Islamic financial institutions (IFIs) are required to establish a Shari'ah Governance Framework (SGF) to strengthen their Shari'ah compliance mechanism and ensure that all relevant IFI regulations are in line with Shari'ah rules and principles. Effective implementation of the Shari'ah-compliance function will further promote stakeholder confidence, as well as the integrity of IFIs, by reducing Shari'ah non-compliance risks. This study aims to examine the internal control framework developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and explore the extent to which it can be incorporated in the Shari'ah-compliance function of IFIs. This study adopts a qualitative method of inquiry, utilizing the inductive method and content analysis to build comprehensive knowledge that will assist in exploring the framework of COSO methodology and the extent to which it can be adopted by IFIs. The findings indicate that the existing frameworks of Shari'ah governance, whether that of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) or Bank Negara Malaysia (BNM), need to be further developed. Therefore, the adoption of COSO methodology in the internal Shari'ah audit of IFIs, as suggested by AAOIFI, is not only possible but desirable. The study also finds that the COSO framework places the highest priority on risk management in that it makes it an integral part of the decision making process in all the institution's activities. As a result, incorporating the comprehensive COSO risk management structure within the Shari'ah-compliance function will enhance risk management in IFIs.

An abstract is written in Arabic.

According to the Islamic financial services industry stability report published by IFSB in 2019, the takaful contributions in Southeast Asia were estimated to have reached US$ 3.86 billion in 2017, and Malaysia ranked first with total contributions of US$ 2.77 billion, which represented 70% of the total takaful contributions in Southeast Asia. In light of this, this paper examines the development of takaful industry at the global level, the emergence and development of the takaful industry in Malaysia, the contractual relationships governing the practice of takaful in Malaysia, and the main factors which make Malaysia as one of the pioneering models in takaful in Southeast Asia region. In terms of methodology, the research adopts a qualitative approach employing the inductive method to trace primary and secondary data on the topic and the descriptive method to describe the Malaysian experience in Islamic insurance. The research also adopts the analytical method to evaluate the viability of takaful in the Malaysian context. The study found that the developments of takaful in Malaysia are very promising due to the abundant encouragement provided by the regulators. The research has also concluded that the success of the Malaysian experience is due to the legal and regulatory frameworks, the infrastructure support system that facilitates and govern the work of takaful operators, and the healthy competitive environment among the takaful companies. These contributed to enhancing growth rate and making Malaysia a pioneering model in Islamic insurance in the Southeast Asia region.

This paper aims to investigate the issues and challenges faced by Islamic banks in implementing Microfinance (MF) in selected Islamic banks in Malaysia. An empirical study is endeavoured consisting of semi structured interviews with senior managers and officers from four Islamic banks in order to address the main research questions. Out of the four selected Islamic Banks, only two are currently providing MF. The MF programs in these two banks are mostly restricted to pensioners, army wives, registered companies and companies operating for a minimum of two to three years. The main challenges facing Islamic Banks when dealing with MF can be highlighted in the following points: the default risk, the lack of funds and the unwillingness of shareholders to take MF risk, the high operating cost, the complexity of MF processing, and regulatory restrictions. Other hindrances include the lack of well trained staff capable of efficiently managing MF. This research concludes with a call for Islamic Banks to seriously participate in economic and social development through greater involvement in MF.

The global takaful market is estimated by market analysts to reach a premium of U.S. $ 12.5 billion by 2015. Malaysia is considered the second largest takaful in the world with total asset of US$ 3.2 billion. One of the new innovations of takaful and insurance in Malaysia is Perbadanan Insurance Deposit Malaysia (PIDM) which is also known internationally as the Malaysia Deposit Insurance Corporation (MDIC). The role of MDIC is to provide protection to owners of takaful certificate and to ensure the stability and confidence in the market by protecting policy holder (takaful certificate). Therefore, this study investigates the extent to which MDIC is relevant to takaful operators. Personal interviews are carried out with shariah advisers of takaful operators to deduce the actual practice, the ideal role and to gain access to the field of MDIC and its implications in Malaysia. The findings of this research indicate that MDIC is relevant to takaful operators and part of the regulations that should be supported and encouraged. Furthermore, the study also found that Shariah advisers suggest Wakalah bi ajras an alternative of kafalah-bi al-ajrby shifting the scheme to tabarru' model. In addition, the study found that the contribution paid should be charged to the participants' fund; this is because the protection provided by MDIC is for the fund that belongs to the participants and takaful operators deemed to be wakeel (agent) only.

