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Article
Publication date: 6 January 2021

Mehmet Asutay and Isa Yilmaz

This study aims to theoretically explore and examine the possibility of developing an Islamic social welfare function (ISWF) within the Islamic moral economy (IME) frame…

Abstract

Purpose

This study aims to theoretically explore and examine the possibility of developing an Islamic social welfare function (ISWF) within the Islamic moral economy (IME) frame by going beyond the traditional fiqhī approach. It focuses on issues of preference ordering and utility through the normative dimension of Islamic ontology, as expressed and articulated within the IME.

Design/methodology/approach

Being a theoretical paper, a conceptual and critical discursive approach is used in this paper.

Findings

To establish an ISWF, a narrow juristic approach remains inadequate; there is a need to integrate the substantive morality to complement the juristic approach to achieve the ihsani process as the ultimate individual objective, which makes an ISWF possible. As the scattered debate on the topic concentrates mainly on the juristic approach, the main contribution of this study is to present a model in which juristic and moralist positions endogenized and augmented to constitute ISWF.

Originality/value

As there is a limited amount of research available on the subject matter, this paper will be an important theoretical contribution. In addition, this study develops an IME approach rather than fiqh-based approach used in the available research, which makes it novel.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 14 no. 3
Type: Research Article
ISSN: 1753-8394

Keywords

Open Access
Article
Publication date: 4 August 2020

Mohammad Abdullah

This paper aims to analyse the Sharīʿah premises of waqf (Islamic endowment), followed by dilating on the nature of argumentation among the classical jurists on its rules…

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Abstract

Purpose

This paper aims to analyse the Sharīʿah premises of waqf (Islamic endowment), followed by dilating on the nature of argumentation among the classical jurists on its rules and principles. The paper critically analyses the edifice of the applied juristic analogy of different early jurists in deriving various waqf doctrines. The objective of analysing the jurisprudential framework of waqf in its classical mould is to conceptualise the methods, mechanism and nature of juristic analogies in deriving the waqf principles. This analysis is critical to understand the scope of jurisprudential flexibility in modern awqāf.

Design/methodology/approach

The paper is an outcome of a library-based research. It uses the classical jurisprudential treatises of waqf with an aim to analyse the Sharīʿah basis of the institution, the premises of its key principles and the applied juristic analogy to derive the same. The paper covers the classical waqf books and treatises from the four Sunni schools of jurisprudence and uses a textual analysis method.

Findings

The paper finds that in its initial phase, the conceptual framework of waqf was not unanimously agreed by all jurists, rather its Sharīʿah permissibility remained critically disputed among them for a while. Though, the opinion of those jurists who approved the Sharīʿah-validity of waqf was to prevail in the later stage, disagreement persisted with reference to its necessary features and defining criteria. It is found that in the classical waqf literature, two most disputed aspects of waqf jurisprudence constituted the requirements for completion of a waqf and its ownership status.

Research limitations/implications

This study neither covers the historical contribution of waqf among the Muslim societies nor touches on the empirical aspects of modern waqf. Rather, the focus of the study is limited to analysing the classical jurisprudential discourse of waqf and distillation process of its rulings.

Practical implications

The objective of analysing the classical juristic discourse of waqf is to underline the premises of classical juristic analogy in determining the framework of fiqh al-awqāf (jurisprudence of waqf) in its classical permutations and to learn how to adopt a similar approach for deduction of new waqf rulings.

Originality/value

This paper adds original value to the body of waqf literature for analysing the classical waqf rulings distillation process along with examining the methods and mechanism of juristic analogy.

Details

ISRA International Journal of Islamic Finance, vol. 12 no. 2
Type: Research Article
ISSN: 0128-1976

Keywords

Open Access
Article
Publication date: 2 December 2019

Suheyib Eldersevi and Razali Haron

This study aims to examine the resolutions issued by the Sharīʿah Advisory Council of Bank Negara Malaysia (SAC-BNM), which have recognized maṣlaḥah (public interest) as…

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Abstract

Purpose

This study aims to examine the resolutions issued by the Sharīʿah Advisory Council of Bank Negara Malaysia (SAC-BNM), which have recognized maṣlaḥah (public interest) as the basis of ruling to see the extent of its usefulness to the public and the extent of its adherence to the maṣlaḥah parameters. The study will also look into the opposing opinion to identify the basis of rejection and overall implication on Islamic finance based on opposing opinions of SAC-BNM and other bodies of collective ijtihād (juristic interpretation).

Design/methodology/approach

The study uses a qualitative approach by analyzing the SAC-BNM resolutions, which have been resolved based on maṣlaḥah. The study also applies the comparative approach by comparing the fatwa (Sharīʿah pronouncement) issuing bodies of Malaysia and the Gulf Cooperation Council countries. Furthermore, the secondary data is obtained from sources such as uṣūl al-fiqh (theory of Islamic jurisprudence) books, papers and relevant internet sources.

Findings

The study found that SAC-BNM’s resolutions are in line with some of the major maṣlaḥah parameters mentioned in the uṣūl al-fiqh sources i.e. must not contradict with the Qurʾān and the Sunnah. While looking at the other two criteria of being in line with ijmāʿ (consensus) and having a general impact, such resolutions might not fulfill the criteria of valid maṣlaḥah considering, respectively, the stand of collective ijtihād or the impact on the group of customers and institutions.

Originality/value

Most available shari’ah (Islamic law) research considers the perspective of fiqh (Islamic jurisprudence) while analyzing the issue of maṣlaḥah. This study aims to conduct analysis based on uṣūl al-fiqh. Moreover, maṣlaḥah itself is a broad concept, which can be abused. Hence, this study discusses the parameters of maṣlaḥah to understand the validity of an important juristic tool in Sharīʿah.

Details

ISRA International Journal of Islamic Finance, vol. 12 no. 1
Type: Research Article
ISSN: 0128-1976

Keywords

Article
Publication date: 27 September 2019

Saheed Abdullahi Busari, Akhtarzaite AbdulAziz, Luqman Zakariyah and Muhammad Amanullah

This study aims to analyse the facts of the case in the judgement made by the High Court of Justice, England, UK, in the case of Dana Gas Public Joint Stock Company (PJSC)

Abstract

Purpose

This study aims to analyse the facts of the case in the judgement made by the High Court of Justice, England, UK, in the case of Dana Gas Public Joint Stock Company (PJSC) v. Dana Gas Sukuk Limited (Ltd.) and Ors.

Design/methodology/approach

This study uses descriptive and juristic analysis to explain the factual terms in the case of Dana Gas sukuk default. It also uses juristic opinions to analyse the underpinning argument in the Dana Gas court case between the decision of Sharjah Court, UAE, and the English Court, UK.

Findings

The study concluded that despite the position of Dana Gas PJSC that specific element of the muḍārabah sukuk is non-Sharī’ah-compliant, the English court decision which established the enforceability of the purchase undertaking seems to be fair based on the Islamic maxims such as “Difficult situation cannot violate the right of other” and “The conditional matters among Muslims are binding.”

Research limitations/implications

The impact of this study is that Dana Gas sukuk default has thought stakeholders of Sukuk investment lessons on the importance of documentation and consideration of tighter clauses to ensure its bindingness in the law court. Hence, this study is expected to be a contribution towards the call for standardization of the role of Sharī’ah scholars across the globe.

Originality/value

This study illustrates the fact in the case of Dana Gas sukuk default and analyses the court’s decision from a fiqh perspective.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 12 no. 4
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 15 November 2011

Bijan Bidabad

Many laws have been derived from the religions' legislations and lots of them have not the capability of uniqueness and publicity, due to variety of reasons, especially at…

Abstract

Purpose

Many laws have been derived from the religions' legislations and lots of them have not the capability of uniqueness and publicity, due to variety of reasons, especially at the level of countries. But the spirit of legislations is the same and unique in all religions and it is the Tariqah (Sufi path), Sufism, mysticism and ethical beliefs that have been stable and unchangeable for millennia, and wisdom has accepted and accepts them in all times and locations. Thus, if the international public law to be defined and designed upon the base of the unique religions' spirit, we will reach to a unique law with most publicity. The purpose of this paper is to survey the subjects of Islamic public international law, and extend Islamic jurisprudence decisions from a theosophical point of view over the field of international law.

Design/methodology/approach

The paper explores the foundation of public international law from the theosophy approach of Islamic Sufism and mysticism.

Findings

By raising 38 principles, the author proposes basic principles of important public international law subjects to prepare a backbone for recompilation of new law in this subject matter.

Research limitations/implications

Comparative researches in other religions' gnosticism will be helpful.

Social implications

Delicateness, truthfulness, and righteousness of Islamic Sufism, may turn the attentions of scholars and researchers to this viewpoint, and a new set of laws to be codified.

Originality/value

Public international law scholars have not touched the topic from a Sufi viewpoint. This paper opens new challenging arena.

