scholarly journals Methodology of integrated knowledge in Islamic economics and finance: collective ijtihād

2020 ◽  
Vol 12 (1) ◽  
pp. 115-129
Author(s):  
Ildus Rafikov ◽  
Elmira Akhmetova
Keyword(s):  
Social Sciences ◽  
Design Methodology ◽  
Islamic Finance ◽  
International Institute ◽  
Content Type ◽  
Practical Applications ◽  
Existing Problems ◽  
Islamic Thought ◽  
Practical Implications ◽  
Integrated Knowledge

Purpose The purpose of this paper is to discuss the methodology of integrated knowledge in Islamic economics and finance and seek to offer collective ijtihād as one way to find solutions to the existing problems in the field. Design/methodology/approach The study is based on the idea of multidisciplinarity or interdisciplinarity, which uses not only traditional sources of Islam and economics, such as uṣūl al-fiqh, fiqh mu’amalat, econometrics, statistics, microeconomics and macroeconomics but also looks into behavioural and natural sciences for inspiration and solutions. This paper is constructed using the methodology of “the two readings”, as promoted by the International Institute of Islamic Thought, and which combines the revealed and the existential sciences. Findings This paper proposes the collaborative multidisciplinary methodology as the main approach to studying the modern problems and challenges, as well as for finding solutions in the fields of Islamic economics and finance. Practical implications Studying and researching issues, particularly in the field of Islamic economics and finance, from an interdisciplinary perspective, effectively broadens practical applications and possibilities in Islamic finance. Originality/value This paper contributes to social sciences, especially the field of Islamic finance, and calls upon researchers to engage in multidisciplinary studies.

scholarly journals The concept and application of ḍamān al-milkiyyah (ownership risk)

2017 ◽  
Vol 9 (2) ◽  
pp. 148-163 ◽  
Author(s):  
Lutfi Abdul Razak ◽  
Muhammad Nabil Saupi
Keyword(s):  
Design Methodology ◽  
Islamic Law ◽  
Content Type ◽  
Practical Applications ◽  
For Profit ◽  
Descriptive Research ◽  
Financial Products ◽  
Financial Transactions ◽  
Practical Implications

Purpose The purpose of this paper is to elucidate the concept of ḍamān al-milkiyyah (ownership risk) and to assess its application in contemporary Islamic financial products and services. Design/methodology/approach The methodology adopted is that of descriptive research. Findings From an Islamic law of contract perspective, the concept of ḍamān al-milkiyyah is central to legitimate profit-making transactions and hence must be adhered to in practical applications of Islamic finance. Research limitations/implications This study should help motivate further investigation into the position of ḍamān al-milkiyyah among different parties in existing Islamic financial products and services. Practical implications Policymakers and regulators should ensure that Islamic financial products and services are structured in a way that does not allow parties to profit without adequately bearing the liability for potential loss. Social implications The condition of ḍamān al-milkiyyah as a source of legitimate profit reflects the idea that the role of finance in Islam is to promote and ensure social benefits. Originality/value This paper emphasizes the importance of ḍamān al-milkiyyah as a fundamental condition for profit in Islamic financial transactions.

Therapy with exonerated clients: review and recommendations

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kirk Heilbrun ◽  
Sarah Fishel ◽  
Claire Lankford ◽  
Mina Ratkalkar
Keyword(s):  
Mental Health ◽  
Design Methodology ◽  
Health Needs ◽  
Therapeutic Interventions ◽  
Mental Health Needs ◽  
Treatment Interventions ◽  
Content Type ◽  
Practical Applications ◽  
Structured Approach ◽  
Practical Implications

Purpose The conviction of innocent individuals has emerged as an international concern, resulting in substantial attention to the legal needs that stem from exoneration. However, many other challenges can also arise in the aftermath of an exoneration, including financial, psychosocial and mental health needs. Relatively little has been written about the particular reentry needs of individuals who are exonerated of their charges, and even fewer studies have considered the effectiveness of various treatment approaches. The purpose of this paper is to reviews the available literature, identifies gaps and provides clinical recommendations for the development of treatment interventions for exonerees. Design/methodology/approach The research addressing the needs and challenges that arise in the aftermath of exoneration is reviewed and analysed for implications that can guide treatment-planning in this area. Findings This paper reviews key finds from the literature and provides recommendations for developing a semi-structured approach to treating exonerees. Practical implications Practical applications for the development of effective therapeutic interventions for exonerated individuals are identified and discussed. Originality/value Currently, there is very limited literature addressing the specific reentry needs and effective therapeutic interventions for exonerated individuals.

Consistency, continuity and stability – organizational virtues or not?

2012 ◽  
Vol 33 (4) ◽  
pp. 166-174 ◽  
Author(s):  
Peter Holmes ◽  
Susan Williams
Keyword(s):  
Social Sciences ◽  
Design Methodology ◽  
Stability Control ◽  
Positive Outcomes ◽  
Content Type ◽  
The Social ◽  
Business Setting ◽  
Sociological Approaches ◽  
Practical Implications ◽  
Organisational Level

PurposeThe purpose of this paper is to propose that some level of disorder in daily life can be of benefit. The article aims to draw from recent ideas suggesting that chaos in a business setting has the potential to yield rich gains, and consider how these might be applied to a therapeutic community (TC) setting.Design/methodology/approachThe authors combine sociological approaches with trends in commercial contexts to reflect on the potential implications for TC environments.FindingsThe instinctive quest for stability, control and continuity is suggested to run counter to the need for change at an organisational level. Chaos can be considered as both disorder and hidden order, each creating opportunities for positive change through a chaordic process. It is suggested that TCs are well‐suited to embrace the relational dynamic required, if they are willing to engage in this chaos organisationally.Practical implicationsThe article has a very serious and far‐reaching range of implications for TC life, in suggesting that at an organisational level TC processes should be designed to accommodate the chaordic process. Rather than the TC simply being a container in which therapeutic change happens, it is proposed that the TC itself can undergo a dynamic of discontinuous change that brings additional benefit to its members.Originality/valueThis article is intentionally interdisciplinary, embracing thinking from the social sciences, especially sociology, as well as recent examples from business and organisational theory. In bringing some of these ideas into TC life the authors are also drawing on their own research and findings from founding and running a TC, observing on numerous occasions the positive outcomes following times of chaos, disorder and upheaval in the lives of clients and the TC.

scholarly journals Cash Waqf risk management and perpetuity restriction conundrum

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Azniza Hartini Azrai Azaimi Ambrose ◽  
Fadhilah Abdullah Asuhaimi
Keyword(s):  
Risk Management ◽  
Design Methodology ◽  
Islamic Finance ◽  
Natural Occurrence ◽  
Journal Articles ◽  
Content Type ◽  
Risk Return ◽  
Restriction Principle ◽  
Standard Operating ◽  
Practical Implications

Purpose The purpose of this paper is to comprehensively discuss the issue of risk vis-à-vis the perpetuity restriction principle inherent in waqf (Islamic endowment). Specifically, it attempts to consolidate the axioms in both conventional and Islamic finance, such as the risk-return trade-off and al-ghunm bi al-ghurm (liability accompanies gain), with the perpetual nature of waqf. Overall, this paper attempts to find a resolution to the dilemma of perpetuity restriction inherent in cash waqf against the natural occurrence of the risk. Design/methodology/approach This paper is based on the secondary research methodology; past literature encompassing journal articles, books, relevant financial axioms, fatwas (Islamic rulings) and state enactments is critically reviewed to present its case. In regard to state enactments, only Malaysian state enactments have been used, thus restricting the study to the Malaysian case only. Findings This study contends that the dilemma of the perpetuity restriction and the natural occurrence of risk can be resolved through the integration of waqf risk management, especially concerning cash waqf, with the Islamic spiritual approach. By implementing standard operating procedures that inculcate awareness on waqf risk management and Islamic spirituality in waqf stakeholders (waqif (donor), trustee and beneficiaries), the stakeholders may accept the reality of risk that is inevitable even after all efforts have been exhausted. In other words, the violation of perpetuity is exonerated given that mental faculties aligned with revealed texts have been exhaustively used beforehand. Practical implications Findings from this study may broaden the choice of investment avenues for waqf trustees while adhering to the perpetual restriction of waqf. More importantly, waqf trustees will not be forced to invest in interest-bearing securities or be involved in any usurious transactions just to obtain guaranteed returns and preserve the corpus of waqf. Originality/value This study offers a unique perspective on cash waqf risk management by re-analyzing the axioms and concepts of finance and waqf while observing the welfare of the beneficiaries.

Shari’ah-compliant benchmark and Shari’ah-based “raf’ al-haraj” benchmark on prohibition of riba

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yasushi Suzuki ◽  
Mohammad Dulal Miah
Keyword(s):  
Design Methodology ◽  
Institutional Economics ◽  
Islamic Finance ◽  
Practical Relevance ◽  
Islamic Banks ◽  
Procedural Rationality ◽  
Content Type ◽  
Financial Transaction ◽  
Clear Cut ◽  
Practical Implications