According to the Financial Stability Board's recent study, crypto-asset market capitalisation grew 3.5 times in 2021 to USD2.6 trillion. Still, the market remains a small portion of the overall global financial system, and direct connections between crypto assets and systemically important financial institutions and core financial markets are limited at the present time. The market, according to the European Central Bank, represents less than 1% of the global financial system in terms of size, but it is still similar in size to, for example, the securitised sub-prime mortgage markets that triggered the global financial crisis of 2007-2008. However, most central banks perceive the use of cryptocurrencies for payments to be trivial or limited to niche groups and not widely used in critical financial services (including payments) on which the real economy depends. Besides, the different incidences of price volatility in cryptocurrency markets have, so far, been contained within crypto-asset markets and have not spilled over to other financial markets and infrastructures. This report - which is based on the notes and commentaries shared by the participants of the workshop "Cryptos: Distinguishing Hype and Realities in Islamic Finance", held at SOAS, University of London on 16th June 2022 - discusses the above-mentioned topic in some detail. Although the full commentaries are extremely valuable and beneficial, this 'summary of commentaries' aims to discuss the most crucial concerns regarding cryptos that the world faces today. The report gives some insights regarding the crypto-asset industry and sheds light on some legal and Shari'ah issues that can arise in cryptocurrencies. To serve this purpose, this report is a brief compilation, with selective editing, of the notes and commentaries shared by individuals prior to the workshop. A list of contributors is placed at the end of this report.

The outbreak of the coronavirus epidemic (COVID-19), classified by the World Health Organization as a pandemic, has led to the emergence of many challenges. It started as a health crisis and then turned into a global economic crisis that most countries could not manage or control as a result of lockdown policies and restrictions on movement and travel. This is not to mention the forms of damage that have affected the contractual obligations and rights of various contracting parties at the level of financial institutions such as banks, takaful companies and others. The challenges imposed by the coronavirus pandemic have led to a reexamination of the fiqh treatment of catastrophes. The role of Islamic economic experts and the Islamic financial industry has had to be clarified in addressing its effects on contractual relations and future obligations in distressed financing contracts. The theory of catastrophes (jawa'ih) is one of the most important jurisprudential theories in Islamic fiqh. It comprises a set of principles and provisions that deal with the harmful effects upon one of the parties bound by a contract as a result of damage to what the party is obliged to deliver, or failure to obtain the intended benefit from the obligation. It is based on achieving justice in the practical application of financial transaction contracts, removing difficulty, taking into account arising circumstances, and preventing abuse in the exercise of rights and the freedom to contract. It thus regulates the rights of people related to the exchange of properties and usufructs.

This study aims to investigate the relevance of the theory of planned behaviour (TPB) in predicting the intentional behaviour of refugee entrepreneurs. This paper uses key components of the theory on attitude, subjective norms and perceived control to explore the willingness of refugees to participate in microenterprise support programmes (MESP) in refugee camps. This study used a positivist research approach, comprising a quantitative basis of enquiry and gathered data via survey questionnaires. In total, 400 usable questionnaires were completed and used for analysis. This study uses descriptive and inferential analysis with SPSS and confirmatory factor analysis with AMOS to test three key TPB hypotheses. The structured model revealed acceptable high goodness-of-fit indices. Also, the findings indicated that out of three hypotheses, two hypotheses (attitude and perceived control) were substantial, positive and significant. However, the relationship between subjective norms of refugees and their intention to participate in MESP was insignificant. The findings of this study indicate the low-profile refugees give to the views and opinions of the surrounding communities when it comes to determining their intentional behaviour. As such, some poignant implications may relate to microfinance and microcredit programmes targeting refugees. The present study illustrates the interrelationships between the proposed variables. Also, by understanding the relationships between the selected variables, the findings would be useful for the concerned authorities to ameliorate and upgrade the well-being of refugees along with empowering their environment, which would facilitate their engagement in business and entrepreneurship.

Islamic finance is considered one of the fastest-growing segments of the global financial industry. Over the last four decades, Islamic finance has expanded globally to western and other non-Muslim countries. This paper aims to explore the potential for China to tap into the Islamic finance market and the challenges that may face the implementation of Islamic finance there. This study adopts a qualitative method of inquiry and utilizes the inductive method and content analysis to build comprehensive knowledge that would assist in exploring the significance and potential benefits that China may gain from the adoption of Islamic finance. The study reveals that China has a huge opportunity to capitalize on Islamic finance for economic development, particularly in the implementation of China�s Belt and Road Initiative (BRI). The paper also highlights the critical success factors for introducing Islamic finance in China, most importantly, political will. Genuine support from the government is needed for the effective introduction of Islamic finance in the country. This support should be subsequently followed by the development of the legal framework, an amendment of the laws, broad publicity to raise public awareness, and effective collaboration with international organizations.

