The Final Report Resolutions and Recommendations Fortieth ......obligations in the commitment determined by the Holy Quran and the Sunnah of the Prophet, namely: (A) Insolvency Case:

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ندوة البركة األربعون لالقتصاد اإلسالمي

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The Final Report

Resolutions and Recommendations

Fortieth Al-Barakah Annual Symposium

on the Islamic Economics

)Kingdom of Saudi Arabia ( 16th & 17th Ramadan 1441H

Corresponding to 9th & 10th May 2020

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In the Name of Allah the Beneficent the Most Merciful

Blessings and Peace Be Upon the Most Honorable Messenger

Praise be to Almighty Allah, with His Grace the righteous deeds are

accomplished, and May His Peace and Blessings be upon the Messenger Who was

sent as Mercy to the Creations, our Master Mohammed and His Family and All

Companions .

It is with the Support of Almighty Allah, that the Iqra Waqf for Development and

Employment, has held online (through internet), the Fortieth Symposium on

Islamic Economics, from 16-17 Ramadan 1441 AH, corresponding to 09-10 May

2020. The symposium was held in an exceptional circumstance in view of the great

crisis that facing the entire Humanity in all countries of the world, from the

outbreak of the emerging epidemic of Coronavirus (COVID 19), which thereafter

classified as pandemic by the World Health Organization (WHO). Therefore, it was

obligatory for the Al-Barakah Symposium on Islamic Economics at its Fortieth

Session, to examine the topic (the jurisprudence of pandemics) and the Role of

Islamic Economics and Science of development and employment; in addressing the

effects of this pandemic and its implications for the global economy as well as on

the contractual relations and the rights of various parties. The symposium

discussed the following topics:

First: The Future Obligations in the Contracts of the Financial and Financing

Institutions and the Resulting Default on the Payment of Debts.

Second: To Expedite and Delay Zakat from the Whole Year Duration.

Third: Contracts, Supplies and Similar Contracts that are Delay in Implementation.

Fourth: Ijarah Contracts (Leasing).

Fifth: Reservations for Hotel, Aviation, Transportation Services, Shipping & Freight,

and Special Education.

Sixth: Services Charges such as Electricity, Water and Communications.

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Seventh: Work Contracts under the Pandemic and Dealing with its Effects.

Eighth: To Take advantage of the set aside Funds in Islamic Financial Institutions

and Companies.

Ninth: The Difficulty in Recovering of the Sukuk (Islamic Bonds).

The proceedings of the symposium lasted for two days, it was earlier opened with

welcoming introductory speech by H. E. Saleh Kamel - Chairman of the Board of

Directors of the General Council for Islamic Banks and Financial Institutions, and

Chairman of the Board of Trustees of Waqf IQRA - on the pandemic and the

imposed social and economic effects that affected all parts of the globe, and the

duty of distinguished scholars in to draw inspiration from the Holy Qur’an, the

Correct Sunnah and Jurisprudence Rules to address the effects of this pandemic,

while praising the precautionary efforts made by the government of the Custodian

of the Two Holy Mosques and the Governments of Islamic countries.

A good number of scholars, experts and specialists in financial transactions, the

Judiciary and the Law, participated in the symposium, as per the attached list.

After a thorough discussion of the research that fulfilled the issues and

requirements of all themes of the symposium, the participants reached the

following resolutions and recommendations:

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Resolutions and Recommendations

Introduction

Defining Pandemics, their Relevant References and

Overall Rules

1. Definition: It is every harm that was caused by a sudden unusual year,

which cannot be resisted and disintegrate from its effects, it prevents

from fulfilling the financial obligations that have been settled in the

contract without the possibility of its inclusion.

2. The basic principle for setting pandemics is the general texts in the

Noble Qur’an, and what was mentioned in the Prophet’s Sunnah in

the Hadith of Jabir, (May Allah be Pleased with Him), that the

Prophet, (Peace Be Upon Him) "commanded to place pandemics".1

Likewise, the Hadith of Jabir bin Abdullah said: The Messenger of

Allah, (Peace be Upon Him), said: “If you sell fruit to your brother,

then if it got defected with a pandemic, then it is not permissible for

you to take anything from him, unless you take the money of your

brother without right.2”.

3. The reason for pandemic provisions is facilitation and lifting of

difficulty. The following rules: “Hardship necessitates ease and

removal of damage”. They are comprehensive rules defined by the

Sharia and are considered to be among the basic principles of

legislation. Almighty Allah said: (And has not placed upon you in

the religion any difficulty) [Hajj: 78]. He said: “Allah intends for you

ease and does not intend for you hardship” [Al-Baqarah: 185]. And

saying of the Prophet Mohammed (Peace Be Upon Him), “There

should be neither harming (darar) nor reciprocating harm (dirar).3”.

