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  • Received 1st degree (Lisans) in Sharī‘ah from Islamic University of Madinah in 1984. Obtained both LLM (Hons.) in Isl... moreedit
Purpose - The study explores the existing Sharī‘ah audit process practices of Islamic banks in Bangladesh aiming at providing suggestions for improvements on the detected shortfalls in the relevant areas. Design/methodology/approach - It... more
Purpose - The study explores the existing Sharī‘ah audit process practices of Islamic banks in Bangladesh aiming at providing suggestions for improvements on the detected shortfalls in the
relevant areas.

Design/methodology/approach - It applied a qualitative method and data were collected through conducting the semi-structured interview in Bangladesh. Overall 17 respondents have been contacted for accomplishing the research objectives.

Findings - The study found that since the obligation of Sharī‘ah compliance is the part and parcel of Islamic finance, to this date, no comprehensive Sharī‘ah audit manual is available for Islamic banks in Bangladesh, and as such the requirements of their Sharī‘ah non-compliance remain big question marks. Although Islamic banks maintain the Sharī‘ah audit practice, and their Sharī‘ah officers are found to be engaged in inspecting the necessary documents in this regard it only
covers 10%-20% of their total Sharī‘ah compliance practice. Based on our findings, it is recommended that Sharī‘ah auditing tasks of Islamic banks should broadly cover up to 80% of their investment portfolios as is the case with the overall audit system both in conventional and Islamic finance.

Implications - The findings of this research is expected to significantly contribute to all regulatory authorities concerned in Bangladesh and beyond which include the suggestions that Islamic banks should broaden their Sharī‘ah audits to 80% of their investments and other
transactions. Also to apply Sharī‘ah audit software for furthering the monitoring of the functions. The study also pinpointed that in the current system Sharī‘ah auditors’ roles are somehow limited, for which they are unable to perform their responsibilities accurately and effectively.

Originality/value – To our knowledge, perhaps this is the first research of its kind which seeks to qualitatively explores the current Sharī‘ah audit practices, and based on its findings it provides some practical suggestions for making the necessary developments of the present audit process of Islamic banks.
Purpose The purpose of this paper is to contribute to the existing body of work in the area of Islamic microfinance by examining the co‐operative nature of Islamic financial services providers (IFSPs) in Australia.... more
Purpose
The purpose of this paper is to contribute to the existing body of work in the area of Islamic microfinance by examining the co‐operative nature of Islamic financial services providers (IFSPs) in Australia.

Design/methodology/approach
The method employed in this study is a mixture of one of the authors' post‐graduate research and their personal experience, curiosity and association with this industry.

Findings
Islamic financial cooperatives, relevant government authorities and Islamic micro‐lenders in Australia should cautiously examine the following opportunities for the development of Islamic microfinance in Australia: merging of Islamic cooperatives with each other for their future growth and development through attracting more capital; integration of microfinancing Islamic investment and retail banking facilities to provide the twin engines of fulfilling communities' religious needs and Australia's economic development; and introducing more creative Islamic microfinance techniques to suit the financial needs of individuals and groups to facilitate their contribution in the country's economic development.

Practical implications
The paper offers: an introduction to the emergence and development of Islamic microfinance in Australia; studies the current realities of the Islamic financial system of Australia from the perspective of Islamic microfinance contracting perspectives; explains the key role of IFSPs in Australia in fulfilling the microfinance needs of Muslim community; and examines the Islamic microfinance techniques they use.

Originality/value
Examination of the issues of the study is undertaken aiming at introducing Islamic microfinance with relevant parties including government authorities and Islamic micro‐lenders in Australia to find it as a viable alternative system of financing for Muslims in Australia.
Purpose –The paper's purpose is to contribute to the existing body of work in the area of Islamic finance (IF) by examining its activities in Australia and evaluating the country's current regulation and supervision of Islamic financial... more
Purpose –The paper's purpose is to contribute to the existing body of work in the area of Islamic finance (IF) by examining its activities in Australia and evaluating the country's current regulation and supervision of Islamic financial market (IFM) to cater the need of IF for Muslims living in Australia.

Design/methodology/approach – The method employed in this study is a mixture of direct observation from legal and regulatory perspectives and author's association with IF industry in Australia. However, Islamic legal context remains the only theoretical basis of the study.

Findings –Through examining the above, the paper proposes regulatory changes to the Australian regulatory regime and recommends establishing an Islamic bank (IB) to meet the Islamic banking and finance needs of Muslims living in Australia.

Research limitations/implications – The paper concentrates on examining the regulation of IF in Australia in terms of financing instruments and institutional risk management of Islamic financial institutions (IFIs). However, it has not been supplemented by any empirical work, nor have been attempted to evaluate the economic efficiency and profitability or otherwise, of IF in Australia.

Originality/value – Besides the direct policy recommendations and suggestions for further research provided for authorities concerned, the paper sheds new light on how the legal and regulatory challenges of IF in Australia are met for its substantial growth.
The purpose of the paper is to examine what led Australia to look for opportunities to expand its exports and imports of financial services in the aftermath of the global financial crisis, although it has arguably been the... more
The purpose of the paper is to examine what led Australia to look for opportunities to expand its  exports  and  imports  of  financial  services  in  the  aftermath  of  the  global  financial  crisis, although it has arguably been the most efficient and competitive financial sector in the Asia-Pacific region. This was due to part of its searching for an alternative to conventional finance which had slowed the Australian economy significantly during this global downturn, although it  is  the  only  OECD  country  not  to  have  had  a  ‘recession’  in  2008-09.  It  was  also  due  to Australia’s vision to join countries such as Egypt and South Korea in seeking to ease barriers to  Islamic  finance  products  and  tap  into  this  industry  whose  footprint  is  $1  trillion  in  assets, which  the  Kuala  Lumpur-based  Islamic  Financial  Services  Board  predicts  will  reach  $1.6 trillion  by  2012.  While  the  approach  for  this  study  is  to  promote  opportunities  for  Islamic finance  in  Australian  market  the  attempts  have  not been  made  to  make  any  comparison analysis of the effects of financial crisis on Islamic financial sector in Australia or otherwise in the aftermath of the worst crisis the world has seen in 2008 since the Great Depression in the 1930s. The paper concludes with a summary and suggestions for further research.
The dispute resolution framework in Islamic finance as practiced in most countries has proven to be inadequate, particularly in its application and interpretation of the Sharīah. Malaysia has consistently proven its prime position in... more
The dispute resolution framework in Islamic finance as practiced in most countries has proven to be inadequate, particularly in its application and interpretation of the Sharīah. Malaysia has consistently proven its prime position in blazing the trail in most legal and regulatory issues in the Islamic finance industry. It has recognised the increasing importance of the architectural aspects of the industry such as the need to establish the dispute resolution framework.
Purpose of study - The purpose of this study is to examine the extent of divergence in Murabaha financing practice of Islamic finance (IF) from the traditional Shari`ah in the Australian context.... more
Purpose of  study - The purpose of this study  is to examine the  extent  of  divergence  in Murabaha financing  practice  of Islamic  finance  (IF)  from  the  traditional  Shari`ah  in  the Australian context.

Design/methodology/approach - The  study  presents  a discursive  analysis  of  the  extent  to  which  institutions offering  Islamic  financial  services  (IIFS)  in  Australia  differ from  the  traditional  Shari`ah  in  their  current  practice  of Murabaha product  in  three  selected  areas -  home,  motor vehicle and consumer goods financing. 

Findings - The  study  seeks  to  argue  that  the  Shari`ah compliance  of  the  IIFS  in Murabaha finance  be  strictly maintained, and as such a separate regulatory and legislative framework  be established  for  IF  to  facilitate  its  growth  and development  since  the  underlying  principles  of  IF  differ from those of conventional finance. 

Research  limitations  and/or  implications - The  approach for  the  study  is  limited to critically  examine  the  extent of divergence  of  Australian  IIFS  from  the  strict  Shari`ah compliance  in  their  current  use  of Murabaha finance. Therefore,  it  does  not  attempt to  examine  any  other  Islamic products  they  use  for  IF.  Besides,  it  does  not  evaluate  the economic  efficiency  and profitability  or  otherwise,  of  IF  in Australia.   

Originality/value - The  study sheds new  light  on  how  the challenges  of  Shari`ah  compliance  for  IIFS  in  Australia  are met  since  the Murabaha mode  of  finance  they  use  and advertise  appear  to  be  conventional interest-based  product where the borrower takes the risk and the lender gets a fixed rate of return. The  study provides a  valuable contribution to researchers  and  practitioners  as  it  extends  the  understanding of  how Murabaha mode  of  financing  can  be  enforced  to fully  comply  with  the  Shari`ah  in  Islamic  banking  and financial transactions.
Purpose - This paper analyses the CSR Role of Islami Bank Bangladesh Limited targeted to contribute in the economic, social and environmental betterment of Bangladesh as well as for its citizens Methodology - For the purpose of this... more
Purpose - This paper analyses the CSR Role of Islami Bank Bangladesh Limited targeted to contribute in the economic, social and environmental betterment of Bangladesh as well as for its citizens

Methodology - For the purpose of this study, Content Analysis has been considered as the most appropriate research method. To understand the role of IBBL in CSR activities in Bangladesh, a content analysis has been conducted utilizing relevant articles, books, periodicals, annual reports and websites

Findings - The study reveals that IBBL is making significant contribution towards Bangladesh society through its CSR activities. It is evident that IBBL effectively addresses the social, environmental and economic concerns of Bangladesh within its limits

Research limitations - This study is based on content analysis, which requires the access to all relevant information, which is limited in case of IBBL, except the Annual Reports, websites and a few journal articles on the CSR activities of this bank

Practical implications: This study will be a useful tool for future researchers. This study will also be a good source of information for different users like government, NGOs and civil society members.

Originality - The number scholarly work on CSR in Bangladesh from Islamic perspective is very limited. Moreover, there has been no prior work on IBBL’s CSR performance except a study on IBBL’s CSR by in healthcare. So, a study on the CSR role of IBBL is an original contribution to literature
Islamic finance is still at the nascent stage in Australia. Furthermore, there have been reservations as to how and to what extent the systems of governance at State and Federal level should adapt in light of the intricacies faced by both... more
Islamic finance is still at the nascent stage in Australia. Furthermore, there have been reservations as to how and to what extent the systems of governance at State and Federal level should adapt in light of the intricacies faced by both local institutions offering Islamic financial services (IIFS) and prospective Islamic investors from overseas looking to invest their petrodollars in Australia. This paper takes a contextual and critical look at the current legal and regulatory framework with special focus on taxation and prudential standards. It also explores the perspectives of the principal stakeholders whose collective views and interests will determine the approach the Australian government, is likely to take in respect of Islamic finance.
This research is a critical analysis of the practice of certain Islamic banks (IBs) and institutions offering Islamic financial services (IIFS). Under the guise of Islam, these IBs and IIFS are, in fact, profit... more
This  research  is  a  critical  analysis  of  the  practice  of  certain  Islamic  banks  (IBs)  and  institutions offering Islamic financial services (IIFS). Under the guise of Islam, these IBs and IIFS are, in  fact,  profit  maximising  business  ventures.  Their  business  practices  are  not  in  compliance  with  relevant  rules  and  practices  of  Shari`ah.  Nevertheless,  due  to  the  absence  of  a  strong  and  dedicated  regulatory body, no challenge can be mounted against them. The customer base of these IBs and IIFS is faith-based, trusting the institutions to be, in fact, Shari`ah compliant. But in absence of a watchdog, the good-will turns out to be a tool to betray public trust. It makes a mockery of the entire IF industry. Most of these IBs and IIFS today grant their Shari`ah Advisory Committees’ (SACs) an advisory role, making their findings non-binding. There may be a true compliance for correcting any breaches found by  these  bodies,  but  yet,  legality  works  in  a  particular  way.  In  the  absence  of  executive  power  being  granted to these bodies in the institution’s bylaws, a bank or institution will fail the legal definition of being Shari`ah compliant. Compliance with the Shari`ah in transactions is either obligatory or optional! There is no second way! At the end, the issue boils down to that of conscience and compliance where one  is  made  victim  for  lack  of  it  on  the  part  of  regulatory  establishment.  Whereas  on  the  part  of  the  subjected businesses, they are no more than commercial ventures bent on making profit by any means using appealing slogans! Given the current practice of IBs and IIFS, the study suggests that their SACs must function independently and beyond the control of the banks' own executive apparatus. The power and  status  of  these  SACs  must  be  stipulated  within  the  bylaws  of  the  institutions.  Their  powers  must  include the authority to take disciplinary measures against any managers or employees responsible for non-compliance. Most of such IBs and IIFS seem to fail on this crucial provision. Therefore, the study finds that such IBs and IIFS are not legally Islamic
Purpose – The purpose of this paper is to provide an exploratory analysis Islamic finance products for housing finance in the UK market and make a comparative study of all available products in the market in order for... more
Purpose – The purpose of this paper is to provide an exploratory analysis Islamic finance products for housing finance  in  the  UK  market and  make  a  comparative  study  of  all  available  products  in  the  market  in  order  for drawing out the best product presented. To this end, the study examines the key Sharī’ah compliant products offered  by  different  Islamic  financial  service  providers  for  home  financing  in  the  UK  and  finds  as  to  which product offers the best value for money among its competitors. 

Design/methodology/approach – The  study  reviews  the  various  methods  available  and  attempts  to  justify their  use  for  both  parts  of  the  study,  part  1  of  which  deals  with  the  methods  used  for  the  review  of  the  key principles of Islamic banking and the surrounding subject area, while the other part discusses the variables and approaches  used  for  the  cross-product  analysis.  The  research  method  adopted  is  qualitative  in  nature  using first  and  secondary  data.  The  research  of  first  part  of  the  study  is  qualitative  and  is  conducted  through  a literature  review.  The  second  part  of  the  study  involved  collecting  primary  data  with  regards  to  the  Islamic housing finance market in the UK.

