Search results for: islamic extremism

Authors: Anas Abdulrahman A. Almiman

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In recent decades, efforts to combat extremism have focused on non-physical dimensions, as various countries have attempted to raise security awareness or promote authentic and moderate Islamic education. The Kingdom of Saudi Arabia is one of the most successful and unique cases because it has focused on the immunization of Islamic intellectual security to combat extremism. This study aims to define the concept and importance of Islamic intellectual security in the Kingdom of Saudi Arabia through a descriptive-analytical study. It describes the potential role of Islamic intellectual security immunization in reducing extremism in the Kingdom of Saudi Arabia from 1979 to 2019, identifying various factors that connect Islamic intellectual security immunization to extremism reduction. One such factor is the MISK Foundation’s forums and conferences intended to raise Islamic intellectual security and reduce intellectual deviation, thus reducing extremism. It concludes that the common significant factor for Islamic intellectual deviation is direct commands and prohibitions. This study supports the efforts made by the Kingdom of Saudi Arabia to immunize Islamic intellectual security and fight extremism as a consequence.

Keywords: extremism, intellectual security immunization , Saudi Arabia, Islamic

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Authors: Janiel David Melamed Visbal

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The Islamic State has become one of the most remarkable threats for international security through their religious extremism and their establishment of a new caliphate by force. The main objective of this organization is to obtain territorial expansions beyond the Middle East and eventually to consolidate an Islamic global order based on their extremist ideology. This paper will conduct an analysis regarding how, over the past year, many jihadist organizations worldwide have pledged their alliagance to the Islamic State, transforming it into the most important jihadist franchise globally.

Keywords: Islamic state, franchise, jihad, Islamic fundamentalism, caliphate

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Authors: Dina Tawfic, Robert Hassan

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The current chapter addresses Al-Azhar's strategy to counter extremism in tandem with reflecting on the ideology of the Islamic establishment itself. The topic is motivated by the fact that some of the Western governments have been relying on Al-Azhar to counter the ideology of Islamist radicalism and violent extremism, in particular during the rise of the Islamic State in Syria and Iraq (known as ISIS/ ISIL/ Daesh) in 2014/2015. In his visit to Egypt in June 2016, Brett McGurk, the then U.S. envoy for the global coalition to counter ISIS, commended Al-Azhar’s “intellectual and reforming role” in refuting the ideology of extremism. On the other hand, Egyptian liberal intellectuals, such as Farag Fouda (1945- 1992) and Nasr Hamed Abu Zeid (1943-2010), had always questioned the ideological capability of Al-Azhar to counter extremism, citing the rigidity and resistance of the Islamic establishment to carry out genuine reformation. This chapter aims to discuss the following research questions: what is the strategy of Al-Azhar to counter extremism? Does Al-Azhar have a solid strategy to combat online propaganda produced by violent extremist groups? Is it applicable to identify Al-Azhar ideological identity? and is it capable of countering extremism? To answer these questions, I conducted intensive interviews with seven senior scholars and officials at Al-Azhar and the Endowments ministry from September to December 2020. Using a qualitative approach as a backdrop, this project uses semi-structured interviews to collect data. Participants were briefed on the purpose of the study and consented to be interviewed and to record their interviews. Some of the participants chose to conceal their names. All the interviews were conducted in Arabic via Zoom. The researcher then transcribed and translated the interviews into English. A purposive sample is used to select the seven interviewees, based on their prominence and experience in the field of counter-extremism and Al-Azhar affairs. The researcher uses a snowball sample to select the sample, in which a personal contact recommends other officials within the establishment.

Keywords: Al-Azhar, Egypt, Counter-Extremism, Political Islam, Ideology

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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: Mohibullah Zegham

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In conducting a case study to analyze the impact of literature on extremism and fundamentalism in Afghanistan, the author of this paper uses qualitative research method. For this purpose the author of the paper has a glance at the history of extremism and fundamentalism in Afghanistan, as well the major causes and predisposing factors of it; then analyzes the impact of literature on extremism and fundamentalism using qualitative method. This study relies on the moral engagement theory to reveal how some extreme-Islamists quit the ideological interpretation of Islam and return to normal life by reading certain literary works. The goal of this case study is to help fighting extremism and fundamentalism by using literature. The research showed that literary works are useful in this regard and there are several evidences of its effectiveness.

