Search results for: Islamic economic system

Authors: Samaneh Khalili

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Natural law theory, in moral philosophy, refers to a system of unchanging values held to be mutual to all humans and can be discovered through reason. The natural law theory is commonly associated with western Philosophers. In contrast, discussions on notions of natural law in Islamic intellectual history were relatively rare. This paper aims to show that the moral theory developed by the Mu'tazilite thinkers can be classified in the ideas of natural law. In doing so, this study will demonstrate that the objective and unchanging values, according to Mu'tazilite theologians, provide the guidelines for assessing the Islamic law rules in the field of human coexistence. The focus of the paper lies on ʿAbd al-Ğabbār, who was the most influential thinker in the late epoch of the Muʿtazila. Although ʿAbd al-Ǧabbār did not leave a text with a systematic discussion of natural law, his teaching of nature, human reason, and the moral values of actions are all scattered throughout his work -'al-Muġnī fī abwāb at-tawḥīd wa-l-'adl'. It is necessary to focus on ʿAbd al-Ǧabbār's theories on reason, nature, and ethics since natural law revolves around the basic concepts of nature, reason, and moral value. While analyzing the concept of the Nature, it will attempt to answer how he explains the world's physical structure and God's relationship to natural events. Moreover, from ʿAbd al-Ǧabbār's point of view, is nature a self-determined system that follows its inner principle in every kind of change, or is nature guided by an external power? Does causality govern natural events? About the concept of reason, an attempt is made to examine how human reason, according to ʿAbd al-Ǧabbār, conceives moral attributes. Finally, the Autor will discuss the concepts of objective values and the place of rights and duties derived from Islamic law in ʿAbd al-Ǧabbār's thought.

Keywords: Islamic law, Mu'tazilite theology, natural law in Islamic theology, objective and unchanging values.

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Authors: Nawaf Alyaseen

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This paper provides a comparative analysis of the Islamic and Western public policy and morality principles governing trademarks. The aim of this paper is to explore public policy and morality principles that affect trademark registration and protection under Shari'a by using Kuwaiti law as a case study. The findings provide a better understanding of trademark recognition from the perspective of Shari'a and the requirements demanded by Islamic Shari'a, especially of those who deal with strict Shari'a jurisdiction countries. In addition, this understanding is required for corporations or legislators that wish to take into consideration Muslim consumers. The conclusion suggests that trademarks in Western and Islamic systems are controlled by a number of public policy and morality rules that have a direct effect on the registration and protection of trademarks. Regardless of the fact that there are many commonalities between the two systems, there are still fundamental differences.

Keywords: trademark, public policy and morality, Islamic sharia, western legal systems

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Authors: Aslam Faheem, Hunjra Ahmed Imran, Tayachi Tahar, Verhoeven Peter, Tariq Yasir

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We investigate the evidence of three risk-adjusted calendar anomalies in eight frontier markets. Our sample consists of the daily closing prices of their stock indices for the period of January 2006 to September 2019. We categorize the data with respect to day-of-the-week, Lunar calendar and Islamic calendar. Using Morgan Stanley Capital International (MSCI) eight Markets Index as our proxy of the market portfolio, most of the frontier markets tested exhibit calendar seasonality. We confirm that systematic risk varies with respect to day-of-the-week, Lunar months and Islamic months. After consideration of time-varying risk and applying Bonferroni correction, few frontier markets exhibit profitable investment opportunities from calendar return anomalies for active investment managers.

Keywords: asset pricing, frontier markets, market efficiency, Islamic calendar effects, Islamic stock markets

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Authors: Shaghayegh Mirshekari, Atiyeh Ghorbani

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EThe Iranian system of education has been politically influenced by the thoughts of the governing religious party. It has brought many religious books into the educational system from grade one up to graduation from high school, and therefore, teaching English as a non-Islamic language has been put aside the system, focusing on the Islamic language of Arabic. Teaching English has been widely talked about in international academia, but the Iranian educational system has not brought in any of its outcomes due to the general policy of keeping people away from international Western thoughts. Because of the increasing interest among Iranians in learning English, this language is being taught and studied in public and private schools, commercial and adult schools, language institutes, colleges, universities, and numerous homes throughout the country. Methods and techniques of teaching English, the attitude of the teachers and learners towards the language, and the availability of textbooks and other language materials are quite different in any one of the different institutions. This paper has evaluated the outcome of the Iranian educational system in teaching English in terms of their methods of teaching, as well as the policies regarding the educational system. The results show that not only has there been no progress in the system in terms of teaching English, rather there is backwardness in this regard due to the political policy of preventing people from learning English. Therefore, we see the majority of the youth not speaking English properly at the age where they need to enter the international arena.

