Al Qasimia University Journal of Islamic Economics
Al Qasimia University Journal of Islamic Economics is an international bilingual (Arabic and English) peer-reviewed journal, published twice yearly (in June and December), by Al Qasimia University. The Journal publishes articles based on original theoretical or empirical research, book reviews and reports on conferences and seminars, concerning Islamic economics.
Activating the Tool of Scientific Debate in Assessing the Shariah and Legal Risks of the Smart Financial Product
This study aims to explore how the debate method can be utilized to develop and test smart financial products. The research reveals that this approach can enhance the quality and effectiveness of innovative financial products by providing multidimensional evaluations and using debates in financial technology labs as an opportunity to gather diverse expert opinions. This process enriches the comprehensive understanding of the product, facilitates informed decision-making, and contributes to increasing transparency and credibility around financial technology products. This, in turn, boosts investor and customer confidence and enhances market acceptance. The study includes an introduction to the concepts of scientific debate and financial technologies, examines models in legislative experimental environments, and applies the scientific debate method to test smart financial products. It addresses the preparation phase for scientific debates, methods of conducting scientific debates, and arbitration at the end of the debate in legislative experimental labs. The findings indicate that scientific debates are a crucial component of legal heritage that significantly advanced legal scholarship in previous centuries. They also contribute to enhancing the current generation’s ability to develop logic and creativity. Furthermore, the study highlights the potential of applying the scientific debate tool in legislative experimental environments to mitigate legal and Sharia risks by providing comprehensive discussions aimed at advancing smart financial products. The study recommends further research on the application of scientific debates in developing financial products, identifying best practices, and leveraging skills embedded in Islamic legal heritage.
Copyright (c) 2025 Al Qasimia University Journal of Islamic Economics
Navigating Currency Crises: How Developed Nations Ensure Liquidity and What Indonesia Can Learn? The Role of Islamic Finance
This study critically examines the dynamics of currency liquidity across developed economies during the 2001 and 2009 financial crises and the COVID-19 pandemic, assessing the efficacy of policy responses in mitigating economic disruptions. By employing Welch’s unequal variance t-test, Variable Lag Granger Causality (VLGC), Variable Lag Transfer Entropy (VLTE), and time-frequency coherence analysis, we uncover significant disparities in liquidity conditions, revealing that currency liquidity during the COVID-19 crisis surpassed that of prior financial crises. Our findings further expose nonlinear causal relationships between monetary policy indices and currency liquidity, with short-term COVID-19 effects exerting a more pronounced influence than long-term impacts. Beyond diagnostic analysis, this study challenges conventional crisis response frameworks by introducing Islamic finance as a viable policy alternative for emerging economies, particularly Indonesia. We argue that Islamic financial mechanisms—rooted in risk-sharing and asset-backed principles—can enhance aggregate demand and stabilize exchange rates during systemic shocks. As the first comparative analysis of exchange rate behavior across health and financial crises involving the USD, GBP, and JPY, this research fills a critical gap in the literature while offering actionable policy prescriptions for ASEAN economies. Our results compel a reevaluation of crisis management blueprints, emphasizing the need for adaptive monetary strategies and the underutilized potential of Islamic finance in fostering economic resilience. This study not only advances theoretical discourse but also provides policymakers with empirically grounded strategies to fortify financial systems against future disruptions.
A Vision of Riba from the Perspective of Secular Science: An Evidence from Russia
Nowadays, signing a credit contract is something absolutely trivial, something we do on a daily basis. The fact that certain world religions have outlawed credit (lending money at interest) has no effect on the global positive perception of credit transactions by the public at large. In the Islamic finance industry, the prohibition of lending money at interest is one of the key bans. The great bulk of Russian publications on this subject offer only a theological justification of this prohibition, without giving any secular/scientific substantiation of the prohibition of lending money at interest or, perhaps, on the contrary, of its permissibility. While Russia is willfully heading for establishing an Islamic finance industry, the issue of the secular justification of the inapplicability of credit relations becomes a crucial element of the process. This paper proves the invalidity of credit relations, both through the prism of “sale of money” and of “lease of money”. The paper analyzes the ratio of 1) the benefits from exploiting such invalid (incorrect) relations to 2) the losses from their exploitation. Also, the paper proposes a new format of working capital financing, namely, through the issuance of Islamic promissory notes.
Riba, Credit, Credit relations, Credit criticism, Islamic bond, Mudarabah, Sukuk, Musharakah.
