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Article
Publication date: 9 May 2016

Rashidah Abdul Rahman, Aliyu Dahiru Muhammad, Selim Ahmed and Fouad Amin

The aim of this paper is to propose and verify a structured model for Islamic micro-finance in Bangladesh. The Islamic micro-investment model (IMIM) aims to harness the role of…

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Abstract

Purpose

The aim of this paper is to propose and verify a structured model for Islamic micro-finance in Bangladesh. The Islamic micro-investment model (IMIM) aims to harness the role of the Waqf/philanthropic sector to empower micro-entrepreneurs.

Design/methodology/approach

The researchers use the survey technique to investigate the micro-entrepreneurs’ intention to adopt the model. A total of 400 questionnaires are distributed with 207 responses being returned (51.75 per cent). In this study, a structural model is tested to examine the relationship of the behavioural intention to adopt Islamic micro-investment with the attitude towards behaviour, subjective norm, normative belief and behavioural belief.

Findings

The findings of the research show that, overall, the model fits the data and can be used to advance Islamic micro-finance in Bangladesh. However, out of the four hypotheses tested, only two are accepted vis-à-vis the influence of behavioural belief and normative belief on attitude and subjective norm, respectively.

Research limitations/implications

The research suggests the need for an awareness programme on Islamic micro-finance and the role of Waqf in the economic empowerment of the populace.

Practical implications

The IMIM aims to harness the role of the Waqf/philanthropic sector to empower micro-entrepreneurs.

Social implications

The model of Islamic micro-finance may empower poor micro-entrepreneurs and harnesses the potential of Waqf for socio-economic development, thereby, among others, reducing the cost of capital.

Originality/value

Only a few studies have been conducted on micro-finance from an Islamic perspective in Bangladesh. The IMIM, which has been developed by Muhammad (2012) and tested in Nigeria, is the first to be validated through an empirical study in Bangladesh. Thus, testing the viability of IMIM in the Bangladesh context will certainly add value for the clients, institutions and policymakers in Islamic micro-finance.

Details

Humanomics, vol. 32 no. 2
Type: Research Article
ISSN: 0828-8666

Keywords

Open Access
Article
Publication date: 1 January 1970

Ishrat Hossain, Aliyu Dahiru Muhammad, Binta Tijjani Jibril and Simeon Kaitibie

In societies with strong presence of Islam, Islamic instruments with more scope for fairness and equity can be innovatively harnessed to play an increasing role in the development…

4329

Abstract

Purpose

In societies with strong presence of Islam, Islamic instruments with more scope for fairness and equity can be innovatively harnessed to play an increasing role in the development process and poverty alleviation schemes. Poor smallholder farmers dominate agricultural production in many developing countries and contribute a significant portion of global food production. This paper aims to develop a scheme to improve poor smallholder farmers’ vulnerable financial situation through the application of Zakah and Salam contract, using Bangladesh as a case study. Secondary goals are to show the effect of the scheme on food security and relevance to Nigeria.

Design/methodology/approach

The authors explore the existing traditional modes of financing available to poor smallholders, identify their challenges and propose an appropriate Islamic financing scheme.

Findings

With the Zakah-based Salam forward contract, the proposed scheme would procure food through Institutional Demand to offer interest free financing, fair price and access to new marketing channels and reduce income uncertainty for the rural smallholders. The discussions indicate that the local food security will be enhanced through incentivized farming activities and disbursement of food from the food bank to the Zakah-eligible food insecure local people.

Research limitations/implications

This proposal brings forth a potentially powerful idea that needs further empirical validation.

Originality/value

The religion-based Institutional Demand initiative to promote smallholder agricultural development and social protection is a novel one. The attempt to apply the framework to Nigeria context shows the potential of the framework to generalize for other Muslim developing countries with similar characteristics, especially the poorer agriculture-based countries.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 12 no. 2
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 15 June 2015

Mohamed Aslam Haneef, Ataul Huq Pramanik, Mustafa Omar Mohammed, Md. Fouad Bin Amin and Aliyu Dahiru Muhammad

This paper aims to develop an integrated waqf-based Islamic microfinance (IsMF) for poverty reduction in Bangladesh. Microfinance institutions (MFIs) have been constrained by the…

4298

Abstract

Purpose

This paper aims to develop an integrated waqf-based Islamic microfinance (IsMF) for poverty reduction in Bangladesh. Microfinance institutions (MFIs) have been constrained by the high cost of funds, high interest rate charges and poor human resource quality of the recipients. Islamic MFIs have recently evolved with the hope of overcoming these financial, ethical and human capital deficiencies faced by the conventional financial institutions. Moreover, a good number of integrated models have been proposed to enhance the role played by Islamic MFIs. Most of these models, however, lack empirical justifications.

