Abstract
This paper examines the sale contract commonly known as einah sale (buy-back sale). It refers to the purchase of something for the mere purpose of reselling it immediately to its original seller. The objective of this sale is to obtain cash in an apparently legal way and not the real acquisition of commodity. This sale was ruled as valid by some jurists and as invalid by others for its relevance to riba. The paper discusses the different juristic opinions on the validity of einah and concludes with solid evidences that ruling einah as valid by some schools of Islamic law cannot be taken to suggest its permissibility. In the light of this conclusion, the paper examines einah modern applications in Islamic banks and financial institutions and discusses the various justifications provided to support their legitimacy.
| Translated title of the contribution | Examining Bay' al-einah and its new applications in the Islamic financial institutions |
|---|---|
| Original language | Arabic (Saudi Arabia) |
| Journal | Journal of Al-Tamaddun |
| Volume | 4 |
| Issue number | 1 |
| Publication status | Published - 2008 |
| Externally published | Yes |