scholarly journals Sharīʿah governance and agency dynamics of Islamic banking operations in the Kingdom of Saudi Arabia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abul Hassan ◽  
M. Sadiq Sohail ◽  
Md Mahfuzur Rahaman Munshi
Keyword(s):  
Corporate Governance ◽  
Saudi Arabia ◽  
Agency Theory ◽  
Islamic Law ◽  
The Body ◽  
Islamic Banking ◽  
Gulf Region ◽  
Kingdom Of Saudi Arabia ◽  
Content Type ◽  
Banking Operations

PurposeThis study aims to investigate and point out the variations of agency theory in the context of Sharīʿah governance in Islamic banking operations in the Kingdom of Saudi Arabia (KSA).Design/methodology/approachThe study followed the approach of quantitative Corporate Governance Index (CGI) by computing the Gov-index (Gompers et al., 2003) and the Gov-score (Brown and Caylor, 2004; Saffieddine, 2009) to examine corporate governance (CG) issues using primary as well as secondary data. The primary data was generated from three full-fledged Islamic banks (IBs) and nine traditional banks with Islamic banking wings, all operating in the KSA. The approach was to provide an insight into the agency structure in the context of Islamic banking, which may lead to a trade-off between the conformity of Sharīʿah (Islamic law) rules and processes followed in safeguarding the rights of investors.FindingsThe majority of the Islamic banking services that are surveyed in this study acknowledge the significance of Sharīʿah governance and have implemented the fundamental methods, in conformity with this system. Certain flaws in Sharīʿah governance principles pertaining to audit, control and transparency are reported.Practical implicationsThe research outcomes will be invaluable to IBs aiming to improve existing SG practices. It also has implications for IB managers to design strategies while complying with regulations and to protect the interests of all investors without breaching the ethics of Sharīʿah.Originality/valueThis paper adds original value to the body of knowledge on agency relationship by analysing the dynamics of agency theory in the unique and complex context of Sharīʿah governance of IBs or those offering Islamic products in the KSA. The results can be used as a valuable feedback for improvement of Sharīʿah governance in the banking system in the KSA and the Gulf region at large.

scholarly journals Barriers to implementing lean construction practices in the Kingdom of Saudi Arabia (KSA) construction industry

2018 ◽  
Vol 18 (2) ◽  
pp. 246-272 ◽  
Author(s):  
Jamil Sarhan ◽  
Bo Xia ◽  
Sabrina Fawzia ◽  
Azharul Karim ◽  
Ayokunle Olanipekun
Keyword(s):  
Saudi Arabia ◽  
Construction Industry ◽  
Lean Construction ◽  
The Body ◽  
Item Score ◽  
Kingdom Of Saudi Arabia ◽  
Cultural Economic ◽  
Convenience Sample ◽  
Content Type ◽  
Principal Factors

Purpose The purpose of this paper is to identify the barriers to implementing lean construction in the Kingdom of Saudi Arabia (KSA) construction industry and to prioritise the principal factors that constitute these barriers. Design/methodology/approach A literature review was initially used to reveal the global barriers to implementing lean construction. Subsequently, these barriers were incorporated into a structured questionnaire, and a convenience sample of 282 construction professionals in the KSA construction industry was surveyed. The results were analysed using mean item score (MIS), Mann–Whitney U test and principal component analysis (PCA). Findings The findings revealed 22 barriers to lean construction implementation in the KSA construction industry. Principal factors that constitute these barriers were found to be traditional practices, client related, technological, performance and knowledge and cost-related barriers in descending order of pervasiveness. The study also proposes solutions to overcome these principal barriers. Originality/value This study provides a global overview of the barriers to implementing lean construction. It contributes to the body of knowledge, as it uncovers for the first time the barriers to implementing lean construction in the KSA construction industry with reference to the socio-cultural, economic and operational context of the KSA. Thus, it is relevant to other countries in the Middle East because of their shared similarities to the KSA. Furthermore, the solutions proposed to overcome these barriers in the KSA construction industry can be applied in other countries where similar barriers are identified.

