Bay al-Inah sell-and-buy-back transaction. remains very controversial in the global Islamic finance industry.

Question

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Bay al-Inah, which involves selling an asset to a buyer on credit and then buying it back at a lower price for immediate payment, remains controversial due to concerns about its similarity to conventional interest-based transactions, which are prohibited in Islam. Different Islamic scholars and financial institutions have varying opinions on its permissibility, contributing to its controversial status in the global Islamic finance industry.

Bay Al-Inah Sell-And-Buy-Back Transaction