Tawarruq financing is a concoction designed to give Shariah-observant businesses access to modern, mainstream financing.
The apparent inherent contradiction got Tawarruq declared deceptive, with elements of interest prohibited under Shariah by the International Council of Fiqh Academy in Saudi Arabia.
Now, a prominent Shariah scholar, who sits on no less than 46 Shariah advisory boards, has contradicted that ruling.
What will the outcome be? Follow the money…