scholarly journals The relationship between agency theory, stakeholder theory and Shariah supervisory board in Islamic banking

Humanomics ◽  
2017 ◽  
Vol 33 (1) ◽  
pp. 75-83 ◽  
Author(s):  
Sulaiman Abdullah Saif Al-Nasser Mohammed ◽  
Joriah Muhammed
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Stakeholder Theory ◽  
Supervisory Board ◽  
Theoretical Background ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Perspective ◽  
The Difference

Purpose In relation to the critical problem, this paper aims to present an understanding of the agency theory and the stakeholder theory from the perspective of the Islamic principles. Indeed, a thorough examination of the theoretical background explaining corporate governance from the Islamic perspective is necessary to conduct research analysing corporate governance in Islamic banks. Design/methodology/approach The authors followed a critical review discussion; this method takes into consideration presenting important theories and comparing those theories with Islamic perspective. Findings The authors presented important arguments on the difference between ordinary theories to explaining corporate governance and Islamic perspective. The paper browsed into whether the Shariah Supervisory Board is a fit with the agency theory by explaining the agency theory and how it differs from the Islamic banking concepts. The paper involved an analytical review on stakeholder theory and presented a critique and the rationale as to why there is ample room for the Shariah Supervisory Board to be considered a fit with the stakeholder theory, as the Shariah Supervisory Board is an independent body influencing the firm. Originality/value The paper is of important value to those conducting research in the area of governance in Islamic banks; they may find it beneficial in terms of underlining theory building their research framework.

Shari'ah corporate governance: the need for a special governance code

2014 ◽  
Vol 14 (1) ◽  
pp. 120-129 ◽  
Author(s):  
Aishath Muneeza ◽  
Rusni Hassan
Keyword(s):  
Corporate Governance ◽  
Islamic Law ◽  
Good Governance ◽  
Banking System ◽  
Governance Structure ◽  
Islamic Banking ◽  
Content Type ◽  
The World ◽  
Islamic Financial Institutions ◽  
Islamic Companies

Purpose – With the advent of Islamic banking, a new species was added to the banking system which was then, only dominated by the conventional banking. Islamic banking expanded in the world within the last decade and as a result, Islamic finance emerged as an alternative to the conventional finance. This created Islamic companies and Islamic financial institutions which operate based on the principles of Shari'ah or Islamic Law. These Islamic corporate bodies, like the conventional corporate bodies do need good governance rules. In other words, they also need a good, sophisticated “Shari'ah Governance Code” which would be based on the principle of Islamic Law. This is mainly because the objective of the conventional and the Islamic Corporate governance is different as conventional corporate governance structure is more focused on the protection of the rights of the stakeholders; while Islamic corporate governance focus on retaining the Islamicity of whole corporation. The objective of this research is, as the title suggests, proposing the reasons why a special governance Code for Shari'ah corporate bodies are needed. This paper would suggest a proper governance structure to the Islamic companies and will also discuss why the conventional corporate governance Codes are unsuitable for the Islamic companies. Design/methodology/approach – This research which is primarily library based, is an exploratory legal research in nature. Findings – In the course of this research, it is found that there is a need to enact a Shari'ah Corporate Governance Code due to the widespread establishment of shari'ah compliant companies in the world. Hence, the authors had discussed the potential content of such a Code in this paper. Originality/value – This research will complement the knowledge based on shari'ah corporate governance and is targeted to the existing and prospective shari'ah compliant companies.

scholarly journals Stewardship theory: is board accountability necessary?