Findings – The  research  finds  that  if  a  prospective  applicant  for  an  Islamic  housing  finance  does  not  have sufficient  savings  for  a  high  deposit and accepts the Sharī’ah compliance products of Islamic home financing providers  in  the  UK,  then  the  Ahli  United  Manzil  Home  purchase  programme  is  the  most  suitable  and competitive;  although  highest  application  fees  incur.  Otherwise  the  applicant  will have  to  wait  until  the Sharī’ah compliance products have been thoroughly established.

Practical implications – The study recommends that an independent Sharī’ah advisory Board be set up in order to confirm and analyse the Sharī’ah issues pertaining to Islamic home financing, in an objective manner.

Originality/value – The paper provides (so far as the authors are aware) the first cross-product analysis of the products  offered  by  Islamic  housing  finance  providers  in  the  UK  with  the  aim  of showing  the  best  home financing mode in terms of cost and also the product that complies most with the Sharī’ah.
Islamic banks, similar to their conventional counterparts face plethora of risks, which ultimately affect their operations and hence the performance. They are also required to take additional measures for scaling liquidity management... more
Islamic banks, similar to their conventional counterparts face plethora of risks, which ultimately affect their operations and hence the performance. They are also required to take additional measures  for  scaling liquidity  management  due  to  their  unique characteristics and requirements of the strict compliance of Shari‘ah principles. Banks without having adequate liquidity, face various forms of risks such as those of fiduciary, displaced commercial, and other risks associated to them, which might lead to affect their financial stability as a whole. The key objective of this paper is to analyse the management of liquidity risk in Islamic banks’ liabilities. Malaysian Islamic banking sector has been chosen as a case study. Keeping in view of this, the study examines inter alia the significance of size of the firm, capitalization, bank specialization and loan loss reserve ratio of some selected Islamic banks in Malaysia. The results show that the liquidity management of these Islamic banks is formed by the bank specification factors. The study recommends the concerned authority to implement all necessary means of integrated and comprehensive program in order for the management of liquidity risk to improve.
Islāmic banking is growing at double digit rate annually. Bangladesh is the third largest Islāmic country in the world in terms of Muslim population. The Islāmic finance industry is growing in Bangladesh as well as its challenges and... more
Islāmic banking is growing at double digit rate annually. Bangladesh is the third largest Islāmic country in the world in terms of Muslim population. The Islāmic finance industry is growing in Bangladesh as well as its challenges and critiques. It is interesting research question to explore the demand for Islāmic banking in the presence of a strong conventional banking culture in a developing country like Bangladesh. This study is primarily concerned with the theory of Islāmic banking and its practice in Bangladesh. It examines: (a) the Sharī‘ah principles for operation of Islāmic banking in Bangladesh, (b) the genesis of Islāmic banking in Bangladesh, (c) the factors which have led to the emergence of Islāmic banking as well as the growth, development and future of Islāmic banking in Bangladesh, and (d) the deposit and investment mechanisms of Islāmic and conventional banking in Bangladesh. The results show that both the bankers and bank customers have confusing notions about Islāmic banking practices, partly due to lack of proper knowledge about the fundamentals of Islāmic finance and also due to Islāmic banks’ over-reliance on short-term trade financing. The findings also indicate that although Islāmic banks in Bangladesh are competing successfully with their conventional counterparts in an environment where no independent guidelines or Act exist for them, the products and services they provide often seem to resemble with those provided by conventional banking. We suggest that regulatory authorities of Bangladesh should provide a well-defined and explicit legal and regulatory framework that, being consistent with Islāmic Sharī‘ah, should be realistic and flexible enough to meet internationally recognized prudential and supervisory requirements.
Tabarru` (unilateral gratuitous contribution) is thought to be the basic concept that distinguishes Takaful from conventional non-Sharīʿah compliant insurance. The Sharīʿah compliance of its current practice has been questioned in the... more
Tabarru` (unilateral gratuitous contribution) is thought to be the basic concept that distinguishes Takaful from conventional non-Sharīʿah compliant insurance. The Sharīʿah compliance of its current practice has been questioned in the premise that, a) it is a form of commutative contract; b) it is akin to the commercial corporate structure of insurance companies due to its following the same marketing strategies, allocation to reserves, sharing of underwriting surplus by the companies one way or the other, providing loans to the Takaful funds, and resultantly absorbing the underwriting losses. The Sharīʿah scholars are of the view that the relationship between participants in Takaful should be in the form of commitment to donate, under which a contributor makes commitments himself to donate a sum of money for mutual help and cooperation on the condition that the balance, if any, should be returned to him. With the aim of finding solutions to the above-mentioned concerns and other Sharīʿah related issues the study seeks to investigate whether the Takaful companies are functioning in accordance with the Islamic principles of brotherhood, solidarity and cooperative risk sharing. Given that it discusses the cooperative model of Takaful to address the current and future Sharīʿah related and legal concerns. The study proposed an alternative model and considers it to best serve the objectives of Takaful which operates on the basis of ta`awun or mutual co-operation.
Islamic microfinance provides an alternative model for a significant number of underprivileged people who are not served by conventional microfinance. In order to give access to sustainable services to a greater extent, the Islamic... more
Islamic microfinance provides an alternative model for a significant number of underprivileged people who are not served by conventional microfinance. In order to give access to sustainable services to a greater extent, the Islamic microfinance is in paramount need of the adoption of innovative business models and sound practices into the industry. To this end, the research seeks to propose two tier mudarabah model based on cash waqf as an alternative to Islamic microfinance institutions. The objectives of the study are: to a) help develop and implement an appropriate business model; b) safeguard the maqasid al-Sharīʿah so as to promote the well-being of the people through establishing justice and eliminating hardship; and c) help make a reform in the present institutional framework for Islamic microfinance and waqf institutions. The study finds that cash waqf based microfinance institutions can play an important role inter alia in financial inclusion and developing socio-economic conditions of the poor and underprivileged people in society.
Sharing and Transferring Risks in Retakaful and Conventional Reinsurance: A Critical Analysis Abstract This study undertakes an analysis of the risks in retakaful whether they are shared by the participating takaful operators (TOs) and... more
Sharing and Transferring Risks in Retakaful and Conventional Reinsurance: A Critical Analysis

Abstract

This study undertakes an analysis of the risks in retakaful whether they are shared by the participating takaful operators (TOs) and retakaful fund or are transferred to retakaful operators (RTOs). In the latter case RTOs become liable for deficits where the losses, if any, would directly affect all retained portfolios. The study finds, notwithstanding the aim of retakaful to allow TOs to reduce the financial impact on their respective takaful fund (TF) arising from catastrophic losses, that there exists a mismatch between the theory and current risk-sharing practice of retakaful whereby RTOs manage the TF on behalf of their respective participants.
Zakah which is the third of the five basic pillars of Islam is considered as an integral part of an Islamic social welfare system since it ensures the rights of poor and needy in the wealth of the rich and as such acts as a tool for... more
Zakah which is the third of the five basic pillars of Islam is considered as an integral part of an Islamic social welfare system since it ensures the rights of poor and needy in the wealth of the rich and as such acts as a tool for distribution of wealth in eradicating poverty in society. This study discusses the potentials of zakah in distributing economic justice and alleviation of poverty. Keeping this objective in view, the study attempts to discuss: a) the concept of redistributive justice from conventional as well as Islamic economics point of view, b) the well-known schools of thought in political philosophy of redistributing income, and c) the salient features of the Islamic strategy for the realisation of the desired pattern of distribution. Zakah is designed to eliminate poverty – both in the short- and long-term basis. Besides, being a collection of redistributive measures it has great scope to play an important role in distributing justice in an economy.
Islamic finance, which spurns activities outlawed by Islam, is considered a viable ethical alternative to conventional financing. The traditional court system applicable for Islamic finance in most countries, has proven to be inadequate,... more
Islamic finance, which spurns activities outlawed by Islam, is considered a viable ethical alternative to conventional financing. The traditional court system applicable for Islamic finance in most countries, has proven to be inadequate, particularly in its application and interpretation of the Sharī‘ah. Malaysia has consistently proved its prime position in blazing the trail in most legal and regulatory issues in the Islamic finance industry. The key objective of the study is to examine the institutional framework for alternative dispute resolution (ADR) in the Islamic finance industry in Malaysia. In line with this objective, the research attempts to: a) make a conceptual analysis of effective ADR processes in Islamic law; b) discuss the importance and rationale of ADR in Islamic finance; c) delineate the evolution and features of ADR mechanisms in Malaysia; d) explore avenues for ADR applicable for Islamic finance in Malaysia; e) discuss the legal and regulatory framework applicable for these institutions in relation to Islamic finance; and f) propose the best mechanism in settling dispute via ADR in Islamic finance. The methodology chosen for this study is to undertake the direct observation from legal and regulatory perspectives, and an analysis of some landmark cases of Malaysian courts. The study finds that there is a pressing need of the consolidation of the existing bodies rather than duplicating efforts in the establishment of more ADR bodies that is aimed to help handle Islamic finance disputes. The recommendations put forward for this study are expect ed to help drastically reduce the existing tension in the Islamic finance industry, which is occasioned by the increasing number of cases in the court and the attendant misapplication of underlying principles of Islamic financial contracts brought before the courts.
This article examines the occurrence and legal implications of ‘fatwā shopping’ in the Islamic finance industry and the need to put the proper legal mechanisms in place to regulate the phenomenon. It provides a case study of the existing... more
This article examines the occurrence and legal implications of ‘fatwā shopping’ in the Islamic finance industry and the need to put the proper legal mechanisms in place to regulate the phenomenon. It provides a case study of the existing legal restrictions in some jurisdictions with a centralised Sharīʿah Supervisory Board at the national level such as in Malaysia. As a preliminary review of the implications of ‘fatwā shopping’ in the industry, this study examines the consequential problems, current perceptions and prospects of such practice. The study finds that instances of ‘fatwā shopping’ are common in cross-border Islamic finance transactions such as cross-border ṣukūk transactions where there is less regulation.
The growing interest in waqf accountability practices has influenced this study to construct a model of waqf accountability with a specific focus on Islamic accountability theory and then expand the model towards establishing the stimulus... more
The growing interest in waqf accountability practices has influenced this study to construct a model of waqf accountability with a specific focus on Islamic accountability theory and then expand the model towards establishing the stimulus of waqf accountability disclosure. This paper is conceptual in nature and depends on past literature of both conventional and Islamic charity in establishing various facts, arguments, and finally it develops the accountability model. The paper has produced a model to capture waqf accountability relationships involving stakeholders at two different dimensions. It attempts to separate upward and downward accountability and introduce a new set of accountabilities, i.e., the primary and secondary. The proposed model is expected to improve accountability and transparency in awqaf institutions. The model expands the existing Islamic accountability framework by adding two new dimensions through integrating propositions from the stewardship theory.
Un marché boursier vigoureux et dynamique, faisant partie intégrante d'un système financier islamique résilient et durable, joue un rôle vital dans le développement économique global d'un pays. Cependant, la contribution des investisseurs... more
Un marché boursier vigoureux et dynamique, faisant partie intégrante d'un système financier islamique résilient et durable, joue un rôle vital dans le développement économique global d'un pays. Cependant, la contribution des investisseurs musulmans au marché des actions nécessite la disponibilité de valeurs mobilières conformes à la Charia pour qu'ils puissent investir. Ces valeurs doivent satisfaire un certain ensemble de critères de filtrage charaïque avant tout investissement. L'Organisation de Comptabilité et d'Audit des Institutions Financières Islamiques (AAOIFI) propose un critère de sélection des stocks afin de les inclure dans la liste "Charia-compatibles". Ce critère comprend cinq filtrages au total. Les objectifs de cette étude sont triples: 1) analyser de manière critique le critère de l'AAOIFI et fournir la justification de la Charia qui sous-tend ces filtrages; 2) développer et introduire un filtrage unique à inclure dans le critère en remplacement de l'un des filtrages existants; et 3) suggérer de réexaminer l'un des filtrages existants et proposer de retirer deux filtrages du critère. Pour résumer, ce document préconise des changements majeurs dans le critère de l'AAOIFI basés sur des justifications plus poussées de la Charia. Les résultats de cette étude devraient non seulement fournir une solution efficace et pratiquement durable, mais aussi permettre à davantage d'entreprises d’être Charia-compatibles et fournir aux investisseurs musulmans un plus large univers de valeurs mobilières conformes à la Charia sur lesquels porter leur choix d’investissement.
A vigorous and vibrant equity market being an integral part of a resilient and sustainable Islamic financial system, plays a vital role in the overall economic developments of a country. However, the contribution of Muslim investors to... more
A vigorous and vibrant equity market being an integral part of a resilient and sustainable Islamic financial system, plays a vital role in the overall economic developments of a country. However, the contribution of Muslim investors to the equity market requires the availability of Sharīʿah compliant stocks for them to invest, which must pass a certain set of Sharīʿah screening criteria prior to any investment. The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) offers a criterion for screening stocks to include them in the Sharīʿah compliant list, which consists of total five filters. The objectives of this study are three-fold: 1) critically analyse AAOIFI’s criterion and providing the Sharīʿah justification behind these filters; 2) develop and introduce a unique filter to be included in the criterion as a replacement of one of the current filters; and 3) suggest to re-examine one of the existing filters, and proposes the removal of two filters from the criterion. To sum up, this paper advocates major changes in AAOIFI’s criterion based on stronger Sharīʿah justifications a. It is expected that the findings of this study would not only provide an efficient and practically sustainable solution, it would also enable more companies to become Sharīʿah compliant, and provide Muslim investors a wider universe of Sharīʿah compliant stocks to choose from for their investment.
Takāful has emerged as a Sharīʿah-compliant alternative to conventional insurance, which is embedded in realising its underlying maqasid (goals or objectives) of Sharīʿah. Contrary to previous studies that attempted to provide evidence... more
Takāful has emerged as a Sharīʿah-compliant alternative to conventional insurance, which is embedded in realising its underlying maqasid (goals or objectives) of Sharīʿah. Contrary to previous studies that attempted to provide evidence that takāful products are compliant with the Sharīʿah in practice of takāful operators (TOs), this paper seeks to take a different approach to investigate their compliance with the fulfilment of  the three broad categories of  maqasid  al-Sharīʿah. In light of the theoretical perspectives of maqasid, each objective was operationally defined for statistical analysis. Six TOs from Malaysia were selected, and five-years’ data (2011-2015) have been collected from World Bank’s websites and annual reports. Secondary data were analysed through balanced panel data approach. Hausman test results indicate that fixed effect model is more appropriate in explaining the explored phenomena. Taxes paid by TOs were found to have a significant positive impact on economic growth and poverty alleviation while payment of zakah found to have a negative impact. The prohibition of riba (interest) should not be the only decisive difference between Islamic finance and its conventional counterpart. Islamic banks (IBs) and TOs are accountable toward Allah, and thus their activities should be directed toward the fulfilment of maqasid al-Sharīʿah. While earlier published literature has explored efficiency and profitability of TOs, the current paper has attempted to focus on the ability of TOs in serving the maslaha (public interest/common good of the community).
The 2007-2008 global financial crises had brought severe financial instability in financial institutions, and since then it became more complex and irreparable. Therefore, it has become inevitable to examine various tools that can monitor... more
The 2007-2008 global financial crises had brought severe financial instability in financial institutions, and since then it became more complex and irreparable. Therefore, it has become inevitable to examine various tools that can monitor resilience of these financial institutions, especially the banking system that plays significant role in economic development of a country. Although Islamic banking operates in the same financial environment, its distinguishing features and fundamental differences demand different treatment in building resilience. The scope of existing literature of banking surveillance tools is either to some extent, mostly limited to banking sector in general, or  it is dominated by partial developments. Hence, there is a significant gap that lies in the literature to address the specificity of Islamic and conventional  banking surveillance tools analysis to build resilience that can contribute to reduce the span of financial instability in a country. This study seeks to explore to fill in this gap in Indonesian jurisdiction. The study finds that optimum resilience level of Shari`ah banking in Indonesia exists in specific range as a result of the contribution that is made by each and  every indicator. The study also attempts to find a way to trace some indicators that could effectively contribute to prevent the instability of Shari`ah compliant banking system in Indonesia.
Sukuk restructuring primarily aims at offering a debtor more latitude, in form and time, to settle his obligations. To meet Shari’ah requirements of transferring assets to Sukuk holders in asset-based Sukuk, the originator usually... more
Sukuk restructuring primarily aims at offering a debtor more latitude, in form and time, to settle his obligations. To meet Shari’ah requirements of transferring assets to Sukuk holders in asset-based Sukuk, the originator usually transfers the beneficial ownership to the issuer special purpose vehicles (SPV). However, in asset-backed Sukuk, the originator sells the underlying asset to an SPV and Sukuk holders do not have recourse to the originator in the event of defaults. Among some key unresolved Shari’ah issues in this regard is whether a change of contract necessitates entering a new contract. Other related issues that conflict with the tenets of Shari’ah are: (1) Sukuk structuring on tangible assets and debts; (2) receiving the full title by the Sukuk holders to the underlying assets in the event of default in case of securities that are publicized as asset backed; (3) Sukuk’s similarity with interest bearing conventional bonds: (a) capital guarantee by the originator or third party, (b) the originators’ promise to repurchase Sukuk at face value upon their redemption, and (c) providing internal and external credit enhancement. The Shari’ah-compliance of the above-mentioned clauses and structures of Sukuk remain debated among the Shari’ah scholars. Based on some specific cases, this study examines the Shari’ah viewpoint on sukuk restructuring and potential solutions to these unresolved Shari’ah issues in light of the past and recent declaration of some Sukuk defaults as non-Shari’ah complaints. Undoubtedly, resolution of these and other unresolved issues pertaining to Sukuk defaults can help strengthen the confidence of investors in Islamic capital market structures.
Purpose The key purpose of this study is to make awareness for faithful Muslims who are interested to invest in Islamic capital markets so as to enable them making right decision while considering investment in Sukuk over conventional... more
Purpose
The key purpose of this study is to make awareness for faithful Muslims who are interested to invest in Islamic capital markets so as to enable them making right decision while considering investment in Sukuk over conventional interest-bearing bonds.

