Combined financial contracts and their use in risk management: the istijrar contract and the wa’ad structure as a model

Abstract

This study aims to demonstrate the importance of Combined financial contracts in managing financial risks as it is one of the innovative contracts alternative to traditional tools that combine the rules of Islamic Sharia and considerations of economic efficiency, while highlighting two models of two Combined financial contracts, namely the istijrar contract created by the Islamic Commercial Bank in Pakistan and the product based on a promise Certified by the German Bank.

     In order to understand the aspects of the subject, it was relied on the descriptive analytical approach and the case study approach, and a number of results were reached, the most important of which is that the istijrar contract and the product based on the promise are two models according to which the seller and the buyer can manage price risks, and this is in light of the existence of a jurisprudential dispute about the legality of the two contracts.