2017 ◽  
Vol 59 (6) ◽  
pp. 1292-1314 ◽  
Author(s):  
Andrew Keay
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Design Methodology ◽  
Agency Problems ◽  
Stewardship Theory ◽  
Content Type ◽  
General Terms ◽  
Practical Implications

Purpose The purpose of the paper is to demonstrate that notwithstanding the fact that stewardship theory embraces things like trust of directors, their professionalism, loyalty and willingness to be concerned for the interests of others, as well as rejecting the foundations of classic agency problems that are asserted by agency theory, board accountability is as relevant to stewardship theory as it is to agency theory. Design/methodology/approach The paper applies the theory underlying board accountability in corporate governance, which is so often applied both in the corporate governance literature and in practice with agency theory in mind, to stewardship theory. Findings While the idea of accountability of boards is generally associated with an explanation and conceptualisation of the role and behaviour of directors as agents within classic agency theory, the paper demonstrates that board accountability is a necessary part of board life even if the role of directors is explained and conceptualised in terms of stewardship theory. Practical implications The paper suggests some accountability mechanisms that might be employed in a stewardship approach. Originality/value While many authors have talked in general terms about board accountability and its importance, this is the first paper that has engaged in a substantial study that links board accountability directly with stewardship theory, and to establish that accountability is necessary.

The effect of external factors in use of technology among Ha’il university academic faculty: evidence from Saudi Arabia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imran Khan ◽  
Najmonnisa Khan ◽  
Fawaz Jazim ◽  
Yaser Hasan Al-Mamary ◽  
Mohammed Abdulrab ◽  
...  
Keyword(s):  
Saudi Arabia ◽  
Public Sector ◽  
Administrative Support ◽  
Technical Support ◽  
External Factors ◽  
Teaching Staff ◽  
Kingdom Of Saudi Arabia ◽  
Content Type ◽  
Support Organization ◽  
Use Of Technology

PurposeThe purpose of this paper is to explore external factors: organization technical support, organization administrative support, organization infrastructure and resources, and organization ICT policy’s effect on the commitment in use of technology among the faculty staff Hail university, Saudi Arabia.Design/methodology/approachA cross-sectional survey approach was used to collect data. A sample of 300 fulltime employees, having administrative and teaching responsibilities participated using a self-completion questionnaire. The data were analyzed using exploratory factor analysis (EFA), correlation and multiple regressions to determine the impact of external factors on the commitment in use of technology.FindingsOverall, the results provided evidence that organization technical support, organization administrative support, and organization infrastructure and resources have a significant positive impact on the commitment in use of technology. However, organization ICT policy has an insignificant negative impact on the commitment in use of technology. The findings could be generalized on other public sector universities of the Kingdom of Saudi Arabia.Research limitations/implicationsThe data were collected from one public sector university of Hail province, the Kingdom of Saudi Arabia. Only four external factors were taken into consideration in investigating its influence on the commitment in use of technology. There could be other external/environmental factors which might be useful to underpin the theory and advance literature.Practical implicationsIn-service and trainee faculties should take an advantage of using learning management system. Faculty should create a positive learning environment in their online classes so the learners can take a benefit out of the immense investment on ICT by ministry of higher education. Apart from giving training to teaching staff in use of technology, learners should also be given a platform to increase and improve their digital literacy. Workshops can be conducted frequently for both faculties and learners. Faculty can offer additional and out of the class support to their reluctant and weak students in order to assist them in the use of technology.Originality/valueTechnology integration after COVID-19 outbreak has significantly changed the education sector throughout the world. The use of technology now is unavoidable at primary, secondary and at tertiary level. This study provides an exclusive viewpoint concerning the external/environmental evidence based findings that have not been investigated empirically in the Saudi Arabian context. The current study also provides statistically a theoretical five-component model to understand the phenomena in the field of information communication technology.

