Issues and Challenges in Offering Mudarabah and Musharakah Products in Islamic Finance
Isu dan Cabaran Penawaran Produk Mudarabah dan Musyarakah dalam Kewangan Islam

Islamic Business School (IBS)
Universiti Utara Malaysia
06010 UUM Sintok, Kedah, Malaysia.

asmadi@uum.edu.my

Islamic Business School (IBS)
Universiti Utara Malaysia
06010 UUM Sintok, Kedah, MALAYSIA.

mahyuddin@uum.edu.my

Islamic Business School (IBS)
Universiti Utara Malaysia
06010 UUM Sintok, Kedah, MALAYSIA.

mnasri@uum.edu.my

Long Islamic Business School (IBS)
Universiti Utara Malaysia
06010 UUM Sintok, Kedah, MALAYSIA.

mnhabibi@uum.edu.my

Abstract

The study aims to explore the views of scholars, bankers and entrepreneurs in promoting mudārabah 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 mudarabah 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 musharakah or mudarabah contracts. In addition, although all respondents agreed that the daman concept is actually contrary to the concept of mudarabah (muqtada al-‘aqd), 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 mudarabah- and mushārakah-based products.

Keywords

burden of proof; daman; Islamic finance; Mudarabah; mushārakah products

Citation

Mohamed Naim, A., Abu Bakar, M., Md. Hussein, M. N., & Habibi, M. N. (2016). Issues and Challenges in Offering Mudarabah and Musharakah Products in Islamic Finance. Jurnal Pengurusan, 46, 137–147.

@article{mohamednaim2016issues,
  title={Issues and Challenges in Offering Mudarabah and Musharakah Products in Islamic Finance},
  author={Mohamed Naim, Asmadi and Abu Bakar, Mahyuddin and Md. Hussein, Muhammad Nasri and Habibi, Mohamad Noor},
  journal={Jurnal Pengurusan},
 

volume={46},
  number={},
  pages={137—147},
  year={2016},
  doi={},
  publisher={Penerbit UKM},
}

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46 (2016) 137 – 147

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