Murabahah is a sale contract whereby the seller adds a markup with cost and discloses the amounts to the buyer. Islamic banks apply this concept to finance their customers on a short- and long-term basis. In fact, about 70 per cent of the total investments of the Islamic banks in Bangladesh is based on the murabahah concept. However, the application of this concept varies from bank to bank and product to product. Some of the practices face heavy criticism from different stakeholders. This research aims to identify the application of murabahah by the Islamic banks in Bangladesh in offering various investment products and compare these practices with the Shari'ah requirements of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and other reputed Shari'ah authorities. The research adopted a content analysis approach whereby the murabahah contract documents of all full-fledged Islamic banks in Bangladesh are examined. The research further conducted interviews of Islamic banking practitioners to establish the process flow of different murabahah-based investment products and conducted focus group discussions to validate the findings. The research finds the scope for improvements that the Islamic banks of Bangladesh may consider in achieving greater compliance with the AAOIFI Shari'ah standards. The research also proposes relevant recommendations for consideration of the Islamic banks of Bangladesh. The findings and recommendations of the research would be a reference for the Shari'ah governance functions of Islamic banks including the Shari'ah supervisory boards in identifying the potential weaknesses and to take steps in addressing those weaknesses

This study aims to examine the implementation of core banking systems (CBSs) in Islamic banking windows (IBWs) in Bangladesh, where conventional and Islamic banking coexist. It explores how IBWs balance operational efficiency with Shariah compliance when choosing between a standalone Islamic banking CBS (IB-CBS) and an Islamic banking module (IB-Module) within a conventional banking CBS (CB-CBS). The research analyses the technological, operational and governance aspects of CBS adoption. This study uses a qualitative research design that integrates survey responses from Islamic banking professionals with data on CBS adoption across IBWs in Bangladesh, further supported by semi-structured interviews with senior IBW executives. This triangulated approach enhances the credibility of the findings and ensures that operational realities are accurately captured. The thematic analysis focuses on Shariah compliance, operational efficiency, system integration and governance oversight. Despite practitioners' preference for IB-CBSs for Shariah compliance and flexibility in product development and innovation, most IBWs adopt IB-Modules due to institutional priorities, vendor dynamics and cost considerations. Middleware and application programming interface (API) driven integration is identified as potential solutions for reconciling efficiency with compliance in the implementation of IB-CBSs. The study's limitations include a small sample size, reflecting limited access to senior IBW executives and its focus on Bangladesh, which may limit generalisability across different jurisdictions. Nonetheless, the triangulated methodology enhances validity and provides a foundation for future comparative research. To the best of the authors' knowledge, this study is the first to systematically examine the adoption of CBS in IBWs. By integrating practitioner insights, it identifies how CBS design influences both operational efficiency and Shariah compliance in dual-banking contexts, while also highlighting limitations in current systems. By focusing on the "engine room" of IBWs - the CBS - the study addresses a critical gap and advances the understanding of Islamic banking infrastructure, providing insights for regulators, practitioners and policymakers on strengthening compliance, efficiency and market credibility in Islamic banking.

Your career uniquely bridges experience across international markets and Bangladesh. How have these dual experiences shaped your understanding of the practical and theoretical challenges involved in developing robust sukuk markets? International experience offers valuable insights into how more mature jurisdictions facilitate sukuk through clearer regulatory frameworks, stronger market infrastructure, and well-defined governance arrangements. However, the realities in emerging markets, such as Bangladesh, are materially different. Regulatory regimes are still evolving, technical capacity among stakeholders remains nascent, and supporting market infrastructure is limited.

This paper attempts to identify and evaluate the current situation of zakat collection, distribution and management in India. This paper identifies the inherent objectives of zakat to understand the real potential of zakat institutions and how zakat is important to Indian Muslims and how the society can innovate and modernise the zakat system. This paper suggests a few recommendations that religious leaders and government authorities in India may consider adopting. It suggests the introduction of a mosque card as an innovative way of distributing zakat by integrating mosques and their local community.

