The Role of the Salam( ) Contract in Promoting Islamic Investment in Islamic Banks

Document Type : Original Article

Author

College of Humanities and Social Sciences, Zayed University, United Arab Emirates, Dubai.

Abstract

Islamic finance is currently witnessing rapid growth in our contemporary er, as Muslim investors seek to align their investments with the principles of Islamic Sharia. Salam, is one the important financing instruments that facilitates investments according to these principles. It is of great importance in Islamic banking institutions, which play an essential role in providing financial services compatible with Islamic Sharia. These institutions rely on a set of contracts and mechanisms to ensure that their business operations are consistent with what pleases Allah.This research aims to elucidate the role of the Salam contract in achieving Islamic investment. It calls upon Islamic banks to engage in this type of financing in accordance with specified terms and mechanisms to realize the intended goal of contributing to the economic development of countries. The study focuses on analyzing the mechanisms of the Salam contract in Islamic banks and how this contract can enhance investment in agriculture, industry, and foreign trade. It explores how this contract can strike a balance between investors' needs and adherence to Sharia principles in financial transactions. The research will provide a concise overview of the significance of the Salam contract in supporting Islamic investment and achieving sustainable development in the Islamic financial sector.

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History

  • Receive Date: 11 August 2024
  • Accept Date: 11 August 2024

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