Islamic Financial Contracts

We examine the effect of trust on financial investment and contracting decisions in a micro-economic environment where trust is exogenous. Using hand-collected data on European venture capital, we show that the Eurobarometer measure of trust among nations significantly affects investment decisions. This holds even after controlling for investor and company fixed effects, geographic distance, information and transaction costs. The national identity of venture capital firms' individual partners further contributes to the effect of trust. Education and work experience reduce the effect of trust but do not eliminate it. We also examine the relationship between trust and sophisticated contracts involving contingent control rights and find that, even after controlling for endogeneity, they are complements, not substitutes.

We consider a Stackelberg game, where a financially constrained leader competes with a "deep pocket" follower, and analyze the trade-off between a financial and a strategic advantage for both the design of financial contracts and market structure.

We consider a Stackelberg game, where a financially constrained leader competes with a "deep pocket" follower, and analyze the trade-off between a financial and a strategic advantage for both the design of financial contracts and market structure.

This study examined the relevance of Islamic financing Instruments on COVID 19 Recession as it affects different sectors of the economy in Nigeria. A comparative analyses of the Islamic Finance Instruments such as Musharakah, (Equity Sharing) ,Mudarabah, (Silent partnership),Murabahah(Cost Plus),Salam, (Forward Sale) , Istisna (Manufacturing Financing), Ijarah (Leasing), Partnership) Al-Musaqat, (Contract of Irrigation) Qard Hassan (Beneficence Loans) ,Wakalah, (Agency contract) funds for various sectors of the Economy. This paper relies heavily on secondary data through literature reviews and research works of authors and researchers on Islamic Finance and Economic Recession; and concluded that Sukuk, Ijarah, Al-Musaqat, Salam, Qard Hassan, Istisna, Musharakah, Mudarabah, Wakalah,and Kafalah financing modes were essential to providing alternative sources of financing the Economy during recession. We recommended that Islamic Banks should be aggressive in promoting the usefulness of the Islamic Financing instruments to Governments, Manufacturing Companies, firms an d Small Business owners in order to cushion the negative effects of POST COVID 19 Recession on the Economy.

The purpose of this study was to investigate the validity of financial inclusion in Sudan during the economic crisis, the American sanctions, the developments in the field of communications technology, and the effect of the Islamic banking system and its products on financial inclusion; this should be matched with the rapid international efforts to promote financial inclusion, which is considered to be one of the pillars of sustainable development and economic growth and as an important factor to combat poverty. The researcher followed the descriptive-analytical method to attain the objectives of the study, which represented knowing the real situation of financial inclusion in Sudan. In addition to its indicators, as reflected by intentional data, is the Arab region, and as shown by the efforts exerted by the government and the working banks. The study revealed that financial inclusion in Sudan is very low for several reasons: Sudan needs to exert great efforts to attain economic recovery, as it is considered an important factor for financial inclusion; technological communications alone are not enough to realize financial inclusion. The study also had not shown any effect of the Islamic banking system on the promotion of financial inclusion. The study showed furthermore that poverty and American economic sanctions are among the reasons for low financial inclusion; moreover, the economic crisis and the armed conflicts aggravated the situation for financial inclusion. The study proposed several key recommendations. The primary ones are the automation of services by government agencies and the mandatory adoption of electronic payment gateways for government revenue payments. Financial authorities should highlight the direct digital deposit of wage payments into bank accounts of both government and private institutions. Additionally, there is a need to increase the proportion of funds allocated from banks' portfolios to microfinance.

تهدف هذه الدراسة إلى تحديد مدى تبني البنوك والشبابيك الإسلامية في الجزائر للمعايير الأخلاقية المحاسبية. وذلك بإجراء مقابلات شبه منظمة مع موظفي عينة من البنوك والشبابيك الإسلامية. وقد كشفت نتائج هذه الدراسة أنه توجد دراية لدى البنوك والشبابيك الإسلامية بالمعايير الأخلاقية المحاسبية بتبنيها مدونات أخلاقية ودلائل إجراءات داخلية. إلا أنه يلاحظ غياب ميثاق أخلاقي موحد للقطاع المصرفي. أوصت الدراسة بتطوير ميثاق أخلاقي مشترك للقطاع البنكي في الجزائر وتعزيز التعاون مع الجهات التنظيمية لتطوير اللوائح التي تحكم الممارسات الأخلاقية في القطاع المصرفي، وذلك لمواجهة التحديات وضمان تطبيق هذه المبادئ. كلمات مفتاحية: بنوك وشبابيك إسلامية؛ صيرفة إسلامية؛ معايير أخلاقية محاسبية؛ ميثاق أخلاقيات This paper attempts to determine the extent to which Islamic banks and windows in Algeria adopt ethical accounting standards. We conducted semi-structured interviews with employees from a sample of Islamic banks and windows. The findings revealed that Islamic banks and windows are aware of accounting ethical standards, as evidenced by the adoption of ethical codes and internal procedure manuals. However, there is no unified ethical charter for the banking sector. The study recommended developing a shared ethical charter for the Algerian banking sector and enhancing collaboration with regulatory bodies to improve regulations governing ethical practices in the banking sector to address challenges and ensure the application of these principles. Keywords: Islamic banks and windows; Islamic finance; Ethical accounting standards; Code of professional ethics

