CIFP

Allah S.W.T makes it very clear that He forbids interest based transactions and allowing sales. He also rejects the idea of making riba’ and sale transaction as the same as He gives clear distinction among both two transactions. The objective of this paper is to compare between Shariah compliant sale and Riba’ based transaction in a critical manner. The comparisons derived later should be seen from general perspective of both system, and not going into any particular product. In this paper, we will reproduce the definitions, history and background and Islamic rulings concerning both systems. Then, we will also outline the types of Shariah compliant products and interest based transactions. Later, we will compare both transactions and give examples of banking system. Lastly, we will discuss few issues concerning both model and end this paper with the discussion on a case study of micro financing in Islam.

Keyterms: Shariah compliant sales, history of banking, riba’ based transaction, asset backed, asset based, money backed, money based, Gharar, Bay’ Inah, interest rate, Musyarakah Mutanaqisah, Home loan, AITAB, Hire purchase, Micro Financing, Grameen Bank.

This is the proposal for financial facilities designed for Maaruf Development Bhd (MDB). MDB is a designed company as an example to provide Islamic financial solutions. This proposal intends to provide MDB with reliable and specific financial solutions which comply with Shariah principles and guidelines. The facilities proposed in this proposal will help MDB in positioning themselves as a Shariah stock in Kuala Lumpur Stock Exchange (KLSE).

The takaful industry is a new industry. The industry is tracked back to 1979, when the concept was launched in Sudan and later in Saudi Arabia.Recently,  Shariah scholars have raised a number of concerns about the Shariah permissibility of the business models employed in the industry.

This article examines the basic principles of takaful and then analyzes the Shariah issues related to the industry. Some of the issues related to Takaful is about Hibah distribution, nomination and surplus sharing. In addition, some minor issues also discussed in this paper to make our understanding better. Lastly, some recommendation will be provided to help enhance the industry. Hopefully, the Shariah issues will be resolve from time to time, until the industry mature.

Islamic Finance has captured a universe of USD 1 trillion dollar in assets under management, and yet growing very fast. The industry has captured the attention of most of the financial professionals worldwide. Acknowledge as the fastest growing industry in the world, it comprises of mainly three sectors namely Islamic Banking, Islamic Capital Market and Islamic Insurance (Takaful).

Although Takaful is the slowest growing segment of Islamic Financial industry, it has generated a vast interest among investors and insurance providers. Wahab, Lewis, & Hassan, (2007) revealed that the concept of Takaful, which started in Sudan in 1979 and later in Saudi Arabia, recently, has operators and products offered in more than 22 countries and is gaining popularity elsewhere as well.

The inconsistencies of Shariah interpretation especially in the Takaful industry put some challenges into the industry. Therefore, let us analyze and understand the inconsistencies and come out with proper solutions.

We investigate the impact of sustainability-performance disclosure (SPD) on firmperformance on a cross-industry sample of 71 firms over the period 2011-2018. Wealso compare the relationship between shariah-compliant firms (SCFs) and non-shariah-compliant firms(NSCF). To control for possible issues of unobservedheterogeneity, endogeneity and autocorrelation, we use the system generalizedmethod of moments approach. We found that disclosure of sustainability performanceincreases a firm’s financial performance. Firms which disclose information on theirsustainability practices were found to have higher earnings on assets and equity,which clearly supports the argument of information asymmetry. In the comparison ofshariah-compliant and non-shariah-compliant firms, it was found that SCFs are at anadvantage by being shariah compliant and that disclosure of sustainabilityperformance increases the financial performance of such firms, whereas for non-shariah-compliant firms, the impact was foun...

Islam harbours an economic vision that holds the key to a social order capable of providing social justice along with economic prosperity. This vision is deeply inscribed in the objectives of shar¥ c ah, also known as maqOE §id al-shar¥ c ah. Consequently the doctrine of Islamic economics entered debates over the social-welfare role of Islam. It has somehow pursued the goal of restructuring economies according to perceived Islamic teachings and principles. Its most visible practical achievement is the establishment of Islamic banks meant to avoid interest and promote Islamic norms of economic behaviour and ultimately realizing the noble objectives of shar¥ c ah. This paper examines the challenges of the proper realization of maqOE §id al-shar¥ c ah in Islamic banking and finance. These challenges cover various issues: the proper understanding of maqOE §id al-shar¥ c ah in Islamic economics; the methods of implementing maqOE §id al-shar¥ c ah in Islamic banking and finance; the potential conflicts between macro maqOE §id and micro maqOE §id; and the possible abuse of maqOE §id al-shar¥ c ah to justify certain financial contracts which in fact contradict the shar¥ c ah texts. The paper analyses these challenges and provides examples from the current practices of Islamic banks and financial institutions.

