Search Results (82)

As a developing and evolving phenomenon, Islamic finance is continuously questioned regarding its performance and efficiency, especially in the context of higher ethical objectives, also termed as maqasid al Shariah, to achieve falah by practicing ihsan. A vast group of researchers has measured the unsatisfactory performance of Islamic financial institutions against the maqasid al Shariah, reflecting their convergence with capitalist systems. This raises a question of whether the Islamic finance industry interprets the concept of maqasid al Shariah the same way as academia and whether they assign maqasid al Shariah the same high level of relevance and importance. This study explores how the practitioners of the Islamic banking industry in Pakistan understands and implement maqasid al Shariah in practice. Adopting a qualitative, multiple-case approach, it draws on 20 in-depth narrative interviews with Islamic bankers and Shariah scholars. The findings of the research suggest ten different perspectives of practitioners, which they hold regarding maqasid al Shariah. They are (1) public welfare (maslahah), (2) business motives alongside banks do not consider maqasid al Shariah as their responsibility, (3) wrong interpretation and wrong evaluation of Islamic institutions on maqasid, (4) new industry and over expectation from the industry, (5) justice/equity (‘adl/ihsan), (6) bankers consider auto inclusion of maqasid al Shariah in every transaction, (7) prevention from prohibitions and provisioning of halal options, (8) Shariah compliance, (9) more focus on protection of wealth (10) maqasid are not divine and are man-made interpretations. These findings contribute to developing more effective performance measurement frameworks for the industry in the future and can compel both regulators and practitioners to consider comprehensive objectives of Shariah in product development rather than focusing merely on compliance. Full article

This study examined the influence of Shariah-oriented attributes on Indonesian Muslims’ intention to visit Thailand, which is a non-Muslim country. This stimulus–organism–response (SOR) model was used to examine the relationships between Shariah-oriented tangible and intangible attributes (stimulus), perceived halal safety and Muslim trust (organism), and visit intention (response). The data from 387 Indonesian Muslim respondents were analyzed using partial least squares structural equation modelling combined with Importance–Performance Map Analysis (IPMA). The results supported six of seven hypotheses establishing that Shariah-oriented attributes significantly influenced perceived halal safety, Muslim trust, and visit intention. Notably, perceived halal safety showed a significant direct negative effect on visit intention (β = −0.108, p < 0.05); it did not significantly mediate the relationship between Shariah-oriented attributes and visit intention (β = −0.049, p = 0.059). Muslim trust demonstrates a strong positive mediating effect (β = 0.236, p < 0.001). The IPMA results revealed that Shariah-oriented tangible attributes demonstrated both high importance and excellent performance, while intangible attributes showed high importance but moderate performance, indicating a priority area for improvement. These findings highlight that Muslim trust and tangible Shariah-compliant attributes are crucial for attracting Muslim tourists to non-Muslim destinations, providing valuable insights for tourism stakeholders. Full article

This paper investigates the factors of sustainability of the financial performance of Islamic insurance (Takaful) windows in Pakistan. A large body of literature has examined Takaful providers across many countries; however, there is little research on the dynamics of Takaful windows. This study uses an analytical approach to investigate the effects of various operational and financial measures on Takaful window performance. It is one of the earliest works to examine the profitability of Takaful windows with a dynamic PVAR model, providing new evidence on the peculiar financial forces in hybrid Islamic–conventional insurance frameworks. It explores the effects of the retention ratio, Wakalah fees, commission ratio, gross written contributions, and underwriting surplus on profitability, measured by return on assets (ROA) and return on equity (ROE). It uses annual data from 18 Pakistani Takaful window insurers, employs a panel vector autoregressive framework to capture dynamic interdependencies and endogeneity, and conducts a variance decomposition with impulse response analysis. The findings indicate that the retention ratio and underwriting surplus have significant positive effects on ROA, whereas Wakalah fees have a negative impact. In the case of ROE, the underwriting surplus and commission ratio are associated with positive effects; meanwhile, the retention ratio and gross written contributions are related to negative effects. Variance decomposition emphasizes the commission and retention ratios as the main sources of profitability, with Wakalah fees and underwriting surplus being insignificant. The regulators need to ensure proper fund separation and establish the most optimal rules regarding Wakalah fees. The operation of Takaful windows should focus on commission management and business retention strategies to enhance profitability and financial sustainability. The increase in the financial performance of Takaful windows contributes to the expansion of Shariah-compliant insurance, facilitating the financial inclusion of Muslim communities in mixed markets. Full article

