Albouua’a Altamweelya in the Islamic Banks

Financing Sales in Islamic Banks: An Evaluative View

Abstract: Financing sales (al-buyuʿ al-tamwīliyya) refer to contracts such as murabaha to the purchase orderer, tawarruq, salam, and istisnaʿ, which have been adopted by most Islamic banks and occupy the largest share of their investments. Additional contracts of a similar nature have also been proposed, such as istisjrar and bayʿ al-wafaʾ. This research examines the juristic foundations on which these applications are based, as well as their financial implications. A survey of Islamic banking practices clearly shows a shift away from mudaraba and musharaka toward financing sales, which have enabled banks to return to debt-based transactions, albeit through new contractual forms. The real driver of this trend is the desire to minimize banking risks; however, this pursuit carries significant costs—both in terms of Shariah compliance and financial efficiency.