The Genuine Ownership of Commodities by Islamic Banks and Its Beneficial Impact in Facilitating Instalment Sales: Sustainability Resource Economics

Abstract

A large number of customers suffer from a lack of financial liquidity in order to purchase expensive goods, so they resort to the method of purchasing in installments, but many sales stores direct them to banks because their financial accounts are there, and their salaries are deposited in these banks, and the bank either takes a commission for guaranteeing The customer is the buyer, or he pays the full amount to the store in one payment and the customer is asked to pay the bank in installments in an amount in excess of the amount that the bank paid to the store, and because of this increase there is suspicion of usury, or the bank actually owns the commodity with clear documents proving ownership, and these goods are transferred to the bank’s warehouses. Then the bank sells these goods on a Murabaha basis in installments to individuals. This is an excellent solution that is in harmony with the rules of Sharia, and related to this ownership is a set of rulings that this research will detail, God willing. Islamic banking in the Kingdom of Saudi Arabia has a pioneering experience in adhering to Islamic Sharia controls in its banking activities, and it seeks pure support for the Kingdom’s economy.

The objectives of the research were the most important:

1. Providing legitimate answers to people’s questions about the extent to which Islamic banks actually own goods, and knowing its beneficial effects in facilitating installment sales operations.
2. Monitoring a group of miscellaneous provisions and controls related to this topic in one place.
3. Proving the ability of Sharia to find appropriate solutions to people’s calamities in their lives.

This research concluded with scientific results that we explained at the end of the research.

The research also concluded with a set of important recommendations listed at the end, which are relevant and related to the field of this research.