Design/methodology/approach
This study reviews past literature to analyse contemporary Sukuk risks and discusses several mechanisms to mitigate those risks.

Findings
The study shows that Sukuk can be good alternatives to conventional bonds. Sukuk structures need to be further developed to fulfil the Sharīʿah compliance requirements.

Research limitations/implications
This study is exploratory in nature, and as such, it seeks to identify the risks related to Sukuk issuance. Given this limitation, it did not provide empirical evidences relating to any specific category of Sukuk risks.

Practical implications
An in-depth knowledge of Sukuk risks would help both academicians and investors understand the potential problems related to Sukuk structures and take precautions in the early stage to prevent causes of being defaulted or bankrupt.

Originality/value
The risks related to Sukuk have been explored in all potential roots. This study has offered some significant techniques to prevent the relevant risks for investors’ benefits. Information being provided throughout this study is expected to serve potential investors in Sukuk as a guide to make right decisions and enable them to minimise the risk to secure healthy returns on their investments.
Countries within the Asian region are continuously struggling to improve the living standards of their citizens. Some of them are still facing a plethora of challenges due to the ever-increasing levels of both relative and absolute... more
Countries within the Asian region are continuously struggling to improve the living standards of their citizens. Some of them are still facing a plethora of challenges due to the ever-increasing levels of both relative and absolute poverty. This is especially among the poorest of the poor who have no access to the mainstream financial services. The conventional microfinance institutions have been greatly criticised for their dubious acts of charging exorbitant interests. Islamic microfinance has therefore, been seen as one of the viable alternatives to meeting the challenges of poverty and as an opportunity in the livelihoods of the people in the Asian region. This article analyses the magnitude at which Islamic microfinance can play a fundamental role in alleviating insignificant poverty levels in Brunei Darussalam through using a proposed Mudarabah financing model.
Purpose This paper aims to compare and contrast the concept of conventional futures contract from the Islamic law of contract perspectives. The underlying theory and practice of Islamic finance is based on the principles of Islamic law of... more
Purpose
This paper aims to compare and contrast the concept of conventional futures contract from the Islamic law of contract perspectives. The underlying theory and practice of Islamic finance is based on the principles of Islamic law of contract. Although the necessity of derivative instruments such as the case with futures contract is essential for developments in Islamic finance, the permissibility of using these instruments still remains a debatable issue.

Design/methodology/approach
The paper discusses arguments for and against using derivative instruments as in futures, for example, in light with the Qur’an and Sunnah (the Prophet’s traditions), as well as the views of classical scholars, jurists and contemporary researchers. Arguments for and against are analysed systematically to derive a logical conclusion.

Findings
The study finds that majority scholars consider futures contracts as non-compliant with the Islamic law due to the fact that selling something that does not exist, deferment in the both counter values, gharar or ambiguity and excessive risk taking, pure speculation and sale of one debt for another.

Research limitations/implications
The study focuses narrowly on conventional futures contract. Analysing other financial derivative contracts could be a future research endeavour.

Practical implications
The study has so far found the verdict of impermissibility of conventional futures contract in its current form as has been argued by majority scholars in the premise that they do not comply with the Islamic law. Policymakers and industry practitioners need to take this opinion of majority scholars while developing new Islamic financial derivatives.

Originality/value
To the best of the author's knowledge, the present research is the first attempt so far that explained the validity of conventional futures by analysing arguments of classical and contemporary jurists, scholars and researchers.
Ijarah mawsufah fi al-dhimmah (hereinafter referred to as IMAD), also known as forward ijarah¸ is an Islamic financial product that involves the sale of an identified asset currently being produced or constructed for a future delivery... more
Ijarah mawsufah fi al-dhimmah (hereinafter referred to as IMAD), also known as
forward ijarah¸ is an Islamic financial product that involves the sale of an identified
asset currently being produced or constructed for a future delivery such as a
property, office, factory, and so forth. In the classical fiqh literature, it has been
discussed under the general purview of leasing and forward sale contracts. However,
in the context of modern Islamic finance practice Islamic banks and financial
institutions have upheld its usage as an independent financial instrument. The
contemporary scholars claim that except for Hanafi, other key fiqh schools consider
IMAD as an Islamic financial product. The study is an attempt to prove that such a
claim is merely based on assumption. Besides, it is motivated by lack of holistic study
of Hanafi’s original reference books. The methodology chosen for this study is
content analysis of the relevant published literatures. The study finds that no
classical scholars including those of Hanafi school of thought were in disagreement
so far over the IMAD to consider it as an independent and standalone Islamic finance
product. The study aims at reconciling scholars’ different views on the issue of IMAD
for its wider acceptance.
This study seeks to highlight the implications of governance and reporting practices in ensuring accountability and building donors trust in Waqf Institutions (WIs). Data gathered through the survey are analysed using PLS-SEM technique.... more
This study seeks to highlight the implications of governance and reporting practices in
ensuring accountability and building donors trust in Waqf Institutions (WIs). Data
gathered through the survey are analysed using PLS-SEM technique. The conceptual
model was developed based on the critical review of the past literature. Among the
three proxies of board attributes, only board ability has a significant positive impact on
accountability. Voluntary information disclosure has a significant positive impact on
accountability. Accountability has a significant impact on building trust in waqf
management. Results provided by the study advocates for the adoption of formal
reporting and improved governance mechanisms to enhance donors’ trust in WIs.
The companions of the Prophet Muhammad (صلى الله عليه و سلم) who devoted their lives in understanding and propagation of Islam possess the most highly regarded and noblest status amongst all the Muslims, as envisaged in the Quran and the... more
The companions of the Prophet Muhammad (صلى الله عليه و سلم) who devoted their lives in understanding and propagation of Islam possess the most highly regarded and noblest status amongst all the Muslims, as envisaged in the Quran and the Sunnah. This paper deals with the issue of Fiqhi status of Qawl al-Sahabi (Islamic verdict or fatwa of the companions) in the discipline of Islamic jurisprudence. The paper offers an extensive qualitative analysis of various views on the subject matter. The paper maintains that the majority of Muslim jurists are of the view that the legal opinions of the companions are considered as an authoritative source of Islamic law under specified conditions, and as such the Muslim jurists, from the past and present alike, heavily rely upon these opinions to support their own Islamic legal judgments (Fatawa). Besides, the opinions of the companions also play a very vital role as supportive underlying evidences in Fiqh al-Mua`malat. Given the same paramount significance of these opinions, they are also treated and used, along the line with other secondary sources of Shari`ah, in Islamic finance as proofs for contemporary Fatawa. The paper argues that this secondary source of Shari`ah can be creatively utilised for further inventions and innovations in Islamic finance along with other sources.
The practices of contemporary Islamic finance have been mounted with criticisms that are assumingly based on lack of incorporating the maqasid (goals and objectives) of Sharīʿah and failure to extrapolate all sources available for... more
The practices of contemporary Islamic finance have been mounted with criticisms that are assumingly based on lack of incorporating the maqasid (goals and objectives) of Sharīʿah and failure to extrapolate all sources available for ‘dynamising’ the Islamic legal theory and practice. Islamic legal maxim is one of the sciences which aphoristically subsume all the spectrums in which the purpose of Sharīʿah is promoted. There are five basic Islamic legal maxims on which the tenet of Sharīʿah is based. Some are of general application, while others apply to a particular area of Islamic Jurisprudence including fiqh al-mu`amalaat (the jurisprudence of financial transactions). One such maxim which is reflected in this notion is a particular activity is permissible unless there is a clear prohibition against it. The study is aimed inter-alia to address how the application of the legal maxims to financial transactions can be explored to respond to criticisms mounted about Islamic finance practices.
Purpose The paper aims to examine significant developments in the institutional framework for dispute resolution in the Islamic finance industry in Malaysia. Malaysia, as part of its efforts to consolidate its enviable Islamic finance... more
Purpose
The paper aims to examine significant developments in the institutional framework for dispute resolution in the Islamic finance industry in Malaysia. Malaysia, as part of its efforts to consolidate its enviable Islamic finance industry, has strengthened its institutional framework for dispute resolution.

Design/methodology/approach
Data for this study were collected from both primary and secondary legal sources. Through a conceptual legal analysis, the institutional frameworks of dispute resolution in the Malaysia’s Islamic finance industry are studied.

Findings
The study finds that Malaysia is far ahead of other jurisdictions by a significant margin in spearheading reforms in the emerging global Islamic finance industry. The dispute resolution framework has been largely affected by the recent reforms.

Research limitations/implications
Other jurisdictions may borrow a leaf from Malaysia’s initiative in providing a robust legal framework for dispute management in the Islamic finance industry.

Practical implications
Apart from adopting Malaysia’s framework and possibly adapting it to suit their specific local variations, other jurisdictions may also encourage Islamic financial institutions to incorporate effective dispute resolution processes in Islamic finance contracts.

Originality value
This study critically discussed most recent developments in the institutional framework on dispute resolution in the Islamic finance industry in Malaysia.
Purpose - This paper analyses the CSR Role of Islami Bank Bangladesh Limited targeted to contribute in the economic, social and environmental betterment of Bangladesh as well as for its citizens Methodology - For the purpose of this... more
Purpose - This paper analyses the CSR Role of Islami Bank Bangladesh Limited targeted to contribute in the economic, social and environmental betterment of Bangladesh as well as for its citizens

Methodology - For the purpose of this study, Content Analysis has been considered as the most appropriate research method. To understand the role of IBBL in CSR activities in Bangladesh, a content analysis has been conducted utilising relevant articles, books, periodicals, annual reports and websites
Findings - The study reveals that IBBL is making significant contribution towards Bangladesh society through its CSR activities. It is evident that IBBL effectively addresses the social, environmental and economic concerns of Bangladesh within its limits

Research limitations - This study is based on content analysis, which requires the access to all relevant information, which is limited in case of IBBL, except the Annual Reports, websites and a few journal articles on the CSR activities of this bank
Practical implications: This study will be a useful tool for future researchers. This study will also be a good source of information for different users like government, NGOs and civil society members.

