Publication: The Application of Sequencing (Tartib) to Determine the Validity of Personal Financing Tawarruq Contracts: A Study in Selected Islamic Financial Institutions in Malaysia
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Date
2023-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Islam Malaysia
Abstract
The Islamic financing contracts have witnessed rapid development in the Islamic
financial sector in Malaysia. The application of sequencing (tartib) is crucial for bank
managers, financiers, and investors to verify the validity of Islamic financing contracts.
Therefore, this study aims to explore the issue of sequencing in Tawarruq contracts and
its impact on Islamic financial institutions. It also aims to analyze the extent of
commitment of selected Islamic banks to sequencing in Tawarruq contracts, and then
propose a logical methodology to address the sequencing issue in the process of
Tawarruq contracts in Islamic financial institutions. This study adopted a qualitative
research method, utilizing both primary and secondary data documented through
content analysis methodology. It also relied on personal interviews with some
employees of the Islamic bank who willingly participated to obtain realistic information
from the banks. The study concluded that the application of sequencing in Tawarruq
contracts in Islamic financing is crucial as it ensures the validity of these contracts. In
order to effectively implement roles and responsibilities, especially in Tawarruq
contracts due to their widespread use, players and regulators are encouraged to enhance
the local Islamic finance system to become a better platform in the future.
Description
Matric: 3211412 (FSU)-Restricted until November 2026
Keywords
Islamic financing, Tartib, Tawarruq, Islamic banks, Sequence, Islamic finance—Religious aspects—Islam, Banks and banking—Islamic countries, Finance—Islamic countries—Management, Islam—Economic aspects, Banks and banking—Religious aspects—Islam
Citation
Muhd Aiman Hakim Bin Zaharudin (2023). The Application of Sequencing (Tartib) to Determine the Validity of Personal Financing Tawarruq Contracts: A Study in Selected Islamic Financial Institutions in Malaysia [Master’s thesis, Universiti Sains Islam Malaysia]. USIM Research Repository.