Electricity production and its effects on carbon dioxide emissions in the Kingdom of Saudi Arabia: إنتاج الكهرباء وآثاره في انبعاثات ثاني أكسيد الكربون في المملكة العربية السعودية

2021 ◽  
Vol 5 (3) ◽  
pp. 134-108
Author(s):  
Zakiah Radhi Alhajji, Mohamed Elsayed Hafez Ali Zakiah Radhi Alhajji, Mohamed Elsayed Hafez Ali
Keyword(s):  
Carbon Dioxide ◽  
Saudi Arabia ◽  
Carbon Dioxide Emissions ◽  
Fossil Fuels ◽  
Electric Energy ◽  
Total Carbon ◽  
Electricity Production ◽  
Energy Productivity ◽  
Gulf Region ◽  
Kingdom Of Saudi Arabia

Because of increased demand for electrical energy in the Kingdom of Saudi Arabia, which has resulted in an increase in carbon dioxide emissions, the electricity system in the Kingdom of Saudi Arabia is the largest in the Gulf region and the Arab world, with approximately 61.7 gigatons (GW) of peak demand and 89.2 gigatons (GW) of available capacity in 2018 of electricity power. It has grown rapidly over more than 20 years and has almost doubled in size since 2000. Where we observe that the total carbon dioxide emissions in the Kingdom of Saudi Arabia from 1990 to 2020; where shows rapid growth in emissions of carbon dioxide and greenhouse gases, as it was found that CO2 emissions in 1990 amounted to 151 million metric tons compared to 2011 when it reached about 435 million metric tons, and the increase continued until 2020 when it reached about 530 million metric tons. The comprehensive study relied on time series analysis to carefully analyze the electric energy productivity rate from fossil fuels and the significant amount of carbon dioxide emissions typically resulting from promptly burning fossil fuels to naturally produce electric energy. Therefore, the Kingdom of Saudi Arabia, through Vision 2030 and the Paris Agreement on Climate Change, looks to reduce the rate of carbon dioxide emissions in the field of electric power generation by diversifying the fuels used or replacing them with clean and renewable energy such as solar and wind energy.

scholarly journals Prevalence of Musculoskeletal Disorders among Dentists in Al-Madinah, Kingdom of Saudi Arabia

2017 ◽  
Vol 03 (01) ◽  
pp. 015-019
Author(s):  
Talat Al-Gunaid ◽  
Rayan Abdulhai ◽  
Baha Flemban
Keyword(s):  
Saudi Arabia ◽  
Musculoskeletal Disorders ◽  
Dental Students ◽  
The Body ◽  
Musculoskeletal Symptoms ◽  
Kingdom Of Saudi Arabia ◽  
Increased Risk ◽  
Dental Practitioners ◽  
Wide Range ◽  
Different Parts

Abstract Introduction: Musculoskeletal disorders (MSDs) are one of the most common occupational hazards associated with a wide range of occupations. Dental professionals have an increased risk of developing such disorders caused by repetitive, hard, or stressful gestures. Taking this issue into consideration, we felt the necessity to investigate the prevalence and distribution of musculoskeletal symptoms among dentists in Al-Madinah. Materials and methods: A self-reported questionnaire was distributed to a random sample of 180 dentists from different parts of Al-Madinah, Kingdom of Saudi Arabia. The questionnaire was about musculoskeletal symptoms in different parts of the body. Results: A total of 70 questionnaires were completed and returned. Of the respondents, 47 (67.1%) were males and 23 (32.9%) were females. The mean age of respondents was 36.1 ± 8.7. Majority were general dental practitioners [45 (64.2%)], with the remainder being specialists [25 (35.8%)]. Prevalence of MSD during the past 12 months was reported to be lower back pain (65.7%), neck pain (48.6%), and shoulder pain (45.7%), with the lowest prevalence pain being found in the hips and thighs (17.1%). Conclusion: The results suggested that the prevalence of musculoskeletal symptoms among dentists in Al-Madinah, Kingdom of Saudi Arabia, is high. Continuing education for dentists and dental students about the proper and correct dental positions as well as practicing ergonomic skills and incorporating them into the curriculum would be beneficial.

