The Use of the Majalla in Islamic Finance in Malaysia: A Preliminary Study
Farid Sufian Shuaib, Prof. Dr. & Tajul Aris Ahmad Bustami, Asst. Prof. Dr.
Faculty of Laws,
International Islamic University Malaysia
The Majalla or the Majalla al-Ahkam al-Adliyyah as codification of part of Islamic law covers wide ranging subjects including general principles of Islamic jurisprudence and legal rules on transactions. These principles are relevant to the practice of Islamic finance. It is an interesting question to consider the impact of this Code - that entered into force in 1877 in the Ottoman – over the present day practice of Islamic law in another part of the world, namely Malaysia. This research examines the use of the Majalla in the practice…show more content… Apart from the existence of research institutes under the universities such as the Institute of Islamic Banking and Finance (IIBF) in the International Islamic University Malaysia, the Central Bank of Malaysia establishes the International Shariah Research Academy for Islamic Finance (ISRA) and to accelerate the growth of Islamic finance in Malaysia. In celebrating the significance of the Majalla, it is pertinent to consider the use of the Majalla in Islamic finance in Malaysia. One has to consider that the Majalla was put into force in Ottoman Turkey in 1877 and one has to consider the history and the Malaysian legal system in understanding the connection between the Majalla and…show more content… From the published resolutions, the Council did refer to the Majalla. In its resolution dated 13th April 2007 regarding project financing based on Istisna’, the Shariah Advisory Council resolved that the proposed structure and mechanism is permissible. In supporting the resolution, the Council refers to articles of the Majalla that say istisna’ is permissible provided that the subject matter have been mutually agreed upon. While interviewing members (including former members) of the Shariah Advisory Council, a question was asked does the single reference of the Majalla in the published resolutions of the Council means that only once that the Council refers to the Majalla. The members explained that it is not so because the Majalla, although not the main reference, is used as a supplementary reference in their