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The purpose of this study is to present a framework regarding the use of Sharīʿah non-compliant assets as rahn (pledge) and to provide the Sharīʿah analysis on the application of numerous collateral instruments, including financial assets such as shares, unit trusts, current accounts and investment accounts which are Sharīʿah non-compliant.

The study adopts a library-based approach to examine the concept and requirements of rahn, deliberate the classification of Sharīʿah non-compliant assets and delineate the Sharīʿah views on the use of Sharīʿah non-compliant assets as pledges. It also examines the various forms of pledge available and offered in the market using document analysis as well as through discussion with industry practitioners.

In general, the study concludes that Sharīʿah non-compliant assets, either due to their essence or due to the means of acquisition where there is no ownership from Sharīʿah perspective, cannot be used as rahn. This study also provides the Sharīʿah analysis on the use of modern instruments such as shares, unit trusts, current accounts, investment accounts and insurance policy as pledges.

The paper provides a reference source for regulators in formulating an appropriate policy and framework on Sharīʿah-compliant collateral; Sharīʿah committees of Islamic financial institutions in arriving at Sharīʿah decisions on collateral; and industry practitioners in establishing internal policies and procedures on collateral.

Tawarruq (Islamic commodity financing) has evolved as the most ubiquitous concept in Malaysia’s Islamic banking industry. Nevertheless, the extensive use of tawarruq has invoked a number of Sharīʿah (Islamic law) concerns in its practice. This study aims to investigate the Sharīʿah non-compliant (SNC) phenomena in the practice of tawarruq financing in Malaysia.

This study adopts qualitative research methodology, combining both descriptive and content analysis. A self-administered questionnaire was distributed to 16 Malaysian Islamic commercial banks to unveil the Sharīʿah non-compliance issues in the application of tawarruq in Islamic banks (IBs) in Malaysia.

The study found that some practices of tawarruq in Malaysia might not comply with the Sharīʿah, mainly due to the improper sequencing of contracts. The study also discovered that IBs adopt different approaches in dealing with SNC events and the income derived therefrom. Finally, the study noted the influence of board of director/management on certain Sharīʿah decisions particularly on the treatment of non-ḥalāl (impermissible) income.

The findings of the study serve as a reference to industry players and regulators in formulating a Sharīʿah non-compliance risk management framework for tawarruq practices.

The survey on SNC issues in tawarruq practice constitutes the first of its kind in the existing literature.

This paper introduces the concept of manihah and develops a conceptual framework to address Malaysia's abandoned lands and food security issues.

This is a conceptual paper based on insights from the existing literature and secondary data on food security, abandoned lands and manihah. Based on the prevailing gaps, the study proposes a conceptual framework of the Manihah Agricultural Financing Model to address Malaysia's abandoned land and food security issues.

The proposed model can address abandoned lands and food security issues due to the new incorporation of manihah within Malaysia's agricultural and Islamic financial industries' milieu.

This is a conceptual paper mainly intended to spark a discussion on the potentiality of manihah.

The paper contends that Islamic banks have a crucial role in furthering the socio-economic development agenda under the value-based intermediation (VBI). The paper will also be an excellent introduction to Islamic bank practitioners in understanding manihah's relevance to their daily operation.

This paper introduces manihah as the potential solution to food security issues by utilizing abandoned lands.

This study aims to uncover the determinants of Islamic financial inclusion in Indonesia.

This study uses the analytic network process (ANP) to gather expert opinions and responses from academics, regulators and practitioners.

The ANP analysis discovered that the level of Islamic financial inclusion in Indonesia is influenced by two main drivers: the supply and the demand. The demand factors for Islamic financial inclusion, ranked based on their level of significance, are as follows: financial literacy (0.27), religious commitment (0.22), socioeconomic factor (0.19) and social influence (0.17), respectively. From the supply side, primary catalysts for Islamic financial inclusion based on their level of importance are human capital (0.32), product and services (0.24), infrastructure (0.18) and policies and regulation (0.17), respectively.

