Bai Bithaman Ajil Definition: A sale with the payment of the selling price deferred to an agreed later date. Because the Salam contract deals with the delivery of an asset which is not in existence, the Shariah highlights that strict rules must be adhered to in order to ensure that the right of all parties are protected. Bai` al-Sarf (Currency Exchange) 4 of 16 Issued on: 11 April 2018 PART B SHARIAH REQUIREMENTS AND OPTIONAL PRACTICES 7. SHARIAH RESOLUTIONS IN ISLAMIC FINANCE 2. 2. A debt must have been created through a contract of deferred payment sale of goods or service. This Project Paper is a partial fulfillment of Module SH-2002 of part II of Chartered Islamic Finance Professional (CIFP) INCEIF – The Global University of Islamic Finance September 2014 CIFP SH2002/ MIFP 5033 Shariah issues in Islamic finance SHARIAH ISSUES IN BAI’ BITHAMAN AJIL FINANCING Jazeel Abdul Wahid 1400108 Submitted to Assoc Prof. Dr. Ahcene Lahsasna Kuala Lumpur, Malaysia … 41 4. Bai Al-Dayn is also referred as Bai Al-Kali Bil-Kali or Bai Al-Dayn Bil-Dayn. Majority of Muslim jurists believe that bai-al-dain with discount is not allowed in Shariah. discounting of bills receivable or debts receivable. Dain means “debt” and Bai’ means sale. Assignment of Liabilities in al-Ijarah thumma al-Bai` Most vehicle financing facilities offered by Islamic financial institutions are based on al-ijarah thumma al-bai`(AITAB) concept. element must meet the necessary conditions. EVIDENCES However market player are required to strengthen and enhance their operational process and PILLARS documentation to comply with the features of bay’ al-inah permitted. - The merchandise exists at the time of contract. AiTAB as an Islamic contract should be practiced under Shariah, with reference to fiqh muamalat principles and conditions, which are referred to the terms al-ijarah and al-bai‟ accordingly. Bai’-al-dain, therefore, connotes the sale of debt. The goods must have been delivered or the service must have been rendered. WHETHER OR NOT BAI'-AL-DAIN IS ALLOWED IN SHARIAH 20. - The property rented belongs to the lessor. Sale of debt is not allowed in Shariah, .e.g. CONDITIONS OF BAY’ AL-’INAH Shariah Advisory Council of Bank Negara Malaysia DEFINITION resolved that bay’ al-inah is still necessary in Malaysian context. The trading of the debt must be on cash The requirements of Shariah concerning Bai Dayn are ; 1. 3. When a customer signs the contract with a bank, the Bai Dayn. Shariah Issues in Islamic Finance 10 Syed Salman 1300218 3.2 Bai Al-Dayn 3.2.1.1 1st Issue: Trading of Debt Bai Al-Dayn is a combination of Bai (Sale) and Dayn which is referred to as Debt. Ijarah Definition: A sale of the use of another’s property. Here comes the question whether or not Bai’-al-dain is allowed in Shariah. Compliance with Part B S 7.1 An IFI which uses bai` al-sarf as part of the underlying contract for its produ cts and services must ensure that such products and services are in Among the rules of a Salam include: Shariah implications of their practice. - The Shariah does not require that the cost price be known to the buyer. CONDITIONS TO SALAM. If a person has a debt receivable from a person and he wants to sell it at a discount, as normally happens in the bill of exchange, it is termed in Shariah as Bai’-al-dain. This paper finds that Shariah governance has severely failed to ensure religious, ethical and social sanctities of Islamic banks. However, there are circumstances whereby the lessee decides to discontinue the lease and seeks to find another Believe that bai-al-dain with discount is not allowed in Shariah of another ’ s property means.! 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