Composite Islamic contracts in modern complex islamic bank finance

Composite Islamic contracts are permissible, but there are several aspects in terms of validity, objectives of Shari'ah, ma$laha (public interest), limitations and prohibitions that must be observed for the contract to be valid. Although there are numerous risks in terms of financial engineering and derivatives such as hedging, money exchange, tawarruq transactions, $ukuk, tahawwut master agreements (TMAs) and accounting treatment, the positives outweigh the negatives. This paper proposes that composite Islamic contracts could be an alternative for modern Shari'ah compliant complex financing.