The effect of codifying the provisions of Shariah Modaraba contracts on mutual funds

Abstract

This study aims to shed light on the concept of codifying rulings in financial transactions in general and Shariah Modaraba contracts in mutual funds in particular, and the ruling on its legitimacy and the opinions of jurists on the issue of codifying legal rulings and the implications of legalizing rulings, and the importance of formulating the provisions of financial transactions in an accurate and clear way that is contrary to ignorance In its details and not leaving room for individual jurisprudence through the formulation of provisions in the form of laws derived from Islamic law upon which judicial rulings are based when Shariah Modaraba contracts in financial institutions, and its impact on speculation contracts in investment funds.

The researcher used the analytical descriptive approach by highlighting the problem of the study represented by the multiplicity of opinions and jurisprudential rulings on a single financial issue and its impact on Modaraba contracts in mutual funds.

The study reached several results, the most important of which are: Given the presence of a significant number of jurists who oppose the issue of codifying Sharia law in general, we note the importance of codifying only in matters that require it, the most important of which are financial and economic provisions because of its role in the speedy completion of transactions between different groups. Which is done electronically and needs a clear database and is subject to accurate accounting systems.

  There is a need to develop the application of legitimate Modaraba contracts in mutual investment funds so that they can be used optimally.

The study also reached several recommendations, the most important of which are: Work on issuing a unified and binding Sharia law for Islamic mutual funds, which guarantees the rights of subscribers to it from small savers and puts an end to their exploitation and burdens that they are not obligated to bear, which reduces their profits unjustly.