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The purpose of this paper is to analyse the Sharīʿah Basis of AAOIFI’s Sharīʿah Standard No. (60) – “Waqf” and gain an insight into the Islamic jurisprudential schools of thought depended on while drafting/issuing the standard.

This research uses a qualitative methodology and AAOIFI’s Sharīʿah Standard No. (60) – “Waqf” as a case study. This is referred to as a single/holistic case study design.

The findings of this study reveal that while AAOIFI’s Sharīʿah Standard No. (60) – “Waqf” did depend on the Maliki school of fiqh, it certainly referenced other jurisprudential schools of thought, such as Ḥanafī and Shāfiʿī schools of law. This raised a question of legal pluralism and how contemporary Sharīʿah jurisconsults are able to select rulings within particular Islamic jurisprudential schools to fit current needs and for the overall betterment of society.

This research does not delve into the technical aspects of AAOIFI’s waqf standard (furūʿ al-fiqh), but rather, is limited to understanding the basis of rulings therein and the jurisprudential schools of thought heavily depended on.

Given that the (revised) AAOIFI waqf standard is relatively new, limited studies have been conducted particularly focusing on the basis of Sharīʿah rulings therein. This research contributes to knowledge by providing one of the starting points to deliberate on this matter.

The purpose of this paper is to analyse the Islamic finance segment within the Updated Commercial Transactions Law in the UAE and opine whether the new alterations will have a significant impact on the Islamic financial industry in the UAE.

This research uses a qualitative methodology, and the UAE as a case study. A single/embedded case study design is adopted, to analyse several chapters within the Updated Commercial Transactions Law in the UAE (multiple units of analysis).

The study revealed that the introduction and incorporation of fiqhi and Islamic financial principles within the Updated Commercial Transactions law in the UAE was done so in its rudimentary form, indicating that its purpose was to enhance the UAE’s position as a leading global Islamic financial hub – as opposed to the sole purpose of its usage during disputes between counterparties.

This research is limited to the UAE as a case study and thus does not provide a comparative analysis with other GCC countries. A separate study would be required for a comparative analysis.

Given that the Updated Commercial Transactions Law in the UAE is relatively new, limited research papers have analysed this segment of the updated law in particular. This research, thus, contributes to knowledge by paving the way for future research pertaining to the same matter.

The low-income groups in developing nations need microcredits to support their family needs. As banks avoid providing microcredits due to high costs, microfinance institutions are the last resort for this segment of society. The cost of borrowing for the borrowers is indeed high. However, these microfinance institutions play a significant role in financial inclusion. In Muslim countries where financial inclusion takes a hit as a portion of society does not want to indulge in usury transactions, Islamic microfinance institutions play a vital role. In this chapter, the focus is on the Islamic microfinance institutions and their role in achieving the objectives of Shari'ah (maqasid al-Shari'ah) along with the fulfillment of goal of financial inclusion. A case study of Akhuwat Foundation found that the institution offers different interest-free microcredit products along with free healthcare and clothing to the needy segment of society. In this way, not only that the financial inclusion is achieved but also the objectives of Shari'ah are fulfilled. The study provides key facts to the academia and microfinance industry in achieving financial inclusion and fulfilling maqasid al-Shari'ah altogether, in which the banking sector is lacking.

Takaful has substantial prospects to obtain mutual protection, financial inclusion and sustainability of life and wealth. Structuring takaful with tabarrù triggers controversies and impedes achieving desired takaful outcomes. This study aims to investigate tabarrù-based takaful models and determine tàawun as the underlying notion of takaful.

The study employs a qualitative approach using semi-structured interviews to obtain primary data. Nineteen one-to-one interviews have been conducted with Sharìah and operational experts in the takaful industry. A thematic analysis method is utilised to investigate qualitative data.

The study finds that tabarrù contradicts the spirit of takaful. Donations cannot be subject to any form of refund, and receiving benefits from donations turns the arrangement into an exchange contract. Takaful participants never intend to make a pure donation while paying contributions. Moreover, tabarrù is not feasible for practicing any form of surplus sharing with participants. The study identifies that tàawun helps to overcome these issues and attain the potential of takaful. Tàawun facilitates benefit and surplus sharing with participants and others, eventually contributing to financial inclusion, solidarity and sustainability of the financial system.

Reflecting tàawun as the underlying notion, benefits of takaful can be shared with participants. Also, as a broader application of tàawun, subsidising different takaful operators by underwriting surplus can be practiced. Besides, tàawun allows surplus sharing with any charitable purpose, contributing to financial inclusion and public welfare.

The study contributes to Islamic insurance knowledge. It helps formulate policies and develop takaful products by integrating tàawun into takaful. Additionally, the study supports the idea of cross-subsidisation of underwriting surplus among diverse takaful operators.

The purpose of this paper is to find out the possible gaps in the Sharīʿah governance, and suggest how to fill the same, in line with the principles of Islamic finance and the global developments regarding social and value-based financial intermediation.

