak menjual unta yang kamu tuntun itu?”. Ali: “Benar, aku hendak menjual unta ini”. Badui: ” Berapa harganya?”. Ali:“Harga unta ini 300 dirham”. Badui:“Baiklah, aku beli untamu dengan harga tersebut”. Setelah orang Badui itu menyetujui harganya, ia langsung membayar 300 dirham secara tunai kepada Ali. Sesudah menerima pembayaran tersebut, Ali menyerahkan kendali untanya kepada orang Badui tadi. Kemudian ia pulang ke rumahnya. Tatkala Fatimah mengetahui suaminya datang, ia menyambutnya dengan senyum kasih saying, sebagaimana kebiasaan yang ia lakukan setiap kali menyambut kedatangan suaminya. Fatimah lalu bertanya “Wahai ayah Hasan, apa yang engkau bawa hari ini?”. “Wahai putri Rasulullah, aku telah membeli seekor unta dengan dihutang cara pembayarannya seharga 100 dirham. Aku lalu menjual unta tersebut dengan harga 300 dirham secara tunai” jawab Ali. “Aku setuju saja terhadap apa yang kamu lakukan asalkan membawa kemanfaatan dan kemaslahatan” kata Fatimah. Sesudah berbincang-bincang dengan Fatimah dirasa cukup, ia keluar rumah lagi menuju tepat Rasulullah. Pada saat ia memasuki pintu masjid Rasulullah saw melihatnya dengan tersenyum dan ketika Ali sudah mendekat, beliau berkata ““Wahai ayah Hasan, apakah kamu yang bercerita kepadaku, ataukah aku yang memberi kabar kepadamu?”. “Engkau saja yang memberi kabar kepadaku” jawab Ali. Rasulullah berkata ““Wahai ayah Hasan, apakah kamu sudah mengerti, siapa sebenarnya Badui yang menjual unta kepadamu itu, dan siapa Badui kedua yang membelinya?”. Ali: “Allah dan Rasul-Nya yang lebih mengetahui”. Rasulullah: “Beruntung sekali kamu………beruntung ……….beruntung……… Wahai Ali, kamu telah menghutangi Allah dengan 6 dirham, maka Allah memberimu 300 dirham sebagai pengganti setiap dirham mendapat 50 dirham. Adapun orang Badui yang pertama adalah Jibril, sedangkan yang kedua adalah Israfil“. Menurut riwayat lain menyebutkan bahwa orang pertama yang menjual unta adalah Jibril, sedangkan yang kedua adalah Mikail.

Masjid Imam Ali

5. Strategi Tempat

Nabi Muhammad s.a.w. menganjurkan untuk berjual beli di pasar. Dari Abdullah bin Umar r.a., katanya : Rasulullah s.a.w., bersabda : “Janganlah kamu menjual menyaingi harga jual orang lain, dan janganlah kamu menyongsong membeli barang dagangan sebelum dibawa ke pasar.” (Bukhari). Dari Ibnu Umar r.a., katanya : “Pada masa Rasulullah saw. Orang banyak membeli makanan dari rombongan orang-orang berkendaraan. Nabi saw mengirim utusan kepada mereka supaya melarang mereka menjual makanan di tempat mereka beli, sehingga mereka dipindahkan ke tempat menjual makanan (Bukhari).
Mekah dan Medinah merupakan tempat yang diberkahi. Dari Abdullah bin Zaid r.a. dari Nabi saw, sabdanya : “Sesungguhnya Nabi Ibrahim mengharamkan (menjadikan tanah suci) negeri Mekkah dan mendo’a baginya. Dan aku mengharamkan negeri Madinah seperti Nabi Ibrahim mengharamkan Mekkah dan aku pun mendo’a bagi kemakmurannya sebagaimana Nabi Ibrahim mendo’a bagi kemakmuran negeri Mekkah.” (Bukhari).

Masjid Nabi di Medinah

Pasar Qainuqa merupakan pasar di Medinah. Dari Abdurrahman bin ‘Auf r.a. katanya : “ketika kami tiba di Madianah, Rasulullah saw, mempersaudarakan saya dengan Sa’ad bin Rabi’. Kata Sa’d bin Rabi’, “Saya orang Anshar yang paling kaya. Aku bagi dua hartaku denganmu. Dan tengoklah mana diantara isteriku yang engkau senangi. Akan saya secarikan dia. Setelah ia halal, engkau boleh mengawininya. Jawab Abdurrahman, “Saya tidak memerlukan demikian. Di manakah pasar di sini ?” Jawab Sa’d, “Pasar Qainuqa’,” Pagi-pagi Abdurrahman pergi ke pasar itu membawa keju dan samin. Dan sesudah itu ia terus menerus pergi ke sana. Tidak lama kemudian, Abdurrahma datang (kepada Nabi saw) dengan kesan pucat (dimukanya). Rasulullah saw. bertanya, “Kawinkah engkau ?” Jawab Abdurrahman, “Benar, ya Rasulullah !” Tanya Nabi, “Dengan seorang wanita Anshar,!” Sabda Nabi, “Berapa engkau beri maharnya ?” Jawabnya, “Emas seberat atau sebesar biji kurna,” Sabda Nabi saw, “Adakanlah pesta, sekalipun dengan seekor domba.” (Bukhari).

6. Strategi Promosi

Promosi yang dilakukan Rasulullah s.a.w. lebih menekankan pada hubungan dengan pelanggan meliputi berpenampilan menawan, membangun relasi, mengutamakan keberkahan, memahami pelanggan, mendapatkan kepercayaan, memberikan pelayanan hebat, berkomunikasi, menjalin hubungan yang bersifat pribadi, tanggap terhadap permasalahan, menciptakan perasaan satu komunitas, berintegrasi, menciptakan keterlibatan dan menawarkan pilihan.
Penampilan Rasulullah s.a.w. sangat menawan dengan wajah yang tampan, muka yang ceria, telapak tangan yang lembut dan bau keringat yang harum. Diriwayatkan dari Al-Barra’ r.a., dia berkata Rasulullah s.a.w. berperawakan sedang, berpundak bidang, rambutnya lebat terurai ke bahu hingga ke kedua cuping telinga. Beliau pernah menggunakan pakaian berwarna merah. Aku tidak pernah sama sekali melihat orang lebih tampan daripada beliau (Bukhari dan Muslim). Demikian pula dari Anas bin Malik r.a., dia berkata : Rasulullah s.a.w. senantiasa ceria, keringatnya bagai kilau mutiara, apabila beliau berjalan langkahnya berayun, sutra yang pernah aku sentuh tidak ada yang lebih halus daripada telapak tangan Rasulullah s.a.w. dan minyak misik serta minyak ambar yang pernah aku cium tidak ada yang melebihi bau wangi Rasulullah s.a.w. (Bukhari dan Muslim).
Menurut Al Ghazali, Rasulullah s.a.w. memandang pakaian sebagai penutup aurat dan penghias diri, seperti do’a yang beliau ucapkan ketika mengenakan pakaian dengan mengucapkan :”Segenap puji bagi Allah yang telah memberikan pakaian padaku sesuatu yang dapat menutupi auratku dan dapat saya gunakan sebagai penghias diri terhadap orang lain.”

Rambut Rasulullah s.a.w.

