www.daralsharia.ae |
This AAOIFI Shariah Standard summary is brought to you exclusively by IFN in collaboration with Dar Al Sharia. The intention of this is to provide the reader with an initial understanding of the standards and this does not purport to be complete or is intended to replace the standard itself. It is also highlighted that the reader should not rely on the below for any Shariah guidance purposes. |
About | |
Name of the standard: | Gold and its trading parameters in Shariah |
Standard number: | 19th November 2016 |
Sections: | Eleven sections; Sections 2 to 10 provide core rules of the standard. |
Purpose |
The purpose of the standard is to explain the contemporary types and forms of gold trading and investment and the applicable Shariah rules. The standard includes guidance for using gold in various contracts including commutative, noncommutative and security contracts. |
Scope |
The standard discusses the following aspects from the Shariah compliance perspective:
The standard does not include precious metals; furthermore the rules for trading and investment in currencies are covered under Shariah Standard No 1. |
Summary |
Trade and investment in gold are not prohibited under Shariah; however, from a Shariah perspective it is considered as a Ribawi commodity (there are six types, namely gold, silver, dates, wheat, salt and barley) for which specific rules for trade and exchange are provided. These rules apply to modern currencies too which may be referred to as Sarf. The conventional approach does not fully take into account the Shariah guidelines, therefore this standard was developed to guide investment and trading in gold and gold-related products. |
Some of the applications of the standard in banking and finance transactions |
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Highlights | |
Trading in gold |
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General Shariah rulings |
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