The authors compare the al-Bay' Bithaman Ajil (BBA) and the Musharakah Mutanaqisah Partnership (MMP) contracts. The BBA, a murabahah contract, was argued to be problematic and even unIslamic for long-duration contracts. The MMP contract which is a combination of musharakah (partnership) and ijarah (rental) contracts was argued to be a more appealing alternative. In the MMP, the equity of the financier diminishes progressively while, in accordance, the equity of the customer grows. Unlike for the BBA contract, scholars are consensus on the Shari'ah permissibility of the MMP contract. A mathematical derivation for the MMP showed that the formula for the MMP to be similar to the formula used in conventional loans but nonetheless with the interest rate replaced with the rental rate. Therefore, one major advantage of MMP was argued to be that it can avoid interest (riba) totally. Also, unlike under the BBA, the balance of financing, at any point in time, never exceeds the original price of the asset. Nevertheless, some practical issues need to be addressed particularly the means of estimating the rental rate, tax issues, defaults and asset value appreciation. This paper discusses these issues. When not profitable for the banks, when rental rates fall short of interest rates, the MMP can be implemented through cooperatives, which can be also an investment avenue for members.

Deposit Insurance Scheme (DIS) has assumed the position of universal importance as a consumer protection scheme for the depositors and investors in the banking sector of nations' economy. The role of Islamic deposit insurance is to create a level playing field between Islamic and conventional banks apart from maintaining a foundation for public confidence in the banks it is also to reinforce the consumer protection aspects that are inherent in Islam. However virtually all the existing DISs are established on legal, regulatory and operational framework devoid of any Islamic bias, meanwhile the Islamic banks and their customers are as much in need of this protection, assurance and sustenance of confidence produced by the scheme as their conventional counterparts. The research therefore examines some of the controversies in the operation of Deposit Insurance as well as its compatibility with Shariah rules under which Islamic banks operate. It looks into the needs and the extent to which Islamic banks can participate into the scheme. The paper concludes that objectives of DIS is compatible with Shariah but also finds out that its designs and some of its operations need to be adjusted for Islamic banks to fully integrated without impairing the provisions of Shariah.

Al-Qur'an merupakan kitab suci umat Islam yang dipercaya sebagai Kalamullah yang diturunkan kepada Nabi Muhammad SAW melalui perantaraan Malaikat Jibril. Sebagai sumber utama ajaran Islam, Al-Qur'an tidak hanya berperan sebagai pedoman hidup, tetapi juga sebagai dasar hukum yang mengatur segala aspek kehidupan manusia, baik dalam hal ibadah, moral, maupun sosial. Sebagai kitab yang diturunkan secara bertahap selama masa kenabian Nabi Muhammad SAW, 1 proses pewahyuan Al-Qur'an memiliki sejarah yang kaya dan penuh dengan hikmah, baik dalam konteks spiritual maupun sosial. Pada masa Nabi Muhammad SAW, Al-Qur'an belum dihimpun dalam satu mushaf seperti yang dikenal saat ini. Proses pewahyuan yang bertahap membuat Al-Qur'an disampaikan kepada umat sesuai dengan peristiwa dan kebutuhan yang dihadapi oleh masyarakat pada saat itu. Nabi Muhammad SAW memiliki peran yang sangat penting dalam memastikan setiap ayat Al-Qur'an disampaikan dengan tepat dan dipahami oleh para sahabat. Para sahabat, sebagai pengikut setia Nabi, memainkan peran penting dalam menjaga wahyu melalui dua cara utama: penghafalan dan penulisan. Mereka menghafal ayat-ayat Al-Qur'an, yang kemudian mereka sampaikan secara lisan, serta menuliskannya pada berbagai media sederhana yang tersedia pada masa itu, seperti kulit binatang, pelepah kurma, dan batu. Meskipun penulisan Al-Qur'an sudah dimulai sejak masa Nabi Muhammad SAW, metode utama yang digunakan untuk menjaga wahyu adalah penghafalan. Nabi Muhammad SAW sendiri selalu memastikan bahwa para sahabat menghafal wahyu dengan benar, dan beliau pun mengajarkan serta memerintahkan para sahabat yang dikenal memiliki kemampuan menghafal yang kuat untuk menyebarluaskan ayat-ayat

Purpose-This study aims to explore the prospects of istijrar financing in the Islamic banking of Bangladesh. Istijrar is a supply sale contract that facilitates recurrent transactions under a master agreement without needing a deal-to-deal agreement. Murabahah financing in Bangladesh is being criticized for Shari'ah violations, which can be minimized if istijrar financing is integrated and applied. Design/methodology/approach-The study uses a qualitative approach, primarily using a semistructured interview method to collect the primary data. The study conducted 13 one-to-one interviews with leading Islamic banking experts in the country, including Shari'ah scholars, Islamic bankers and regulators. Besides, the study consults with classical and contemporary fiqhi sources to realize the status of istijrar sale in Islamic law. Thematic analysis is performed to explore the qualitative data. Findings-The study finds that istijrar financing has great prospects in the Islamic banking of Bangladesh. Istijrar is applicable in consumer financing and can be offered as an alternative or supplement to murabahah. Also, postimport murabahah financing can be structured with istijrar, while it can also be used in export financing. Besides, a few challenges should be dealt with before offering istijrar, such as proper structure, lack of literacy, stakeholders' awareness, Shari'ah and regulatory approval and alignment with the law of the land. Practical implications-Murabahah financing is dominant on the asset side of Islamic banks' balance sheets in Bangladesh. Murabahah practice in Bangladesh is frequently criticized for some possible Shari'ah violations. Also, more documents are needed for each murabahah operation, which eventually accelerates the costs. Applying istijrar would minimize these issues as it does not require a new contract for each deal. Multiple supplies can be done under a single agreement. Besides, istijrar reduces documentation hassle and transaction costs. Istijrar would be an easy practice and benefit the bank and its clients. Originality/value-This study contributes to the body of knowledge and the Islamic banking industry. The existing studies have not adequately addressed the potential of istijrar in Islamic banking. In addition, this study will be an eye-opener for Islamic bankers to develop new products with istijrar.

