Search results

1 – 10 of 16
Open Access
Article
Publication date: 17 July 2019

Zakariya Mustapha, Sherin Kunhibava and Aishath Muneeza

This paper aims to highlight resolution of Islamic finance dispute by common law-oriented courts in Nigeria with respect to Sharīʿah non-compliance and legal risks…

1731

Abstract

Purpose

This paper aims to highlight resolution of Islamic finance dispute by common law-oriented courts in Nigeria with respect to Sharīʿah non-compliance and legal risks thereof, as well as the lesson to learn from Malaysia in that regard. This is with view to ensuring Sharīʿah compliance and legal safety of Islamic finance practice as prerequisites for sustainability of the Nigerian Islamic finance industry.

Design/methodology/approach

A qualitative method was used; interviews were conducted with different categories of experts and primary data collected in relation to Sharīʿah non-compliance and legal risks in adjudicating Islamic finance dispute by civil courts and the role of expert advice as basis for court referral to Financial Regulation Advisory Council of Experts. A doctrinal approach was adopted to analyse relevant legislative provisions and content analysis of secondary data relevant to applicable provisions in matters of finance before civil courts.

Findings

The paper discovers an indispensable role of conventional financial regulations in sustaining Islamic finance industry. Appropriate laws for Islamic finance under the conventional framework foster legal safety and Sharīʿah compliance of Islamic finance activities in related cases handled by courts. Nigeria civil courts can aid sustainability of Islamic finance when so equipped and enabled by laws that address apparent Sharīʿah non-compliance and legal risks in judicial dispute resolution. Inadequate legal provisions for dispute resolution breeds Sharīʿah non-compliance and legal risks in Islamic finance, undermine its prospects and stand inimical to its sustainability.

Research limitations/implications

This research is limited by its focus on Sharīʿah non-compliance and legal risks alone, which emanate mainly from judicial resolution of Islamic finance dispute by Nigerian civil courts.

Practical implications

This research seeks to motivate a determined and deliberate regulatory action and change in approach towards addressing apparent risks associated with Islamic finance while resolving disputes therein by civil courts. It has implications on common law jurisdictions generally that adopt similar approach as Nigeria's while introducing Islamic finance into their conventional finance framework.

Originality/value

Dispute resolution and other regulatory functions of civil courts are important to Islamic finance though apparently overlooked while introducing Islamic finance in Nigeria as in other emerging jurisdictions. This research ascertains the role of the civil courts as indispensable for Islamic Financial Institution (IFIs) operations and demonstrates that such courts are needed for the development and sustainability of Islamic finance industry. The research demonstrates the end-to-end requirement of Sharīʿah compliance of Islamic financial transactions as absolute and needs be ensured and guarded at dispute resolution level by properly equipped courts.

Details

ISRA International Journal of Islamic Finance, vol. 11 no. 2
Type: Research Article
ISSN: 0128-1976

Keywords

Open Access
Article
Publication date: 4 January 2021

Sherin Kunhibava, Zakariya Mustapha, Aishath Muneeza, Auwal Adam Sa'ad and Mohammad Ershadul Karim

This paper aims to explore issues arising from ṣukūk (Islamic bonds) on blockchain, including Sharīʾah (Islamic law) and legal matters.

2852

Abstract

Purpose

This paper aims to explore issues arising from ṣukūk (Islamic bonds) on blockchain, including Sharīʾah (Islamic law) and legal matters.

Design/methodology/approach

A qualitative methodology is used in conducting this research where relevant literature on ṣukūk was reviewed. Through a doctrinal approach, the paper presents analyses on the practice of ṣukūk and ṣukūk on blockchain by discussing its legal, Sharīʾah and regulatory issues. This culminates in a conceptual analysis of blockchain ṣukūk and its peculiar challenges.

Findings

This paper reveals that digitizing ṣukūk issuance through blockchain remedies certain inefficiencies associated with ṣukūk transactions. Indeed, structuring ṣukūk on a blockchain platform can increase transparency of underlying ṣukūk assets and cash flows in addition to reducing costs and the number of intermediaries in ṣukūk transactions. The paper likewise brings to light legal, regulatory, Sharīʾah and cyber risks associated with ṣukūk on blockchain that confront investors, practitioners and regulators. This calls for deeper collaboration in research among Sharīʾah scholars, lawyers, regulators and information technology experts.

Research limitations/implications

As a pioneering subject, the paper notes the prospects of blockchain ṣukūk and the current dearth of literature on it. The paper would assist relevant Islamic capital market entities and authorities to determine the potential and impact of blockchain ṣukūk in their respective businesses and the financial system.

