Search results

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 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.

The purpose of this paper is to examine consumer behavior toward halal food purchase in Bangladesh. Specifically, how do individual beliefs about trustworthiness of the halal food products affect individual intentions to purchases and actual purchasing behavior?

To answer this question, a theoretical framework using the theory of planned behavior (TPB) as its basis was established. Using measurement scales created to assess different aspects of trustworthiness, and perceived behavioral control and subjective norms, a survey instrument was developed to test the various relationships implied by TPB. Data were collected from the households located in the metropolitan city of Dhaka during the months of November and December 2017, and the analysis of this data helps answer questions about the different relationships of the constructs of the study.

The findings of the study revealed that four factors, namely, trustworthiness, attitude, normative structure and self-efficacy, significantly influence halal food purchasing. The results also demonstrated that trustworthiness of halal food is one of the most important variables of food marketing in Bangladesh.

In reality, there is a serious lacking of halal food marketing particularly in Bangladesh. In this respect, this study can be a pioneer one and may have some limitations in terms of research procedures.

It is crucial for the halal food marketing and its management organizations to provide their products and services in Islamic way, because it is different from the conventional way of modern marketing.

This result specifically implies that like normative structure and self-efficacy, trust in the authenticity of halal food is particularly important to influence attitude toward halal food purchase in Bangladesh.

This study is perhaps the first study in the context of Bangladesh food market that deals with the halal food purchase behavior of the consumers. In this regard, the findings of the study are important in Islamic marketing and halal food marketing.

The purpose of this paper is to examine halal certification for halal culinary, destination brand and emotional experiences on customer satisfaction and behavioral intention.

This study uses a quantitative survey approach to 400 respondents consisting of Muslim foreign and domestic tourists who had visited Lombok in the past three years. The sampling technique is by purposive sampling. The analysis technique used in this study is structural equation modeling-partial least square (SEM-PLS).

The findings showed that halal certification has no effect on customer satisfaction but on influenced behavioral intention, destination brand of Lombok had no effect on customer satisfaction; customer satisfaction influenced behavioral intention and emotional experiences affected customer satisfaction and behavioral intention.

This study collects data from respondents both domestic and foreign tourists simultaneously. However, the data acquisition of respondents and foreign tourists is not balanced. Thus, this study analyzes tourists in general, not distinguished between foreign and domestic tourists.

The government and tourism organizers in Lombok need to provide socialization for domestic and foreign tourists on the need to choose halal-certified food and drinks to ensure halal and hygiene. In addition, so that the destination image of Lombok can provide a beautiful experience that becomes a moment of the truth, then the local government should improve its service strategy holistically.

Destination image needs to be improved. This requires holistic tourism quality services so that the social community knows that Indonesia has a halal tourism destination that exists as tourists come from the airport to the hotel and enjoy food in restaurants and tourist attractions that are Muslim friendly.

This paper contributes to filling the void in the literature related to tourism management that is linked to tourism in the aftermath of natural disasters, where empirical studies on halal tourism are on the rise. Therefore, respondents in the study were specific, that is, those who had traveled. To the best of the authors’ knowledge, this study is the first of a kind that includes behavioral intention in tourist destinations after natural disasters in the Indonesian context.