ISSN: 2222-6990
Open access
The issue of wadi’ah and ujrah has long been discussed by scholars in the past by dividing them into two different types of contracts, namely mu’awadat and tabarru’at. They agreed that these two contracts have different characteristics, where mu’awadat is to generate profit while tabarru’at is a purely charitable contract. Thus, this article aimed to review why this combination is a non-shari’ah compliant and therefore, a replacement with another shari’ah structure becomes an essential. This study uses qualitative approach where interviews and content analysis are conducted and several books of fiqh from the four schools of thought are examined. The frequency of words by using some identified terms such as wadi’ah, rahn, ujrah, mu’awadat and tabarru’at are determined and coded to form the tendency of fiqh views whether it support the objective or against it. The study shows that modern scholars have a tendency of shared similar views and they found these two covenants (wadi?ah and ujrah) have been mixed in the same product namely ar-rahnu and this has raised the issue of shariah. They argued the safekeeping of collateral is applied based on the principle of wadi?ah where they impose a fee for the service that is rendered. This kind of fee is charged under the principle of ujrah. However, this connection gives rise to the indirect implications of bay? wa salaf and qard jarra manfa?ah, that are prohibited in shari?ah. Therefore, the tawarruq is so much better option to replace the wadiah-ujrah principles.
Al-Bukhari. (n.d). Al-Jami? Sahih: Vol 1: #220
Al-Buhuti, M. Y. I. (1947). Kashaf al-Qina? ?an Matn al-Iqna? . Cairo: Matba? Ansar al-Sunnah al-Muhammadiyyah.
Al-Bukhari, M. I. I. (1422H). Al-Jami? Sahih. 1. Vol. 1. Dar Tawq al-Najah.
Al-Dasuqi, A. M. (n.d). Hashiah ?ala al-Sharh al-Kabir. Bayrut: Dar al-Fikr.
Al-Ghazzali, A. H. M. (1413H). al-Mustasfa. Bayrut: Dar al-Kutub al-?llmiyyah.
Al-Hadrami, ?A. A. S. (1318H). Idhah al-Qawa?id al-Fiqhiyyah. Makkah: Madrasah al-Sultiyah.
Al-Nayysaburi, M. ?A. A. (1990). Al-Mustadrak ?Ala al-Sahihain (Mustadrak Hakim). Bayrut,: Dar al-Kutub al-?Ilmiyyah.
Al-Humaidi, M. F. (2002). al-Jam? Bayn al-Sahihayn al-Bukhariyy wa Muslim. Vol. 3. Bayrut: Dar Ibn Hazm.
Al-Kasani, ?A. A. B. (1971). Badai? al-Sanai?. Cairo: Matba?ah al-Imam.
Al-Nasa'i, (n.d.). Sunan al-Nasa'i: v.7 #4629
Al-Rafi?i, A. Q. ?A. (1997). Fath al-?Aziz Bi Sharh al-Wajiz (Sharh al-Kabir). Bayrut: Dar al-Kutub al-?Ilmiyyah.
Al-Sajastani, (n.d). Sunnan Abi Dawud: vol.3 #3506
Al-Sarakhsi, S. D. A. (2000). al-Mabsut. Bayrut: Dar al-Fikr.
Al-Sharbini, M. K. (1997). Mughni al-Muhtaj ?Ala Matn Minhaj al-Talibin. Vol. 2. Bayrut: Dar al-Fikr.
Al-Tawfi, N. D. (n.d). “Risalah fi al-Masalih al-Mursalah." In Maj?mu? Rasa?il fi usul al-fiqh. Bayrut, 1324, 37-70.
AOOIFI, Accounting and Auditing Organization for Islamic financial Institutions. (2010). "Guarantees." In AOOIFI Sharia Standard.
Dien, M. Y. I. (2012). Wadi?a. Bearman, Peri J.; Bianquis, Thierry; Bosworth, Clifford E.
Fairooz, M. F. A. (2012). Critical Appraisal of the Rahn-Based Islamic Microcredit Facility. Research Paper, the International Shari'ah Research Academy for Islamic Finance (ISRA) No. 45/2012.
Hanbal, A. (n.d). Musnad al-Imam Ahmad bin Hanbal: Vol. 5: #22345
Ibn ?Abidin, M. A. ?U. (2000). Hasyiah Rad al-Mukhtar Li Ibn ‘Abidin ?Ala al-Dur al-Mukhtar li al-Haskafi. Vol. 6. Bayrut: Dar al-Fikr.
Ibn Hammam, M. A. W. (681H) Sharh Fath al-Qadir. Bayrut: Dar al-Fikr, d.681h
Ibn Hazm, A. M. A. (995-1063). Al-Muhalla. Dar al-Fikr.
Ibn Nujaym, S. Z. A. (1980). Al-Ashbah wa al-Na?a'ir. Lubnan: Dar al-Kutub al-?Ilmiyyah.
Ibn Nujaym, S. Z. A. (926-970H). Al-Bahr al-Ra’iq Sharh Kanz al-Daqa'iq. Bayrut: Dar-Ma?rifah.
Ibn Qudamah, ?A. A. A.(1405H). Al-Mughniyy. Bayrut: Dar al-Fikr.
Kerr, M. H. (1966). Islamic Reform: The Political and Legal Theories of Muhammad ?Abduh and Rashid Rida . Berkeley: University of California.
Khadduri, M. (2012). Maslaha. Edited by Th. Bianquis, C.E. Bosworth, E. van Donzel, W.P.
Kuwait, M. W. I. (1404-1427H). Al-Mawsu?ah al-Fiqhiyyah al-Kuwaitiyyah. Egypt: Matabi? Dar al-Safwah.
Laldin, M. A. (2014). Objectives of Islamic banking: a theoretical discussion. In Risk and Regulation of Islamic Banking (pp. 43-54). Edward Elgar Publishing.
Rida, M. R. (1923). Al-Khilafah Aw Al-Imamah Al-?U?ma:Mabahis Shar?iyyah Siyasah Ijtima?iyyah Islahiyyah. Cairo.
Wilson, C. (2014). Semi-structured interviews. Interview techniques for UX practitioners, 1, 23-41.
In-Text Citation: (Sharif et al., 2022)
To Cite this Article: Sharif, D., Khir, M. F. A., & Ismail, F. A. (2022). Wadiah and Ujrah Issue in Al-Rahnu Product: A Turning Point to Tawarruq Structure. International Journal of Academic Research in Business and Social Sciences, 12(8), 913 – 926.
Copyright: © 2022 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode