Sofien Bessais, Habeebullah Zakariyah and Azman Mohd Noor
Islamic financial institutions (IFIs) can gather provisioned funds from various sources, but they are prohibited from incorporating these funds into their profits or using them…
Abstract
Purpose
Islamic financial institutions (IFIs) can gather provisioned funds from various sources, but they are prohibited from incorporating these funds into their profits or using them for personal gain as they are considered illegitimate income. Instead, IFIs are required to allocate these funds to charitable purposes. This study aims to examine the potential establishment of a Waqf (an Islamic alternative for endowment) using the provisioned funds of IFIs in the United Arab Emirates (UAE) by analyzing its Shariah perspective, utility and viability.
Design/methodology/approach
This research uses an information-gathering approach, gathering data from books, articles, journals and websites to illuminate the Shariah perspective of endowing provisioned funds. Additionally, it draws upon interviews with experts in Waqf and Islamic banking and finance to grasp the potential and viability of establishing a Waqf from provisioned funds in the UAE.
Findings
Establishing a Waqf using provisioned funds is permissible. Although Waqf is always advantageous, in the current situation, endowing Islamic financial institutions' provisioned funds will not adequately address societal needs in the UAE. This is because the majority of annual returns on UAE Waqf investments are low compared to the amount invested, and there is an urgency to disburse these funds to those in need. If these needs are identified and met using Zakat and other charitable funds, a Waqf can be created from provisioned funds and prove beneficial. However, the authors have suggested some proposals to establish a relevant Waqf from provisioned funds that satisfy the required conditions and address the societal needs of the UAE. They concluded that creating a Waqf school would be the best suggestion.
Research limitations/implications
The scope of this study is limited to examining the use of IFIs' provisioned funds to establish a Waqf in the UAE. Furthermore, the findings and conclusions of this study may be applicable only to the UAE and may not be universally applicable to other countries.
Practical implications
Proposed initiatives to create a “Cash Waqf” fund and a “Waqf School” using provisioned funds are anticipated to bring about immediate positive changes for the underprivileged and the wider UAE community. Furthermore, the sustainable establishment of any Waqf could greatly benefit society by addressing all societal needs through Zakat and charitable contributions.
Originality/value
To the best of the authors’ knowledge, this is the first study to explore the potential and practicality of creating a Waqf using provisioned funds from IFIs in the UAE.
Details
Keywords
Habeebullah Zakariyah, Adnan Opeyemi Salaudeen, Anwar Hasan Abdullah Othman and Romzie Rosman
The popularity of financial technology (fintech) is rising in society due to fintech's direct benefits to users. This digital-based approach is one of the outputs of the…
Abstract
Purpose
The popularity of financial technology (fintech) is rising in society due to fintech's direct benefits to users. This digital-based approach is one of the outputs of the Industrial Revolution 4.0, which transformed the path of human history and resulted in the development of digital transformation strategy innovation, more commonly referred to as digitalisation. Previous literature has predicted that integrating fintech into waqf management will facilitate fintech's growth and expand waqf outreach in Malaysia. Therefore, this paper aims to examine the impact of “Industry 4.0” on the expansion of fintech into cash waqf in Malaysia.
Design/methodology/approach
This study uses Rogers' (2003) diffusion of innovation (DOI) model. In addition, a quantitative approach based on structural equation modelling (SEM) was utilised to analyse the relationship between awareness, knowledge, relative advantage, social norms, perceived trust and fintech adoption in waqf institutions by using the tool Analysis of Moment Structures (AMOS) version 23.0 with maximum likelihood estimation.
Findings
The overall indicate that perceived trust and social norms significantly influence the adoption of fintech by Malaysian waqf. At the same time, other factors such as awareness, relative advantage and knowledge do not appear to significantly influence the adoption of fintech amongst Malaysian waqf institutions.
Research limitations/implications
This study contributes significantly to the current literature concerning the Fourth Industrial Revolution and the wave of technologies. In addition, this study supports relevant theories, including DOI and other technology adoption theories. Aside from this, the study provides empirical contributions to waqf management regarding collecting and distributing waqf, improving the level of regulation of the waqf institutions and enhancing trust between donors, waqf management and beneficiaries. This study is amongst the first in the area of waqf that focus on Malaysian waqf intitutions.
Originality/value
This is important for policy development to support the utilisation of fintech for waqf institutions, which leads to more transparency and efficiency.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-04-2022-0264
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Afaf Akhter, Mohd Yousuf Javed and Javaid Akhter
This study aims to present a bibliometric analysis of Islamic social finance (ISF) by addressing gaps in the existing research, exploring the current trends of publications and…
Abstract
Purpose
This study aims to present a bibliometric analysis of Islamic social finance (ISF) by addressing gaps in the existing research, exploring the current trends of publications and determining possible future research directions in this field.
Design/methodology/approach
Relevant bibliometric data of published research during 1914–2022 was extracted from the Scopus database and 1,355 studies were considered for the analysis. Biblioshiny app from RStudio, VOSviewer and Microsoft Excel were the tools used for analysis.
Findings
The identified current research streams are management and distribution of ISF funds especially zakat through fintech; governance and accountability of ISF institutions; Islamic microfinance for poverty alleviation and financial inclusion; ISF for promoting sustainable development and achieving United Nations sustainable development goals; waqf endowments and cash waqf; and Islamic charities. The identified themes for future research directions are Islamic fintech, integration of ISF, sustainable development, economic recovery, social entrepreneurship, sustainable ISF ecosystem and supporting refugees.
Practical implications
It provides extensive and up-to-date literature on the current trends in ISF and future research themes which can be useful for researchers, professionals and policymakers in the field.
Social implications
The findings of this research contribute to the solutions to socio-economic challenges and support sustainable development through ISF.
Originality/value
To the best of the authors’ knowledge, this research is one of the first attempt to provide a pervasive bibliometric review on ISF by including various aspects of ISF and extending the study period to more than 100 years.