هدفت هذه الدراسةالى بيان أثر كفاءة الرقابةاملالية على
تنميةاإليرادات غيرالنفطيةفي جمهورية جنوب السودان.
تمثلت مشكلة الدراسة في مدى تأثير كفاءة الرقابة املالية
تبعت في هذه

على حصيلة اإليرادات غير النفطية، وأ
الدراسةاملنهجالوصفي التحليليلتحليل البيانات.
تكون مجتمع الدراسة من عدد من اإلدارات اإليرادية
التابعة لوزارة املالية والتخطيط اإلقتصادي بجوقا، أما
عينة الدراسة فتمثلت في عدد )160 ترتبط
ً
( موظفا
وظائفهم بعمليةرقابةوتحصيل اإليراداتغيرالنفطية،تم
توزلع عدد)160( إستبانة عليهم.
توصلت الدراسة الى أن لكفاءة الرقابة املالية أثر إيجابي
على تنمية اإليرادات غير النفطية في جمهورية جنوب
السودان، وأن تطبيق قوانين حد من
ولوائح الرقابةاملاليةت
املمارسات السالبة وتساعد في إكتشاف حاالت الغش
واإلختالس وتزيد حصيلةاإليرادات غير النفطية .
خلصتالدراسةالىمجموعةمن التوصيات م ها،ضرورة
ترقية كفاءة الرقابة املالية من خالل تطوير أنظمة الرقابة
املالية، اإلرتقاء بمستوى الرقابة املالية من إطار الرقابة
املاليةالتقليديةالىمستوى رقابةوتقويم األداء التي تتعلق
بالكفاءة والفعالية والعمل على تطبيق أنظمة حديثة في
الرقابة على اإليرادات كنظام التحصيل األلكتروني.
الكلمات املفتاحية: الرقابة املالية، اإليرادات العامة،
اإليرادات غيرالبترولية، الكفاءة، األداء.

Human being is endowed with the instinct to desire and possess property.To regulate and control human urge for property Islamic law identifies two basic ways of acquisition of property; acquisitionthrough one’s own efforts and acquisition throughinheritance. However, a person can dispose off his/her property in any way he likes, provided that it does not violate legal principles and his transaction is given effect during his life time. Hibah is one of the meritorious ways of disposal of property. Therefore, this paper attempts to present a analysis of the structural elements of hibah, its, legality and conditions. It also delineatesthe revocability or otherwise of hibahcontract.

The purpose of this study is to investigate two important issues in ijārah-based financing in Pakistan's Islamic banking industry. First, why ijārah contract is permissible with the condition of advance security deposit? Second, how Islamic banks can reduce the rental amount in case of increasing the advance security deposit? Is it a valid practice in the light of Sharī'ah? To investigate these issues, the current study has used semi-structured interviews as an adaptable method to gather data from five Islamic banks of Pakistan. It was observed that the banks treat the required advance amount mainly in four ways: advance rent, purchase price, hamish-jiddiyah (earnest money) and security deposit. The findings revealed that the ijārah-based financing with an advance security deposit is permissible provided that the lessor should not decrease the rental amount due to an increase in advance deposit, and vice versa. Understanding of these issues can strengthen the customers' confidence in the Islamic banking industry in general and ijārah-based financing specifically. This will also substantiate the Sharī'ah principles in ijārah-based transactions. This study contributes to addressing the issues of the advance security deposit in an ijārah contract as per Islamic law.

This  research  paper  aims  to  assess  the  impact  of  applying  Islamic  accounting  standards  on  the performance  of  Islamic  banks.  Several  of  these  standards  have  been  identified,  and  various  indicators  have been used to measure the performance of Qatar Islamic Bank as a case study. The importance of the research paper  lies  in  guiding  the  financial  and  regulatory  policies  of  Islamic  banks  towards  the  significance  of
adhering  to the  application of  Islamic  accounting  standards  and  making  sustainable  managerial  decisions to enhance  the  performance  of  these  banks,The  study's  findings,  analyzing  the  performance  of  Qatar  Islamic Bank  and  identifying  discrepancies  in  the  application  of  standards  by  understanding  their  effects,  serve  as recommendations and a practical guide for other Islamic banks. This aids in recognizing the consequences of implementing these standards and addressing potential irregularities, thestudy found that Qatar Islamic Bank relies  on  Financial  Accounting  Standards  (FAS)  issued  by  the  Accounting  and  Auditing  Organization  for Islamic  Financial  Institutions  (AAOIFI),  modified  by  the  Qatar  Central  Bank,  in  preparing  its  financial  and accounting  reports.  Results  indicated  the  bank's  adherence  to  the  standards  of  Mudarabah,  Murabaha,  and Ijarah  ending  with  ownership.  Analysis  of  financial  statements  showed  a  strong  performance  by  the  bank, accompanied by  an increase  in  profitability. The  study  recommends  diversification in  other  forms  of  Islamic financing, particularly in Mudarabah and Partnership .Keywords: Islamic Accounting Standards; AAOIFI; Qatar Bank Performance; Islamic banks; financial reports.