The purpose of this paper is to examine the relationship between service quality, student satisfaction, university reputation, and student loyalty in the International Islamic University Malaysia (IIUM). This study aims to improve our understanding of student loyalty and to highlight the effect of student satisfaction, service quality, and brand image in building student loyalty towards IIUM. Data were randomly collected from 160 students studying in IIUM during the 2012/2013 academic session. Data analysis encompasses descriptive analysis, reliability analysis, exploratory factor analysis (EFA), correlation, and regression analysis. The data resulted in acceptably high reliability. The result indicates that all independent variables have significant impact on student loyalty. All three hypotheses were supported. This study is set to assist institutions of higher education to identify improvements in the service delivery process by identifying different aspects of service quality, brand image, and student satisfaction in IIUM.

This research aims to examine the impact of the Covid-19 pandemic on contractual obligations in Islamic banks. It explores the Shariah issues arising from the pandemic, the Shariah approaches considered in addressing these issues, and the rights of the various contracting parties affected by the pandemic. The study employs both descriptive and analytical methodologies. The descriptive approach is used to analyze the fiqh perspectives on Covid-19 and relevant jurisprudential theories, while the analytical approach assesses the application of Islamic legal maxims to contractual obligations and evaluates the consequences on existing contracts within the Islamic finance industry. Additionally, a comparative approach is adopted to examine the Ijtihad (independent reasoning) of both classical and contemporary scholars, highlighting the pandemic's impact on key Islamic financial transactions. The study concludes that postponing the payment of installments under a murabahah contract with a fixed profit rate, or rescheduling with an increase, would result in the prohibited practice of pre-Islamic riba. However, in a murabahah contract with a variable or floating rate, where the contract stipulates a higher price or ceiling profit rate, the bank may commit to providing a rebate (ibra') to customers who pay their installments as scheduled. In such cases, the customer is only required to pay the effective rate. Furthermore, the study finds that banks may adjust future installments in lease contracts and diminishing partnership contracts (musharakah mutanaqisah), but not for installments that are already due and payable. Importantly, banks should not require customers to pay additional amounts to cover losses incurred during the postponement period.

Despite extensive studies on predictors and antecedents of organizational commitment, empirical research studies on the impact of workplace spirituality on organizational commitment remain scarce. This study aims to examine the impact of the dimensions of workplace spirituality on agents' organizational commitment in Islamic insurance (takaful) industry in Malaysia. This study used a positivist research approach, comprising a quantitative basis of enquiry, and gathered data via survey questionnaires. In total, 600 questionnaires were distributed and finally 395 usable cases were selected for analysis. Pearson's correlation and stepwise multiple regressions analyses were used to analyze the data. The findings indicated that spirituality in the workplace has a positive and significant effect on organizational commitment. The relationship between each and every component of workplace spirituality and organizational commitment was found to be substantial, positive and significant. The study findings will enable Islamic insurance companies to understand the importance of spirituality in the workplace and will further improve their function and performance by way of enhancing employees' spirituality in the workplace. This study suggests developing more spiritual training, workshops, lectures and seminars on spirituality at the workplace which will help employees of takaful operators and agencies cope effectively with life problems, reduce stress, boost loyalty and enhance organizational commitment.

Islamic finance has grown considerably over the last four decades and has a global reach. It is considered one of the fastest-growing segments of the global financial industry. One of the biggest challenges for Islamic finance in the next decade is in financial technology (known as Fintech). In the digital world, traditional financial practice will be left behind. This paper examines the phenomenon of financial innovation and technology in Islamic finance and its Shariah parameters. The research adopts a qualitative approach employing the inductive method to trace primary and secondary data on the topic and the descriptive method to describe the emergence of fintech in the Islamic finance industry. The study found that all financial innovations are generally welcomed and can be considered as benefits (Maslahah) to the customers and to the whole financial industry. Innovations in fintech become impermissible only if there is clear evidence from the Shariah that they are against the basic rules of the Shariah. The study also highlights the relationship between fintech and Shariah compliance and suggested to have a proper Shariah governance framework in order to ensure the operation of fintech is in total compliance with Shariah. Besides that, authorities and regulators are required to develop Shariah standards that would explicitly spell out the requirement of Shariah that are fundamental to fintech operations and practices.

This report is the last part of a four-part thought leadership series delivered by the International Shari'ah Research Academy for Islamic Finance (ISRA) in partnership with the Islamic Finance Council UK (UKIFC). The series is intended to inspire IFIs to embrace the SDGs and demonstrate to the world that consideration for people, planet and purpose can coexist with profit and form the heart of the next generation of Islamic financial products. This part will mainly document the current level of knowledge, understanding and perspectives on the SDGs amongst key IF industry stakeholders, primarily Shariah scholars. The concept of sustainable development was articulated for the first time in the Brundtland Report, also called "Our Common Future", published in 1987 by the World Commission on Environment and Development (WCED) and supported by the UN. According to the Report, sustainable development is defined as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs".