Details

International Journal of Law and Management, vol. 53 no. 6
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 6 November 2017

Ehsanullah Agha Syed and Mustafa Omar

This paper aims to develop a Sharīʿah framework for using ḥiyal in Islamic finance. Ḥīlah (singular of ḥiyal) is an Islamic juristic term which refers to the application…

Abstract

Purpose

This paper aims to develop a Sharīʿah framework for using ḥiyal in Islamic finance. Ḥīlah (singular of ḥiyal) is an Islamic juristic term which refers to the application of acumen and ingenuity to avoid hardship in one’s commitment to Islamic rulings. It has been used as a legal device in Islamic jurisprudence to actualize a legitimate objective. Particularly, it plays a significant role in financial engineering, as it alleviates financial predicaments with remedies.

Design/methodology/approach

The study adopted qualitative method of research by using content analysis approach. Inductive reasoning is applied to drive legal provisions from Sharīʿah sources that would be used as basic principles to develop an objective measure for using ḥiyal in Islamic banking and finance.

Findings

This study attempted to identify the distinctive features of legitimate ḥiyal for the purpose of developing a Sharīʿah framework. It is observed that a ḥīlah would be considered permissible in Islamic finance if it meets the prescribed criteria of (1) Sharīʿah objectives, (2) user’s motivation, (3) means, (4) benefit and (5) concessionary rules. This proposed framework may serve as an ‘objective measure’ that will determine whether a ḥīlah based financial engineering aims to actualize a genuine economic need or to circumvent the prohibition of ribā.

Practical implications

The proposed standard of ḥiyal will enable Sharīʿah advisors, economists, financial engineer, legal experts and policy makers to develop comprehensive guidelines for using ḥiyal in Islamic financial engineering.

Originality/value

Islamic financial institutions rely heavily on ḥiyal to operate in a predominant conventional financial system. The application of these legal stratagems in Islamic finance has been the center of an intense debate between Islamic economists and jurists. The former argues that over-reliance on ḥiyal not only divorces morality from technicality but also defeats the noble purposes of Islamic economics. This paper provides a synthesis of the diverse views on the subject to facilitate a minimum level of convergence among scholars on the permissibility of ḥiyal.

Details

Qualitative Research in Financial Markets, vol. 9 no. 4
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 10 November 2020

Shinaj Valangattil Shamsudheen and Saiful Azhar Rosly

This paper aims to examine the influence of ethical judgement on decision-making behaviour related to ethical issues of Islamic banking practitioners in the United Arab…

Abstract

Purpose

This paper aims to examine the influence of ethical judgement on decision-making behaviour related to ethical issues of Islamic banking practitioners in the United Arab Emirates (UAE).

Design/methodology/approach

The study adopted a confirmatory approach in which validated/established “normative ethical standards” are taken into the consideration as theoretical underpinning. In total, 262 samples are collected from Islamic banking practitioners in the UAE and data analysis is conducted using structural equation modelling.

Findings

The empirical findings indicate that the decision-making behaviour related to ethical issues of Islamic banking practitioners in UAE does not adhere to any set of normative ethical standards and respondents are pragmatic in nature when it comes to the decision-making behaviour related to ethical matters.

Practical implications

The study elucidates to what extent Islamic banking practitioners have encountered themselves with situations that demand the proper attention to the ethical aspects, which affecting decision-making behaviour related to ethical issues. According to the findings, those situations considerably demand the attention of ethical judgement in the decision-making behaviour of Islamic banking practitioners. Hence, it is recommended for Islamic banks in UAE to contain or intensify the training on the importance of ethics, Islamic thought and worldview to enhance corporate decision-making and banking profitability within the purview of Islamic principles.

Originality/value

While ample emphasis has been given to the juristic (fiqh) aspects of Sharīʿah-compliant in Islamic banking and finance, relatively little has been attempted to explore its ethical dimensions (akhlaq) in the compliance parameters. Further, Sharīʿah-compliant has been product-centric rather than people-centric. While there is numerous literature documented that links ethics and Islamic banking and finance, ethical framework and practice in Islamic finance institutions, studies focusing on the “people” and their “ethical decision-making behaviour” in Islamic financial institutions found missing in the literature. These gaps serve as justification for undertaking this research.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 14 no. 2
Type: Research Article
ISSN: 1753-8394

Keywords

Open Access
Article
Publication date: 31 August 2021

Abdullahi Abubakar Lamido and Mohamed Aslam Haneef

This paper critically reviews and analyzes the trends in waqf studies within the Islamic economics literature. It analyzes the recent developments and debates in waqf

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Abstract

Purpose

This paper critically reviews and analyzes the trends in waqf studies within the Islamic economics literature. It analyzes the recent developments and debates in waqf reform and advances the argument for prioritizing research on waqf economics; the waqf dimension that is concerned with modelling how to utilize it to enhance productivity, consumption, redistribution, investment and saving, and generally contribute sustainably towards poverty reduction, economic empowerment and development.

