Issues and Challenges in Offering Muḍārabah and Mushārakah Products in Islamic Finance

Asmadi Mohamed Naim, Mahyuddin Abu Bakar, Muḥammad Nasri Md. Hussein, Mohamad Noor Habibi Long

Abstract


ABSTRACT

The study aims to explore the views of scholars, bankers and entrepreneurs in promoting muḍārabah and mushārakah based contracts and to analyse their views to strengthening those practises. The study utilized qualitative research approach which consists of document analysis, interviews and observations in few phases. The study found few industrial concerns such as the needs on checks and balances in muḍārabah and mushārakah to avoid failure; the lacking of some good qualities and hence certain conditions must be imposed on entrepreneurs if they want to conduct business based on mushārakah or muḍārabah contracts. In addition, although all respondents agreed that the ḍamān concept is actually contrary to the concept of muḍārabah (muqtaḍā al-ʿaqd), they still stress the need for a mechanism to make entrepreneurs serious in conducting the business. However, the disappointing conclusion derived from the interviews is that the industry is quite reluctant to enhance their participation in muḍārabah- and mushārakah-based products.

Keywords: Muḍārabah; mushārakah products; Islamic finance; daman; burden of proof

ABSTRAK

Kajian ini bertujuan untuk meninjau pandangan ulama, bank-bank dan usahawan dalam mempromosikan kontrak-kontrak yang berasaskan kepada mudarabah dan musyarakah, dan menganalisis pandangan mereka bagi mengukuhkan amalan tersebut. Kajian ini menggunakan pendekatan penyelidikan kualitatif yang terdiri daripada analisis dokumen, temu bual dan pemerhatian dalam beberapa fasa. Kajian mendapati terdapat kebimbangan industri dan industri menekankan keperluan “sekat dan imbang” dalam mudarabah dan musyarakah untuk mengelakkan kegagalan; pengenaan beberapa syarat mesti dikenakan terhadap usahawan yang tidak mempunyai beberapa kualiti yang baik apabila mereka ingin menjalankan perniagaan berdasarkan kontrak musyarakah atau mudarabah. Di samping itu, walaupun semua responden bersetuju bahawa konsep daman bertentangan dengan konsep mudarabah (muqtada al-'aqd), mereka menekankan perlunya satu mekanisme untuk memastikan usahawan serius dan berhati-hati apabila menjalankan perniagaan. Walau bagaimanapun, rumusan yang mengecewakan diperolehi daripada temubual tersebut ialah industri agak keberatan untuk meningkatkan penyertaan mereka dalam produk berasaskan muḍārabah dan musyarakah.

Kata kunci: Muḍārabah; produk mushārakah; kewangan Islam; daman; beban bukti


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