APLIKASI KONSEP KEJUJURAN DALAM AL-IJARAH THUMMA AL-BAI’ (AITAB) DI INSTITUSI PERBANKAN ISLAM DI MALAYSIA

Abstract

Al-Ijarah Thumma Al-Bai' (AITAB) is an innovation in Islamic finance and has emerged as a popular method of financing in Islamic banking institutions in Malaysia. The implementation of AITAB in Malaysia must comply with the concept of honesty which is an important principle in the context of muamalat. The element of honesty plays an important role in curbing unhealthy practices and ensuring that the contracting parties are not wronged. Therefore, this paper aims to examine the extent to which the concept of honesty is applied in AITAB-based financing in Islamic banking institutions. This study employed qualitative research methodology. The data is obtained by using the method of content-analysis through library research as well as document analysis by analyzing AITAB agreement documents. The findings of the study showed that the implementation of AITAB in Malaysia applies the concept of honesty through the disclosure of material information related to AITAB financing. However, there are suggestions for the improvement of the application of the concept of honesty in AITAB-based financing in Malaysia.