Islamic Microfinance Institutions (IMFIs) encounter distinct difficulties with credit scoring because they need to follow Shariah principles that combine riba bans with fair financial dealings regulations. Conventional credit scoring models exhibit two shortcomings: a poor capability to incorporate non-financial behavioral data and inadequate support for Islamic Microfinance Institutions’ requirements. Researchers use machine learning coupled with blockchain technology to create an adaptive Shariah-compliant credit scoring method that solves problems found in standard evaluation systems. Using a dataset of 1275 farmers with 52 weeks of transaction data, we implemented and compared three ML models: Linear Regression, Random Forest, and Gradient Boosting. Data preparation involved addressing 53% missing transaction data, followed by summing weekly financial activity to prepare it for predictive evaluations. Our analysis shows that the Random Forest model produced the best results with an R-squared value of 0.87 and a Mean Squared Error (MSE) of 12.4. In creditworthiness binary classification tasks, Gradient Boosting delivered an F1 score of 0.91 while maintaining precision at 0.89 and recall at 0.93. Blockchain integration exists to protect data through secure mechanisms that also conserve Islamic financial integrity and promote transparency. The research shows how ML and Blockchain technology enable fundamental changes in IMFIs by delivering elevated predictive accuracy, operational enhancements, and complete transparency. The conceptual framework guides ethical financial inclusion strategy by offering a solution for marginalized communities, but remains consistent with global sustainability objectives. The research established foundational elements for implementing cutting-edge technologies within IMFIs, which will promote new economic growth and build confidence in Shariah-compliant financial systems. Full article

Artificial intelligence is reshaping healthcare project management in Saudi Arabia, yet most deployments lack culturally grounded ethics. This paper synthesises global AI-ethics guidance and Islamic bioethics, then proposes a maqāṣid-al-sharīʿah-aligned conceptual framework for ANN-based decision support. Ethical signals derived from the preservation of life, dignity, justice, faith, and intellect are embedded as logic-gate filters on ANN outputs. The framework specifies a dual-metric evaluation that reports predictive performance (e.g., accuracy, MAE, AUC) alongside ethical compliance, with auditable thresholds for fairness (δ = 0.1) and confidence (α = 0.8) calibrated through stakeholder workshops. It incorporates a co-design protocol with clinicians, patients, Islamic scholars, and policymakers to ensure cultural and clinical legitimacy. Unlike UNESCO and EU frameworks, which remain principle-oriented, this study introduces a measurable dual-layer assessment that combines technical accuracy with ethical compliance, supported by audit artefacts such as model cards, traceability logs, and human override records. The framework yields technically efficient and Shariah-compliant recommendations and sets a roadmap for empirical pilots under Vision 2030. The paper moves beyond a general review by formalising an Islamic-values-driven conceptual framework that operationalises ethical constraints inside ANN–DSS pipelines and defines auditable compliance metrics. This paper combines a critical review of AI in healthcare project management with the development of a maqāṣid-aligned conceptual framework, thereby bridging systematic synthesis with an implementable proposal for ethical AI. Full article

This paper compares the rulebooks of five main Shariah-compliant equity indices—DJIMI, KLSI, FTSE Shariah, MSCI Islamic, and STOXX Europe Islamic 50—inside one fixed S&P 500 stock list from Q1 2019 to Q4 2023. For each index, we build both equally weighted and market-capitalization-weighted portfolios, then check their performances with the Sharpe, Treynor, and Jensen’s alpha ratios. All Islamic portfolios beat the regular S&P 500 after adjusting for risk, with STOXX as the most stable winner. Its market-cap version reaches a level of 253.01 by Q4 2023, far above the S&P 500 level of 210.46. Market-cap portfolios, in general, perform better than equally weighted ones. Furthermore, STOXX offer better protection in rough markets, while DJIMI shows relatively better performance when prices recover. Most rule sets cause small advantages to the Islamic portfolios compared to conventional ones, but STOXX’s 33% limit on leverage and liquidity results in higher Sharpe ratios. These results suggest that screening details shape portfolio behavior and point to the need for one clear, shared Shariah rulebook so investors can compare products with confidence. From a business ethics view, our study also shows that strict and open screening brings a real “moral dividend”, as follows: smaller losses when markets fall and stronger risk-adjusted returns overall, linking faith-based rules to the wider talk on responsible investing and stakeholder welfare. Full article