Keywords: extremism, fundamentalism, communist, jihad, madrasa, literature

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Authors: Muhammad Irfan

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The rise of radicalization within Islam has spawned a new era of global terror. The battlefield Successes of ISIS and the Taliban are fuelled by an ideological war waged, largely and successfully, in the media arena. This research will examine how Islamic extremist groups are using media modalities and populist narratives to influence migrant Muslim populations in Europe towards extremism. In 2014, ISIS shocked the world in exporting horrifically graphic forms of violence on social media. Their Muslim support base was largely disgusted and reviled. In response, they reconfigured their narrative by introducing populist 'hooks', astutely portraying the Muslim populous as oppressed and exploited by unjust, corrupt autocratic regimes and Western power structures. Within this crucible of real and perceived oppression, hundreds of thousands of the most desperate, vulnerable and abused migrants left their homelands, risking their lives in the hope of finding peace, justice, and prosperity in Europe. Instead, many encountered social stigmatization, detention and/or discrimination for being illegal migrants, for lacking resources and for simply being Muslim. This research will examine how Islamic extremist groups are exploiting the disenfranchisement of these migrant populations and using populist messaging on social media to influence them towards violent extremism. ISIS, in particular, formulates specific encoded messages for newly-arriving Muslims in Europe, preying upon their vulnerability. Violence is posited, as a populist response, to the tyranny of European oppression. This research will analyze the factors and indicators which propel Muslim migrants along the spectrum from resilience to violence extremism. Expected outcomes are identification of factors which influence vulnerability towards violent extremism; an early-warning detection framework; predictive analysis models; and de-radicalization frameworks. This research will provide valuable tools (practical and policy level) for European governments, security stakeholders, communities, policy-makers, and educators; it is anticipated to contribute to a de-escalation of Islamic extremism globally.

Keywords: populism, radicalization, de-radicalization, social media, ISIS, Taliban, shariah, jihad, Islam, Europe, political communication, terrorism, migrants, refugees, extremism, global terror, predictive analysis, early warning detection, models, strategic communication, populist narratives, Islamic extremism

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Authors: L. Freeman, D. Bax, V. K. Sapong

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Community-based, preventative approaches to violent extremism may be effective and yet remain an underutilised method. In a realm where security approaches dominate, with the focus on countering violence extremism and combatting radicalisation, community resilience programming remains sparse. This paper will present a survey tool that aims to measure the risk and protective factors that can lead to violent extremism in Mozambique and Tanzania. Conducted in four districts in the Cabo Delgado region of Mozambique and one district in Pwani, Tanzania, the survey uses a combination of BRAVE-14, Afrocentric and context-specific questions in order to more fully understand community resilience opportunities and challenges in preventing and countering violent extremism. Developed in Australia and Canada to measure radicalisation risks in individuals and communities, BRAVE-14 is a tool not yet applied in the African continent. Given the emerging threat of Islamic extremism in Northern Mozambique and Eastern Tanzania, which both experience a combination of socio-political exclusion, resource marginalisation and religious/ideological motivations, the development of the survey is timely and fills a much-needed information gap in these regions. Not only have these Islamist groups succeeded in tapping into the grievances of communities by radicalising and recruiting individuals, but their presence in these regions has been characterised by extreme forms of violence, leaving isolated communities vulnerable to attack. The expected result of these findings will facilitate the contextualisation and comparison of the protective and risk factors that inhibit or promote the radicalisation of the youth in these communities. In identifying sources of resilience and vulnerability, this study emphasises the implementation of context-specific intervention programming and provides a strong research tool for understanding youth and community resilience to violent extremism.