Originality - The number scholarly work on CSR in Bangladesh from Islamic perspective is very limited. Moreover, there has been no prior work on IBBL’s CSR performance except a study on IBBL’s CSR by in healthcare. So, a study on the CSR role of IBBL is an original contribution to literature.
The dispute resolution framework in Islamic finance as practiced in most countries has proven to be inadequate, particularly in its application and interpretation of the Sharīʿah. Malaysia has consistently proven its prime position in... more
The dispute resolution framework in Islamic finance as practiced in most countries has proven to be inadequate, particularly in its application and interpretation of the Sharīʿah. Malaysia has consistently proven its prime position in blazing the trail in most legal and regulatory issues in the Islamic finance industry. It has recognised the increasing importance of the architectural aspects of the industry such as the need to establish the dispute resolution framework. Muslim scholars have continuously argued that alternative dispute resolution (ADR) has its source in the prime references of Islamic law since it is a practice encouraged in Islam. Therefore, dispute resolution in Islamic law is a wide area of study that, though similar to the conventional practice of ADR, has its unique principles and concepts. The varieties of dispute resolution processes have been practiced since the advent of Islam about fourteen centuries ago. These processes are worth exploring and adapting to suit the modern needs of Muslims across the world. Actually, dispute resolution has been a human practice since time immemorial because disputes are inevitable in human relationships. ADR is a range of processes for amicable resolution of disputes outside the formal court procedure of litigation; it involves a neutral third party who intercedes to resolve the dispute. When disputes are channelled through the formal court system, the parties tend to be farther from each other after the judgment because the judgment of the court leads to a win-lose situation in which one of the parties rejoices with pom while the other party wallows in anguish.  In order to avoid a winner-takes-all syndrome, as generally occurs in litigation, effective alternatives were created which satisfy the needs of many litigants.  Experience has shown that ADR provides a complementary substitute to litigation. ADR facilitates the administration of the justice system and ensures speedy justice without compromising the rights and liabilities of the parties. In essence, ADR leads to a win-win settlement where the parties resolve the ensuing dispute amicably and secure ongoing relationships. Islamic finance disputes cannot afford to suffer from protracted delays in the administration of the justice system. The disputes emanating from the Islamic finance industry are sui generis and require a speedy and efficient framework for amicable resolution considering the need to secure ongoing business relationships and considering the recent fluctuations experienced in the financial markets across the world. This makes ADR attractive to the Islamic finance industry. Malaysia has blazed the trail in putting in place an adequate framework for dispute resolution in the industry. Such a step may not be surprising, as ADR is ingrained in the culture of Malaysians.
This article examines current legal and regulatory issues of Islamic banking in Bangladesh. The most important issue in this context is the lack of a well‐defined regulatory and supervisory framework for Islamic banks for their effective... more
This article examines current legal and regulatory issues of Islamic banking in Bangladesh. The most important issue in this context is the lack of a well‐defined regulatory and supervisory framework for Islamic banks for their effective functioning in line with the tenets of Sharīʿah. Other major issues come from the absence of an interbank Islamic money market, following the same policy and guidelines for Islamic and conventional banking by the Bangladesh Bank, presence of a discriminatory legal reserve requirement for Islamic and conventional banking, prevalence of a restrictive environment in the capital market, and the lack of legal support and protection of Bangladesh Bank to avoid the associated risks of Islamic banks. For this purpose, it is suggested that Islamic banks in Bangladesh should have an independent banking act that controls, guides, and supervises their functions and provide legal support to the parties concerned.
Purpose - The purpose of this paper is to contribute to the existing body of work in the area of Islamic finance by examining the regulation of Islamic finance in Australia. Design/methodology/approach - The method employed in this paper... more
Purpose - The purpose of this paper is to contribute to the existing body of work in the area of Islamic finance by examining the regulation of Islamic finance in Australia.

Design/methodology/approach - The method employed in this paper is a mixture of direct observation from legal and regulatory perspectives and authors' personal experience, curiosity, and association with this industry.

Findings - In Australia, where Muslims are minorities and full‐fledged Islamic banks are absent, it is expected that regulatory authorities would ensure there is a level playing field, so that neither Islamic financial services providers (IFSPs) nor conventional financial institutions are disadvantaged. They have also been expected to approve and monitor Islamic financial products, including those offered by Islamic managed funds.

Research limitations/implications - The study is undertaken through the Sharī‘ah, where law, finance, economics, and business form a single dimension only, even though a very significant one. No attempt is made to evaluate the economic efficiency and profitability or otherwise, of IFSPs in Australia. Also, the approach for the study is not supplemented by any empirical work (e.g. by quantitative analysis of data or by survey or other qualitative methodologies).

Practical implications - The paper practically examines: the impact of banking and financial services regulation on Islamic banking and financing practice in Australia; and what further legislative measures and changes are needed to accommodate Islamic financing practice into Australian society to make it a truly viable alternative system of financing for Muslims in Australia.

Originality/value - Examination of the issues of the study is originally undertaken through one of the authors' personal expertise and working experience with some IFSPs in Australia, aiming at developing the relevant regulations by the Australian regulatory regime to make Islamic finance a viable alternative system of financing for Muslims in Australia.
The Islamic framework within which this study examines is the role of Zakah in redistributive justice. To this end, the following relevant topics were aimed to cover. First, "redistributive justice" is conceptualized. Second, to ground... more
The Islamic framework within which this study examines is the role of Zakah in redistributive justice. To this end, the following relevant topics were aimed to cover. First, "redistributive justice" is conceptualized. Second, to ground this concept the Islamic viewpoints towards redistribution are highlighted followed by a short discussion on prominent schools of thought in political philosophy of redistributing income. Third, important features of the Islamic strategy for the realisation of the desired pattern of distribution are traced. Fourth, the core topic of the study is elaborated in which the analysis relies on tentative results from an empirical study on how much would be the yield of Zakah in modern economy if it was paid on all kinds of assets liable to it. Finally, an attempt is made to establish one of the pertinent conclusions of this study i.e. how Zakah being a collection of redistributive measures can play an important role in an Islamic economy.
Bank regulation is now integrated with general financial regulations in most countries, though countries may differ as to the particular approach they adopt – for example the unitary model in the UK compared to the multilateral in... more
Bank regulation is now integrated with general financial regulations in most countries, though countries may differ as to the particular approach they adopt – for example the unitary model in the UK compared to the multilateral in Australia. Since the working mechanism of Islamic finance is different than the conventional finance, accommodation of this into the current regulative framework can pose certain difficulties in countries such as UK and Australia. The underlying objective of this paper is to explore how the existing UK regulatory framework for Islamic banking and finance practice would be adopted into Islamic finance in Australia and, thus, make it a truly viable alternative system of financing for Muslims in Australia. To achieve this objective the paper examines the appropriateness of the UK regulatory approach for Islamic banking and finance for adoption into Australia.
The time value of money is a basic investment concept and a basic element in the conventional theory of finance. The Shari`ah does not rule out this consideration, for it does not prohibit any increment in a loan given to cover the price... more
The time value of money is a basic investment concept and a basic element in the conventional theory of finance. The Shari`ah does not rule out this consideration, for it does not prohibit any increment in a loan given to cover the price of a commodity in any sale contract to be paid at a future date. What is prohibited, however, is making money’s time value an element of any lending relationship that considers it to have a predetermined value. Here, the Shari`ah requires that a loan be due in the same currency in which it was given. The value (i.e., purchasing power) of paper currencies varies due to changes in many variables over which the two parties of a loan contract usually have no control. This study examines possible modus operandi of time valuation according to the Shari`ah’s precepts vis-à-vis the concept of money, and whether any value can be attributed to time while considering money’s value. For this purpose, it investigates the juristic views on such relevant issues as the permissibility of difference between a commodity’s cash and credit prices and an increase and reduction of the loan’s amount in return for early repayment.
Bangladesh has the third largest Muslim population in the world after Indonesia and Pakistan. Higher demand of Islamic banking products and services requires existence of superior quality in service, efficiency in system, strict... more
Bangladesh has the third largest Muslim population in the world after Indonesia and Pakistan. Higher demand of Islamic banking products and services requires existence of superior quality in service, efficiency in system, strict compliance to Islamic Sharīʿah and satisfactory community service through job creation and ensuring consistency in service provisions. The study finds that alongside religion being the rigorous factor for choosing Islamic banking, there are other factors which are significant to the customers when selecting a service provider. Upon carrying out the study, a total of 400 (371 successful surveys) samples were surveyed. A factor analyzed multiple regressions, while analysis was conducted to identify imperative factors rationalizing customer satisfaction with Islamic banking services in Bangladesh. The study revealed alongside religion, factors like depositors' desire to achieve highest return, convenient financial transactions system, consistency in service with uniformity, and higher cost-benefit implications were substantial to clients for choosing their intended services. The report recommended, inter alia, for strict compliance with Islamic Sharīʿah with emphasis on technological development, forming Centralised Sharīʿah council and integrated social development rather than private status building. Otherwise it would be a matter of concern for banks to amplify their customer’s satisfaction.
The Prophet admonished riba in its all forms in his farewell Pilgrimage speech. The article examines the principles of riba and how it fits within the realm of Islamic economics, as it is exemplified by the Prophet in his Sunnah and as it... more
The Prophet admonished riba in its all forms in his farewell Pilgrimage speech. The article examines the principles of riba and how it fits within the realm of Islamic economics, as it is exemplified by the Prophet in his Sunnah and as it is described in the Holy Qur’an. Consecutive verses of the Qur’an and its interpretations through the hadiths of Prophet are also portrayed in the article. Referring to a debate saying the modernists claim that what is prohibited in al-Qur’an is the form of riba referred to the then prevailing practice of lending in the pre-Islamic era, the authors boldly ruled out the logic saying that any increase over and above the principal should be riba, and as such it is unlawful. The modernists also raised some debatable issues like ‘difference between riba and usury’ and ‘individual and institutional riba’. All these claims are defeated with sufficient Sharīʿah references. While responding the issues stated earlier, the authors categorically explored the inborn beauties of Islamic Banking as well as disclosed the distinctions between Islamic and Conventional Bank. The authors, in a nutshell, stress on the point in this paper that any form of riba is strictly avoided in the Islamic banking system.

And 11 more

Although the blockchain is still at its infancy stage, experts have already regarded its impact and effect as the beginning of a new technological revolution, particularly relevant to the financial services sector. There are various... more
Although the blockchain is still at its infancy stage, experts have already regarded its impact and effect as the beginning of a new technological revolution, particularly relevant to the financial services sector. There are various institutions offered by Shari`ah, like zakah, waqf, sadaqah, and qard hasan, which exist and are already established, not only in the Islamic juristic literature but also in the Muslim world. However, the role of such institutions has been marginalized due to various factors; hence, they fail to create a big impact at macro level. This chapter will critically analyse the role of fintech in rejuvenating the Islamic social financing products with the main focus on blockchain and smart contracts. It will explore the application and usage of blockchain and smart contracts in the context of zakah, waqf, and qard hasan. It will also serve the purpose of a comprehensive and crucial reference-point for the role of fintech, blockchain and smart contracts vis-à-vis Islamic social financing products.
The chapter attempts to focus on the potential problems and huge prospects of Islamic finance in Australia. Australian regulatory regime develops appropriate regulations to make Islamic finance a truly viable alternative for banking and... more
The chapter attempts to focus on the potential problems and huge prospects of Islamic finance in Australia. Australian regulatory regime develops appropriate regulations to make Islamic finance a truly viable alternative for banking and finance based on religious and ethical considerations for Muslims living in Australia. Islamic finance in Australia was established in an environment where conventional financial services providers are already in the market. The crucial challenge in this regard is that Islamic finance customers must enjoy similar, although not necessarily the same, protection as customers of conventional financial institutions. The future for Islamic finance in Australia might depend on whether the appeal of the products offered by the sector can broaden to people outside the minority Muslim community. The co‐operative nature of Islamic Financial Services providers in Australia may merge with each other for their future growth and development through attracting more capital and providing investment facilities.
Takaful has emerged in the global Islamic finance industry from the fundamental Islamic principles of ‘brotherhood’, ‘cohesion’ and ‘mutual assistance’, utilizing the virtuous contract of ‘donation’. Given that risks are inevitable both... more
Takaful has emerged in the global Islamic finance industry from the fundamental Islamic principles of ‘brotherhood’, ‘cohesion’ and ‘mutual assistance’, utilizing the virtuous contract of ‘donation’. Given that risks are inevitable both at individual and institutional levels, retakaful has been innovated as an Islamic alternative to conventional reinsurance so as to allow takaful operators (TOs) to reduce or mitigate the financial impact to their respective takaful funds (TFs) arising from the occurrence of such risks. Unlike conventional reinsurance where risks are transferred from the original insured to the insurance company and then from the insurance company to the reinsurer the concept of retakaful, like takaful, is based on risk sharing. Retakaful operators (RTOs) manage the TFs on behalf of their respective participants. The mechanism of retakaful would benefit TOs in the form of (1) risk spreading; (2) capacity boosting; (3) financial stability; and (4) protection against catastrophic losses. The research in the chapter examines the shari’ah issues related to retakaful as to whether risks are genuinely shared by the participating TOs/retakaful funds (RTFs) or transferred to RTOs, and whether participants should be responsible to provide additional fund to cover deficits in the RTFs that are managed by the RTOs. It suggests that in light of the very nature of the cooperative agreement and the small number of cedants vis-à-vis the number of participants in takaful, the cedants may be required in the contract to provide additional contributions in case the RTFs fall short of the claims lodged, or would accept pro-rata reduction in the bills to be paid during a period.
Purpose - Sukuk are popular means for governments to raise money through sovereign issues, and for corporations to obtain finance through corporate sukuk offerings. The purpose of this study is to critically examine the issues revolving... more
Purpose - Sukuk are popular means for governments to raise money through sovereign issues, and for corporations to obtain finance through corporate sukuk offerings. The purpose of this study is to critically examine the issues revolving around various aspects of sukuk such as regulation, performance and future challenges from different Asian market jurisdictions.

Methodology/approach - Using various sukuk structures and other literatures, this chapter critically investigates some general legal and regulatory requirements for sukuk issuance, its
required infrastructure in various jurisdictions in addition to some other relevant important issues to generate cash flows and raise finance through Islamic capital market (ICM) operations without violating the tenets of Sharī’ah in sukuk structures which ultimately helps the economic growth of Asian region.