4. The principle of pandemics was adopted by the "emergency

circumstances", the International Islamic Fiqh Academy in some

disasters, such as: the occurrence of unruly inflation that leads to the

great collapse of the purchasing power of some currencies, in the ninth

session held in Abu Dhabi Resolution No. 89 (6/9), as well as the Fiqh

Academy dependent To the Muslim World League in its Resolution

1 Narrated by Muslim 2992 and Hakim in Mustadrak on the Two Sahih Books 47/2 and other books. 2 Narrated by Muslim 2988. 3 Narrated by Malik in Moutta 2/745 and Baihagi in the Sunnun 542/11.

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No. 7 of the Fifth Session, 1402/1982 AD regarding "emergency

circumstances and their impact on contractual rights and obligations”.

5. Islamic jurisprudence has used terminology whose meanings are close

to pandemics and has been frequently used by jurists. Such as:

disability, lesion, excuse (excuses). The jurists used two terms in

contemporary transactions that bring closer the meaning of pandemics

to jurists: “emergency conditions” and “force majeure”. Although

there are differences between them, but they are not effective in the

practical applications.

6. What is drawn from the words of scholars and jurists that the

pandemic has certain fundamentals that must be fulfilled, namely: (1)

the dominant causation; That is, the attribute of dominance and

oppression that cannot be avoided often, (2) the general effect and not

for a specific category and not another, (3) sudden and unpredictable

(exceptional).

7. The contemplator on the purposes and overall rules of the Sharia and

if one looks at the provisions of the pandemics and their related issues,

he finds that they fall into the category of needs - often - and that the

motive for the provisions of pandemics is to facilitate and raise the

hardship, not the resort (necessity), and it does not result in its failure

to miss a necessary matter of Sharia law or not fulfilling or serving

the interests of religion and the present life.

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Resolutions

The First Topic

The Future Obligations in the Contracts of the Financial

and Financing Institutions and the Resulting Default on the

Payment of Debts.

First: It is preferable to differentiate between two cases in the

obligations in the commitment determined by the Holy Quran and the

Sunnah of the Prophet, namely:

(A) Insolvency Case:

1- If the customer proves his insolvency in the ways deemed legitimate

by an individual or institution due to the effects of the pandemic, the

ruling in that is his view of the facilitator, and the Holy Qur’an urges

the creditor in this case to give credit to the debtor by absolving him

of the debt or part of it. Almighty Allah said: (And if the debtor is in

a hard time (has no money), then grant him time till it is easy for

him to repay, but if you remit it by way of charity, that is better for

you if you did but know.). Al-Baqarah-280, Al-Qurtubi said: “There

is a general view of facilitation to all people. For everyone who is in

difficulty, ought to be given an opportunity”4. It is authenticated from

Prophet Mohammed (Peace Be Upon Him) that he said: “He who

gives respite to someone who is in straitened circumstances, or grants

him remission, Allah will shelter him in the shade of His Throne, on

the Day of Resurrection, when there will be no shade except its

shade.5” Narrated Abu Huraira :The Prophet (Peace Be Upon Him)

said, "There was a merchant who used to lend the people, and

whenever his debtor was in straitened circumstances, he would say to

his employees, 'Forgive him so that Allah may forgive us.' So, Allah

forgave him."

4 Tafsir AlQurtubai, Dar Alkutub Al-Masriya 372/3. 5 Narrated by Muslim in His Sahih under Ref. 2301/4.

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Accordingly, the decision of the International Islamic Fiqh Academy

came at its twentieth session, which was held in Algeria No. 186

(1/20).

2- In the event that the supervisory and regulatory authorities, such as the

Central Banks, issue directives and instructions to the financial and

financing institutions regarding the handling of future obligations,

including: Postponing the payment of installments of individuals or

institutions, and these instructions did not differentiate between the

insolvency and the facilitation cases, then the rule of the judgment in

this case is the customer may submit a request to postpone payment

of his installments in accordance to said issued the instructions.

3-The affluent (unharmed) dealers must urgently pay their outstanding

obligations that was booked against them as receivables, so that they

should not fall under the category of prohibition stated by the Prophet

Mohammed (Peace Be Upon Him) in His Hadith that stipulates

“Delay in payment by a rich man is injustice, but when one of you is

referred for payment to a wealthy man, let him be referred.” 6.

Furthermore, it was also stated in another Hadith: “Delay in payment

on the part of one who possesses the means, makes it lawful to

dishonor and punish him.”7.

