scholarly journals Rethinking Islamic Economics

2019 ◽  
Vol 32 (2) ◽  
pp. 119-124
Author(s):  
Mansor Haji Ibrahim Mansor Haji Ibrahim
Keyword(s):  
Islamic Finance ◽  
Islamic Banking ◽  
Limited Ability ◽  
Economic Issues ◽  
Mainstream Economics ◽  
Banking And Finance ◽  
Economic Practices ◽  
Islamic Economic

The emergence of Islamic viewpoints on economic issues under the umbrella of Islamic economics has captivated much interest especially in its practical manifestation in Islamic banking and finance. In light of the failure of mainstream economics to address many pressing issues, and hence the need for alternative views, this paper offers assessments of Islamic economics whether (i) it is relevant to this need, (ii) it has progressed to the extent that it has been made to become relevant, and (iii) it is also in need of reform. While I argue that Islamic economics is relevant, it falls short of expectations on the second issue. The major reasons being: (a) the lack of progress in Islamic economics theory, (b) the similarity of Islamic economic practices in the forms of Islamic finance to conventional finance, and (c) its limited ability thus far to embrace multi-perspective views. On the basis of these, I conclude that Islamic economics is also in need of reform.

scholarly journals ISU GLOBAL PEREKONOMIAN ISLAM: Telaah Kritis terhadap Tata Kelola dan Aktivitas Lembaga-lembaga Keuangan Islam

2016 ◽  
Vol 1 (2) ◽  
pp. 111
Author(s):  
Muhdi Kholil
Keyword(s):  
Financial Institutions ◽  
Islamic Finance ◽  
Islamic Banking ◽  
International Forum ◽  
Banking And Finance ◽  
Finance Industry ◽  
Financial Products ◽  
Economic Practice ◽  
The World ◽  
Islamic Economic

<p>Indonesia is to be known widely by the world, which has Islamic finance system different from most countries. Indonesia which is in the international forum of financial syriah known "orthodox" or conservative in the application of Islamic principles recognized the economic practice of Islam which is closer to the economic substance of Islam, and relatively completed all aspects of the economy. Islamic economic development not only in the sectors has been developed such as banking, capital markets and non-bank financial institutions other, but also in extended development of the microfinance sector,  social and financial practices of real business to meet Islamic principles.</p><p>The composition and transaction of Islamic financial products’ Indonesia is a fact that is not owned by other countries which are also developing Islamic banking and finance industry. No wonder, since the majority of developing countries in the world of sharia finance industry with the approach of imitation (mimicry) with conventional, and many experts doubt the originality/economic system of Islamic finance, both conventional and expert on Islamic scholars. But on many opportunities, from seminars, conferences and working group forum, many countries are aware that Indonesia has a different form of sharia industry, the application of Islamic finance that has another color.</p><p>Keyword: Economics, Sharia, Indonesia.</p>

scholarly journals Research in Islamic Economics and Finance in Malaysia: A Review

2004 ◽  
pp. 1-24
Author(s):  
Muhamad Muda ◽  
Nursilah Ahmad ◽  
Hanim Misbah ◽  
Nor Haziah Hashim ◽  
Zurina Kefeli@Zulkefli ◽  
...  
Keyword(s):  
Economic Development ◽  
Descriptive Statistics ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Field Of Study ◽  
Banking And Finance ◽  
The Future ◽  
Islamic Economic ◽  
Areas Of Interest

This paper evaluates and analyses contents on several selected journals on Islamic economics and finance in Malaysia between 1977-3003. A brief introduction on the purpose, importance and structure of the journals are highlighted followed by its history, within the first part of the article. This paper also covers the background of the journals, the methodology and the reviews the relevant articles. Apart from that descriptive statistics concerning the classification of field of study of study each journal and subtopics of articles reviewed were also presented. A brief contents analysis of Islamic economics system, Islamic finance and banking, Islamic economic development and Islamic management articles were discussed to examine its prospect for research in the future. This review found that the scope and areas of interest, as indicated by the publications are narrow and few. This paper concludes with a discussion on the needs to proliferate the research and publication in the areas  of Islamic banking and finance, Islamic economics and Islamic management.