Keywords: community resilience, Mozambique, preventing violent extremism, radicalisation, Tanzania

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Authors: Naqeeb Ahmad Jan, Rukhsana Bibi

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Extremism is once again pushing the globe towards ignorance and darkness. In the present day, the wave of extremist element (tendencies) has affected the people across the globe which led them to believe in manifestation of various ideologies. Likely, the Pakistan’s North-Western province (Khyber Pakhtunkhwa) served as a main prey. However, it also served as an equal partner to halt to and control the extremist activities. This current extremist element has also affected the poets herein, and thus they (poets) used their pen as a sword and depicted this havoc, the nature of extremism they witnessed, and also asked for and supported a positive and durable solution to this menace of extremism and terrorism. Their poetic works portrayed and exhibited various examples of the extremism and its possible solution to ensure peace and harmony. The researcher has taken the liberty to argue that a balanced behaviour and attitude play a key role in the fulfillment of desired actions. The imposition of any set of belief, value and attitude leads to the multiplication of extremism and it is so poisonous that it causes to the destruction of whole human society. This study has found that the present day extremism has led to the emergence of new words, similes, metaphor and other figures of speech to be a part of the language and literature to be survived. These words have been analyzed and discussed in a new getup and meanings; the similes and metaphors describing extremism used by poets and writers of this era. The methodology is based on quantitative, analytical and comparative research. Moreover, this research has discussed indication of new words and figures of speech used by the poets and which are in practice, and impacts of extremism on the modern Urdu poetry of Khyber Pakhtunkhwa.

Keywords: extremism, modern Urdu poetry, subcontinent, terrorism

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Authors: A. Brigitte Coles

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In order to be successful in a campaign against terror and maintain a favorable world order, we must recognize the effects of priming, framing, and agenda setting on the public sphere, and address how terrorist organizations are able to manipulate language and symbols to shift public opinion and increase recruitment success. Because of their unprecedented activity in the region and foreign recruitment success, this study specifically addresses how the Islamic State (IS/ISIS/ISIL) manipulates the public sphere to amplify support and increase western recruitment. By following a grounded theory methodology and coding triangulated data from IS propaganda, a model for the process of terrorist recruitment has emerged, concerning both environments and personalities susceptible to recruitment, and the steps by which an extremist can be created. This has resulted in the ability to reverse engineer a method by which counter recruitment operations can be facilitated in an effort to lessen the vulnerability of areas and individuals, as well as create dissent among current extremists.

Keywords: countering violent extremism, counter-terrorism, recruitment, overton window

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Authors: Tehmina Aslam

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South-Asian societies elicit a male-dominant hierarchy, socio-economically and politico-religiously. The aim of the study was to examine the contribution of gender to violent extremism in order to devise means for its control in Pakistan. A qualitative case study based on interviews was conducted of de-radicalized former militants who were affiliated to militant organizations such as Sipahe Sahaba Pakistan, Lashkare Jhangvi, Laskhare Taibah, and Jaishe Mohammad, and who resided in Sargodha and Jhang, cities of the Punjab. The study exuded three main findings: first, gender alone was insufficient to motivate a male youth to resort to violent extremism; second, gender segregation made a male youth more vulnerable to an extremist ideology; and third, male gender was more prone to the influence of an extremist misguided religious ideology that pandered to male chauvinistic (societal dogmas constructing a male identity) needs and offered a male youth an opportunity to reinforce male dominance in society. The conclusion drawn was that the confluence of societal dogmas and extremist (religious) ideologies offered the major resistance against preventing violent extremism and, without dealing with both of them simultaneously, the tendency in male youth to resorting to violent extremism could not be dissipated.

Keywords: violent extremism, countering violent extremism, preventing violent extremism, youth

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Authors: Ahmet Sekreter

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Although there are conceptual similarities in terms of financial products between conventional and Islamic finance, they are entirely different financial systems. Despite Islamic finance’s small size in the conventional finance world, its promising growth makes Islamic finance a hot topic both in academia and business world. Today customers can access sophisticated Islamic financial products not only in Muslim countries but also in Europe. This study analyzes Islamic finance and its products and includes a brief overview of Islamic finance in Europe. Literature review is the basis of this paper. The author analyzed the academic papers, numerical data, and estimations to set a perspective for the future of Islamic finance in Europe. Findings show that UK is the main hub for the Islamic finance, and it will remain so in the near future.

