Search results

This paper aims to explore the viability of applying Qard Hasan as an Islamic crowdfunding financial instrument to finance micro-enterprises in Malaysia.

This is a qualitative study in which semi-structured interviews were conducted with several crowdfunding professionals concerning the application of Qard Hasan in Islamic crowdfunding. To realise the purpose of this study, the data is subjected to thematic analysis.

The finding reveals that though it is often argued that Qard Hasan is basically not a business-oriented instrument, a closer look at the framework reveals the uniqueness and flexibility of this instrument to be adopted as a viable financial instrument for crowdfunding in financing micro-enterprises in Malaysia. Although it is associated with various risks including default risk and the risk of attracting big funds. However, these risks can be managed and overcome by using FinTech mechanisms such as blockchain to carry out due diligence, monitor the project and ensure the repayment in installment.

The findings of this study may not be suitable for generalisation to all crowdfunding practices as the semi-structured interview is concentrated predominantly in Malaysia. However, it still provides valuable contributions to the Islamic crowdfunding sector in Malaysia between theory and practice.

The Qard Hasan crowdfunding framework in this study can potentially be applied to help micro-entrepreneurs reach out to financial services within their means. This framework provides means to grow the micro-enterprise sector.

Qard Hasan crowdfunding will effectively alleviate poverty by creating an avenue of opportunities for business enterprises and close the gap between the wealthy and the poor classes in society, which will eventually bring about more cooperation, more collaboration and cultivate a generous society.

In spite of the fact that Islamic crowdfunding is not a new topic in research, it lacks empirical studies, particularly qualitative analysis. As this study engages with experts in Shari’ah and crowdfunding regarding the potential application of Qard Hasan, it highlights a fresh discussion both in theory and practice.

The purpose of this paper is to look into millennials’ acceptance of Qard al-hasan using the Islamic theory of consumer behaviour (iTCB) in Malaysia.

For this study, convenience sampling was used and 203 usable questionnaires were received from the respondents who are millennials and university students. The questionnaire link was distributed via social media platforms to the millennials.

The findings of this study reveal that there exists a strong and positive relationship between the role of iman and Maqasid consumer index in determining the millennial acceptance of Qard al-hasan. On the contrary, Islamic altruism does not turn out to be the factor of Qard al-hasan acceptance. Resultantly, these results suggest that millennials in Malaysia accept Qard al-hasan and based on those educational institutions may consider offering zero-interest benevolent loans to alleviate the financial burden of unprivileged students.

Although this study provides positive results, a minimum of two research constraints may direct future efforts in this area. This study initially focuses on a specific ecosystem of Islamic financial products in Malaysia, with a particular emphasis on Qard al-hasan. As a result, subsequent research ought to strive to encompass a larger perspective on Qard al-hasan. Secondly, this research uses a theory that is still in the applicability phase, which has led to some productive discussions for further improvements.

To the best of the authors’ knowledge, this work is one of the few studies conducted on an empirical basis using the iTCB in the milieu of Qard al-hasan in Malaysia.

This paper aims to investigate the effect of Islamic microfinance on poor households through the case of the IKSAR Qard al-Hasan Program in Turkey. To achieve this aim, it examined the changes in the socio-economic status of beneficiaries before and after the program.

This paper adopts the convergent parallel mixed method design. It conducted two surveys to micro-entrepreneurs: the first is when they received the loan and the second is when they finished their installments. In addition to the longitudinal data obtained from these two surveys, qualitative data were collected by participant observation and interview technique with visiting these people periodically throughout the interest-free loan (qard al-hasan).

According to the results obtained from the analysis of the pre- and post-surveys, a statistically significant increase of 35% was experienced in the monthly household income after receiving the qard al-hasan loan compared to before. Similarly, a statistically significant increase was found in the monthly expenditures of 23 out of 30 households after receiving the qard al-hasan.

There are two originalities of this study. To the best of the authors’ knowledge, it is the first research that examines the only Islamic microfinance program in Turkey. Second, it uses longitudinal data while examining the impact of Islamic microfinance on the welfare of the poor. In the relevant literature, no study has been identified that uses longitudinal data in Islamic microfinance. Similarly, a limited number of longitudinal studies examine the impact of conventional microfinance institutions on the poor.

