• Abdul Rahman Saafi




Islamic Finance, Sharia'ah Objectives, Equity Financing, Hybrid Contract, House Financing Systems


This study aims to examine the factors influencing the Practitioners’ acceptance on Musharakah Mutanaqisah (MM) Islamic home financing (IHF) products amongst clients of Islamic financial institutions in Afghanistan.  Using the MM model as a baseline theory, data are collected from the practitioners (Managers, Head of departments and Shari’ah advisors) of IFIs in Malaysia and Afghanistan, using self-administered open-ended questions. Using the qualitative method, the study finds that; attitude, subjective norm, perceived control and Compliancy of product are instrumental in determining the practitioners’ acceptance of Islamic home financing products. It is also discovered that; gender, academic qualification and monthly income have their own effects on without the consumer acceptance. There are three limitations for future studies of IHF in Afghanistan. First, the current work does not include the experienced users who utilize Islamic home financing products. Second, the contribution of the present study is confined to the analyzed explanatory variables. Third, this study also has geographical constraints in which it will be conducted in Afghanistan. These limitations, however, provide directions for further future research. Essentially, this study is a pioneering effort in applying the MM model to the new context of IHF products and to integrate the stakeholders’ acceptance for lower-income class in Afghanistan. This study introduces the compliancy of product and factors in explaining the practitioners/stakeholders acceptance on MM Islamic home financing products. Most fundamentally, this study proposes a modified intellectual framework that is of utmost importance to predict the demand for IHF products in the future.


Download data is not yet available.


Al-Attas, S. M. N. (2005). Islamic philosophy. Journal of Islamic philosophy, 1(1), 11-43.

Abushareah, M. A. A. R., & Mohamed Naim, A. (2015). The Practices of Musharakah Mutanaqisah in Islamic Financial Institutions. International Journal of Education and Social Science, 2(3), 105-114.

Abdul-Razak, D., & Amin, H. (2013). Application of Musharakah Mutanaqisah Home Financing As an Alternative to Traditional Debt Financing: Lessons Learned From the US 2007 Subprime Crisis. Journal of Islamic Economics, Banking and Finance, 9(3), 115-130.

Abdullah, A. A., & Rahman, H. A. (2012). Identification of relevant risks in abandoned housing projects in Malaysia: a qualitative study. Procedia-Social and Behavioral Sciences, 62, 1281-1285.

Abdul Razak, D., Fauziah, & Taib, M. (2011). Consumers' perception on Islamic home financing: Empirical evidences on Bai Bithaman Ajil (BBA) and diminishing partnership (DP) modes of financing in Malaysia. Journal of Islamic Marketing, 2(2), 165-176.

Abduh, Syaikh Muhammad, Al-Islam Wal-Nasraniah: Ma-Al-Ilm Wal-Mudan , Al-Moutmar Al-Islami, Egypt: (1375H), P 12

Accounting and Auditing Organization for Islamic Financial Institutions, “Islamic Financial Definition,”AAOIFI, http://www.aaoifi.com/aaoifi/IslamicFinancialDefinitions/tabid/209/language/en-US/Default.aspx> (accessed 14 February, 2013).

Adam Ng Boon Ka, “Analysis-Shari’ah and Legal Issues of Musharakah Mutanaqisah”, New Horizon,<http://www.newhorizonislamicbanking. com/index.cfm?section=news&action=view&id=10852>, viewed on 3 september 2013.

Al-Sarakhsi (1st edition (Hanafi), vol.11, pp.153,177,189), Ibn Al-Humam ((Hanafi), vol.5, p.5 onwards), Al-Kasani ((Hanafi), vol.6, p.58), Al-Zaylai’ ((Hanafi Jurisprudence), vol.3, p.313), Majma’ Al-Damanat (p.294), Ibn ‘Abidin ((Hanafi), vol.3, pp.369-372), Al-Tahawi ((Hanafi), p.106), Ibn Rushd Al-Hafid ((Maliki), vol.2, p.251), Al-Dardir ((Maliki) A,vol.3, p.351), Al-Khatib Al-Shirbini ((Shafi), vol.2, p.212), Abu-Ishaq Al-Shirazi ((Shafi’), vol.1, p.364), Ibn Qudamah (, vol.5, p.26), Al-Jaziri (1986, vol.3, p.89), Al-Sha’arani ((Shafi’), vol.1, p.82), Al-Muntaza’ Al-Mukhtar (vol.3, p.354).