Pakaian Rasulullah s.a.w.
Nabi Muhammad s.a.w. menyatakan bahwa membangun silaturahim atau membangun relasi merupakan kunci keberhasilan dalam pemasaran. Dari Anas bin Malik r.a., katanya dia mendengar Rasulullah s.a.w., bersabda “Barangsiapa ingin supaya dimudahkan (Allah) rezkinya, atau dipanjangkan (Allah) umurnya, maka hendaklah dia memperhubungkan silaturahmi (hubungan kasih sayang)”(Bukhari). Rezki juga akan dilancarkan apabila mempunyai empat sifat sebagai pedagang. Dari Abu Umamah r.a., Rasulullah s.a.w. bersabda :”Sesungguhnya seorang pedagang apabila mempunyai empat sifat pedagang, maka rezkinya akan lancar. Apabila ia membeli barang ia tidak mencela, apabila menjual ia tidak memujinya dengan berlebihan, apabila menjual ia tidak menipu dan apabila menjual atau membeli tidak bersumpah”(Ashbahani).
Nabi Muhammad s.a.w. lebih mengutamakan keberkahan daripada keberhasilan penjualan. Dari Abu Hurarirah r.a., katanya dia mendengar Rasulullah s.a.w. bersabda : “Sumpah itu melariskan dagangan, tetapi menghapus keberkahan” (Bukhari). Keberkahan juga dapat diperoleh jika menimbang atau menakar dalam jual beli. Dari Miqdam bin Ma’diytakriba r.a. dari Nabi saw, sabdanya : “Gantanglah (timbanglah) makananmu, kamu akan diberi berkah” (Bukhari).
Nabi Muhammad s.a.w. sangat memahami pelanggannya. Ketika ratusan utusan datang pada Nabi setelah kemenangan kota Mekah, seorang diantaranya Abdul Qais, datang menemui Nabi. Selanjutnya, meminta agar mereka memanggil dan memberitahukan pemimpin mereka, yaitu Al-Ashajj. Ketika menghadap, Nabi pun mengajukan bermacam-macam pertanyaan, tentang penduduk berbagai kota dan urusan-urusan mereka. Secara khusus Nabi juga menyebutkan nama-nama Sofa, Musyaqqar, Hijar dan beberapa kota lainnya. Pemimpin mereka Al-Ashajj, sangat terkesan dengan pengetahuan luas yang dimiliki Nabi tentang negerinya sehingga ia mengatakan “Ayah dan ibuku akan berkorban demi Anda, karena Anda tahu banyak tentang negeriku dibanding aku sendiri dan mengetahui nama-nama lebih banyak kota di negeri kami daripada yang kami ketahui.” Bahkan Nabi mengetahui kebiasaan orang Bahrain, cara hidup penduduk Bahrain, cara mereka minum dan cara mereka makan.
Nabi Muhammad s.a.w. untuk mendapatkan kepercayaan mengandalkan akhlaknya atau budi pekertinya. Dari ‘Atha’ bin Yasar r.a, katanya dia bertemu dengan Abdullah bin ‘Amr bin ‘Ash, lalu katanya : “Ceritakanlah kepadaku tentang sifat Rasulullah saw. Seperti yang tersebut dalam Kitab Taurat”.Jawab Abdullah, “Baiklah ! Demi Allah sesungguhnya Rasulullah saw. Telah disebut di dalam Kitab Taurat dengan sebagian sifat beliau yang tersebut didalam Al Qur’an : “Wahai, Nabi ! Sesungguhnya Aku mengutus engkau untuk menjadi saksi, memberi kabar gembira, memberi peringatan dan memelihara orang ummi. Engkau adalah hamba-Ku dan pesuruh-Ku. Aku namakan engkau orang yang tawakkal (berserah diri), tidak jahat budi, tidak kesat hati, tidak pula orang yang suka berteriak di pasar-pasar, tidak membalas kejahatan dengan kejahatan, tetapi pemaaf dan memberi ampun. Dan Allah belum akan mencabut nyawanya sehingga dia menegakkan agama selurus-lurusnya, yaitu supaya mereka mengucapkan : “Laa illaaha illallaah” sehingga dengan ucapan itu Allah membukakan mata yang buta dan telinga yang tuli serta hati yang tertutup.” (Bukhari). Kepercayaan juga dibangun dari tidak adanya penipuan. Dari Abdullah bin Umar r.a., katanya : ”Seorang laki-laki bercerita kepada Rasulullah saw. Bahwa dia ditipu orang dalam hal jual beli. Maka sabda beliau ”Apabila engkau berjual beli, maka katakanlah : Tidak boleh ada tipuan.”(Bukhari).
Nabi Muhammad s.a.w. memberikan pelayanan hebat kepada pelanggannya. Djabir r.a. berkata : Rasulullah saw, bersabda :”Allah merahmati kepada orang yang ringan jika menjual atau membeli dan jika menagih hutang.” (Bukhari). Abu Qotadah r.a. berkata : Saya telah mendengar Rasulullah saw bersabda : Siapa yang ingin diselamatkan Allah dari kesukaran hari qiyamat harus memberi tempo pada orang yang masih belum dapat membayar hutang atau menguranginya (Muslim). Dari Hudzaifah r.a., katanya Nabi saw, pernah bersabda : “Para malaikat datang bertemu dengan ruh orang-orang yang sebelum kamu. Mereka bertanya, “Amal baik apa sajakah yang telah engkau laksanakan ?” Jawab orang itu, “Aku pernah memerintahkan kepada para pelayanku supaya mereka memberi janji kepada orang miskin dan bersikap lapang kepada orang kaya.”Lantas para malaikat itu memberikan kelapangan kepadanya (Bukhari). Dan juga Hudzaifah r.a. berkata: Ketika dihadapkan kepada Allah seorang hamba yang telah diberiNya kekayaan dan ditanya : “Apakah yang kau lakukan terhadap harta kekayaan yang telah Aku berikan kepada kamu di dunia ?” Hudzaifah berkata : Dan mereka ketika itu tidak dapat menyembunyikan sesuatu apapun dari Allah. Maka jawab orang itu kepada Allah : “Tuhanku saya dahulu telah mendapat karunia berupa harta, maka saya telah melakukan hubungan dagang dengan orang-orang dan kebiasaan saya memaafkan meringankan kepada orang kaya dan memberi tempo orang yang tidak punya. Maka Allah berfirman: “Saya lebih berhak daripadamu untuk demikian. Maafkanlah hambaKu, Keterangan ini disambut oleh Uqbah bin Amir dan Abu Mas’ud bahwa kedua orang ini telah mendengar keterangan itu dari Rasulullah s.a.w. (Muslim).
Nabi Muhammad s.a.w. menjalin hubungan komunikasi (bermusyawarah) dengan baik agar tidak terjadi perselisihan antara orang melaksanakan jual beli. Dari Zaid bin Tsabit r.a. katanya ”Biasanya pada masa Rasulullah saw orang banyak berjual beli buah-buahan, setelah tiba waktu memtik dan bayar membayar, sipembeli mengatakan : buah ini busuk, kena penyakit, layu dan macam-macam kerusakan yang mereka jadikan alasan. Ketika mereka bertengkar sudah demikian rupa, Nabi saw. Bersabda : ’Jika begitu, janganlah Tuan-tuan berjual beli sehingga telah nyata benar buah itu baik.” Selaku orang yang suka bermusyawarah (berkomunikasi secara demokratis), beliau memimpinkan hal itu karena banyaknya terjadi pertikaian antara sesama mereka” (Bukhari).
Nabi Muhammad s.a.w. menjalin hubungan yang bersifat pribadi. Dari Anas bin Malik r.a, katanya ”Pada suatu waktu ketika Nabi saw, sedang berada di pasar, seorang laki-laki memanggil beliau, katanya, ”Hai, Abu Qasim !” Nabi saw, melenggong kepadanya. Maka kata si laki-laki tadi. ”Saya memanggil orang ini.” Sabda Nabi saw. : ”Berilah nama dengan namaku, tetapi jangan kamu bergelar dengan gelarku.”
Nabi Muhammad s.a.w. tanggap terhadap permasalahan yang dihadapi pelanggan. Rasulullah s.a.w. bersabda :“Allah mengasihi orang yang mudah dalam penjualan, pembelian, pelunasan dan penagihan. Barang siapa memberi penangguhan kepada orang yang dalam kesusahan (untuk membayar hutang) atau membebaskannya, maka Allah akan menghisabnya dengan penghisaban yang ringan. Barang siapa menerima kembali pembelian dari orang-orang yang menyesali pembeliannya, niscaya Allah membatalkan (menghapus) kesalahannya pada hari kiamat.” (Bukhari dan Muslim). Demikian pula permasalah yang terjadi pada orang lain, Nabi Muhammad s.a.w. tetap membantu menyelesaikan permasalah tersebut. Dari Jabir r.a. katanya : “Abdullah bin ‘Amru bin Harani meninggal dunia sedangkan ia mempunyai hutang. Saya minta tolong kepada Nabi saw. Supaya orang-orang yang mempiutanginya sudi meringankan hutangnya. Nabi s.a.w. Menyampaikan permintaan itu kepada mereka, tetapi mereka tidak mau memenuhinya. Nabi saw, bersabda kepadaku, “Pergilah atur kurma engkau bermacam-macam! Ajwah sebagian dan ‘Azqa Zaid. Kemudian beritahukan kepadaku kalau sudah selesai.” Lantas apa yang diperintahkan Nabi saw, itu saya laksanakan, dan setelah selesai kuberitahukan kepada beliau. Beliau duduk diatas atau ditengah tengah kurma itu, lalu beliau bersabda, “Nah, gantanglah untuk kaum yang berpiutang itu.” Lalu saya gantangi dan saya berikan secukupnya kepada mereka masing-masing Ternyata kurmaku yang tinggal tidak kurang satu jua pun dari semula.”
Nabi Muhammad s.a.w. menawarkan pilihan dalam memasarkan produknya. Dari Ibnu Umar r.a., dari Rasulullah saw., bahwasanya beliau bersabda : “Apabila dua orang telah melakukan jual beli, maka tiap-tiap orang dari keduanya boleh khiyar (memilih) selama mereka belum berpisah, dan keduanya masih berkumpul, atau salah satu dari keduanya telah memberi khiyar kepada yang lain, dan keduanya telah melakukan jual beli atas dasar khiyar itu, maka sesungguhnya jual beli itu haruslah dilakukan atas yang demikian. Jika keduanya telah berpisah sesudah melakukan jual beli, sedang yang satu lagi belum meninggalkan (tempat) jual beli. Maka jual beli itu harus berlaku demikian.” (Bukhari). Demikian pula dari Ibnu Umar r.a., katanya Nabi saw. Bersabda : “Dua orang yang jual beli boleh khiyar selama keduanya belum berpisah, atau salah satu diantara keduanya mengatakan kepada yang lain, “pilihlah !” Dan boleh jadi juga beliau mengatakan, “Atau jual beli itu dengan khiyar.” Kata Nafi’ : “Pernah Ibnu Umar apabila membeli sesuatu yang disenanginya, dia segera berpisah dengan penjualnya.” (Bukhari).


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July 16, 2009 Leave a comment





Schematic Design of 1440H Vision


• The Challenge of Achieving Healthy Human Development
• The Challenge of Securing Strong and Sustainable Economic Growth
• The Challenge of Promoting Good Governance
• The Challenge of Strengthening Peace and Stability
• The Challenge of Fostering a Powerful Sense of Common Identity,
• Consciousness and Empathy as Members of the Ummah
• The Challenge of Restoring the Image of the Muslim World



By the year 1440 Hijrah IDB shall have become a world-class development bank, inspired by Islamic principles, that has helped significantly transform the landscape of comprehensive human development in the Muslim world and helped restore its dignity.
The Mission of IDB is to promote comprehensive human development, with a focus on the priority areas of alleviating poverty, improving health, promoting education, improving governance and prospering the people.


1. IDB shall be a corporate Khalifah for development. It must guide and lead based on Islamic precepts of comprehensive human development;

2. IDB shall be proactive. It must reach out rather than wait to be approached;

3. IDB shall seek the support and cooperation of the governments concerned for any project. Their views should also be sought and heard;

4. IDB shall ascertain the needs and aspirations of target communities before formulating any programme;

5. IDB should consult closely with the stakeholders of every proposed programme, and design the programme in close collaboration with them wherever possible. Ultimately, it is the community itself that is the most important stakeholder;

6. IDB shall encourage local initiative where there is promise; and

7. IDB’s general approach shall be to communicate the “how to” rather than “gift” a completed project. However, where initiative, skills or work ethics are lacking, IDB should consider carrying out a project itself.

S.N Strategic Thrust Rationale Target Programme Implementation Centre/Year
1 Reform IDB The changes in the strategic environment impinging upon IDB as well as the changes to the IDB Vision and Mission that the Commission proposes multiply the demands on the Bank and make reform imperative. Adjustments to the focus and priorities of the Bank, and the additional responsibilities the Bank is being asked to undertake also require changes to IDB organisation, and a very substantial enhancement of its capacity and resources. 1. IDB should begin the process by adopting the new Vision and Mission.
2. Membership in IDB should automatically qualify a Member Country for services offered by the affiliates.
3. A quantum increase in the focus on human development, with priority given to achieving the goals related to poverty, health, education and the empowerment of women identified in the relevant Key Strategic Thrusts.
4. IDB’s institutional capacity to give greater attention to country-focused development strategies should also be significantly enhanced.
5. IDB’s research and training facility. should be upgraded to full consultancy.
6. A strong Public Affairs Office should be established in IDB within a year to manage critical information, media and publicity matters.
7. More decentralisation of authority and decision-making in the organization and the transformation should be effected within a year.
8. IDB should transform itself into a knowledge-based bank.
9. The Bank becomes a much more networked organization.
10. The Bank should also act as a network builder for Member Countries, linking assets and knowledge from the sources of supply to the areas where it is most needed by initiating new institutions or strengthening existing ones according to needs.
11. The Bank should leverage upon its lending to promote good governance and performance where desirable.
12. IDB should embrace global best practices in every aspect of its operations in order to become a world-class organization.
13. IDB needs to ensure that it has at its disposal all the capital.
14. IDB should raise its subscribed and authorized capital substantially.
Total : 14

S.N Strategic Thrust Rationale Target Programme Implementation Centre/Year
2 Poverty
Alleviating poverty must continue to be the most important comprehensive human development focus of the IDB Group, until poverty is no longer a prominent feature of the Muslim landscape. Nothing detracts from wellbeing and dignity like poverty. Along with poverty there is hunger, malnutrition, illiteracy, disease, crime and instability. Poor people are not respected. They are looked down upon. The Muslim world cannot regain its dignity and esteem if so many of its inhabitants are destitute.