Do Sharı’ah Supervisory Board Members' Characteristics Matter? Unveiling the Impact on CSR Disclosure in GCC Countries and Malaysia
This study uses empirical research to examine the impact of Shari’ah Supervisory board (SSB) characteristics on CSR disclosures of Islamic banks (IBs) in GCC countries and Malaysia. It sheds light on the differences that may exist between IBs within and across regions. The study uses 36 CSR indicators as derived from AAOIFI standard number seven for Islamic financial institutions (IFIs). Ordinary least squares linear multiple regression has been employed to investigate the relationship between SSB characteristics on CSR disclosures in IBs. The results of the study indicate a positive and significant link between CSR disclosure and some SSB characteristics such as the larger board size, number of scholars with doctoral qualifications in Shari’ah/fiqh and SSB members’ Shari’ah background. Moreover, an ANOVA comparison between Islamic banks in the GCC and Malaysia shows no significant difference in CSR disclosure levels between the two regions. An intraregional difference in disclosure levels among IBs in the GCC has been observed. The findings of this study are beneficial to national regulators, international policymakers and standard-setting bodies in order to improve CSR disclosure among IBs. Suggested improvements include developing uniform discursive and reporting practices, regulating characteristics of SSBs such as board size; also considering directors’ academic background or working experience.
CSR disclosure, AAOIFI, Shari’ah supervisory board.
The Legal Problem of the Term Intelligent Agent and the Legal Personality of the Robot
This research examines the outcomes of advancements in artificial intelligence technologies and self-executing smart contracts, highlighting the emergence of the term "smart agent" from their programming and business applications due to similarities between robots and agents in contractual engagements. This similarity arises without full recognition of the associated legal implications and dimensions. The study clarifies that legal agency requires legal personality and capacity, attributes inherently absent in objects according to scholars of jurisprudence and law. Objects, including AI systems, lack the personality and legal capacity necessary to serve as agents legally. However, the public interest dictates recognizing the validity of such contracts. Thus, the study explores various legal trends, each aiming to validate these contracts in alignment with general legal principles yet differing in their approaches. Some consider these programs merely tools for transmitting human intention, maintaining that contracts are formed solely through the parties' intentions, despite the intelligence, decision-making capabilities, self-execution, and experiential learning these systems demonstrate through interaction with their environments. According to this view, user intention remains central. Others argue that the actions performed by these systems do not constitute a valid contract formation, disputing the legitimacy of the term "smart contracts," and viewing their role as strictly executional rather than contractual, with no legal barriers to automated contract execution. A third perspective proposes granting robots legal personality, sparking substantial jurisprudential debate, with proponents and opponents presenting various arguments. The study assesses these debates, concluding that granting legal personality could generate more complications than solutions, necessitating further maturation and research. The study ultimately recommends focusing research efforts on protecting users of AI technologies, given widespread agreement on the validity of these contracts and emphasizing the critical importance of addressing contractual liability arising from such contracts.
Legal personality of the intelligent agent
Predicting Intention to Pursue Islamic Financial Planner (IFP) Professional Certificate Among Islamic Business School Graduates
This research examine the intention of the students at the Islamic Business School (IBS), Universiti Utara Malaysia (UUM) to pursue the Islamic Financial Planner (IFP) Professional Certification programme. A mixed-methods approach, incorporating both quantitative and qualitative were used to achieved the research objective. A Google Forms questionnaire was distributed to 350 undergraduate students, but 149 responses returned and valid for analysis. The data were analysed using the Statistical Package for Social Sciences (SPSS). Additionally, focus group discussion (FGD) was conducted with four IBS students who had completed their IFP certificate. The findings identified four significant factors, i.e., interest, self-confidence, career, and promotion, as contributing to the IBS students’ intention to pursue the IFP Certification programme. Results of the FGD suggest that the IFP Certificate is not an important requirement for IBS students, especially when they have no intentions to pursue their careers as financial planners. However, the IFP Certification programme provides added value to IBS students as they are exposed to various kinds of knowledge related to financial planning which is beneficial for them. These findings are important as perceptions of and attitudes to the IFP Certification programme can have a significant impact on the success and continuity of the industry collaboration between IBS and the Islamic Banking and Finance Institute Malaysia (IBFIM) in providing IFP Certification training to students and industry players.
Islamic Financial Planning (IFP), Professional Certificate, Undergraduate, Perception, Islamic Banking and Finance, Quantitative Study, Qualitative Study.
Copyright (c) 2024 Al Qasimia University Journal of Islamic Economics
Accountability, Transparency, and Islamic Good Corporate Governance (IGCG) on Muzakki Trust in Indonesia
This study aims to analyze the effect of accountability, transparency, and Islamic good corporate governance on muzakki trust in LAZISMU Cirebon Regency. The potential for collecting zakat in zakat institutions is currently still not optimal, because there are still many people who choose to pay zakat independently. This is also due to the absence of full trust in amil zakat institutions by the community, especially among muzakki. In the management of zakat, financial statements should meet the requirements or principles of good governance which include transparency, accountability, responsibility, and independence. According to Law No. 23 of 2011 article 02 that zakat management must adhere to Islamic law, such as trustworthiness, expediency, justice, legal clarity, honesty, and responsibility. Accountability and transparency are important components in good corporate governance that play a role in fostering trust among muzakki towards zakat management institutions. Islamic Good Corporate Governance is a management system that prioritizes spiritual accountability and combines the basic principles of morality, reliability, transparency, responsibility, and accountability, which are seen as substantial benchmarks for the pleasure of Allah (s.w.t.). This research uses quantitative methods. The types of data used are primary data and secondary data. Primary data comes from questionnaires distributed via google-form to muzakki totaling 78 respondents who are muzakki LAZISMU Cirebon Regency, while secondary data from the results of literature review relevant to this research. The data analysis techniques used are research instrument test, classical assumption test, multiple linear regression analysis test, determination coefficient test, and hypothesis testing. The results showed that transparency and Islamic good corporate governance had a significant effect on muzakki trust, while accountability had no effect on muzakki trust. This can occur because muzakki already fully trust LAZISMU Cirebon Regency in managing zakat funds effectively, so they focus more on other aspects such as the effectiveness of programs organized by LAZISMU Cirebon Regency.
Accountability, Transparency, Islamic Good Corporate Governance, Muzakki trust.
Integrating Islamic Social Finance Institutions into Health Protection Programs: Cases of Selected OIC Countries
The principles and values of Islam, as a comprehensive rule of life, address every facet of human existence, including the social, spiritual, political, legal, health, and economic spheres. The purpose of the present study is to integrate Islamic social finance institutions like zakat, waqf, sadaqat, and baitul-maal into national social health protection programs. In the context of economically challenged Muslim nations, where financing and resource constraints are common, this study uses a library research methodology to examine how institutions like zakat, waqf, sadaqat, and baitul-maal can enhance government initiatives to address healthcare financing difficulties. The findings reveal that waqf-based models are the most employed in health protection programs, followed by zakat-funded initiatives. However, the use of these institutions for public healthcare services faces many challenges and obstacles, including bureaucratic inefficiencies, resource constraints, and limited innovation. The originality of this study lies in its novel approach of referencing scholarly rulings, fatwa boards, and religious texts to support the feasibility of integrating the aforementioned Islamic institutions with contemporary healthcare systems. While the governance of such initiatives is often confined to private or semi-governmental entities within religious ministries, there is a growing interest among governments in Muslim countries in adopting these models. The implications of this research underscore the need for enhanced efforts in raising awareness, combating corruption, improving expertise, enacting supportive legislation, fostering collaboration, securing sustainable funding, embracing technological advancements, and upgrading healthcare infrastructure to realize the full potential of these integrations. Despite its limitations, this study provides valuable insights and a foundational framework for policymakers aiming to bridge gaps in healthcare provision through the strategic incorporation of Islamic social finance institutions.
Waqf, Zakat, Sadaqat, Baitul-maal, Social Finance, Health Protection, Healthcare Systems.
A Collaborative Halal Supply Chain Model to Address Safety and Transparency Based on Blockchain Technology
Muslim spending on halal food is growing at 6.3%, projected to reach $2 trillion by 2024, raising concerns about the authenticity of halal claims due to the inability to trace products throughout the supply chain. This research has two primary objectives: first, to develop a decentralized model for halal tracking using blockchain technology, and second, to assess Customers' awareness of blockchain applications in the halal industry. The proposed system uses blockchain's decentralized and immutable nature to record data transparently and securely, covering halal product origin, quality, handling, and processing. This will enhance supply chain transparency, improve record-keeping efficiency, strengthen food safety and quality assurance, and build consumer trust through end-to-end traceability. The development process involves smart contracts, cryptographic techniques, and data analytics, implemented using Ethereum 2.0 and Web3.js. Testing of the prototype system demonstrated strong scalability, handling high loads without compromising efficiency, and adhered closely to predefined guidelines, enhancing trust in the system’s reliability.
Halal Food Supply Chain, Blockchain Technology, Supply Chain Integrity, Consumer Trust.
Pricing of Murabaha: Issues and Insights
The pricing mechanism is an important area that needs to be investigated in Islamic banking especially for the murabaha, the most financing tool. The main objective of this paper is to examine the pricing of murabaha and to try to propose a new pricing alternative. We note that the conditions of the fixation of mark-up in murabaha enlighten on the pricing process and the issues of the consideration of time value of money and the choice of benchmark. We propose to adopt an Islamic RAROC and to consider a new benchmark based on sukuk, specifically sukuk murabaha. This allows a marketable reference. Indeed, sukuk is the dynamic Islamic capital market. Moreover, this proposed benchmark has a strong relationship with the real sector.
Murabaha, Pricing, Islamic Bank, Benchmark, LIBOR, Sukuk.
Shari’ah Governance in Türkiye: Evolution, Challenges, and Conceptual Framework
In the aftermath of independence, Islamic nations embarked on an exploration of economic models, leading to the formulation of the New Islamic Economics by the late 1960s. The 1973 oil crisis catalyzed the emergence of affluent Arab nations, paving the way for the establishment of Islamic finance from 1974 onwards. By the 1990s, the rapid expansion of the Islamic finance industry demanded standardization efforts, resulting in the creation of bodies such as the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Islamic Financial Services Board (IFSB). A defining feature of Islamic Financial Institutions (IFIs) is their adherence to Shari’ah governance, ensuring compliance with Islamic principles in conjunction with conventional corporate governance practices. This study examines the historical development and current framework of Shari’ah governance in Türkiye while addressing the challenges and difficulties encountered in its implementation. The findings highlight the need for further refinement in governance practices to align with both Shari’ah principles and the evolving global financial landscape.
Shari’ah Governance Framework, Islamic Finance, Türkiye, Shari’ah Committee.
The Influence of Female Labor Force Participation on Economic Growth in Palestine: An ARDL Approach
This paper investigates the impact of female labor force participation (FLFP) on economic growth in Palestine, measured through the natural logarithm of gross domestic product (GDP). Despite ongoing efforts to promote gender equality, FLFP in Palestine remains markedly low, representing a missed opportunity for economic growth and development. This study utilizes an autoregressive distributed lag (ARDL) model and an unrestricted error correction model (UECM) to analyze data from 2000 to 2022, sourced from the World Bank. The primary objectives include assessing the short-run and long-run effects of FLFP on economic growth and evaluating the speed of adjustment to changes in the participation of the female labor force. The ARDL model identifies significant positive impacts of the FLFP rate on GDP in the short and long term. The bounds test indicates a long-run equilibrium relationship between the FLFP rate and the GDP, and the UECM results corroborate these findings, highlighting a significant speed of adjustment towards the long-run equilibrium. The results suggest that increasing FLFP can substantially boost economic growth in Palestine, leading to significant long-term economic benefits. These findings underscore the importance of targeted policies to reduce barriers to female employment and promote Islamic equality (musawah) and nondiscrimination in the labor market. Such policies could include improving access to vocational training, implementing supportive legal frameworks, and addressing substantive and transformative equality to empower women's economic activities. This paper contributes to the existing literature by providing robust empirical evidence of the critical role of FLFP in driving economic growth in Palestine. The study's findings support formulating policies that enhance FLFP, leading to significant long-term economic benefits and a hopeful future for Palestine's economy. Future research should explore the impact of specific interventions and comparative studies across similar socio-economic contexts to deepen understanding of these dynamics.
Women’s Labor Market Participation, Women's Empowerment, Islamic Justice, Economic Development, Palestine, Time Series Analysis.
Capital Structure and Performance in GCC Islamic Banks: A Two-Stage Approach
This paper investigates the relationship between capital structure and performance of Islamic banks operating in the GCC region. The objective of this study provide critical insights to bank managers regarding their capital structure decisions. The paper investigates the effect of capital structure of GCC Islamic banks on their performance, and the significance of various capital structure determinants that may determine the level of capital held by Islamic banks in GCC. Employing a robust two-stage approach, the study analyzes data from a sample of 20 Islamic banks across the GCC region for the period 2010 to 2020. The Two-Stage Least Squares (2SLS) method is utilized to address the potential issue of reverse causality, where performance might influence capital structure decisions. Additionally, Ordinary Least Squares (OLS) is employed to examine the factors shaping the capital structure of these Islamic banks. With the broader macroeconomic environment in context, the findings reveal a positive correlation between Islamic bank performance and equity capital. On the reverse causality effect of performance on capital structure, it was found that Islamic banks with higher profitability tend to employ higher leverage. In conclusion, the study finds that capital structure is relevant for Islamic banks in the GCC, and emphasizes on the importance of identifying the right debt-equity balance for optimized performance and sustainable growth.
Capital structure, Islamic banks, Bank performance, Macroeconomic measures, GCC.
Public Finance and Islamic Economics: The State of Art and Future Research Agenda
In this paper, we aim to carry out a comprehensive bibliometric analysis on articles published in the field of public finance and Islamic economics from 1972 until 2022. We have utilized Scopus and other published report in this field of research such as journal article, book chapter, conference paper, magazine, government reports, book and review manuscript. Numerous major civilizations, including Islam, have integrated public finance into their economic structures. Since the advent of Islam in Arabia until the Golden Age, Muslim authorities have endeavored to implement Islamic fiscal principles in accordance with the standards outlined in the Holy Qur'an and Sunnah. In Islamic economics, legal maxims (Al-Qawa'id Al-Fiqhiyyah) play a prominent role in public finance, as the Islamic legality of government actions must be considered prior to their execution. We believe, this research can serve a primary reference to public finance within the framework of Islamic economics on the state of research within a field or discipline and the way forward. We conclude that the incorporation of Islamic economics into public finance has substantial potential for stimulating economic expansion, guaranteeing social equity, and advocating for ethical financial conduct. As we begin this journey, it is important to develop a research agenda that includes several disciplines to tackle current economic difficulties. This will ultimately help create a more inclusive and sustainable economic model.
Public finance, Islamic economics, Compilations, Bibliometric.
The Convenience of Blockchain Technology to Islamic Financial Transactions (Suggested Legal Vision)
The main idea of ​​blockchain is about decentralized technology, which is independent of the control of any party that concludes or documents contracts. Because this technique was established to escape from the third party that concludes transactions between parties and documents contracts, as well as to escape from domination of law. Despite this, ​​blockchain is seen as the best solution to many legal dilemmas that are difficult to solve according to the traditional legal rules, especially with regard to the registration and transmission of digital assets, because these assets have become a reality that has imposed itself on many vital sectors, especially banking and financing. The use of blockchain technology as a mediator in financial transactions has become an inevitable and indispensable matter, for this reason, some countries have started to amend their laws to fit this new technology like France, which issued a decree called Blockchain decree, several US states also passed laws regulating the provisions of this technology, the first US state to legislate blockchain was Vermont. However, these legislations and amendments are not sufficient to accommodate all legal aspects of Blockchain technology, due to its novelty and continuous development, moreover, many countries have not followed the example of countries that have amended their legislation. Therefore, there is a large legislative vacuum regulating this technology in most countries of the world. This research explains the legal concept of blockchain technology, how it works, and the rules of law that organized it. It clarifies the appropriate legal mechanism to apply Islamic financial transactions to blockchain by applying the smart sukuk, the research also proposed some legal rules governing them.
Blockchain, Digital assets, Islamic sukuk, Smart sukuk, Smart contracts.
A Proposed Strategy to Accelerate the Pace of Digital Transformation in Islamic Banks: An Applied Approach to the Experience of Four Leading Banks
This research aims to provide strategy to accelerate the digital transformation in Islamic banks, based on conceptual and applied curricula foundations by experiencing four Islamic banks (Abu Dhabi Islamic Bank, Qatar Islamic Bank, Kuwait Finance House and Saudi Al Rajhi Bank), research proceeded from the hypothesis that the examined Islamic banks has adopted a strategic plans for digital transformation were crowned with leadership, In view of this, a strategy can be developed to accelerate the digital transformation in Islamic banks, the hypothesis was tested based on Evolutionary analysis of the following variables: digital leadership reality, level of digital innovation, indicator of growth in the use of digital channels, level of use of digital transformation, study reached several results , including: (1) the experience of banks studied were crowned with digital leadership; (2) formulate strategy to accelerate the digital transformation which included developed strategic plans for digital transformation, building procedures to activate the digital leadership, procedures to activate the digital innovation, building mechanisms to adoption and implementation digital transformation techniques. Using evolutionary diagnosis to rectify the deviation in the implementation of proposed strategy, the research provided a set of proposals for ensuring continuous implementation of proposed strategy in keeping with its time frame.
Digital transformation, Digital transformation strategy, Digital innovation, Digital leadership, Digital transformation techniques, Evolutionary diagnosis, Islamic banks.
Development of a Digital Islamic Social Stock Exchange: A Legal, Regulatory and Shariah Review
Equity trading through stock markets is a popular avenue for investors to obtain capital gain and profits. However, a much less known stock exchange has also existed in the conventional markets known as the social stock exchange (SSE). Conventional SSE initiatives have been successful among a few conventional economies such as Brazil, Canada, Singapore/Mauritius and recently India. An SSE enables social enterprises that have as their business social and environmental causes to list their projects or instruments for investors to invest in. Unlike for-profit stock exchanges, an SSE’s aim is not monetary gain for the investors but returns in terms of counteracting social upheaval and environmental conservation. In other words, impact investment is the aim of investors. Thus, investors impact the world through their investments in the social enterprises on the exchange. This research examines the prospect of developing a digital Islamic social stock exchange (ISSE) and proposes that Islamic economies can pilot an ISSE to deploy the Shariah vision of philanthropy, investment and sustainability. In expounding this proposal, the research reviewed the SSE of Brazil, Canada, Singapore/Mauritius and India and conducted three in-depth interviews with prominent scholars in this area. While paving the way to enable social enterprises whose goals are social and environmental causes to obtain funding, appropriate exposure and connections, the research neatly situates social stock exchange within the principles of Shariah and ascertains the need for establishing an ISSE. The research accordingly formulated suggestions about requisite legal, regulatory and Shariah elements for establishing a digital ISSE and its operating structures.
Digital Islamic social stock exchange, Shariah compliant impact investment.
In the conventional literature it is assumed that finance is the life of modern economies and financial transactions cannot be executed without debt. The entire system is based on the rate of interest. It is assumed that without debt, the market economy cannot conduct its functions efficiently, therefore, the optimal allocation of resources is not possible. However, in general, it is also believed in the literature of sociology, anthropology, and moral economy that debt has played a negative role in increasing greed and dishonesty in societies. Historically, it is observed that most economic crises and depressions are due to excessive levels of debt. Furthermore, it is also observed that debt creates enmity between the creditor and debtor. On the other hand, Islam guides its followers that Allah (s.w.t.) has created a relationship involving debt imbued with justice. The debt market in the Islamic system promotes virtue and mitigates vice. The followers of Islam should operate in the debt market according to the design of Allah (s.w.t.) which is based on the qard al-hassan (benevolent loan). This paper discusses the debt market in the conventional and Islamic framework, the relationship between conspicuous consumption and debt, the role of qard al-hassan and further highlights the value-based aspects of debt and credit. Consequently, this study provides valuable insights regarding debt and credit in the Islamic framework, for the benefit of researchers, policy makers and the wider society.
Copyright (c) 2023 Al Qasimia University Journal of Islamic Economics
Vital Issues for the Jurisprudential Adaptation of Cryptocurrencies
Through inductive, deductive, and analytical methodologies this study aims at shedding light on some important issues to facilitate a sound Sharī’ah verdict on cryptocurrencies. The issues are: (1) definition, origin, and types of cryptocurrencies; (2) the intrinsic and exchange values of cryptocurrencies, (3) cryptocurrencies and the peculiarities of the monetary ecosystem in modern economies; and (4) the jurisprudential adaptation of these newly emerging currencies. In following this synthesis, this study drew attention to the crucial circumstances and development of the prevailing monetary and financial system. This study points out the fact that reaching a sound ruling on cryptocurrencies cannot be attained without taking into consideration the complexity, ambiguity, and far-reaching consequences and implications inherently associated with the dominant monetary system. Among the realities unveiled in this study is the fact that the majority (90%+) of the money supply, in most jurisdictions, is created ex-nihilo, as debt, by private commercial banks in digital form without the backing of any hard fiat money, let alone a tangible asset like gold. This study emphasizes these points having surveyed the extensive literature written on the subject, by jurists and other experts in Islamic economics and related domains on the reiteration of the digitalization and private issuance aspects, in order to consider the injunction of cryptocurrencies. This does not imply a validation of the current practices of cryptocurrencies, but ignoring and/or overlooking the complex and ambagious reality of the contemporary monetary and financial system, in dealing with the subject of cryptocurrencies in isolation, may lead to an improper jurisprudential ruling.
Exploring Factors Influencing the Intention of Using Electronic Wallets for Transaction Payments in Palestine
This study explores e-wallet adoption in Palestine, employing Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM). The comprehensive framework assesses eight key factors: behavioral intention, perceived ease of use, perceived usefulness, social influence, facilitating conditions, privacy concerns, and innovation characteristics. Analyzing data from 312 participants, the research highlights the critical role of perceived ease of use in influencing behavioral intention, emphasizing user-friendly interfaces. Social influence, perceived usefulness, and innovation characteristics also significantly shape e-wallet adoption. Rigorous validation through factor loadings and goodness-of-fit indices strengthens the measurement model's validity. The study provides actionable insights for stakeholders, addressing factors like ease of use and social influence. Acknowledging limitations, it suggests avenues for future research, recognizing the dynamic nature of technology adoption in this evolving landscape.
Predictors of Millenials’ E-wallet Payment Behaviour in Post-Covid-19 in Malaysia
This study uncovered contributing factors that could determine millennials’ e-wallet payment behaviour in post-coronavirus disease 2019 (COVID-19) in Malaysia. In this study, 256 millennial respondents from Labuan and Kota Kinabalu, Malaysia were approached using an online questionnaire via Google Forms for effective data collection. This study used the ‘attitude, social influence and self-efficacy’ (ASE) model as a baseline theory to explain millennials’ e-wallet payment behaviour in post-Covid-19. The results revealed that attitude, social influence and self-efficacy were significant predictors of e-wallet behaviour. Besides, attitude also served as a significant mediating variable. The results obtained should be considered with caution. At least two limiting factors are acknowledged in terms of the limited geographical locations as well as confined variables used to explain the behaviour. Besides these constraints, future research might examine other theories to contrast the findings for improved contributions in e-wallet payment in Malaysia. The results obtained would be very pertinent for the development of an e-wallet policy in post-Covid-19 and new guidelines to boost adoption for payment purposes in Malaysia. This study presents a new perspective on the potential impacts of millennials' e-wallet behaviour in post-COVID-19 in Malaysia using the ASE model.
A Model of Zakat Allocation for Productive Purposes
This study aims to construct a model of zakat allocation for productive purposes. In this model, this study proposes qardul hassan as the basic principle for the loan contract. Based on the analysis of the application of this model, this study found several findings. First, it proposes a resource allocation model that allows the smooth flow of resources from those who have excess resources to those who have fewer resources. Second, the availability of loans in the community will improve the economy and social responsibility by giving financial assistance to al-gharimin. Third, the microfinance institution becomes the best partner due to its ability to directly engage the poor to participate in the development process. In addition, growth in micro-enterprises can be an important means of generating income and employment generation.