Keywords: English, public school, language, Iran, teaching

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Authors: Dina Safrina

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This paper aims to discuss the suitability of tax administration in Indonesia based on Islamic Shari'a by looking at Abu Yusuf's idea of taxation. This research is a qualitative research and using data collection method by library research, that is by studying, deepening and citing theories or concepts from a number of literature. The purpose of this paper is to find out whether taxation in Indonesia is consistent with the thinking of Islamic economists, namely Abu Yusuf's idea which became known by economists as the canons of taxation. The ability to pay, lax time giving for taxpayers and the centralization of decision-making in the tax administration are some of the principles it emphasizes. In taxation he recommends the use of the Muqassamah (Proportional Tax) system rather than the Mixed (Fixed Tax) system. In this case, the determination of tax rates in Indonesia there are using fixed tax system, proportional tax, progressive tax and regressive tax. Abu Yusuf opposed the existence of Qabalah institution (the guarantor of tax payments to the state) at the time and suggested a tax administration centered and paid directly to the state. This is in accordance with those already applied in Indonesia where tax collection is done centrally. The tax system in Indonesia using self assessment system, which is the authority and responsibility given by the government to the taxpayer to calculate, pay and report the tax itself becomes the gap for taxpayers to commit fraud. Prerequisites that must be met for the success of this system is with the tax consciousness, tax honesty, tax mindedness, and tax discipline.

Keywords: Abu Yusuf, Indonesia, tax, tax administration

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Authors: Achsania Hendratmi, Puji Sucia Sukmaningrum, Fatin Fadhilah Hasib, Nisful Laila

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The research aimed to know the influence of Capital Adequacy Ratio (CAR), Return on Assets (ROA) and Size of the Financing to Deposit Ratio (FDR) Islamic Banks in Malaysia by using eleven Islamic Banks in Indonesia and fifteen Islamic Banks in Malaysia in the period 2012 to 2016 as samples. The research used a quantitative approach method, and the analysis technique used multiple linear regression. Based on the result of t-test (partial), CAR, ROA and size significantly affect of FDR. While the results of f-test (simultaneous) showed that CAR, ROA and Size significant effect on FDR.

Keywords: capital adequacy ratio, financing to deposit ratio, return on assets, size

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Authors: Ziyad Motala

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It is often proclaimed by leasers in Muslim majority countries that Islamic Law does not permit dissent against a ruler. This paper will evaluate and discuss freedom of speech and dissent as found in concrete prophetic examples during the time of the Prophet Muhammad. It will further look at the examples and practices during the time of the four Noble Caliphs, the immediate successors to the Prophet Muhammad. It will argue that the positivist position of absolute obedience to a ruler is inconsistent with the prophetic tradition. The examples of the Prophet and his immediate four successors (whose lessons Sunni Islam considers to be a source of Islamic Law) demonstrates among the earliest example of freedom of speech and dissent in human history. That tradition frowned upon an inert and uninvolved citizenry. It will conclude with lessons for modern day Muslim majority countries arguing with empirical evidence that freedom of speech, dissent and the right to be governed by consensus versus coercion are fundamental requisites of Islamic law.

Keywords: islamic law, demoracy, freedom of speech, right to dissent

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Authors: Hakam Junus, Natassha Chrysanti

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The international relations theory currently is dominated by the western theoretical perspectives. Although the western theories are often used by many scholars as the universal perspective to explain the phenomena that occur in the world, sometimes the existing theories are failed to explain various issues that occur in the non-western world, for example, in the studies concerning on terrorism issues. Using inappropriate theories to explain the international issues such as terrorism will cause a failure in the decision-making process. The lack of understanding regarding Islamic perspective could be one of the factors that make international society unable to eradicate violent terrorism in the name of religion. Thus, this paper is argued that considering Islamic perspective as one of the major studies in international relations is significant to build a bridge between the Islamic world and the western world. It is believed that enhancing the study of Islamic perspective will create better understanding of the Islamic world and will enrich the study of international relations. This paper is conducted through a qualitative approach, in which data is obtained from the literature analysis. Considering Islamic perspective is important because Islam is listed as one of the major religions in the world. It is also due to the geopolitical spread of the Muslim in the world and the likelihood of the Islamic perspective to shape and influence Muslim’s behavior in the international level. The study of Islamic perspective in the international level is neither to contempt nor to oppose the existing western theories; rather it is needed in order to broaden the perspective in the international relations studies. The Islamic perspective is different compared to the non-western school of thought such as realism, and liberalism in some respects. The Islamic perspective cannot be explained through the lens of rationalist approaches. Compares to the post-positivism international relations perspectives, Islamic perspective is probably closer to the constructivist school of thought. However, the Islamic perspective offers some uniqueness that is not limited to the socially constructed ideas as in the constructivist arguments. This paper will be developed according to the discussion of three aspects that make Islamic perspective different with the existing international relations theories. The first aspect is the main actors in the international level. The second aspect is regarding on what appears to be the most important point for the actors in the international relations. The third aspect is regarding the pattern of relationship between the actors in the international level. In addition, this paper will briefly discuss the perspective of Islam in economics compare to the existing theories in the realm of international political economy.

