Islamic Finance

In the past couple decades, interest in learning and teaching Islamic law has increased in both the Muslim and non-Muslim world. The popularity of Islamic banking and finance has especially triggered scholarly studies in this field, since the study of uṣūl al-fiqh is the essence of comprehending the law revealed by the Lawgiver. In order to fully implement the intention of the Lawgiver in the field of tashrī‘, as well as in Islamic banking and finance, properly learning the components of uṣūl al-fiqh is highly essential for those who are both theorists and practitioners. A better understanding of the principles of Islamic law and the methods of interpretation of the texts is necessary to appropriately convey the message of the eternal sources to the experts, just as a driver’s licence is necessary to drive a car and a medical certificate is necessary to practice medicine − without these certificates, one may cause a serious accident or death. Such an understanding will protect students, especially those of the younger, technologically advanced generation, from reckless approaches towards aḥkām of the Qur’ān and the Sunnah. Studying the principles of Islamic law, uṣūl al-fiqh, is as essential as studying other sciences to be qualified in Islamic sciences, since they are a manifestation of divine law, which reflects the rules (aḥkām) derived from the main sources, the Qur’ān and the Sunnah, which are simply called the Sharī‘ah.

A well-regulated economic system requires incentives that reward productive and withhold rewards from unproductive activity. Such incentives are put in place by means of legislation and enforced with the help of regulatory agencies. A well-managed system will allocate resources more efficiently than a system in which income may be gained without active participation in economic activity, by lending at interest in particular, which invariably increases the prices of finished goods without, however, adding any value. Interest-based lending produces a range of important, though rarely highlighted, side effects. They include inefficiency, indebtedness, instability, inflation, unemployment, slow or declining economic growth, and an uneven distribution of wealth. (224 pages)

This Paper explores and summarises the Director's Duties of the UK Companies Act 2006 with emphasis on "the duty to promote the success of the company.

Tags:
Companies Act 2006 model articles, Companies Act 2006 summary
companies act 2006 pdf
companies act 2006 model articles
companies act 2006 regulations 2013
Companies Act 2006 UK
UK Companies Act 2006

In Our Economy, al-Sadr strives to show that Islam has answers to problems of the modern world by presenting an Islamic alternative to both capitalism and socialism. He rejects socialism on the basis that Islam distinguishes between the individual and the ruler in an Islamic state in a manner that requires a distinction between private and public property. However, he also rejects capitalism's notion that private property is justified in its own right, arguing instead that both private and public property originate from God, and that the rights and obligations of both private individuals and rulers are therefore dictated by Islam. He also rejects the conclusion that this makes Islamic economics a mixture between capitalism and socialism, arguing that capitalism and socialism each come about as the natural conclusion of certain ideologies, while Islamic economics comes about as the natural conclusion of Islamic ideology and therefore is justified entirely independently of other systems of economics.

This book is divided into 4 sections. Volume 1 - I, Volume 1 - II, Volume 2 - I and Volume 2 - II.

Based on the failure to cut down poverty rate to 7% by 2019, I argue that the Indonesian Government needs not only planning and identifying targets, but also look for ways to realise its objectives. The State Budget spent through social spending only have a minuscule impact on poverty reduction, which I strongly suspect to eventuate because the poor lacks the capability to decide on which aspects they should utilise the funds.

I then explained two underlying aspects of blockchain technology: smart contracts and digital identity, and how these two could help the Government achieve its development objectives.

The Government must be both a planner and a searcher. Identify what needs to be resolved and search for ways to resolve it.

Purpose – The purpose of this paper is to examine the short-run and the long-run relationships between Islamic banking development and economic growth in the case of Indonesia.

Design/methodology/approach – Using quarterly data (2003:1-2010:2), this paper utilizes the bound testing approach of cointegration and error correction models, developed within an autoregressive distributed lag (ARDL) framework.

Findings – The results demonstrate a significant relationship in short-run and long-run periods between Islamic financial development and economic growth. The relationship, however, is neither Schumpeter's supply-leading nor Robinson's demand-following. It appears to be bi-directional relationship.

Originality/value – This paper uses empirical evidence to show the role of Islamic banks' financing towards economic performance of a country. To the best of the authors' knowledge, the study on the role of Islamic banking development towards economic growth is limited, particularly in the context of Indonesia.

