On January 14, a Bangladesh Bank (BB) letter announcing a �haircut� on deposit profits (no profit on deposits) for the five merged Islamic banks for 2024 and 2025 took depositors by surprise. Following widespread reactions, the decision was revised. The profit rate for individual term and scheme deposits has now been set at four percent for those two years, with a provision to adjust any excess profit already distributed against future profit distributions. In support of the previous decision, on January 15, the governor of the central bank had cited the BB�s Shariah Advisory Board (SAB) opinion that no profit can be paid in the event of a loss. He further explained that, as the concerned banks incurred losses during these years, the cancellation of profit is in accordance with Shariah principles and based on the SAB�s recommendations. Later on January 29, he mentioned that, although depositors do not have any entitlement to the profit, it will be provided as ihsan (benevolence) by the government. In addition, he announced that, from January 2026, the profit rate will be fixed at 9.5 percent for deposits with a tenure of more than one year, while deposits with a tenure of less than one year will earn nine percent. Since Shariah compliance is the foundation of Islamic banking, an unclear articulation of this claim and a lack of disclosure regarding Shariah decisions may raise concerns. For instance, the cancellation of already distributed profits and the fixing of profits in mudarabah contracts are contentious issues. Without clearly outlining the narrative and parameters of these measures, such decisions may lead to unintended consequences, including setting a precedent for Islamic banks to retrospectively revise their profits based on claims of Shariah compliance, thereby increasing depositors� risks. At the outset, it is worth noting that the Islamic banking system in Bangladesh has accumulated various weaknesses over time. Alongside forced takeovers and large-scale irregularities across several banks, persistent deficiencies in product structuring, governance, Shariah compliance mechanisms, and disclosure practices have been evident in many instances. Significant gaps are also apparent in the regulatory and supervisory framework, and laws and regulations generally do not distinguish between interest-based and Islamic banking. The cumulative effect of these shortcomings has created deep structural vulnerabilities in the sector.

This paper addresses structural deficiencies in housing justice and institutional financing within urban village renewal, especially in China case. It aims to develop a viable alternative to conventional debtheavy models by proposing a multi-dimensional financing model (MDFM) that integrates risk-sharing-based (sukuk-compatible) capital, cooperative ownership, government support, and public asset monetization. The study reconstructs an SPV-based cash-flow model and calibrates it using empirical data from Hangzhou�s self-financed renewal case. A 10,000-iteration Monte Carlo simulation is executed to test financial feasibility under realistic uncertainties, focusing on internal rate of return (IRR), net present value, and affordability for low-income households. Affordability metrics are benchmarked against market rent and mortgage comparators. A sensitivity analysis identifies the dominant value drivers (operational vs. financing variables). The MDFM delivers a median project IRR of 7.10% and lowers median monthly resident outflow by 31% relative to market rent and by over 50% relative to a conventional mortgage, without direct facing a RMB 1.04 million down-payment. However, P10 affordability exceeds the 30% burden threshold, revealing a vulnerability cliff for low-income households. Sensitivity analysis shows that outcome variance is driven primarily by operational fundamentals (rental growth and vacancy), whereas the sukuk redemption profile exerts minimal marginal influence. This study is validated through simulation rather than through empirical issuance or market adoption. The market appetite for sustainability-linked or Shari'ah-aligned equity instruments in China has not yet been empirically verified. The regulatory acceptability of the model also requires qualitative validation through stakeholder interviews and expert consultations to identify concrete policy adjustments. Although calibrated to the Hangzhou case, the model�s broader applicability must be tested through further sensitivity analyses and pilot studies in cities with distinct institutional and market conditions such as Shenzhen and Guangzhou. MDFM offers a scalable, fiscally sustainable solution for policymakers and developers, especially in contexts where informal settlements dominate. Its use of sukuk financing and assetbacked revenues provides a flexible alternative to conventional debt models in large-scale redevelopment. The model can pre-empt re-informalization and displacement by eliminating upfront capital barriers and embedding affordability through cooperative equity acquisition. It aligns investor profit with community stability, returns arise from sustained occupancy rather than speculative extraction. The P10 affordability cliff identifies where targeted support is required to protect vulnerable households. The design keeps residents in central labor markets, supporting job-housing balance and social mobility, and links renewal finance with low-carbon construction, enabling equity and environmental co-benefits simultaneously.

This paper introduces the Spiritual and Material Index for Sustainable Development (SAMI-SD Model), a comprehensive framework designed to assess well-being through an integrated lens of maqasid al-Shariah and sustainable development. While building upon earlier models such as CIBEST and the Multidimensional Shariah-based Material and Poverty Index (MSMPI), the SAMI-SD Model advances the field by embedding a new set of empowerment and sustainability indicators that capture dynamic capabilities, long-term resilience, and ethical stewardship dimensions not explicitly measured in previous frameworks. These additions enable the model to move beyond static poverty assessment by evaluating individuals� capacity to improve their socio-economic conditions, participate productively in society, and maintain intergenerational well-being. Grounded in classical Islamic thought and the institutional roles of zakat, waqf, and sadaqah, the SAMI-SD Model aligns with the maqasid hierarchy (daruriyyat, hajiyyat, tahsiniyyat) and supports the transition from basic survival toward holistic flourishing (falah). Methodologically, the model integrates both tangible and intangible indicators including spiritual health, financial empowerment, environmental responsibility, and social cohesion to present a fuller, ethically anchored picture of human welfare. By operationalizing these expanded dimensions, the SAMI-SD Model offers policymakers, Islamic financial institutions, and researchers a more actionable tool for designing interventions that are spiritually grounded, socially empowering, and environmentally sustainable. This enhanced measurement approach positions the SAMI-SD Model as a significant conceptual and practical contribution to the advancement of Islamic economics and its alignment with the Sustainable Development Goals (SDGs).

This study explores the growing integration between sustainability principles and Islamic investment funds, which are among the key Shariah-compliant financial instruments. Using an inductive approach to review concepts and global practices, and an analytical method to assess performance, the paper addresses four main themes: the concept of investment funds, conventional and Islamic investment funds, the current state of sustainable integration in Islamic funds, and the key development requirements. The findings indicate a strong alignment between Islamic ethical values and global sustainability standards, particularly in terms of justice, transparency, and environmental responsibility. Saudi Arabia and Malaysia were highlighted as leading models in promoting sustainable Islamic investment. The study recommends the development of Shariah-based sustainability indices, increasing green sukuk issuance, and enhancing regulatory frameworks to support sustainable investment ecosystems.

The State of the Global Islamic Economy Report (SGIE) 2024-25 divides the halal consumer market into six sectors: food, fashion, media and entertainment, travel, pharmaceuticals and cosmetics. Collectively, these segments are projected to reach a market size of US$3.36 trillion by 2028. When combined with global Islamic financial assets, estimated to reach US$7.53 trillion by the same year, the overall size of the global halal economy is expected to be approximately US$10.89 trillion by 2028. Global spending on halal food is expected to reach US$1.94 trillion in 2028. This includes food and beverages that adhere to Islamic guidelines and avoid prohibited substances such as pork, blood and alcohol. Even meat from halal animals is impermissible if not slaughtered according to Islamic rites. The demand for halal food is primarily driven by increasing awareness among Muslims, particularly among younger generations. Additionally, the focus on hygiene, animal welfare and clean processing in halal food has also attracted non-Muslim consumers. In response to the growing demand, major global corporations have entered the Halal food market, and many Halal certification bodies have been established globally. Many Muslim-majority countries require halal certification for imported food, while in non-Muslim countries, halal certification plays a crucial role in assuring Muslim consumers of a product�s permissibility.