Keywords: islamic finance, islamic banking, islamic finance in Europe, finance

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Authors: Asif Zaheer Shaikh, Zhaoyong Zhang, Jaime Yong, Ume Laila Shah

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Islamic finance is growing with remarkable pace, especially Islamic banking, a major segment of Islamic finance, is expanding rapidly. This paper discusses the position of Islamic finance and Islamic banking, around the world in general and particularly in Pakistan. History of Islamic banking in Pakistan is protested, presently a significant growth is observed. However Islamic banking is confronting with number of challenges, which are refraining from sustainable growth of this industry in Pakistan. Growth level of Islamic banks should be steeper to contribute substantial share in country’s economy. It is important to formulate effective policies, at institutional and operational level to address these challenges through close collaboration of key stakeholders.

Keywords: Islamic finance, challenges, Islamic banking, Pakistan

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Authors: Seyed Razi Nousavi Gilani

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Islamic culture and especially the Shia is full of mystical and philosophical elements. A close look at the history of Islamic civilization, which is supposed to represent the teachings and words of faith leaders with the knowledge and use of the philosophical and mystical concepts, has influenced Islamic art. This article explains the influence of Shiite Islamic teachings and their teachings of mystical elements on Islamic art and examines as case studies in the arts such as architecture, calligraphy and painting. These arts have always been associated with mystical and philosophical teachings in view of traditional artists.

Keywords: mystics, Islamic Art, Islamic culture, mystic

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Authors: Raghunath Mahabir

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This paper provides an analysis of the existing evidence on the relationships between the migration of Venezuelans into Trinidad and Tobago, violent extremism and gang violence. Arguing that there is a dearth of reliable data on the subject matter, the paper fills the gap by providing relevant definitions of terms used, discusses the sources of data and identifies the causes for this migration and the subsequent ramifications for Trinidad and Tobago and for the migrants themselves. A simple but clear classification pointing to the nexus between migration gang violence and violent extremism is developed, following the logic of migration of criminals(gang members), the need to link with local gangs and the view that certain elements within the TnT society has become radicalized to the point where violent extremism is being displayed in different ways. The paper highlights implications for further policy debate:the imperatives for more effective communication between government officials responsible for migration and those personnel who are tasked with countering violent extremism and gang violence: promoting and executing better integration and social inclusion policies which are necessary to minimize social exclusion, and the threat of violent extremist agendas emanating from both Venezuelans and Trinidadians and generally to establish strong analytical framework grounded in stronger definitions, more reliable data and other evidence which can guide further research and analysis and contribute to policy formation.

Keywords: migration, violent extremism, gangs, Venezuela

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Authors: Khushboo Ejaz

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Community Resilience to Violent Extremism gain importance in the post 9/11 scenario. Resilience is a word that came from the engineering domain. Prior to 9/11, this word community resilience has been used in disasters and natural hazards. The literature on Community Resilience has been published in different multiethnic and multi-religious communities. There is less data and research done on Pakistan’s Community resilience experience. This research is a case study; how local community showed resilience against violent extremism of Tehrik-e-Taliban Swat in the wake of Operation Rah-e- Raast. Qualitative research based on interviews and focus group discussions from male and female groups of different Tehsils of Swat has been carried out to highlight the Community Resilience to Violent Extremism of Tehrik- e- Taliban and Tehrik- e- Nifaz- e -Shariat- e-Muhamadi (TNSM) .NVivo software has been used for data analysis and highlighting all factors of Community Resilience to Violent extremism (CRVE) in Swat . Recommendations has been made in the end to suggest Civil Society Organizations, NGOs and government departments in order to facilitate and enhance community resilience of tribal and rural areas affected by violent elements in Pakistan. This study will fill the gap in literature related to CRVE policies in Pakistani context.