The technological and creative developments in the financial and banking fields are accelerating very rapidly, especially in the field of digital and virtual currencies which achieves significant profits. These technologies sometimes are leads to the difficulty of accepting these developments especially in Islamic societies, because some of them do not conform to Islamic law. Which is requires the creation of a fatwa and the legitimacy of Shari'ah scholars and jurisprudence to be handled and traded. This paper highlight on the concept of Virtual Currency like Bitcoin and how does it work with the requirement of Islamic banking and finance also with Islamic law (Shari'ah) according to the opinion of Islamic scientists like (Malik & Ibn Taimiah). While it aims to find answers whether the virtual currency, especially Bitcoin is it permitted (Hala) or it's forbidden (Haram) under Islamic Law (Shari'ah). It concludes that Bitcoin might be more suitable to deal with it in the Islamic world, especially Islamic banking than Usury Banks (Riba banks) as Trade Banks because of Bitcoin is free of interest rate.

The month of Ramadan is one the most renowned religious rituals in the world for more than 1.5 billion Muslims. This study analyzes the effect of religious experience during the Muslim holy days of Ramadan on the stock exchanges of 16 Muslim-majority countries. According to the results, among 16 countries, 13 Muslim financial markets have positive returns during Ramadan, which can be attributed to the generally positive investor mood or emotion. In contrast, only 4 stock markets—Dubai Financial Market, Amman Stock Exchange, Karachi Stock Exchange, and Tunis Stock Exchange—exhibit differences that are both positive and statistically significant. Moreover, the study divides the Muslim holy days into 3 periods, where the first period comprises the first 10 days of Ramadan, second period covers the next 10 days of the Ramadan month, and the final period involves the last 10 days. According to results, while the first 10 days witness the lowest performance, the last 10 days experience the highest performance.

Zusammenfassung
Die Studie skizziert Ibn Rušds einzigartigen rechtsphilosophischen Ansatz, das islamische Recht zu flexibilisieren und es mitten im Leben der Muslime zu verorten. Sein Ansatz erlaubt eine neue Perspektive im Diskurs um die Aktualisierung des islamischen Rechtsund um die Suche nach der „Islamizität“ von Normen. Am Beispiel des Verbots des Wucherzinses geht die Studie dem Ansatz Ibn Rušds nach und vergleicht sie mit diversen Lösungsansätzen aus der muslimischen Rechtsgelehrsamkeit. Für diesen Zweck wurde die Einleitung und das Kapitel zum Wucherzins in seinem Rechtswerk Bidāyat al-muǧtahid übersetzt und kommentiert, seine Herangehensweise analysiert und die von ihm konsultierten Quellen ausfindig gemacht.

Abstract
This study portrays the unique philosophical approach of Ibn Rushd to systematising Islamic law flexibly in order to solve the problems Muslims experience in daily life. His approach allows for a new perspective in the discourse on how to update Islamic law for contemporary times and how norms are qualified as being Islamic.
Taking the prohibition of usury as an example, this study scrutinises Ibn Rushd’s approach and compares it with others from Muslim legal scholarship. For this purpose, the introduction and the chapter on usury in his juristic work Bidāyat al-mujtahid have been translated and commented on, with his approach analysed and the sources that he consulted identified.

Continuous growth in Islamic finance calls for an in-depth study of the framework in which the monetary policy maker (i.e., the central bank) performs its functions. Central banks in Muslim countries are using various instruments for monetary policy purpose including interest rate. As a result, Islamic Financial Institutions (IFIs) are facing issues in benchmarking the price of financial instruments. Acceptable solution to benchmarking lies in the presence of a real economic activity in the base of any proposal and its feasibility for business performance when put against conventional banking. This paper presents empirical evidence of statistical equivalence of nominal GDP growth rate and official interest rate for ‘advanced,’ ‘all,’ and some Muslim countries. We propose nominal GDP growth rate as benchmark for pricing domestic financial transactions of IFIs as well as for pricing external bilateral/multilateral loans. The paper also suggests nominal income targeting as monetary policy regime and provides a liquidity management mechanism for banking system in Islamic financial environment.