The purpose of this paper is to examine the accounting treatment and reporting of a murabaha contract and its implication to the financial statements of Islamic banks. In addition, the paper also explains the implication of time value of money on the measurement of a murabaha contract and the concept of substance over form in recognising financial transactions. This study reviews the accounting treatment and reporting for a murabaha contract as stated in the Financial Accounting Standards (FAS) of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the application of a murabaha contract as a financial instrument based on International Financial Reporting Standards (IFRS). The paper finds that, while IFRS-based financial reporting primarily focuses on economic consequences of financial instruments, AAOIFI further takes into consideration the legal structure of the instruments, which are based on Shari'ah precepts. The paper also finds that IFRS-based financial reporting cannot always capture the distinctive structure of the murabaha and, hence, may lack representational financial reporting. However, the IFRS recognizes the substance of a murabaha contract as financing, and the majority of Islamic banks in Malaysia report it as one of financing and not as a trading contract. For measurement, IFRS adopted the concept of time value of money where the profit allocation is based on amortized cost, which is similar to the measurement of conventional loan transactions that apply the concept of effective interest rate. Meanwhile, AAOIFI uses a straight-line basis to allocate the profit of a murabaha contract. The forthright discussion and the observations of the paper are expected to assist regulators and standard setters in developing accounting standards that are in convergence but also cater to the unique characteristics of Islamic financial transactions.

Prior studies have identified that not all "intangibles" are reported as "intangible assets" in the statement of financial position. This particularly concerns the Islamic finance industry where intangibles are often used as underlying assets in structuring products. Accordingly, this research examines the unique Shari'ah requirements and the dichotomous views on the validity and permissibility of intangibles to be recognized as assets. As a result of an apparent need to re-examine the sufficiency of international financial reporting standards (IFRS/IAS) and the views of Shari'ah scholars on financial assets, the research is designed to analyse the sufficiency of IAS 38 Intangible Assets with reference to the Conceptual Framework for Financial Reporting of International Accounting Standards Board (IASB). For this purpose, an in-depth interview, two focus group discussions and a survey of target respondents from both academia and industry directly involved in reporting of Islamic financial services are carried out. From the engagement session with the Shari'ah scholars, the research has identified an alternative view of concern with reference to appropriate Shari'ah rulings to determine the permissibility and validity of intangible assets and its reporting implications. Whereas, a mixed response is observed in the survey in terms of clarity on accounting policy, treatment and disclosures with reference to the technicality of the standards as well as the peculiarity of the context in Islamic finance industry.

This paper aims to address the financial reporting dimensions of intangible assets with specific reference to International Accounting Standards (IAS) 38 as well as relevant International Financial Reporting Standards (IAS 38 exclusion) that are embedded within intangible assets. These have implications for Islamic financial assets with identifiable and measurable intangible components. The study uses the qualitative research method by way of interviews followed by focus group discussions with professional accountants/accounting academics and Shar??ah scholars/advisors from academia, the industry and regulatory bodies. Analysis of relevant literature is made to understand the subject matter and Shar??ah-related issues. The study observes that the accounting dimensions of tangible assets are generally consistent with Shar??ah requirements. However, significant variation arises when the dimensions of intangible assets are represented in financial assets.

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.

As of December 2025, Bangladesh has issued six government sukuk and two corporate sukuk. All of these, except for the second corporate sukuk, have integrated a sustainability agenda for the use of proceeds. This paper aims to analyse the evidence on how these sukuk incorporate sustainability agendas; and to assess their impact on the sukuk issuance process and post-issuance reporting practices. A descriptive research design, utilising both primary and secondary sources, was employed. Existing literature was reviewed to identify the drivers and challenges influencing the issuance of sustainability-based instruments globally. Additionally, the prospectuses and information memorandums for sukuk issued in Bangladesh were examined to identify sustainability-related disclosures. The regulations governing both government and corporate sukuk were also reviewed. Semi-structured interviews were conducted to validate the findings from the secondary data and to gain deeper insights into experiences related to incorporating sustainability agendas in sukuk. The research finds that, although regulatory bodies have introduced initiatives to promote sustainability, additional steps are necessary. Additionally, third-party verification and impact reporting for sustainability-based issuances are inadequate. Although issuers generally demonstrate awareness of sustainability issues, there is a significant lack of investor demand, primarily due to insufficient awareness and incentives. To the best of the researchers' knowledge, this is the first study to systematically examine how sustainability is operationalised in sukuk issuance in Bangladesh, addressing a significant research gap, as the existing literature predominantly focuses on theoretical frameworks and empirical analyses of causal impacts. This study examines sukuk in Bangladesh's nascent market, which has seen only a few issuances. This may constrain the generalisability of the findings to more mature markets. The limited disclosure practices also restrict the ability to assess the causal impacts of the findings. The research findings provide valuable insights into the challenges an emerging market such as Bangladesh faces when incorporating a sustainability agenda in sukuk. These insights will aid in developing effective sustainability policies for Bangladesh and similar markets, standard setters, and multilateral organisations.

