Abstract
Daman Milkiyyah or ownership risk is an important element in Islamic Law of Contract as there are many implications arising from it. This concept also highlights one of the unique features of Islamic Law of Contract which promotes justice in transactions. The lack of a proper understanding of this concept may lead people to breaching Shariah principles as well as dealing with non-Shariah compliant transactions. It is the purpose of this paper to shed light on the fundamental concepts of ownership risk and its application on some of modern financial instruments. This work will write down the scattered though of ownership risk which has been discussed by Islamic classical scholars and continued by matching this concept to the existing modern financial instruments. In the end of the paper, we suggest further enhancement in the financial industry to adhere more towards shariah principle.
Highlights
Islam as a religion which brings bless for the universe comes to improve the various concepts in life
It first tries to find out and elaborate the ownership risk concept through the existing literature considering that it is rare to be found from our classical scholars to discuss this topic
The concept of ownership risk is among the fundamental principles which builds the Islamic Law of Contract
Summary
Islam as a religion which brings bless for the universe (rahmatan lil-ālamīn) comes to improve the various concepts in life. Of the many things that Islam introduces, one of the points emphasized is to uphold justice. The concept of Islamic justice can be seen clearly in aspects such as criminal law, family law as well as that one which becomes a lot of spotlight in this modern era: the financial dealing (mu’āmalah māliyah) matters. In the case of financial dealing, the most distinct character that has been embedded in the teachings of Islam is to bear the risk of all acts as a natural consequence of life. An Islamic scholar is at risk if his fatwa or teachings went wrong. Someone who has any property must accept all the consequences and risks, including maintenance costs, risk of damage, and risk of loss
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