Contribution of Al-Maqrizi to the Development of Economic Thought
This research paper examines the contribution of one of the eminent and renown early Muslim scholars, Taqiyuddin Ahmad ibn Ali Al-Maqrizi (1364-1442) to the development of mainstream economic theory and Islamic economic thought and who preceded the so-called ‘father of economics’ Adam Smith (1723-1790) by more than three-hundred years. The paper presents, analyses and discusses Al-Maqrizi's biography, education, career, writings, publications and contribution to some of the theories of mainstream economics. The study assesses also the relevance of some of the relevant economic issues that Al-Maqrizi propounded, which have left a significant and noteworthy impact on the development of economic thought generally, and of Islamic economic thought specifically. This research paper follows a descriptive qualitative research work based on library research, historical approach, technical analysis and content analysis (the descriptive, the inductive- deductive and the historical approaches). This is done by reviewing a large number of related references and sources, out of which some of Al-Maqrizi’s economic ideas are inferred, extrapolated, analysed and discussed, in order to reach the findings of this research and suggest some recommendations. It is found that Al-Maqrizi (1364-1442) is one of the early renown Muslim scholars, who contributed significantly, not only to Islamic theology, history, geography, sociology but also to the economic thought. For instance, from the economic perspective, Al-Maqrizi preceded Thomas Gresham (1519–1579) in his theory or law of “bad money drives out good money” and wrote about many economic issues including corruption, inflation, money and taxation, among many other topics and themes. Further research is surely and obviously needed to highlight and expose more of Al-Maqrizi ideas and the contributions of many other similar early Muslim scholars, who contributed significantly to the field of economics generally and Islamic economics especially, long before many of the known Western economists, who claim to have come up with many of the economic theories.
Al-Maqrizi, Economic Thought, Corruption, Inflation, Taxation.
AWARENESS OF THE SUSTAINABLE DEVELOPMENT GOALS AMONG ZAKAT BENEFICIARIES IN TAIZ, YEMEN
In the backdrop of enduring conflicts within numerous Islamic nations, Yemen's ongoing civil war since 2015 warrants particular attention due to its catastrophic humanitarian implications. Characterized as the world's worst humanitarian crisis by various international bodies, Yemen's predicament encompasses extreme poverty, the disintegration of health and education infrastructures, and extensive displacement, both internally and externally. The city of Taiz represents a salient example of such devastation, as its protracted siege since 2015 has plunged a majority of its citizens into destitution, making them reliant on external aid. The intervention of local and global organizations via different sources, notably zakat (a form of charitable giving), forms the fulcrum of several relief efforts. This study explores the populace's cognizance regarding the role of zakat in achieving specific United Nations' Sustainable Development Goals (SDGs) set forth in 2015, particularly within conflict zones such as Taiz. The goals addressed in this study include poverty alleviation, eradication of hunger, promotion of health and well-being, provision of quality education, and facilitation of decent work, chosen due to their alignment with Zakat recipient categories. The research methodology adopted a quantitative approach, deploying a questionnaire distributed to zakat beneficiaries in Taiz. From a pool of 400 collected responses, the study discerned a pronounced lack of awareness concerning SDGs among the residents of Taiz. Despite zakat's significant contribution to certain SDGs, such as ensuring adequate food distribution, disseminating health awareness and preventive guidance, and creating employment for low-income families, the majority of respondents held the perception that zakat's contribution towards accomplishing the remainder of the SDGs remained sub-optimal. This paper delineates an empirical examination of the intersection between zakat and the Sustainable Development Goals within a war-ravaged environment, offering insights into the potential of religious charity as a mechanism for socio-economic relief and development.
Revitalizing the Role of Islamic Social Finance in Achieving the SDGs: A Comprehensive Review
The primary objective of Islamic social finance is to eliminate poverty and promote human welfare, aligning perfectly with the goals of the SDGs. A close examination of the SDGs reveals a strong correlation with Islamic social finance, emphasizing their close bond and comparability. Therefore, this study aims to investigate how Islamic social finance (ISF) sources can offer viable solutions to combat uncertainty, establishing a more economically balanced and just society - a shared aim with the SDGs. To achieve this objective, the study conducts an extensive literature review of existing and pertinent studies on social finance and Islamic social finance. This review assesses the current context, their contributions to the SDGs, and identifies limitations and gaps in both theory and practice. The research findings indicate that although the Shari’ah-based social financial system is relatively young, it has been gaining popularity by providing financial services to those who do not accept the interest-based conventional financial system. Consequently, there is significant demand for Shari’ah-based and interest-free financial services. ISF institutions play a crucial role in eradicating poverty, especially when compared to debt-based financial institutions that impose high interest rates on investments. The detrimental effects of debt and high interest rates are evident, leading to various financial, social, psychological, and moral problems. In this context, Shari’ah-based ISF emerges as a promising alternative source of financial support for impoverished populations in many Muslim-majority countries worldwide. The unique characteristics and strong moral values inherent in Islamic social finance underscore its potential to significantly contribute to poverty alleviation, financial development, and enhanced financial inclusion, all of which align with the overarching goals of the SDGs. These qualities position ISF as a key driver for expediting progress toward SDGs. However, despite its potential to yield positive social impacts, ISF faces numerous challenges that must be overcome to facilitate extensive interest-free financial inclusion through Islamic financial mechanisms. This study provides some policy recommendations to address these challenges and further enhance the effectiveness of Islamic social finance in supporting the attainment of SDGs.
