The rise of islamic finance: 2-step murabaha / Ahmet Suayb Gundogdu.

Gundogdu, Ahmet Suayb (2018) The rise of islamic finance: 2-step murabaha / Ahmet Suayb Gundogdu. Asia-Pacific Management Accounting Journal (APMAJ), 13 (1). pp. 107-130. ISSN 2550-1631


The Islamic finance industry should refrain from replicating conventional tools by complicated scams which hold Arabic names. There is enough room for product development within the sphere of Islamic Shari’ah. Today, the Islamic finance industry is still heavily recourse to commodity Murabaha for liquidity management regardless of prohibition of the practice by Islamic Fiqh Academia. This mainly results from the lack of a proper liquidity management alternative for Islamic banks. Although Sukuk can serve the purpose to some extent, not only commodity Murabaha but also Sukuk is not expected to underpin the Islamic finance industry for the future. In this paper, 2-Step Murabaha is proposed as a strong alternative to the popular but questionable Islamic resource mobilization/liquidity management tools. It is suggested that the Islamic finance industry healthily rise on 2-Step Murabaha. The literature review part of the paper dwells on Islamic finance in the context of resource mobilization/liquidity management. The disbursement procedures in full detail are explained for the 2-Step Murabaha transaction in a case of a Gambian importer and an Egyptian exporter of yarn. Then, the structure is evaluated to suggest the 2-Step Murabaha to be embedded in stock exchanges in order to facilitate international trade while serving the Islamic finance industry for liquidity management.


Item Type: Article
CreatorsID Num. / Email
Gundogdu, Ahmet
Subjects: H Social Sciences > HJ Public Finance > Finance, Islamic
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Asia-Pacific Management Accounting Journal (APMAJ)
Journal: UiTM Journal > Asia-Pacific Management Accounting Journal (APMAJ)
ISSN: 2550-1631
Volume: 13
Number: 1
Page Range: pp. 107-130
Item ID: 29659
Uncontrolled Keywords: 2-Step Murabaha, Commodity Murabaha, Sukuk, Resource mobilization


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