Abstract:
This paper examines one method of business financing namely tawarruq. Particular emphasis is given to the use of such method in home financing. This study suggests that the instrument is useful for the business community to get permissible financing specifically on home financing. However, there are disputes by scholars on the underlying contracts. Perhaps, further research is needed in scrutinizing the practice in order to improve the instrument. This focuses on the basic characteristics of Islamic ethics and tawarruq, its implementation in Malaysian banks specifically Bank Islam Malaysia Berhad.