Findings - The study finds that in many Asian countries, a separate and specialised regulatory framework, as demanded by sukuk, is lacking and this instrument is treated under the same regulations as of conventional capital markets and their instruments. Some of the regulations may be appropriate for ICM and sukuk, however, most of these regulations need proper modification in order to treat sukuk with clear understanding.

Practical implications - Being part of a niche and new area of Islamic finance in the global financial market a plethora of confusion exists regarding various aspects of sukuk including regulation, performance and future challenges particularly in Asian jurisdiction where sukuk are largely in operation. Findings from this study can be used as a reference to understand the need of the proper modification of conventional regulations, the performance of sukuk in better ways, and meeting other relevant challenges.

Originality/value - Although the demands for having specialized regulatory framework of sukuk, or at least amendments in the current framework for conventional bonds is gaining momentum worldwide in order to accommodate sukuk in the capital markets according to their peculiar nature, it has not caught much attention of researchers and practitioners involved with Islamic finance. Therefore, this study is expected to add values to regulation, standardisation and performance of sukuk in Asian market, and it deals with the obstacles in the growth of sukuk, which were not extensively covered earlier by the researchers and the Islamic finance industry practitioners.
The awqaf funds in Bangladesh own a huge amount of underutilized national assets, which have the potential to contribute immensely to the overall socioeconomic development of the country. This chapter seeks to share and explore the... more
The awqaf funds in Bangladesh own a huge amount of underutilized national assets, which have the potential to contribute immensely to the overall socioeconomic development of the country. This chapter seeks to share and explore the current status of the awqaf sector in Bangladesh from legal and regulatory perspectives and underlines the areas that need a fresh look for revitalization and utilization of awqaf. This paper primarily argues that the assets held by the awqaf properties could be utilized more efficiently to lift the poor segment of the population out of the ocean of poverty. This can be done by instituting necessary changes in awqaf management to align with current needs.
Islamic microfinance provides an alternative model for a significant number of underprivileged people who are not served by conventional microfinance. In order to give access to sustainable services with a greater extent, the Islamic... more
Islamic microfinance provides an alternative model for a significant number of underprivileged people who are not served by conventional microfinance. In order to give access to sustainable services with a greater extent, the Islamic microfinance is in paramount need of the adoption of innovative business models and sound practices into the industry. To this end, the research seeks to propose a two-tier mudarabah model based on cash waqf as an alternative to Islamic microfinance institutions. The objectives of the study are twofold: (1) help develop and implement an appropriate business model; and (2) help make a reform in the present institutional framework for Islamic microfinance and waqf institutions. To test the feasibility and possible implication of the proposed model, this test employed cointegration, vector error correction model (VECM) and the system generalized method of moments (GMM) technique. A total number of 90 conventional and Islamic microfinance institutions are taken as a sample of the empirical study. The study finds that cash waqf-based microfinance institutions can play an important role in financial inclusion and developing socio-economic conditions of the poor and underprivileged people in society.
The purpose of this study is twofold: (1) to identify the key challenges of improving access to Islamic financial services (IFS) in Australia for its large Muslim minority and (2) to assess the potential prospects for the emergence of... more
The purpose of this study is twofold: (1) to identify the key challenges of improving access to Islamic financial services (IFS) in Australia for its large Muslim minority and (2) to assess the potential prospects for the emergence of Islamic finance (IF) in the Australian market, parallel with its conventional practice. The method employed is a mixture of direct observation and author’s personal experience, curiosity and association with this industry. However, Islamic legal context remains the only theoretical basis of the study. The approach for the study is not supplemented by any empirical work, nor have the attempts been made to evaluate the economic efficiency and profitability or otherwise, of IF in Australia. Through a thorough examination, it seeks to argue that in order to meet the core challenges of IFS in this jurisdiction, a separate legal framework must be established to facilitate its growth and development in the Australian financial market. Besides the direct policy recommendations and suggestions for further research provided for authorities concerned, the study sheds new light on how the relevant challenges are met for improving access to IFS in Australia for its largest minority.
The institution of Waqf always played a pivotal role of sustainable economic development in a Muslim society throughout the history of Islam. However, recently, even with the introduction of the modern Islamic finance a few decades ago,... more
The institution of Waqf always played a pivotal role of sustainable economic development in a Muslim society throughout the history of Islam. However, recently, even with the introduction of the modern Islamic finance a few decades ago, the institution has been struggling to rejuvenate its past glory. The key issues are lack of availability of data and historical records, weak transparency and public disclosure, improper audit and compliance practices. The advent of the blockchain has offered a ray of hope for the revival of the Waqf institution. The blockchain has already proved itself as a game changing breakthrough. Similarly, the Waqf institution could be invigorated with the innovative and efficient use of the blockchain. Moreover, the use of smart contracts on blockchain could further enhance the performance and efficacy of the Waqf institution. It is strongly believed that with the firm Islamic jurisprudential foundations of the Waqf, blockchain, and smart contracts will ensure that the Waqf institution could partake in the economic development of the whole Muslim world.
Bangladesh has a population of over 160 million, which made it the 8th most populous nation in the world. Besides, it has the fourth largest Muslim population and the third largest Muslim majority country in the world after Indonesia and... more
Bangladesh has a population of over 160 million, which made it the 8th most populous nation in the world. Besides, it has the fourth largest Muslim population and the third largest Muslim majority country in the world after Indonesia and Pakistan. The huge amount of national waqf assets of Bangladesh, consisting a significant amount of underutilized funds, has the enormous potentials to contribute to its socio-economic developments. The key objective of this paper is to explore the areas that need a fresh look at the revival and consumption of waqf funds to foster sustainable economic development and social progress in Bangladesh. In line with this objective, the study seeks to (1) examine the issues and challenges of waqf management in Bangladesh; (2) identify the role of waqf in stimulating socio-economic development of the country; and (3) suggest legal, institutional, and functional reforms in the waqf sector for its further development to rejuvenate the economy of Bangladesh. The study suggests that should the assets held by the waqf estates in Bangladesh be utilized more efficiently it would eliminate poverty through making the necessary changes in the waqf management to cater for the need of the time. The study recommends for using innovative Islamic finance products, for empowering the poor through waqf funds which would make the poor segments of the country an integral part of the development process. The waqf administration may consider it as its primary goal to engage the poor in country’s socio-economic development activities. It also comes with some more specific recommendations that deserve serious consideration for waqf developments in Bangladesh.
This chapter examines corporate social responsibility (CSR) practices by Islamic banks (IBs) in Bangladesh and to identify how these initiatives impact on citizens in a positive and a productive manner without compromising the ethics and... more
This chapter examines corporate social responsibility (CSR) practices by Islamic banks (IBs) in Bangladesh and to identify how these initiatives impact on citizens in a positive and a productive manner without compromising the ethics and values. CSR data and the information of seven IBs in Bangladesh were considered to analyse sector-wise CSR expenditures, as well as in the specialised areas focussing on religious values, from 2007–2010. Results indicate that most of the IBs are committed to CSR practice. This may motivate conventional banks to spend more on CSR to compete with their counterparts. Consequently, the total inflow of resources from the banks towards social wellbeing may also increase. The study finds that IBs share some common areas in conducting CSR activities similar to their conventional counterparts. IBs are also engaged in some additional areas due to their mandatory compliance with the shari’ah. The study finds a significantly increasing trend of CSR expenditures and engagements by IBs.
Small and Medium Enterprises (SMEs) play a vital role in the economic growth. However, the industry has been facing challenges due to lack of access to finance among entrepreneurs. This chapter explores alternative financing platforms for... more
Small and Medium Enterprises (SMEs) play a vital role in the economic growth. However, the industry has been facing challenges due to lack of access to finance among entrepreneurs. This chapter explores alternative financing platforms for SMEs and proposes specific solutions to the credit risk of SMEs. Authors used a structured literature review approach to analyse relevant publication to provide evidence on the application of cash Waqf as a viable source of Islamic finance for the SME sector. The donation-based cash Waqf model for SME financing is developed under the lens of stakeholder theory and Maqasid al-Shari'ah. The model is expected to provide greater insight to Waqf institutions on their role to operationalise the conceptual model in fostering the growth of SMEs and change the perception of stakeholders about the dynamics and potential of cash Waqf in economic development.
This chapter briefly discusses Sharī’ah and fiqh as the theoretical foundation for Islamic commercial jurisprudence, which includes commerce, finance, and the economy. It begins with the meaning and definition of Sharī’ah and fiqh,... more
This chapter briefly discusses Sharī’ah and fiqh as the theoretical foundation for Islamic commercial jurisprudence, which includes commerce, finance, and the economy. It begins with the meaning and definition of Sharī’ah and fiqh, followed by a discussion on the sources of Sharī’ah, with maqāṣid al-sharī’ah being one of the cornerstones of contemporary Islamic commercial jurisprudence. It then elaborates on the underlying philosophy of business transactions in Islam. The chapter further elucidates the meaning and features of valid or invalid contracts, as well as the key categories of contracts, which include commutative, partnership, charitable, fee- and service-based, and supporting contracts. The chapter concludes with a discussion on the key prohibited contracts in business transactions that could render relevant transactions of the parties concerned null and void, followed by a short elaboration on the key reasons behind the invalidation of a contract and the way to rectify such a contract. The chapter concludes with a review of some discussion questions and answers to encourage learners to reflect on the topics and issues discussed.
Orthodox Muslim scholars are in general agreement that women are not entitled to hold the leadership or the topmost public office of a nation. Many scholars hold even a more restrictive view on the issue as to whether it is due to... more
Orthodox Muslim scholars are in general agreement that women are not entitled to hold the leadership or the topmost public office of a nation. Many scholars hold even a more restrictive view on the issue as to whether it is due to Qur’anic texts and Prophetic traditions (ahadith) that women are barred from key positions, or it is largely due to socio-cultural and economic settings of a society. The Qur’an urges the Prophet’s wives (nisa an-nabiyy) to stay quietly at their homes and not to make dazzling displays like that of the time of primitive ignorance (33:33). It is also commonly cited from the Qur’an that men are the caretakers/guardians in charge (qawwamun) of women (4:34). The only Prophetic tradition regarding women’s leadership is that the Prophet (S) is reported to have said, “Never will succeed such a nation as lets their affairs carried out by a woman” (Sahih al-Bukhari, 4425; Sunan of An-Nasai, 8/227). On the other hand, the Qur’an also affirms that the believers, both men and women, are guardians (awliya’) of one another (9:71). Also, since the Qur’an acclaims the Queen of Sheba for her just rule, such prominent scholars as Imam Abu Hanifa, Imam al-Tabari and Ibn Hazm support that women could hold the topmost judicial position. Ibn Hazm also asserts that there is no theoretical prohibition for women to carry out the mission of Prophethood. Naturally, if they could be Prophets, they could also be the leaders, for the Prophets are the leaders. This chapter aims to explore these issues and examine by primarily analyzing the Qur’anic verses, Prophetic traditions, the heritage of the Rightly- Guided Caliphs and the rulings of Muslim jurists. In modern times, the quest for women empowerment is integrally related to the issue of leadership. This chapter will critically evaluate the validity of the quoted hadith, and examine its contexts in order to understand how and why the Prophet (S) would have stated as such. This analysis is crucial to address present-day realities, as a significant number of Muslim women have competently led their nations by holding topmost offices. Finally, this presentation hopes to shed light on what the real political status of Muslim women should be today in light of the Qur’an, Sunnah and juristic discourse. Resolution of the issue of leadership can significantly impact the women empowerment from Islamic perspectives.
Islamic insurance (Takaful) has seen rapid growth in recent years. Past studies have provided empirical evidence that Islamic finance industry can play a positive role in economic development. However, limited empirical evidences exist on... more
Islamic insurance (Takaful) has seen rapid growth in recent years. Past studies have provided empirical evidence that Islamic finance industry can play a positive role in economic development. However, limited empirical evidences exist on the influence of takaful industry developments towards ensuring economic development. The relevant data were collected for the takaful industry from Bank Negara Malaysia, the Malaysian central bank’s website, while macroeconomic data have been collected from the World Bank’s website. Regression analysis has provided statistically positive evidence that takaful industry growth can contribute towards economic development. While this study is limited to Malaysian context, it is expected that future studies can improve generalizability by exploring a global scenario. In fact, this study is unique in the sense that it provides empirical evidences that allow regulators and takaful operators to realize the contribution of takaful industry towards the economy.
Developments in Islamic Banking Practice: The Experience of Bangladesh examines global developments in the Islamic banking practice, and provides an in-depth analysis of the theory and practice of Islamic banking in Bangladesh, the... more
Developments in Islamic Banking Practice: The Experience of Bangladesh examines global developments in the Islamic banking practice, and provides an in-depth analysis of the theory and practice of Islamic banking in Bangladesh, the third-largest Muslim country in the world, with over 150 million Muslims. This book is the first of its kind to examine Islamic banking principles and practices in Bangladesh on such a broad scale.

