Loan Cheques and the Position of Islamic Jurisprudence Towards Them

Abstract

Securities such as stocks, bonds, treasury bills, and sukuk are considered instruments for aggregating savings at the level of economic units, public institutions, and the state. Most countries worldwide have established financial markets for trading these securities, and companies have been set up to invest in them, such as banks, financial institutions, investment firms, and brokerage companies. The concept of sukuk emerged recently and has spread globally, proving successful in financing both public and private projects, and has been utilized in development financing following repeated financial crises. Among the types of sukuk, sukuk al-muqarada has emerged, raising numerous questions regarding its Shariah permissibility for trading. While some scholars view it as permissible, others consider it impermissible, with a ruling from the Jeddah-based Islamic Fiqh Council supporting the former view. This study aims to analyze sukuk al-muqarada, its characteristics, and its Shariah regulations, comparing them with the fatwas of contemporary scholars and the resolutions of the Islamic Fiqh Council in Jeddah, with the objective of enhancing Islamic banking in Libya, ensuring equal opportunities, achieving social justice, and promoting the national economy.