\ The Level of Compliance of Jumhouria Bank with Islamic Investment Standards (The Murabaha to the Purchase Order Model as a Case Study)

Abstract

This study aimed to measure the level of compliance by Jumhouria Bank with the standards and parameters of Islamic investment regarding the *Murabaha* (cost-plus financing) mode—specifically *Murabaha* to the purchase orderer—through a field study conducted at the bank. The study focused on three key dimensions: Sharia-compliant controls and standards; technical and economic controls and parameters; and administrative controls and parameters. A descriptive-analytical approach was adopted, utilizing a questionnaire as the primary data collection tool. The sample consisted of 56 employees working in the field of Islamic banking, drawn from a total study population of 60 individuals. Data analysis involved the use of arithmetic means, standard deviations, relative weights, and significance tests for means. The results indicated a high overall level of compliance by Jumhouria Bank with the relevant Islamic investment standards and parameters; the general arithmetic mean was 3.79, with a relative weight of 75.86%. Administrative controls and parameters ranked first, followed by technical and economic controls, and finally Sharia-compliant controls and standards. Although the level of Sharia compliance was high, it ranked relatively last among the three dimensions, suggesting areas requiring further support—particularly regarding the actual ownership of the asset and taking possession of the goods prior to resale. The study recommended strengthening Sharia supervision, enhancing internal audit mechanisms, providing staff training, and prioritizing disclosure and strict practical adherence to the operational stages of *Murabaha* transactions. Keywords: Jumhouria Bank, Islamic investment, Murabaha to the purchase orderer, AAOIFI standards, Sharia guidelines, technical and economic guidelines, administrative guidelines, Islamic banking.