Design/methodology/approach

The paper is conceptual in nature, focusing on a systematic historical analytical review of waqf studies in Islamic economics literature.

Findings

Despite the documented historic role of waqf in constructing the Muslim socio-economic architecture as the third economic sector and a mechanism for civilizational development and renewal, it received little attention in the early writings on modern Islamic economics. While the past one decade has witnessed a renewed interest in waqf research, most studies focus on its legal, juristic and administrative aspects in addition to the nostalgic reflections on its past glories. Little attention is comparatively given to the socio-economic aspect, which represents the actual raison d’être for its institutionalization.

Practical implications

An important task ahead of the current generation of Islamic economists is to formulate waqf-based development models that are rooted in proper diagnosis and deep understanding of the current socio-economic realities of the OIC member countries for the purpose of uplifting living standards and stimulating sustainable socio-economic development.

Originality/value

The paper contributes to the debate on priorities in waqf studies and practice and can trigger further discourses and research on the future of research in waqf economics.

Details

Islamic Economic Studies, vol. 29 no. 1
Type: Research Article
ISSN: 1319-1616

Keywords

Article
Publication date: 13 April 2015

Abdou DIAW

This paper aims to critically analyze the opinions of Islamic economists about the global financial crisis to examine: their views on the causes of the crisis, the juristic

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Abstract

Purpose

This paper aims to critically analyze the opinions of Islamic economists about the global financial crisis to examine: their views on the causes of the crisis, the juristic and economic assessment they make of these causes and the lessons learned and the way forward.

Design/methodology/approach

The paper critically reviews selected writings of prominent Islamic economics on the recent financial crisis.

Findings

Most of the authors reviewed acknowledged the technical mistakes put forth by many conventional analysts as causes of the crisis. However, they have showed that the adoption of the principles of Islamic finance would have prevented most of those mistakes. The way forward, therefore, for both Islamic and conventional finance is, inter alia, greater reliance on risk sharing to inject more discipline in the system; the establishment of a strong and comprehensive regulatory body to safeguard the resilience of the system; and the integration of Zakat, Awqaf and other voluntary institutions into the financial system to cater for the financial needs of the poor.

Practical implications

The importance of integrating the voluntary institutions into the financial system is to make it more inclusive and more equitable.

Originality/value

This paper is the most comprehensive literature review on Islamic finance and the global financial crisis.

Details

Journal of Islamic Accounting and Business Research, vol. 6 no. 1
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 23 November 2010

Adel Ahmed

The purpose of this paper is to initially contribute the literature linking the global financial crisis and the Islamic finance model which is competent of playing down…

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Abstract

Purpose

The purpose of this paper is to initially contribute the literature linking the global financial crisis and the Islamic finance model which is competent of playing down the severity and frequency of financial crises, by introducing the financial system based on sharing in the risk. It links credit expansion to the growth of the real economy by allowing credit primarily for the purchase of real goods and services which the seller owns and possesses, and the buyer wishes to take delivery. It also requires the creditor to bear the risk of default by prohibiting the sale of debt, thereby ensuring that he evaluates the risk more carefully. It is important for everyone's future that we study the current crisis in order to develop sustainable financial practices and in quest of a new business model based on sharing the profit and loss.

Design/methodology/approach

The divergence approach is used for exploring possibilities and constraints of inherited situations by applying critical thinking and analysis through the published literature in Islamic finance. This is to create new understandings of international finance and using new banking business model towards better design solutions for the current global financial crisis and preventing more collapse in the future.

Findings

A new business model for the banking system based on non‐interest‐based transactions but profit and loss sharing should be in practice at the financial system. The financial institutions should encourage business and trade activities that generate fair and legitimate profit. In Islamic finance, there is always a close link between financial flow and productivity. This intrinsic property of Islamic finance contributes towards insulating it from the potential risks resulting from excess leverage and speculative financial activities which are part of the root causes of the current financial crisis.

Research limitations/implications

This paper is based on published research papers but does not include empirical investigation.

Practical implications

The new business model based on Islamic finance principles will help in financing businesses by using alternative methods to the banking systems or as a different way to run our banking system. The Islamic finance system with proper checks and controls introduces greater discipline into the economy and links credit expansion to the growth of the real economy.

Originality/value

The paper sheds new light on the relationship between the Islamic finance model and a new business model for the financial institutions to be used in order to think through how to prevent future financial collapses and make capital markets work more effectively.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 3 no. 4
Type: Research Article
ISSN: 1753-8394

Keywords

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