Introduction
In Islamic banking, Tawarruq is the most well-known product in the field of finance sector. The ideas of Tawarruq origin from the perspectives of jurists who want to assist the development of Islamic economic, banking and finance. They are replacing the old concept which might lead into the serious problem in the economic to the society. Therefore, Islam has always produced an alternative product which allows individuals to raise money quickly without prohibited the theory of interest in Islam. However, the idea of Tawarruq that comes from the view of classical scholar has been contaminated by the current banking and finance sector. They stated that some of the people try to get advantages from the classical concept instead following the original structure which mentioned by the classical jurists.
After the concept of tawarruq used widely and accept by the Middle East Country (GCC), Bank Negara Malaysia (BNM) has revised the concept of tawarruq which introducing the new concept of using tawarruq. The concept that introduced by Bank Negara Malaysia (BNM) named “Bursa Suq Al-Sila”. This concept organizes between the counterparty in order to manage the…show more content… Tawarruq basically is the contract of sale, whereby a buyer buys an asset from a seller on deferred payment basis and subsequently sells the assets to the third party for cash with a price lesser than the deferred payment. The third party who purchases a commodity from a second buyer must be on a spot payment which means that the payment is made on the spot. The buyer purchases the assets on deferred term and the buyers have not intention to utilize the benefit from the purchased assets but the buyers sells the assets to third party on order to facilitate him to attain liquidity (waraqh