WHAT HAVE WE ACHIEVED SO FAR IN WAQF (ENDOWMENT) RESEARCH? EVIDENCE FROM MALAYSIA AND INDONESIA
The objectives of this study are to assess the latest achievement in empirical Waqf research and to analyze the current development in the Waqf industry in Malaysia and Indonesia. All published articles related to waqf published from 2011 to 2022 were extracted from the Scopus database. Biblioshiny was used to perform the analyses and visualize the science mapping. Bibliometric analysis shows the research on Waqf in both countries is progressing well with quality and impactful outcomes to the development of the Ummah. The number of research production and citations improved significantly in both countries. In addition, both countries are utilizing the concepts of Waqf extensively in many dimensions to achieve Sustainable Development Goals (SDGs) and to maximize the opportunity to resolve the issues that are hurdling the Waqf industry. The findings from this study could provide a point of reference to many parties such as regulators, government agencies, non – government agencies, academics, Non- Government Organizations (NGOs) and industry players.
MANAGING SHARIAH NON-COMPLIANCE RISK: CONSTRUCTION OF A LOW-RISK SHARIAH-COMPLIANT PORTFOLIO USING THE BLACK-LITTERMAN PORTFOLIO OPTIMIZATION MODEL
This study explores the challenges of managing Shariah Compliant Portfolios and the importance of addressing Shariah non-compliance (SNC) risk, particularly in the context of social media and reputation risk. The paper proposes using the Black-Litterman portfolio optimization model and incorporating the views of Shariah scholars to construct a Shariah compliant portfolio that generates better returns than the benchmark portfolio while addressing SNC risk. Additionally, the paper discusses the benefits of adding gold to a portfolio of stocks and bonds and provides insights on reallocating gold's weight based on the investor's risk-return preferences. The paper provides a comprehensive review of the literature on portfolio selection models, SNC risk, SNC risk assessment, and portfolio diversification through Shariah-compliant gold investments. The study's methodology and data sources are explained, and the results are presented and analyzed. The paper concludes by summarizing the main findings and discussing their implications for investors, policymakers, and asset managers in the realm of Islamic finance.
Black-Litterman Portfolio Optimization Model
YELLOW SUKUK UNVEILED: HARNESSING AGRICULTURAL COMMODITY TRADE FOR ISLAMIC FINANCE AND PARADIGM SHIFT IN COMMODITY EXCHANGES
Traditional methods dominate agricultural commodity trade, leading to occasional supply surpluses due to inherent periodicity. The lack of adequate storage systems further compounds the challenge, resulting in price volatility and market instability. To address these issues, introducing licensed Warehousing and a Specialized Commodity Exchange system offers an opportunity to integrate agricultural commodity trade with global markets and establish a robust market structure. This integration involves transforming standardized agricultural products held in licensed warehouses into Electronic Warehouse Receipts (e-WhR), which can serve as essential tools for production, consumption, and investment instruments. Moreover, the innovative concept of "Yellow Sukuk" is introduced, representing a groundbreaking financial instrument that can be utilized within the framework of Islamic Capital Markets alongside conventional bank loan transactions. This study examines the evolution of agricultural commodity trade, spot transactions conducted in Commodity Exchanges, and the fundamental aspects of transactions. By embracing these advancements, the agricultural sector can enhance its efficiency, liquidity, and overall market depth while embracing the groundbreaking potential of Yellow Sukuk.
ROLE OF DIGITAL TECHNOLOGY IN TRANSFORMING LINEAR TO CIRCULAR ECONOMY
The linear economy model is no longer viable, overburdening the earth and depleting resources beyond nature's capacity. The solution lies in transitioning to a circular economy, which optimizes resource use and ensures a sustainable future for future generations. Digital technology plays a crucial role in enabling circularity and sustainability. Sharing platforms connect service providers and users, maximizing resource utilization without the need for additional resources. Technological advancements enable efficient sorting, maintenance, and recycling of products. However, achieving widespread adoption requires addressing barriers through global awareness, education, supportive laws, institutions, and government backing.
UNVEILING THE POTENTIAL OF THE ISLAMIC FINTECH ECOSYSTEM IN EMERGING MARKETS
Islamic FinTech combines Islamic financial principles with advanced technology, offering a unique approach to financial inclusion in emerging markets. This study aimed to examine the critical aspects of the Islamic FinTech ecosystem and provide a roadmap for stakeholders to improve financial inclusion in these markets. A qualitative research methodology was employed, using semi-structured interviews, which are structured based on the FinTech ecosystem dimensions, which include talents, demand, policy, and capital, to analyze the Islamic FinTech ecosystem in emerging markets. The study found that improvements are needed in talent development, customer-centric products, government policies, and investment strategies to enhance the Islamic FinTech ecosystem. The study's results indicate a strong demand for innovative Islamic financial products in emerging markets, with high acceptance and adoption rates. However, several aspects need improvement, including developing locally tailored products and services suitable for emerging markets, building trust and credibility, and fostering partnerships between traditional Islamic financial institutions and FinTech startups. The study also highlights the importance of government policies, regulations, and capital investments in nurturing a healthy Islamic FinTech ecosystem in emerging markets. The originality lies in the comprehensive analysis of the diverse perspectives of different stakeholders by providing original insights into the Islamic FinTech ecosystem in emerging markets and its potential role in promoting financial inclusion.