Fudhuli Transactions:Potential Applications and Parameters

2021 ◽  
Vol 12 (3) ◽  
pp. 2801-2811
Author(s):  
Ahmad Zakirullah Mohamed Shaarani Et.al
Keyword(s):  
Islamic Finance ◽  
Islamic Banking ◽  
Banking And Finance ◽  
Library Research ◽  
Do So

Tasarrufal-Fudhuli refers to transactions or contracts carried out by a person who does not have the authority or legitimacy to commit the transaction, and these contracts include exchange contracts such as sales, rent and services, or charitable contracts such as representation/wakalah, hibah, loans, guarantees, and so on. In the context of Islamic finance, although it is a type of transaction that is argued and debated by the jurists and fuqaha, some have begun to realize its great potential in keeping with current developments, especially in the field of Islamic banking and finance. Besides looking at Fudhuli in terms of its meaning and the Shariah rules that govern it, the main focus of this study is the discussion of its dhawabhit/ parameters as it has its own risks associated with it compared to other established types of Islamic contracts. The study utilizes a full library research by analyzing scholar`s debates and their arguments on this kind of contract, the contract`s potential, followed by analyzing the parameters that should be adopted in operationalizing this contract together with the discussion on the issues of fudhulithat are relevant to current Islamic banking and finance operations. The results of this study show that the views that allow this contract has strong arguments, and that it has also been widely practiced outside of Malaysia, but is relatively new in Malaysia. While it is permissible, however, some parameters must be put in place so that it is not in conflict with Shariah, and comply with the Shariah requirement of each contract done on a fudhuli basis. There must also be an urgent and genuine need to do so, and not involve ribawi items that require immediate delivery of the asset, as well as the existence of a council or body that controls and monitors the process and implementation by the involved parties

scholarly journals An economic theory of Islamic finance

2017 ◽  
Vol 9 (2) ◽  
pp. 117-132 ◽  
Author(s):  
Mabid Ali Al-Jarhi
Keyword(s):  
Design Methodology ◽  
Islamic Finance ◽  
Economic Systems ◽  
Monetary Reform ◽  
Content Type ◽  
Reform Agenda ◽  
Banking And Finance ◽  
Economic Rationale ◽  
Islamic Economic ◽  
Set Up

Purpose This paper aims to provide an economic rationale for Islamic finance. Design/methodology/approach Its methodology is simple. It starts with listing the contributions to economic analysis relevant to the required rationale in the theories of banking, finance, price, money and macroeconomics, to identify the main rationale for Islamic finance. A concise description of the author’s model for an Islamic economic system, within which Islamic finance can be operational, is provided. Findings The paper finds distinct advantages of Islamic finance, when properly applied within the author’s model. Islamic finance can therefore be a candidate as a reform agenda for conventional finance. It opens the door for significant monetary reform in currently prevalent economic systems. Research limitations/implications The first limitation of the paper is that the distinct benefits of Islamic finance are all of macroeconomic types which are external to Islamic banking and finance institutions. They are therefore not expected to motivate such institutions to apply Islamic finance to the letter, without regulators interference to ensure strict application. The second limitation is the necessity to set up enabling institutional and regulatory arrangements for Islamic finance. Originality/value The results are unique as they challenge the received doctrine and provide non-religious rationale for Islamic finance.

Value- based Islamic banking and reporting in Bahrain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Akhtar Ali Saeed Mohammed ◽  
Fadillah Mansor
Keyword(s):  
Annual Reports ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Reporting Standard ◽  
Content Type ◽  
Islamic Financial Institutions ◽  
Islamic Economic ◽  
Practical Implications ◽  
Specific Contribution

Purpose This paper aims to analyse whether the practices of Islamic banks in Bahrain are in line with value-based Islamic banking (VBIB) and reporting disclosure in the annual reports towards achieving their fundamental objectives of human-centred economic development and social justice. Design/methodology/approach Based on Islamic finance, Islamic economic principles and perception of Maqasid al-Shari’ah, this paper examines and assesses the current practices of Islamic financial institutions (IFIs) in Bahrain through content analysis of financial and annual reports of Islamic banks in Bahrain and interviews of Islamic banking experts. Findings The findings reveal that value-based banking (VBB) has not been translated fully into practice by the Islamic banks in Bahrain. Research limitations/implications The data analysis was restricted to Islamic banks in Bahrain. Practical implications This paper identifies the need for reporting standard development to improve the VBB practice in Bahrain in the future. Looking at the objectives of the IFIs, this paper introduces the concept of VBB in Bahrain, which includes ethical banking, responsible banking and social responsibility. The study adds value not only to the current Islamic finance literature but also helps many stakeholders, including prospective academics, who may conduct comparative studies in different jurisdictions throughout the world. Originality/value The specific contribution of this paper is the identification of the VBB practices and related disclosure in the Islamic banking industry in Bahrain. The study is useful to harmonise and standardise the practices of VBIB by the contemporary Islamic banks in Bahrain.