1. Reduce by three quarters the proportion of the population living on less than US$1 per day.
2. Halve the poverty rate of Member Countries whose poverty rate is presently above 40 per cent.
3. Reduce by three quarters or more the poverty rate of Member Countries whose rate is presently below 40 per cent.
4. IDB should also work with the governments of non-Member Countries with significant Muslim populations to help broadly achieve the same targets for their population.
5. Opening land for agriculture, distributing seeds and fertiliser for cultivation, irrigating land, providing skills training, creating jobs through establishing mass-employment basic industries, creating agricultural and fisheries cooperatives and providing micro-financing based on Islamic principles are some of the measures that can be considered. IDB can also provide policy and technical advice on poverty eradication.
IDB Group
6. The Bank should help develop Zakat, Awqaf and Sadaqat institutions

Partnership IDB Group
Total : 06

S.N Strategic Thrust Rationale Target Programme Implementation Centre/Year
3 Health
This Key Strategic Thrust should address the most severe and debilitating threats to health in the Muslim world. These are child mortality, maternal health, diseases including HIV/AIDS and malaria, and environmental sustainability (access to safe drinking water and sanitation).
1. Reduce by three quarters the under-five death rate (the MDG target by comparison is a reduction of two thirds by 1436 Hijrah (2015);
2. Reduce by 90 per cent the maternal mortality rate (the MDG target is 75 per cent);
3. Check and reverse on a sustainable basis the spread of HIV/AIDS and other diseases (the MDG shares the same target); and
4. Reduce by two thirds the number of people without sustainable access to safe drinking water and sanitation (the MDG target is reduction by half). IDB should also be vigilant against the emergence of new pandemics such as avian flu. They have the potential to wipe out millions, Muslims as well as non-Muslims, across the globe

Total : 04

S.N Strategic Thrust Rationale Target Programme Implementation Centre/Year
4 Education
IDB should set a target of universalising both primary as well as secondary education by 1440 Hijrah.
1. IDB should set a target of universalising both primary as well as secondary education by 1440 Hijrah.

2. Developing the skills and capacity essential for the development of knowledge-based economies.

3. The inculcation of moral values, moderation and ethical conduct. IDB can work with Member Countries and Muslim religious institutions in non-Member Countries to ensure that the education curriculum reflects this important element.

4. IDB joint initiative with the poorer Member Countries to mobilise added funding and education materials. The primary targets for securing assistance should be the more affluent OIC Member Countries.

5. IDB can spearhead the establishment of an Education for All Movement in the Member Countries.

6. IDB can encourage research and development on quality education as well as affordable delivery of education to LDMCs.

7. Develop special programmes for women that equip them better for imparting knowledge to the very young.

8. IDB can help promote the growth of world-class science and technology institutions.

Total : 08

S.N Strategic Thrust Rationale Target Programme Implementation Centre/Year
5 Prosper the People
1. All countries, whether rich or poor, Muslim or non-Muslim, desire greater prosperity.

2. The role that IDB plays with regard to prospering the people will be essentially in the form of providing policy recommendations and advice, providing consultancy services and as a knowledge bank.
1. Double, at the least, the GDP of all Member Countries;
2. Halve, at the least, the number of LDMCs; Partnership
3. Graduate, at the least, five Member Countries to the status of “Developed Nation” as classified by the World Bank; and
4. Halve, at the least, income inequity in all Member Countries. Growth with equity should be the economic development goal of all Member Countries.
5. identifying key growth areas and strategies to raise incomes IDB Group
6. Develop policy options and programmes for each of these areas in a comprehensive plan for the respective Member Countries to consider.
7. Provide policy and technical advice to assist the production-based economies of Member Countries transform themselves into more productive and competitive knowledge-based economies by providing policy and technical advice.
8. IDB could develop 20 templates that could be customized
for application in different countries.
IDB Group
Total : 08

S.N Strategic Thrust Rationale Target Programme Implementation Centre/Year
6 Empower the Sisters of Islam
The Sisters of Islam are the greatest reservoir of untapped wealth and unfulfilled dignity that the Muslim world has. In a few Muslim countries, women are more economically, socially and politically empowered than even in some Western nations.
1. Campaigns in the relevant countries on the subject of the empowerment of women.

2. Support to civil society groups.
3. Provide expert advice to Member Countries on the creation of sustainable lending programmes with preferential terms and rates to women’s groups.

4. Schemes for women itself.
5. Investment in women businesses and women trade exhibitions; and Collaborate with Member Countries and relevant organisations to set up scholarships for women.

6. The IDB Group can empower the Sisters of Islam in the workplace.

Total : 06

S.N Strategic Thrust Rationale Target Programme Implementation Centre/Year
7 Expand the Islamic Financial Industry
Islamic banking and finance is a signature product of IDB. They are virtually synonymous with
each other. IDB also needs to dramatically increase its financial resources and operations if it is to successfully implement the many added responsibilities that are being contemplated for it. The expansion and improvement of the Islamic financial industry is, therefore, a matter of considerable urgency.

1. Strengthen the infrastructure for governance of Islamic financial institutions and Bring it up to global standards

2. Expand the non-bank financial sector of the Islamic financial industry;

3. Upgrade the knowledge capacity and skills required to effectively manage the operational aspects of the financial sector.

4. Invest in a strong research and development facility to develop new financial products.

5. Cooperate with financial institutions that offer “Islamic” financial services with the aim of facilitating their Shari’ah compliance.

Total : 05

S.N Strategic Thrust Rationale Target Programme Implementation Centre/Year
8 Facilitate Integration of Members Country Economies
Economic cooperation and integration in the face of globalisation is absolutely essential for IDB Member Countries.

It enables national economies to reduce economic barriers against each other, synergise on each other’s strengths and potentials for mutual benefit, and opens new doors for wealth creation. It also protects the weaker economies against the predatory pressures of the strong.
1. IDB Member Countries should be fully engaged in a dynamic and productive network of regional, OIC-wide and global economic cooperation arrangements by 1435 Hijrah.
2. Undertake feasibility studies on closer economic cooperation among Member Countries on a regional basis.
3. Explore the prospects and design specifications for a Preferred Free Trade Area for the Member Countries to initiate the economic cooperation process.
4. Significantly enhance the capacity of the IDB Group to provide training, technical expertise and policy advice to the LDMCs to assist them in World Trade Organization (WTO) negotiations and accession.
Total : 04

S.N Strategic Thrust Rationale Target Programme Implementation Centre/Year
9 Improve the Image of the Muslim World
Terrorism notwithstanding, the battle for the Muslim world’s image will be essentially won or lost on the battlefield of comprehensive development. If the Muslim world, OIC and IDB are able to realise the Vision of IDB to a significant degree by 1440 Hijrah, the image of Muslims will improve dramatically

1. IDB can only play a minor role here, by supporting quality forums including forums on air, that explore not only the manifestations of terrorism but the causes as well, forums that can correctly highlight the issues on both sides, and forums that condemn both the terrorists as well as the injustices that breed them. The forums must also help rescue the teachings of Islam from abuse and distortion by both sides, and promote dialogue and understanding across civilisations..

Total : 01


International Islamic Financial Market

July 16, 2009 Leave a comment

23-24 November 2000
International Islamic Financial Market
Dato’ Dr. Syed Jaafar Aznan ~ Vice President
Islamic Development Bank, Jeddah, Saudi Arabia

Bismillahir Rahman Nir Rahim
AssaIamuaIaikum Warahmatutlahi Wabarakatuh.

I would like to thank the Labuan Offshore Financial Services Authority (LOFSA) for inviting me to this Conference which has brought together such a distinguished group of scholars, policy makers and market practitioners in Islamic banking and finance. Hopefully, together we would be able to address the many challenges facing the development of the International Islamic Financial Market in the context of Islamic banking.

2. Islamic banking is not a new idea. However, its growth had accelerated only in the last few decades. The Islamic Development Bank was established in 1 975 and since then had vigorously promoted the application of Islamic banking in the conduct of businesses. We have to date made great strides, and Islamic financial institutions have been set up in all parts of the world, and are continuously being established until this day.

3. Islamic banking provides a choice to consumers and monetary authorities It provides for an alternative financial system that has begun to gain worldwide recognition. Indeed, the initial reaction of some consumers and bankers towards Islamic banking and finance was skepticism. Today, it is received with significant interest. Major international banking institutions with a significant amount of assets under their management have also established Islamic window offering Islamic financial products and services. With about USD170 billion of funds managed by more than 170 Islamic financial institutions, including in countries such as the United Kingdom and the United States, Islamic banking has proven itself and survived. Rising interest and preference among consumers all over the world to conduct business based on Shariah principles and growing awareness of the virtues and value-oriented system of Islamic banking have contributed to this positive development.

4. Although the amount of funds managed through Islamic banking is only a fraction of the total assets of the international financial system, it represents that portion of financial activities that is truly supported by underlying productive capacity that generates growth of nations across continents. It is this form of financial activities that we should encourage, as opposed to speculative financial flows that are not only unproductive but also destabilising and Destructive as has been seen to have occurred during the last financial crisis.

5. Despite the remarkable achievements of Islamic banking and finance, a considerable amount of funds from Islamic countries are still invested in conventional markets. The flow of financial resources from Muslim countries to the conventional financial markets is because a viable global Islamic financial system as an alternative 4o the conventional system is not yet well established. This deficiency is now being addressed by many and effectively presented as the challenge facing the Muslim Ummah in the new millennium.

6. Towards this end, I wish to congratulate Malaysia, through the Labuan Offshore Financial Services Authority or LOFSA for initiating and spearheading the effort to establish an International Islamic Financial Market, or IIFM, as a mechanism to match the surplus and deficit units of funds, in terms of region and institutions. I would also like to record my appreciation to the other countries and financial institutions around the world that have participated and cooperated in the development of IIFM. I would now like to share with you some insights into the development of the IIFM.

Ladies and Gentlemen!

7. The dearth of Islamic financial instruments has led to serious liquidity management problems for Islamic financial institutions, and has curtailed the development of a global Islamic financial market. Thus, the establishment of the IIFM is not only necessary but needs to be implemented on an urgent basis. The market will provide an avenue for an efficient management of Islamic assets and liabilities at the international level.

8. In light of the above, I am indeed pleased to inform this gathering that the initiative to develop the IIFM has received strong support and interest from a number of Islamic countries. The 1DB is committed to the project. Five parties have signed Memorandum of Understanding, namely 1DB, LOFSA, Bahrain, Indonesia and Sudan, giving their commitment to extend resources and expertise to implement the project. Major players from the private sector are also actively involved. A Working Group comprising 1DB, LOFSA, Bahrain Indonesia, Sudan and Brunei has also been formed to implement the project.

9. The working group has made commendable progress through the meetings that have been held in Bahrain, Labuan, Jeddah and Brunei. A common working model for the IIFM has been worked out, and 1DB has agreed to be the coordinator for the project. Yesterday, the Working Group held its meeting here in Labuan, and I am delighted to inform you that the implementation process of the IIFM will now be on a faster track. LOFSA and Bahrain have agreed to lead separate action teams on the implementation aspects of the IIFM and this will further accelerate the implementation of the IIFM. The target now is to make the IIFM operational by the middle of 2001. lnsya Allah with fullest support from all Islamic nation, this project will be a success.