scholarly journals 'MAQASID AL-SHARIAH' IN ISLAMIC BANKS BEFORE VALUE-BASED INTERMEDIATION IMPLEMENTATION

2021 ◽  
Vol 18 (2) ◽  
pp. 173-189
Author(s):  
Sharifah Faigah Syed Alwi ◽  
◽  
Fateha Abd Halim ◽  
Tengku Dewi Ahdiyaty Tengku Ahmad Mazlin ◽  
Aizurra Haidah Abdul Kadir ◽  
...  
Keyword(s):  
Qualitative Methodology ◽  
Islamic Law ◽  
Human Life ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Structured Interviews ◽  
The Public ◽  
Library Research ◽  
Banking Institutions ◽  
Banking Operations

Bank Negara Malaysia (BNM) had introduced Value-Based Intermediation (VBI) initiatives to help Islamic banks implement a structuralised form of maqasid al-shariah (objectives of shariah (Islamic law)) in their banking operations. Thus, questions were raised by the public on whether or not Islamic banking institutions in Malaysia had been achieving maqasid al-shariah in their banking operations prior to VBI. This paper aims to discuss the real concept of maqasid al-shariah that should be realised in Islamic banks and investigate whether Islamic banks had truly been achieving maqasid al-shariah in their banking operations before the introduction of VBI. Library research is conducted to obtain information on maqasid al-shariah and the qualitative methodology is adopted to gain information from three bankers representing three Islamic banks in Malaysia via semi-structured interviews. The researchers found that the fundamental concept of maqasid al-shariah in Islamic banks includes the protection of religion, life, intellect, progeny and wealth in human life through the products and services offered by the banks. The Islamic banks were found to have developed their products and services to achieve maqasid al-shariah even before VBI was introduced by BNM. However, with VBI, a proper framework in achieving maqasid al-shariah has been developed.

Review of Saudi Arabia company law reforms and its implications on corporate governance framework- an evidence from emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lubna Javed Rizvi ◽  
Zahid Hussain
Keyword(s):  
Corporate Governance ◽  
Saudi Arabia ◽  
Financial Management ◽  
Good Governance ◽  
Emerging Market ◽  
Relevant Literature ◽  
Company Law ◽  
Content Type ◽  
Governance Framework ◽  
Vision 2030

Purpose This paper aims to review the literature of CG regime in Saudi Arabia, an emerging market for several compelling reasons. Most of the earlier literature on corporate governance subjects mainly aimed at large emerging economies. To date, there is a lack of studies examining the following: authorities and obligations, subcommittees and the regulatory system in Saudi Arabia. Therefore, this paper is an attempt to bridge this gap by reviewing the current laws, regulation, trends and key reforms in corporate governance framework in the country as the current amended laws focused to offer more competence and precision to the regulatory setting in line with the development of the Saudi Arabian stock market and the influx of foreign reserves. Design/methodology/approach The current paper has espoused a content analysis approach in which relevant literature was deliberated and studied. Findings The amended CG rules include some developments into corporate governance and substitutes the earlier version of the long overdue regulation of 1965. The new 2017 implemented Code will reinforce the implication of good governance as a condition model for accomplishing good financial management in the country. This study has provided an overview of the evolution and development of corporate governance in Saudi Arabia by highlighting the key reforms. Research limitations/implications This study has implications for the policymakers and institutional bodies to review the current developments and progress in the country’s overall corporate governance framework in an attempt to attract more foreign direct investment. Saudi Arabia is among the nations that have a potential for huge foreign investments due to its plan of expanding its economy “Vision 2030.” Therefore, this paper will aid foreign investors in deciding to invest in the country after reviewing the current developments in an attempt to implement vision 2030. Originality/value This study contributes to existing literature by examining the current trends in CG, with the discussion on the development of company law in Saudi Arabia which emphasizes on sections that borders on corporate governance.

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