Islamic Commercial Law
Encyclopedia
Islamic Commercial Law by Mohammad Hashim Kamali
, professor of law
at the International Islamic University
, Malaysia, is an analysis of options
and futures contract
s as trading tools from the point of view of shariah.
The book is divided into three parts: the first describes derivatives
trading in its nuts-and-bolts in secular terms. The second part looks at the issue of whether futures trading is permissible in Islamic law, and concludes that it is, due to the principle of maslaha
, i.e. consideration of the public interest. The third part of the book draws the same conclusion with regard to options.
Mohammad Hashim Kamali
Mohammad Hashim Kamali is professor of law at the International Islamic University of Malaysia. He has taught Islamic law and jurisprudence there since 1985....
, professor of law
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
at the International Islamic University
International Islamic University
International Islamic University may refer to:*The International Islamic University Malaysia *The International Islamic University, Islamabad *The International Islamic University, Chittagong...
, Malaysia, is an analysis of options
Option (finance)
In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the...
and futures contract
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
s as trading tools from the point of view of shariah.
The book is divided into three parts: the first describes derivatives
Derivative (finance)
A derivative instrument is a contract between two parties that specifies conditions—in particular, dates and the resulting values of the underlying variables—under which payments, or payoffs, are to be made between the parties.Under U.S...
trading in its nuts-and-bolts in secular terms. The second part looks at the issue of whether futures trading is permissible in Islamic law, and concludes that it is, due to the principle of maslaha
Maslaha
Maslaha is a concept in traditional Islamic Law. It is invoked to prohibit or permit something on the basis of whether or not it serves the public's benefit or welfare. The concept is related to that of Istislah...
, i.e. consideration of the public interest. The third part of the book draws the same conclusion with regard to options.