الملخص الإنجليزي
Abstract :
Repurchase Agreements (Repo) offer institutions a toolbox for managing short-term liquidity. They allow institutions to address liquidity needs without selling long-term investments, enable institutions with excess cash to earn returns, and empower the central banks to manage the money supply and short-term interest rates. However, Repos are prohibited in Islamic Finance due to their inherent interest-based nature (Riba) under Sharia law. This research addresses a critical gap in the knowledge base by exploring Sharia- compliant alternatives that effectively address the short-term liquidity needs of Islamic financial institutions (IFIs). Employing a multifaceted methodology, the primary approach will be qualitative, the analysis will employ a combination of approaches namely descriptive approach, comparative jurisprudential approach, and applied approach. This study investigates both Repos in conventional banking and Sharia-compliant alternatives proposed by scholars and industry bodies. The research identifies and analyzes a range of these alternatives, including structures Three-Party I'aadat Al Shira'a and the Collateralized l'aadat Al Shira'a, alongside the feasibility of Reciprocal Loans With Equal Ratios and Wakala Investment based on Mudaraba or Murabaha principles, etc. Looking forward, the research paves the way for further exploration in optimizing their practical implementation for enhanced efficiency, and encouraging development of new Sharia-compliant instruments to foster a more vibrant Islamic finance landscape.
