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Ranking the Compliance of Islamic Banking Home Financing Products with Maqasid Shariah Using Ahp
Journal
International Journal of the Analytic Hierarchy Process
Date Issued
2022
Author(s)
Mustafa Omar Mohammed
Ehsanullah Agha
Thavamaran Kanesan
DOI
10.13033/ijahp.v14i3.891
Abstract
Compliance of Islamic banking products with Maqasid Shariah has been a never-ending debate. However, most discussions are merely explorative, descriptive and perceptive in nature. This article aims to evaluate two types of home financing products in Malaysia based on the Maqasid Shariah of the product development process in Islamic banks. To provide a more coherent and concrete decision, the Analytic Hierarchy Process (AHP) has been used. Bay’ Bithaman Ajil (sale with deferred payment) and Tawarruq (monetization) have been chosen to represent sale-based financing and Musharakah Mutanaqiṣah (diminishing partnership) represents partnership-based financing. The overall results demonstrated that partnership-based financing complied with the social requirements of MSPDF (Maqasid Shariah-based product development framework) at 87.5%, while sale-based financing was rated at 12.5%. The findings will assist Shariah advisors, Islamic finance product developers, economic analysts, financial engineers and policymakers to incorporate the relevant Shariah objectives in Islamic financial product development.
Subjects
File(s)
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Name
RANKING THE COMPLIANCE OF ISLAMIC BANKING HOME FINANCING PRODUCTS WITH MAQASID SHARIAH USING AHP.pdf
Size
1.48 MB
Format
Adobe PDF
Checksum
(MD5):9d368b2846361b757dc6ca3ba2e19f8b