Practical implications

Blockchain ṣukūk will assist in addressing issues inherent in classical ṣukūk and in paving the way to innovative solutions that will facilitate and enhance the quality of ṣukūk transactions. For that, ṣukūk would require appropriate regulatory technology to address its governance and regulation peculiarities.

Originality/value

Integrating ṣukūk with blockchain technology will add value to it. The paper advances the idea that blockchain ṣukūk revolutionises ṣukūk and enhances its practice against known inadequacies.

Details

ISRA International Journal of Islamic Finance, vol. 13 no. 1
Type: Research Article
ISSN: 0128-1976

Keywords

Article
Publication date: 12 November 2020

Zakariya Mustapha, Sherin Binti Kunhibava and Aishath Muneeza

The purpose of this paper is to review the literature on Islamic finance vis-à-vis legal and Sharīʿah non-compliance risks in its transactions and judicial dispute…

Abstract

Purpose

The purpose of this paper is to review the literature on Islamic finance vis-à-vis legal and Sharīʿah non-compliance risks in its transactions and judicial dispute resolution in Nigeria. This is with a view to putting forward direction for future studies on the duo of legal and Sharīʿah non-compliance risks and their impact in Islamic finance.

Design/methodology/approach

This review is designed as an exploratory study and qualitative methodology is used in examining relevant literature comprising of primary and secondary data while identifying legal risk and Sharīʿah non-compliance risks of Nigeria’s Islamic finance industry. Using the doctrinal approach together with content analysis, relevant Nigerian laws and judicial precedents applicable to Islamic finance practice and related publications were examined in determining the identified risks.

Findings

Undeveloped laws, the uncertainty of Sharīʿah governance and enforceability issues are identified as legal gaps for Islamic finance under the Nigerian legal system. The gaps are inimical to and undermine investor confidence in Nigeria’s Islamic finance industry. The review reveals the necessity of tailor-made Sharīʿah-based regulations in addition to corresponding governance and oversight for a legally safe and Sharīʿah-compliant Islamic finance practice. It brings to light the imperative for mitigating the legal and Sharīʿah non-compliance risks associated with Islamic finance operations as crucial for Islamic finance businesses, Islamic finance institutions and their sustainable development.

Research limitations/implications

Based on content analysis, the review is wholly doctrinal and does not involve empirical data. Legal safety and Sharīʿah compliance are not to be compromised in Islamic finance operations. The review would assist relevant regulators and investors in Islamic financial enterprises to understand and determine the impact and potential ramifications of legal safety and Sharīʿah non-compliance on Islamic Finance Institutions.

Practical implications

This study provides an insight into the dimensions and ramifications of legal and Sharīʿah non-compliance risks of Nigeria’s Islamic finance industry. This study is premised on the imperative for research studies whose outcome would inform regulations that strike a balance between establishing Islamic financial institution/business and ensuring legal certainty and Sharīʿah compliance of their operations. This study paves way for this kind of research studies.

Originality/value

The findings and discussions provide a guide for regulators and researchers on the identification and mitigation of legal and Sharīʿah non-compliance risks in Islamic finance via a literature review. This study, the first of its kind in Nigeria, advances the idea that research into legal and Sharīʿah non-compliance risks of Islamic financial entities is key to mitigating the risks and fostering the entities and their businesses.

Details

International Journal of Law and Management, vol. 63 no. 2
Type: Research Article
ISSN: 1754-243X

Keywords

Content available
Article
Publication date: 16 July 2021

Aishath Muneeza and Zakariya Mustapha

There is a misconception that Hajj and Umarah is just a worship matter and the consequences of suspending these religious gathering due to the pandemic is only limited to…

1128

Abstract

Purpose

There is a misconception that Hajj and Umarah is just a worship matter and the consequences of suspending these religious gathering due to the pandemic is only limited to delay of going Saudi Arabia to perform it. However, the purpose of this paper is to focus on the impact of the pandemic in Hajj and Umrah by exploring its impact on different stakeholders affecting its disruption due to the pandemic.

Design/methodology/approach

This is a library-based study that uses qualitative method to explore the impact of COVID-19 on Hajj and Umrah. Thus, provisions of Quran and hadith on Hajj and Umrah were examined as primary data for the research to establish the importance of the rituals in Islam. Guidelines set by Hajj regulators and instruments enabling them in that behalf were examined likewise. In addition, content analyses were made of relevant secondary data from published sources including articles, books, newspapers and web resources that embody scholarly, scientific and religious views on the issue being studied.