(B) - Ease Case:

In case the debtor was wealthy, but the pandemic caused him to lose

his financial ability to pay off the debts he owed, so the Sharia legal

ruling can deal with the following cases:

1- If the contract is only at the promise stage and before the execution

of the contract, the institution can freeze the transaction in the event

that the client requests so, and if the customer has paid a deposit or a

serious margin, then the institution should rather return it to the

customer, because the promise - even if binding - is not considered

as a contract, unlike “Mouwa’adah”, which is a mutually pledged

purchase deal that is binding on both parties, which is similar to the

6 Narrated by Bukhari 2194 and Muslim 2024. 7 Narrated by Bukhari, Abu Dawood 3628, Al-Nasa’i 7/316 and others, Al-Hafiz Ibne Hajar in is his book “Fath Al Bari” has rated this Hadith as good.

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contract itself, according to the Resolution of the International

Islamic Fiqh Academy No. 40 (2/5).

2- However, if the contract is concluded and the transaction premiums

become a debt owed by the customer due to the pandemic conditions

- as well as the instructions of the supervisory authorities - the

institution must postpone the payment of the instalments during the

period of the crisis until the pandemic ends to raise the damage from

the affected. As the postponement is without increase; Because

postponing with the increase of interest is like one of the forms of the

forbidden pre-Islamic period usury known as "wait longer time and

get more interest. The International Islamic Fiqh Academy, at its

Fifth Session, which was held in Kuwait, issued Resolution No. 158

(7/17) regarding the sale of debt, at its Seventeenth Session in

Amman, 2006, emphasized that: it would be considered as nullifying

debt with another debt is utterly forbidden as it increases the debt in

exchange for increase in the interest or making it as an excuse for

such end. "The same ruling was mentioned in the decision of the

Jurisprudence Council affiliated with the Muslim World League in

its Eighteenth Session held in 2006.

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The Second Topic

To Expedite and Delay Zakat from the Whole Year Duration

First: The basic principle is that there is no zakat on the money until the

year has passed for it to be transferred, but it is permissible to

expedite the payment of Zakat before the year passes if the money

reaches the quorum, so that Zakat contributes to alleviating the

effects of the pandemic by spending the Zakat money in its legitimate

and urgent aspects, particularly on the poor neighbourhoods that the

quarantine procedures forced to Staying at home, stop working, and

salary cuts. It is the opinion supported by majority of the scholars of

different schools of fiqh, and the fatwas of many Fatwa Circles in the

Islamic world because of the damage this pandemic has caused to

Islamic societies. The major opinion of that Hadith was narrated that

“Al-Abbas (May Allah Be Pleased with Him) asked the Messenger

of Allah (Peace Be Upon Him) to allow him to pay his Zakat before

its due date, and he gave him permission to do so.”8. Furthermore,

Ali narrated that :the Prophet Peace Be Upon Him said to Umar (May

Allah be Pleased With Him) : “We have taken this year's Zakat from

Al-Abbas in the previous year”9. ». The introduction of hastening in

such cases accomplishes the legitimate purpose of Zakat, which is to

bridge gap and help the poor, and by expediting the benefit to those

who are entitled to Zakat during the time of pandemic by serving the

necessary interest and fulfilling the urgent need of the poor.

Second: It is permissible to delay the payment of Zakat from its due time of

the year, if the Zakat payer does not have an amount in excess of his

original needs. This opinion supports the juristic trend that requires

Zakat to be complacent, not immediately, especially in light of

emergency conditions (force majeure) due to the effects of the

Corona pandemic and the restrictions imposed by the guardian on the

movement of money and the disposal of funds. And it is almost

concluded that the delay if it is needed Considering that it is

permissible to observe the valid excuses. It should be stressed in this

regard that Zakat is not the only door to goodness that meets the need

of the needy, but the true Sharia came to open the doors of

8 Narrated by this word Ibn Majah 1/572, it was classified as hassan by al-Albani 9 Narrated by At-Tirmidhi, it was classified as hassan by al-Albani

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benevolence, compassion, solidarity and sympathy in order to satisfy

the various needs - especially the urgent ones - and reduce the pitfalls.

Likewise, the importance of the application of Zakat in all Islamic

countries should be emphasized in compliance with the Almighty’s

Allah saying in Surah Tawbah verse No. 103:( Take, [O,

Muhammad], from their wealth a charity by which you purify them

and cause them increase, and invoke [Allah 's blessings] upon

them.).

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The Third Topic

Contracts, Supplies and Similar Contracts that are

Delay in Implementation.

First: Contracting Contracts, Supplies, and the Pandemic's Reality:

The Corona pandemic imposed conditions and conditions on which

many economic activities were disrupted, including: closing factories

and stores and stopping the export and import movement, which led to

a significant change in the conditions and circumstances that were not

taken into account by the contracting parties; The effect of that on the

balance of parity upon which the contracting parties based their

accounts, in terms of the rights granted to both parties.

