Shari'ah Compliant Liquid Commodity Market: {An Expositional Study on Bursa Suq al-Sil'ah in Malaysia}

Abdul Azeez  Maruf Olayemi; Aznan Hasan; Uzaimah  Ibrahim; Ahmad Hidayah  Buang; Riaz  Ansary

doi:10.24191/jeeir.v3i2.6291

Authors

Abdul Azeez Maruf Olayemi Department of Shariah & Law, API via PPPI, University of Malaya, 50603, Kuala Lumpur, Malaysia.
Aznan Hasan Institute of Islamic Banking and Finance (IIBF), (IIUM), 53100, Gombak, Selangor, Malaysia.
Uzaimah Ibrahim Ahmad Ibrahim Kulliyah of Laws, , (IIUM), 53100, Gombak, Selangor, Malaysia.
Ahmad Hidayah Buang Department of Shariah & Law, API, University of Malaya, 50603, Kuala Lumpur, Malaysia
Riaz Ansary International Shari'ah Research Academy for Islamic Finance, (ISRA), Malaysia.

DOI:

https://doi.org/10.24191/jeeir.v3i2.6291

Keywords:

Liquid Commodity Market, Bursa Suq al-Sil'ah, Emerging Islamic Financial Institutions

Abstract

One of the major challenges before the emerging Islamic financial Institutions is the dearth of Shariah compliant money market platform for the management of their liquidity. However, a viable panacea to the problem has been developed in Malaysia. One of the measures that were taken for the solving of the problem in the country was the creation of Bursa Suq al-Sil'ah which is a Shariah compliant liquidity commodity market. The market is tremendously efficient and it can form a model for other countries. This paper submits that the creation of a similar commodity market in the emerging jurisdictions will mitigate the problem of Shariah compliant liquidity management to a great extent. The study adopts Shariah method in its analysis in view of buttressing the mechanism of Bursa Suq al-Sil'ah as a model for the emerging jurisdiction.

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