The practice of commodity Murabahah particularly via London Metal Exchange (LME) is not uncommon to most Islamic financial institutions worldwide.  Although this practice is originated from the classical contract of Tawarruq, its current practice has been tailored made to suit relevant modern financial framework such as risk management, ‘know your customer policy’ and cost efficiency consideration.  Its use has been very significant in Islamic money market and treasury products, Islamic credit cards, Islamic derivatives and risk management tools and Islamic personal financing.  However, the practice of commodity Murabahah has been the major issue of the debate in Islamic financial industry following the pronouncement by the International Islamic Academy of Fiqh in its meeting in Sharjah, UAE in May 2009. Subsequent to that pronouncement, there have been some attempts to offer feasible alternatives to the current practice of commodity Murabahah.  Nevertheless, to what extent would these alternatives be widely accepted by the industry is subject to the robustness of these  alternatives  for the future commodity Murabahah.

 

Date: Wednesday, 9 December,2009

Time: 6.30 - 8.00 pm

Venue: DIFC Centre of Excellence, Auditorium, Level 2, Building 2, DIFC Gate Village

 

Kindly RSVP your attendance to: Khairul Karim - Guest Services Executive

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Tel: (04) 401 9324