An Analysis of al-Bay’ Bithaman Ajil Contract in Islamic Financing Products: A Case Study in Brunei

Authors

  • MOHD RIZAL MUWAZIR Senior Lecturer, Department of Shariah and Management, Academy of Islamic Studies, University of Malaya, Malaysia Author
  • HAJAH SABARIAH HAJI HASSAN Head of Shariah, Perbadanan Tabung Amanah Islam Brunei, Bandar Seri Begawan, Brunei Darussalam Author
  • NORADILAH ABDUL HADI Senior Lecturer, Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Malaysia Author
  • SRI WIDYASTUTI Senior Lecturer, Department of Management, Faculty of Economics and Business, Universitas Pancasila, Indonesia Author
  • MOHAMMAD SAID Professor, Faculty of Economics and Business, Universitas Islam Negeri Syarif Hidayatullah, Jakarta, Indonesia Author

DOI:

https://doi.org/10.61841/sr6wrx03

Keywords:

Brunei, al-bay’ bithaman ajil, Islamic Banking,, Islamic financial contract

Abstract

The purpose of this study is to analyse factors influencing the application of the al-bay’ bithaman ajil (BBA) contract which is still dominating financing instruments in Islamic financial institution in Brunei Darussalam (Brunei). This study employs case study research design which entirely concentrates on qualitative analysis from interview technique as a primary data collection method. There were 10 respondents selected in this study working in Tabung Amanah Islam Brunei (TAIB). The results suggest that respondents were very optimistic and hold positive ideas towards the implementation of other forms of Shariah contracts in Islamic financial products, which have now been introduced in other countries. The article provides valuable contribution to the development of Islamic finance in Brunei. Following the controversy surrounding the use of BBA contract in other countries, the result of this study will offer Islamic financial institutions and regulators in Brunei positive development in the effort to diversify Islamic financing products and services which are universally accepted according to current demands.

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Published

31.10.2020

Issue

Vol. 24 No. 8 (2020): 24 (8) 2020

Section

Articles

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How to Cite

MUWAZIR, M. R., HASSAN, H. S. H., HADI, N. A., SRI WIDYASTUTI, & SAID, M. (2020). An Analysis of al-Bay’ Bithaman Ajil Contract in Islamic Financing Products: A Case Study in Brunei. International Journal of Psychosocial Rehabilitation, 24(8), 13874-13890. https://doi.org/10.61841/sr6wrx03