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.

The purpose of this paper is to examine the concept of Hire Purchase under Sharikat al-Milk (HPSM) and identify the issues in its application by the Islamic banks in Bangladesh, a major Islamic finance market, with reference to the Shariah and accounting standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). The research identified the essential requirements of AAOIFI Shariah and accounting standards, conducted content analysis of HPSM documents and audited financial statements of Islamic banks, held a focus group discussion with Islamic banking executives and Shariah experts and interviewed professionals in Islamic banking and members of Shariah supervisory committees. Although the HPSM concept was introduced in Bangladesh in 1990, there is no standardisation in its application. The research finds several issues in the application and financial reporting of HPSM by Islamic banks in Bangladesh. HPSM is a widely used mode of financing by Islamic banks in Bangladesh. The identification of the issues underlying HPSM will attract the attention of the practitioners, Shariah scholars, regulators and standard setters to introduce better controls, compliance, regulations and standards. This research provides valuable insights into HPSM by identifying issues in its application by Islamic banks in Bangladesh. Despite its widespread use in the country, there is a significant lack of research highlighting these issues and proposing potential solutions. Addressing these issues is essential for enhancing Shariah compliance and maintaining stakeholder confidence in Islamic banking.

Islamic banks provide similar trade finance facilities to those of conventional banks. They intermediate between buyers (i.e., importers) and sellers (i.e., exporters), act as a custodian of documents, and provide means to reduce payment risks via different payment terms (e.g., open account, documentary collection and letter of credit (LC)). They also provide financing - as need be - to help with working capital tied to the trade transactions. This research focuses only on financing by Islamic banks to importers that involve LCs. Different underlying Shari'ah contracts are used for import financing facilities under LC, the most common being the murabahah contract. At the time of sale, the existence of the subject matter and its ownership by the seller are the key requirements for the validity of a murabahah contract. In the absence of either of these requirements, the contract is considered null and void.

Maqasid al-Shariah (the objectives of Islamic law) are meant to guide and benefit mankind in this world and the Hereafter. The Corporate Social Responsibility (CSR) activities focus on the welfare of the society at large and can also serve the objectives of the Shariah. This research focuses on the CSR activities of the leading Islamic bank in a developing country - Bangladesh. The study is based on the CSR activities of Islami Bank Bangladesh Limited (IBBL) - the oldest and largest Islamic bank of Bangladesh. The analysis is done on the basis of the requirements of Maqasid al-Shariah. The study is based on secondary data. It conducted content analysis of eight year annual reports (2009 to 2016) of the bank. The main areas where the bank is performing its CSR activities are identified. Then an analysis is done according to the levels of Maqasid al-Shariah (necessities, complements and embellishments). It is found that most of the CSR activities and expenditures of the bank are dedicated to the necessities. And, activities representing embellishments received slightly more importance than the activities representing complements. The contribution of the study is unique in nature since there is no prior empirical study that assesses the CSR in light of Maqasid al-Shariah in the Bangladeshi context.

Preference shares have their own characteristics that make them different from ordinary shares. Moreover, they can be divided into various types based on unique features embedded in each type. This paper aims to scrutinise the different types of preference shares to identify related Shariah issues and subsequently propose solutions for the identified issues that would help in structuring Islamic preference shares. This paper employs a qualitative method by analysing relevant documents and literature to understand the subject-matter and Shariah-related issues. This paper finds that several features of conventional preference shares make the instrument as Shariah non-compliant. These are; (i) capital guarantee; (ii) loss sharing disproportionate to capital contribution; (iii) fixed profit; (iv) profit guarantee; and (v) waiving of right prior to realisation of profit. It is noted that there are a few articles discussed on preference shares. Nevertheless, this paper is significantly different from the others in term of in-depth analysis for each type of preference shares and the proposed Shariah-compliant solutions.

The purpose of this paper is to analyze the different features of preference shares from accounting and Shari'ah perspectives. It also aims to study Shari'ah issues arising from preference shares and to subsequently propose solutions for identified issues that will help in structuring Islamic preference shares. The paper uses a qualitative method by analyzing relevant documents and literature to understand the subject matter and Shariah-related issues. The paper finds that several features of conventional preference shares, such as capital guarantee, loss sharing disproportionate to capital contribution, fixed profit, profit guarantee and waiver of rights before realization of profit, make them a Shari'ah non-compliant instrument.