Second: Sharia Ruling

Based on the above-mentioned report, it is permissible to consider

amending contractual rights and obligations, whether they are

contracting contracts or supply contracts or similarly inactive contracts,

in a manner that distributes the excess amount of loss to the contracting

parties. It is also permissible to the parties to the contract may terminate

it, in all contracts That were not executed, if the annulment was more

suitable for the undertaking or the obligee with a fair compensation for

the obligee, the owner of the right to implement, and forcing him a

reasonable aspect of the loss, which he inflicted upon the annulment of

the contract. It compels him a reasonable part of the loss, which he

inflicts upon the termination of the contract. This will be in amicable

reconciliation and understanding between the parties to the contract or

by resorting to arbitration or pleading before the judiciary, as guided by

what was stated in the decision of the International Islamic Fiqh

Academy at its Twenty-First Session held in Riyadh Resolution No. 200

(6/21) regarding the dispute in the takaful companies and its text: In the

event of a dispute, resort to conciliation and arbitration. If this is not

possible, the dispute shall be referred to the competent judicial

authorities.

This is confirmed by the Islamic World League’s Fiqh Council’s

Resolution No. 7 of the Fifth Session, confirming that inaction contracts

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(such as contracts for supply, tenders, and contracting) if the conditions

in which the contracting took place changed conditions, costs, and

prices, a major change, with general emergency reasons, which were not

expected at the time of contracting , So that the implementation of the

contractual obligation has caused the obligor to inflict severe losses -

from price fluctuations in trade methods - his was not the result of the

failure or negligence of the obligor to implement his obligations; In this

case, the judge has the right, at the time of the dispute, upon request - to

amend contractual rights and obligations, in a manner that distributes

the contractor's excess amount of loss to the contracting parties. And the

way to do so is the judiciary or the competent authorities empowered to

consider such crises and conditions.

Third: Sharia Documents

1. What the Prophet, (Peace Be Upon Him), emphasized with regard to

dealing with pandemics as previously explained.

2. Saying of the Prophet, Peace be Upon Him " There should be neither

harming nor reciprocating harm."10 He was considered one of the five

agreed upon major juristic rules, and it is a clear rule entirely in dealing

with damage and removing it.

3. The rule "hardship brings facilitation11" and its origin in the Holy

Quran. The scholars said: All the permits and the attenuations of Shari'a

emanating from this rule. It is known that the usual - like the usual loss

in trade fluctuations - has no effect on contracts - because it is of the

nature of trade and its unswerving fluctuations - but if it exceeds the

usual much, often with such emergency reasons, the rule is observed in

such cases.

4. There are many doctrinal similarities of the subject from the various

schools of Fiqh, which are familiarized with it, and it may be

recommended to benchmark it, including:

1- considered scholars emergency contracts, according to Malik

School of Fiqh sources from the realization of the new circumstances

in renting the land of rain was afforded from ploughing and then if

draught hits, then it will not be possible to ploughing the land thus

10 Narrated by this wording by Malik in Al-Muwatta 7/245 and Al-Bayhaqi in his book of Sunan 11/11/542 11 Reference Book is “Ashbah Al Nazair”

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there will be no rent for the land Lord.12 "When followers of School

of Fiqh of Ibne Hanbal: If fear of a public event, prevents From the

dwelling, the option of the annulment is proven to the tenant, because

a dominant matter precludes the tenant from paying the rent with

benefit, so they say the benefit13. As for the Hanafi School of Fiqh,

they say cancel the rent with emergency excuses14.

12 Vol. 3 Al Mudaowna / 535, TBidayt Al-Mujtahid, Vol. 2/231 13 Al Mughni by Ibn Qudama, 5 / 337-338, Sharh Al-Zarkashi, 2/182. 14 Bada'i Al-Sanayi ', by Kasani, 4/197.

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The Fourth Topic

Ijarah Contracts “Leasing”

First: Ijarah contracts fall into the lax or delayed implementation contract

group due to the fact that the benefit happens little by little. Because

of the emergency conditions and the effects of the pandemic, the

Ijarah contracts are greatly affected by these conditions due to their

multiple cases.

Second: The lease contracts in general shall apply to what has been

mentioned about the delayed implementation contracts, including the

legal documents it contains. Accordingly, the contract review by the

two parties or the contracting parties is carried out through

conciliation and amicable agreement, or through arbitration, or by

pleading with the judiciary.

Leasing contracts can be distinguished between the following cases:

1) The case of paying the deposit without signing the contract. In this

case, the landlord must return the deposit to the person who wants to

rent, with the loss of his right to hold the property for him, but the

landlord has the absolute right to lease to the person requesting the

property.

