Beneficial Ownership in Islamic Banking From The Shari'ah Perspective

Beneficial Ownership in Islamic Banking From The Shari'ah Perspective

Author: Nik Abdul Rahim Nik Abdul Ghani
Publisher: UKM Press
ISBN: 9789672515739
Weight: 
Pages: 166
Year: 2021
Price: RM30

The legal documentation of Islamic banking products, such as financing and sukuk, uses beneficial ownership widely, especially in countries where common law is dominant. Some figh scholars recognise its application, while others reject it, leading to a vital question about its Shari'ah interpretation and permissibility. Therefore, this book examines the meaning of beneficial ownership based on the Common Law system and its recognition from the Shari'ah viewpoint. It begins with identifying the meaning of milkiyyah (ownership), its characteristics according to the Islamic law, and the analysis of beneficial ownership in the current Islamic finance practice regarding its compliance to the Shari'ah principles. In addition, the book sheds light on the ownership transfer process within the Shari'ah framework. The highlight of this book is the elaboration on the Shari'ah parameters consisting of seven important guidelines in splitting ownership into legal and beneficial ownership while structuring Islamic financial products.