The application of shari’ah contract in islamic financing guarantee schemes of Credit Guarantee Corporation (CGC) / Husniyati Ali, Badrul Hisham Kamaruddin and Ismail Ahmad.

Ali, Husniyati and Kamaruddin, Badrul Hisham and Ahmad, Ismail (2019) The application of shari’ah contract in islamic financing guarantee schemes of Credit Guarantee Corporation (CGC) / Husniyati Ali, Badrul Hisham Kamaruddin and Ismail Ahmad. Advances in Business Research International Journal (ABRIJ), 5 (2). pp. 1-8. ISSN 2462-1838

Abstract

Islamic financing is regarded as one of the financing alternatives that enterprises may utilize to fund their business. This financing type is characterized as free from riba and is based on illiquid assets which create real assets and inventories. The aim of this conceptual paper is to highlight the Shari’ah contract of al Kafalah that is used by Credit Guarantee Corporation (CGC) to attach to its Islamic financing guarantee scheme offered to business enterprises. Kafalah refers to an obligation to pay in the event the principal debtor is unable to honour his obligation. Through this Shari’ah contract, the CGC has indeed paved a new way of financing enterprises which are keen on having halal financing to fund their business activities. Most importantly, this addition of halal financing has accelerated the growth of Islamic finance in Malaysia.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Ali, Husniyati
husni833@uitm.edu.my
Kamaruddin, Badrul Hisham
bsham_uitm@yahoo.com
Ahmad, Ismail
drismailphd990@gmail.com
Subjects: H Social Sciences > HG Finance > Banking
H Social Sciences > HG Finance > Credit. Debt. Loans
H Social Sciences > HG Finance > Credit. Debt. Loans > Malaysia
H Social Sciences > HG Finance > Credit. Debt. Loans > Commercial credit. Commercial loans. Credit management
Divisions: Universiti Teknologi MARA, Shah Alam > Faculty of Business and Management
Journal or Publication Title: Advances in Business Research International Journal (ABRIJ)
UiTM Journal Collections: UiTM Journal > Advances in Business Research International Journal (ABRIJ)
ISSN: 2462-1838
Volume: 5
Number: 2
Page Range: pp. 1-8
Keywords: Al Kafalah, Islamic financing guarantee scheme, Credit Guarantee Corporation
Date: September 2019
URI: https://ir.uitm.edu.my/id/eprint/29631
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