CONCEPTUALISING ISLAMIC CREDIT CARDS BASED ON MUSHĀRAKA MUTANĀQISA

Abstract

The purpose of this paper is to conceptualise an Islamic credit card (or mushārakacard) based on the Islamic principles of mushāraka mutanāqisa. A qualitativemethodology was employed, with qualitative content analysis used on AAOIFI Shari’aStandard (SS) No. 12 “Sharikah (Musharaka) and Modern Corporations” to derivekey rulings and controls for mushāraka mutanāqisa, which were then used toconceptualise an Islamic credit card based on mushāraka mutanāqisa. Theoretically,it should be possible to develop an Islamic credit card based on the Islamic rulings ofmushāraka mutanāqisa. The concept provided in this paper could be adopted as apilot project by Islamic retail banks. Evidence suggests that a new revised standardfor credit cards (included within AAOIFI Shari’a Standard (SS) No. 2) was underconstruction while this research was being undertaken. Therefore, it was not possibleto review what perhaps may be relevant information for conceptualising a new Islamiccredit card. The research intends to fill the gap by qualitatively conceptualising anIslamic credit card based on a mushāraka mutanāqisa in an in-depth manner,especially with the use of AAOIFI as a base for the conceptual analysis.