2) If the tenant spent the contract but did not fulfil the benefit because

he was unable to do so during the pandemic period or after it for a

long time, the ruling is to terminate the contract with an emergency

excuse - which is related to the effects of the crisis - at the request of

the tenant, in which case the rent is returned to the tenant in full, and

the tenant bears the actual fees and expenses for the contract. But if

the inability to use is temporary, there is no need to terminate the

contract, but rather the wage instalments will fall during that period.

3) If the tenancy contract is concluded and the lessee starts to fulfil the

benefit and the pandemic conditions affect his inability to fulfil the

remainder of the period, the tenant may request annulment only in

the remaining periods of the contract, which the tenant has not

fulfilled its benefit, in which case the lessor reimburses the remaining

fare instalments from the contract. But if the tenant’s excuse is for a

temporary period (the pandemic period), the contract will not be

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annulled, but the rental instalments will be forfeited during that

period.

4. If the lessee meets the benefit without paying its instalments and

becomes debt owed, then it is treated like the debt instalments that

were dealt with in the future obligations.

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The Fifth Topic

Hotel Reservations, Aviation, Transportation,

Shipping & Freight Services and Special Education.

First: Hotel Reservations, Aviation, Transportation, Shipping and Freight

Services

1) Initial reservations that contain mere non-binding promises without the

parties in them having moved to the stage of commitment or signing

contracts, considering the pandemic conditions the two parties have the

right to revoke their promises. If one of the two parties incurred actual

expenses, they could agree to share it between the two parties, or the one

who would have benefited from the service may bear it, because it was

spent in his favor.

2) If the emergency was (temporary conditions), reconciliation can be

resorted to, by postponing the service until after the effects of the

pandemic have disappeared, and there is no need to cancel the contract

between the two parties, and to ensure access to the service, the

beneficiary (the tenant for the service) may demand “Vouchers” for the

value of the amount paid and entitled to and he shall have the right to

obtain the service whenever the crisis ends.

3) If the emergency conditions are long and its duration cannot be estimated,

and due to the emergency circumstance the applicant was not able to

benefit from it in order to close hotels and stop airports, air traffic and

transportation, in this case the party requesting the service is entitled to

relinquish any obligations towards the leasing company due to the lack of

Its ability to obtain the contracted benefit, and recover what it paid, and

the aggrieved party searches for compensation, rightly, or through

insurance companies, the government, or any other relevant legal bodies.

In the event that the contracting party pays the advance payment or a

down payment, he has the right to recover it within the period that allows

the company to provide the required amount in light of the new

circumstances on the leasing company, but it remains a right for the

leasing company providing the service, and in the event of the bankruptcy

of the company, the laws in force in bankruptcy cases apply. This does

not apply to what was stated in the decision of the Islamic Fiqh Academy

at its Session held in Brunei Darussalam, Resolution No. 72 (8/3)

regarding the sale of deposit, (2) which stipulated that the deposit: “The

seller has the right if the buyer changes his desire to purchase.” "Because

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the decision applies in the event that the choice is made by the buyer

canceling the contract willingly without a necessity to resort to, other than

the circumstances of this crisis."

4) In the event that the applicant partially benefits from the service without

the full service as his use of part of the ticket, then his right is preserved

while he was not used to obtain compensation or postponement until the

end of the crisis and obtaining a guarantee from the service provider

accordingly. Also applies to this issue what the Scholars mentioned in the

dispersal of the deal is divided on the issue by dispersing what he bought

in one contract.

5) In the event that the requested service is full benefited from the applicant

without paying the price until the pandemic occurred, since he has taken

full advantage of the service, if he is able to pay the whole or some of the

price, he must do so. If this is not possible due to the circumstances of the

crisis, the price becomes a future obligation (debt) in its liability and is

covered by what was presented in the future obligations.

Second: Special Education

The pandemic occurred in the middle of a semester or a school term, which led

to the closure of schools and the inability of students to go and attend classes -

as usual - to complete the study due to the precautionary measures imposed by

the governments. The following cases can be reviewed:

1) If the education service is fully utilized and the fees are paid, then it is the

institution’s right in return for the service it provided, but if it is unpaid or

premiums from it, the beneficiaries must initiate the payment of those

entitled to them, and the beneficiaries have an understanding with the

educational institution to reduce the fees if the quality of the service is less,

and they have To file their grievance with that to the competent authorities

to redress their harm.

2) The education services obligations remain in place for the nature of

continuity in the event that it is postponed to another time or the academic

year has been cancelled, then the commitment is carried over to the new

school year, and if the study fees have been paid then it is a debt in the

custody of the institution or is reconciled to it, and with all of that the

parties are not entitled to Claiming any compensation due to the

occurrence of this because of force majeure, and the aggrieved party can

resort to the competent authorities to file damage from it.