Ahmed, A. (2010). Global financial crisis: an Islamic finance perspective. International Journal of Islamic and Middle Eastern Finance and Management, 3(4), 306-320.

Amin, H., Rahim Abdul Rahman, A., Laison Sondoh Jr, S., & Magdalene Chooi Hwa, A. (2011). Determinants of customers' intention to use Islamic personal financing: The case of Malaysian Islamic banks. Journal of Islamic Accounting and Business Research, 2(1), 22-42.

Amin, H., Rahman, A. R. A., & Razak, D. A. (2014). Willingness to be a partner in musharakah mutanaqisah home financing: Empirical investigation of psychological factors. Jurnal Pengurusan, 40, 69-81.

Amin, H., Abdul-Rahman, A. R., & Abdul-Razak, D. (2013). An integrative approach for understanding Islamic home financing adoption in Malaysia. International Journal of Bank Marketing, 31(7), 544-573.

Amin, H., Abdul-Rahman, A. R., & Abdul-Razak, D. (2009). Is the theory of planned behaviour valid for Islamic home financing?

Amin, H. (2008). Choice criteria for Islamic home financing: Empirical investigation among Malaysian bank customers. International Journal of Housing Markets and Analysis, 1(3), 256-274.

Aris, N. A., Othman, R., Azli, R. M., Arshad, R., Sahri, M., & Yaakub, A. R. (2012). Islamic house financing: Comparison between Bai'Bithamin Ajil (BBA) and Musharakah Mutanaqisah (MM). African Journal of Business Management, 6(1), 266.

Aziz, M. R. A., & Noh, M. S. M. (2013). Tools ofUsul al-Fiqh inRealizing Maqasid al-Shari’ah in SukukStructures in Malaysia: An Initial Analysis. international Journal of Education and Research, 1(10).

Azli, R. M., Othman, R., Sahri, M., Aris, N. A., Arshad, R., & Yaakob, A. R. (2011). Implementation of Maqasid Shari'ah in Islamic House Financing: A Study Of The Rights And Responsibilities Of Contracting Parties In Bai'Bithaman Ajil And Musharakah Mutanaqisah. Journal of Applied Business Research, 27(5), 85.

BNM, Resolution of Shari’ah Advisory Council of Bank Negara Malaysia, <http://www.bnm.gov.my/guidelines/01_banking/04_prudential_stds/07_Shari’ah_resolution.pd f> viewed on 23 January 2013, page 11/37.

Bhatti, F. A., Ullah, Z., Salamat, N., Ayub, M., & Ghani, E. (2007). Anti–hepatits B core antigen testing, viral markers, and occult hepatitis B virus infection in Pakistani blood donors: implications for transfusion practice.Transfusion, 47(1), 74-79.

Bin Shuib, M. S., bin Sulaiman, A. A., & bin Mohamad, M. T. (2011). Middle east bank and their challenge operation in Malaysia: A case study on Kuwait finance house Malaysia Berhad. African Journal of Business Management, 5(11), 4000-4006.

Dzuljastri, A. R., Mustafa, O. M., & Fauziah, M. T. (2008). Consumers' Acceptance on Islamic home financing: Empirical evidences on Bai Bithaman Ajil (BBA) in Malaysia. In IIUM International Accounting Conference IV (INTAC), Marriot Putrajaya Hotel.

‘Ibn Hubayrah ((Hanbali), p.25), Ibn Juzayy ((Maliki), p.283), Al-Dardir (Maliki) A, vol.3, pp.351,359), Al-Kharshi (1317H, 1st and 2nd editions (Maliki), vol.6, p.43), Dr. ‘Ali Al-Khafif (p.34) and (p.61), 1317H- Al-Sharikat fi Al-Fiqh Al-Islami.




How to Cite

Saafi, A. R. (2021). DIMINISHING PARTNERSHIP (MUSHARAKAH MUTANQISAH) PRODUCT FOR ISLAMIC HOME FINANCING: THE CONCEPT FOR ISLAMIC FINANCIAL INSTITUTIONS IN AFGHANISTAN. International Journal of Islamic Economics and Finance Research, 4(2 December), 14-24. https://doi.org/10.53840/ijiefer.v4i2.58