@article{article_1847260, title={SHARI’AH ISSUES IN SINGLE-STOCK FUTURES CONTRACTS AND THEIR REGULATORY RESOLUTIONS: LESSONS FROM THE MALAYSIAN MODEL}, journal={IJASOS- International E-journal of Advances in Social Sciences}, pages={31–44}, year={2026}, DOI={10.5281/zenodo.18021059}, url={https://izlik.org/JA46EX79XP}, author={Alotibi, Mohammed Turki S. and Sadique, Muhhamad Abdurrahman and Binti Ibrahim, Uzaimah}, keywords={Futures contracts, gharar, Islamic financial derivatives, Malaysian experience}, abstract={This article aims to identify the Sharia-related issues associated with single-stock futures contracts and to explain how the Malaysian experience has addressed these issues within the framework of Islamic finance. Conventional futures contracts are among the most widely traded financial instruments in global markets; however, they are based on deferred obligations, rely on price differentials, and are often cash-settled without actual ownership of the underlying assets. Such features have raised several Sharia concerns, the most prominent of which are: excessive gharar resulting from the absence of ownership and possession at the time of contracting; maysir, as profits may depend on pure speculation; selling what one does not own; the disconnection of the contract from the underlying asset in some conventional structures; and the elevated level of risk linked to leverage and margin calls. The Malaysian experience has presented a practical model that effectively addresses these concerns through restructuring futures contracts in accordance with the Sharia standards adopted by the Sharia Advisory Council. The most important mechanisms include ensuring the presence of a real underlying stock, imposing higher margin requirements to control risk, employing actual (or functionally equivalent) settlement through the clearinghouse to safeguard rights, applying daily price limits to reduce excessive volatility, restricting speculative use of the contracts, and emphasizing hedging and risk management within permissible Sharia boundaries. The study concludes that the Malaysian model offers a valuable example that can be utilized in developing Sharia-compliant futures contracts in financial markets such as the Saudi Stock Exchange (Tadawul).}, number={33}