This work develops a scenario-based policy framework for the prospective implementation of AAOIFI Shariah Standard No. 62 in global sukuk markets. The analysis suggests that immediate, rigorous enforcement would advance Shariah authenticity yet risk near-term destabilisation: issuance could retrench, the pricing premia could widen, and the rating treatment could bifurcate or even become inapplicable for instruments with pronounced risk-sharing. By contrast, calibrated sequencing, targeted legal reforms to perfect title transfer, and harmonised supervisory guidance can mitigate fragmentation and sustain investor confidence while re-anchoring sukuk to their risk-sharing foundations. Taken together, aligning religious fidelity with market pragmatism is achievable: a measured adoption of Standard 62 can reinforce the ethical underpinnings of Islamic capital markets without compromising their capacity for resilient growth. Full article

Ownership rights related to land and property represent a highly contentious matter in areas across Pakistan because female inheritors struggle to assert their property rights due to cultural practices along with unclear procedures and traditional document systems. The present government-controlled systems demonstrate inadequate proficiency along with safety protocols to execute fair inheritance distribution, mainly impacting marginalized populations. This research introduces a blockchain system known as the Land Registration and Inheritance Automation System (LRIAS) which prioritizes the female protection of inheritance privileges. The proposed system includes digitalizing the traditional paper-based land registration and inheritance process. The system ensures blockchain security through the implementation of MetaMask together with Web3.js for Ethereum transactions. The blockchain system distributes inheritances through programmed agreements which follow Shariah validation rules. The LRIAS establishes permanent and free-version records that show who owns land and who the legal heirs are. The system enables women to access their inheritance records through verifiable reliable data which cannot be altered. Through the system, authorities can verify inheritance claims and execute them without bureaucratic interference, which minimizes both legal disputes and family conflicts. Experimental tests show that the LRIAS succeeds in safeguarding women’s land inheritance claims and increasing confidence in legal inheritance procedures. Full article

This paper investigates and examines the role of the Muslim religious code of conduct known as Sharia or Islamic law in relation to the protection of children, in particular child neglect, within Australian Muslim communities. Australia has a secular and unified legal system. This legal system applies to all Australian citizens and residents, regardless of their religious, ethnic, or cultural background. However, it is argued here that for certain Culturally and Linguistically Diverse (CALD) communities, particularly Muslim communities, their personal, cultural, and religion code of conduct may be relevant in shaping their family relations. What this paper offers is an understanding of the possible relevance of Muslim law and culture in relation to personal law and family and community cultures of Muslim migrants in Australia. This article utilises a scoping review and doctrinal legal research methodology provide a broad overview of the existing literature, relevant legislation, limited Australian case law, and sources of Islamic law that respond, or are relevant, to child neglect in Muslim migrant communities in Australia. It is concluded that Muslim culture and religious teachings support very strong and positive family bonds, which is positive in relation to the protection of children. However, some cultural practices relating to forced marriage, child marriage, gender inequality and family violence may lead to child neglect and result in adverse effects for child protection within Muslim communities in Australia. Full article

This study investigates the contributions of five key sectors—insurance, materials, utilities, real estate, and transport—to the financial markets of six Gulf Cooperation Council (GCC) countries from 2004 to 2023. Grounded in the Sectoral Linkage Theory and Endogenous Growth Theory, the study employs a Panel Autoregressive Distributed Lag (Panel ARDL) model to examine both short-term and long-term sectoral impacts on financial market resilience. The findings reveal that the insurance and transport sectors offer short-term market stimulation, but lack persistent effects. Conversely, the materials, utilities, and real estate sectors exhibit strong, long-run contributions to financial stability and economic diversification. These results highlight the asymmetric impact of sectoral dynamics on market performance in resource-rich contexts. This research contributes to the literature by providing empirical evidence on sectoral interdependence in oil-dependent economies and highlights the importance of structural diversification for sustainable financial resilience. The study provides actionable insights for policymakers and investors seeking to enhance market resilience and reduce reliance on hydrocarbon revenues through targeted sectoral development. Full article

This study explores the key factors driving corporate social responsibility disclosure (CSR_DISC) by Takaful insurance companies (TKIs) in Saudi Arabia during and after the COVID-19 pandemic. We use content analysis and follow an unweighted scoring method to score the CSR_DISC index. Based on a sample of 26 Saudi-listed TKIs, for the period 2020–2024, we employ Poisson panel and negative binomial panel models to examine the interdependent relationships between CSR_DISCs and a set of corporate governance factors. We find that Saudi TKIs increased their CSR_DISCs in their financial reporting during and after the COVID-19 crisis. These findings confirm that board and firm size have a significant and negative effect on corporate CSR_DISC. However, the number of independent board members and female directors positively affect the extent of CSR_DISCs. Finally, the size of the audit committee and the Shariah supervisory board, frequency of board meetings, and profitability do not affect CSR_DISCs. Full article