This research explores the influence of Islamic spirituality on Muslim women's entrepreneurship in Malaysia, showing the effects of spirituality on their careers, business ventures and general entrepreneurial behavior. An empirical study consisting of open-ended interviews with women entrepreneurs in Malaysia was undertaken to explore the impact of spirituality on shaping their entrepreneurial activities, ethical choices, decision-making, and enhancing work-life satisfaction. The findings of this study highlight the position and key role of spirituality in the success of Muslim female entrepreneurs. This study underscores not only the religious compatibility between work and women success, but also highlights significant prospects for the untapped societal potential of Muslim women, in light of their spiritually-backed competencies, and with respect to harnessing their creative and entrepreneurial talents. This study reinforces the connection with God as a common denominator to the definition of spirituality and further shows that spirituality plays significant role in the prioritizing of the needs of family and life, motivation, social responsibility, and decision-making of Muslim women entrepreneurs in Malaysia.

Despite the number of studies conducted on the concept of spirituality in the workplace, the benefits of work-place spirituality within organizations and the associated effects to outcome and performance level, there have been very few research attempts focusing on the religious aspects of spirituality. As such, the present study aims to improve employees' performance by introducing the construct of Islamic spirituality in the workplace and explore its contribution to the overall development of modern organizations. This study proposes a theoretical framework of Islamic spirituality within the workplace and looks at the effect of Islamic spirituality to predictive employee behavior, with particular emphasis on organizational commitment and organizational citizenship behavior (OCB). This research concludes with a call for researchers to empirically examine the link between Islamic spirituality, organizational commitment, OCB, and job performance. This contribution to the body of existing literature aims to strengthen empirical research on the relationship between these constructs.

The Islamic insurance sector or akaful has seen remarkable global growth in many major markets, especially in Muslim dominated countries. However, the development of Islamic finance, particularly takaful in Algeria appears to have lagged behind. Although there are two Islamic banks operating in Algeria, takaful is yet to be introduced into the Algerian financial market. We ran a study to investigate the perspective of Algerian experts in Islamic finance and takaful on the issues and challenges of introducing Islamic insurance into the Algerian financial market to address the following questions: What are the benefits of introducing Islamic insurance into the Algerian financial market? What challenges might Algeria face with the introduction of Islamic insurance? And how can the Algerian financial market adopt the Malaysian Islamic insurance framework?

The study aims to investigate the measurement model of four constructs, namely, spirituality at the workplace (SP), Islamic spirituality (ISP), organizational commitment (OC) and organizational citizenship behaviours (OCB). The study aims to contribute new knowledge to the existing literature whereby performance determinants comprising these constructs, serve to improve employee well-being which ultimately improves organizational performance. Using disproportionate stratified random sampling, the survey data used for this empirical research were drawn from 482 employees working in takaful agencies in Malaysia. After yielding an instrument to measure SP, ISP, OCB and OC, principal component analysis (PCA) using SPSS and confirmatory factor analysis (CFA) using AMOS were carried out.

The concept of sustainable development has been articulated for the first time in the Brundtland Report, also called "Our Common Future" published in 1987 by the World Commission on Environment and Development (WCED) and supported by the United Nations (UN). According to Brundtland Report, Sustainable Development is defined as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." In 2015 the United Nations has introduced the new global development agenda for 2015 through 2030 and adopted a set of seventeen Sustainable Development Goals (SDGs) for the action of the member states. According to UNDP, the SDGs as global agenda represents a universal framework for comprehensive development. It aims to plan for a better and sustainable future and address the global challenges faced by people and the planet.

This research investigates the Shari'ah compliance of the pricing elements used in family takaful products. The reviewed literature has revealed a great deal of emphasis on the Shari'ah aspects of the takaful contract, distribution of surplus, models used, incorporating waqf in takaful, and the relationship among the parties. Other research has focused on the operational and technical aspects of takaful such as underwriting, pricing, reserving and risk management. None of these studies has addressed the Shari'ah compliance of the pricing elements of family takaful products. Through qualitative research using open-ended interviews as well as content analysis, this research analyses the conformity of family takaful pricing mechanism with the Shari'ah principles of price-setting (tas'ir). The research findings indicate that the assumptions of mortality and morbidity are Shari'ah compliant based on the principles of ibahah (permissibility), maslahah (public interest), istiqra' (induction) and 'urf (custom). However, the investment returns assumption is not quite fair to the shareholders should there be a loss in the investment. The research also indicates that the concept of time value of money is a Shari'ah compliant element that can be used to price family takaful products. Further, the findings highlight that the pricing elements such as health condition are deemed unfair by some practitioners. Similarly, adding an extra loading to the contribution because of family medical history should not be taken for granted.

An abstract is written in Arabic.