Keywords: community resilience, operation Rah -e Raast, counter extremism, swat, Pakistan

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Authors: Mohammad Iqbal Maiik

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Islamic marketing ethics combines the principle of value maximization with the principles of equity and justice for the welfare of the society. Adherence to the Islamic ethics in the Islamic banking industry can help elevate the standards of both behavior and living of bankers and customers alike. In a rapidly changing marketing environment, the need to be customer-focused has never been as important as it is today. At present where customers are becoming more demanding and increasingly mobile between competing financial providers, being customer-focused is not enough. Islamic banks and more specifically their customer-contact employees (customer relation advisers or officers) need to be perceived by their customers as being Islamic. This study represents an initial step in analyzing the role of Islamic ethical sales behavior as it may be perceived by the customers of Islamic Banks.

Keywords: Islam, ethics, marketing, Islamic banks

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Authors: Mohammad Torabiyan, Kazem Mosawi Nejad

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Today architecture has become as a powerful media for introducing cultures to the world, which in turn brings about a change in the global insight, power gaining, investment and development. Islamic architecture is based on the language of Koran and shows the depth and richness of Islam through spiritual soul. This is in a way that belief in monotheism and faith in Islamic teachings are manifested as Islam's aesthetic thought in Islamic architecture. Unfortunately, Islamic architecture has been damaged a lot due to lack of necessary information and also successive wars which have overtaken the Muslims as well as the dominance of colonizing counties. Islamic architecture is rooted in the history, culture and civilization of Muslims but its deficiencies and shortcomings should be removed through systematizing the Islamic architecture researchers. Islamic countries should act in a way that the art of Islamic architecture shows its true place in different architecture eras and makes everybody aware that Islamic architecture has a historical root and is connected eternally to the genuineness, religious art and culture of Muslims and civilization.

Keywords: art, culture, civilization, Islamic architecture, Muslims

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Authors: Abul Shamsuddin

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The Islamic stock market indices are constructed by screening out stocks that are incompatible with Islam’s prohibition of interest and certain lines of business. This study examines the effects of Islamic screening on the risk-return characteristics of Islamic vis-a-vis mainstream equity portfolios. We use data on Dow Jones Islamic market indices and FTSE Global Islamic indices over 1993-2013. We observe that Islamic equity indices outperform their mainstream counterparts in both raw and risk-adjusted returns. In addition, Islamic equity indices are more resilient to turbulence in international markets than that of their mainstream counterparts. The findings are robust across a variety of portfolio performance measures.

Keywords: Dow Jones Islamic market index, FTSE global Islamic index, ethical investment, finance

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Authors: Mahmood Mohammed Abdulsattar Aljumaili

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Praise be to Allah and peace and blessings be upon the Messenger of Allah. Islamic banks have not only made a lot of great achievements in a short period, but they imposed themselves in the global market, not to mention the transformation of some conventional interest-based banks to Islamic banks to the large demand on them, this transformation has pushed the Dow Jones Global Foundation to develop a new economic indicator released it (the Dow Jones Islamic market) for those who wish to invest in Islamic financial institutions. The success of Islamic financial institutions today face significant and serious challenges, that embody the serious consequences created by the current events on Islamic banking industry. This modest study, deals with these serious challenges facing the Islamic banking industry, and reflected on the success recorded in the previous period. The study deals with four main topics: The emergence of Islamic banks, the goals of Islamic banks, International challenges facing Islamic banks, internal challenges facing Islamic banks, and finally it touches on, (Basel 1-2) Agreement and its implications for Islamic banks.