The purpose of this paper is to identify some well-set instruments in Islam that can efficiently alleviate poverty, solve social problems and reduce social inequality through a new operational framework called “Islamic social business (ISB)”.

This is a conceptual research that is based on Al-Quranic principles as well as contemporary social welfare philosophies, such as, augmented stakeholder theory, social enterprise and social business. Al-Quran, Al-Hadith and existing traditional and Islamic literature are consulted for this study.

The study proposes an efficient system of Islamic wealth sourcing and management to make the process of poverty alleviation sustainable. Other social problems for disadvantaged people, such as, health-, shelter-, literacy- and environmental-related issues are also addressed in the proposed system. The study identifies the inefficiency in the current practices and makes some propositions that are in conformance with Islamic principles and implementable by Islamic institutions all over the world. The authors propose a theoretical framework and operational propositions for ISB.

In following this study, social policymakers, Islamic financial institutions, Islamic social enterprises and Islamic charity organizations will find organized guidelines to initiate “new entities” or “reshape existing entities”.

The study will be effective in solving social problems, alleviating poverty and reducing social inequality.

This is the first study that identifies all the potential Islamic sources of funding and the efficient management thereof through ISB. The study also proposes an ISB model and makes several propositions for different types of ISB.

This paper aims to examine how a central bank (CB) can act as a lender of last resort (LOLR) for both Islamic and conventional interest-based banks by pursuing a Qard-al-Hasan (QH)-based monetary policy (MP).

The role of the CB as LOLR under QH-based MP and its effects on major macroeconomic variables, including deposits, loan creation and aggregate expenditures, are examined on theoretical grounds by using the aggregate output and aggregate expenditure model under the framework of Islamic MP.

When the CB acts as LOLR by pursuing QH-based MP, it automatically empowers Islamic banks (IBs) by providing access to borrowing funds from the CB on a QH basis. As a result, IBs will not be required to hold billions of dollars as liquid assets against liquidity risks. Thus, the lending capacity of IBs will increase and deposit expansion, loan creation and aggregate expenditures in the economy will all expand. This will in turn increase real GDP and employment while reducing the unemployment rate.

This is the first paper to analyze CBs acting as LOLR for both IBs and conventional interest-based banks by pursuing a QH-based MP, thus providing equal opportunities and equal access to borrowing facilities from the CB, along with equal partnership and fair competition for all and absolutely no discrimination to anyone. The LOLR service to all banks under QH-based MP will unveil a new horizon of opportunities where all financial institutions are expected to thrive. IBs will escape the constraints of the constant fear of liquidity risks and find a level-playing field.

In this study in the United Arab Emirates (UAE), we investigated college students’ perceptions of their past experience of receiving one-to-one tutoring support in mathematics when they were in secondary school. In addition, we also explored students’ reasons for taking one-to-one tutoring in mathematics, the perceived impact of one-to-one tutoring in overcoming shortcomings of school mathematics teaching and on their mathematics achievement, and whether the learning environment at school influenced decisions about having one-to-one tutoring. Eight case-study students were involved in recalling how beneficial one-to-one tutoring was through semi-structured interviews. Because of the small sample size, the research involved only qualitative data based on the recollections of college students who were attending a one-year course in the General Education department of Abu Dhabi Men’s College. The research provided valuable insights into how some students considered having a one-to-one tutor beneficial for their achievement when they were in secondary school. Educators must consider students’ learning environment as being one of the main reasons for deciding whether or not to undertake one-to-one tutoring to raise their achievement in mathematics.

ﻓﻲ ھذه اﻟد را ﺳﺔ ﻓﻲ دوﻟ ﺔ ا ﻹﻣﺎ را ت اﻟ ﻌرﺑﯾﺔ اﻟ ﻣﺗ ﺣدة، د رﺳﻧﺎ ﺗ ﺻورا ت طﻼب اﻟ ﺟﺎ ﻣﻌﺎ ت ﻋن ﺗ ﺟرﺑﺗﮭم اﻟ ﺳﺎﺑﻘﺔ ﻓﻲ ﺗﻘدﯾم د ﻋم ﺗﻌﻠﯾﻣ ﻲ ﻓ رد ي ﻓﻲ اﻟ رﯾﺎ ﺿﯾﺎ ت ﻋﻧدﻣﺎ ﻛﺎﻧ وا ﻓﻲ اﻟ ﻣد رﺳﺔ اﻟﺛﺎﻧ وﯾﺔ. ﺑﺎ ﻹ ﺿﺎﻓﺔ إ ﻟ ﻰ ذ ﻟ ك ، ا ﺳ ﺗ ﻛ ﺷ ﻔ ﻧ ﺎ أ ﯾ ﺿً ﺎ أ ﺳ ﺑ ﺎ ب ا ﻟ ط ﻼ ب ﻹ ﺟ ر ا ء د ر و س ﻓ ر د ﯾ ﺔ ﻓ ﻲ اﻟر ﯾﺎ ﺿ ﯾﺎ ت ، وا ﻟﺗﺄﺛﯾ ر اﻟ ﻣﻠ ﺣو ظ ﻟﻠ د رو س اﻟﻔ ردﯾ ﺔ ﻋﻠ ﻰ ﺗ ﺣ ﺻ ﯾﻠ ﮭم ﻓ ﻲ اﻟر ﯾﺎ ﺿ ﯾﺎ ت ، وﻣ ﺎ إذا ﻛﺎﻧ ت ﺑﯾﺋﺔ اﻟﺗ ﻌﻠم ﻓ ﻲ اﻟ ﻣد رﺳﺔ ﻗد أﺛ ر ت ﻋﻠ ﻰ اﻟﻘ را را ت اﻟ ﻣﺗ ﻌﻠﻘﺔ ﺑﺎ ﻟ ﺣ ﺻ ول ﻋ ﻠ ﻰ ﺗد ر ﯾ ب ﻓ ر د ي . د ر س وا ﺣ د. ﺷ ﺎ ر ك ﺛ ﻣﺎﻧ ﯾ ﺔ ﻣ ن ط ﻼ ب د ر ا ﺳ ﺔ اﻟﺣ ﺎﻟ ﺔ ﻓ ﻲ اﻟﺗذﻛﯾ ر ﺑ ﻣد ى ﻓﺎﺋدة اﻟﺗد رﯾ س اﻟﻔ رد ي ﻣ ن ﺧﻼل ﻣ ﻘ ﺎ ﺑ ﻼ ت ﺷ ﺑ ﮫ ﻣ ﻧ ظ ﻣ ﺔ . ﻧ ظ رً ا ﻟ ﺻ ﻐ ر ﺣ ﺟ م ا ﻟ ﻌ ﯾ ﻧ ﺔ ، ﺗ ﺿ ﻣ ن ا ﻟ ﺑ ﺣ ث ﻓ ﻘ ط ﺑ ﯾ ﺎ ﻧ ﺎ ت ﻧ و ﻋ ﯾ ﺔ ا ﺳ ﺗ ﻧ ﺎ دًا إ ﻟ ﻰ ذ ﻛ ر ﯾ ﺎ ت ط ﻼ ب ا ﻟ ﺟ ﺎ ﻣ ﻌ ﺎ ت ا ﻟ ذ ﯾ ن ﺣ ﺿ ر و ا دو رة ﻣدﺗ ﮭﺎ ﻋﺎم وا ﺣد ﻓ ﻲ ﻗ ﺳم اﻟﺗ ﻌﻠﯾم اﻟ ﻌﺎم ﻓ ﻲ ﻛﻠﯾﺔ أﺑو ظ ﺑ ﻲ ﻟ ﻠ ط ﻼ ب . ﻗ د م ا ﻟ ﺑ ﺣ ث ر ؤ ى ﻗ ﯾّﻣ ﺔ ﺣ و ل ﻛﯾ ﻔﯾ ﺔ ﻧ ظر ﺑ ﻌ ض اﻟ طﻼب ﻓ ﻲ وﺟود ﻣد ر س وا ﺣد ﻣﻔﯾد ﻟﺗ ﺣﻘﯾﻘ ﮭم ﻋﻧدﻣ ﺎ ﻛﺎﻧ وا ﻓ ﻲ اﻟ ﻣد رﺳﺔ اﻟﺛﺎﻧ وﯾ ﺔ. ﯾ ﺟ ب ﻋﻠ ﻰ اﻟ ﻣﻌﻠ ﻣﯾ ن ا ﻋﺗﺑﺎ ر ﺑﯾﺋ ﺔ ﺗ ﻌﻠم اﻟ طﻼب وا ﺣدة ﻣ ن ا ﻷﺳﺑﺎ ب اﻟ رﺋﯾ ﺳﯾ ﺔ ﻟﺗ ﻘ ر ﯾ ر ﻣﺎ إ ذا ﻛﺎ ن ﯾ ﺟ ب ﻋ ﻠﯾﮭم إ ﺟ ر ا ء د ر و س ﻓ ر دﯾ ﺔ أ م ﻻ ﻟ ر ﻓ ﻊ ﻣ ﺳ ﺗ و ى ﺗ ﺣ ﺻ ﯾﻠﮭم ﻓ ﻲ اﻟ ر ﯾﺎ ﺿ ﯾﺎ ت .