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The Sixth Topic

Services Charges such as Electricity, Water and

Communications

These services are adjusted based on the contract of sale or operating lease or

described in the liability. If the service, commodity, or benefit was consumed

by the consumer, then it remains a debt in his possession in terms of the

original, and it remains an obligation on the part of the consumer payable to

the company, and the company has the right to the corresponding fees, and in

this case it has - and according to its will - free to resort to some or all of the

following options:

First: Postponing the Payment of Fees according to an Agreement with the

Service Provider Company and the Consumers.

The company providing the service may postpone the payment of fees for basic

services for a certain period, especially if the company is governmental because

the state is responsible for its citizens, especially in cases of pandemics and

disasters, and in particular in securing basic services such as water, electricity

and means of communication. The company - whether private or governmental

- may forfeit its right as a matter of social responsibility.

Second: Resorting to Financing Production Operations from Banks and

Financial Institutions.

This is directed to private companies that provide these basic services and take

financing to continue producing the service at the time of the pandemic to cover

the fees for those services for a specified period, and the government will be a

guarantor, or the government will pay the cost of financing, provided that the

consumer is obliged to pay the actual fees for the services when the causes of

the pandemic increase. The government can take over the financing of these

companies or guarantee that consumers will be reimbursed at a later period if

the company accepts it.

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The Seventh Topic

Work Contracts under the Pandemic and Dealing

with its Effects

First: Financial and commercial institutions and companies in the government

and private sectors were affected by the economic conditions imposed by the

crisis and affected the obligations of institutions and bodies towards their

workers, which led to the demobilization of a number of them and the lower

wages of the other number during the period of the crisis. In general, the labour

laws and social security laws in each country should be taken into consideration

in dealing with the effects of this pandemic, as it includes the treatments in this

section.

Second: The provisions relating to the pandemic shall apply from the time the

pandemic is entered. The previous obligations prior to the pandemic time shall

not be affected by the pandemic, and they will remain and relate to the

responsibility of each party and it must be honoured and fulfilled by them.

Third: The worker or employee deserves his full wages for the period prior to

the pandemic if he leaves work as a result of a force majeure beyond his

control, such as stopping the work of the establishment or going bankrupt.

Fourth: If the circumstances in which the contracting took place changed,

changed the conditions, costs, and prices, and the implementation of the

contractual commitment became inflicted on the obligor, severe unusual losses,

then the judge or the competent government authority has the right to amend

the contractual rights and obligations, terminate the contract, or delay the

obligor if he finds that the emergency cause is viable at a time He is short and

the obligee is not harmed so much by this delay.

Fifth: The priority is to have a friendly understanding between the parties and

to observe the principles of goodwill between the parties to the contract, if no

result is reached, then it may be more appropriate to apply to the judiciary to

obtain a ruling that removes the damage from the contracting party, whether it

is a termination of the contract, a delay of its implementation, or Other than

that.

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Sixth: It is not permissible for any party to act alone without the other party

knowing that it affects the contract of employment to terminate or reduce the

fare, and the affected party may go to the competent authorities or the judiciary

to consider the case and study the contract, its duration, and the impact of this

epidemic on it, so that justice can be achieved for the parties to the contract,

and he may see the Judiciary is that it is fair not to give the parties the right to

annulment, especially in long-term contracts, because this may open a door for

circumvention, which is not approved by Sharia, so raising the impact of the

pandemic will be sufficient to remove the damage from the party affected by

the contract, Thus, when the damage could be minimized, with minimal impact

on the contract’s coming into force and effect, this was first. The judiciary may

consider that it is appropriate to grant every victim of this pandemic the right

to remove the harm for him by mitigating the contractual obligations according

to the harm caused to him in exchange for this pandemic.

Seventh: The legal document of the aforementioned, the overall juristic rules

that stipulate the removal of the harm, such as: (There should be neither

harming (darar) nor reciprocating harm (dirar) and (the damage shall be

removed), as well as the rules of necessity, including (necessity is estimated at

its value).

Eighth: The amicable understanding between the employer and the employee

can be assessed on the calculation of the suspension period from the employee's

leave or leave without pay and the like, instead of disposing from one party and

resorting to the courts.

Ninth: Those with free professions whose work has ceased due to the

pandemic's circumstances must submit to the competent authorities to deal

with their situation, with the solutions they deem necessary to preserve their

dignity and provide them with decent livelihoods for them and those who

depend on them.

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The Eights Topic

To Take Advantage of the Set Aside Funds in Islamic

Financial Institutions and Companies.

First: The funds set aside in a Special Fund in Islamic Financial Institutions

and Companies represent the benefits that the corporation obtains from

compulsory transactions that it resorted to with Traditional Banks15, as well as

what it gets from its customers, such as the amount that the customer is obliged

to donate in the event of his failure to pay installments , Or profits from some

transactions that the bank’s Sharia Board decided to nullify and forfeit its

profits.