The study seeks to define the importance of documentary credit as one of the indirect financing tools in Islamic banks, especially the import and export, as a case study of Al-Rajhi Bank in Riyadh in the Kingdom of Saudi Arabia, using simple linear regression during the period 2000-2017, the study found that documentary accreditation technology is suitable for Islamic banks if they are adjusted according to Shariah controls, it recommended to pay attention to Islamic banking work, especially in financing the foreign trade sector, because of the guarantees it achieves for the commodity and the reduction of financing risks.

The study seeks to define the importance of documentary credit as one of the indirect financing tools in Islamic banks, especially the import and export, as a case study of Al-Rajhi Bank in Riyadh in the Kingdom of Saudi Arabia, using simple linear regression during the period 2000-2017, the study found that documentary accreditation technology is suitable for Islamic banks if they are adjusted according to Shariah controls, it recommended to pay attention to Islamic banking work, especially in financing the foreign trade sector, because of the guarantees it achieves for the commodity and the reduction of financing risks.

As people are acquainted with the different economic systems of the world, it has been observable that no economic system is correctly working to fulfil the economic requirements and needs of human beings.

Human needs are not only confined to fulfilling basic needs such as food, shelter, and clothing. They are very much vast in nature. Human beings also engage in many economic activities for their satisfaction, such as purchasing property, selling goods and services, investing, borrowing loans, and others.

Economics, in general, signifies the study of human behaviour in using resources to satisfy wants. It deals with the human management of the earthly resources regarding consumption, production, and distribution.

Concisely, Islamic economics is defined as the knowledge and application of injunctions and rules of the Sharīʿah that prevent injustice in acquiring and disposing material resources, so that, man could perform his obligations to Allah S.W.T. and society.

Islamic economics focuses on all aspects of economic activities. It neither confines to profit-making as practised in materialism nor sole individual ownership as advocated by capitalism.

On the other hand, Islam stresses the equal distribution of goods and services among people in society. It balances both individual and societal interests. The Islamic economic system has the strength to overcome the weaknesses of both socialism and capitalism.

Thus, economics in Islam is based on the concept that Allah S.W.T. Owns everything in this world. All properties, wealth and resources are God’s ownership, and He disposes them according to His Will. Human beings should exploit these resources and have power over them only as directed by Allah’s laws and His will.

The construction sector in Malaysia grew at 8.1% from 2013 to 2016 supported by the growth in commercial property and the residential sectors at 12.5% and 9.8% respectively and has been on an increasing trend since the last four years (2013: 10.9%, 2014: 11.6%, 2015: 12.1 %, 2016: 10.3%) (Department of Statistics Malaysia, 2016). The Knight and Frank survey 2015 reported that commercial property financing comprised of 60% of properties priced at more than RM2 million and another 40% for properties priced below RM2 million. Commercial property prices have been on an increasing trend due to increased cost and interest rates as well as uncertain economic fundamentals. For Malaysia, interest rates (BLR) differ across banks ranging from 6.6% to 6.9% and the base rate (BR) ranges from 3.0% to 4.1% due to economic bubbles. Commercial property financing remains a vital issue for borrowers of both conventional and Islamic banks. For borrowers of conventional banks, an increase in interest ra...

This paper reviews the insurance regulatory framework in the Gulf region, with a focus on conduct of business regulations. The paper also looks at the impact of the COVID-19 pandemic, which has impacted the insurance business and caused disruptions in its operations. In shifting their attention on business survival and pandemic management, insurance providers may have put less priority on their activities that ensure fair treatment of customers. The paper is built around two objectives: 1) to assess the conduct of business insurance regulation in the Gulf region against the best practices; and 2) to identify the supervisory measures taken by the Gulf regulatory and supervisory authorities (RSAs) to confront the outbreak of COVID-19 pandemic, with focus on conduct of business. The International Association of Insurance Supervisors (IAIS) and the Islamic Financial Services Board (IFSB) are adopted in the research to derive the core criteria of the best practice and then compared against the GCC insurance legislations. It was found that while five GCC countries have in place requirements pertaining to conduct of business, one country does not. Takaful conduct of business is also an area that could be improved, in particular with regard to ongoing disclosure of information during the contract period. In relation to COVID-19, RSAs have issued various insurance supervisory measures that promote fair treatment of customers, e.g., extension of the policy coverage and confirming the policy wording of a health policy. Four RSAs (UAE, Saudi Arabia, Oman and Qatar), is seen actively publishing materials to ensure both the industry's stability and consumer protection. Maintaining consumer protection is a key responsibility for any regulator, and intervention in uncertain times goes a long way in ensuring fair treatment of customers.