Learners, teachers, researchers, and those practically involved in the burgeoning financial industry will derive value from this book. Readers from all disciplines will become familiarized with the key differences between the principles and practices of two distinct banking systems: the interest-free Islamic banking and the interest-based conventional banking. With the inclusion of citations from authentic references, a well-defined methodology of research, relevant data, tables and figures, coupled with the extensive field work and experience of the author in this sector, this book will serve as a reliable resource to understanding Islamic banking and finance as they function in the general world of finance, and in particular, Bangladesh.
Theory and Practice of Modern Islamic Finance seeks to contribute to the existing body of work in the area of Islamic finance through examining the extent of divergence in practice of Islamic financing from the traditional Shari`ah in the... more
Theory and Practice of Modern Islamic Finance seeks to contribute to the existing body of work in the area of Islamic finance through examining the extent of divergence in practice of Islamic financing from the traditional Shari`ah in the Australian context. The author makes a discursive analysis of the regulation of Islamic finance in Australia in terms of (a) the financing instruments used, (b) certainty of transactions between participants in the system, and (c) institutional risk management of Islamic financial institutions. The work's objectives are two-fold: (a) to analytically study the extent to which Islamic Financial Services Providers (IFSPs) of Australia differ from the traditional Shari`ah in their current practices of Islamic legal financial system by their use of different financial products and techniques, and (b) to create awareness and transparency about the various products and instruments used by IFSPs of Australia.
This study is primarily concerned with the theory of Islamic banking and its practice in Bangladesh, and Shari’ah and its four sources forming the basis of Islamic banking are discussed at length. The research seeks to: analyse the... more
This study is primarily concerned with the theory of Islamic banking and its practice in Bangladesh, and Shari’ah and its four sources forming the basis of Islamic banking are discussed at length. The research seeks to: analyse the theoretical foundations of Islamic baking and practice in Bangladesh; examine areas of similarity and differences between the structure and practices of Islamic banking and conventional banks; and identify the problems, challenges and prospects of Islamic banking in Bangladesh. The dissertation examines primary and secondary sources and draws on fieldwork in Bangladesh and the author’s personal experiences. The study undertaken shows that over the years there has been an expansion of Islamic banking in Bangladesh. Islamic banks are competing successfully with their conventional counterparts in an environment where rules, regulations and regulatory bodies are designed to facilitate banking based on interest. At the same time it has become apparent that the profit and loss sharing framework, which is one of the cardinal principles of Islamic banking, has yet to take deep root. The current profitability of Islamic banks is often maintained by products and services, which on closer analysis resemble broadly the products of conventional banking. It is thus suggested that more in depth research should be undertaken by Islamic bankers and scholars to study products and services of conventional banking with a view to adapting them successfully to the tenets of Shari’ah.
The dissertation seeks to contribute to the existing body of work in the area of Islamic finance by examining the extent of divergence in practice of Islamic financing from the traditional Shari`ah in the Australian context. To this end,... more
The dissertation seeks to contribute to the existing body of work in the area of Islamic finance by examining the extent of divergence in practice of Islamic financing from the traditional Shari`ah in the Australian context. To this end, the dissertation presents a discursive analysis of the regulation of Islamic Finance in Australia in terms of (a) the financing instruments used, (b) certainty of transactions between participants in the system,and (c) institutional risk management of Islamic Financial Institutions (IFIs). The methodology chosen for the study is through the Shari`ah, where law, finance, economics and business form a single dimension only, even though a very significant one. Examination of the issues of this study is undertaken through the literature in the relevant field as well as the author’s personal expertise and working experience with several Islamic banks (IBs) and IFIs for a considerable period of time, in addition to his active involvement with at least two of Islamic Financial Services Providers (IFSPs) in Australia.In line with the above, the objectives of this project are two-fold: First, to analytically study the extent to which IFSPs of Australia differ from the traditional Shari`ah in their current practices of Islamic legal financial system by their use of different financial products and techniques. Second, to create awareness and transparency about the various products and instruments used by IFSPs of Australia. The investigations have been conducted through: a)developing a methodological approach to introduction of the sources of the Shari`ah, main Schools of Islamic Jurisprudence and the application of the Shari`ah principles of financial transactions to Islamic finance b) elucidating theories of financial regulations and historical evolution of financial products aiming at providing the contextual background required for the research, c) examining the practice and compliance requirements of Islamic finance in the Australian legal context, and d) examining the extent to which IFSPs in Australia adhere to the strict notion of Islamic financing in three areas the author has selected to examine namely housing, motor vehicles and consumer goods financing.One of the main conclusions is that Australia being a country with a highly diversified and multicultural society there is a strong desire and growing demand among and from nearly 350,000 Muslims living in this country, for a fully fledged Islamic bank (IB) to function, and the Superannuation and investment funds to establish in line with the tenets of the Shari`ah.This would not only help strengthen the Australian economy through creating an opportunity to bring in significant foreign direct investments into Australia but also build up its existing trade and economic ties with the neighbouring Muslim countries. The author believes the Australian government should take necessary steps to enable these growing opportunities to be pursued in this country. The author therefore, recommends that given the success of Islamic banking and finance practice under the existing legal and regulatory environment in the UK, the consideration be given to the adoption of the UK model of regulatory framework for Islamic banking and finance into Australia. In this regard, the relevant regulations may be developed by the Australian regulatory regime so as to make Islamic finance a viable alternative system of financing for Muslims in Australia.Another research problem of this study indicates that due to the unfamiliarity of the relatively new Islamic financial system, IFSPs in Australia have not been able to play the expected role in the development of Australian economy through mobilising funds and attracting more customers. In this connection, the author suggests IFSPs to take an intensified program to familiarise the public and policy makers with an overview of the Islamic finance and of the financial services and products they use in Australia.The author also recommends that IFSPs’ conventional counterparts in Australia such as National Australia Bank Limited (NAB), Australia and New Zealand Banking Group Limited (ANZ), Westpac Banking Corporation, Commonwealth Bank of Australia (CBA), St George Bank Limited and other similar banks introduce Islamic retail banking services side by side with conventional banking facilities being offered to prospective customers, since other global banking institutes such as HSBC (Honk Kong and Shanghai Banking Corporation),Citibank, Standard Chartered Bank have already entered these markets in a significant manner through their trans-national banking subsidiaries.
Islamic finance began in the 1960s, accelerated rapidly during the 1970s and has grown significantly in the 1990s as a result of banking deregulation in the 1980s. Although Islamic finance emerged in Australia in 1990s in response to the... more
Islamic finance began in the 1960s, accelerated rapidly during the 1970s and has
grown significantly in the 1990s as a result of banking deregulation in the 1980s.
Although Islamic finance emerged in Australia in 1990s in response to the growing
demand of 350,000 of its Muslim population through establishment of the Muslim
Community Cooperative Australia Limited, it did not grow substantially due to an
enormous problems faced by Islamic finance industry. The underlying problem in this
regard is Australia’s legislative and regulatory framework. In order to thrash out these
problems and examine the potentials of Islamic finance in this continent we did not
attempt to evaluate the economic efficiency and profitability or otherwise, of Islamic
finance in Australia. Also, the approach for the study is not supplemented by any
empirical work. The method employed in this study is a mixture of direct observation
from legal and regulatory perspectives and authors’ personal experience, curiosity and
association with this industry. However, Shari`ah remains the only theoretical basis of
the study. Through examining the above the paper seeks to argue that since the
principles Islamic finance differ from its conventional counterparts a separate legal
framework should be established to facilitate its growth and development in the
Australian financial market.
Retakāful, apparently explained as ‘takāful for takāful companies (RTCs)’, is takāful for ‘risk pools’ managed by the takāful companies (TCs). It is one of the risk management tools used by takāful operators (TOs) and is a genuine need of... more
Retakāful, apparently explained as ‘takāful for takāful companies (RTCs)’, is takāful for ‘risk pools’ managed by the takāful companies (TCs). It is one of the risk management tools used by takāful operators (TOs) and is a genuine need of TCs just as takāful itself is a genuine need of the individuals who participate in it to mitigate the impact of losses to themselves or their wealth.

Both the concepts of takāful and retakāful are based on cooperative risk-sharing, whereby the operator manages the mutual risk fund on behalf of the respective participants who mutually share the losses to any of them. The takāful participants (TPs) are individuals or groups in takāful, and TCs in the case of retakāful. The TPs may mutually decide upon any usage of the surpluses, if any, such as maintaining various reserves, giving a part to the TO, or even donating for the risk cover of others. This research aims to examine the Sharīʿah-related issues. The particular focus is whether, in the current practice of retakāful, the risks and rewards are mutually shared by the participating takāful funds (TFs) or are effectively transferred to the RTC.

Sharīʿah compliance is the raison d'être and the key element of takāful in its role as an alternative to the insurance system. It implies avoiding ribā, gharar and maysir and observing the following fundamental characteristics: i) Risk has to remain with ownership, meaning that whoever is owner of any asset, he/she has to bear its risk, and hence it cannot be transferred via a commutative contract; however, it can be shared by the mutual cooperation of TPs or managed with mutual efforts of group members; ii) the underlying bases of takāful and retakāful are same; only the nature of the participants and process differ; both the TOs and the retakāful operators (RTOs) work as risk managers, not risk takers; iii) all investments from the shareholders’ and the policyholders’ funds, TFs and the RTF, or the waqf funds in the case of waqf-based models, have to be in Sharīʿah-compliant instruments and projects; and iv) there has to be clarity and complete disclosure on allocation and use of contributions.

The study discusses the nature of risk and the Sharīʿah issues in retakāful practices with the focus on analysing whether the participant TOs mutually share risk, or is risk transferred to the RTC? For takāful or retakāful, risk means khaṭar (hazard or possibility of loss) and refers more to uncertainty than to potential loss in a business. It pertains to the circumstances that entail the probability of detrimental change. Specifically, risk here is defined as the: i) possibility of an unfortunate event or occurrence; ii) possibility of loss; and iii) uncertainties with regard to loss. In reinsurance, the cedent transfers a part of the risks against the payment of a fee, which is the price in the exchange contract to acquire risk cover. In retakāful, on the other hand, the contract, in addition to being non-commutative in nature, has to be effectively between two risk pools: the takāful risk funds maintained by the TOs and the TF maintained by the RTO.

The study mainly discusses proportional and non-proportional treaty retakāful and finds that non-proportional retakāful is more prone to the possibility of injustice to some of the parties and to Sharīʿah non-compliance. There are certain issues in the former category as well, like providing a loan (qarḍ) in case of underwriting loss, indemnification (kafālah) in the tabarru ʿbased framework of takāful/retakāful, and payment of retakāful commission to the TOs’ risk funds. All these needs to be taken care of while structuring and implementing the contract.

As takāful is based on the concept of mutual help for mitigation of losses to the co-members, the qarḍ provision by the operators should not have been incorporated into the contract as a condition. It has now widely become part and parcel of the practice. As per the Sharīʿah requirement, the amount of such qarḍ has to be paid by the participating cedents in future, but the issue is that a TC may opt to exit from the arrangement, leaving the debt burden to the operator or the other participants. In case the amounts of qarḍ are sizeable and given repeatedly, and at times the participant TCs are anticipated to leave the risk fund during its shortfall or insolvency, it could practically be termed as a sort of reinsurance involving risk transfer to the shareholders/company. The alternative, as per the spirit of the cooperative risk-sharing system based on munāhadah, has to be applied in phases. It would involve adjusting the contributions or payments of the claims on the basis of quantum of losses in terms of covered risks. That would be easier to implement in retakāful than takāful due to the lesser number of participants in the former and the easily manageable adjustment. AAOIFI may like to provide for such adjustment in contributions/bills payment. Although granting qarḍ is not an issue, it has to be ensured that the loan granted is repaid so that the amounts involved do not become the liability of the RTOs.

If the terms, conditions and processes are changed to make the arrangement cooperative, meaning that the losses to any of the cedents are covered from their collective fund and they own both surplus as well as deficit, the requirements of the Sharīʿah will be fulfilled. Working on almost similar lines, the Saudi model has no provision for the operators to grant qarḍ (Frenz, 2014). A similar policy could be introduced in the regulatory frameworks of other countries, particularly for the corporate sector. All the Islamic financial institutions in a jurisdiction could mutually establish TCs as well as RTC on a cooperative basis and without the provision for granting a loan in case of underwriting loss. They could instead manage the risks through mutual contributions by the participants.
Takaful is an alternative term used for ‘Islamic insurance’. It is aimed at social help and solidarity to mitigate the impact of losses. The takaful concept is aimed at eliminating riba (paying or receiving interest through exchanging... more
Takaful is an alternative term used for ‘Islamic insurance’. It is aimed at social help and solidarity to mitigate the impact of losses. The takaful concept is aimed at eliminating riba (paying or receiving interest through
exchanging money for money with difference in time and amount), gharar (inappropriate risk, and excessive uncertainty in exchange contracts), and maysir (gambling and other games of chance). Most existing takaful business models are based on the concept of tabarru`. The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in Shari`ah Standard No. 26(2) (hereinafter the Standard) describes Islamic insurance as “an agreement between persons who are exposed to risks to protect themselves against harm arising from risk by paying contributions on the basis of a commitment to donate”.
This book is an important contribution form the author particularly to those who wish to know, as the title suggest, more about modern Islamic finance. It equips them a reader with both a sound Islamic juristic methodologies in order to... more
This book is an important contribution form the author particularly to those who wish to know, as the title suggest, more about modern Islamic finance. It equips them a reader with both a sound Islamic juristic methodologies in order to appreciate the workings of Islamic commercial law and also contextualises the products and regulatory framework for expanding market such as Australia. It is becoming significant when one looks at the proximity of Australia and its trade with them such as Indonesia and Malaysia. The book focuses on Australian products and its regulatory challenges.  This provides an insight as to how to consider the practical side of Islamic finance in a given jurisdictions. It synergises theory and practice. The challenges are well documented in a lucid way and can be used as a model for analysing other jurisdictions.

The coherence of its eight chapters are commendable. Chapter 2 & 3 highlights the main juristic principles from which Islamic law emanates. Without a sound background of the juristic principles it will be difficult to appreciate the technicalities of Islamic finance.  Chapter 2 is a generic approach which is found in most book of jurisprudence.  The focus  is mainly on usul al-fiqh, while chapter 3 deals with various schools of law. Though the author tries to show that there are many ways to interpret Shariah, but this can also be a source of dispute. This might be confusing for a beginner in Islamic law because the purpose of having a madhhab is in line with the concept of stare decisis The book fails to highlight this principle. Instead it projects the imagery of high level of differences whereas this is not the case. As Zahid Kauthari mentions, only twenty five per cent differences exist in the fiqh.  It is submitted that in order for Islamic finance to progress, the plus points should be highlighted rather than giving importance to the negatives. Chapter 3 is an attempt to deal with the application of shariah but unfortunately the focus is on the legal maxims which is not a source of law per se but rather general legal guidelines. However it is worth noting that the Ottoman’s masterpiece the well-known Mejelle for the commercial law is a good catalyst for adopting the legal maxims. It seems that there is a shortcoming in this chapter in that on the one hand various schools of law are described and they usually apply usul al-fiqh as their principles for deducting law, while legal maxims are being used to show the application of shariah. The author seems not to appreciate the difference between usul al-fiqh and qawaid kuliyyah al-fiqhiyyah in the process of istimbat. It is obvious that this  needs clarification if not the industry will depart from the fundamental of shariah. Imam Shafi’ who is considered as the father of usul al-fiqh explained the importance of establishing usul al-fiqh and its rules in  his Kitab al-Umm. This is often witnessed in some Islamic finance fatawas whereby legal maxims tend to overruled usul al-fiqh unnecessarily.

