According to Asmak A.

Rahmand (2010), the concept of tawaruq is discussed

together with the opinions of both previous and current academics regarding the necessity
of using the concept in Islamic banking products. The scholars who support this tawaruq
transaction see it as being based on the phrase in the Al-Quran that reads, "Allah has
permitted buying and selling and prohibited riba." This demonstrates that all business
dealings are lawful, with the exception of buying and selling, which the Al-Quran and hadith
both label as haram.

There are two different school of thought among scholars on the use of tawarruq concepts,
and they are as follows:

a) Views of the Scholars of the Past

The Hanafi school's Abu Yusuf and Muh Ammad bin al-asan classified bay' al-tawarruq as
one of the varieties of bay' al-'nah. While Muhammad bin al-Asan declared that a
transaction involving only two persons is makruh, Abu Yusuf has stipulated that this
transaction must involve a third party. According to Ibn Hummam, bay' al-tawarruq is
required if the seller is unaware of the buyer's genuine goal, which is to obtain money; if it is
the other way around, the law is makruh. In summary, we may comprehend that the Hanafi
school requires bay' al-tawarruq" if the vendor is unaware of the buyer's genuine intentions.
While the Maliki School does not directly address tawarruq. When they do not include kinds
of buying and selling that resemble tawarruq in the banned types of buying and selling, it
can be concluded from their discussion in the chapter buyu' al-'ajal that tawarruq is
necessary.

Next, the law of bay' al-tawarruq is not adequately explained in the works of the
Shafi'i school. They did, however, demand bay' al'nah. According to Imam al-Syafi'i, whoever
sells an item on a deferred payment basis and the buyer accepts the item, the buyer may
then resell the item at the same price, a higher price, a lower price, in cash or on credit
because the new sales contract is separate from the original sales contract.

According to Imam al-Nawawi, bay' al-'nah is not a sale and purchase agreement,
which is prohibited by syar'a. Therefore, if the academics of this school permit bay' al-'nah
involving only two parties, bay' al-tawarruq is more crucial (awla) required. There are two
points of view in the "anbali school," including al-Bahut's belief that the law of bay' al-
tawarruq ought to be. According to him, if someone needs money and has purchased
something for $100 at a greater price with the intention of using the money, then they have
a dilemma known as the al-tawarruq problem.

However, Imam Ibn Taymiyyah has stated that there are two narrations from Imam
Ahmad Ibn Hanbal. The first narration requires bay' al-tawarruq while the second narration
states that bay' al-tawarruq is makruh. Imam Ibn Taymiyyah has supported the second
narration because he argued with the words once spoken by 'Umar Ibn 'Abd al-'Aziz which is
(‫ ( الربا اخية التورق‬which means "al-tawarruq is the brother and sister of usury.

In conclusion, it can be said that bay' al-tawarruq is harus based on the three
perspectives advanced by scholars in the past. One of the viewpoints of Imam Ahmad Ibn
Anbal, Ibn Hummam, and his followers, as well as Abu Ysuf from the Hanafi school, Imam al-
Syafi'i, Imam al-Nawawi, and Imam al-Syafi'i, articulated this viewpoint. The next is makruh.
According to Imam Ahmad Ibn Anbal, this is the perspective of the Maliki school. The third is
makruh, which is akin to a criminal offence. Imam Muhammad Bin Al-Asan al-Syaybani, Ibn
Taymiyyah, and Ibn Qayyim all agreed with this viewpoint.

b) Views of Contemporary Scholars

In the meantime, tawarruq was mandated by the 15th meeting of Majma' al-Fiqh al-Islam.
This ruling actually applies to tawarruq contracts in which the parties have not previously
agreed upon anything. However, it was decided to forbid Tawarruq at the 17th conference.
The form of tawarruq that some financial institutions use, also known as al-tawarruq al-
munaz z m/al-mas rafi/al-mu'assasi, is covered by this ruling. The act of the financial
institution selling goods acquired from the institution to a third party in its capacity as a
representative of the mustawriq (customers who need liquidity) is comparable to the
practise of bay' al-'nah and does not adhere to the required form of tawarruq as established
by scholars in the past. However, the Middle East Islamic Financial Advisory Council has
mandated the use of al-tawarruq al-munaz by institutions such HSBC Amanah, Arab National
Bank, The National Commercial Bank, and Shamil Bank. Dr. Khalid b 'Ali al-Musyayqah, Dr.
Rafiq Y.nus al-Misr, Dr. Muhammad b 'Abd Allah al-Syyban, Dr. Sami Suwaylem, and Dr. and
Dr. Ḥussin Ḥamid Ḥassan.
 While the majority of past and modern academics believe that tawaruq al fardi
should be implemented, debates have started to surface about the implementation of
tawaruq munazzam (organised tawaruq) and tawaruq al masrafi (banking tawaruq).
According to the Islamic Fiqh Academy, tawaruq al fardi is acceptable in Islam while tawaruq
munazzam is prohibited by syar'a. This is not to say that tawaruq munazzam cannot be used,
just that it needs some work. Salah Al-Shalhoob outlined several suggestions for enhancing
the tawaruq munazzam contract, including the requirements that the good sold to the
customer be entirely owned by the seller, that the financial institution not act as the buyer's
agent in the sale of the good in the market but rather that the buyer sells the good himself
to obtain cash, and that the financial institution work with customers in business to sell
goods on a deferred or cash basis.

Refferance

Zaki, M. (2021). Bentuk Dan Jenis kontrak jual beli: Al-Wafa’, al-‘inah, Al-Tawarruq, Dan al-
Dayn. ISTIKHLAF: Jurnal Ekonomi, Perbankan Dan Manajemen Syariah, 1(2), 87–104.
https://doi.org/10.51311/istikhlaf.v1i2.274

Seman, A. C., & Mahyudin, M. I. (2014). Bay’ al-Tawarruq Dan Aplikasinya di bank
Muamalat Malaysia Berhad = bay’ al-tawarruq and its application in Bank Muamalat
Malaysia Berhad. The Journal of Muamalat and Islamic Finance Research, 11(1), 75–96.
https://doi.org/10.12816/0028815