As Saudi Arabia accelerates its Vision 2030 agenda, sustainable urban development has emerged as a critical pillar for economic diversification and climate resilience. This study investigates the role of green municipal bonds (GMBs) as a catalytic financing tool to address funding gaps in low-carbon infrastructure and renewable energy projects within the Kingdom’s arid, fossil-fuel-dependent context. Employing a mixed-methods approach—combining qualitative case studies of global best practices (e.g., Gothenburg, Cape Town) and quantitative analysis of Saudi municipal financial data—we evaluate the feasibility of GMBs in bridging fiscal shortfalls while aligning with environmental, social, and governance (ESG) criteria. The research introduces a novel conceptual framework that integrates regulatory harmonization, stakeholder coordination, and Shariah-compliant financial mechanisms, tailored to Saudi Arabia’s socio-economic and climatic realities. Key findings reveal that GMBs could cover 40% of municipal revenue gaps, attract global ESG investors, and reduce carbon emissions by 30% through projects such as NEOM’s renewable grids and Riyadh’s urban greening initiatives. By addressing underexplored intersections of fossil-fuel transitions, arid-climate governance, and Islamic finance, this study advances sustainable urban scholarship and offers actionable policy recommendations, including a phased roadmap for GMB adoption and the establishment of a Saudi Green Bond Taskforce. The results position Saudi Arabia as a regional leader in climate-resilient finance, providing replicable insights for resource-dependent economies pursuing carbon neutrality. Full article

The “Dana Gas” case is considered one of the pivotal cases in the development of the Islamic financial industry. The case raised concerns about the limits of legal certainty, particularly the judiciary’s right to exercise “ijtihad” (juristic interpretation). This study highlights the extent to which Islamic financial institutions adhere to their contractual obligations in good faith based on Shariah compliance. It also outlines how the judiciary preserves its inherent right to exercise due diligence in relation to protecting the public economic order and applying its authority in evaluating the practical application of Islamic finance contracts and instruments. Based on the dialectical approach, this article analyzes the case by presenting the background of the dispute and its legal dimensions, emphasizing the necessity of achieving legal certainty in the Islamic financial industry. This study also advocates for applying judicial jurisprudence in resolving disputes related to sukuk. Finally, it unfolds the legal lessons learned from this case. This study concludes that more effort should be made to localize judicial jurisdiction in resolving disputes related to sukuk, regulating the process of selecting the applicable law, and to develop the legal infrastructure in systems participating in Islamic finance. Accordingly, this study highlights the significant role that Shariah standards could play in this field in the future. Full article

The purpose of this study is to analyze the factors influencing the attitudes of women investors in the context of Islamic unit trust funds in Malaysia, with a focus on women’s religiosity and on the perceived religiosity of fund providers. Using the UTAUT model, the study examines data from a survey of 263 Muslim women in Malaysia and considers seven key factors: risk aversion, religiosity, price sensitivity, and Islamic financial literacy on the side of the investing women and past performance, perceived religiosity, and perceived risk on the side of the fund providers. The findings indicate that the perceived religiosity of a fund provider has a significant and positive impact on attitude, with positive moderating effects on the women’s own religiosity and Islamic financial literacy, and a negative moderating effect on the women’s price sensitivity. The study also discusses the practical implications of these findings and offers recommendations for fund providers. Full article

This study examines the relationship between Environmental, Social, and Governance (ESG) disclosures and perceived financial performance within the context of Islamic finance, with a focus on Maqasid al-Shariah—the overarching goals of Islamic law. Using a quantitative approach, the study surveyed 350 stakeholders in Saudi Arabia’s Islamic finance sector, including corporate managers, investment professionals, and financial analysts, over a six-month period (May to October 2024). The findings indicate that stakeholders perceive a positive relationship between ESG disclosures and financial performance, particularly when companies align their ESG practices with Islamic finance principles. However, the study does not measure actual financial performance; rather, it assesses stakeholders’ perceptions of ESG’s influence on corporate governance, risk management, and investment attractiveness. Results suggest that companies integrating ESG principles with Maqasid al-Shariah foster greater stakeholder trust, enhance corporate responsibility, and promote long-term sustainability. However, variations in trust and investment decisions exist based on industry type, ESG disclosure levels, and demographic factors such as experience and familiarity with ESG practices. The study provides novel insights into how Islamic finance principles shape ESG disclosure practices, offering practical recommendations for improving corporate governance and sustainability. By emphasizing transparency, ethical investment, and regulatory alignment, these findings contribute to ongoing discussions on sustainable finance and the role of ESG in shaping Islamic financial institutions. Full article