The purpose of this paper is to report that the social business model has emerged to mitigate the failure of free-market capitalism driven by self-interest in creating social value. It shows how social business contradicts with free-market capitalism while being compatible with Islamic moral economy due to the axiomatic differences between the two economic systems.

The paper follows conceptual, axiomatic and theoretical approach to show how the social business model contradicts with free-market capitalism, but is compatible with Islamic moral economy. The paper provides a theoretical framework for Islamic social business based on an Islamic human and social development perspective. The paper first discusses the failure of free-market capitalism and the emergence of social business in the capitalist system. It then defines Islamic social business and lays out its axiomatic foundation based on the Islamic worldview. It also presents Islamic financial instruments and funds for social business. Finally, it makes a case for sustainable socioeconomic development and subjective well-being within the Islamic development paradigm.

The paper shows that a cosmetic change to capitalism is not sufficient for enabling the social business model to take the main stage in the free-market system. There is a need for a new paradigm of reality, truth, telos and human nature to support social business. Tawhidi paradigm can be such alternative. The paper makes a strong case for social business from an Islamic worldview. Particularly, certain economic axioms within the Tawhidi anthropology, teleology and axiology provide intrinsic causes for pursuing such business model. The multi-dimensional nature of humans from the Tawhidi anthropology sets the intrinsic foundation for social business. Indeed, although the social business model is new to the West, it has been practiced in certain forms in the Muslim world throughout history. Zakat, sadaqah, and qard hasan can be used to support social business in addition to some Islamic banking instruments. The paper suggests that Muslim countries should embrace the social business model for sustainable development and greater subjective well-being.

The paper is purely theoretical. Future studies might shed light on the issue through empirical evidence.

The paper is likely to enhance the interest in social business in the Muslim world.

The paper has potential to lead the creation of social value through dissemination of the social business model.

The paper contributes the Islamic moral economy doctrine by making a strong case for Islamic social business.

The purpose of this paper is to comprehensively discuss the issue of risk vis-à-vis the perpetuity restriction principle inherent in waqf (Islamic endowment). Specifically, it attempts to consolidate the axioms in both conventional and Islamic finance, such as the risk-return trade-off and al-ghunm bi al-ghurm (liability accompanies gain), with the perpetual nature of waqf. Overall, this paper attempts to find a resolution to the dilemma of perpetuity restriction inherent in cash waqf against the natural occurrence of the risk.

This paper is based on the secondary research methodology; past literature encompassing journal articles, books, relevant financial axioms, fatwas (Islamic rulings) and state enactments is critically reviewed to present its case. In regard to state enactments, only Malaysian state enactments have been used, thus restricting the study to the Malaysian case only.

This study contends that the dilemma of the perpetuity restriction and the natural occurrence of risk can be resolved through the integration of waqf risk management, especially concerning cash waqf, with the Islamic spiritual approach. By implementing standard operating procedures that inculcate awareness on waqf risk management and Islamic spirituality in waqf stakeholders (wāqif (donor), trustee and beneficiaries), the stakeholders may accept the reality of risk that is inevitable even after all efforts have been exhausted. In other words, the violation of perpetuity is exonerated given that mental faculties aligned with revealed texts have been exhaustively used beforehand.

