The Islamic ethical principles in commodity derivatives contracts

Nadhirah Nordin, Rahimah Embong, Normadiah Daud, Siti Khatijah Ismail, Siti Fatimah Salleh, Azlin Alisa Ahmad

Research output: Contribution to journalArticle

Abstract

Islamic ethics is essential for derivatives contracts as Islam emphasizes its significance for the development and betterment of individual and society. From the Islamic worldview, ethics deals with the issues of what is right and what is wrong as well as a code of conduct in the marketplace to ensure the proper practices of commercial dealing and the prevention of unethical doings. Initially, the main purpose of derivatives contracts is risk-hedging. However, the application of derivatives in hedging has caused several arguments and disputes among the majority of Islamic jurists. Thus, this article aims to analyze the concept of Islamic ethics in commodity derivatives contracts. It uses a thematic analysis approach to analyze the content obtained from the related literature. This study found three main principles of Islamic ethics in commodity derivatives contract which are the availability of goods during the contract, taking possession (qabd) in the contract and conformity of contracts with the objectives of Islamic law (maqasid al-shariah).

Original languageEnglish
Pages (from-to)1-5
Number of pages5
JournalJournal of Legal, Ethical and Regulatory Issues
Volume22
Issue numberSpecial Issue 1
Publication statusPublished - 1 Jan 2019

Fingerprint

commodity
moral philosophy
jurist
conformity
worldview
Ethical principles
Derivatives
Commodities
possession
Islam
Law

Keywords

  • Contract
  • Derivatives
  • Islamic dealing
  • Islamic ethics
  • Maqasid al-shariah

ASJC Scopus subject areas

  • Business and International Management
  • Sociology and Political Science
  • Economics and Econometrics
  • Strategy and Management
  • Law

Cite this

Nordin, N., Embong, R., Daud, N., Ismail, S. K., Salleh, S. F., & Ahmad, A. A. (2019). The Islamic ethical principles in commodity derivatives contracts. Journal of Legal, Ethical and Regulatory Issues, 22(Special Issue 1), 1-5.

The Islamic ethical principles in commodity derivatives contracts. / Nordin, Nadhirah; Embong, Rahimah; Daud, Normadiah; Ismail, Siti Khatijah; Salleh, Siti Fatimah; Ahmad, Azlin Alisa.

In: Journal of Legal, Ethical and Regulatory Issues, Vol. 22, No. Special Issue 1, 01.01.2019, p. 1-5.

Research output: Contribution to journalArticle

Nordin, N, Embong, R, Daud, N, Ismail, SK, Salleh, SF & Ahmad, AA 2019, 'The Islamic ethical principles in commodity derivatives contracts', Journal of Legal, Ethical and Regulatory Issues, vol. 22, no. Special Issue 1, pp. 1-5.
Nordin N, Embong R, Daud N, Ismail SK, Salleh SF, Ahmad AA. The Islamic ethical principles in commodity derivatives contracts. Journal of Legal, Ethical and Regulatory Issues. 2019 Jan 1;22(Special Issue 1):1-5.
Nordin, Nadhirah ; Embong, Rahimah ; Daud, Normadiah ; Ismail, Siti Khatijah ; Salleh, Siti Fatimah ; Ahmad, Azlin Alisa. / The Islamic ethical principles in commodity derivatives contracts. In: Journal of Legal, Ethical and Regulatory Issues. 2019 ; Vol. 22, No. Special Issue 1. pp. 1-5.
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