This paper reviews the regulatory developments of takaful and retakaful windows in the international regulatory bodies and selected jurisdictions. The takaful and retakaful window operations as a business model has been adopted in some countries such as Indonesia, Nigeria, Pakistan and Turkey to achieve certain objectives, including encouraging financial inclusion, tapping a new market segment, and boosting competitiveness. On the flip side, takaful and retakaful window operations are banned by the regulators in other countries such as Brunei, Qatar and Saudi Arabia due to concerns on adherence to Shariah governance, and the performance of standalone full-fledged takaful operators, which have the capability of handling the demands of their respective markets. The paper investigates the takaful and retakaful window operations in the six jurisdictions i.e. Indonesia, Pakistan, Turkey, Nigeria, Kenya and Bangladesh. It also discusses the current regulatory development of transferring the takaful and retakaful windows business into full-fledged takaful players in Indonesia and Turkey, and the decision to maintain the windows model as the ideal model in Pakistan.

This paper aims to contribute to the literature debate on the regulators' dilemma affecting international financial regulations focusing on the banking regulation of dual financial systems. In this regard, the paper provides a new taxonomy of Islamic Financial Systems considering the banking regulation as a driver for the classification and a more detailed definition of dual financial systems. The literature review reveals the existence of different financial system structures affected by socio-cultural biases due to different characteristics of various countries and financial systems globally. The risk of regulatory arbitrage or over-regulation phenomena is high, stifling the growth and the level playing field for both some systemically financial systems.

The COVID-19 crisis has devastatingly affected the Small and Medium Enterprise (SMEs) cash flow. Subsequently, the employee was laid off as the SMEs could not sustain themselves. To address these issues, governments globally embrace moratoriums to alleviate the hardship. However, there is a clash between the borrowers' expectations, the government agenda, and the current banking system. Therefore, this study undertakes a study on why there is a need for Islamic financial institutions to undertake a similar approach to conventional banking in discharging their moratoriums. In addition, the study shall also suggest possible alternatives that would protect both the customers' and the Banks' interests while upholding Maqasid-Shariah. The study applies a case study approach. The primary data was collected through in-depth interviews. The applied thematic analysis (ATA) was then employed in analyzing the narrative provided by the participants. The findings conclude that the mo...

MTA berkembang di tengah masyarakat Nusantara yang mayoritas kaum musliminnya adalah syafi’iyah. Sedangkan MTA tidak bermadzhab empat, tapi bermadzhab Al-Qur’an dan Sunnah, sebagaimana yang dikatakan oleh Ustadz Ahmad Sukino sebagai pimpinan MTA. Pernyataan beliau ini menjadi sesuatu yang menarik untuk diteliti, untuk mengetahui bagaimanakah metode MTA dalam menyikapi teks-teks al-Qur’an atau Sunnah yang dzahirnya kontradiksi. Peneliti di sini menjadikan teks-teks hadis tentang musik sebagai kajian utamanya. Kemudian metode MTA tersebut dikomparasikan dengan metode ulama syafi’iyah yang merupakan madzhab mayoritas kaum muslimin di Indonesia. Penelitian ini menggunakan metode diskriptif komparatif. Hasilnya: Metode MTA dalam menyikapi hadits-hadits tentang musik adalah mengamalkan hadits-hadits yang membolehkan dan mengenyampingkan hadits-hadits yang mengharamkan, meskipun hadits-haditsnya sahih dan meskipun terdapat padanya lafadz sharih yang mengharamkannya. Adapun metode Ulama sya...

The COVID-19 crisis has devastatingly affected the Small and Medium Enterprise (SMEs) cash flow. Subsequently, the employee was laid off as the SMEs could not sustain themselves. To address these issues, governments globally embrace moratoriums to alleviate the hardship. However, there is a clash between the borrowers' expectations, the government agenda, and the current banking system. Therefore, this study undertakes a study on why there is a need for Islamic financial institutions to undertake a similar approach to conventional banking in discharging their moratoriums. In addition, the study shall also suggest possible alternatives that would protect both the customers' and the Banks' interests while upholding Maqasid-Shariah. The study applies a case study approach. The primary data was collected through in-depth interviews. The applied thematic analysis (ATA) was then employed in analyzing the narrative provided by the participants. The findings conclude that the mo...

Ibra' (rebate) is a word used in Islamic banking that refers to Islamic banks offering refunds in exchange for the customer making an early settlement prior to a specified situation. After Bank Negara Malaysia issued a guideline on providing Ibra' to all Islamic financial institutions, the applicability of Ibra became widely accepted. There are several concerns that come from the use of ibra' and how ibra' has been implemented by Islamic banks, and this paper investigates these issues utilizing library research and case studies. Because of the Islamic banks' policy, real-world examples of how ibra' is used in Islamic banks are few. This paper traces and discusses that development.

