The application of bai-al-inah and bai-al-dayn in Malaysian Islamic bonds: an Islamic analysis

Financial contracts involving the use of bay' al-inah and bay' al-dayn have been extensively used in the design of Malaysian Islamic bonds. Both of these mechanisms have been found unacceptable by Islamic scholars. The use of financing based on Muqarada and Musharaka principles is a more genuine alternative to interest-bearing financial instruments.