The present study does not include the Islamic insurance sector in its determinant framework of Islamic financial inclusion in Indonesia.

This study serves as a reference for regulators in formulating appropriate policy strategies to strengthen the Islamic financial inclusion in Indonesia.

This study is a pioneer attempt to identify distinctive factors that influence the level of Islamic financial inclusion in Indonesia by analyzing expert opinions from diverse groups of Islamic finance stakeholders.

The chapter aims to examine the challenges and the opportunities for the development of Islamic stockbroking in Malaysia.

The chapter adopts library research to discuss the concept of Islamic stockbroking. It also employs a semi-structured interview with industry players to prognosticate the future development of Islamic stockbroking in Malaysia.

The study concludes that the future of Islamic stockbroking in Malaysia is very promising, triggered by drivers on both the supply side and the demand side. The large Muslim population, wealth and economic growth are among the key factors for the development of Islamic stockbroking from the demand side. On the other hand, the Shari’ah compliance of 89% of Malaysian stocks, Malaysia’s position as an Islamic finance hub and the natural progression of Islamic finance are all factors underpinning the future of Islamic stockbroking from the supply side. However, lack of qualified human resources, political inconsistency, information technology infrastructure, product innovation as well as public perception are obstacles to its development.

This chapter will add new literature in contemporary Islamic finance, as not many studies have been done on the subject.

This paper aims to present the results of a comprehensive literature review with regard to the application of Tawarruq in the Islamic banking system covering the period between 2011 and before. The review aims to synthesize the previous research, capsulize the structural overview inasmuch as future research might be oriented and identify the gaps and direction for future research.

A range of published and unpublished documents was collated and filtered based on the defined rules to identify the determinants of the writing. The documents were then be classified into few segments in which content analysis was conducted to capsulize the essence of the subject matter described in the literature.

The analysis demonstrates that most of the studies discussed the fundamental theories which concerning the area of jurisprudence, while a few of them did discuss the application aspect in the banking environment. However, none of the operational process is discussed in-depth, whereas the risk of Shari’ah non-compliance might arise in the detail transaction.

The databases used in the search might not contain all the documents that could be relevant for the review. Furthermore, the defined-rule for document searching and selection excluded the out-of-scope documents that might be relevant.

This paper identifies the gaps that become apparent in the literature in assisting researchers to ascertain the interesting areas as well as the direction for future research.

This study aims to investigate the influence of religiosity (intrinsic and extrinsic) and halal literacy on the intention of Muslim consumers to purchase halal branded food products in India. An extended version of the theory of planned behaviour (TPB) was used as a framework. Apart from religiosity and halal literacy, the influence of attitude, social norms and perceived behavioural control of halal on buying intention were also tested.

The study uses a survey design. The data were collected from 350 individual respondents, using a closed-ended, structured questionnaire. The quality of the measurement model has been assessed through reliability testing, factor loading, average variance extracted and Fornell-Larcker criterion. The test of hypotheses was conducted by performing the partial least square structural equation modelling.

The result of hypotheses testing shows that both intrinsic and extrinsic types of religiosities did not have a direct influence on buying intention. However, religiosity (extrinsic and intrinsic) and halal literacy have significant relationships with most of the antecedents of the intention of the TPB. In addition, both kinds of religiosities (extrinsic and intrinsic) and halal literacy had a significant indirect effect (through TPB antecedents) on buying intention.

Muslim population in India is one of the largest in the world, yet there is a lack of popular halal branded food products in the market. Nevertheless, few researchers have attempted to study the consumer behaviour of the Muslim population for halal products in India. A large amount of research work on halal food behaviour is from countries such as Malaysia and Indonesia, where the Muslim population is in the majority and halal brands are already popular. Further, this paper studies the impact of dimensions of religiosity, which has been overlooked by researchers studying the halal food purchasing behaviour. The study also explores the impact of halal literacy, an understudied construct in halal marketing literature. The present study is amongst the earliest empirical research based on Muslim consumers in India on the topic of halal branded food products.