Keywords: Islamic banks, Basel 1-2 agreement, most important contemporary challenges, islamic banking industry, Dow Jones Islamic market

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Authors: John Hardy

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Over the last decade, the world has witnessed an unprecedented rise in the quality and availability of violent extremist propaganda. This phenomenon has been fueled primarily by three interrelated trends: rapid adoption of online content mediums by creators of violent extremist propaganda, increasing sophistication of violent extremist content production, and greater coordination of content and action across violent extremist organizations. In particular, the self-styled ‘Islamic State’ attracted widespread attention from its supporters and detractors alike by mixing shocking video and imagery content in with substantive ideological and political content. Although this practice was widely condemned for its brutality, it proved to be effective at engaging with a variety of international audiences and encouraging potential supporters to seek further information. The reasons for the noteworthy success of this kind of shock-value propaganda content remain unclear, despite many governments’ attempts to produce counterpropaganda. This study examines violent extremist propaganda distributed by five terrorist organizations between 2010 and 2016, using material released by the ‎Al Hayat Media Center of the Islamic State, Boko Haram, Al Qaeda, Al Qaeda in the Arabian Peninsula, and Al Qaeda in the Islamic Maghreb. The time period covers all issues of the infamous publications Inspire and Dabiq, as well as the most shocking video content released by the Islamic State and its affiliates. The study uses frame analysis to distinguish thematic from symbolic content in violent extremist propaganda by contrasting the ways that substantive ideology issues were framed against the use of symbols and violence to garner attention and to stylize propaganda. The results demonstrate that thematic content focuses significantly on diagnostic frames, which explain violent extremist groups’ causes, and prognostic frames, which propose solutions to addressing or rectifying the cause shared by groups and their sympathizers. Conversely, symbolic violence is primarily stylistic and rarely linked to thematic issues or motivational framing. Frame analysis provides a useful preliminary tool in disentangling substantive ideological and political content from stylistic brutality in violent extremist propaganda. This provides governments and researchers a method for better understanding the framing and content used to design narratives and propaganda materials used to promote violent extremism around the world. Increased capacity to process and understand violent extremist narratives will further enable governments and non-governmental organizations to develop effective counternarratives which promote non-violent solutions to extremists’ grievances.

Keywords: countering violent extremism, counternarratives, frame analysis, propaganda, terrorism, violent extremism

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Authors: Shaibu Ali, Sherif Heiman Shaban, Musah Ismaila, Imoro Alhassan, Yusif Ali

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Purpose: Islamic banking and finance is one of the most rapidly growing segments of the global finance industry. Starting with the Dubai Islamic Bank in 1975, the number of Islamic financial institutions worldwide has shot up astronomically, to over three hundred, with operations in seventy-five countries and assets in excess of US$400 billion. The purpose of this study is to explore the prospects and challenges of Islamic banking introduction in a non-Islamic country like Ghana. Design/Methodology: Data for the study was collected via an expert opinion of three Islamic scholars on Islamic banking from Ghana. Findings: Findings from this study indicates some of the benefits of Islamic banking includes connecting financial markets and economic activity, promoting the principle of financial justice, greater stability, avoiding economic bubbles (and bursts) and reducing the impact of harmful products and practices. The study also identified lack of experts in various fields of Islamic banking, product innovation, moral hazard, and need for experienced staff in Islamic banking as some of the challenges to Islamic banking system’s introduction. Contribution: The study contributes to literature on Islamic banking from a non-Islamic country like Ghana.

Keywords: Islamic banking, Shari’ah, Riba, conventional banking

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Authors: Mahfoud Djebbar

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The past two decades or so have witnessed phenomenal growth of the Islamic financial services industry. The whole industry has been thriving at about 15 percent per annum. This development entails the Islamic financial engineering, IFE, to some kind of crossroads, lagging behind its conventional counterpart. Therefore, IFE, and particularly traded products development, and in order to achieve its goals, two approaches are available, i.e., replicating engineering and innovative engineering. We also try to emphasis the innovative strategy since it guards the Islamic identity of different financial products and processes, and thereby, improves the creativity in the Islamic financial industry. The attempt also centers on sukukization (Islamic securitization), innovation, liquidity management, and risk management and hedging in the Islamic financial system. Finally, the challenges facing IFE are also addressed.

