BERA, Feb 12 (Bernama) -- The drafting of an Islamic hire purchase bill is in the final stage, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said today.

He said the draft is being prepared by having considered the views of Islamic economists, university lecturers and Muslim consumer association leaders and having looked at similar Islamic laws in other countries.

"The new act will be known as the Islamic Hire Purchase Act to differentiate the characteristics of Islamic hire purchase and the conventional hire purchase system.

"It is also necessary to avoid confusion on legal aspects when a problem arises between financial institutions and consumers," he told reporters after launching a Haj course for the Bera district at the Darulfikri Mosque near here.

He said the ministry will also introduce an act for Islamic pawnbroking, known as the Islamic PawnBrokers Act or Ar-Rahnu.

"Ar-Rahnu does not have its own act yet and still uses and is based on conventional pawnbroking regulations," he added.