Ladies and Gentlemen,

10. Basically, the IIFM will help achieve three major objectives:

i) Firstly, it will provide Islamic countries a more efficient and cost-effective financial intermediation. It should facilitate capital inflows to Islamic countries that are necessary for development. More importantly, the IIFM will provide the catalyst for the development and promotion of a larger supply of Shariah compatible financial products and this should also help to meet the growing demands from private and institutional investors, especially those from the Islamic countries, thereby enhancing investment opportunities. At the same time, the market will also generate spin-offs for other services and activities such as custodial services, broking, funds, advisory and treasury activities.

ii) Secondly, the IIFM will create an interactive framework for cooperation worldwide among different market players with varying needs to help deepen the global financial market, particularly that of Islamic countries. It will also contribute to strengthening the architecture of the international financial system as participation in the market will be opened to all, including the conventional banks. The IIFM can enhance liquidity of the Islamic financial institutions who will be able to manage their assets and liabilities more effectively, while abiding by Shariah principles, through the sale and purchase of universally acceptable Islamic financial instruments and direct placements under Mudharabah inter-bank investments.

iii) Thirdly, the IIFM will promote better business environment in Islamic countries and foster the establishment and regulation of regional and national financial markets. In the process, market regulation will evolve in a developmental manner and non-restrictive way, where nonetheless strict Shariah compliance should remained observed at all times creating expedient shortcuts to Shariah compliance would inevitably undermine customer trust and institutional credibility. Indeed, it is important to maintain trust and confidence both for the market and for its future development.

11. At the core of the market, is an institution called the Market Management Centre or MMC. The roles of the MMQ which will be pivotal to the operation of the market are to endorse the issuance of Islamic financial instruments for the market; to set guidelines and procedures for the market and to facilitate Shariah approval and rating of instruments introduced for the market. Another important element of the IIFM structure is the creation of a series of Liquidity Management Centres (LMCs). The LMC will help manage country liquidities, serve as regional hubs or centres and enhance the efficiency of the IIFM operations. The operation of the IIFM will be quite unique when compared to the conventional one because it may be possible to operate 7 days a week due to the difference of public holidays in Islamic countries. While the holidays in gulf countries are on Thursdays and Fridays, that in the Far East are Saturdays and Sundays, hence the 7 days a week concept.

12. Once implemented, the IIFM will serve the needs of all participants willing to deal in Shariah compatible instruments of banking and finance. It will not be limited to Islamic institutions and market forces will determine the growth patterns of Islamic products, roles of institutions and their market shares within the IIFM.

13. The IIFM will also help Islamic financial institutions to manage their assets and liabilities in a more efficient and cost-effective manner while abiding by Shariah principles and serving the economic development of the Islamic countries. The liquidity surpluses and deficits of participating financial institutions can be matched by:

i) One, sale and purchase of Islamic financial instruments; and
ii) Two, direct placements under the Mudharabah Inter bank investment. In this case, the yield could be based on expected rate of return and adjusted in actual terms at maturity to remain in full compliance with Shariah requirements. The availability of the direct placements is crucial to the operations of the financial market.

14. Indeed, the structured mechanism of the IIFM will enhance greater liquidity and efficiency in the system and accelerate the trend towards securitization and growth of liquid Islamic financial instruments and trade financing.

Ladies and Gentlemen,

15. The critical success factors in developing the IIFM are, one to have a broad number of players, and two a wide range of financial instruments. Without these two elements, there is’ no market. Hence, the support of the governments and multi-lateral institutions is very critical to provide the push for more players to join the market. It is strongly encouraged that Islamic countries who have not participated yet, to get involved to add more breadth and depth to the market. It is for this reason also, members of the Working Group will be organising a promotional program to selected Islamic countries

16. In the area of developing financial instruments, again the catalyst will probably come from the governments and large corporations to issue sukuks to help kick-start the market. Strategically, it makes very good sense for a corporation to diversify its source of financial funding to ensure that it can remain liquid in times of critical needs. The recent Asian financial crisis has shown that relying on just the conventional financial markets is simply not enough. Hence, the development of the IIFM will provide the alternative for organisations to diversify their source of funding.

1 7. As for the liquidity in the Secondary Market, the IIFM will create an environment that will encourage both the Islamic based and conventional financial institutions to be active players to ensure that there will be market makers and sufficient liquidity for the Islamic Securities. To be successful and viable, Islamic financial instruments should be targeted at broad range of players and investors, both Islamic and conventional.

Ladies and Gentlemen,

18. The IIFM project clearly shows that cooperation among Islamic Financial Institutions can provide tangible results that will enhance the level of economic activities among countries. Insya Allah, the success of this endeavor should spur the formation of more cooperative economic framework of such nature. Such cooperation is very important as we operate in an environment that is becoming more and more challenging.

19. As you are aware, Islamic banking and finance is conceptually and fundamentally different from conventional finance and is increasingly being used worldwide. There is, therefore, a need for proper standards and supervisory regulations to be put in place. The Islamic Development Bank (IDB) has together with some financial institutions established some time ago the Accounting and Auditing Organization for Islamic Financial Institutions (MOIFI) which is based in Bahrain. This body has issued numerous recognized standards in its fields that are being used by Islamic financial institutions. The 1DB has also, together with other Islamic banks and financial institutions agreed on the establishment of a rating agency, the International Islamic Rating Agency (INRA) which will soon be registered in Bahrain. The INRA will provide rating services for the benefit of Islamic financial institutions. In addition, IDB is also coordinating with the International Monetary Fund (IMF) and other monetary authorities and financial institutions to create an Islamic Financial Services Board (IFSB) which will be in charge of issuing prudential and supervisory regulations and guidelines to be applied on an international level on all institutions that provide Islamic banking and financial services. All these institutions will complement and support the creation of the IIFM and will enable the IIFM to promote further the development of Islamic banking for the benefit of the Ummah.

20. In conclusion, I wish to reiterate the full support and unwavering commitment of the 1DB in the establishment of the IIFM. I am very glad that the project will now move at a faster pace and will soon be operational.

With that, I once again would like thank the organisers for inviting me to this conference.

Assalamualaikum Warahmatuhlahi Wabarakatuh.

Sharia-compliant investing: concepts and opportunities

July 16, 2009 Leave a comment

Sharia-compliant investing: concepts and opportunities

By: Tariq Ashraf
13 October 2006

Speech notes for speech at Conference 2006 of Council for Socially Responsible Investment. KPMG Centre, Auckland

Good afternoon, it is a pleasure to speak to you today. I thank the Council for Socially Responsible Investment for the opportunity to do so.

I am here to speak with you about Sharia-compliant investing. This is a new concept to New Zealand, but this sector, which is worth several hundred billion dollars currently, is accepted and growing in other parts of the world, particularly in North America, Europe and Asia. I am currently engaged in a project for the Ministry of Economic Development related to Sharia-compliant foreign direct investment into New Zealand. There may be a window of opportunity for New Zealand to emerge as an investment location for Sharia-compliant funds. The resulting capital inflow may have the potential to contribute significantly to New Zealand’s economic development.

As this is a new idea for New Zealand, I would like to outline the key concepts and share with you some aspects of our project. But first of all, what is Sharia-compliant investing?

Sharia means the “revealed religious law” of Islam. It has five bases. These consist of two primary, and three secondary, sources. The primary sources are the Qur’an, which is the holy book of Muslims; and the Ahadith, the traditions relating to the deeds and utterances of the Prophet Muhammad (peace be upon him). The three secondary sources are juristic techniques known as: Ijma, which means consensus; Qiyas, which is analogical reasoning; and Ijtihad, or independent juristic reasoning. These techniques are exercised by qualified Islamic jurisprudential scholars.

Sharia governs all aspects of Islamic practice including not only faith and worship, but also the economic, social, political and cultural aspects of Islamic societies. Much of the laws, rules and interpretations of Sharia take into consideration issues of social justice and equity. For example, Islam prescribes a compulsory financial obligation called zakah: this is a wealth obligation to be taken from the wealthy and given to the poor. One of the purposes of zakah described in the Quran is “so that the wealth does not circulate only among your rich folk.” In this context, financial markets should operate to enable both an increase in wealth and economic growth, and also its equitable distribution.

The Islamic law on financial transactions is part of the branch of Sharia known as fiqh al-mu’amala, or the law of human interaction. The general Sharia legal maxim is that a particular activity is permissible unless there is a clear prohibition against it. This is reflected in the law on financial transactions. As you will learn, Sharia-compliant financial services emphasise the ethical, social and religious dimensions of financial transactions to enhance equity and fairness for the general good of society. These services are not limited to commercial banking but also extend into capital markets, insurance and other channels of non-bank financial intermediation.

The main Sharia principles that provide the framework for investment and finance are:

Number 1, risk-sharing: The provider of financial funds and the entrepreneur share business risk in return for shares of profits and losses;
Number 2, materiality: a financial transaction needs to have a “material finality”, that is a direct or indirect link to a real economic transaction;
Number 3, justice: a financial transaction should not lead to the exploitation of any party to the transaction;
Number 4, social responsibility: the financing of activities viewed as sinful and socially irresponsible by Islam are prohibited. These include alcohol; pork and related products; conventional, interest-based financial services; gambling and casinos; pornography and prostitution etc; tobacco; and the weapons and defence industries;
Number 5, the prohibition of riba or usury, which is interpreted by Sharia scholars to include a pre-determined interest rate fixed ex ante. Riba has the literal meaning of “an excess” and is defined as an increase or excess which accrues to the owner in an exchange or sale of a commodity, or by virtue of a loan arrangement, without providing equivalent value to the other party;
And number 6, the prohibition of gharar or uncertainty: there should be full disclosure of information and the removal of any information asymmetry in a contract. An element of uncertainty is considered a normal phenomenon in the market if it is not excessive and where the effect on the economy and society is considered to be minimal.

It is worthwhile to note that these principles are regarded as being universal, so Sharia-compliant finance and investing are open to participation by all people – regardless of their religious beliefs – on either side of a financial transaction. They key considerations are that the source of the funds, the nature of the business, the form of the contracts and the business’ trading practices, must be Sharia-compliant. This is typically assured by the presence in an institution of a Sharia Supervisory Board made up of qualified Islamic scholars, who are able to advise the institution and offer assurance to its investors and/or depositors.

According to recent estimates, the Sharia-compliant banking industry includes 284 Islamic financial institutions operating in 38 countries and managing over 200 billion US dollars, up from 54 billion US dollars in 1993.

The coverage and extent of Sharia-compliant banking varies significantly, from entirely compliant financial systems such as Iran and Sudan at one end of the spectrum, to countries where conventional and Islamic systems coexist, such as Bahrain, Indonesia, Malaysia, Pakistan, or the United Arab Emirates. Recently, Sharia-compliant finance expanded beyond predominantly Islamic countries to the United Kingdom, Switzerland, Singapore and the United States most notably. These countries, which operate under the paradigm of conventional, interest-based financing have responded to the different characteristics of Sharia-compliant financial institutions and intermediaries by recognising their uniqueness and treating them in a way that accrues to them neither an advantage nor a disadvantage versus conventional institutions in areas such as capital adequacy and prudential and accounting standards. The development of institutions like the Islamic Financial Services Board and the Accounting and Auditing Organisation for Islamic Financial Institutions has also introduced greater harmonisation in the industry.

Additionally, there are a number of dedicated Sharia-compliant equity market indices, such as the Global Dow Jones Islamic Market Index, the FTSE Global Islamic Index Series and the FTSE SGX Shariah Index Series. For an example of the value of these, the market capitalisation of the Global Dow Jones Islamic Market Index was estimated to be 10.65 trillion US dollars in March 2005, and the universe of Sharia-compliant stocks numbered 1942 stocks.