Keywords: islamic financial engineering, hedging and risk management, innovation, securitization, money market instruments, islamic capital markets

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Authors: Mohamed Saad Ahmed Hussien

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This paper discusses the risk management in Islamic banks and aims to determine the difference in the practices and methods of risk management in those banks compared to the conventional banks, and to make a case study of the biggest Islamic bank in Egypt (Faisal Islamic Bank of Egypt) to identify the most important financial risks faced and how to manage those risks. It was found that Islamic banks face two types of risks. The first type is similar to the risks in conventional banks; the second type is the additional risks which facing the Islamic banks only as a result of some Islamic modes of financing. With regard to the risk management, Islamic banks such as conventional banks applied the regulatory rules issued by the Central Banks and the Basel Committee; Islamic banks also applied the instructions and procedures issued by the Islamic Financial Services Board (IFSB). Also, Islamic banks are similar to the conventional banks in the practices and methods which they use to manage the risks. And there are some factors that may affect the risk management in Islamic banks, such as the size of the bank and the efficiency of the administration and the staff of the bank.

Keywords: conventional banks, Faisal Islamic Bank of Egypt, Islamic banks, risk management

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Authors: Mohd Yazid M. Yunos, R. Arinah, Nor Kalsum M. Isa, U. Nangkula, Nor A. Ismail, Nor F. Ariffin

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Islamic City planning is a concept of optimizing the overall arrangement of land use without compromising community. The concept was influenced by the specific intentions in mind, applying certain ideological principles and objectives rooted in Islamic faith and Muslim culture using distinct design elements. Holy Quran and hadiths provide a foundation for understanding Islamic Principles as clearly shared by the established Islamic Cities such as Medina, Mecca and Jerusalem. This paper aimed to explore the principles and elements of an Islamic City through the review of relevant literature by the means of Content Analysis method. A theoretical framework of Islamic City Principles was then formulated to be the main outcome of the study. The finding is very important to be a useful starting point for future study, especially for formulating a clear guide for the development of upcoming Islamic City in Malaysia.

Keywords: Islamic principles, sustainable city planning, Islamic city, Malaysia

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Authors: Camille Paldi

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As the Islamic finance industry is growing annually at a rate of 10% to 15% per year, it is imperative that a unique, independent legal framework is established in order to effectively adjudicate Islamic finance disputes. Currently, Islamic finance disputes are being adjudicated in inadequate civil and common law courts and arbitration centers where the contracts in dispute are being transformed from Islamic to conventional transactions. Through case analysis combined with an exploration of the efficacy of existing arbitration centers and dispute resolution methods available to Islamic finance, this paper will seek to reveal that the Islamic finance industry currently lacks an adequate dispute resolution mechanism and facility to adjudicate disputes arising from Islamic finance contracts. Hence, now is the time for the Dubai World Islamic Finance Arbitration Center (DWIFAC) and Jurisprudence Office (DWIFACJO) as the Dispute Resolution Center and Mechanism for the Islamic Finance Industry.

Keywords: Islamic finance, dispute resolution, Dubai world Islamic finance arbitration center, jurisprudence office

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Authors: Tasawar Nawaz

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Promotion of socioeconomic justice through redistribution of wealth is one of the most salient features of Islamic economic system. Islamic financial institutions known as Islamic banks are used to implement this in practice under the guidelines of Islamic Shariah law. Islamic banking systems strive to promote and achieve financial inclusion among the society by offering interest-free banking and risk-sharing financing solutions. Shariah-compliant micro finance is one of the most popular financial instruments used by Islamic banks to enhance access to finance. Benevolent loan (or Qard-al-Hassanah) is one of the popular financial tools used by the Islamic banks to promote financial inclusion. This aspect of Islamic banking is empirically examined in this paper with specific reference to firm’s resources, largely defined here as intellectual capital. The paper finds that Islamic banks promote financial inclusion by exploiting available resources especially, the human intellectual capital.

