Saeed Awadh Bin-Nashwan, Ismail Mohamed, Aishath Muneeza, Mouad Sadallah, Abba Ya’u and Muhammad M. Ma’aji
This study aims to investigate the intentions of Muslim cryptocurrency (CC) holders to fulfil their zakat obligations on digital assets, exploring the unique motivations and…
Abstract
Purpose
This study aims to investigate the intentions of Muslim cryptocurrency (CC) holders to fulfil their zakat obligations on digital assets, exploring the unique motivations and barriers within this emerging financial landscape.
Design/methodology/approach
The research uses a quantitative approach and a cross-sectional research design through online surveys, using purposive sampling to gather data from Muslim CC holders. The integrated model, known as the theory of planned behaviour and social cognitive theory (TPB-SCT) model, is used to comprehensively analyse the key factors influencing intentions to pay zakat on cryptocurrencies (CCs).
Findings
The study reveals that attitude towards zakat on CCs and perceived behavioural control regarding zakat on CCs have a significant and positive effect on the intention to pay. In contrast, subjective norms show no significant influence. CCs-related financial risk exerts a negative impact on intention. Moreover, CCs-related zakat knowledge and adherence to Shariah compliance are strongly associated with intention. These findings provide insights into the intricate dynamics of religious compliance within the evolving realm of digital assets.
Practical implications
Outcomes offer profound indications to stakeholders, including financial institutions, zakat agencies, policymakers and the community, on how to integrate zakat into this new and rapidly evolving financial paradigm like CC.
Originality/value
A pioneering effort was made in this study by exploring the intentions of Muslim CC holders to fulfil zakat obligations, bridging a significant gap in the existing literature. Developing and validating an integrated model of TPB-SCT in the realm of zakat on CC enriches the literature with a novel theoretical framework.
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M. Kabir Hassan, Aishath Muneeza and Ismail Mohamed
This paper aims to derive a compatible Shariah opinion on the permissibility of using cryptocurrencies by Muslims by reviewing the opinions expressed by Shariah scholars on the…
Abstract
Purpose
This paper aims to derive a compatible Shariah opinion on the permissibility of using cryptocurrencies by Muslims by reviewing the opinions expressed by Shariah scholars on the permissibility of cryptocurrencies.
Design/methodology/approach
This is a qualitative desk review research where the opinions expressed by the Shariah scholars on the permissibility of cryptocurrencies and the issues related to it have been analyzed using the literature. All the Shariah parameters checked pertaining to currencies have been studied and assessed to derive the Shariah opinion.
Findings
The research findings suggest that cryptocurrencies do not fully meet the characteristics of money according to Shariah principles. Scholars debate their classification as a medium of exchange due to concerns about volatility, intrinsic value and governance. The treatment of cryptocurrencies varies, and their decentralized nature prevents monopolization. Governance and resistance to manipulation are facilitated by blockchain technology. Classifying cryptocurrencies as hard money and their recognition as the primary unit of account face challenges. While they can be a store of value, price volatility and regulations must be considered. The network effect is crucial for their success, and their supply is controlled through complex protocols. These findings have implications for policymakers in Islamic finance.
Originality/value
The differences in Shariah opinions on using cryptocurrencies have been a major debate in the Islamic financial industry. A clear and comprehensive study is not found on the differences in the Shariah opinions on their reasonings, which is important for researchers and professionals in the field. Therefore, this research provides valuable insights for policymakers, scholars and practitioners in Islamic finance, contributing to the understanding of applying Islamic principles to cryptocurrencies.
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Aishath Muneeza, Sherin Kunhibava, Ismail Mohamed and Zakariya Mustapha
The primary objective of this research is to introduce a pioneering takaful model that provides both provision and protection to the aging population by combining the concept of…
Abstract
Purpose
The primary objective of this research is to introduce a pioneering takaful model that provides both provision and protection to the aging population by combining the concept of cash waqf with takaful. This model is designed to align with Shariah principles, ensuring sustainability and enduring impact.
Design/methodology/approach
This research adopts a qualitative methodology, where a focus group discussion was conducted with six stakeholders. The participants consisted of takaful operators, legal experts and other industry players. The participants were presented with the proposed cash waqf takaful model and their feedback was recorded. Legal issues related to linking waqf with takaful were also identified and discussed.