تحاول هذه الورقة البحثية تسليط الضوء على الأزمة المالية العالمية من خلال تحليل جذور ودوافع حدوثها وأهم خصائصها، وكذا تداعياتها على الاقتصاد العالمي من خلال التطرق إلى آثارها على بعض المتغيرات الاقتصادية، مع محاولة إبراز سبب بقاء البنوك الإسلامية في منأى عنها مقارنة بالبنوك التقليدية.

This paper is trying to shed light on the global financial crisis through the analysis of the roots and motives of the most important characteristics of occurrence, as well as its repercussions on the world economy by addressing the implications of some economic variables, while attempting to highlight why the Islamic banks shielded from them compared to traditional banks.

The integration of the financial industry and financial technology (Fintech) plays a pivotal role in increasing financial services reach and inclusion for the large unbanked population in Indonesia. Fintech adoption optimization expands the financial access to formal financial institutions, especially to vulnerable groups such as the unbanked population who predominantly reside in rural areas far from formal financial institutions. Fintech is viewed as a game changer to bring finance to the unreached communities via information technology and digital financial landscape. In this causal research, data collection was done via online questionnaires to 485 Fintech users between December 2020 and April 2021. Data analysis and path modelling was performed using smartPLS 3.0 software. Result shows user innovativeness as a significant predictor, directly and indirectly affecting the adoption of Fintech in Indonesia, while user attitude found the most important factor towards Fintech adoptio...

With many women receiving tertiary education, more women have become significant income earners and have the opportunity to save. As a result, more women are expected to become eligible payers of zakat on wealth. This paper examined payment of an important zakat on wealth – zakat on banking deposits among Muslim women in Selangor and Federal Territories. Specifically, the paper examined the demographic profiles between those that paid zakat and those who chose not to pay. Characteristics such as age, education level, employment status, marital status, monthly income, zakat channels, and resident areas were examined to determine the main drivers behind their payment of zakat on banking deposits. Next, the paper explored the level of zakat literacy among the respondents. We assumed that zakat literacy plays important roles behind the payment of zakat on deposits given the advancement of the deposit products. In measuring this, we adapted measurement of financial literacy as introduced by OECD namely awareness, knowledge, skills, attitudes and behaviours.  In achieving these objectives, a survey among  Muslim women respondents was conducted in Klang Valley.  Findings indicated that age, education level, employment status, annual income per month, zakat channels, annual zakat payment and residential areas played important roles in influencing payment of zakat on banking deposits among the respondents. Meanwhile, among the dimensions of financial literacy investigated, only age and monthly income were found to have  positive correlations with zakat awareness and behaviour. Surprisingly, the correlations between age and zakat knowledge and skills were found to be significantly negative. It is expected that this study may help zakat institutions to understand their women zakat clients and guide them to develop appropriate program of zakat literacy suitable for women of various demographic profiles.

Economics is a fundamental part of every society, similarly, Islam is one of the dominant faith practiced all around the world and a complete code of life. It has given some specific guidelines regarding economics. The article discusses the core concepts of the economic system with reference to Islamic teachings. It covers concepts of Zakat, Riba and general guidelines about economic activity within a state, with reference to Pakistan. The paper has made the Quran and the state of Medina as the point of reference to understand the spirit of the economic system implemented in that milieu. And has tried to understand the contemporary basic economics affecting and influencing common life.


Keywords: Zakat, Riba, Islamic Economic System, Usury.

Islamic ethics and solidarity among believers are characteristics that permeate Ibadat,
islamic acts of worship, and in particular the Zakat that is a fundamental basis of welfare
in modern Islamic States. However, it sometimes happens that the pious intention of Muslims
in giving their alms is distorted by illicit conducts that directs revenues of religious
tax towards illegal purposes. Blockchain technology intervenes to assist the transparency
and traceability of financial transactions and, when applied to the Zakat, not only makes
payment execution easy, but also guarantees the believer in the lawful destination of the
donated amounts.

Long before the Dana Gas Sukuk default highlighted how the legal complexity of Sukuk could be exploited in a default situation The  Investment Dar company of Kuwait tried the same strategy.

Did they succeed (like Dana Gas) or Fail? This paper looks in detail at the case and the various legal aspects.

