Shariah Investment Agreement: The Legal Tool for Risk-sharing in Islamic Finance (De Gruyter Studies in Islamic Economics, Finance & Business)

Risk-sharing investment is currently the buzz word in Islamic finance. However, there is an incongruence in applying multilayered and opaque __Tijarah__ contracts for investment purposes. This has contributed to the divergence between Shariah and Common Law and caused tremendous problems and systemic legal risks to Islamic finance. The authors of __Shariah Investment Agreement__ introduce a legal tool in the form of a Shariah Investment Agreement carefully drafted to ensure that it is Shariah-compliant and can be applied in Common Law jurisdictions as well, so as to allow for the execution of risk-sharing investment in Islamic finance. It details the building blocks and key considerations that must be noted when drafting such agreements so the investor and investee will know what to expect when entering into such a contract. Proper implementation of the Shariah Investment Agreement will pave a clear route to a harmonious convergence between Shariah and Common Law and lead to Islamic finance developing further to become a stronger, unstoppable force in the finance industry. * Explains concept of risk-sharing investment under Shariah and Common Law * Details the building blocks and key considerations when drafting Shariah Investment Agreements * Case studies and step-by-step guides on drafting of Shariah contracts

Risk-sharing investment is currently the buzz word in Islamic finance. However, there is an incongruence in applying multilayered and opaque Tijarah contracts for investment purposes. This has contributed to the divergence between Shariah and Common Law and caused tremendous problems and systemic legal risks to Islamic finance.

The authors of Shariah Investment Agreement introduce a legal tool in the form of a Shariah Investment Agreement carefully drafted to ensure that it is Shariah-compliant and can be applied in Common Law jurisdictions as well, so as to allow for the execution of risk-sharing investment in Islamic finance. It details the building blocks and key considerations that must be noted when drafting such agreements so the investor and investee will know what to expect when entering into such a contract.

Proper implementation of the Shariah Investment Agreement will pave a clear route to a harmonious convergence between Shariah and Common Law and lead to Islamic finance developing further to become a stronger, unstoppable force in the finance industry.

Acknowledgements Foreword Contents Chapter 1 Introduction Chapter 2 The Shariah: Refining Bay’ and How It Can Be Applied Chapter 3 The Common Law: Its Background and Applicability to Bay’ Chapter 4 The Shariah Investment Agreement: A Solution to Islamic Investment Chapter 5 Policy Recommendations and Future Research Chapter 6 Conclusion Appendix A Key Quranic Ayahs and Translation Appendix B Commodity Murabahah Case Study Appendix C Comparative Analysis of Musharakah by Bank Negara Malaysia and AAOIFI Appendix D Case Study: Shariah-Compliant Securities as Determined by the SAC of SC (as at 2016) References List of Abbreviations List of Cases List of Legislations About the Authors Index