Keywords: international relations, Islam, non-western theories, societies

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Authors: Qamar Ul Haq, Talat Hussain, Mufti Fahad Ahmed Qureshi

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From the Islamic perspective, managing human resource meets various challenges, especially in the modern organizations. The adoption of Western practices in various aspects of management have caused gaps in justice, trustworthy, responsibility and other values of workers in Muslim countries. Thus, the interference of Islamic principles in human resource management (HRM) can be considered as a great solution for treating employees fairly and justly. This research aims to examine the level of Islamic practices in HRM, in which includes recruitment and selection, training and development, career development, performance management and rewards. The paper will analyze the relationships between HRM practices and organizational justice which focus on three elements, which are distributive justice, procedure justice and interactional justice. The data will be collected from selected Malaysian Government-Linked Company (GLC). Convenience sampling will be used to select the respondents for completing questionnaires. This conceptual paper essentially provides organizations with effective ways of understanding and implementing HRM by using Islamic principles. It also can be used as guidance for decision-making and day-today HR activities and will help organization to face uncertainties in the business world as well.

Keywords: human resource management, organizational justice, Islam, Islamic banking

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Authors: Afsana Afsar Tuly

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The Rohingyas are a group of minority Muslimsin Myanmar who witnessed series of persecution, violence, and torture from Burmese military since 1948. In 2017, around 700,000 Rohingyas fled to the neighboring country Bangladesh and took shelter as refugees after facing clashes with Myanmar security forces. The number increased to 1.8 million in 2020, creating one of the largest refugee crises of recent times. This research focuses on the vulnerability and poverty faced by Rohingyas in refugee camps and how thelack of long-term solution and silence from international communitycan pose national security threat and increasing Islamic extremism in Bangladesh. Islamic religious and terrorist groups have used the Rohingyas position as stateless people to influence them into speaking against the secular government of Bangladesh. There has been increasing crime rates and formation of different rebel groups in refugee camps, causing clashes with Bangladeshi police and authority. Human trafficking, illegal drug dealings, prostitution, and other illicit activities have continuously gone up in the southeastern part of Bangladesh. Some economic, social, and environmental factors are studied and analyzed to show the change in Bangladesh between 2017 and 2020.

Keywords: national security threat, islamic extremism, rohingya refugees, refugee studies, Bangladesh, myanmar

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Authors: Mohamed Almagsoudi

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The aim of this paper is to deal with two issues. One of them is about the theoretical side of codification, and the other is related to the practical side. At first, I have tried to criticize the debate running about codification of Islamic and Saudi Law, through observing and analyzing views of opponents and advocates. I tried to prove a hypothesis that both parties could not completely succeed in reviewing the theoretical base of this topic where discussion would not deal with irrelevant matters. It is a crucial shortcoming that made advocates unable to answer the critical questions addressed by those opponents.

Keywords: Codification, Saudi Law, Islamic law, Sharia

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Authors: Mehriban Ahmadova

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Country of origin has been found to be an important determinant of the level of corporate social disclosure. The purpose of this study is to investigate the differences of corporate social disclosure, including sharia non-compliant information, by Islamic banks. The study applies content analysis approach of annual reports of fully-fledged Islamic banks from 24 countries. International differences are found in terms of level, methods and location of disclosure.

Keywords: Content analysis, Corporate social disclosure, Islamic banks, Sharia non-compliant disclosure

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Authors: Alireza Tavakoli Nia

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In order to understand the role of the injured party's fault in dividing liability, we studied its historical background. In common law, the traditional contributory negligence rule was a complete defense. Then the legislature and judicial procedure modified that rule to one of apportionment. In Islamic law, too, the Action rule was at first used when the injured party was the sole cause, but jurists expanded the scope of this rule, so this rule was used in cases where both the injured party's fault and that of the other party are involved. There are some popular approaches for apportionment of damages. Some common law countries like Britain had chosen ‘the causal potency approach’ and ‘fixed apportionment’. Islamic countries like Iran have chosen both ‘the relative blameworthiness’ and ‘equal apportionment’ approaches. The article concludes that both common law and Islamic law believe in the division of responsibility between a wrongdoer claimant and the defendant. In contrast, in the apportionment of responsibility, Islamic law mostly believes in equal apportionment that is way easier and saves time and money, but common law legal systems have chosen the causal potency approach, which is more complicated than the rival approach but is fairer.