Design/methodology/approach

The research uses survey techniques. A total of 381 respondents were included in the survey. The integrated waqf-based Islamic microfinance model (IWIMM) was earlier on developed using literature and intellectual discussions. There are six constructs presenting the IWIMM, namely, waqf resources, IsMF, takaful, project financing, human resource development and poverty alleviation. In the survey instrument, 45 items represent the six constructs, but only 26 items have been retained after factor analysis. Structural equation modelling has been adopted to examine the relationship among the constructs.

Findings

The results show that there are significant relationships between IsMF and takaful, waqf resources and human resource development, takaful and human resource development, IsMF and human resource development and, waqf resources and project financing. The results also indicate that poverty alleviation is possible through the integration of these constructs.

Research limitations/implications

Though the paper has studied conventional and Islamic MFIs in Bangladesh, one of the populated Organisation of Islamic Cooperation (OIC) member countries and also where poverty incidence is high, further studies need to be conducted in other OIC member countries to adopt the model in line with practical and regulatory environment of those countries. Similarly, the study is based on the perception of the respondents, which limits the generalization of the result.

Practical implications

The paper proposed a model that has the potential of being applied for poverty alleviation programmes in most of the OIC member states.

Originality/value

The present paper has developed an IWIMM for poverty reduction.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 8 no. 2
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 26 January 2021

Dahiru Abdullahi, Suresh Renukappa, Subashini Suresh and David Oloke

Despite the abundant renewable energy potential in the Nigeria, the power-sector stakeholder has not paid attention to the prospect of the natural resources that can be accrued…

Abstract

Purpose

Despite the abundant renewable energy potential in the Nigeria, the power-sector stakeholder has not paid attention to the prospect of the natural resources that can be accrued when it is properly harnessed. Although a very negligible fraction of the population has invested in solar photovoltaics (PVs) for home solution, the initiative was only made public commercialised under the public-private partnership (PPP) and the objectives of the Power Sector Reform Act. 2005. It is, therefore, aimed to investigate the causes and insight of the barriers that are responsible for the slow implementation of the solar energy initiative in the Nigeria.

Design/methodology/approach

An empirical study was performed in the Nigeria. The study was conducted qualitatively, through semi-structured face-to-face interviews of 25 participants. The interviews were recorded, transcribed, interpreted, coded, categorised into themes and analysed by content analysis.

Findings

The study reveals technological, financial, political and social barriers have been the reason for slowing down solar energy development in Nigeria. While the technical barrier is a challenge to the solar energy implementation, socio-cultural issues have also been an obstacle to the implementation process. It is suggested that, the stakeholders of the initiative endeavour to proffer sustainable policies to enable public and private promoters to be able to generate and distribute electricity through solar PV and to complement the inadequate conventional electricity sources from the grids.

Originality/value

The paper provides a richer insight into the understanding and awareness of barriers for implementing solar energy strategies in Nigeria.

Details

Smart and Sustainable Built Environment, vol. 11 no. 3
Type: Research Article
ISSN: 2046-6099

Keywords

Article
Publication date: 15 October 2021

Fahmi Medias, Asmak Ab Rahman, Akhmad Akbar Susamto and Zulfikar Bagus Pambuko

This paper aims to analyze the role of waqf in the socio-economic development of the organization of the Islamic Cooperation (OIC) countries. Various projects currently use waqf

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Abstract

Purpose

This paper aims to analyze the role of waqf in the socio-economic development of the organization of the Islamic Cooperation (OIC) countries. Various projects currently use waqf as an instrument for socio-economic development, as reported in the scholarly literature. This study will investigate this literature to explore trends in waqf studies and the role of this Islamic form of endowment in the socio-economic development of OIC countries.

Design/methodology/approach

This systematic literature review focuses on peer-reviewed journals and data obtained from the Mendeley database using specific criteria to analyze the socio-economic developmental role of waqf in OIC countries from 2011‐2020.

Findings

The socio-economic developmental role of waqf in OIC countries has been widely studied. In total, 68 academic articles were found that are relevant to themes of poverty alleviation, social welfare, entrepreneurship, education, health services and religious facilities. They reveal that the role of waqf in social welfare was the most discussed topic in the research. In addition, the majority of studies used an interview method to study waqf institutions in nine OIC countries. Furthermore, the number of publications on the theme has increased significantly every year, although the largest proportion occurred in unindexed journals.

Practical implications

This study provides an overview of research trends in the socio-economic developmental role of waqf. Its results can provide practical input for waqf institutions as they encourage its practice in OIC countries, and for policymakers in formulating their management strategies to promote the role of waqf in the social and economic aspects of society.

Originality/value

This paper reviews the current development of the socio-economic role of waqf in OIC countries. It will help researchers improve their understanding of this role. It will also provide waqf managers in OIC countries with adequate information on waqf projects which they can implement to achieve socio-economic development in their countries.

Details

Journal of Islamic Accounting and Business Research, vol. 13 no. 1
Type: Research Article
ISSN: 1759-0817

Keywords

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