There is another type of Sharia-compliant equity product that I will describe later, known as an Ijarah-sukuk, which is a type of sovereign or corporate bond. 18 sovereign ijarah sukuk totalling 5.6 billion US dollars were issued from 2001 to 2005; and 10 corporate ijarah sukuk were issued over the same period, worth almost 1.6 billion US dollars. These have been issued not only in Islamic countries such as Bahrain, Pakistan and Malaysia, but also by the government of the German state of Saxony-Anholt, which launched a 100-million-euro (or 133 million US dollar) sub-sovereign sukuk – Europe’s first – in September 2004.

In the wake of September 11 and the war in Iraq, many Islamic funds have looked to move away from the United States and British financial markets. According to a Merrill Lynch report, at stake is a considerable portion of the 1.3 trillion US dollars of Islamic funds invested in world financial markets. Therefore the global market for Sharia-compliant, and Islamic funds generally, is large and growing, but unfortunately New Zealand is not a destination for many of these.

This may be due to a lack of awareness among investors of the potential opportunities in New Zealand and uncertainty surrounding the regulatory treatment of Sharia-compliant financial instruments. The Ministry’s project has sought to identify whether any regulatory barriers exist and what changes, if any, will be required to facilitate Sharia-compliant investment into New Zealand. This involved officials from a number of agencies becoming familiar with how Sharia-compliant investment operates.

Most types of trade (buying and selling) are permitted in Sharia. A valid trade is concluded if the seller and buyer exchange an offer and acceptance which specify the object of sale and the price. Any financing conducted through valid trading by mutual consent is permissible. However because of the differences with conventional finance, I will outline for you now the most commonly used contracts in Sharia-compliant finance. These are in two categories, profit and loss sharing and non-profit and loss sharing.

There are two profit-and-loss-sharing modes:

Firstly, a joint venture or musharaka. Under a joint venture or limited liability partnership, two or more partners combine capital and efforts and share in the risk and financial results. This is not a common financing mode among Islamic banks, as the banks are typically not involved with enterprise management;
Secondly, trust financing or mudaraba. Trust financing is a partnership comprising a financing partner who contributes capital and a managing partner who contributes knowledge and entrepreneurial skills. The financing partner is not involved in management, which makes this a preferred mode for banks. Profits are shared on a predetermined ratio, although losses are borne by the financing partner only unless caused by the irresponsible behaviour of the managing partner. Trust financing in farming – known as muzar’ah – involves harvest-sharing between the bank and the entrepreneur, and the bank may provide either funds or land.

There are also five non-profit-and-loss sharing modes:

Firstly, mark-up financing or murabaha. Mark-up, or cost-plus, financing is a common form of trade financing. The agreement is between the final buyer and a middleman or trader. The final buyer asks the middleman to buy a certain object for an agreed price, which includes the purchase price, costs of the middleman, and a profit margin. Mark-up and other forms of trade financing are popular instruments among Islamic banks, and account for more than 75% of the financing provided in some cases. Their popularity is due to the short-term nature of the financing, limited risk, and guaranteed profit. Furthermore Sharia allows a buyer to cancel a deal at any time;
Secondly, lease and lease purchases, known as ijara and ijara wa iqtina respectively. Under a lease arrangement a product is used for a specified period for a specified amount without taking ownership of the product. Under a lease-purchase arrangement, payments include a portion applied toward the final purchase of the product and ownership is transferred at the end of the lease period;
The third non-profit-and-loss-sharing mode is deferred payment sale, or bai’mua’jjal. This allows products to be purchased in instalment payments or in a lump sum at a later date;
Fourthly, purchase with deferred delivery or bai’salam or bai’salaf. Under this mode, the buyer pays the full price on the delivery date. This is typically applied to agricultural or manufactured products;
The final non-profit-and-loss-sharing mode is that of beneficence loans, known as qard hassana. These are zero-return loans to the needy, with no profit to the lender. Service fees can be charged to cover administrative expenses, but should not be linked to either the loan amount or maturity.

Sharia-compliant capital markets are small but growing and there are two key products – equity and shares and Ijarah-sukuk bonds.

Firstly, ordinary shares and different classes of shares are permissible as they represent ownership in the company proportionate to the shares held, however preferred shares and warrants that promise a definite return to their holders – for example during low profit years – while the same is not available to other shareholders are considered to be incompatible with Sharia. The main Sharia issues pertaining to trade in stocks relate to the business of the company whose stocks are to be traded, the form of the stock or share contract, and the Sharia compatibility of the trading practices relating to those stocks. While some systematic screening by indices has started on the basis of the business, very little work has been done around to the form of the contract and the elimination of Sharia non-compliant trading practices.

Secondly, ijarah-sukuk bonds are instruments for governments and corporate entities to raise funds, particularly for infrastructure and other large-scale projects. In a generic structure there are three parties: the originator or beneficiary of ijarah-sukuk; the Special Purpose Vehicle that is the issuer of ijarah-sukuk; and the investors or sukuk holders. There are various forms of sukuk bonds, but it is beyond the scope of this discussion to detail these.

The Ministry’s research is ongoing and we expect to conclude this shortly, but our findings so far indicate that there are no impediments requiring significant legal or regulatory changes for the operation of these instruments in New Zealand. This is good news both for potential investors and the New Zealand economy, but further efforts may be required to attract investment in New Zealand’s Sharia-compliant investment opportunities. Of immediate interest is the lack of a Sharia-compliant banking facility in New Zealand, which will provide the physical means for transactions to occur. This will be a subject of our attention as we go forward, along with other factors as we seek to realise this opportunity for New Zealand.

I hope this short overview has been of some benefit to you, I thank you for your attention this late in the day and welcome any questions or comments you may have.


July 14, 2009 Leave a comment

By: Achmad Baraba

Translation By: Ismul Azhari


The development of Islamic banking is an interesting phenomenon among academics and practitioners in the last 20 years. Not less IMF has also been doing kajiankajian on Islamic banking practices scbagai alternative international financial system that provides opportunities for improvement efforts the international financial system back many felt the shaking and instability that caused the crisis and the economic consequences dominannya more than the financial sector in relation to the real sector economy world.

Some studies show that the rate of growth of trade and money derivasinya grew approximately 800-fold growth compared to the real sector and the not terintegrasinya the real sector activities with the sector so that monetary relief mengakselerasi various distortions in the economic development of the world because of the influence of a strong economy from the speculative behavior and not based on the real condition of the existing economic potential.

Not long before the occurrence of a currency crisis in Asia, especially Southeast Asia, the area is still considered as the area that have iaju stunning economic growth by most experts and international financial institutions, but in fact have some of that growth is more like a soap bubble trick or because the balloon does not reflect economic fundamentals are strong, that nothing is real economic power with a high level of productivity and economic efficiency of the optimal.

Although not all recognize one’s mind but we realize fully that the system is based on capitalist economy and interest base and put the money as a commodity sold even in large-scale turns out to give the serious implications of the economic damage to the relationship a fair and productive.

Speech by PM Malaysia DR. Mahathir at the IMF in Hong Kong the council on matters mentioned above are considered very fenomenal and arouse awareness for the various parties are at least learn more truth about the arguments that appear damaged the world financial system, and even later Soros also has begun criticizing the capitalist system too free flow in the financial world. The political and practical efforts to introduce a financial system based on the view of Islam is still must go through long way in terms of not only The theoretical foundation and practical but iebih of the required strength to convince a group of major international financial and developed countries that the financial system is based on the principles of Islamic economy can guarantee the world economy a more just and bring welfare of mankind in accordance with the Islamic concept of ‘rahmatan lil alamin’

Study on the principles of economic wealth and Islamic economic practices that applicable at the time, especially during the period of Prophet Medina has long done, so now the time has grown and developed a variety of academic study center on economic development, especially Islam on Islamic financial institutions in different countries even though countries such as non-Muslims in the United States Harvard, some universities in London, Australia and of course in the country has a Muslim, including Malaysia and Indonesia.


Islam as a religion is a concept that human life is both comprehensive and universal in the relationship with the Creator (HabluminAllah) and in the relationships among men (Hablumminannas). There are three main pillars in the teachings of Islam which are:

Aqidah (Islam QA): components Islamic teachings about the confidence on the existence and power of God so that faith must be a Muslim when doing various activities in the earth, simply to get keridlaan God as the caliph who get trust from God.

Sharia: Islam’s teachings components of the life of a Muslim in the field of worship (habluminAllah) and in the field muamalah (hablumminannas) which is the actualization of the belief that a keyakinannya. Muamalah own while covering many areas of life, among others, related to the economy or the wealth and commerce called muamalah maliyah.

Akhlaq: base behavior and personality that will characterize himself as a devout Muslim, the sharia based on Aqidah and guidelines that are so-called life has akhlaqul Karimah as prophet Hadith that says’ if I sent Tdaklah except for the akhlaqul Karimah ‘

Quite a lot of the Islamic guidance economic life of the people who, among others, the outline is as follows:

• Islam put money function solely as a means of exchange and not as a commodity, so it is not feasible to be let alone contain elements of uncertainty or speculation (gharar) so that there is not a price especially associated with the money over time but the value for money with the exchange of goods.

• usury in all its forms is prohibited even in the paragraph about the Qur’an prohibition of usury is the last letter of Al-Baqarah verse 278-279 explicitly stated as follows:

O those who believe in Allah takutlah and tinggalkanlah remains of usury, if ye believe. If you know there is no memperbuatnya war from God and RasulNya with you and if you repent then you polcok-core possessions you do not persecute nor teraniaya.

• Prohibition flysoul also in the teachings of the Christian covenant old and the new agreement essentially require the provision of loans to others without interest as the reward request.

• Although there is still the opinion, especially in Indonesia are still doubts whether the bank interest or usury is not included, then the agreement has become scholars, experts and Islamic Jurisprudence banker be Islamic world that the bank interest is usury and forbidden usury.

• Do not permit any form of activities that contain elements of speculation and gambling including economic activities are believed to cause loss to the community.

• Property must revolve (diniagakan) so that should not be based only on the handful of people, and God is not like the property so that the pile does not productive and therefore for those who have any property that is not productive will be a greater charity than if diproduktifkan. This will also be based teaching that states that the position of the earth as a human caliph who receive trust from God as the absolute owner of all the earth and the human task is to make large-prosperity and human welfare.

• Working and living or are looking for worship and compulsory dlakukan so that no one without work – which means ready to risk – can obtain a benefit or advantage (compare with the interest earnings from bank deposits that is fixed and almost no risk).

• In many areas of life including in the economic activities must be conducted transparently and fairly on the basis of like the same like without coercion from any party.

• There is an obligation to make a recording of any transaction that is not particularly cash and there are witnesses who can be trusted (symmetry with the accounting profession and notary).

• Zakat as instruments for the elimination of the obligation which is the property rights of others who are eligible to receive, as well as a strong recommendation to issue infaq and as a manifestation shodaqah importance of equity wealth and fight poverty.