Indonesia is an agrarian country. About 13% of the total land area in Indonesia is used for agriculture. Then, about 5% of them are located on Java Island, approximately 7.1 million hectares the area of this agricultural land in its management is more managed by the community, with a variety of akad done. Starting from rent for a season, a year even buy. For people who are farmed but do not have farmland, to buy will feel heavy, because the price of land will continue to crawl up from year to year. The solution is the lease. Like a rental in general, tenants only have the right to make use of not selling. But according to some Ahaadeeth rented farmland was not allowed by the prophet. But using the analytical descriptive method of the study replied that the lease of farmland forbidden by the prophet was rent by paying using the harvest. But no one can guarantee this land can be harvested or not. From here comes speculation, whereas in Islam we are forbidden for speculation. So the re...

Commodity MurābaÍah prevalent in Islamic banks resembles Tawarruq contract and MurābaÍah lil Amir bi alshira. Classical fiqh used to be a trust sale in which known profit was charged above the cost price. Islamic banks use Commodity MurābaÍah as a tool for managing interbank liquidity between the banks. There are mainly two methods to conclude it, i.e., finance giving and finance taking. For the sake of concluding this financing, metals are used as underlying commodities. It is reported that these metals never change hands or possessions. The same metals are sold as underlying commodities numerous times. The deposit based on these metals gives fixed returns to the Financial Institutions. Islamic Banks conclude these transactions with Conventional Banks most of the time. In 2020, the Islamic Development Bank and Dubai Islamic Bank decided to invest USD 500 million each in commodity MurābaÍah financing. The volume of such contracts has increased by more than USD 70 billion; till 2019, the total volume reached up to USD 2.88 trillion. There are reports of its increase of 12 % per annum. Commodity MurābaÍah, a last variant of MurābaÍah to the Purchase Orderer, is doubted by many and needs thorough analysis from the perspective of SharÊ'ah rulings. This research aims to analyze in detail the questions on the validity of Commodity MurābaÍah. It employs a qualitative research method and analyses the commodity MurābaÍah from the perspective of Islamic jurisprudence principles. The Critical Study Of Commodity … findings of the article show some serious issues with this product.

The objective of this paper is to examine the influence of Islamic financing on the performance of small-medium enterprises in Lasanod Somalia. Many businesses obtain financings such as Murabaha, Microfinance, and Qard Al Hassana from Islamic banks operating in Somalia to raise funds and capital required to expand and run their businesses smoothly. This study employs a quantitative research approach. A total of 148 questionnaires were distributed and collected from Small Medium Enterprises owners and workers in Lasanod Somalia who obtained Islamic financing from local Islamic banks in Somalia. The responses were analyzed using SPSS 21. Descriptive statistics, correlation analysis, and bivariate regression analysis were conducted to investigate the impact of Islamic financing on the performances of businesses operating in Somalia. Small Medium Enterprises owners and workers believe that Islamic financing has helped their businesses to obtain the funds needed for their businesses to grow and expand beyond existing markets. Furthermore, this study suggests there is a positive relationship between Islamic financing and business performance. The finding of this paper is statistically significant.

Human being is endowed with the instinct to desire and possess property.To regulate and control human urge for property Islamic law identifies two basic ways of acquisition of property; acquisitionthrough one’s own efforts and acquisition throughinheritance. However, a person can dispose off his/her property in any way he likes, provided that it does not violate legal principles and his transaction is given effect during his life time. Hibah is one of the meritorious ways of disposal of property. Therefore, this paper attempts to present a analysis of the structural elements of hibah, its, legality and conditions. It also delineatesthe revocability or otherwise of hibahcontract.

The objective of this paper is to examine the influence of Islamic financing on the performance of small-medium enterprises in Lasanod Somalia. Many businesses obtain financings such as Murabaha, Microfinance, and Qard Al Hassana from Islamic banks operating in Somalia to raise funds and capital required to expand and run their businesses smoothly. This study employs a quantitative research approach. A total of 148 questionnaires were distributed and collected from Small Medium Enterprises owners and workers in Lasanod Somalia who obtained Islamic financing from local Islamic banks in Somalia. The responses were analyzed using SPSS 21. Descriptive statistics, correlation analysis, and bivariate regression analysis were conducted to investigate the impact of Islamic financing on the performances of businesses operating in Somalia. Small Medium Enterprises owners and workers believe that Islamic financing has helped their businesses to obtain the funds needed for their businesses to grow and expand beyond existing markets. Furthermore, this study suggests there is a positive relationship between Islamic financing and business performance. The finding of this paper is statistically significant.

Human being is endowed with the instinct to desire and possess property.To regulate and control human urge for property Islamic law identifies two basic ways of acquisition of property; acquisitionthrough one’s own efforts and acquisition throughinheritance. However, a person can dispose off his/her property in any way he likes, provided that it does not violate legal principles and his transaction is given effect during his life time. Hibah is one of the meritorious ways of disposal of property. Therefore, this paper attempts to present a analysis of the structural elements of hibah, its, legality and conditions. It also delineatesthe revocability or otherwise of hibahcontract.

We analyze how the availability of internal funds affects a firm's investment. We show that under fairly standard assumptions, the relation is U-shaped: investment increases monotonically with internal funds if they are large but decreases if they are very low. We discuss the tradeoff that generates the U-shape, and argue that models predicting an always increasing relation are based on restrictive assumptions. Using a large data set, we find strong empirical support for our predictions. Our results qualify conventional wisdom about the effects of financial constraints on investment behavior, and help to explain seemingly conflicting findings in the empirical literature.

