Alternative Commercial and Operational Solutions in Islamic Banking: The Contribution of Mufti Taqi Usmani

Abstract

Shari’a compliance remains one of the main features in all the products and services offered by Islamic banking institutions. Muftī Taqi Usmani (b. 1943) is a world-renowned figure in Islamic banking due to his crucial position as Chairman of the Shari’ah Board (Bahrain). He has contributed to Islamic banking through his advanced writings and addressing vital issues of global interest in the industry.

Using qualitative methodology, this study examines the alternative solutions that were suggested by Muftī Taqi to various financing solutions, which are deemed to be not acceptable as per the classical view of Islamic jurists. His efforts contribute immensely to providing solutions to the financing institutions. The paper divided the suggested solutions into five categories: formation of the contract, contracting parties, subject of the sale, price, and risk management. There were more than 15 solutions suggested by Muftī Taqi, and two-third of them were workable, and the rest were challenging against the original conventional solutions. Future studies could expand their scope into other areas of contributions as well.