Second: The Sharia’s duty is to dispose of the set aside funds and spend them

immediately in the public interest, including the creation of a separate account

that is separate from its accounts of the bank for the set aside funds and that

supervises it and disburses it from the Sharia Board in accordance with the

regulations and regulations approved by the Sharia Board.

Third: It is permissible to spend from the accounts set aside on the affected

segments of society, such as: owners of small projects, or spending on the

purposes of public benefit that benefit the community, especially those affected

by the crisis, and contribute to addressing its effects, which is the original bank

of this fund as in the decision of the International Islamic Fiqh Academy In its

Third Session, which was held in Amman in the Hashemite Kingdom of

Jordan, Resolution No. 13 (1/3) Paragraph (e) "These interest benefits must be

spent for public benefit purposes such as training, research, providing relief

means, and providing financial assistance to member states, provide technical

assistance to it, as well as to scientific institutions, institutes, schools and

related to the spread of Islamic knowledge.”. As well as the Academy’s

decision in its Nineteenth Session held in the Emirate of Sharjah in the United

Arab Emirates, Resolution No. 181 (7/19) regarding the suspension of shares

and Sukuks and what was stated in some explanations. The rulings stipulated:

“Because these revenues and money are paid out to the poor and needy and the

public interest aspects when they cannot return them to their owners.”.

15 The bank purges it by issuing it for a special account to dispose of it according to what is stipulated in the fatwas and standards in this regard

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Fourth: When the set aside funds cannot be disbursed - in a special fund for

disposal - for legal or legal justifications and a balance remains at the end of

the year, it may be invested in legitimate ways and the profit will be in the

interest of this fund, and it will be disbursed to the benefit of the vulnerable

and poor groups as previously explained. The decisions of the Eighteenth Al-

Barakah Symposium No. 5/81 stipulated: “If it is not possible to promptly

expel the illicit gain, then there is no objection in the delay period to investing

it in legitimate ways that are risky and easy to liquidate, provided that the asset

and its return are for the righteous aspects.”.

Fifth: In light of emergency circumstances such as what happened in the

Coronavirus crisis and its effects on the economies of countries, institutions

and companies, the financial institution and companies can borrow a good loan

from the Fund to get rid of the set aside funds if they are forced to do so to face

the damage they have suffered. The Foundation returns the amount in one or

two stages, when the crisis eases, and the Foundation returns to normal

situation.

Sixth: It is not permissible to exchange money set aside for some of the social

services provided by the institution to its employees, which fall within the

contract that regulates the relationship between the employee and the bank;

Because it is the direct responsibility of the bank.

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The Eights Topic

Ninth: The Difficulty in Recovering of the Sukuk

(Islamic Bonds).

First: Foreword:

Coronavirus's pandemic conditions may lead to the inability of the

originator of the sukuk to recover, if the requirements of ease are fulfilled

legally, whether the insolvency is required to ease or to alleviate all or some

of the exhausting obligation that the originator struggles to fulfil at its due

time, due to the general economic stagnation and the losses left by the

pandemic on companies and investment projects.

The effects of the pandemic on the issuance and recovery of sukuk will be

addressed based on the overall principles, rules and purposes of the Sharia

as it is in actual practice and the terms of its structure in the prospectus and

its clauses and not as depicted in the scientific theorization of these sukuk.

Second: Types of Sukuk under the Crisis Conditions:

(A) Regular Sukuk: The originator of these Sukuk obtains financing, the

purpose of which does not extend to strengthening its capital base, is

credit-rated, and is included in the global financial markets, which is

most of the Sukuk industry.

1) Based on the structure of these Sukuk, the capital and profit shall be

proven in the custodian of the originator since its issuance, regardless

of its type, Musharaka or Mudaraba, Ijarah or authorization.

2) The sukuk holders right to capital and profit does not depend on the

sukuk assets; Because the sukuk holders are not entitled to return to

the assets or dispose of them even if collectively, except by selling

them to the originator according to the purchase pledge issued by

him.

3) The undertaking to purchase from the originator obliges him to

guarantee the payment of the capital and what he did not pay from

the profits even if the undertaking cannot be executed for any reason.

4) In the event that the legal obligation if fulfilled that the holders of

the sukuk shall to ease for the originator in recovery of the sukuk and

obtaining the profits in implementation of his pledge due to the

pandemic conditions and its effects, this would affect this

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commitment and the two parties have to amicably or through court

should eliminate the harm from the aggrieved party. As for the

conduct of the sukuk holders with the assets and their liquidating to

others to mitigate the harm that may be caused to them, this is not

theirs and they have no way to do so according to the structure

established for the sukuk.