The Islamic banking industry in Malaysia is governed by the Islamic Financial Services Act 2013 (IFSA). This legislation marks another step in the evolution of the Islamic banking industry in Malaysia. Among its unique components, it re-classifies deposittaking products into two, namely Islamic deposits and investment accounts. The distinction has brought about a significant impact on the role that Islamic banks have traditionally been playing. The move from purely a credit intermediary to a mixed credit-and-investment intermediary is expected to promote real economic growth and development. In IFSA, investment account is defined as an account under which money is paid and accepted for the purposes of investment. This must be in accordance with the Shariah on terms that there is no expressed or implied obligation for the Islamic bank to repay the money in full or with any profit. This definition is instrumental as it explicitly distinguishes the character of an investment account from an Islamic deposit account as the latter guarantees return of the capital with or without a profit. This definition embeds statutorily the true spirit of Shariah-compliant investments, namely profit and loss sharing in musharakah, profit sharing and loss bearing in mudarabah and fee-based in wakalah bil istithmar.

Sukuk in its contemporary form as a financial instrument has gained prominence only over the last one to two decades. Like a share, a sukuk is defined as an instrument representing undivided ownership over the underlying assets. Naturally, the question arises whether sukuk are subject to the same zakat rulings as shares. Accordingly, this research has identified the similarities between shares and Sukuk. The zakat rulings applicable to shares are also identified, and the research has made an attempt to apply those rulings in the context of sukuk. However, the research has identified the peculiarities of sukuk as it is currently practiced in the global market and provided fresh insights on how these may impact the applicability of zakat to sukuk. While the research includes theoretical Shari'ah analysis and discussion on various relevant zakat matters, it also reviews today's practices. Accordingly, relevant Shari'ah standards and requirements of various jurisdictions are identified, and several sukuk prospect uses are examined in relation to zakat calculation and disclosures. By this the research aims at enabling a coherent understanding of the theory and practice.

The study explores the existing Shariah audit practice of Islamic banks (IBs) in Bangladesh aiming at providing suggestions for improvements on the detected shortfalls in the relevant areas. This research applied a qualitative method, and data were collected through conducting semi-structured interviews in Bangladesh. A total of 17 interviews were conducted for accomplishing the research objectives. The study finds that there is no comprehensive Shariah audit manual in the current operation for IBs in Bangladesh, and as such, the requirements of their Shariah compliance remain a big question. Although the Shariah audit is conducted within IBs, and the Shariah audit officers or Shariah officers inspect necessary documents while conducting the Shariah audit, they only cover 10-20% of total investments and transactions. Based on the findings of this study, it is recommended that the Shariah auditing tasks should broadly cover at least 80% of the investment portfolios, documents and financial contracts and activities. The findings of this research are expected to significantly contribute to the regulatory authorities concerned in Bangladesh and beyond, which include the suggestions that IBs can adopt to strengthen their Shariah governance system. The study also pinpoints that in the current system, Shariah auditors' roles are somehow limited in examining and checking the investment sides with a minimal portion (10-20%), for which they are unable to perform their responsibilities in a befitting manner to provide assurance services and overall Shariah compliance of IBs activities. This study explores the current Shariah audit systems and provides recommendations to improve the existing systems which will be beneficial for Islamic banks of Bangladesh.

While Islamic banking's significant market share and systemic importance within the banking system are often highlighted as notable achievements, a troubling reality undermines this success: a substantial portion of investments in several Islamic banks are non-performing. To contain systemic risks and avoid destabilising the banking system, the central bank has merged five of the 10 full-fledged Islamic banks into the state-backed Sammilito Islami Bank. With a large volume of non-performing investments (NPIs), the Islamic banking sector's urgent priorities include asset recovery, liquidity management, and restoring confidence.

Ensuring socio-economic justice, eradication of poverty and equitable distribution of wealth are among the primary objectives of Islam. Even so, a significant number of Muslims around the world are deprived of their basic needs. The scenario only worsens in times of financial and political turbulence. There is a desperate need to find sources of funding to rescue people from their miseries and offer sustainable solutions. Zakat has great potential to meet the funding needs. This chapter argues that zakat contributions will be amplified if corporate entities pay zakat as legal persons or on behalf of their Muslim shareholders. This chapter proposes development of a zakat calculation software to facilitate corporate entities and Islamic financial institutions calculating their zakat obligations reliably. Development of such software requires Islamic finance research entities to team up with information technology experts. Prominent Shariah scholars will play the essential role of validating and endorsing the Shariah compliance of the software.