From the sketch above provides a clear illustration of the basic principles of Islamic economic system which does not only stop at the concept level but there are many concrete examples that are taught by RasulAllah, which needs to penyesuaiannya time now with quite a lot of astral conjunction, ‘that is done Jurisprudence by experts in addition to the operational practices by development economists and practitioners of the financial institutions of Islam. Available are the universal and Islamic guidance is believed to be always relevant to the needs of the age, in this case as an example is the development of Islamic financial institutions such as banking and insurance.


As described above the principles of the basic economic system of Islam will become the operational base Islamic bank that is the most prominent is the concept of money and interest that is not less important for commercial purposes is not Islam but recognize borrowing money is a partnership / collaboration (mudharabah and musyarakah) with the principles for results, are borrowing money for the only possible social goals without any reward.

Run the operations function in the Islamic bank will consist of:

• As the recipient of trust to invest funds on a trust investment account by the holder / depositor on the basis of principles for investment policy in accordance with the bank.

• As a manager of investment funds on the funds held by the owner / sahibul mal investment in accordance with the direction desired by the owner of the funds (in this case the bank acts as investment manager)

• As a provider of payment services and traffic services throughout the other does not contradict the principles

• As a manager sharia social functions such as management of funds and the receipt of charity and benevolence of funds (optional function).

Function of the product page Islamic bank will consist of:

• Principles mudharabah namely perjanjisn between two parties where the first party as the owner of the funds / sahibul mall and the second as the fund manager / mudharib to manage an economic activity with the agreed ratio of profit on the results of akan obtained while the loss is incurred during the financial risk the owner is not there is evidence that cheating mudharib conduct or action that does not trust (misconduct) based on authority given to mudharib then mudharabah be divided into mudharabah mutlaqah where mudharib given full authority to determine the selection of the desired investment, sedangkanjenis the other is mudharabah muqayyaddah where the landing is determined by investment funds, while owners mudharib act as executor / manager.

• Prisip Musyarakah the agreement between the parties to include the capital in an economic activity with the division of profit or loss according to the agreed ratio Musyarakah or can be fixed with a temporary reduction or periodically while the end of the project.

• Principles Wadiah is titipan where the first party out of funds or property to the party as the second recipient titipan with the consequences titipan any time can be taken back, which can be charged penitip care. Based on the authority given wadiah then be divided into wadiah ya dhamanah which means that the recipient is entitled titipan draw funds / goods titipan for didayagunakan recipient without any obligation to provide compensation titipan to penitip with the agreement can still be taken at any time required, while the other does not provide trust wadiah titipan authority to the recipient for goods mendayagunakan / dititipkan funds.

• Principles of Buying & Selling (Al Buyu ‘) that is comprised of:

1. Murabahah the sale and purchase contract between two parties where the buyer and seller agree on the price of purchase price plus purchase costs and profits for the seller. Murabahah can be made in cash can also pay with a firm or pay the installments.

2. Salam, namely the purchase of goods with payment upfront and then be submitted

3. Ishtisna ‘, namely the purchase of goods through the order process and is required for pembuatannya in accordance with the order and the buyer made the payment at once or gradually.

• Services-Services include:

1. Rental of Ijarah is an exchange of goods with income rent, when there is agreement on ownership at the end of the lease called Ijarah mumtahiya bi tamlik (the same as the operating lease)

2. Wakalah that the first party to give power to the second (as deputy) to a particular matter in which both parties get a reward or commission fee.

3. Kafalah the parties are willing to become the first insurer on the activities carried out by the second-round match that diperjanjikan where the first party to receive compensation or a commission fee (warranty).

4. Sharf, namely the exchange / sale and purchase of currency that is different from the immediate cession / spot price based on the agreement in accordance with the market price at the time of the exchange

• The principle that good reception and good distribution of funds in the form of alms and other infaq shodaqah and distribution alqardul good that is in the form of the distribution and loan for the purpose of helping the poor to productive use without compensation unless required principal repayment of debt.

From the description above the Islamic banking products in practice can be summarized as follows:

Products / Services Sharia Principles Giro Wadiah yadhamanah Savings Wadiah yadhamanah mudharabah Deposit / investment accounts Mudharabah free investment account does not use the free Mudharabah muqayyadah Receivables Murabahah Murabahah not cash Mudharabah Mudharabah Investment Investment Musyarakah Musyarakah Investment assets rented Ijarah Procurement for goods to be sold or used or own a ishtisna ‘warranty Kafalah Bank Transfer, payment, L / C, etc.. Safe deposit box Wakalah trust Wadiah Letters Mudharabah Sell valuable foreign exchange to buy (non-speculative motive) Sharf


By operating principles that differ from conventional banks to provide differences in the implications of accounting principles both in terms of presentation and pelaporannya. Islamic bank accounting reports will consist of:

· Reporting financial position / balance sheet

· Reports profit-loss

· Reports changes in cash flow

· Reports capital investment does not report changes in the free / limited Note

· Reports on the financial resources and the use of charity resources and

· Reports the use of funds qard / qardul

Some good things that prominent Islamic bank in accounting are:

• Giro and savings wadiah note / debt as presented in the balance sheet.

• Account mudharabah free investment / deposit note / presented as a distinctive account of debt and capital (not debt).

• Account-free investment is not recorded separately as off balance sheet accounts in the form of a report does not change the position of free investment.

• Receivables murabahah note of the remaining selling price is not reduced by tertagih margin that has not been received

• Investment mudharabah and musyarakah presented the remaining value of capital invested or the included

• Asset rented note of the cost reduced by accumulated depreciation.

• Revenue is generally recognized on the cash basis of fixed expenses are accrual basis.

• The results of sahibul mal mudharib and be done with the profit loss sharing or revenue sharing, while the income derived from bank investment funds or from funds not derived from the account of the full investment bank earnings, while income is the full service bank in the bank not shared output.

Accounting principles to the Islamic bank Accounting and Auditing Standard for Islamic Financial Institution issued by the Accounting and Auditing Organization for Islamic Financial Institution based in Bahrain, which was established in 1991 on the initiative of IDB and several large Islamic financial institutions and now has members of almost all Islamic financial institutions.

Bank Indonesia with IAI is in the process to adopt standard accounting standards to be syariah bank in Indonesia which is expected to finish this year.


With the foundation kokohnya bank sharia law in Indonesia through the completion of Law no 7 of 1992 on Banking with Undangundang no 10 of 1998, which was then equipped with a policy of Bank Indonesia Decree of the Board of Directors of Bank Indonesia and the potential of both the country and abroad the estimated growth and development prospects sharia bank in Indonesia akan shows that brisk growth opportunities considering the conventional banks to open branches or subsidiaries into a branch to convert sharia.

Meanwhile, at this time until the number of Islamic financial institutions around the world have reached 200 the number of fruit spread both a Muslim country and western countries like the UK, Switzerland, Denmark, and others, also in the United States and Australia in the form of cooperatives.

It is expected that the banking system or even Islamic economic system of Islam akan altematif system to be able to overcome the imbalance of international financial system that are terpuruk today. Wallahualam.


July 14, 2009 Leave a comment

By: H. Ismul Azhari, Lc, S.Kom

4.1. Commodity Murabahah Product In Perpektif legal economy islam

Based on the description in previous chapters, so in this chapter will be presented and discussion of the results of the analysis on the CMP and the things associated with it.

4.1.1. In the akad Used CMP.

In CMP there are some combinations that are used akad akad wakalah among others, bai ‘musawamah, and bai’ murabahah

If a customer opens a deposit account using the CMP system at least perform a combination of the three contract as follows;

1) Sale and purchase contract made by the bank to the broker.

Sale and purchase is more likely to sell or buy a bargaining musawamah if viewed in terms of the original price. Bank customers represented here to purchase a commodity. Basically the bank is not buying a commodity broker from the bank but will be told to the broker to buy a commodity exchange in the measure. Because the only broker that can do transactions in the exchange. The bank also deputize to the broker. System in the stock sale and purchase is not in accordance with the sharia, because the sale and purchase the bank to broker the sale and purchase sejatinya futures, as will be explained later that the end of the discussion.

2) Sell-buy murabahah

The sale and purchase with the purchase price on the basis of cost plus a profit and the like. Buy a commodity in the customer’s stock is sold to the bank with the sale and purchase system in which the murabahah akan paid downright (deffered) according to customer agreement. Or customers to the bank to depute menjualkannya back to the broker B with murabahah system. Here means that the position of the bank as agent for the second time. And the bank just to get out of this transaction fee. Islam in the sale and purchase in a way allowed by sharia murabahah.

3) The akad akad wakalah

This happen on two conditions, when the first customers to dibank. Deputize for the bank that is buying a commodity for money yng ditabungkan kebank. When both the client appoints the Bank as representatives to sell the commodity in return. Wakalah in Islamic law is a legal contract, which can be done with the wages or commissions, or free of charge / free.

4) Wa’ad

Besides the above there is a clause in the note that this contract is a combination of unilateral promise. Namely unilateral agreement (wa’ad) to purchase the commodity from the customer, which is still in debate, whether the promise can be forced to obey or not. If both parties make a joint agreement for the sale and purchase transaction will be done later, Imam Shafi’i said, if the transaction is not valid. However, if only one party promises to buy these commodities, this will not affect too much. Some of the Ulama say that the promise can not be unilaterally forced to implement, while the contemporary Ulama-the concept of this pro-feel for the sake of smooth transaction in the commercial at this time, the unilateral promise to be binding

4.2. Commodity Murabahah Porduct Mechanism (CMP)

In the discussion chapter is focused on understanding the flow on this product, analysis of the second pillar and the terms of the contract digunkan. the third discusses the motif of this transaction, and the last on the concept of the tawarruq both pro and kotra, and in accordance with the initial goal of writing a scientific paper will be focused on mafsadah caused about this concept in general

4.2.1. Procedure or transaction flow CMP for short-term deposit

Product is the short-term deposits with a fixed margin. and the core of the transaction is carried murabahah to claim tetapnya margin (fixed return). Before untangle the issues contained in this product, I will explain how this transaction flow can be set so that the margin deposit is fixed in accordance with sharia.

In concept and practice, there are 2 slightly different scheme. The concept became the first bank agent when buying and selling the concept and only the second bank to be representative for the purchase only. Below is the first bank in the position of Figure 4.3 Flow Chart of determining margin fixed (fixed return)

From the image above can be explained as follows.

1. First Customer is to come to open a bank account of the short-term deposits Rp.1.000.000 with returnnya 3% in a period of 3 months for example. Question here is how the show can determine the price of deposits with 3%?. The answer is because this product is based murabahah. This can be seen in the picture above. The relationship between customer and bank is the first transaction as the agent bank, and banks as commodities buyers. Wakalah consequence of this is to buy a bank to sell to customers disandarkan must be using either the name or the name of the customer’s bank.

2. From the picture above on the 2 after the agreement between the bank and the bank customer’s going to ask the broker to buy a number of commodities with funds Rp.1.000.000, – in cash.

3. Then brokrer implement the bank. So that the broker get the voucher transaction (Warrant), which was then given to the bank. Then the bank told customers that have purchased komoditasnya. Thus, customers have had these commodities. After that the customer ordered the bank to sell To return to the cost plus margin (murabahah).