Chapter 4 is a very interesting topic dealing with theories of financial regulation. This is a much needed topic especially after the Global Financial Crisis of 2008. The three main theoretical frameworks are briefly addressed: Public interest theory, Capture theory and the Economic theory. Due to the importance of this topic, the need to engage with it at a more practical level is warranted and also to contextualise it within an Islamic ethos because as hardly any literature exists on this topic. Islam does have a legacy of market regulation under the banner of Hisbah which is a well-known area of jurisprudence.  It will be inappropriate to develop Islamic finance from a purely secular angle while Islamic finance has its own peculiarities that need to be incorporated in the process. It is observed that the IFSB is attempting to some extent in this direction but many industry players and regulators seem not to endorse the process of crafting regulation of Islamic finance on conventional regulatory framework which is highly premised on a specific interpretation of capital for instance, which is unilaterally interpreted by the Basel Committee. From the author’s perspective he is working with the existing system, but it is recommended that he should highlight this issue specially that chapter 2 and 3 are shariah based.
After a brief historical analysis of the Islamic products in chapter 5, the author ventures into the practicalities of Islamic finance within the Australian context.  Chapter 6 and 7  address the issues of implementing Islamic finance from the legal, regulatory and Islamic perspectives. The issues raised in the Australian scenario  are not new, most  of these issues  such as double stamp duty, application of Basel  I & II have been addressed in UK and other countries  in early 2000’s. The main issue is that the fair level playing field principle will dominate despite the authority portrays that there are some concessions to be made by the Australian Authorities. This will be difficult from a regulatory point of view because Islamic finance will always have difficulties unless the international regulatory framework creates a space for it. Regulation demands consistency to enhance transparency and market confidence and stability. Hence the shift from microprudential towards macroprudential regulations is being observed.).  This aspect is not dealt with. Australia will not formulate special rules for Islamic finance and being oblivious of international regulatory framework. Again this boils down to issues such as capital adequacy which might have a different meaning from a shariah perspective. Reality is that regulators worldwide display reluctance to regulate Islamic finance. Hence the fair level playing field seems to be prudent for them. The idea of regulation is underpinned by the prudential aspects and the conduct of business, and not to regulate religion. And also the cost associated to do this for a small segment of the market. Is it not too much demanded from Australian regulators when the Muslim countries (besides Malaysia) do not want to change their regulatory framework to accommodate Islamic finance? 

This book overall  and this chapter in particular tend to address the issue of Islamic banking only. Islamic banking is not the only driving force of Islamic finance. Takaful and Islamic capital market also plays a vital role. Their regulations are fundamentally different from Banking and this is not well articulated in the chapters. The concluding remark on page 168 for “accepting not the fundamental principles of interest-based conventional financial markets regulation applies with equal force to Islamic financial markets” is debatable because Islamic finance have specific risk which the secular system does not addressed. Many academics have highlighted the need to regulate shariah application which is important at a governance level and also  to prevent systemic risk. There is a rationale for such move instead of blindly accepting conventional regulation. The pragmatic approach has always been to work within the existing system which the author is trying to achieve.
Chapter eight analyses the compendium of Islamic financing products available in the Australian markets and the challenges they face from fiqh and Australian law perspectives. There is one issue which the author has slipped in his analysis when he interpreted the Symphony gem case of murabaha and which has deep implications as a legal precedence. Despite both parties in this case law provided expert evidence and both experts said that murabaha is a sale, yet the court rejected this view and considered murabaha as trade finance. This is problematic when adjudicating Islamic finance in a secular court, where the legal ethos is not conducive for Islamic finance. It is recommended that the issue of Arbitration be considered to resolve both the fiqhi and legal problems as the practical side so far has proven blurred from many countries. Malaysia had to intervene politically and take away the jurisdiction of the High Court when shariah issues were raised in some court cases. This shows that the problem is not only regulatory, but also to implement Islamic finance via the court. The question is whether Australia will adopt a new approach if it wants to play a major role in that emerging region?

Chapter nine lays down a good foundation for analysing the dichotomy between Australian law and Shariah. The author also provides some solutions to resolve the differences so that the products are implementable. Then in chapter ten the author shifts the debate on the UK regulatory framework. As the book was published in 2009, it is to be noted that the FSA has been dismantled and replaced by the FCA and the PRA. This is known as the Two-Peak system introduced in 6 April 2013. The chapter indicates towards some taxation issues and does not engage fully with the other problems that still need to be resolved in UK. There are many barriers that need to be overcome in UK; it is not only the question of taxation.

The book is a well-structured piece of academic work. It is highly recommended for a newcomer in the arena of Islamic finance as it gives some insightful approaches to Islamic finance within the Australian jurisdiction. However, some issues have been discussed above to show that there are still many aspects of Islamic finance that need to be considered in exploring its applicability and enforceability in a given jurisdiction.
The above text, hereafter referred to as TPIF, examines the theory underlying Islamic finance and provides preliminary analysis of the practice of selected Islamic financial institutions in Australia. The stated aims of the book are as... more
The above text, hereafter referred to as TPIF, examines the theory underlying Islamic finance and provides preliminary analysis of the practice of selected Islamic financial institutions in Australia. The stated aims of the book are as follows:

• undertake a comparative study of the following areas of finance: housing, motor vehicles, and consumer goods financing as practiced by both Islamic and conventional finance in Australia;

• investigate the extent to which Islamic financial services providers (IFSPs) in Australia adhere to the strict notion of Islamic financing in the three selected areas mentioned above;

• review the Shari'a compliant issues vis‐à‐vis the ideals and actual practices of IFSPs of Australia under the existing regulatory environment;

• provide a comprehensive picture of Islamic finance practices in the context of Australasian society; and

• help expand Islamic finance, which the vibrant Australian Muslim community can use comfortably as it meets their religious as well as market requirements.

Structured in 11 chapters, the first five chapters are primarily descriptive, and seek to provide some sort of framework for the analysis of practice in Australia. Chapters six to 11 explain the Australian context and the actual practice of financial institutions. Specifically, Chapter 1 provides the introduction to the book. Chapter 2 describes the sources of Shari'a. Chapter 3 is on the application of Shari'a. Chapter 4 is on the theories of financial regulation. It mainly summarises some material from the conventional literature but does not directly engage with the issues arising from the coverage in the earlier chapters. Chapter 5 provides a general description of the historical evolution of financial products. The Australian legal context affecting Islamic finance practice is covered in Chapter 6, while Chapter 7 outlines the compliance requirements for Islamic finance in Australia. Chapter 8 of the book examines the instruments used by IFSPs in Australia. In Chapter 9, the extent to which IFSPs are Shari'a compliant is examined. Before the summary and concluding Chapter 11, in Chapter 10, the book provides some coverage of the UK regulatory framework with a view to considering its appropriateness for adoption in Australia.

Overall, the book examines pertinent issues and the aims are quite ambitious. Given the global proliferation of “Islamic” financial products, the subject matter of the book is topical and relevant to debates both within and outside the Muslim community. The study is also to be commended for its choice of subject matter as well as for the empirical focus on Australia. The outlining of Shari'a issues first, before going onto examination of practice in Australia is an appropriate one for setting the context against which the extent of compliance can be assessed. The book also does a good job of bringing together some insight into the practices of IFSPs in Australia.

Who is the book aimed at?

This book provides useful material regarding ISFPs in Australia. The coverage of the Shari'a material in the earlier part of the book is useful. However, readers interested in the Shari'a relating to Islamic finance are likely to find the coverage somewhat broad and lacking detailed examination. From the choice and mix of chapters, it is difficult to discern who the target audience is. The book seems to be a straightforward publication of a doctoral thesis, with the replacement of the word “thesis” by “book” throughout the text (a quick browse of the acknowledgements page indicates that the thesis perhaps has not been edited before publication as a book). While the research grounding of the book gives it more credibility, the failure to edit it potentially restricts its appeal to a broader range of audience. As a reference, or background reading, it is likely to be of some use to researchers. However, it is not a text that can suitably be adopted as a core reading in an undergraduate or postgraduate course on Islamic finance (or on a related one).

How well was the subject matter examined?

Readers interested in broad coverage will find the material of some interest, and reasonably well presented throughout. The most interesting material in the book (for me at least), were Chapters 8 and 9. Given the huge volume of literature on Islamic finance, I had expected the book to move more quickly onto examining the IFSPs practices in Australia and evaluating the extent to which they complied with the spirit of Shari'a. Since the text was written as a doctoral thesis, it is understandable that the reader has to wait so long before getting to that material. Chapters 8 and 9 are likely to be of particular interest to empirical researchers of Islamic finance practices. The analysis in these chapters is quite informative, although not very detailed or broad. This is largely due to the narrow focus on the contracts used by the IFSPs. Empirically, while the text states that the methodology chosen (for the study) is “through the Shari'ah, where law, finance, economics and business form a single dimension only”, the methodological framework for the study is not clearly elaborated and it is not clear how the methodology has informed the analysis of the empirical evidence. The examination of the issues covered in the book were “undertaken through the literature in the relevant field as well as the author's personal expertise and working experience with several Islamic banks and Islamic financial institutions for a considerable period of time, in addition to his active involvement with at least two IFSPs in Australia”. The study is not based on case studies of IFSPs or on evidence gathered from (structured or otherwise) interviews with their management. This has somewhat limited the scope as well as the analysis of the evidence.

Overall, the book engages with a very interesting topic and provides initial insights. In examining the practice of Islamic finance (in Australia), the book has taken an important step in moving from theory to reality. Reading the book has left me keen to know more – what are the sources of Islamic finance and how does that affect its growth? How IFSPs are governed, both from a conventional as well as from Shari'a perspectives? How transparent and accountable are IFSPs? What is the standard by which the extent of IFSPs compliance with the Shari'a is to be evaluated?
Dr Ahmad's book is a major contribution to the field of Islamic banking and finance, particularly in respect of the main focus of the book, the theory and practice of Islamic finance in Australia, the divergence of certain Australian... more
Dr Ahmad's book is a major contribution to the field of Islamic banking and finance, particularly in respect of the main focus of the book, the theory and practice of Islamic finance in Australia, the divergence of certain Australian Islamic financing practices from the Shari'ah, and on proposals for the future development of Australian Islamic finance in the light of this analysis. This book appears to be the only major research monograph on Islamic finance in Australia, and with its publication, an authoritative source on the subject is now provided.

Research methodology: the historical rational critical methodology
Just as it is impossible to understand conventional Western finance except within the context of its historical development, Islamic finance too can be properly understood only when current theory and practices are analysed within their historical context. One of the methodological strengths of writings in Islamic finance in general, and of this book in particular, is the integration of the rational critical analysis of current theories and practices from within the perspective of their historical development. This historical approach is particularly important in the study of Islamic finance, given that Islamic financial theory and practice derives directly from the authority of the Quran, the Sunnah, and their interpretation in the secondary sources.

Current theory and practice has evolved as a response to problems, however, to problems faced by people in the past, and which can be understood today only from the perspective of history. For example, in Chapter 2, Dr Ahmad explains the development of the Hanifi, Maliki, Shafi'i and Hanbali schools of Islamic jurisprudence as a response to the problems of codifying and systemising the Shari'ah after the deaths of the companions of the Prophet Muhammad (salallabu alaiba wasallam). In Chapter 6, the current Australian legal context is analysed from the perspective of the historical material presented in earlier chapters, and also from the perspective of modern Australian history.

The historical, rational critical methodology of this book follows the scientific research methodology of the great twentieth century philosopher of science Karl Popper. The clarity and logical rigour resulting from this approach is one of the major strengths of this work.

Chapter survey
From the standpoint of this methodological approach, Chapters 1‐5 cover the motivation for the research, the sources and application of the Shari'ah, theories of financial regulation, and the historical evolution of financial products and services.

Chapters 1‐3 and 5 are of excellent quality and reflect Dr Ahmad's authoritative knowledge in the field of Islamic law. Most writings on Islamic finance contain some reference to the historical development of Islamic finance, though seldom with such depth and rigor as is accomplished in this book.

Chapter 4 on theories of financial regulation does not quite fit with the approach of the other chapters of the book. The evolution of Islamic finance was interrupted during the era of Western imperialism, with the result that there is currently no fully developed and operational theory of financial regulation from the Islamic standpoint. Chapter 4 surveys the public interest theory, the capture theory, and the economic theory of regulation. However, these theories have their roots in Western neo‐classical economics and are ultimately based on the neo‐classical economics assumption of rational self‐interest. The view of man as a rational utility maximiser is far removed from the Islamic view of man as the vice regent on Earth of Almighty Allah. Thus, a fully satisfactory analysis of Islamic finance from a theoretically principled and operationally viable theory of Islamic financial regulation is not possible at the present time. The theoretical foundation for Chapters 6‐11, covering Australian Islamic finance, is therefore contained primarily in Chapters 1‐3 and 5.

Having prepared the ground in the first part of the book, Chapters 6‐11 discuss Islamic finance in Australia, covering the Australian legal context, compliance requirements, financial instruments, divergence of certain practices from the Shari'ah, comparison with the UK regulatory framework, and proposals and recommendations. These chapters reflect not only Dr Ahmad's expertise in Islamic financial law, evident in previous chapters but also his extensive practical experience in his advisory and consultancy work.