Purpose This paper aims to propose two benchmarks “Shari’ah-compliant” benchmark and “Shari’ah-based” “raf’ al-haraj” (the removal of hardship) benchmark. The former benchmark can be applied to ensure that a transaction brings “profits on sales” and not “profits on loan”, and the latter benchmark should be addressed to ensure that a transaction does not exploit the customers of Islamic banks. Design/methodology/approach The authors draw upon the theory of institutional economics, in particular, instrumental and procedural rationality, to argue that the believers can pay their best effort as an exercise of ijtihad to understand and incarnate the logic and rationales implicit in the Qur’anic text. Findings Currently, there is no benchmark that determines the profit ceiling on murabaha. The authors suggest two types of “gray-zones” – the “Shari’ah-compliant but less contributing to the removal of hardship” and the “controversial on compliance but contributing to the removal of hardship in borrowers” to use as a benchmark in endorsing less shariah-compliant Islamic products. Practical implications There is no benchmark or a clear-cut demarcation that can be used to endorse less Shari’ah-compliant Islamic finance. Thus, Shari’ah-compliant’ benchmark and “Shari’ah-based” “raf’ al- haraj” benchmarks can be used to guide whether a financial transaction is acceptable or not. This guideline can be of huge practical relevance for Islamic finance. Originality/value There is no sensible study that offers such guidelines that can be used to demarcate whether a particular financial transaction, which has no clear-cut fatwa, is acceptable or not. Hence, the current research is novel and contributes to the existing literature of Islamic finance.

The substance and form of Islamic Finance instruments: an accounting perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Ebrahim ◽  
Tarek Abdelfattah
Keyword(s):  
Theoretical Analysis ◽  
Conceptual Framework ◽  
Design Methodology ◽  
Islamic Finance ◽  
Content Type ◽  
Modern Economy ◽  
Analytical Review ◽  
Comprehensive Framework ◽  
Industry Needs ◽  
Practical Implications

Purpose This study aims to critically analyze the fundamentals of the current major Islamic Finance (IF) instruments and contracts in light of both the foundations of IF and the concept of substance over form in the accounting conceptual framework. Such analysis is believed to be necessarily for the IF institutions to provide better and more genuine service to their customers. Design/methodology/approach To achieve the study purpose, the methodology is based on theoretical analysis and analytical review of the major IF contracts. Findings The IF industry needs to focus on the economic substance of the products offered to their clients. In developing and promoting their products, IF institutions need to focus on the ultimate and substantial goals of Islamic Sharia rather than re-packaging existing conventional products under different arrangements and formats to make them appear as Sharia-compliant to their clients. Both religious scholars and IF professionals need to engage in much deeper analysis and understanding of the substantial design of IF instruments and the concept of usury in modern economy. Research limitations/implications This paper does not intend to develop a comprehensive framework for the design of IF instruments to meet the economic substance and ultimate goals of IF principles or measure such economic substance. However, that is definitely a subject for further research. Originality/value By applying concepts like substance over form from other business fields such as the accounting theoretical framework to the IF instruments and contracts, we should gain better understanding and practical implications of these instruments and figure out ways to improve their design to be more consistent with and better serve the ultimate goals of the Islamic Sharia.

An analysis of the normative parameters of reward and risk in Islamic finance

2020 ◽  
Vol 12 (3) ◽  
pp. 303-323
Author(s):  
Mohamed Benaicha
Keyword(s):  
Design Methodology ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Content Type ◽  
Academic Literature ◽  
Finance Industry ◽  
Risk Principle ◽  
Descriptive Approach ◽  
Practical Implications

Purpose This study aims to define the parameters of the reward-risk principle in Islamic finance as established in the literature and discuss propositions that are presented on how such a principle is to be applied to Islamic banking products. Design/methodology/approach A descriptive approach is used to explore the normative parameters and criticisms of the application of reward-risk in Islamic finance. Findings The study finds that the principle of reward-risk is embodied in the multi-component concept of ʿiwaḍ (counter value) which must be evident in market transactions that involve commercial exchanges. The components include risk, costs, effort, value-adding and capital, all of which apply uniquely to different contractual forms of financing. Research limitations/implications The study uses academic literature and industry documents along with modest contact with prominent practitioners who provided general feedback on prevalent Islamic finance industry practices. Practical implications This study exposits the variety of approaches in applying the reward-risk principle and sheds light on the primary elements of the principle which will facilitate its greater consideration by the Islamic finance industry. Originality/value This study is a meaningful attempt at conveniently summing up and applying the parameters that are considered when discussing the scope of the reward-risk principle in Islamic finance.