Findings
The study highlights the need for innovative financial solutions to support Malaysia's aging population. It proposes a cash waqf takaful model, leveraging crowd funding for sustainability. Legal hurdles and recommendations for overcoming them are discussed, along with suggestions for future research on quantitative validation and regulatory frameworks. Ultimately, the study emphasizes the holistic approach of the proposed model in addressing the well-being of Malaysia's senior citizens.
Practical implications
The proposed takaful model presents opportunities for takaful operators to integrate Islamic social finance into their operations, enabling easier access to takaful for the elderly community. By eliminating financial barriers, it can transform the takaful landscape, ensuring inclusivity and financial security for aging populations. Moreover, policymakers see it as a blueprint for sustainable financial solutions and social welfare enhancement globally.
Originality/value
The study introduces a novel cash waqf takaful model to support Malaysia's aging population, leveraging crowdfunding for sustainability. It addresses legal challenges unique to Malaysia and proposes collaboration with State Islamic Religious Authorities. Furthermore, it emphasizes the need for further research to validate the model's effectiveness and explores its potential global policy implications.
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Ahmad Hidayat bin Md Nor, Aishath Muneeza and Magda Mohsin
This study aims to develop a comprehensive insolvency model tailored to Islamic banks, ensuring alignment with Shariah principles throughout pre-insolvency, bankruptcy and…
Abstract
Purpose
This study aims to develop a comprehensive insolvency model tailored to Islamic banks, ensuring alignment with Shariah principles throughout pre-insolvency, bankruptcy and post-bankruptcy stages.
Design/methodology/approach
The research adopts a qualitative research method, using a desktop research approach. Primary sources and secondary sources are examined to gather information and draw conclusions.
Findings
This study presents a comprehensive insolvency model designed for Islamic banks, rooted in Shariah principles. The model covers pre-insolvency, bankruptcy (taflis) and post-bankruptcy stages, incorporating key Shariah parameters to ensure adherence to Islamic finance principles. It addresses challenges such as adapting to dynamic financial landscapes and varying interpretations of Shariah principles. Notably, the model recognizes the separate legal personality of Islamic banks and emphasizes transparency, fairness and compliance with religious obligations. In the post-bankruptcy stage, directors are urged to voluntarily settle remaining debts, aligning with ethical and Shariah-compliant standards.
Originality/value
The study contributes to the stability and growth of Shariah-compliant financial systems by extending insolvency principles to Islamic banks, providing a foundation for future research and policymaking specific to this context.
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Khairul Akmaliah Adham, Nadiah Mahmad Nasir, Aishath Sinaau, Aminath Shaznie and Ahmed Munawar
This study extends the current understanding of halal tourism at an island destination. Specifically, this study aims to explore the attributes of halal tourism in the local…
Abstract
Purpose
This study extends the current understanding of halal tourism at an island destination. Specifically, this study aims to explore the attributes of halal tourism in the local islands of the Maldives, a fully Muslim country where tourism is the primary source of income for residents. To accomplish this, Muslim travellers’ experiences were examined using the process theory of travel, the halal tourism concept and the service marketing perspective.
Design/methodology/approach
The study used a qualitative research methodology and conducted interviews with Muslim travellers visiting the local islands of the Maldives.
Findings
The findings affirmed the five established generic attributes of halal tourism and generated another three emergent attributes of halal tourism, specific to an island destination. The study further enhances the existing knowledge of the generic attributes of halal food and beverage, prayers and mutual respect and benefits. It also establishes that the dimensions of safety and privacy, value for money, perishability and heterogeneity characterise all the emerging halal tourism attributes. The study concludes that halal tourism is an experience imbued with values that promotes dignified tourism.
Originality/value
The findings on the specific attributes of halal tourism at an island destination extend overall understanding of the halal tourism concept and process. The fact that the Maldives is entirely Muslim offers a unique opportunity to explore the normative attributes of halal tourism in an island destination. This enhanced understanding contributes to effective managerial practices aimed at developing competitive halal tourism services.