In particular the author looks at the heart of the problem and the source of this 'Shariah  Compliance Risk' - form over substance compliance with Islamic non-interest-based investment principles.

The Six AAOIFI Sukuk principles highlighted by the esteemed and learned Sheikh Taqi Usmani also highlighted these structural issues and are covered here.

Over the past few decades, the Islamic finance industry has witnessed exponential growth, intensified innovation and fast development in its products and services. This paper discusses the contemporary issues of credit cards from economic and Sharīʿah perspective and explains the implication of an optional interest clause. Islamic finance providers have experimented with different structures for Islamic credit cards, which, however, have attracted wide-reaching criticism regarding the underlying contracts and whether the concept in itself is in line with the Sharīʿah. From an analysis of the different market practices of Islamic credit cards, we notice that Islamic banks are struggling to find an appropriate approach to provide an Islamic credit card facility which is profitable and meets their financial intermediary purpose. We then propose the concept of prepaid Islamic credit cards and the idea of Master Murābaḥah Credit Card Agreement which would be more suitable and generate Sharīʿah-compliant returns. This paper also tackles the issue of consumerism and mounting indebtedness from the Sharīʿah perspective, and calls for restrictions and control by Islamic credit card issuers including limiting credits and blocking non-Sharīʿah compliant usages.

Abstrak Saat ini, perkembangan fintech (financial technology) syariah di Indonesia semakin pesat. Tetapi di sisi lain, terdapat beberapa fenomena dan permasalahan pada fintech konvensional yang memberikan dampak negatif di masyarakat. Oleh karenanaya keberadaan fintech syariah seharusnya dapat menjadi solusi atas fenomena ini. Tujuan dari penelitian ini adalah untuk mengetahui tentang peluang dan tantangan fintech syariah (Teknologi Finansial) di Indonesia. Penelitian ini menggunakan analisis deskriptif dengan pendekatan kualitatif. Teknik analisis data yang digunakan adalah dengan model interaktif. Hasil penelitian menunjukkan terdapat peluang dan tantangan fintech syariah di Indonesia yang terdiri dari: regulasi, sumber daya manusia, dan penguasaan teknologi dari masyarakat.

This paper examines the impact of security spending and public sector debt on real GDP in Nigeria using annual data from 1994 – 2016. The study explores the long and short-run dynamics amongst the variables within the Autoregressive Distributed Lag (ARDL) framework. The Augmented Dickey Fuller (ADF) and Philip Perron’s (PP) test reveals that all variables contained a unit root and were integrated of order one I(1).  The Bounds test to cointegration confirms the existence of a long-run relationship between security spending, public sector debt and real GDP. The ARDL results suggest that in both long and short-run estimations that an increase in internal security expenditure and domestic debt significantly leads to a rise in real GDP, conversely an increase in defence expenditure and external debt constitutes a fall in real GDP. This study therefore recommends that emphasis should be placed on internal security spending and domestic debt. Again defence expenditure should be greatly reduced especially when compared to a reduction in external borrowings.

Encore extrêmement limitée il y a 30 ans, la finance islamique moderne atteindra en 2020 un encours de 4500 milliards de dollars. Si cela ne parait pas considérable à l'échelle mondiale, les banques islamiques semblent avoir bien résisté à la crise; Ainsi, les organisations financières internationales tablent sur une croissance annuelle de plus de 15% sur les 5 à 10 ans à venir. Après avoir longtemps ciblé essentiellement un marché potentiel de 1.5 milliards de musulmans, le système bancaire islamique intéresse désormais des acteurs du monde entier. La déconfiture des marchés financiers dans les pays de l'OCDE pourrait conduire les responsables politiques à considérées d'autres modèles et la finance islamique n'est pas sans attrait. Les banques islamiques sont considérées comme un refuge relativement sûr contre les turbulences des marchés financiers mondiaux, et elles incarnent un certain esprit d'équité et de justice islamique présente plusieurs caractéristiques intéressantes, notamment en matière de gestion des risques, de transparence ou de régulation. Il a fallu attendre plusieurs décennies avant que le Maroc n'adopte la finance islamique pour laquelle il a choisi le nom de participative. Depuis le démarrage des banques c'est un véritable écosystème qui a vu le jour. La nouvelle loi 103.12 définit le statut des banques participatives et précises les produits qui pourront être commercialisés. Elle dote ce nouvel écosystème d'organes de contrôle et de régulation. L'objectif de cet ouvrage est de fournir aux praticiens des banques et aux financiers d'entreprise, un guide des diverses opérations effectués dans le cadre de la finance participative, aux étudiants et aux universitaires un manuel en prise directe sur les pratiques financières des banques participatives.

