ISSN 2394-5125
 

Research Article 


WAD POSITION AND ITS APPLICATIONS IN ISLAMIC FINANCIAL PRODUCTS FROM THE ISLAMIC JURISPRUDENCE PERSPECTIVE

Marina Abu Bakar, Shofian Ahmad.

Abstract
Wad or promise means an agreement made by someone to another to do something. Islam emphasizes this
issue so it is repeatedly mentioned in the Quran and Hadith. The original law for wad is obligatory. This means that the
promisor (a person who makes a promise) is obliged to fulfill his promise because as a Muslim, we are required to fulfill
our promise to others, whether the promise is done verbally or not. However, wad is different from contract if reviewed
from a legal perspective. Wad verbally or deeds, it does not bind someone to fulfill the promise, as long as there is no
lawful contract. In relation to the involvement of wad in Islamic capital market products, the role of wad is very
important according to the view of the current scholars. The concept of wa'd is expanding widely with the publication of
Islamic financial products that maintain the concept of wad in their business. Differences of opinion in determiningwad,
whether it is obligatory or must be fulfilled has been discussed by the Muslim scholars' in ensuring that this product
complies with Sharia. Thus, this study will discuss the concepts and principles of wad, as well as debates among
classical and contemporary Muslim scholars on their views on the law of wad and the concepts. The content analysis
method was selected as the design of this study. The data in this study is qualitative data collected through document
analysis. Meanwhile, data analysis was done by applying the content analysis approach. The findings showed that wad
has been applied in various Islamic financial transactions and muamalat such as murabahah and musawamah, foreign
currency transactions, ijarah, musharakah, mudarabah, sukuk, options and others. The majority of current scholars and
the Shariah Committee of Islamic financial institutions assume that wad is mulzim (binding) if it is understood and
agreed by the promisor and is linked to any reason. In fact, this view has been selected by local Islamic financial
institutions such as National Bank of Malaysia (BNM) and global such as Kuwait Finance House, Qatar Islamic Bank,
Dallah Al-Barakah and others.

Key words: Wad, Wad in Islamic Jurisprudence, Wad application


 
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Pubmed Style

Marina Abu Bakar, Shofian Ahmad. WAD POSITION AND ITS APPLICATIONS IN ISLAMIC FINANCIAL PRODUCTS FROM THE ISLAMIC JURISPRUDENCE PERSPECTIVE. JCR. 2020; 7(10): 1712-1218. doi:10.31838/jcr.07.10.311


Web Style

Marina Abu Bakar, Shofian Ahmad. WAD POSITION AND ITS APPLICATIONS IN ISLAMIC FINANCIAL PRODUCTS FROM THE ISLAMIC JURISPRUDENCE PERSPECTIVE. http://www.jcreview.com/?mno=104199 [Access: August 17, 2021]. doi:10.31838/jcr.07.10.311


AMA (American Medical Association) Style

Marina Abu Bakar, Shofian Ahmad. WAD POSITION AND ITS APPLICATIONS IN ISLAMIC FINANCIAL PRODUCTS FROM THE ISLAMIC JURISPRUDENCE PERSPECTIVE. JCR. 2020; 7(10): 1712-1218. doi:10.31838/jcr.07.10.311



Vancouver/ICMJE Style

Marina Abu Bakar, Shofian Ahmad. WAD POSITION AND ITS APPLICATIONS IN ISLAMIC FINANCIAL PRODUCTS FROM THE ISLAMIC JURISPRUDENCE PERSPECTIVE. JCR. (2020), [cited August 17, 2021]; 7(10): 1712-1218. doi:10.31838/jcr.07.10.311



Harvard Style

Marina Abu Bakar, Shofian Ahmad (2020) WAD POSITION AND ITS APPLICATIONS IN ISLAMIC FINANCIAL PRODUCTS FROM THE ISLAMIC JURISPRUDENCE PERSPECTIVE. JCR, 7 (10), 1712-1218. doi:10.31838/jcr.07.10.311



Turabian Style

Marina Abu Bakar, Shofian Ahmad. 2020. WAD POSITION AND ITS APPLICATIONS IN ISLAMIC FINANCIAL PRODUCTS FROM THE ISLAMIC JURISPRUDENCE PERSPECTIVE. Journal of Critical Reviews, 7 (10), 1712-1218. doi:10.31838/jcr.07.10.311



Chicago Style

Marina Abu Bakar, Shofian Ahmad. "WAD POSITION AND ITS APPLICATIONS IN ISLAMIC FINANCIAL PRODUCTS FROM THE ISLAMIC JURISPRUDENCE PERSPECTIVE." Journal of Critical Reviews 7 (2020), 1712-1218. doi:10.31838/jcr.07.10.311



MLA (The Modern Language Association) Style

Marina Abu Bakar, Shofian Ahmad. "WAD POSITION AND ITS APPLICATIONS IN ISLAMIC FINANCIAL PRODUCTS FROM THE ISLAMIC JURISPRUDENCE PERSPECTIVE." Journal of Critical Reviews 7.10 (2020), 1712-1218. Print. doi:10.31838/jcr.07.10.311



APA (American Psychological Association) Style

Marina Abu Bakar, Shofian Ahmad (2020) WAD POSITION AND ITS APPLICATIONS IN ISLAMIC FINANCIAL PRODUCTS FROM THE ISLAMIC JURISPRUDENCE PERSPECTIVE. Journal of Critical Reviews, 7 (10), 1712-1218. doi:10.31838/jcr.07.10.311