Findings from this study may broaden the choice of investment avenues for waqf trustees while adhering to the perpetual restriction of waqf. More importantly, waqf trustees will not be forced to invest in interest-bearing securities or be involved in any usurious transactions just to obtain guaranteed returns and preserve the corpus of waqf.

This study offers a unique perspective on cash waqf risk management by re-analyzing the axioms and concepts of finance and waqf while observing the welfare of the beneficiaries.

This study aims to propose and verify the suitability and applicability of Islamic equity-based microfinance models for financing micro, small and medium enterprises (MSMEs) in the State of Libya. The proposed models combine the unique features of social solidarity, cooperation “Ta’awan,” meeting religious requirements and providing financing more fairly and equitably.

A qualitative approach is applied in this study through semi-structured interviews with several Libyan experts, including Islamic bankers, Shariah scholars, MSMEs experts, Islamic microfinance experts and academicians. The data collected from 2019 to 2021 and thematic analysis by computer-based software NVivo is used to analyze the data.

The results indicate that the proposed Islamic equity-based microfinance models are suitable and applicable in Libya. This study also reveals that the proposed models have numerous potential benefits not only in meeting the financial needs of MSMEs but also in meeting the government objectives in economic divarication and socioeconomic development.

First, the study proposes the applicability and suitability of Islamic equity-based models in financing MSMEs only, while large firms are excluded from the study. Second, the study only proposes and tests the applicability of Islamic equity-modes of financing contracts, namely, Musharakah and Mudarabah, while Islamic debt-based financing models are not included. Finally, as there is no practical evidence of using those models for financing MSMEs in Libya, this study lacks empirical evaluations of equity models’ real benefits on income, employment generation, living standards improvement and business growth and sustainability.

Given the importance of the MSMEs sector for the State of Libya’s economic growth, it is expected that the findings of this study can be of assistance in formulating guidelines and implementing Islamic equity-based microfinance programs. Besides, it can be a valuable source of information for policymakers for improving the functions of the current microfinance programs in the country. Additionally, as studies concerning Islamic alternative models for financing MSMEs are scarce, the current study can also be a reference point for researchers, academicians, practitioners and other stakeholders.

Providing capital support for the underfunded economy segment, attracting small savings, increasing investments and developing entrepreneurial skills could lead to improved economic productivity and growth.

The present study proposes the structure of Islamic equity-based microfinance models for MSMEs in Libya and verifies the suitability of those proposed models among Libyan experts. To the best of the authors’ knowledge, no study has been conducted on uncovering and exploring the potentials of Islamic equity-based microfinance models for financing MSMEs in Libya.

Pakistan has experienced financial liberalization with rapid ups and downs in economic growth due to domestic issues during the last 2 decades. Motivated by inconclusive and conflicting time-driven findings about the performance of the business groups, this study examines the performance of business groups in Pakistan for a relatively long period from 2003 to 2018.

The study uses 3,821 firm-year observations from non-financial firms listed on the Pakistan Stock Exchange (PSX). For the estimation, pooled ordinary least squares (OLS) with industry- and year fixed effects and two-step system generalized methods of moments (GMM) are used.

The study finds that group-affiliated firms outperform independent firms in accounting performance, while underperform in market performance. The outperformance is mainly driven by medium-sized business groups, while underperformance is driven by small and large business groups. Further, the study documents that the underperformance in terms of market performance of firms affiliated with small and large groups is greater before the economic downturn, while outperformance in terms of the accounting measure of firms affiliated with medium-sized groups is greater during the economic downturn. These findings support our time-driven concerns. Overall, the authors' findings are consistent with institutional and transaction cost theories.

Business groups are important channels to reduce market inefficiencies. Business groups may enhance the affiliated firms' resources and resistance capacity through active utilization of the internal capital market, specifically when market conditions are not ideal for affiliates. However, effective utilization of internal capital markets depends on group size. Therefore, investors should deliberate on the size of business groups and diversification within business groups.

The authors extend the literature by providing fresh evidence related to the performance of business groups in the Pakistani context while accounting for the role of the size of business groups.