Keywords: contributory negligence, tort law, damage apportionment, common law, Islamic law

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Authors: Jamaludin Tarkim, Yoga Teguh Guntara, Maftuhah

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Islamic leadership style is model of leadership style applied by the Prophet Muhammad SAW. Islamic leadership style is applied, namely Syura (deliberation), ‘Adl bil qisth (justice, with equality), and Hurriyyah al-kalam (freedom of expression) and along with the values of Islam in the Islamic leadership style. This research aims to gain an overview of the experience of Head Nurse in the implementation of Islamic leadership style. This research is a qualitative one with descriptive phenomenology design through in-depth interviews. Participants were occupied as Head Nurse at the Hospital room Syarif Hidayatullah, set directly (purposive) with the principle of suitability (appropriateness) and sufficiency (adequacy). Retrieval of data and research conducted during the month of June 2014. Data collected in the form of recording in-depth interviews and analysis with Collazi method. This research identified four themes Syura (deliberation);‘Adl bil qisth (justice, with equality); Hurriyyah al-kalam (freedom of expression) and along with the values of Islam in the Islamic leadership style. The results of this research can provide a review of the Head Room experience in the application of Islamic leadership style at Syarif Hidayatullah Hospital already skilled leadership during the process, but the application is still not maximized. Required further research on in-depth exploration of how to get more comprehensive results from room Head Nurse experience in the application of Islamic leadership style, as well as subsequent researchers can choose a wider scope and complex so get more complete data.

Keywords: experience, Islamic leadership style, head nurse, nursing management

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Authors: Fatin Fadhilah Hasib, Puji Sucia Sukmaningrum, Imron Mawardi, Achsania Hendratmi

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Murabaha is the most popular contract by the Islamic banks in Indonesia, since there is opinion stating that the risk level of mudharaba and musyaraka are higher and the return is uncertain. This research aims to analyze the difference of return, risk, and variation coefficient between profit sharing-based and trading-based financing in Islamic bank. This research uses quantitative approach using Wilcoxon signed rank test with data sampled from 13 Indonesian Islamic banks, collected from their quarterly financial reports from 2011 to 2015. The result shows the significant difference in return, while risk and variation coefficient are almost same. From the analysis, it can be concluded that profit sharing-based financing is less desirable not because of its risk. Trading-based financing is more desirable than the profit sharing because of its return.

Keywords: financing, Islamic bank, return, risk

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Authors: Mehdi Beyad

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Muhammad Abduh stands as a founding thinker of Islamic revivalism and modernism, the political phenomenon which began with him and Jamal al-Din al-Afghani in the 19th century which sought to address the perceived regression of Islamic societies in the face of western colonialism and the onslaught of modernity. The scholarship on Abduh and al-Afghani, and Islamic modernism in general, is vast. This paper, however, provides a critical approach to some of this scholarship and attempts to re-think the epistemic framework of Abduh's political thought and the place of Islam therein. Much of the current work on Abduh falls into the trap of seeing his task as one of "compromising" Islam for the values of European modernity. This paper argues that for Abduh, Islam was not just a compartmentalised theological framework: it was at the nexus of societal emancipation, intellectual and cultural rejuvenation, and political progress. Far from “modernising” and diluting Islam to the extent that it became irrelevant in the face of rationality as defined by European modernity, Islam remained central to Abduh’s political framework.

Keywords: Islamic political thought, Islamic revivalism, modernism, Muhammad Abduh, epistemology

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Authors: Zahra Yaghoubi

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One of the initial occurrences that, according to observations of those who have temporarily experienced death, arises is encountering beings or individuals possessing supernatural powers. For some, these beings are described as beautiful and radiant, while for others, they are portrayed as dark and terrifying. In some experiences, they are mentioned as young and beautiful individuals. Islamic religious sources refer to these beings as angels or celestial beings assigned by God to take and collect human souls. This research, conducted through library methods, examines and justifies the initial stage of observations from an Islamic perspective based on first and second-hand religious sources. It relies on evidence, observations, and oral narratives of near-death experiencers, as well as interviews published in television programs. The goal is to investigate Islamic sources and validate the presence of angels in near-death experiences. The use of visual interview reports direct reliance on the narrative rather than the written text by someone other than the experiencer, is among the main criteria for enhancing transparency and authenticity in conveying the individual's experiences.