Keywords: financial inclusion, intellectual capital, Qard-al-Hassanah, Islamic banking

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Authors: Zareen Khan

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Islamic Banking has experienced high growth in Pakistan in recent years and has successfully survived the economic downturn of 2009-2011. Despite the increase in branch network and expansion of services, it is unclear if Islamic banks are truly following the theory and practical application of Shariah Law. This paper explores the theological basis of Islamic finance and examines the discrepancies between the theory and practice of Islamic banking using Pakistan as a case study. It discusses areas where Islamic banks lack proper Shariah compliance and analyzes the financial weaknesses of Islamic banks in terms of the services offered. Furthermore, the paper offers plausible explanations for the clientele of Islamic banks. The case study has three major findings. Firstly, most of the employees of Islamic banks come from conventional banking backgrounds and the banks have to invest in additional trainings to specialize employees in Islamic Banking. Secondly despite the efforts of State Bank of Pakistan, there is a lack of accounting and auditing standards tailored for Islamic Banking. Thirdly, majority of the clients of Islamic banks in Pakistan are accustomed to conventional banking causing the bankers to “speak the conventional banking language.” Combined, these three factors can create gaps in the practical application of Islamic finance in Islamic banks in Pakistan.

Keywords: islamic finance, comparing theory with practice, islamic banking, Pakistan

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Authors: Safiyya A. Abba, Shehu U. R. Aliyu

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This paper deals with Islamic social security: a discourse explores the meaning and nature of Islamic social security system. The paper reviews the social security framework and operations during the early period. The paper further identifies the instruments of Islamic social security discusses its principles and objectives. The paper discovers that Islamic social security is a personification of a comprehensive welfare approach in view of its varied instruments that are deeply rooted in the Islamic law, unique principles and realistic and achievable objectives. Furthermore, the Islamic social security system has far reaching socioeconomic implications; social justice, cohesion, equity, a catalyst for poverty eradication, income redistribution, economic growth and development.

Keywords: Islamic social security, basic needs, zakat, socioeconomic justice, equity

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Authors: Mohd Adib Abd Muin

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Social entrepreneurship has become a new phenomenon in a country in order to reduce social problems and eradicate poverty communities. However, the study based on Islamic social entrepreneurship from the social entrepreneurial activity is still new especially in the Islamic perspective. In addition, this research found that is lacking of model on social entrepreneurship that focus on Islamic perspective. Therefore, the objective of this paper is to identify the issues and research gap based on Islamic perspective from existing models and to develop a concept of Islamic social entrepreneurship according to Islamic perspective and Maqasid Shari’ah. The research method used in this study is literature review and comparative analysis from 11 existing models of social entrepreneurship. The research finding shows that 11 existing models on social entrepreneurship has been analyzed and it shows that the existing models on social entrepreneurship do not emphasize on Islamic perspective.

Keywords: component, social entrepreneurship, Islamic perspective, research gap

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Authors: Ahmad Abdulkadir Ibrahim

Abstract:

Observation of the methodology of Islamic economics laid down for the methods and instruments of analysis and even some of its basic assumptions in the modern world; is a matter that is of paramount importance. There is a need to examine the implications of different suggested definitions of Islamic economics, exploring its scope and attempting to outline its methodology. This paper attempts to deal with the definition of Islamic economics, its methodology, and its scope. It will outline the main methodological problem by addressing the question of whether Islamic economics calls for a methodology of its own or as an expanded economics. It also aims at drawing the attention of economists in the modern world to the obligation and consideration of the methodology of Islamic economics. The methodology adopted in this research is library research through the consultation of relevant literature, which focuses on the thematic study of the subject matter. This is followed by an analysis and discussion of the contents of the materials used. It is concluded that there is a certain degree of inconsistency in the way assumptions are incorporated that perhaps are alien to Islamic economics. The paper also observed that there is a difference between Islamic economists and other (conventional) economists in the profession. An important conclusion is that Islamic economists need to rethink what economics is all about and whether we really have to create an alternative to economics in the form of Islamic economics or simply have an Islamic perspective of the same discipline.

Keywords: methodology, Islamic economics, conventional economics, Muslim economists, framework, knowledge

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