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Evaluation and Ranking of Islamic Banking Contracts for Rental Deposit Financing Using a Fuzzy Multi-Criteria Decision-Making Approach
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Hossein Seilsepoor *1   , Mohammad javad Mohagahnia2 , Davoud Razaghi3 |
1- Department of Finance and Banking, Faculty of Management and Accounting Allameh Tabataba'i University , h_seilsepour@atu.ac.ir
2- Department of Finance and Banking, Faculty of Management and Accounting, Allameh Tabataba'i University
3- Department of Accounting, Tehran University, Kish International Campus, Tehran, Iran |
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Abstract: (3 Views) |
Selecting the most appropriate Islamic financial contracts within the banking system—particularly for facilities such as housing security deposits—requires an integrated approach that simultaneously accounts for jurisprudential, economic, and operational considerations. This study aims to identify and prioritize the criteria for evaluating banking contracts, and to rank these contracts based on field evidence using a mixed qualitative–quantitative methodology. In the first phase, through a systematic review of jurisprudential and banking sources, analysis of international official documents, and semi-structured interviews with 18 experts, six key criteria were identified: Sharia compliance, economic efficiency and profitability, operational and legal risk, ease of implementation, contractual flexibility, and liquidity management. In the quantitative phase, the criteria weights were determined using the Best–Worst Method (BWM), and seven selected contracts—including Musharakah, Ja’alah, Murabaha, Ijarah Muntahia Bittamleek, Istisna, Qard al-Hasan, and Mudarabah—were ranked using the Fuzzy ARAS technique based on the opinions of 30 experts. The results indicated that Sharia compliance (0.287) and economic efficiency (0.211) were the most significant criteria, whereas liquidity management (0.071) held the least importance. Accordingly, Musharakah achieved the highest overall rank, followed by Ja’alah and Murabaha, while Qard al-Hasan and Mudarabah obtained the lowest rankings. These findings underscore the need to balance jurisprudential requirements, economic performance, and operational considerations when selecting banking contracts, and can serve as a foundation for revising credit policies and developing innovative Islamic banking products in the housing sector.
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Article number: 7 |
| Keywords: Islamic banking, Islamic contracts, Best–Worst Method, Fuzzy ARAS, housing rental deposit financing |
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Full-Text [PDF 735 kb]
(1 Downloads)
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Article type: Research |
Subject:
Special
Received: 2025/10/1 | Accepted: 2025/12/30 | Published: 2026/08/23
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