Findings

It is realised that in the first year of the pandemic, while Umrah is entirely suspended, Hajj was scaled back and performed by 10,000 people altogether, a tiny segment of the over two and half million that partook in the ritual previously. Hajj and Umrah have been greatly inhibited and jeopardised by the COVID-19 pandemic resulting in religious, social, economic, psychological effects on the eligible but affected Muslims and Muslims countries. Along these lines, recommendations were accordingly proffered on the way forward to better Hajj and Umrah management.

Originality/value

It is anticipated that the findings of the research would assist policy makers to comprehend the impact of the pandemic on Hajj and Umrah to ensure that the policies they make in this regard would adequately cover every aspect affecting the stakeholders which is deliberated in this research. It is also expected that the recommendations provided in this paper will assist stakeholders of Hajj and Umrah to grasp the importance of taking precautions for any crisis similar to COVID-19 when it happens.

Details

Journal of Islamic Accounting and Business Research, vol. 12 no. 5
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 25 July 2019

Aishath Muneeza, Zakariya Mustapha, Fathimath Nashwa Badeeu and Aminath Reesha Nafiz

The purpose of this paper is to formulate ways in which Maldives could pioneer Islamic tourism on a befitting framework and financing structure as a leverage to develop…

Abstract

Purpose

The purpose of this paper is to formulate ways in which Maldives could pioneer Islamic tourism on a befitting framework and financing structure as a leverage to develop its tourism industry.

Design/methodology/approach

The research uses qualitative approach whereby primary and empirical data on tourism practices as well as relevant laws and guidelines, issued in Maldives and in other Muslim jurisdictions of the Muslim, are analyzed. Doctrinal approach is used in analyzing secondary data on the subject.

Findings

The research reveals the potential of Islamic tourism in Maldives as well as the challenges that have constrained its development in the country. Certainty is needed in halal products, services and conducts. Codifying extant Maldives Halal Tourism Standards will establish legal framework for a standard Shariah-compliant tourism industry. Islamic financing structure enables mobilizing required funds and address financing constraints.

Practical implications

This research presents an insight into establishing and developing Islamic tourism industry in the Maldives. Harmonizing tourism regulations with Shariah shall bring about the required consciousness on Shariah compliance in target tourists and their desires. Private individuals can contribute in mobilizing the much needed Shariah-compliant resources to finance Islamic model resorts befitting an Islamic tourism industry.

Originality/value

The research puts forward proposal that identifies and recognizes a more viable Islamic financing alternative as well as Shariah-compliant regulations to pioneer the development of Islamic tourism in Maldives. The research recommends how to overcome related challenges helps government understand the proposed strategies for establishing Islamic tourism industry.

Details

Journal of Islamic Marketing, vol. 11 no. 4
Type: Research Article
ISSN: 1759-0833

Keywords

Open Access
Article
Publication date: 21 February 2020

Aishath Muneeza and Zakariya Mustapha

The purpose of this paper is to explore the application of Kafalah in the practice of Islamic banking in Malaysia generally and ascertain applicable rules governing the…

10324

Abstract

Purpose

The purpose of this paper is to explore the application of Kafalah in the practice of Islamic banking in Malaysia generally and ascertain applicable rules governing the application under relevant legislations and Shariah. The study also aims to examine the legislations in the light of Shariah provisions governing Kafalah and propose amendments.

Design/methodology/approach

This is a qualitative research where primary data sources mainly legislations and secondary sources comprising of articles and books on the subject of Kafalah were examined. It is an exploratory legal research that primarily focuses on library studies and adopts doctrinal approach for content analysis of data from the identified sources.

Findings

Kafalah is widely used in Islamic banking in Malaysia with primary or secondary application in structuring such products/services as personal guarantee, bank guarantee, Islamic credit card among others. The substantive law applicable to Kafalah in Islamic banking in Malaysia is the Contracts Act 1950 as decided cases indicate. However, provisions of the Act are at variance with rules of Shariah applicable to Kafalah on absolution of guaranteed debtor, multiple guarantors’ liability towards guaranteed sum as well as recourse and recovery from principal debtor.

Research limitations/implications

This research explored the practice of Kafalah in Islamic banking under Malaysian legal framework based on the available literature. The research does not embody an empirical evaluation.

Originality/value

This research suggests, with respect to the identified issues, an amendment to the Act for clarification as follows: that recourse and recovery from principal debtor is only where creditor has requested guarantor to settle outstanding debt, that presence of surety does not absolve principal debtor from his original liability and that multiple guarantors stand as having equal responsibility towards guaranteed amount. The research findings will assist policy and law makers to harmonize the relevant laws with the Shariah to facilitate sustainable development of Islamic banking.