We analyze how the availability of internal funds affects a firm's investment. We show that under fairly standard assumptions, the relation is U-shaped: investment increases monotonically with internal funds if they are large but decreases if they are very low. We discuss the tradeoff that generates the U-shape, and argue that models predicting an always increasing relation are based on restrictive assumptions. Using a large data set, we find strong empirical support for our predictions. Our results qualify conventional wisdom about the effects of financial constraints on investment behavior, and help to explain seemingly conflicting findings in the empirical literature.

The need for Islamic accounting that deals with Islamic financial instruments has prompted AAOIFI recently to introduce Financial Accounting Standard No. 17 on investments in securities (AAOIFI FAS 17, 2003). The need for a codified Islamic accounting standard are ...

This paper addresses the issues of financial performance measurement and proposes the need for a profit sharing distribution policy of Islamic financial institutions. A conceptual analysis of the integral concepts of performance measurement, such as income, capital and cost of funds, is done in view of the existing accounting assumptions and principles. The importance of profit-sharing ratio and the diversity of financing contracts explained in this paper affirms the need for a more comprehensive analysis of the financial performance of Islamic financial institutions. A portfolio return model of Islamic financing contracts is proposed for the financial institutions. A profit distribution policy that states and discloses the manner of profit determination and distribution between the Islamic financial institution and the investment depositors is proposed. The policy is expected to reduce information asymmetry in meeting investment account holders ’ expectations. Both the accrual and ...

Many Muslims, for religious convictions are reluctant to take up conventional insurance as it is deemed to have uncertainty, gambling and interest, which are prohibited by religion. The purpose of this paper is to examine Islamic Insurance in Algeria and analyse a suitable regulatory framework. One can argue that the trend towards Islamic insurance in Algeria contributes to raising the level of insurance culture, which will help to mobilize more savings. After studying the topic, we can provide a road map to better regulating the Islamic insurance market because the Islamic companies could not function in the absence of an Islamic insurance act. In the absence of such a framework, regulators often treat Islamic insurance companies similarly to conventional insurance companies, which hinders the development of Islamic Insurance Industry.

This paper reviews the regulatory developments of takaful and retakaful windows in the international regulatory bodies and selected jurisdictions. The takaful and retakaful window operations as a business model has been adopted in some countries such as Indonesia, Nigeria, Pakistan and Turkey to achieve certain objectives, including encouraging financial inclusion, tapping a new market segment, and boosting competitiveness. On the flip side, takaful and retakaful window operations are banned by the regulators in other countries such as Brunei, Qatar and Saudi Arabia due to concerns on adherence to Shariah governance, and the performance of standalone full-fledged takaful operators, which have the capability of handling the demands of their respective markets. The paper investigates the takaful and retakaful window operations in the six jurisdictions i.e. Indonesia, Pakistan, Turkey, Nigeria, Kenya and Bangladesh. It also discusses the current regulatory development of transferring the takaful and retakaful windows business into full-fledged takaful players in Indonesia and Turkey, and the decision to maintain the windows model as the ideal model in Pakistan.

Orang tua memiliki cara masing-masing dalam mendidik anak. Peran utama seorang orang tua dalam memberikan pendidikan adalah membentuk anak untuk menjadi insan yang berbudi pekerti. Orang tua merupakan pendidikan pertama bagi anak. Segala tindak tanduk orang tua akan diimitasi oleh anak, baik itu buruk maupun benar. Orang tua harus ekstra hati-hati dalam mengawasi perkembangan anak. Mereka bertangguung jawab dalam pendidikan, pengawasan, dan pemenuhan kebutuhan anak. Apabla kebutuhan tersebut mampu menunjang pendidikan anak, maka oeran orang tua adalah memberikan segala esuatu yang terbaik bagi generasinya. Oleh karenanya peran orang tua dalam pendidikan anak harus sesuai dengan norma-norma dan nilai-nilai agama, bangsa, dan negara.

Seiring dengan kemajuan teknologi digital dalam perbankan syari'ah yang mana uang menjadi obyek utama perbankan mengalami perubahan yang cukup signifikan dan bahkan lebih modern. Credit Card atau bithaqah i'timan adalah kartu yang diterbitkan oleh Bank atau lembaga lain yang mengizinkan bagi pemilik (pemegang) kartu untuk mendapatkan kebutuhannya dengan cara pinjaman. Dalam kartu kredit syariah terdapat beberapa macam akad, meliputi Akad kafalah; Akad qardh; dan Akad ijarah yang semuanya memiliki landasan syar'i Al-Qur'an dan As-Sunnah. Secara umum, batasan kartu kredit syariah diperbolehkan selama tidak menimbulkan riba; tidak digunakan untuk transaksi yang tidak sesuai dengan syariah; tidak mendorong pengeluaran yang berlebihan (israf), dengan cara antara lain menetapkan pagu maksimal pembelanjaan dan tidak memberikan fasilitas yang bertentangan dengan syariah. Meskipun menjadi perdebatan para ulama ahli fiqh, namun adanya percampuran akad dalam kartu kredit syari'ah tidak sampai menjadikannya haram, hal ini didukung oleh pendapat ulama Hanabilah, Malikiyah, dan Syafi'iyah. Kata kunci: Akad, Kartu Kredit Syariah Pendahuluan Awal mula muncul kartu kredit, ketika seorang pengusaha besar di New York Amerika Serikat tahun 1950 sedang menjamu atau bahasa gaulnya "mentraktir" teman-temanya di sebuah restoran. Ketika selesai perjamuan, ketika tagihan datang dari pegawai restoran, pengusaha besar itu sangat terkejut dan "grogi" ketika mengambil dompetnya tidak ada atau tertinggal (tidak terbawa). Dalam keadaan panik pengusaha besar tersebut, terpaksa meninggalkan semacam