Instruments for investment protection when structuring Islamic venture capital

2020 ◽  
Vol 11 (9) ◽  
pp. 1907-1920
Author(s):  
Abdul-Jalil Ibrahim ◽  
Monzer Kahf
Keyword(s):  
Venture Capital ◽  
Design Methodology ◽  
Secondary Data ◽  
Financial Inclusion ◽  
Islamic Finance ◽  
Content Type ◽  
Investment Protection ◽  
Potential Value ◽  
New Ideas ◽  
Practical Implications

Purpose This paper aims to explore how Sharīʿah-compliant instruments can be used to protect investments and attract investors to Islamic venture capital (IVC). Equity investments in Islamic finance are trailing behind their potential value. This is partly due to the limited instruments available to protect investors, as most of the tools used in conventional venture capital (VC) are deemed Sharīʿah non-compliant. Design/methodology/approach The research amends and uses Wright Robbie’s (1998) VC structure and how it can be used to finance small and medium-sized enterprises (SMEs). The study uses secondary data reported in the literature and the expertise of the Sharīʿah scholarship. Findings There are Sharīʿah-compliant instruments available for IVC that can be used to protect investments and incentivize potential investors to promote investments in SMEs. At the various stages of the IVC process, preference shares, perpetual mudharabah, diminishing musharakah, musharakah with murabahah, musharakah with qard, negligence clauses, liquidation preference, warrants and supermajority clauses can all be used with appropriate conditions to protect investors and offer incentives for them to invest in IVC. Practical implications The research provides a method for screening and evaluating potential deals for SMEs using an amended VC called an IVC scheme with a focus on Sharīʿah-compliant investment protection instruments. The method can promote SMEs and entrepreneurship and financial inclusion for Sharīʿah-compliant investors. Originality/value This study contributes new ideas to how IVC can be structured, taking into consideration Sharīʿah constraints. The paper addresses investors’ protection and incentives to attract Sharīʿah-compliant investors, which have been lacking in the literature.

Humanistic perspectives in virtual reference

2017 ◽  
Vol 66 (8/9) ◽  
pp. 695-710 ◽  
Author(s):  
Adolfo G. Prieto
Keyword(s):  
Emotional Intelligence ◽  
Future Study ◽  
Design Methodology ◽  
Multidisciplinary Approach ◽  
Relevant Literature ◽  
Background Information ◽  
Virtual Reference ◽  
Content Type ◽  
Practical Applications ◽  
Practical Implications

Purpose Virtual reference is a part of the services offered at academic and other types of libraries. This paper discusses humanistic perspectives that merit consideration in the provision of virtual reference (VR), including mindfulness, authenticity, emotional intelligence (EI) and counseling. This study aims to make these perspectives become a part of the language and practice of virtual reference through this discussion. Design/methodology/approach The paper establishes a framework for the VR perspectives it discusses by examining relevant literature for background information and practical applications. Findings VR has the potential to benefit from the interrelated humanistic perspectives of mindfulness, authenticity, EI and counseling. It is through the counseling perspective that mindfulness, authenticity and EI are embodied to offer a more transformational and less transactional experience for both librarians and users. Research limitations/implications While the paper provides examples of language used by the author to illustrate the counseling perspective, a future study, whereby virtual reference transcripts are formally analyzed, may be beneficial to determine other expressions of counseling and its related perspectives of mindfulness, authenticity and EI. Practical implications This paper provides a resource especially helpful to individuals new to VR or who seek opportunities for growth in providing VR. Originality/value In addition to taking a multifaceted view of VR through the humanistic perspectives presented, this paper also offers a multidisciplinary approach in its discussion, drawing from areas such as business and medicine.

Heritage inventories: promoting effectiveness as a vital tool for sustainable heritage management

2016 ◽  
Vol 6 (2) ◽  
pp. 102-112 ◽  
Author(s):  
David Myers
Keyword(s):  
Design Methodology ◽  
Heritage Management ◽  
Heritage Conservation ◽  
Data Standards ◽  
Content Type ◽  
Practical Applications ◽  
Cultural Heritage Conservation ◽  
Heritage Legislation ◽  
Practical Implications

Purpose – The purpose of this paper is to identify key elements of what makes an inventory program effective for cultural heritage conservation and management. It is hoped that it will spur discussion among heritage professionals about increasing the effectiveness of inventory programs. Design/methodology/approach – This paper reflects on more than a decade of experience with the establishment of heritage surveys and inventories at national and citywide scales in the Middle East and North America, and through site-based heritage management projects. In addition, it reflects on engagement with international professionals involved with heritage inventories. Findings – Heritage inventories are permanent, ongoing records that require long-term institutional resource commitments. To be effective for heritage management, inventory programs should be established with links to heritage legislation, built upon data standards, and maintain dedicated personnel, programs of activity, and systems on an ongoing basis. Inventories are fundamentally different than heritage surveys, or other data collection activities, which collect information within a specific timeframe. Practical implications – The findings are based on engagement with real-world, practical applications. It is hoped that the recommendations included will be useful to professionals working in heritage institutions that are establishing inventory programs, or seeking to modernize, invigorate, or increase the effectiveness of their inventory programs. Originality/value – This paper presents insights gained through engagement with a large number and variety of heritage inventory and survey programs and projects from across the world, reflecting on broad trends and patterns.

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