From Islamic point of view, is leasing allowable according to Shariat?
(Kiran Asma, Malaysia): DSHS: Leasing is permissible mode of financing for Islamic banks as per Muslim scholars. The condition however, is that the transaction and agreement must be structured in a way so as not to involve any element of riba and to ensure that Shariah provisions are not violated at any stage. It must however, be noted that this mode of financing is based on second line fixed return technique and Islamic banks are presently following the bench-marks of interest-based system in this mode also. It does not therefore; contribute towards the achievement of socio-economic objective of the Islamic economic system. Question: Which type of Islamic Rules Islamic Banks are following, either Fiqa or Quran and Hadith? (Syed, Wudam, OMAN). DSHS: In Islam, the Holy Quran and Sunnah are the original source of Islamic jurisprudence. Fiqa derives authority from Quran and Hadith and has to remain within the framework of Quran and Sunnah at all times with all its manifestations. When we