Keywords: angel, angels of death, Islamic sources, near-death experiences, death, soul

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Authors: Malik Imtiaz Ahmad

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Human beings are the super organism granted the gift of consciousness of life by the Almighty God and endowed with an intrinsic legal value to their humanity that shall be guarded and protected respecting dignity regardless of your cultural, religious, race, or physical background; you want to be treated equally for a reason for being human. Islam graces the essential integrity of humanity and confirms the freedom and accountability impact on individuality and the open societal sphere, including the moral, economic, and political aspects. Human Rights allow people to live with dignity, equality, justice, freedom, and peace. The Kantian approach to morality expresses that ethical actions follow universal moral laws. Hence, human rights are based upon the normative approaches setting the international standards to promote, guard, and protect the fundamental rights of the people. Islam is a divine religion commanding human rights based upon the principles of social justice and regulates all facets of the moral and spiritual ethics of Muslims besides bringing balance abreast in the non-Muslims to respect their lives with safety and security and property. The Canon law manifests the faith and equality amongst Christianity, regulating the communal dignity to build and promote the sanctity of Holy life (can. 208 to 223). This concept of the community is developed after the insight of the Islamic 'canon law', which is the code of revelation itself and inseparable from the natural part of the salvation of mankind. The etymology and history of human rights is a polemical debate in a preview of Islamic and Western culture. On the other hand, international law is meticulous about the fundamental part of Conon law that focuses on the communal political, social and economic relationship. The evolving process of human rights is considered to be an exclusive universal thought regarding an open society that forms a legal base for the constituent of international instruments of the protection of Human Rights, viz. UDHR. On the other side, Muslim scholars emphasize that human rights are devolving around Islamic law. Both traditions need a dire explanation of contemporary openness for bringing the harmonious universal law acceptable and applicable to the international communities concerning the anthropology of political, economic, and social aspects of a human being.

Keywords: human rights-based approach (HRBA), human rights in Islam, evolution of universal human rights, conflict in western, Islamic human rights

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Authors: Ulemu Maseko

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This study critically examines the empowerment of Muslim women in Malawi, focusing on the Muslim Women’s Organization (MWO) and its impact on gender equality within Islamic communities. It explores MWO's interpretation of Islamic women's rights, the stereotypes Muslim women face, and the factors limiting their rights. Utilizing qualitative methods, including interviews, focus groups, and participant observations, the research adopts phenomenological and feminist frameworks. Findings indicate that since its establishment in 1985, MWO has significantly advocated for gender equality by leveraging Islamic teachings and policy to support women’s empowerment, enabling Muslim women to participate in social change. However, entrenched cultural traditions, patriarchal structures, and systemic poverty remain barriers to empowerment.

Keywords: Islam, women empowerment, Malawi, Islamic feminism

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Authors: Magid Maatallah

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The problem is, investment management in modern conditions boils down to risk management which is very underdeveloped in Islamic financial theory and practice. Add to this the fact that, in Islamic perception, this is one of the areas of conventional finance in need of drastic reforms. This need was recently underlined by the story of Long Term Capital Management (LTCM ), ( told by Roger Lowenstein in his book, When Genius Failed, Random House, 2000 ). So we face a double challenge, to develop Islamic techniques of risk management and to see that these new techniques are free from the ills with which conventional methods are suffering. This is different from the challenge faced in the middle of twentieth century, to develop a method of financial intermediation free of interest.Risk was always there, especially in business. But industrialization brought risks unknown in trade and agriculture. Industrial production often involves long periods of time .The longer the period of production the more the uncertainty. The scope of the market has expanded to cover the whole world, introducing new kinds of risk. More than a thousand years ago, when Islamic laws were being written, the nature and scope of risk and uncertainty was different. However, something can still be learnt which, in combination with the modern experience, should enable us to realize the Shariah objectives of justice, fairness and efficiency.

Keywords: financial markets, Islamic framework, risk management, investment

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Authors: Francesco Saverio Angiò

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The Islamic State of Iraq and the Levant / Syria (ISIL/S), Al-Qaeda in the Islamic Maghreb (AQIM) and People Committed to the Propagation of the Prophet's Teachings and Jihad, also known as ‘Boko Haram’ (BH), have fought successfully against Syria and Iraq, Mali, Nigeria’s government, respectively. According to Napoleoni, the ‘shell-state’ concept can explain the economic dimension and the financing model of the ISIL insurgency. However, she argues that AQIM and BH did not properly plan their financial model. Consequently, her idea would not be suitable to these groups. Nevertheless, AQIM and BH’s economic performances and their (short) territorialisation suggest that their financing models respond to a well-defined strategy, which they were able to adapt to new circumstances. Therefore, Napoleoni’s idea of ‘shell-state’ can be applied to the three jihadist armed groups. In the last five years, together with other similar entities, ISIL/S, AQIM and BH have been fighting against governments with insurgent tactics and terrorism acts, conquering and ruling a quasi-state; a physical space they presented as legitimate territorial entity, thanks to a puritan version of the Islamic law. In these territories, they have exploited the traditional local economic networks. In addition, they have contributed to the development of legal and illegal transnational business activities. They have also established a justice system and created an administrative structure to supply services. Napoleoni’s ‘shell-state’ can describe the evolution of ISIL/S, AQIM and BH, which has switched from an insurgency to a proto or a quasi-state entity, enjoying a significant share of power over territories and populations. Napoleoni first developed and applied the ‘Shell-state’ concept to describe the nature of groups such as the Palestine Liberation Organisation (PLO), before using it to explain the expansion of ISIL. However, her original conceptualisation emphasises on the economic dimension of the rise of the insurgency, focusing on the ‘business’ model and the insurgents’ financing management skills, which permits them to turn into an organisation. However, the idea of groups which use, coordinate and grab some territorial economic activities (at the same time, encouraging new criminal ones), can also be applied to administrative, social, infrastructural, legal and military levels of their insurgency, since they contribute to transform the insurgency to the same extent the economic dimension does. In addition, according to Napoleoni’s view, the ‘shell-state’ prism is valid to understand the ISIL/S phenomenon, because the group has carefully planned their financial steps. Napoleoni affirmed that ISIL/S carries out activities in order to promote their conversion from a group relying on external sponsors to an entity that can penetrate and condition local economies. On the contrary, ‘shell-state’ could not be applied to AQIM or BH, which are acting more like smugglers. Nevertheless, despite its failure to control territories, as ISIL has been able to do, AQIM and BH have responded strategically to their economic circumstances and have defined specific dynamics to ensure a flow of stable funds. Therefore, Napoleoni’s theory is applicable.

Keywords: shell-state, jihadist insurgency, proto or quasi-state entity economic planning, strategic financing

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Authors: Nasir Mehmood, Muhammad Yar Khan, Anam Javeed

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This study aims to scrutinize the dynamics which tend to impact customer’s purchasing intention of Islamic credit card and nexus of product’s knowledge and religiosity with the attitude of potential Islamic credit card’s customer. The theory of reasoned action strengthened the idea that intentions due to its proven predictive power are most likely to instigate intended consumer behavior. Particularly, the study examines the relationships of perceived financial cost (PFC), subjective norms (SN), and attitude (ATT) with the intention to purchase Islamic credit cards. Using a convenience sampling approach, data have been collected from 450 customers of banks located in Rawalpindi and Islamabad. A five-point Likert scale self-administered questionnaire was used to collect the data. The data were analyzed using the Statistical Package of Social Sciences (SPSS) through the procedures of principal component and multiple regression analysis. The results suggested that customer’s religiosity and product knowledge are strong indicators of attitude towards buying Islamic credit cards. Likewise, subjective norms, attitude, and perceived financial cost have a significant positive impact on customers’ purchase intent of Islamic bank’s credit cards. This study models a useful path for future researchers to further investigate the underlined phenomenon along with a variety of psychodynamic factors which are still in its infancy, at least in the Pakistani banking sector. The study also provides an insight to the practitioners and Islamic bank managers for directing their efforts toward educating customers regarding the use of Islamic credit cards and other financial products.

Keywords: attitude, Islamic credit card, religiosity, subjective norms

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Authors: Dchieche Amina, Aboulaich Rajae

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In this work, we will modelize Waad Bil Mourabaha contract. This islamic contract provides the right to buy goods at a future date with a Mourabaha. Waad is a promise of sale or purchase of goods, declared in a unilateral way. In spite of the divergence between some schools of Islamic law about the Waad, this contract will allow us to study sophisticated and interesting contract: Waad Bil Mourabaha that can be used for hedging. In order to price Waad Bil Mourabaha contract, we will use an adapted Black and Scholes model using the Shariah compliant assumptions.

Keywords: Islamic finance, Black-Scholes model, call option, risks, hedging

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Authors: Liyu Adhi Kasari Sulung

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Poverty has been a major problem in Indonesia. Islamic micro finance (IMF) named Baitul Maal Wat Tamwil (Bmt) plays a prominent role to eradicate this. Indonesia as the biggest muslim country has many successful applied products such as worldwide adopt group-based lending approach, flexible financing for farmers, and gold pawning. The Problems related to these models are operation risk management and internal control system (ICS). A proper ICS will help an organization in preventing the occurrence of bad financing through detecting error and irregularities in its operation. This study aims to seek a proper risk management scheme of credit system in Bmt and internal control system’s rank for every stage. Risk management variables are obtained at the first In-Depth Interview (IDI) and Focus Group Discussion (FGD) with Shariah supervisory boards, boards of directors, and operational managers. Survey was conducted covering nationwide data; West Java, South Sulawesi, and West Nusa Tenggara. Moreover, Content analysis is employed to build the relationship among these variables. Research Findings shows that risk management Characteristics in Indonesia involves ex ante, credit process, and ex post strategies to deal with risk in credit system. Ex-ante control consists of Shariah compliance, survey, group leader reference, and islamic forming orientation. Then, credit process involves saving, collateral, joint liability, loan repayment, and credit installment controlling. Finally, ex-post control includes shariah evaluation, credit evaluation, grace period and low installment provisions. In addition, internal control order sort three stages by its priority; Credit process as first rank, then ex-post control as second, and ex ante control as the last rank.

Keywords: internal control system, islamic micro finance, poverty, risk management

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Authors: Abderrazek Ben Maatoug, Ibrahim Fatnassi, Wassim Ben Ayed

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In this paper we investigate the issue of market risk quantification for Middle East and North Africa (MENA) Islamic market equity. We use Value-at-Risk (VaR) as a measure of potential risk in Islamic stock market, for long and short position, based on Riskmetrics model and the conditional parametric ARCH class model volatility with normal, student and skewed student distribution. The sample consist of daily data for the 2006-2014 of 11 Islamic stock markets indices. We conduct Kupiec and Engle and Manganelli tests to evaluate the performance for each model. The main finding of our empirical results show that (i) the superior performance of VaR models based on the Student and skewed Student distribution, for the significance level of α=1% , for all Islamic stock market indices, and for both long and short trading positions (ii) Risk Metrics model, and VaR model based on conditional volatility with normal distribution provides the best accurate VaR estimations for both long and short trading positions for a significance level of α=5%.

Keywords: value-at-risk, risk management, islamic finance, GARCH models

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Authors: Zeinabossadat Hosseini, Fateme Qorbani

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The universal community has suffered from the lack of a sustainable and prosperous civilization in the world, and human distance from religious doctrines exposes the civilization of society to decline and collapse. To build a sustainable Islamic civilization, it is essential to understand and strengthen the core foundations of this subject. Islam, which claims to be integral in ensuring human prosperity and the creation of a new Islamic civilization, it can only develop this civilization if it has the necessary foundations. On the other hand, the family is one of the most important and effective foundations for effective individual and community life, and according to the influential role of the family on human behavioral and cognitive domains, it is impossible to define and explain the development of Islamic civilization without regard to the family category. The family can be effective in this important matter through its direct and indirect role in the education of individuals, and its members have the highest interaction and impact on each other. Development of the teachings of Islam in the form of verses and traditions can guide people towards the Islamic lifestyle and thus Islamic civilization and the Pure life (Tayyibah life-Al-Nahl/97). This article provides a descriptive-analytical approach to the conclusion that modern Islamic civilization promises the prosperity of the world and the hereafter. It will bring peace and prosperity to the world as well as advancement, fight against poverty, unity, and solidarity of Muslims, preservation of human dignity, as well as the growth of spirituality. It can also be deduced that the foundations of Islamic civilization in Qur'anic Tayyibah life and in today's term, the Islamic lifestyle, can be identified and implemented in the family structure, And the components of this blissful life can be found in this focus. The Tayyibah life will be realized by relying on the right faith and practice, paying attention to the rulings, divine command mentioned in the verses, as well as the traditions, altruism, nurturing a commitment to the community.

Keywords: family, development of modern Islamic civilization, quranic lifestyle, Tayyibah life

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Authors: Meysam Saidi

Abstract:

While the specific externalities and required regulatory measures in relation to Islamic banking are fairly uncertain, the business is growing across the world. Unofficial data indicate that the Islamic Finance market is growing with annual rate of 15% and it has reached 1.3 $ trillion size. This trend is associated with inherent systematic connection of Islamic financial institutions to other entities and different sectors of economies. Islamic banking has been subject of market development policies in major economies, most notably the UK. This trend highlights the need for identification of distinct risk features of Islamic banking and crafting customized regulatory measures. So far there has not been a significant systemic crisis in this market which can be attributed to its distinct nature. However, the significant growth and spread of its products worldwide necessitate an in depth study of its nature for customized congruent regulatory measures. In the post financial crisis era some market analysis and reports suggested that the Islamic banks fairly weathered the crisis. As far as heavily blamed conventional financial products such as subprime mortgage backed securities and speculative credit default swaps were concerned the immunity claim can be considered true, as Islamic financial institutions were not directly exposed to such products. Nevertheless, similar to the experience of the conventional banking industry, it can be only a matter of time for Islamic banks to face failures that can be specific to the nature of their business. Using the experience of conventional banking regulations and identifying those peculiarities of Islamic banking that need customized regulatory approach can aid to prevent major failures. Frank Knight has stated that “We perceive the world before we react to it, and we react not to what we perceive, but always to what we infer”. The debate over congruent Islamic banking regulations might not be an exception to Frank Knight’s statement but I will try to base my discussion on concrete evidences. This paper first analyzes both theoretical and actual features of Islamic banking in order to ascertain to its peculiarities in terms of market stability and other externalities. Next, the paper discusses distinct features of Islamic financial transactions and banking which might require customized regulatory measures. Finally, the paper explores how a more transparent path for the Islamic banking regulations can be drawn.

Keywords: Islamic banking, regulation, risks, capital requirements, customer protection, financial stability

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Authors: Fatma Ezzahra Kateb, Neila Boulila Taktak, Mohamed Kabir Hassan

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We examine the impact of Islamic accounting and auditing standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) on the income smoothing perspective of Islamic financial institutions located in the Middle East and North Africa region between 2013 and 2018. Based on General Least square regression for panel data, we find a significant and positive relationship between intentional income smoothing and earning persistence and cash flow predictability in all models. However, we discovered that AAOIFI accounting standards (FAS) had a negative and significant effect on intentional income smoothing and earning persistence. As a result, the income smoothing efficiency is lower for IFIs that use FASs than IFIs that use IFRSs. Our findings emphasize the need for specific standards to enhance the relevance of financial reports disclosed by Islamic financial institutions.

Keywords: AAOIFI, financial reporting quality, income smoothing perspective, MENA countries

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Authors: Nunik Junara, Sugeng Triyadi

Abstract:

Sustainable Housing in Islamic perspective, can be defined as a multi-dimensional process that seeks to achieve a balance between economic and socio-cultural aspects on the side, and environmental aspect on the other. There are many quotes verses in the Quran and Hadith that leads to the belief that Islam as a Rahmatan lil Alamin, where men are encouraged to act wisely in treating nature and all living things in it. One aspect of the natural environment that closed to human is plants. In the settlement, the availability of plants or also called green open space is highly recommended. The availability of green open space in the neighborhood, both the public and private green open spaces is expected to reduce the effects of global warming that has engulfed various parts of the world. Green open space that can be viewed from the angle of eco-aestetic and eco-medical in sustainable architecture, is expected to increase the temperature and provide aesthetic impression to the surrounding environment. This paper attempts to discuss the principles of Islamic values related to the natural environment as a major resource for sustainability. This paper also aims to raise awareness of the importance of the theme of sustainability in settlements, especially in big cities. Analysis of the availability of green open space in kampung Kauman Malang is one example of the effort to apply the principles of sustainable housing.

Keywords: green open space, sustainable housing, Islamic values, Kampung Kauman Malang

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Authors: Maziar Asefi, Safa Salkhi Khasraghi

Abstract:

Despite the great development of Islamic Architecture in its conquered lands, its active performance in a vast geographical area, faded by the advent of industrial age. Now in the Information Age with great advances in technologies and increased interconnection among many societies, every aspect of life is affected by rapid spreading phenomenon called globalization which resulted in the world with less regional and cultural boundaries. So being proudly globalized in the past and becoming inactive in today's globalized world puts Islamic Architecture in a great challenge. Indeed, its important role has changed from transmitting cultural values to the world to importing dominated values even defectively. This study aimed to determine the factors influenced this controversial situation of Islamic Architecture, especially in current age. The paper focuses on performance of Islamic architecture in relation with Globalization as an ancient process. So qualitative method in terms of logic analysis was chosen to evaluate how Islamic architecture of Iran has contributed in Globalization subject in different time periods. Several works were analyzed as case studies in three categories: religious, monumental, commercial utilities and climate element. Theoretical and practical findings indicate that there is a mutual relationship between Islamic Architecture and Globalization which is transformed from the active mode to passive mode gradually in three periods of Globalization: proto, modern and communication Globalization. The proposed solution in the response to this challenge is finding a solution that makes an equilibrium between science, art, and technology, as well as taking the global performance of architecture.

Keywords: Islamic architecture, globalisation, the relationship among art, science and technology, Iranian architecture

Procedia PDF Downloads 300