(B) Capital Sukuk (capital enhancement Sukuk): They are of two types:

1) Tier 1 Capital Sukuk

(I) Emphasis on what was stated in the Al-Barakah 39th Symposium

regarding Sukuk of the First Tier of the capital in terms of definition

and Sharia Compliance and its Images and Provisions.

(II) Based on what is stated in the Al Barakah Symposium regarding the

legal provisions of these Sukuk, the originator has space to postpone

the recovery of these Sukuk during the pandemic period, if it is found

that their paying off is more tiring for him than continuing with them.

(III) According to the regulations of these Sukuk, in the event that the

financial solvency of the entity deteriorates and it reaches what is

known as “the Point of Non Viability”, then these Sukuk can be

converted into shares, which bypasses the failure to recover the

Sukuk.

2) Tier 2 Capital Sukuk

What is mentioned in the regular Sukuk applies to these Sukuk, because

the Sukuk holders' right relates to the obligation of the originator.

(C) Securitization Sukuk (Securitization of Assets):

(1) Confirmation of what was stated in the resolution of the International

Islamic Fiqh Academy at its Nineteenth Session in the Emirate of Sharjah

in the United Arab Emirates Resolution No. 178 (4/19) regarding Islamic

Sukuk (securitization) and their contemporary applications and

circulation.

(2) These sukuk are issued on assets sold by the originator to the sukuk holders,

and the sale is real and legally recognized, and the originator removes the

assets sold from its budget, and it does not have effective control over the

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assets of the sukuk, and the rights of the holders of the sukuk in this case

are related to the assets themselves and their risks to them.

(3) These Sukuk do not arrange an obligation (debt) for the originator after he

sold the assets from them, so they do not demand his consideration. The

consideration shall be in the event that its legal obligations are fulfilled by

those whose liabilities relate to their debts from their tenants if they are

leased assets.

(4) If the sukuk holders deem the disposal of the sukuk for any reason, they

can sell and liquidate it, and it is in their hands according to the conditions

of issuance, and they are the ones who evaluate the feasibility of this under

the current pandemic conditions.

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General Recommendations

After presenting the research and listening to the discussions and

proposals, the participants in the symposium recommend the following:

First: Inviting universities, research centres and institutes to collaborate

with IQRA Waqf for Development and Employment, in preparing

economic theoretical and practical field studies dealing with the

following:

1. Lessons learned from the Coronavirus COVID -19 pandemic from the

point of view of Islamic Economics.

2. Study wage systems and submit proposals for their development

through the prevailing laws that regulate labour contracts.

3. Building a new investment system according to innovative priorities

that consider the purposes and implications from the perspectives of

the Sharia.

4. Prepare a historical study on the pandemics that have ravaged the

Islamic state since the era of the Rightly Guided Caliphate, and the

benefit from those lessons and methods of treatment.

Second: Inviting the supreme judicial authorities in Islamic countries to lay

down the rules, regulations and judicial principles in a Protocol to

address the effects of the obligations and contracts that individuals

and institutions make for the pandemics and crises.

Third: Inviting universities and research institutes and IQRA Waqf for

Development and Employment to launch innovative initiatives to face

the future effects of the Coronavirus COVID -19 pandemic, such as:

• Innovative tools to activate the charitable sector, especially the Zakat

and Awqaf “Endowment” institutions, in the face of the effects of the

crisis.

• Take advantage of financial technology and integrate it into pandemic

impacts projects.

• Creating new financial products for projects geared to reduce the

effects of the pandemic.

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Fourth: To urge everyone to do benevolence and do good and bridge the

need of those in need with the possible, because solidarity and

sympathy are a great original principles, the need for them being

confirmed in times of crisis. On the authority of Abu Musa Al-Ash'ari

(May Allah be Pleased with him), said that the Messenger of Allah,

(Peace Be Upon Him), said, "When the people of Ash`ari tribe ran

short of food during the holy battles, or the food of their families in

Medina ran short, they would collect all their remaining food in one

sheet and then distribute it among themselves equally by measuring it

with a bowl. So, these people are from me, and I am from them.",

Narrated by Bukhari (2485) and Muslim (2500).

Fifth: The importance of working to highlight the advantages of Islam in

its legislative aspects that suit different circumstances and conditions,

through its overall governing rules, and its detailed provisions, and

practical examples - related to this crisis - provisions for pandemics,

rules for lifting harm and rules of facilitation, this in addition to the

great Prophetic instructions related to medication and observe the

health precautions, prevention of epidemics, eating good things and

avoiding malice, in addition to the necessity to maintain enduring

cleanness practices throughout the day and night.

and All Praise Be to Allah the Lord of the Worlds .