Musharakah Tijarah Cross - Border Financing : Concept, Structure and Salient Features

Sharullizuannizam Salehuddin; Buerhan Saiti

doi:10.12816/0036627

Article Details

Musharakah Tijarah Cross - Border Financing : Concept, Structure and Salient Features

Authors:

Sharullizuannizam Salehuddin | Buerhan Saiti

Publisher:

Center for Political, Economic and Social Research

Main Topics:

Islam, Bábism & Bahá"í Faith

Journal:

International Journal of Islamic Economics and Finance Studies 2016 Vol.2 Issue 3, pp.1-25

Document Type:

Article

Publication Date:

11/2016

Document Language:

English

Document ID (Org No.):

101282

Frequency:

Tri-Annual

eISSN:

21498407

pISSN:

21498393

DOI:

10.12816/0036627

Descriptors:

Keywords:

Abstract:

 Musharakah Tijarah Cross-Border Financing (“Product”) is the product to enable the Bank to undertake project and contract cross-border financing activities or other identified business ventures on “pure” Joint Venture basis, using the underlying Islamic financing contract of Musharakah. Musharakah concept has a low market share of less than 2.5% in the overall existing Islamic financing products in Malaysia. This product encourages mobilization of idle capital / cash entities and thus provides a basis for economic cooperation between these organizations in the society. The product also is expected to inject greater prosper to the Bank’s overall performance and ultimately able to assist small time landowners in a big way through business risk sharing. Musharakah provides an alternative investment, which will cater for Islamic investors and partners, especially from GCC, who may have been reluctant to invest in conventional or current debt-based financing scheme. With Musharakah concept, the most preferred and globally accepted Islamic financing, this can attract these investors to participate on similar risk-sharing arrangements through the creation of Specific Investment Account (SIA) or Islamic Syndication to back financing made into the Joint Venture.

Article Details

Musharakah Tijarah Cross - Border Financing : Concept, Structure and Salient Features

Authors:

Sharullizuannizam Salehuddin | Buerhan Saiti

Publisher:

Center for Political, Economic and Social Research

Main Topics:

Islam, Bábism & Bahá"í Faith

Journal:

International Journal of Islamic Economics and Finance Studies 2016 Vol.2 Issue 3, pp.1-25

Document Type:

Article

Publication Date:

11/2016

Document Language:

English

Document ID (Org No.):

101282

Frequency:

Tri-Annual

eISSN:

21498407

pISSN:

21498393

DOI:

10.12816/0036627

Descriptors:

FINANCING

ISLAMIC BANKING

LOANS

ECONOMIC POLICY

ECONOMIC DEVELOPMENT

MALAYSIA

Islamic Finance

Musharakah

Qard

Wakalah

Cross - Border Financing

Project and Contract Financing

Joint Venture

Issues

Article Details

Authors: Sharullizuannizam Salehuddin | Buerhan Saiti

Publisher: Center for Political, Economic and Social Research

Main Topics: Islam, Bábism & Bahá"í Faith

Journal: International Journal of Islamic Economics and Finance Studies 2016 Vol.2 Issue 3, pp.1-25

Document Type: Article

Publication Date: 11/2016

Document Language: English

Document ID (Org No.): 101282

Frequency: Tri-Annual

eISSN: 21498407

pISSN: 21498393

DOI: 10.12816/0036627

Descriptors:

Issues

Authors:

Sharullizuannizam Salehuddin | Buerhan Saiti

Publisher:

Center for Political, Economic and Social Research

Main Topics:

Islam, Bábism & Bahá"í Faith

Journal:

International Journal of Islamic Economics and Finance Studies 2016 Vol.2 Issue 3, pp.1-25

Document Type:

Article

Publication Date:

11/2016

Document Language:

English

Document ID (Org No.):

101282

Frequency:

Tri-Annual

eISSN:

21498407

pISSN:

21498393

DOI:

10.12816/0036627