Revisiting Companionship and the Socio-Economy of the Islamic Guilds

2021 ◽  
pp. 112-147
Author(s):  
Hasan Shahpari ◽  
Tahereh Alavi Hojjat
Keyword(s):  
Islamic Banking ◽  
Clear Understanding ◽  
Banking And Finance ◽  
Legal Foundation ◽  
History Of ◽  
Conventional Banks ◽  
Islamic Economic ◽  
Craft Guilds ◽  
The Relationship

This chapter is an introduction to the history of the formation of guilds and how they connect them to the religious and social structures that molded them. The craft-guilds are one of the most interesting and characteristic phenomena of medieval Muslim civilization. The guild in Muslim life was built essentially on the idea of the market and based on the needs of the guildsmen. Many different countries officially claim their commitment to Islam and Islamic economics. However, Islam and Islamic economic systems differ significantly from one country to another. Analysis of the Islamic economic system is impossible without a clear understanding of the legal parameters that shaped such a system. The legal foundation of the Islamic society, known as Shari'a, is considered eternally valid and applicable to all times and places. Islamic laws not only provide society with collections of laws and prescriptions which indicate the Islamic path, they also focus on specific human activities and classify them according to their degree of desirability from God's perspective. Different viewpoints on the relationship between religion, culture, and economic performance are investigated here. Finally, the role of the central bank and Islamic banking and finance will be discussed in detail. While Islamic banks play roles similar to conventional banks, fundamental differences exist between the two models. The main difference between Islamic and conventional banks is that the former operate in accordance with the rules of Shari'a, the legal code of Islam. The central concept in Islamic banking and finance is justice, which is achieved mainly through the sharing of risk. Stakeholders are supposed to share profits and losses, and charging interest is prohibited.

Revisiting Companionship and the Socio-Economy of the Islamic Guilds

2016 ◽  
pp. 198-233
Keyword(s):  
Islamic Banking ◽  
Clear Understanding ◽  
Banking And Finance ◽  
Legal Foundation ◽  
History Of ◽  
Conventional Banks ◽  
Islamic Economic ◽  
Craft Guilds ◽  
The Relationship

This chapter is an introduction to the history of the formation of guilds and how they connect them to the religious and social structures that molded them. The craft-guilds are one of the most interesting and characteristic phenomena of medieval Muslim civilization. The guild in Muslim life was built essentially on the idea of the market and based on the needs of the guildsmen. Many different countries officially claim their commitment to Islam and Islamic economics. However, Islam and Islamic economic systems differ significantly from one country to another. Analysis of the Islamic economic system is impossible without a clear understanding of the legal parameters that shaped such a system. The legal foundation of the Islamic society, known as Shari'a, is considered eternally valid and applicable to all times and places. Islamic laws not only provide society with collections of laws and prescriptions which indicate the Islamic path, they also focus on specific human activities and classify them according to their degree of desirability from God's perspective. Different viewpoints on the relationship between religion, culture, and economic performance are investigated here. Finally, the role of the central bank and Islamic banking and finance will be discussed in detail. While Islamic banks play roles similar to conventional banks, fundamental differences exist between the two models. The main difference between Islamic and conventional banks is that the former operate in accordance with the rules of Shari'a, the legal code of Islam. The central concept in Islamic banking and finance is justice, which is achieved mainly through the sharing of risk. Stakeholders are supposed to share profits and losses, and charging interest is prohibited.

scholarly journals Does Technology Matter?: literature Review Adopsi Teknologi Dalam Riset Ekonomi Keuangan Syariah

2019 ◽  
Vol 3 (2) ◽  
pp. 117-136
Author(s):  
Wasyith Wasyith
Keyword(s):  
Literature Review ◽  
English Language ◽  
Descriptive Analysis ◽  
Islamic Finance ◽  
Islamic Banking ◽  
New Era ◽  
Technology Sector ◽  
Technological Advances ◽  
Islamic Economic ◽  
Financial Research

