Potential of Islamic Debt Sale-based Financing in a Form of Bai’Bithaman Ajil (BBA) and Murabahah in Reconstructing and Rebuilding Marawi City after the Siege

Minombao Ramos-Mayo, Salma Esmael, Abdulcader M. Ayo

2019

Abstract

This study aimed to find out the views of the Internally Displaced Persons (IDP’s) regarding the potential of Islamic Debt Sale-Based Financing in a form of Bai’bithaman Ajil (BBA) and Murabahah in the reconstructing and rebuilding of Marawi City after the six months’ siege. The respondents of this study were 200 select professionals and Ulama of the known Islamic City of Marwari, LDS, Philippines. To collect the necessary primary data from the respondents the researchers utilized descriptive qualitative techniques with the help of a survey questionnaire. To determine the number of the participants, purposive sampling was used in determining the samples, and simple random sampling in actually selecting the number of the respondents involved in the study. The major findings of the study showed that some of the respondents belong to the poor families, unemployed, their livelihood was unsustainable for their needs, with less than 10 thousand monthly incomes, and no available microfinancing was they can engage themselves to do small enterprises or trading as a means of livelihood. Another significant finding is that the respondents of the study strongly believed that if there will be an Islamic Microfinancing Institution, it can help them so that their status of the economy will be improved. Also, most of the respondents believed that Islamic Debt Sale-Based Financing in the forms of Bai’ Bithaman Ajil (BBA) and Murabahah have potentials in reconstructing and rebuilding of Marawi City after the Siege. Findings further denote on the need to educate not just enlighten the people of Marawi City on the potential of Debt Sale-Based Financing in Marawi’s current situation. Additional findings highlighted were on the need to strengthen Islamic Finance in Marawi City through educating its people on their knowledge and understanding of the concept. Still, another important finding was Islamic legal documents and Islamic Finance Legal Framework were found to be part of the challenges and problems encountered by the respondents in the implementation of Islamic Debt Sale-Based Financing. In the light of that findings, it is hereby recommended that Islamic Finance should be implemented as it represents the true meaning of transactions in Islam; an emphasis on Bai’Bithaman Ajil (BBA) and Murabahah to be adopted as it will help IDP’s transform their status of living. Also, it is recommended for public officials, especially those who are in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) to give full prioritization on the truest implementation of Islamic Finance in the Philippines. Finally, a massive education and information drive or campaign on the use and implementation of Islamic microfinancing institution’s as possible solutions for the reconstructions and rebuilding of Marawi City after the siege should be done so that Muslim and even Non-Muslim in the Philippines especially the Bangsamoro areas can help in the rebuilding of the place

Paper Citation

in Harvard Style

Ramos-Mayo M., Esmael S. and Ayo A. (2019). Potential of Islamic Debt Sale-based Financing in a Form of Bai’Bithaman Ajil (BBA) and Murabahah in Reconstructing and Rebuilding Marawi City after the Siege. In Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance - Volume 1: 7th AICIF, ISBN 978-989-758-473-2, pages 202-211. DOI: 10.5220/0010120600002898

in Bibtex Style

@conference{7th aicif19,
author={Minombao Ramos-Mayo and Salma Esmael and Abdulcader Ayo},
title={Potential of Islamic Debt Sale-based Financing in a Form of Bai’Bithaman Ajil (BBA) and Murabahah in Reconstructing and Rebuilding Marawi City after the Siege},
booktitle={Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance - Volume 1: 7th AICIF,},
year={2019},
pages={202-211},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010120600002898},
isbn={978-989-758-473-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance - Volume 1: 7th AICIF,
TI - Potential of Islamic Debt Sale-based Financing in a Form of Bai’Bithaman Ajil (BBA) and Murabahah in Reconstructing and Rebuilding Marawi City after the Siege
SN - 978-989-758-473-2
AU - Ramos-Mayo M.
AU - Esmael S.
AU - Ayo A.
PY - 2019
SP - 202
EP - 211
DO - 10.5220/0010120600002898