Shari’ah Perspective Ratio of Islamic Financing: Base Profit Rate vs Rule 78
Nurfadhlina Abdul Halim1, Nadhirah Gazali2, Wan Muhamad Amir W Ahmad3, Mustafa Mamat4
1Nurfadhlina Abdul Halim, Faculty Science and Technology, Universiti Sains Islam Malaysia, Bandar Baru Nilai, Nilai, Negeri Sembilan, Malaysia.
2Nadhirah Gazali, School of Informatics and Applied Mathematics, Universiti Malaysia Terengganu, Kuala Terengganu, Terengganu, Malaysia.
3Wan Muhamad Amir W Ahmad, School of Dental Science, Universiti Sains Malaysia, Gelugor, Penang, Malaysia.
4Mustafa Mamat, Faculty of Informatics and Computing, Universiti Sultan Zainal Abidin, Besut Campus, Kuala Terengganu, Terengganu, Malaysia.
Manuscript received on 18 July 2019 | Revised Manuscript received on 03 August 2019 | Manuscript Published on 10 August 2019 | PP: 392-394 | Volume-8 Issue-2S3 July 2019 | Retrieval Number: B10680782S319/2019©BEIESP | DOI: 10.35940/ijrte.B1068.0782S319
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: In Malaysia, Islamic financing contract has various of concepts for example Bai Bithaman Ajil (BBA), AlIjarah Thumma Al-Bai (AITAB) and Musharakah. One of the model is used in calculating financing Islamic concept is called Rule 78. This model is widely used by Islamic finance/banking in Malaysia. However, there are lack of Shari’ah in this formulation based on parameter and also foundation of its formulation. Hence, an alternative model is more Shari’ah perspective is build, namely base pro t rate (BPR). Therefore, the intention of this paper is to investigate the existing model and alternative model used by Islamic finance/banking that is Rule 78 and BPR, respectively based on Shari’ah perspective.
Keywords: Base Profit Rate, Profit Rate, Reference Rate, Rule 78, Shari’ah.
Scope of the Article: Software Engineering Techniques and Production Perspectives