al-Tawarruq al-Masrifi

al-Tawarruq al-Masrifi (Banking Tawarruq) is a contemporary treatise in Islamic jurisprudence written by Riyad bin Rashid Al Rashud, examining the legal status, operational mechanisms, and economic implications of organized or banking tawarruq in modern financial institutions al-Tawarruq al-Masrifi+1.

Background and Scope

The book addresses banking tawarruq (al-tawarruq al-masrifi), also designated as organized tawarruq (al-tawarruq al-munazzam) or institutional tawarruq (al-tawarruq al-mu'assasi), as an unprecedented modern transaction developed by contemporary banks to supply clients with cash liquidity al-Tawarruq al-Masrifi+1. The author notes that while earlier treatments of the subject appeared primarily in conference papers and institutional councils—such as submissions to the Islamic Fiqh Academy of the Muslim World League and the al-Baraka symposium—the work was composed to provide a comprehensive, systematic study covering banking procedures, market realities, and legal characterizations al-Tawarruq al-Masrifi+1.

The work evaluates real-world bank products marketed under diverse commercial titles, such as Taysir al-Ahli, Tawarruq al-Khayr, Mal, and al-Tawarruq al-Mubarak al-Tawarruq al-Masrifi. It explores how these schemes operate, their relationship to classical individual tawarruq, and whether they function as genuine Islamic financing instruments or resemble prohibited forms of interest (riba) and repurchase transactions (bay' al-'inah) al-Tawarruq al-Masrifi+1.

Structure and Contents

The treatise consists of an introduction, a preliminary conceptual overview, three comprehensive chapters, and a conclusion al-Tawarruq al-Masrifi:

• Preliminary Section (al-Tamhid): Defines classical individual tawarruq (al-tawarruq al-fardi) and banking tawarruq linguistically and technically, surveys the naming conventions of modern banks, and explores the economic necessity of monetary liquidity in commercial life al-Tawarruq al-Masrifi.
• Chapter One (al-Tawarruq al-Fardi al-Fiqhi): Analyzes classical individual tawarruq. It investigates the principle of legal stratagems (al-hiyal) in Islamic jurisprudence, the relationship and distinctions between tawarruq and bay' al-'inah, classical and contemporary juristic disagreement on individual tawarruq, and the legal conditions required for its validity al-Tawarruq al-Masrifi+1.
• Chapter Two (Taswir al-Tawarruq al-Masrifi): Examines the structure of banking tawarruq, the multiple parties and contractual agreements involved, and the specific commodities utilized in these transactions al-Tawarruq al-Masrifi. It articulates the essential distinctions separating banking tawarruq from classical individual tawarruq, distinguishes banking tawarruq from usury (riba), evaluates its operational mechanisms, and contrasts it with other Islamic financing structures al-Tawarruq al-Masrifi+1.
• Chapter Three (Tatbiqat 'ala al-Tawarruq wa-Istikhdamuhu fi al-'Amal al-Masrifi): Surveys contemporary banking applications. These include international commodity murabahah with financial institutions; debt-settlement tawarruq enabling clients to refinance debts from conventional banks and shift to Islamic banks; credit-card financing (analyzing the Taysir and al-Khayr programs); and share-based tawarruq, comparing it to stock installment programs such as Watani al-Tawarruq al-Masrifi+1. It culminates in an extensive legal analysis of banking tawarruq programs, reviewing classical legal principles, the arguments of contemporary proponents and opponents, the resolutions of the Islamic Fiqh Academy of the Muslim World League, and the broader ramifications of tawarruq on the identity and future of Islamic banks al-Tawarruq al-Masrifi.
• Conclusion (al-Khatimah): Summarizes key findings and recommendations, highlighting that the classical term tawarruq was explicitly used by Hanbali jurists such as Mansur al-Buhuti, Ala al-Din al-Mardawi, and Ibn Muflih, while modern banking tawarruq is a novel, distinct institutional mechanism involving agency agreements where the bank sells a commodity on deferred payment and subsequently acts on the customer's behalf to sell it for spot cash al-Tawarruq al-Masrifi.

Publication

The work was published in its first edition in 1434 AH / 2013 CE by the Ministry of Awqaf and Islamic Affairs in Qatar, funded through the General Directorate of Endowments al-Tawarruq al-Masrifi.