The Indication of Fai' (Booty) Verse to the Legal Principle of Negation of Wealth Circulation
Seyyed Mahdi Mo'allemi*
The verse 24 of chapter 59 (Al-Hashr- the Banishment), known as Fai' (booty) verse, is one of the strongest Quranic evidence for economic balance. Using a descriptive- analytical method, the present paper investigates the rate of this verse's indication to the negation of wealth circulation. The hypothesis is that this verse provides the ground for extracting a general principle whose scope includes all economic activities. The research findings indicate that, with regard to the context of the verse and literary techniques used in it, the content of this verse can be generalized by annulling the particularity and examining the criterion to include all wealth of society. Finally, a general principle is proved, which indicates the negation of circulation of society's wealth and properties among the rich. The extraction of this principle has many applications in economic policy-makings and its contents will determine the fate of such cases as domination on natural resources, on the process of fixing the price of goods and services in the market, on upstream industries and monetary trends, and on the relationships in labor market, which have provided the ground for a certain group to control the main channels of society's economy.
Key words: balance, Islamic economy, the verse of Fai', circulation of wealth.
GEL: D63, P4
The legitimacy of Income-Generating of "Risk-Taking" in Financial Markets in Imamiyyah Jurisprudence
Mohammad Kazim Bektash*
One of the important issues in Islamic finance and banking is elaborating on the role of risk-taking in income generating. Using Martyr Sadr's exploratory method, the present paper addresses the question: can risk-taking lead to income entitlement? In this study, two hypotheses- "the legitimacy of income-generating of risk-taking" and "the direct relationship between the rate of risk-taking and income"- are discussed from the view of Imamiyyah jurisprudence. The research findings indicate that the legitimacy of income- generating of risk-taking can be extracted from analyzing such superstructures as the principle of tax being subject to security, the principle of profit being subject to loss, the principle of non-entitlement of unsecured profit, the principle of mutual implication between profit and loss and the principle of usury prohibition. Furthermore, these superstructures represent a positive relationship between risk variations and profit variations in Imamiyyah Jurisprudence.
Key words: risk, jeopardize, security, income-generating, financial markets, Islamic banking
GEL: D81 G32:
A Study on the Commission of Interest-free Loan and Method of Its Calculation in Islamic Banking
Religious leaders place great emphasis on meeting living needs of poor classes of society by interest-free loan. Accordingly, interest-free loan is discussed as one the ways of supplying and allocating resources in interest-free banking. A relevant issue in allocating interest-free resources is the commission of such loans. The present paper studies the legitimacy of commission of interest-free loan and methods of its calculation. The hypothesis of the paper is that fixing the commission as a percentage of nominal sums of the loan are incompatible with the real meaning of commission. The research findings indicate that there are signs which show that calculation of commission of interest-free loan in Iran's bank is formal. Citing Shiite jurists' view on commission and analyzing the ways proposed to receive it, this paper proposes three ways to finance the facilities of interest-free loans: financing interest-free loans using Muslim common treasury; allocating a part of interest-free loan resources to investment; and calculating the real commission. It is expected that researchers of Islamic banking eliminate any usury doubts cast on this Islamic financial contract by devising other ways to finance the expenses of interest-free loan.
Key words: interest-free loan, qard al hasana expenses of interest-free loan, commission, way of calculating commission, Islamic banking.
GEL: E5, G24, E4
A study on the Status and Effect of Asymmetry of Information in Administering Endowments
Mohammad Mahdi 'Askari*, Mustafa Sheikhani**
One of the main challenges for exploiting endowments is their administration, such that some scholars attribute all problems of endowment to their administration. They believe that reforming endowment administration and their caretakers' good conduct will lead to the elimination of many corruptions related to endowments. Since the motives of caretaker as the manager of endowment are not necessarily along with donor's aim, he may act against donor's will. This is also possible in renting endowment as the most common way of exploiting endowments. The science of economy of information as a branch of conventional economics investigates the problems caused by asymmetric information in economic exchanges and provides some suggestions to solve them. The findings of this research which is conducted through a library survey sheds light on symmetry of information in endowment and indicate that modus operands proposed by economy of information can be used to eliminate problems caused by asymmetry of information in endowment.
Key words: Asymmetric Information, Adverse Selection, Moral Hazard, Administration of Endowments, Caretaker of Endowment.
GEL: D82, P4, D83
The Application of Islamic Project-based Means (sukuk- Bonds) in Financing Investments in Oil and Gas Sector
Seyyed 'Abbas Moosaviyan*, Jawad Haddadi**
The intensification of international financial constraints on Iran in recent years and insufficiency of internal banking resources are considered among the most important constraints of financing in oil industry. These constraints has led to delay in the extraction of oil and gas from joint fields and loss of national resources due to maximal use of these resources by partner countries. Using a qualitative approach and an interpretive method based on the views of experts and focusing on a case study, the present paper seeks to find Islamic project-based means of financing appropriate to upstream sector of oil industry. According to the hypothesis of the paper, this finance can be provided by designing Islamic project-based means in which its two conditions (repayment of resources by using the revenues of the project and its being Islamic, i.e. conforming to legal principles) are observed. The research findings indicate that National Iranian Oil Company can use such means as rent Sukuk (Islamic bonds) Istisna' (construction order) and forward purchase to finance upstream sector of oil industry. Furthermore, public contractors can use rent Sukuk and Istisna' in EPCE (engineering, procurement and construction contract) approaches to finance their projects.
Key words: upstream sector of oil, project-based financing, Islamic financial means, Sukuk, EPCF.
GEL: G24, E58, E4
Balance or Non-circulation of Wealth in the Rich's Hand
Seyyed Mohammad Kazim Rajaii*
One of the main issues related to justice is the great income gap among the members of society. The present paper takes a probing look at the question: can an individual accumulate wealth unlimitedly in an Islamic society while others have the least facilities? The hypothesis is that it is impossible for one percent of society members to own %99 of facilities in an Islamic society. An analytical method is used in this paper whose findings indicate that it is impossible for great income and wealth gap to be realized in an Islamic society if Islamic injunctions are observed. Although personal legal decrees do not limit earning income at micro-level, income accumulation and the realization of great income gap are impossible due to constraints related to the legitimate way of gaining wealth, having financial rights, and joint responsibility of the rich and Islamic state. These financial rights do not only include financial obligation (fifth and alms) and enough obligatory maintenance of relatives. Rather, the rich and state are charged with the duty of meeting the poor's needs and help them to continue their lives.
Key words: balance, circulation of wealth at rich's hand, poverty and richness, just distribution of income, economic justice.
GEL: D63, P4.
The Possibility of Exchanging Usufract Bonds as Rent Contract
Hassan Sobhani*, Majid Habibiyan Naqibi**
Usufruct Bonds are a new means for Islamic capital market, which can be used to transfer interests and services, specially public services and facilities. One of the problems of these Bonds is the legal problems related to the possibility of their exchange. The present paper studies the possibility of rectification of these Bonds using rent contract in their regulation in order to rectify these Bonds. The hypothesis is that Usufruc can be purchased in primary and secondary markets through different methods as rent contract. A legal and analytical method is used in this paper. The research findings indicate that using rent contract can lead to legal rectification of transferring Usufract Bonds. It proposes some suggestions to rectify the exchange of Usufract Bonds including partial rent, transferring Bonds in secondary market except through rent contract, parallel rent, transferring by proxy, right of key- money, settlement of rent, sale by verbal agreement, Key-money, and rent and sale.
Key words: Usufract Bonds, Rent Contract, Islamic Bonds.
GEL: E4G12, G13