4. After that commodities purchased become the property of the customers, then sell the commodity at the price Rp.1000.000 +3% Rp.1000.000, – = Rp1.030.000 (murabahah) to deputize the bank to the broker to sell B. So that customers can margin of 3% of the funds didepositokannya. Is the origin of 3% and the return to be fixed. Here on the bank’s position as an agent again not principle. If the bank as the buyer will buy the bank for over Rp.1030.000, -. Then sell the bank to broker the original price is Rp. 1000,000. Flow from all over have some things to be criticism over this practice from both sides subtansi and motivasinya. The fixed margin.

For example, over a hoard of customers Rp.1.000.000 with returnnya 3% within 3 months. Margin is determined when the contract before the opening of new accounts. If you see this from the flow above the reasonable results of which 3% was obtained. And no one glance, or this transaction in accordance with the sharia, because this is a sale and purchase with the profits (murabahah).

In commercial transactions it is natural that the two karateristik certain contracts (NCC) and the uncertain natural contracts (NUC). Which of two karateristik is in terms of results. NCC benefits are defined in the NUC benefits can not be determined. One of the contract is a sale and purchase NCC murabahah specify where the benefit in advance. Darisini and we often terjebab therefore, need to remember that the benefits can be determined when the contract to sell or buy it happen. CMP transaction is in this return is determined by the bank-the bank’s position here not as a seller but as with the agent-client agreement. This means that sale and purchase transactions have not occurred here, but will still happen later. So there is still potential for failure in the sale and purchase will be done.

Sale and purchase transactions that result in a profit can be seen in the picture above is after the process to 6 (six), if the bank remains as the agent-profit means that the obtained diwaktu that will come after some of a transaction.

This transaction does not have anyone with the practice of usury dibank now-conventional bank, the difference is I use frill sharia. Because of how the bank or the customer may be able to determine returnnya are fixed in the transaction are not selling belinya occur. Moreover, if we see more customers alike referred to as traders because it will make buying a commodity and will be selling a commodity. Remember the trade is a person who has to sell to buy, benefits that they can not depend on certain market conditions at that time. So, in trading profits can not be determined beginning this is incompatible with the principle of al-khoroj bi dhoman (business results appear along with the cost) and al ghunmu bil ghurmi (benefit risk appear together). Beginning with the determination and the determination to make this entry in the later category nasi’ah lap. Sale and purchase made by the bank may not, fortunately, and can also be losers. So the benefits have not been determined although he can make sale murabahah because the agreement has not occurred murabahah purchase. Tetapnya new benefits can be fixed when it has occurred. This is very different when murabahah as financing products Problems of the third party purchase.

The problem is when a third party bank here once again as a customer representative to sell komoditasnya. In the concept that the occurrence of murabahah that is when the client sells the commodity he is buying with the price plus the broker B. Here, when the broker B that can not be and can not be found until the time limit. then this transaction is a deposit that provide fixed benefits (fixed return) of 3% for 3 months (or 1% and 12% a year). The advantage is still the same lap as the bank is prohibited.

If the broker was not found to limit the time that the bank will buy the sale and purchase enter this category can be forced to sell to buy. Because the bank is forced to buy commodities to fulfill the promise to give him Percentage agreeing that you have. According to scholars syafi’iyah buy and sell hanabilah is not valid because no keridhaan in the contract. The form of savings customers.

When forming a third-party funds, the union funds that are based transaction Murabahah no basis fatwanya. In Fatawa No. 1, 2 and 3/DSN-MUI/II/2000 mentioned that the union funds in the form of a gyro, and savings deposits is based on the transaction Wadiah or Mudharabah; there is no fatwa which allows the deposit of the akad akad murabahah. Although some time ago was to allow DSN for CMP transksi deposits.

In concept murabahah profits over the customer is certainly obtainable. And transactions that occur is once in a period that has been determined. Savings in various forms has a distinctive legal consequences tasharruf up (legal action) on the funds. To wadi’ah have savings that can be used by the bank without any compensation to the customer but may mengasih bonus to him (wadi’ah yad dhomanah). that there can not be used (wadi’ah trust), and to deposit the funds collected can be used with the fate and loss (mudharabah and musyarkah).

In a draft CMP, the sale and purchase occur only once in the tempo of time. Reverse of the previous question is how to buy it if the sale occurs within a few days it means that the funds saved in the form of deposits dibank the unemployed. If these funds are used again by the bank to make a sale and purchase benefits already enjoyed by certain banks. And perhaps this is sought by the bank because he was so fresh funds are very liquid and cheap. If this does not leave the owner to buy this food sale including sale and purchase fudhuli. According to scholars malikiyah buy and sell hanfiyah suspended until there is permission from the owner. Hanabilah are buying and selling syafi’iyah is not valid.

Other reasons why the benefits of this can still be done because the bank transaction is dynamic so that the determination of margin can be made. If you like this then the reason for this is that the strengthening of uncertainty to gain advantage is very high.

Practice the short-term deposits or deposit Commodity murabahah is similar (similar) with a certificate of depsosit conventional. This means that the product can diperjualbelikan between the client (the bank / institution). So this product may include product category derivatives issued by the bank. With this product it is likely to increase speculation akan large financial institutions for sharia. Then what is the difference with the conventional pattern of transactions at this time. Between Murabahah, ba’i dain bi offseting or dain?

If more and more we cermati we associate with the previous sale and purchase, the sale and purchase made by the bank to the broker. Sale and purchase of stock is not a sale and purchase, but that will only promise to make a sale and purchase recorded. Sell belinya not yet occurred. So murabahah sale buy sell sejatinya this promise to do the selling and buying commodities, the future. Means to sell something that has not owned and are not ditangannya.

لا تبع ما ليس عندك (رواه الخمسة عن حكيم بن حزام)

“Do not sell something that does not have you”

(from the Judge David HRAbu bin Hizam)

Indeed, the concept murabahah allowed by sharia. However, in practice objeknya not the property is meant by sharia. In concept deemed given transaction object (deemed to have qualified and rukunnya). In fact, if viewed from the transaction flow process dibursa measure transaction object does not exist. Sale and purchase is more suited to the sale and purchase referred to ad-ad-dain bi dain sold with murabahah.

Because this transaction comes from the exchange, this transaction murabahah with the akad ofsetting or reversal of earlier positions on the change in the long and short positions of vice-offsetting has been described in chapter 3 beginning on futures-talk. The question here is where the moral values didengung-dengungkan as pembeda with the conventional concept of sharia in sematkan? The purpose of sharia is being made towards human Falah.

From this concept seems memperturutkan carnality that benefit in any way (hilah) despite the fact that usury is prohibited. Abdullah saeed in his book menyoal bank syariah criticism over the neo-revivalis have been discussing how long the danger of usury, if not moral and ethical aspects, as important hilah to achieve the objective. Tawarruq

Transaction as known by the name above Tawarruq, as approved by the perpetrators-is sale and purchase transactions made with the goal not to use goods, but to generate cash for the buyer (in this case the bank). DSN not set a fatwa on Tawarruq. Contemporary scholars who joined in islamic fiqh academy was this transaction that is prohibited in its annual conference to the 17 2003. For more details of this problem will be described in sub chapter apart.

4.2.2. Implementation Rukun And Terms For Deposit At the CMP

From the data that appeared in the draft CMP consists of several well akad akad akad primary and secondary. Main contract is named as the Commodity murabahah akad jual beli murabahah, other major contract is musawamah sale and purchase contract and the last is the default wakalah. Akad-akad this can not be separate-separate in the analysis, all interconnected. So can not see the partial. For the analysis of flow and the procedure above, we can provide in the table following the inter-related;

Based on the above table there are conditions that are not well met in Siga, the contract, and the object akadnya. On sighah requirements are not met the requirements and consent qabul occur in one chamber. This means keduabelah parties to sell and buy a present to discuss the same topic. This transaction occurred dibursa measure where the buyer and the seller did not know who the opponent transactions. They only see the list on the electronic board.

Then on the basis muta’aqidain there is no problem with the requirements that must be fulfilled by both parties that berakad. To ma’qud ‘alaih there are 4 conditions that are not fulfilled the first holy object and price, in stock items that have not only have underlying assets only, and based on the price of the currency did not exist. Second requirement is not fulfilled can be used in syara ‘. Technically in the goods and the price can not be used according to syara ‘because they are never there and never have to shift ownership dimnafaatkan by both.

Third requirement is that goods sold are owned by the seller. In commodity exchanges are in a place and never move dilondon-especially gold-sellers do not have many more items for sale barga the issue is not the seller clearing institutions. Position to buy or sell can be done by anyone who does not even have the goods. The last condition is not fulfilled can be either goods or diserahterimakan price. According to the survey, only about 2% occurred The receipt of goods. Most of the cash settlement is the withdrawal gambling (zero sum game). And the main transaction is not delivering the goods and prices, so in general there is no consignment of goods and prices.

Sell murabahah like this is a continuation of the first sale and purchase made with the bank broker. See the above table it can be concluded that this contract is not valid because it can be said in some condition is not fulfilled with perfect good of the shighoh, ma’qud ‘alaih and additional requirements specific to murabahah.

Murabahah this transaction in terms that are not met from the ma’qud alaihnya is the same as the previous sale and purchase of the item and the price is not pure, can not be used in syara ‘, can not diserahterimakan, goods that are sold not owned by the seller. Specific requirements for additional murabahah on one condition that is not fulfilled this happens because the result of previous transactions. Terms of the transaction is legitimate before should, in the transaction are murabahah this transaction before the transaction is not valid because the first transaction includes bai ‘dain or dain bi bai’ bi times the time prohibited by Syariat.

View from above the third contract, it can be concluded that the concept and mechanism of this transaction is entirely legal and not prohibited by Syariat. Because there are conditions that are not fulfilled in the akad-akad akad primarily on the bai ‘musawamah and bai’ murabahah.

4.1.2. Motif Or Transaction Goal The CMP

It has been described above that the early appearance of this product is the lack of means of bank liquidity and financial sharia sharia. Kemudain to develop not only liquidity but also to pembiyaan and short term deposits. The primary purpose of all this is to obtain the liquid fresh funds but also beneficial for the people concerned.

Special deposits for short-term purpose is how to get bank funds are fresh and cheap customers still get the results from the funds loaned to the bank. This concept is the same as the actual interest rate (fixed return) to avoid but that does not use hilah said riab namely dperantarai sale and purchase murabahah. So the goal from the beginning of the bank intend to get the cash, with a number of funds that pay more in the future with hilah through contract, the appointment of representatives and the MoU as if this transaction is permitted by sharia. So basically this transaction motive is the same with the conventional.

Figure 4.2

Position of the product CMP views the bank’s balance sheet

From the image can be seen for the discussion of the CMP margin deposits remain in the entry category pasiva, in the management of bank entry in syariah bank fund management. Based on the picture of the purpose of this product is the selectivity of public funds to save more kebank sharia. Featured margin offered is fixed or fixed return guaranteed by the bank.

Has been mentioned above that seen when the determination of margin does not have anyone with usury. But the reason this is different from the lap due to a hilah that allows freedom from usury because the procedures are made in such a way. To use hilah transaction, the legal scholars-holds valid only as long as does not damage the fundamental, basic principles of the sharia principles, or impair the benefits. However, the most important problem is the intention, any act occurred basically because of the intention, and everyone will get a reward based on the intention to do all things.