Professor Tariq Ramadan's case and the solitary confinement he faces in a French prison sheds some light on the differentiated treatment Muslim subjects receive in the legal system of the Western states. In this article, I am not defending or making any arguments for the charges levied against Professor Ramadan-they are serious and require full and fair examination by the authorities and the courts as well as more responsible coverage from the media. The cause of sexual harassment is rightly receiving a much needed and overdue global attention. What is important is to make sure that the scales of justice in pursuit of a needed legal, social and political corrective does not lead to undermining the rights and standing of a similarly demonized community. Demanding justice, fairness and transparency is a universally supported set of principles, which are critical in the case of Professor Ramadan. The guilt or innocence after a transparent legal process and a trial are what all parties to this painful case deserve and expect. Muslim subjects have become accustomed to an abnormal legal treatment from the moment they are arrested and charged, and even throughout the court proceedings. This abnormal is becoming the normal no matter whether the charges are civil or criminal and is for sure the case when the charges are remotely related to terrorism. I do think that the initial attempts to defend Professor Ramadan were wrong in disparaging the women who levied the charges. These shortsighted attacks on the women who came forth caused a mix-up and confusion between the demands on the French legal system to treat Professor Ramadan fairly and the attempts to win public debates and alter the demonized media coverage of the Muslim subject. These two should be separated and I am not sure how this should be done but it should be part of any serious approach. A basic analysis of the French media coverage of this case points to the problematic nature of the coverage and the preponderance of journalists to pile-on and sentence Professor Ramadan before even the end of the investigation and the court proceedings have started. What is expected of the French State and its legal system is to adhere to the due process of the law and accord Professor Ramadan the same rights that are granted to any non-Muslim, non-Arab and non-Maghrabi person in the country. Indeed, the legal process in France is tainted by the differentiated treatment accorded to all " non-French to the source " populations that face systemic discrimination at all levels of society including foremost in the legal system. The treatment is similar to the one faced by the African Americans in the U.S. and an entrenched racism dating from the colonial period is ever present in France. Let's be clear – Professor Ramadan travelled willingly to France and surrendered to the police authorities in order to face the charges levied against him and then to prepare for the legal proceedings. The French authorities moved to arrest Professor Ramadan, refused to grant bail, placed him in solitary confinement, and limited family visitation and access to proper medical care, which collectively point to the differentiated treatment reserved for the Arab and Muslim

Commitment needed to maintain a balance between financial performance aspects of the operational aspects of social performance in microfinance institutions (MFI's). In this article the author conducted a literature study, by dividing the discussion of three main parts, namely: the solutions to the phenomenon of ethics violations by MFI's; Shariah principles on Islamic MFI's in accordance with ethics violations solutions; challenges to the implementation of Reviews These solutions. Based on this, the authors found the similarities of the MFI's commitment to the principles of sharia platform to implement ethical MFI's operations. In this article the author suggests four main pillars of ethical commitment as an indicator that the MFI's / MFI's sharia, implementing operational aspects equally between financial performance and social performance.

This study examines the factors which influence and contribute towards the financial viability of Islamic finance and its impact on global financial stability. However, the purpose of this paper is to differentiate the practical implications of both Islamic and conventional finance on global financial stability. The Islamic finance is asset backed financing which creates wealth through trade, commerce and believes in risk and return sharing. Islamic banking is asset driven as against to conventional banking which is liability driven. In order to introduce new financial products for market, financial innovation in Islamic finance must be within the Shari'ah parameters that are tested against the 'Maqasid al-Shari'ah'. Interest-based system leads to income and wealth inequalities and mis-allocation of resources. Moreover this system has absence of just and equitable aspect of distribution that may exploit either the debt holder or the financier. Such implications are reached to a tipping point that leaves only one choice: change or face continued decline and misery.