The paper uses secondary data gathered through analysis of documents and regulations to portray the current Sharīʿah governance framework and to suggest a unique paradigm to be adopted by the regulators of Islamic financial institutions.

The paradigm encompassing value-oriented financial ecosystem would need a comprehensive set of discipline, accountability and governance for making the pursuit of sustainable development goals and corporate social responsibilities effective in a well-defined schedule prepared and implemented by the regulators.

The scope of this research is limited to theory building in the light of emerging trends in responsible and social finance. It is not to empirically test the impact of the governance framework in terms of social justice, corporate responsibility and sustainability.

It would help the policy makers, regulators, researchers and the practitioners in finance to align banking and finance with social and environmental responsibility, and equity through governance and accountability for realizing the sustainable development goals.

It links the regulatory approaches to the emerging paradigm and ecosystem comprising sustainability and value-based governance, awareness and corporate social responsibility.

The paper adds value to the current regulatory frameworks enabling the Islamic financial institutions to realize the economic, social and sustainability objectives, in addition to Shariah legitimacy and enhanced credibility.

The purpose of this paper is to examine the Shariah governance mechanisms of takaful insurance and their impact on its financial performance.

The effect of Shariah governance mechanisms on financial performance is analyzed over 2012–2018 on a sample of 11 takaful listed insurances in the Middle East region. Using multiple regression models, four hypotheses addressing Shariah governance mechanisms are tested.

The findings generally reveal that Shariah governance has an impact on the financial performance of takaful insurance. The Shariah Supervisory Board (SSB) size, the members’ reputation and their qualifications are the main determinants of financial performance for listed takaful insurance.

This paper includes two main limitations that may affect the accuracy of the finding. First, the results are restricted to the Middle East region and may not be generalized to other regions. Second, the sample is dominated by UAE, i.e. 4 takaful insurances out of 11.

Both Shariah governance and regular governance have an impact on the financial performance of takaful insurance. Yet, the effect of Shariah governance is more robust. To improve its financial performance, takaful insurance should expand the size of the SSB, hiring reputable scholars and recruit doctors in Islamic economics.

This research studies takaful insurance, unlike the majority of other works that have focused on Islamic banks.

This study aims to explore the impact of instability on bank performance by examining how economic uncertainty interacts with the profitability of both Islamic and conventional banks (CBs) in Indonesia.

This study applies a quantitative methodology, applying dynamic linear analysis through autoregressive distributed lag estimation and leverages time-series data from Indonesia’s banks. Specifically, bank profitability is measured using income before taxes, whereas economic uncertainty is gauged by weighting macroeconomic factors through principal component analysis.

Economic uncertainty affects the profitability of both Islamic banks and CBs in Indonesia, with CBs being more negatively impacted than Islamic banks.

Economic uncertainty has a notably different impact on banks’ profitability in Indonesia, highlighting the critical need for stabilization measures to reinforce the foundations of the financial institution management system and integration policy frameworks.

Strengthening the management of integration policies should be prioritized to enhance financial stability in larger banks during economic uncertainty. Policymakers should focus on the profitability of CBs during periods of economic uncertainty as it has a bigger impact than the Islamic banking industry.

This study underscores the importance of sustainable development strategies in enhancing banking performance during periods of uncertainty. At the same time, studies examining the relationship between economic uncertainty and bank profitability remain limited, particularly when comparing Islamic banks and CBs in Indonesia.

The purpose of this study is to extend previous literature and examine risk management efficiency among Takaful (TI) and conventional insurance (CI) firms in the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE). This study also aims to determine whether Takaful firms are more efficient in managing risks, compared to CI firms.

This study examines risk management efficiency among Takaful and CI firms in the KSA and the UAE for a sample of 20 insurance firms comprising 10 TI firms and 10 CI firms for the period 2018–2020. The authors use Data Envelopment Analysis to estimate efficiency scores among insurance companies to compare risk management efficiency between CI and TI companies and apply two-way analysis of variance to statistically analyze the data.

The results of this study show that TI firms have a higher efficiency score than CI firms, but not significantly and that insurance firms in KSA have higher efficiency scores than insurance firms in UAE. The results also reveal that TI firms did not significantly outperform CI firms in managing risks; however, there is a significant difference in efficiency scores among insurance firms in KSA and UAE.

The authors also contribute to the literature by providing important insights into how the operational business environment of the country can influence the risk management efficiency of CI and TI companies.

This study promotes understanding the insurance industry, its efficiency and risk management, thus offering key implications for decision-makers, regulators and managers associated with the insurance industry in UAE, KSA and other emerging insurance markets. Regulators could provide enabling policies that foster and promote the business environment, as there is a need to improve risk management efficiency in the insurance industry. Also, the results of this study show that the operating status of the UAE insurance industry in terms of efficiency and risk management is lower than that of KSA. Hence, it would be useful for UAE managers and regulators in taking steps to improve the overall insurance industry market.

The results of this study make significant contributions by providing new insights to the existing literature on the risk management efficiency in the insurance industry, as it adopts a different methodological approach that examines risk management efficiency among TI and CI companies.