When someone good intention, can be done in the receipt, what if the intention is wrong, say it can be done wrong.

The scholars make a rule; “The standard in each transaction is the meaning of meaning (which dikandung) and goals (it) is not in the form of formal or text-lafalnya”

Connection with this Qoyyim Ibn Al-Jauziyyah as cited by Haroen Nasrun states; “who examine the (understand) in depth resources syara ‘akan clear that for asy-syari’ cancel spelling-pronunciation dituju by the perpetrator (a contract) is not the fact and meaning of actual goods …….. who does not memperhatikantujuan-purpose bebragai the contract and the (running) in accordance with the contract will result in the form of formal to leave (not melaknat) people of the wine rack ((used for wine) and let each person to do so, despite clear objective unutk khamr ….. make that goal a goal-confidence and confidence can be a benchmark in many different forms of legal action and the expression-expression, as well as problems that occur in practice with brkaitan-taqarrub and practice of worship (Allah). The purpose, intent, and confidence to create something to be halal, haram, valid, imperfect, obedient, maksiat, as was the goal in ibdaha make it mandatory, is recommended (circumcision), forbidden, valid or imperfect.

Indeed intention can not be seen by eye but if the intention can be so has become a trend or a motif so that together with this trend indicate intention. In exchange measure this problem can not be seen only from individuals in the meilhat what motive and purpose, but must view the macro.

From the beginning that the intention is clear Sharia bank products glance This is not the remote berbedda with conventional products. menghalalkan With the many different ways or hilah so that their destination is reached. Had this product CMP objeknya changed kepasar spot is no longer interesting for the perpetrators of this tranasksi, because it is not liquid anymore.

Has been mentioned above that the practice Commodity murabahah similar deposit at this time (similar to / like) with a certificate of deposit, which means you can diperjualbelikan again. Because this product is similar to the product said it could be the conventional goal of this product is also used to make speculations. Where is speculation at this time contains many more aspects of gharar (vagueness). With this product will increase the concentration of money pda monetary sector.

4.2.3. Akad Tawarruq Implementation

In Kekinian To this the scholars still argue about the transaction between tawarruq this can not and this transaction. The main reason for allowing the problem is related illat. If illat the mengharamkannya has been removed hilah with the way the transaction is allowed are more on the counter and intention maslahah mafsadahnya incurred from the transaction.

Islamic fiqh Academy, the state of Islamic countries that joined in OKI its annual conference in the session to 15 in the city of Mecca, has issued a resolution in support perbolehkannya transaction tawarruq, provided, the buyer does not re-sell the goods that have been in belinya with the seller first a lower price, directly or indirectly, that is the case, it is entered in a transaction that contains usury. However, the general Academy Jeddah Islamic fiqh, on the session to the 17 annual conferences, a look that Tawarruq practiced by Financial Institutions for Sharia law is illegal or prohibited.

Tawarruq structure in the adoption of Financial Institutions by Sharia (LKS) is now the structure is different from the classical tawarruq or tawarruq fighi. Tawarruq structure that has been modified by the banks and sharia have a variety of different purposes between the Bank syariah banks with sharia the other, which is known by the name of tawarruq munazam or regulated tawarruq or organized tawarruq. Stock tawarruq fiqhi or classic and tawwaruq munazam can be summarized as follows:

The scholars who allow the implementation of this tawarruq munazam holds that if each step of the procedure in lalui in processnya accordance with the principles of sharia. then there is no reason not to say that all procedures are valid. The scholars who support tawarruq munazam that the transaction is very similar to the tawarruq fighi, only the more well oranized (regular) to be more smooth and quick process.

The arguments of the scholars on the contra tawarruq Munazam namely: If the seller sells the goods with the price is higher than the market price to mutawarriq, as a result of the pending payment / installment with. With such means tawarruq munazam are indications of cooperation between the Bank and its customers that aims to provide fresh funds to the credit obligations nasbahahnya or banknya. So that the principle of intention-objektifitas of intention has been described in the discussion of the motives-in this context is relevant. Hilah second problem that is used by scholars who see the existence of contra hilah or engineering to do the things in the Disallow, the indications to get to the usury which is permanent. Through some process, Bank Syariah only role as a mediator who does not really seriously interested in the sale and purchase commodities or commodities entering international markets. So also its customers, does not intend to have a commodity or in the case of a particular case does not know about the process manahu sale and purchase commodities. Because the main goal is just to get cash from the bank immediately (if the customer’s pen-shaped deposits), with debt to be paid with the installment. Therefore, some of the Ulama regard to this transaction is a transaction Ribawi

In relation to point two above is the main illat and hilah. Where to usury or the causes which forbid usury transactions containing pro tawarruq scholars who use hilah. However, the counter not only stop at the hilah they put more trasaksi hidden wisdom behind it. They see morality more the perpetrators rather than the formality transactions. According to the author in setting a legal illat is not enough but also need to see hikmahnya. This is necessary because the connection with the hiyal used to melegalkan a transaction muamalah. So, in the usury law in Islam is only a legal related forms only outside or formalitasnya course, there is no place for the moral to speak. Fiqh law should be able to run its function as a controller formal legal laws and moral ethics also checker community.

Back on the tawarruq munazam, the results of the research Ulama, tawarruq munazam have violated some of the restrictions mentioned in the hadist

5. Explicit with the same formation in inah, because komoditinya back to the original seller.

6. Where on the sale and purchase transaction for this benefit through the loan. So the purpose of the tawarruq munazam this is the exchange of cash with debt greater than value. That’s why tawarruq munazam can not meet qualifikasi as a financing alternative to conventional financing on the interest-based (interest / usury).

7. One thing that is also criticized by many of the scholars who do not agree with the implementation of the transaction tawarruq munazam this is: buy commodities in the international market is a reflection of the transaction ribawi, namely al fadl usury, which is prohibited.

8. And last Jeddah Islamic Figh Academy, in its annual conference to the 17, does not give consent on tawarruq munazam practices that apply in some Bank Syariah at this time, karenakan in practice this is just a paper at the top to get the cash.

4.2.4. Why Not The Ulama Previously Said Not On Tawarruq?

This question was also haunt the author. To answer the question that needs to remember is this problem including problems ijtihadi that can change according to changes in place, situation, time, and because of social changes. Ijtihadi be changing the law is Islamic law based on the principle that has been agreed by all fuqaha (fiqh experts) and ushuliyin (fiqh experts ushul) states that;

تغيرالأحكام بتغير الأزمنة و الأمكنة و الأحوال

“Law is the law can be changed according to changes of time, place and circumstances “

الحكم يدور مع العلة وجودا وعدما

” Law rotate with illatnya (the cause of law) whether there is a lack of law and “

M. Nejatulah Sidqi provide answers about the great questions above. First fuqaha the situation is different and the macro-economic analysis tools needed to find mafsadah from tawrruq not have an effect at the time. The second mafsadah’s tawarruq the economy as a whole at this time does not exist at that time. As in the case of the benefits of a particular individual easily found.

He reasoned that the economy of debt at that time was not a part of at the moment. Money at the time was not based on debt. No walupun even slightly resemble the debt market as at this time. Vendors speculation at that time focused on the real price of goods and services than intrumrnt debt. Orisil economic fluctuations occur at the time of drought, famine, crop failure or large scale changes in the population than in the financial sector, business debt financing as a second choice etc..

4.2.5. Commodity Murabahah; Maslahah Or Mafsadah?

It has been described above that the contract used in the concept of Commodity murabahah is tawarruq akad. As the author ungkapkan before that to see if this product according to the sharia or not is not only seen from the scheme or akan transaskinya flow but should also be seen from the economic aspect as well. From the writers of literature in general get that this concept gives mafsadah greater than maslahahnya.

Essence of the concept of CMP is to use tawarruq contract and the main goal of this concept is how to obtain liquidity both in terms of the customers in terms of the bank or the bank itself. Authors concur with the M. Nejatullah Sidqi that the concept of tawarruq this mafasdahnya greater than maslahahanya if dilhat in terms of public interest. Below is a mafsadah has Sidqi be by:

1) The establishment of debt Tawarruq which tend to increase in volume.

2) The exchange (exchange) with the money now money dikemudian days is not fair in terms of perspectives, including the risks and uncertainties.

3) This is the Maintenance of debt on a continual basis, such as the direction of the gambling transaction speculation

4) This is based on the financial debt (debt finance), which continuously, increase the stabilan in ekonomy. In debt-based economy, money suplay linked to the debt which is increasing tendency kedepannya (expantion) inflation hikes.

5) This is the injustice in income distribution and welfare. Financial and debt based on ongoing, ketidakefesienan in the allocation of resources.

6) With pengkonsolidasian debt-based financing (debt financing) contribute to increase the levels (level) concerns and damage (destruction) environment.

If viewed from the point of view of banking, mafsadah incurred is as follows:

1. Beginning of the first Islamic bank emerging (sharia) is to eliminate the usury jargonnya profit and loss sharing. To this jargon is not realized. Because the composition of a large murabahah is used. CMP with the short-term deposits that are bound on the derivatives market will steer the bank’s initial concept. In the end the paradigm berpikirnya bank syariah same paradigm with the conventional banks.

2. Bale-bale the sharia mengerucut to the development of the concept Tawarruq / Tawriq in the form of Commodity murabahah was only profitable because of the few functions that negate most digembar-rant in the sharia banking as’ the true financial intermediary between financial sector and the real sector ‘. And only this product berkutat in the financial sector only

3. As described beginning on this product to the more focused and institution-korporate example of fact is HSBC bank sharia issue when this product is that customers become Danamon Sharia-bank. This means the funds the bank syariah akan increase the concentration of funds in the financial sector as well as conventional. And that is only a few people enjoy it. Morality-ta ‘in the economic-awun not realized that there is profit morality

4. If sharia banks are doing more transactions Commodity murabahah to attract savings / deposits from customers murabahah local purchase and then komoditasnya out-of-kelondon happens is that the cash outflow from the large-scale local to foreign country is in need of funds to finance a major development sectors riilnya. This will increase the suffering people of Indonesia. And the function of sharia banks in Indonesia to attend the financial sector as a link with the real sector.

5. Diterapakan practice that this is a type of deposit certificate of deposit (CD) means that this deposit can diperjualbelikan again. So there is no difference with the existing conventional. This CD includes products used derifativ form. This means this product on akhirnaya activities will lead to speculation that penuih with gharar aspects.

6. This product will add a gap (discrepancy) between the real sector and monetary (financial) greater. Where is the imbalance the real sector and financial rasionya at this time has been reached 6:500. The greater this discrepancy shows the high level of poverty and unemployment in the real world.

From the description above can be concluded that the author mafsadah incurred greater than that obtained in the maslahah. Given that in one of the sources of law saddu dzari’ah (tidakan preventive) where we must take action before going marabahaya prevention and fiqhiyah under this rule;

درء المفاسد مقدم على جلب المصالح

“Avoiding damage / risk is more interesting precedence over expediency”

الضرار يزال

“Marabahaya is eliminated”

So in order to avoid a larger mafsadah again, this practice is prohibited because the transaction does not comply with the objectives of the Islamic sharia (syariah maqasid) maintain the property. Property here is not a private property but also in the sense of a country property.


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