International Centre for Education in Islamic Finance (INCEIF), Kuala Lumpur, Malaysia

Despite the huge amount of wealth in the hands of Muslims, most countries with a Muslim majority population fall in the category of developing nations.

Over the past decades much effort and research has gone into establishing a viable set of Islamic financial institutions. An area of utmost importance, which still has gaping holes, is the development of instruments for government financing on a global level. Most

Customers of Islamic banking industry continue to be skeptical on Sharīʿah compliance of Islamic banks despite receiving fatwa from the competent authorities.

Purpose: This paper aims to investigate the utilisation of both zakāh and

Purpose: The purpose of this paper is to elucidate the concept of ḍamān al-milkiyyah (ownership risk) and to assess its application in contemporary Islamic financial products and services. Design/methodology/approach: The methodology adopted is that of descriptive research. Findings: From an Islamic law of contract perspective, the concept of ḍamān al-milkiyyah is central to legitimate profit-making transactions and hence must be adhered to in practical applications of Islamic finance.