The rapid growth in Islamic finance industry urges us to not only look for alternatives in the Islamic commercial banking, but also focus on the regulator and its role and functions to enable it to work in conformity with Islamic principles. This study reviews limited, but precious academic literature on central banking and monetary management in an environment where Islamic finance is in vogue.

Purpose: This study aims to explore the role of Zakat in addressing development challenges facing Nigeria and its potentiality in achieving sustainable development goals in Nigeria. Design/methodology/approach: The study adopts qualitative method by conducting library research and critically reviewing the literature. Findings: This study finds that Zakat as an Islamic social finance for ensuring socioeconomic and distributive justice through preserving and circulating wealth, has the potentialities of achieving most sustainable development goals. This includes reduction of poverty, hunger and inequality. In addition, zakat can promote sustainable agriculture, peaceful and inclusive societies, quality education, good health and well-being. Therefore, the study concludes that, to ensure effective utilisation of zakat fund by the recipient and wider coverage of Zakat to a number of poor people in the region, utilisation of modern communication in form of e-community-based platform for ...

Trade has been practiced before Islam came. After Islam come, Prophet explain rules and policies in doing trade, especially for its permissibility because all transaction that are carried out by Muslim must be halaal. Currently, many Islamic financial institutions have adopted some Islamic law school opinion of Prophet's Sunnah to launch new financial products. This paper wants to look more to basic financial product and its legality.

share their profit or loss of the joint venture. This participatory schemes have great potentials for microfinance purposes as these schemes can satisfy the risk sharing needs of the microentrepreneurs. But in practice,there still lots of musharakah transaction which not shariah compliant. This paper want to analyze musharakah financing practice in Shariah Service Kospin Pekalongan, micro finance institution in Yogyakarta. Indonesia.

The development and growth of the Takaful industry consumers in Indonesia have proved public awareness and confidence to use the Islamic insurance. However shariah compliant issue only is not enough to address the particular conventional insurance competitors. It needs the uniqueness selling proposition (USPs) of Takaful products to make it a superior and competitive. Here the authors tried to trace the development of Takaful product in Indonesia and what Indonesia can offer to develop Takaful Industry.

Ethically screened mutual funds have allowed many investors concerned with their beliefs and customs to enter the equity market. Islamic ethical funds (IEF's), being new entrants' in this market, are characterised by their shari'ah compliance and have proliferated in Malaysia and the Middle-East.

Objective-This paper attempts to discuss the Islamic law of inheritance (Faraid), its existence and its systematic impact to humankind. Faraid plays a fundamental role as an impetus behind the development of science, which has a great economic impact to the development of social welfare. This paper aims to increase the awareness towards the importance of Islamic law of Inheritance for knowledge development, and social prosperity of humankind. Secondly, to reveal the hikmah behind the rules set in Faraid and their economic implications. Thirdly is to emerge the consciousness for being Sharia' compliance by revealing the secret behind His rules and its benefit for humankind. Method-Employing a qualitative method and literature review Result-This paper shows that from the macroeconomic perspective, Faraid systematically ensures the redistribution of wealth, and spreads the concentration of wealth in every generation. Literature reviews and information collected are employed in orde...

Objective-This paper attempts to discuss the Islamic law of inheritance (Faraid), its existence and its systematic impact to humankind. Faraid plays a fundamental role as an impetus behind the development of science, which has a great economic impact to the development of social welfare. This paper aims to increase the awareness towards the importance of Islamic law of Inheritance for knowledge development, and social prosperity of humankind. Secondly, to reveal the hikmah behind the rules set in Faraid and their economic implications. Thirdly is to emerge the consciousness for being Sharia' compliance by revealing the secret behind His rules and its benefit for humankind. Method-Employing a qualitative method and literature review Result-This paper shows that from the macroeconomic perspective, Faraid systematically ensures the redistribution of wealth, and spreads the concentration of wealth in every generation. Literature reviews and information collected are employed in order to analyze and make further inferences. The literature review clarifies the magnificence of Faraid and its real contribution to human development; in economics and in other disciplines. Faraid keeps the justice in wealth distribution, protects property rights, empowers women to be involved in economic activities and as a whole, Faraid also encourages economic growth. Conclusion-Conclusively, by commissioning Faraid, the wealth is generated and returned to the factors production through many hands of who deserve it after the absence of deceased.