As our knowledge expands so too does our contact with the unknown. The book raises many questions for future research, including, how to resolve the perceived divergence of financial practice from Islamic law, the development of a fully satisfactory theoretical framework for Islamic financial regulation, and, given that a sufficiently long time series of Australian financial data will be available within a few years, the identification and critical testing of empirical hypotheses on the performance of Islamic financial institutions. These should keep researchers in the field busy for some time.
مداخلتى التعقيبية على محور المشاركة التعاونية: الأسس والمبادىء العامة فى المؤتمر العالمي التاسع لعلماء الشريعة في المالية الإسلامية عقد فى كوالالمبور تحت اشراف الأكاديمية العالمية للبحوث الشرعية في المالية الإسلامية (إسرا) خلال الفترة... more
مداخلتى التعقيبية على محور

المشاركة التعاونية: الأسس والمبادىء العامة
فى المؤتمر العالمي التاسع لعلماء الشريعة في المالية الإسلامية
عقد فى كوالالمبور تحت اشراف الأكاديمية العالمية للبحوث الشرعية في المالية الإسلامية (إسرا) خلال الفترة 10-11 من نوفمبر 2015 و باتعاون مع  المعهد الإسلامي للبحوث والتدريب التابع لبنك التنمية

الاسلامى بجدة

لعموم الفائدة
أولاً: ضرورة توضيح  أوجه الاتفاق والاختلاف بين المشاركة التعاونية التكافلية وبين كل من التأمين التكافلي والتأمين التعاوني السائدين القائمين على التبرع والتأمين الإسلامي القائم على أساس الوقف.
ويمكن أن تشتمل  أوجه الاتفاق والاختلاف على عدة أمور:
1) الفرق فى التعريف بين المشاركة التعاونية التكافلية وبين كل من التأمين التكافلي والتأمين التعاوني.
2) موضوع العقد، فمثلاً موضوع العقد فى التأمين التكافلي هو التزام جميع المستأمنين بتحمل تبعة الخطر
المحتمل الوقوع ودفع ما يقتضيه ذلك من الاشتراكات على أساس التبرع، فهو تعاقد يقوم على أساس التضامن في توزيع الأخطار وترميم آثارها، فما هو موضوع العقد فى المشاركة التعاونية التكافلية؟
3) طبيعة العقد، فمثلاً التأمين التعاوني من عقود التبرع التى يقصد بها التعاون على تفتيت الأخطار، فما الفرق الأساسي بين النوعين ، من ناحية طبيعة العقد إن وجد الخلاف؟
4) تكييف الاشتراكات، هل نموذج المشاركة التعاونية التكافلية يختلف عن التأمين التكافلي أو التأمين التعاوني الَّذي يقوم على تكييف الاشتراكات على أنها تبرعات إلى صندوق التأمين والذي ينشأ لهذا الغرض ولا تكون فيه إلا حصيلة تلك التبرعات.
5) الهدف، فهل يختلف هدف المشاركة التعاونية التكافلية عن  هدف التأمين التكافلي مثلاً، فى تحقيق التعاون والتضامن بين أعضائها المشتركين؟
6) الفائض التأميني، هل طريقة معاملة الفائض التأميني هى نفسها فى هذا النموذج المقترح أم تختلف من حيث أن هذا الفائض ليس ربحاً للمشتركين، لأنهم متبرعون بحسب النموذج السائد في  التأمين التكافلي أو التأمين التعاوني، وهدفهم رفع الضرر عن بعضهم ، وهو ليس ربحاً أيضاً للشركة، لأنها لا تملكه أصلاً.
ثانياً: التسمية بالمشاركة التعاونية التكافلية ذاتها:
إنَّ الأفضل هو استخدام مصطلح "التأمين الإسلامي بالمشاركة" بدلاً من مصطلح المشاركة التعاونية التكافلية، وذلك لأن أي نموذج بديل ومقترح عن التأمين الإسلامي الصحيح لا بد أن يشمل جميع أنواع التأمين التي تتوافر فيها أسس وشروط التأمين الإسلامي، وأهم أسسه هو التعاون، والتكافل،  والتضامن،  والأخوة، ثم إن لهذا التعاون في ضوء الشريعة الإسلامية ضوابط وشروط لا يكون التأمين إسلامياً إلا بتوافرها، وإن المشاركة فى التعاون أو التكافل في النموذجين السائدين الذي يقوم أحدهما على التبرع ، والآخر على الوقف، يشكل جانباً واحداً من خصائص هذا التأمين، وهناك شروط وخصائص أخرى غير التعاون، فقد يدعى أن هناك تأميناً تكافلياً أو تعاونياً أو وقفياً، مثل شركة تكافل إس آي (.Takaful S.A) في جنوب إفريقيا، ومن ثم فيحكم عليه بأنه إسلامي وهو ليس كذلك، لافتقاره لبعض أسس التأمين الإسلامي.
ثالثاً: الأمور التي ينبغي أن تشتمل عليها الدراسة:
- مبادئ المشاركة التعاونية التكافلية ومن أهمها:
1) تكييف توزيع الفائض التأميني على المشتركين، فعلى ضوء تلك المسألة تبرز الفوارق العملية بين التأمين الإسلامي والتقليدي المحرم. وهذا الفائض لا يمكن أن تتملكه شركات التأمين الإسلامية مطلقاً لأن بامتلاكه تتحقق المعاوضة، وهي معاوضة منطوية على غرر يحرم المعاملة؛ وبالتالي لا بد أن يختلف مصير الفائض التأميني في نماذج التأمين الإسلامي عن التأمين التقليدي.
2) التكييف التعاقدي بين الشركة وحملة الوثائق، دون الحاجة إلى التطرق إلى تلك التقسيمات للعلاقات التعاقدية التي تكون بين المشتركين والصندوق، وتلك التي تكون بين الصندوق والشركة؛ وتكون العلاقة مباشرة بين المشتركين حملة الوثائق وبين الشركة، ومقتضاها إدارة عمليات التأمين، واستثمار حصيلة التأمين.
3) تكييف المشاركة في الخسائر الزائدة عما جمع من اشتراكات.
4) نموذج خال من  مبدأ المعاوضة، ولا يؤدي إلى وقوعها بوجود الالتزامات المتقابلة بالتبرع، ويكون موافقاً كذلك لغرض المشتركين وقصدهم. 
5) هل الشركة تقوم بالإدارة مقابل أجر معين، على أساس الوكالة بأجر مثلاً، أو حصة من الأرباح في أموال المشتركين، إن كانت مضاربة.
-    آلية عمل المشاركة التعاونية التكافلية، فمثلاً
1) كيف يتم تكييف وضع المشتركين الأقساط في صندوق المشاركة التعاونية التكافلية؟ و على سبيل  المثال لا الحصر : هل يتم تكييفه على أساس التبرع أو الهبة المعلقة بشرط العوض للتعاون على تفتيت الأخطار؟ أو على ماذا ، إن لم يكن على التبرع؟
2) على أى أساس تدفع الاشتراكات ؟ هل تكون بناء على التمليك للصندوق؟ فتكون للصندوق شخصية اعتبارية مستقلة، ليتمكن بها من أن يتملك الأموال، ويستثمرها، ويملكها حسب اللوائح المنظمة لذلك، كما هو ممارس في شركات التأمين التكافلي الشركات للتأمين التكافلي في الحال.(لم أفهم المقصود بـ في الحال ولعلها لا نحتاج إليها)
بناء على علي الملاحظات التى قمنا بها آنفاً أقول:
لما كانت الحاجة إلى خدمات التأمين قائمة ، وكان الغرر واقعاً في مبدأ التأمين، فقد مسَّت الحاجة الى أسلمة التأمين، من حيث السلامة الشرعية لأسسه، ومبادئه، والسلامة التطبيقية لأعماله، وممارساته ، فحصل الاتفاق على إخراجه عن المعاوضة، وإدخاله في دائرة التبرعات بصرف النظر عن هويته، لكن بعد الاتفاق على هذا المبدأ، تعددت الأقوال فى تكييف وجه هذا التبرع، فتشكل بهذا نموذجان للتأمين من حيث تكييف وجه التبرع الحاصل، وأكثر مؤسسات التأمين الإسلامي قائمة وفق النموذج الأول، وقد صدر المعيار الشرعي عن هيئة المحاسبة والمراجعة في البحرين في التأمين، وأيضاً القرارات المجمعية والمباديء الإرشادية لمجالس الخدمات المالية الإسلامية  وفق هذا النموذج، ولكن كلاً من هذين النموذجين السائدين لم يخل من المسائل الشرعية العالقة، والتي قد تنقض أصل شرعيتهما، فلا شك أن البحوث المقدمة من كبار العلماء في هذه الجلسة قد تمكنت من لعب دور بارز لسد هذه الثغرات وإنني أقدر هذه المساعي الحميدة فى وضع نموذج جديد يظن سلامته من تلك المحاذير.

رابعا: المقترحات
وأخيراً ، أود أن أقترح أهم ضوابط التأمين الإسلامي الصحيح التي ينبغي أن تراعى فى النموذج المقترح للتأمين الإسلامي بناء على المشاركة:
1) سلامة التكييف الشرعي للعلاقة بين المستأمنين وشركة التأمين، وهو تكييف ينبغي أن يدرأ وقوع المعاوضة في علاقات التأمين التعاقدية بين أطرافه، ويعكس الواقع وغرض المشتركين الحقيقي من الاشتراك، لأنه إنما جعلت العقود لتعبر عن المقاصد والأغراض، وليس يصح أن نحمل نية المرء على ما لا يريد حقيقة.
2) عدم تملك شركة التأمين لوعاء التأمين، وذلك حتى لا تحقق المعاوضة في حق المستأمنين بين أقساط التأمين وتعويضاته، وهي معاوضة تنطوي على غرر فاحش مفسد للعقود، وعليه، يجب الفصل تماما بين وعاء التأمين وحساب الشركة، بحيث يكون كل حساب مستقلا تماما عن الآخر وبمنزلة الذمة المستقلة، فلا تملك شركة التأمين وعاء التأمين، وليس يكفي الفصل العادي في التقييد الحسابي، فهذا تفعله كل شركة حتى شركات التأمين التقليدي، بغية معرفة مبالغ الاشتراكات، ومعرفة الأرباح وتمييزها، لكن يبقى أصل الحساب مملوكا لها.
3) عدم استحواذ شركة التأمين على الفائض أو التحايل على ذلك، بل رده على المشتركين أو التصرف فيه بما يملون ويريدون حقيقة، لا على سبيل الإذعان لما تمليه عليه وثائق التأمين. وذلك لأن الشركة لما لم تملك وعاء التأمين، ما جاز لها أن تملك الفائض؛ وبملكها للفائض تتحقق المعاوضة في حق الشركة بين أقساط التأمين والفائض، وهي معاوضة بغرر فاحش مفسد لها.
4) عدم تعهد شركة التأمين بدفع التعويضات بالغا ما بلغت، أو بإقراض صندوق التأمين في حال عجز صندوق التأمين عن سداد التعويضات، لأن الشركة إنما هي أجيرة مقابل إدارة عملية التأمين واستثمار ما في الصندوق، فليس يصح أن يكون من مسؤوليتها أن تسدد التعويضات بالغاً ما بلغت، بل حتى يتأكد أن الشركة إنما تدفع من أموال المشتركين، وأنها لا تملك وعاء التأمين، ينبغي ألا يصدر منها أي تعهد بتغطية أي عجز على أي سبيل كان، لأن النتيجة حينئذ كنتيجة الدفع من أموال الشركة الخاصة، وهو الحال في شركات التأمين التقليدي حيث تكون الشركة مسؤولة عن سداد كل التعويضات المستحقة بالغاً ما بلغت في مقابل ملكها لوعاء التأمين، وهو ما يحقق معنى المعاوضة.
My contribution to Oxford Analytica's examining the potential for growth in the Islamic economy, with particular focuses on Dubai’s role and on the role of universal standards
With extensive experience in disseminating the knowledge of Sharī'ah and Islamic finance throughout at graduate and postgraduate levels through teaching, publishing innovative research, examining doctoral dissertations, editing refereed... more
With extensive experience in disseminating the knowledge of Sharī'ah and Islamic finance throughout at graduate and postgraduate levels through teaching, publishing innovative research, examining doctoral dissertations, editing refereed journals, advising on Sharī'ah issues for Islamic financial institutions, and counselling Muslim communities I have successfully built a dynamic and motivated professionalism with a proven record of generating and building relationships, managing the projects I was assigned with, from concept to completion, designing educational strategies, and coaching individuals to success. I possess the required expertise in building cross-functional teams, demonstrating exceptional communication skills, and making critical decisions during challenges. I am an adaptable and transformational leader with an ability to work independently. I am a highly passionate, competitive and creative individual. My hobbies are what have developed my ambitious and disciplined nature. My goal is to spend adding value to the spaces that I thrive in.
Research Interests:
Oxford Analytica is examining the potential for growth in the Islamic economy, with particular focuses on Dubai’s role and on the role of universal standards
A complete reference for those operating within the Islamic finance industry Fundamentals of Islamic Banking and Finance is a comprehensive text, with a thorough, well-rounded approach focused exclusively on Islamic finance. Readers are... more
A complete reference for those operating within the Islamic finance industry Fundamentals of Islamic Banking and Finance is a comprehensive text, with a thorough, well-rounded approach focused exclusively on Islamic finance. Readers are introduced to the structure and functions of Islamic financial institutions, with in-depth background information and clear descriptions of all major products of the Islamic finance industry. The book takes a critical look at the concepts, problems, challenges, and prospects of the system, exposing students to the trends and practices currently taking place. Readers will gain a deeper understanding of the theoretical foundations and underlying principles of Islamic finance, and develop the skills to competently operate within Islamic financial practices. The digital component includes instructor's manuals, sample tests, and PowerPoint presentations that facilitate classroom use, making it ideal for students and professionals seeking a career as an Islamic finance specialist. Courses on Islamic finance are becoming increasingly common is universities around the world, yet there is a lack of comprehensive texts that both explain the fundamentals and detail advanced concepts in a way that students can easily digest. This book fills the gap by providing clear explanations of all aspects of Islamic finance. Understand the foundation of Islamic finance, including legal maxims and jurisprudence Discover the specific prohibitions that set Islamic finance apart Learn Islamic finance products and services, and the financial and regulatory infrastructure Discuss the challenges and opportunities this market faces as globalization expands With comprehensive coverage of the Islamic finance industry and ancillary classroom materials, Fundamentals of Islamic Banking and Finance is the ideal resource for an in-depth understanding of the industry.