Siti Sara Ibrahim, Dalila Daud, Khusnul Hidayah, Amir Shaharuddin and Al-Amirul Mukmin Al-Amin
This study aims to examine how beliefs and expectations on collaboration for investment, technology advancement and governance can lead to sustainable income generation that…
Abstract
Purpose
This study aims to examine how beliefs and expectations on collaboration for investment, technology advancement and governance can lead to sustainable income generation that succeeds in influencing the community to accept the proposed Waqf integrated income generating model (WIIGM).
Design/methodology/approach
This study empirically examined the beliefs and expectations on the proposed WIIGM model, which was adapted from the theory of reasoned action (TRA). Data was collected from 366 respondents selected via convenience sampling. Questionnaires were distributed online, of which responses were then analysed using partial least squares structural equation modelling for hypothesis testing. Ethical approval is also gathered before the data collection begins.
Findings
This study found that collaboration for investment and governance significantly contribute to sustainable income generation in waqf operations and management, which eventually results in the community’s trust and acceptance of the WIIGM model. Technology advancement also significantly influences sustainable income generation, which finally leads to the community's behavioural intention to participate in the WIIGIM model. Further studies on this variable may establish findings from other perspectives.
Practical implications
This paper is an original study that empirically examines the potential for a new waqf integrated income-generating model in building the trust of the community towards waqf institutions. This study is significantly important for practitioners and policymakers in evaluating the potential roles of waqf based on the belief and trust of the community.
Originality/value
This paper adds value to existing literature regarding the potential of a new waqf integrated income-generating model.
Details
Keywords
This study aims to investigate the practice of bay’ ‘inah contract in personal and home financing products by some Islamic Finance Institutions (IFIs) and examine the differences…
Abstract
Purpose
This study aims to investigate the practice of bay’ ‘inah contract in personal and home financing products by some Islamic Finance Institutions (IFIs) and examine the differences in the selection of contracts in banking products amongst IFIs mainly involving personal financing. The study will also propose a solution to the problem of differences and simultaneously standardise personal financing contracts in Malaysia.
Design/methodology/approach
The methodology of this study is qualitative, in which the data are collected through library research and field studies. The library research is done by examining books of usul al-fiqh (principles of Islamic jurisprudence), mura’aht al-khilaf, maqasid shariah (objectives of Islamic law) articles, statutes and related circulars, while field studies are conducted in an unstructured interview method with some members of Shariah Advisory Council (SAC) and academicians from Bank Negara Malaysia (BNM), IFIs and public university.
Findings
The findings show that there is a difference in views amongst SAC members in IFIs on bay’ ‘inah contract that effects the differences in the execution of such contract in banking applications. The study found that the bay’ ‘inah contract was non Shariah (Islamic law) compliant based on Shariah’s arguments and the opinion of the majority of past and present Islamic scholars. The study found that the BNM’s SAC did not allow the bay’ ‘inah contract to be practiced in personal and home financing products. Hence, this study proposes standardisation steps based on differences in the problems studied. The study also suggested that the SAC of BNM make improvements and updates on its solution regarding the bay’ ‘inah contract so that it is not misunderstood especially amongst IFIs.
Research limitations/implications
The study is only looking at one case study, which is the bay’ ‘inah contract practiced by the IFIs in Malaysia.
Practical implications
This study proposes the standardisation of personal financing products practiced by the IFIs. The results of this study can reduce Sharīʿah non-compliance products in the market. The results of this study have gained a deep understanding of the solution of bay’ ‘inah contract made by the SAC of BNM. The findings also reduce the conflict between Shariah scholars locally and internationally and can restore the image of Islamic banking in Malaysia from engaging with controversy products or contracts.
Social implications
The confidence of the public in Islamic banking is increasing as there is no contractual engagement with serious controversial issues and contracts similar to the concept of riba and hilah (trick) that is prohibited by Islamic law in IFIs.
Originality/value
This study analyses the differences of fatwa (a ruling on the point of Islamic law) about bay’ ‘inah contract decided by some SACs of IFI based on the discipline of usul al-fiqh. The study found that the bay’ ‘inah contract is not allowed by Islamic law. The study has proposed the standardisation of the fatwa differences based on the concept of mura’aht al-khilaf and the concept of standardisation in Islamic finance and to standardise personal financing products amongst IFIs in Malaysia.
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Md. Abu Hasnat, Hissan Khandakar, Md. Azizur Rahman, SM Nahidul Islam and Khandakar Kamrul Hasan
This study aims to analyse the research themes in Islamic finance, assess the extent to which Sustainable Development Goals (SDGs) can be achieved through implementing Islamic…
Abstract
Purpose
This study aims to analyse the research themes in Islamic finance, assess the extent to which Sustainable Development Goals (SDGs) can be achieved through implementing Islamic financial principles and explore the potential for reshaping human behaviour under an Islamic framework. The research aims to establish a paradigm that evaluates the role of Islamic finance in fostering social justice, environmental sustainability and ethical governance as a sustainable alternative to the capitalist system.
Design/methodology/approach
This research employs a comprehensive literature review and thematic analysis to assess the alignment of Islamic finance with SDGs. Secondary data from peer-reviewed academic articles (2016–2024) were collected and analysed using an inductive thematic approach. Key themes include Islamic finance, maqasid ash-shariah and the role of Islamic finance in sustainable development. A conceptual framework is proposed to depict how Islamic financial practices can contribute to the SDGs.
Findings
The study identifies that Islamic finance, rooted in Shariah principles, offers a robust foundation for fostering social justice, ethical governance and environmental sustainability. By integrating zakat, donations, private investments and socially responsible investments, the Islamic financial model aligns with SDGs, addressing poverty (SDG 1), reducing inequality (SDG 10) and promoting sustainable economic growth (SDG 8). The findings underscore the potential of Islamic finance to address capitalism’s shortcomings, such as income inequality and unsustainable practices, while advocating for a paradigm shift in human behaviour through adherence to Islamic values.
Practical implications
Policymakers and financial institutions can leverage the insights from this research to design and implement Islamic financial models that promote equitable resource allocation, sustainable development and ethical practices. The framework offers a practical guide for integrating Islamic finance into conventional financial systems to achieve SDGs.
Originality/value
The study contributes to the existing literature by presenting a novel conceptual framework that integrates Islamic finance with sustainable development goals. It offers a unique perspective on transitioning from capitalism to an Islamic financial model, emphasizing behavioural and ideological changes to achieve equitable and sustainable economic outcomes.