This paper aims to contribute to the literature debate on the regulators' dilemma affecting international financial regulations focusing on the banking regulation of dual financial systems. In this regard, the paper provides a new taxonomy of Islamic Financial Systems considering the banking regulation as a driver for the classification and a more detailed definition of dual financial systems. The literature review reveals the existence of different financial system structures affected by socio-cultural biases due to different characteristics of various countries and financial systems globally. The risk of regulatory arbitrage or over-regulation phenomena is high, stifling the growth and the level playing field for both some systemically financial systems.

Penelitian ini bertujuan untuk menjelaskan jual beli kredit dalam perspektif ekonomi Islam yang dibangun berdasarkan penafsiran ayat-ayat yang menjadi sumber dan landasan ekonomi Islam. Penelitian ini merupakan penelitian kepustakaan (library research) dengan metode penafsiran maudu‘i (tematik) dan metode penafsiran tahlili (analitik). Hasil penelitian ini menunjukkan hukum kebolehan (mubah) jual beli kredit berdasarkan dengan keumuman jual beli dalam Surat Al-Baqarah Ayat 275 dengan batasan-batasan syar’i yaitu harga yang disepakati dan pencatatan transaksi sesuai dengan Surat An-Nisaa ayat 29 dan Al-Baqarah Ayat 282.

The paper is a review of the Malaysian experience in managing the issuance and development of Islamic bonds market. It was observed that Malaysia has begun with the issuance of loan-based Islamic bonds by the Malaysian government followed by the vast and extensive issuance of sale-based Islamic bonds by both government and private corporations. However, most of the Malaysian Islamic bonds issued to date have been based on the principles of Murabahah and Al-Bai' Bithaman Ajil (BBA) that can hardly obtain the acceptance and confidence of global investors especially from the Middle-East countries. Hence, the issuance of Ijarah-based global sovereign and corporate Islamic bonds (Sukuk) took place in 2002. In general, five key factors have been recognized to develop a more comprehensive Malaysian Islamic bonds market and accelerate the progress of Malaysia's venture into the international Islamic financial arena.

We analyze how bankruptcy laws affect the general equilibrium interactions between credit and wages. Soft laws reduce the frequency of liquidations and thus ex post inefficiencies, but they worsen credit rationing ex ante. This hinders firm creation and thus depresses labor demand. Rich agents who need few outside funds can invest even if creditor rights are weak. Hence, they favor soft laws that exclude poorer agents from the credit market and reduce the competition for labor. Such laws can generate greater utilitarian welfare than under perfect contract enforcement: By barring access to credit to some agents, soft laws lower wages, which increases the pledgeable income of richer agents and decreases the liquidation rates they must commit to. When they induce strong credit rationing, however, soft laws are Pareto-dominated by tougher laws combined with subsidies to entrepreneurs.

The research paper aims to analyses the overview of interest-free finance activities in Turkey and Bangladesh. The history of the intellectual efforts of the Islamic economy in modern times is date back to the 1950s. The interest-free finance system emerged with the claim of being an alternative to the aim of eliminating the complexity of the irregular order in the modern financial system. Emerging Bangladesh and developing turkey were started up their interest-free financing from the decade of 1980. Bangladesh started interest-free financing from 1983 by establishing Islamic bank limited regarded as the pioneer of Islamic banking in Bangladesh. Participation banks of turkey have been growing continuously since the year they started operations in 1985. Islamic banks Limited and Participation bank of turkey hold market share 24% and 5.3 % in their banking sector, respectively. Interest-free financing as a development factor within the framework of the implementation of multilateral p...

The objective of this paper is to examine the viability of Istisna for project financing, with a special focus on its economic aspects and the risks associated with the said contract. This paper also aims to investigate the challenges faced by Islamic banks in adopting Istisna as a mode of project financing. This paper first provides an overview of Shariah-compliant project financing; it then discusses the characteristics of Istisna and barriers to Istisna implementation for construction and infrastructure project development. Economic and general legal considerations are key factors that influence the development of Istisna as project financing. This paper also seeks to explore ways to increase the use of Istisna.

         The research aims to know the impact of the spread of the Corona pandemic on the financial ability of borrowers and thus to identify their willingness to pay their financial obligations towards banks، and an attempt to present through this research appropriate proposals to address bad debts in banks operating in the city of Erbil. A default in loans affected commercial banks in the first place، because they are quick to profit due to the high interest rates in them، compared to banks in other fields، including agricultural، industrial، specialized، and Islamic. In addition to the interest of major merchants in the region to activate their commercial operations through commercial banks. The research concluded by presenting a number of proposals، including: The commercial banks should verify the actual verification of the borrower's ability to repay his loan، especially the verification of the existence of additional surplus income. As well as working to focus on disclosu...