Technology disruption brings us to a new era full of opportunities and challenges. In digital transformation, various cutting-edge innovations in the economy were born and developed. At this point, Islamic economics and finance can utilize the advantages provided by technological advances, such as features of generativity, convergence, and culture of democratization to promote ethical principles such as togetherness, justice, equality, and honesty. In the realm of research, if previously the issue of technology had not been enough of the attention of researchers, then the trends were slowly changing. This research tries to review the research on the theme of Islamic economics and finance with the emphasis on the use of the technology sector in it. This research is a literature review and uses a descriptive analysis of 28 English-language articles based on Google Scholar. The sample articles are those published from 2014 to 2019. The results showed that technology adoption has become a common concern of researchers in the field of Islamic economics and finance. The theme of developing technology-based Islamic economic and financial instruments in various sectors continues to emerge, from Islamic banking, Islamic finance, Islamic monetary systems, and zakat. Besides, this research also offers a framework on how to develop Islamic economic and financial research going forward.  

scholarly journals The Role of Musharakah in the Economic Development of Tehsil Dargai, District Malakand, Khyber Pakhtunkhwa, Pakistan

2019 ◽  
Vol 6 ◽  
pp. 80-97
Author(s):  
Suhail Ahmad ◽  
Ejaz Aslam ◽  
Prof. Dr. S. Ghiasul Haq ◽  
Prof. Dr. Mohd Ma'Sum Billah
Keyword(s):  
Response Rate ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Limited Data ◽  
Khyber Pakhtunkhwa ◽  
Banking And Finance ◽  
Finance Industry ◽  
Muslim Countries ◽  
Job Opportunities

Islamic finance industry has been growing for the last twenty years, both in Muslim and non-Muslim countries around the world. There are different modes of Islamic finance which provide job opportunities across the globe. In Pakistan, the contemporaneous growth of Islamic banking and finance is not different from other countries. Islamic banking and finance does not only provide employment for individuals, indeed it also offers various products and services to customers across the country. Musharakah is a form of business in Islamic finance that is being adopted rapidly by most of the customers in Islamic banking and finance institutions. Therefore, the purpose of this study is to examine the role of Islamic finance, mainly how Musharakah is playing its due role in creating employment and maintaining sustainable development projects which in turn are causes of the development of the economy, particularly of Tehsil Dargai. For this purpose, this study collected data through a questionnaire that was randomly distributed among 100 respondents in Tehsil Dargai, District Malakand, Khyber Pakhtunkhwa (KP), Pakistan and the response rate was 60%. We found that Islamic finance is rapidly growing in Dargai; indeed, people are practicing different modes of Islamic finance and Musharakah is the most popular form of Islamic finance in this area. This study utilizes limited data because it was only conducted in Dargai.

scholarly journals Contemporary Challenges Confronting Islamic Banking & Finance

2015 ◽  
Vol 55 ◽  
pp. 86-94
Author(s):  
Muhammad Asif Khan ◽  
Muhammad Waseem Shehzad ◽  
Muhammad Atif Khan
Keyword(s):  
Capital Market ◽  
Regulatory Framework ◽  
Western Society ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Reporting Standards ◽  
Financial Instruments ◽  
Tabular Form ◽  
Banking And Finance

The philosophy of Islamic economics is “brining economics in consonance with Shariah”, guiding Islamic banking and finance to abolish interest from operations, has reported a monumental growth, envisaged the most lucrative and unsusceptible segment of the economy. Islamic finance is undoubtedly flourishing worldwide entails trajectory development but at other front it encounters a number of impediments in development since its inception. The emphasis of this study is to encapsulate in tabular form, the contemporary problems and challenges Islamic finance has encountered during the span of last 28-years from 1988 to 2015. The austere Shariah compliance; regulatory and prudential challenges; misconception among western society about Islamic banking philosophy; unavailability of money and capital market for scant Islamic financial instruments; piercing competition; privation of Islamic banking and finance awareness; absence of uniform reporting standards; complexities of regulatory and supervisory issues; lack of central supervisory body, governance and dearth of consensus among Shariah scholars been the precarious challenges among many others. A unified central regulatory and supervisory mechanism required in converging sprinkled Islamic finance practices and to foster a synchronized and standardized regulatory framework consensus need to be developed among all Shariah scholars

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