Details

PSU Research Review, vol. 4 no. 3
Type: Research Article
ISSN: 2399-1747

Keywords

Article
Publication date: 16 March 2020

Aishath Muneeza and Zakariya Mustapha

This paper aims to examine existing Halal certification regime in Maldives and address impediments therein that challenge and inhibit the growth of the country’s Halal…

Abstract

Purpose

This paper aims to examine existing Halal certification regime in Maldives and address impediments therein that challenge and inhibit the growth of the country’s Halal industry in relation to fisheries products.

Design/methodology/approach

This is qualitative research based on first-hand experiences of the authors in the Halal certification process in the Maldives. Doctrinal methodology is used in the analysis of primary sources of data, including Maldivian laws and Halal certification regulations to identify issues of practical relevance. This is complemented with content analysis of secondary data sourced from journal articles, books, reports and online databases that were examined in identifying hindrances and loopholes in the Halal certification process.

Findings

Fish is generally Halal, but processed fisheries products cannot be so deemed when certain additives and enhancers are constituents therein. At the moment, Maldives Halal certification pertains only to fisheries products. Against this backdrop, this research identifies knowledge gap, legal and governance constraints pertaining to capacity as impediments towards the Halal certification of such products in the Maldives. Such concerns hinder the Maldives from tapping the socio-economic benefits of the Halal certification of its fisheries products to the desired level in the development of its Halal industry.

Research limitations/implications

This is pioneer research with reference to the Maldives. Absence of researches on the subject brings about scantily available secondary data in the area. Moreover, no empirical data were involved in conducting the research.

Practical implications

As the only products subject of Halal certification process, this research offers an insight into the regulations underpinning Halal certification of fisheries products and related impediments thereto in developing the Maldivian Halal industry generally. Identifying and understanding the impediments to Halal certification process would facilitate their elimination and promote Halal certified fisheries products.

Originality/value

This research highlights and evaluates the Halal certification regime in the Maldives and provides a starting point for further research thereon. The research contributes towards making robust and standard Halal certification criterion and paves the way forward for developing the Halal industry in the Maldives.

Details

Journal of Islamic Marketing, vol. 12 no. 2
Type: Research Article
ISSN: 1759-0833

Keywords

Book part
Publication date: 20 January 2022

Sherin Kunhibava, Zakariya Mustapha, Aishath Muneeza, Auwal Adam Sa'ad and Mohammad Ershadul Karim

COVID-19 pandemic was a health crisis that plunged the world into economic turmoil due to its resultant national lockdowns across economies which brought business and…

Abstract

COVID-19 pandemic was a health crisis that plunged the world into economic turmoil due to its resultant national lockdowns across economies which brought business and market activities to a standstill. In order to adapt to ensuing restrictions owing to the pandemic, forge ahead in a new way of living, work and interactions with one another (new normal), digitizing business and market operations is considered a necessary option. Sukuk is an essential Islamic capital market product whose operations involve multiple parties/intermediaries alongside some technical financial, administrative and legal/shariah processes. On this note, this chapter aims to study and examine the need for digitizing and automating sukuk operations and related activities to pave way for innovation, development and better continuity of sukuk market. In conducting the study, a review of literature approach is employed where relevant works on sukuk and fintech were examined. Using content analysis, the chapter explored digitization of sukuk in the Islamic capital market via fintech and blockchain and associated benefits, including peculiar challenges therein. An interview was also conducted to better understand the Wethaq case study. The chapter reveals that digitizing sukuk issuance adds value to sukuk and remedies certain inadequacies associated with sukuk transactions; can increase transparency of underlying sukuk assets and cash flows and can reduce costs due to lesser number of intermediaries. Digitization is the future of sukuk issuance and will promote sukuk well through the COVID-19 crisis and beyond.

Details

Towards a Post-Covid Global Financial System
Type: Book
ISBN: 978-1-80071-625-4

Keywords

Open Access
Article
Publication date: 8 June 2021

Beebee Salma Sairally

121

Abstract

Details

ISRA International Journal of Islamic Finance, vol. 13 no. 1
Type: Research Article
ISSN: 0128-1976

Open Access
Article
Publication date: 9 December 2019

Beebee Salma Sairally

362

Abstract

Details

ISRA International Journal of Islamic Finance, vol. 11 no. 2
Type: Research Article
ISSN: 0128-1976

1 – 10 of 16