Secondary markets are vital for the development of Islamic capital markets (ICMs) (Aziz, 2007). They facilitate the reselling of securities among investors, thus adding liquidity to these instruments (Mishkin, 2004: 26-27). Besides this basic role, secondary markets assist in reducing average cost of capital; bringing about a rational representation of the pricing of securities in primary as well as secondary markets; facilitating the exchange of investment risks; evaluating the performance of private and public sector, and mitigating information asymmetry (Ahmed, 1995; Al-Eshkar, 1995; El-Gari, 1993; Mishkin, 2004). However, secondary market trading of Islamic securities involves various issues. One of the greatest concerns is the lack of standardization, or at least harmonization, of ICM products. There are also conflicting resolutions, standards and individual fatwas (Islamic legal opinions) on the tradability of Islamic securities within the industry. It is feared that this creates confusion in the industry and may hinder the overall development of the ICM (Cox, 2005; Shaharuddin et al., 2012). Given the importance and concerns regarding the ICM, this study aims at investigating the vital issue of tradability of Islamic securities from the fiqh (Islamic jurisprudence) perspective.

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.

The evolution of the Islamic banking and finance (IBF) industry from its humble beginnings in the 1970s has now grown to comprise of more than 600 Islamic banks and 90 takaful companies in over 75 countries. The industry is now managing US$1 trillion in assets with a growth rate of 15-20 per cent per year. Many view this stage as a seamless continuation of the three earlier decades (1970s-1990s) of IBF's development, in which scholars and practitioners habe ladi down its philospohical and conceptual foundations. This expansion might be seen as a success story which shows the world that Islam and the Islamic finance industry can contribute positively to solving modern finance needs. Islamic finance is one the main practical manifestation of the Islamic worldview in the field of economics and finance as well as one of the most visible features of Islamic revivalism in the latter part of the twentieh century. Some, however, do not view this development within such a short period of time as a natural progression from the pioneering stage. Many questions have been raised about the genuineness of IBF and the nature of its progress. While evaluating progress is always a subjective enterprise, the criticisms cannot be underestimated, especially if IBF intends to promote a real economy that can be sustainably developed in the future. This paper attempts to highlight the development of Islamic finance by looking at its emergence and the approaches taken in its development. Subsequently, the directional trends of development and their future outlook will be outlined. This paper argues that Islamic finance should be directed toward providing meaningful development in the twenty-first century. IBF must be competent in order to deliver its full potential as a system, not merely a stopgap means of surviving the crisis. IBF must go above and beyond by providing guidelines for managing a good economy, stimulating growth and development, promoting socio-economic justice, employment and stablitity, IBF cannot limit itself to merely offering economic and financial practices that satisfy the minimum standard of legal requirements.

An abstract is written in Arabic.

The paper aims to investigate the dimensions of maqasid al-Shari'ah in Islamic finance by exploring the ends (maqasid) and the means (wasa'il). Those would clarify the nature and goals of Islamic finance as well as its directional development. Using literature in English and Arabic sources in the area of maqasid al-Shari'ah, as well as from the reading of the primary sources (the Qur'anic texts/nusus), the paper attempts to delineate the dimensions that would constitute the ends (maqasid) and the means (wasa'il) in Islamic finance. The paper explicates three specific ends (maqasid) in Islamic finance, namely wealth circulation, fair and transparent financial practices and justice at the micro- and macro-level. To achieve those ends, the Shari'ah provides means (wasa'il) such as facilitating financial contracts, establishing values and standards and instituting social responsibility. The findings of this paper will give insights on the ends (maqasid) and the means (wasa'il) in Islamic finance based on the maqasid al-Shari'ah discourse. It could be used as a reference in understanding the nature of Islamic finance and in developing a sound and solid Islamic finance based on the Shari'ah.

Due to the fact that Islamic financial securities may consist of ribawi (cash and debt) underlying assets, it is crucially important to discern whether or not the trading of these securities is subject to the Shari'ah rules for bay' al-sarf and bay' al-dayn. If they do not then what criterion is pertinent to their secondary trading; and on what jurisprudential basis? In answer to that question, the current scholarly views and suggested Shari'ah criteria for tradability of Islamic securities are not only diverse, but also at times incongruous with one another. Based on the qualitative approach of text analysis and semi-structured-interviews, this study critically analyse this issue ...

The emergence of Islamic finance as a system of thought and practice is timely in the midst of world crisis and the uncertain proposals for solving it. It is hoped that Islamic finance offers a coherent perspective for understanding real economic problems as well as a genuine alternative to the very foundations of how economics and finance should be managed to actualize human prosperity. In addressing those expectations and challenges, sufficient attention to the foundations should be given to develop solid conceptual scheme of a new finance in Islamic perspective and to resolve the tensions in the current development. This paper attempts to discuss the foundations of Islamic finance and the requirements in developing Islamic finance from the basic principles of maqasid al-Shari'ah (the objectives of Shari'ah). Islamic finance, in this perspective, must realize its full potential as a system, not merely a lawful means in doing financial business or a stopgap means of surviving the crisis. It must go beyond that to provide the guidelines for managing a good economy, stimulating growth and development, realizing socio-economic justice and promoting employment and stability as implied in the objective of Shari'ah (maqasid al-Shari'ah).

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.

Islamic finance is now at the stage of internationalisation, witnessing greater integration between the Islamic financial industry and the global financial system. Islamic finance has gradually evolved to become a dynamic and competitive form of financial intermediation. The Islamic financial industry has been developing ways to facilitate its interaction and integration into the global financial system. We see Islamic finance attracting the attention of the global audience and transcending religious, political and geographical boundaries. It has the potential to be adopted as an alternative to the global financial system...

Islamic finance is now at the stage of internationalisation, witnessing greater integration between the Islamic financial industry and the global financial system. Islamic finance has gradually evolved to become a dynamic and competitive form of financial intermediation. The Islamic financial industry has been developing ways to facilitate its interaction and integration into the global financial system. We see Islamic finance attracting the attention of the global audience and transcending religious, political and geographical boundaries. It has the potential to be adopted as an alternative to the global financial system...

This paper explores the role of Islamic finance in promoting financial inclusion in Malaysia and achieving the United Nations Sustainable Development Goals (SDGs). The study uses a mixed-methods approach, combining a review of literature, empirical data collection, and data analysis techniques. The findings suggest that there are several factors driving the adoption of Islamic finance in Malaysia, including the availability and accessibility of Islamic financial products and services, government policies and support, and the attitudes and perceptions of stakeholders towards Islamic finance. However, the study also reveals significant barriers to financial inclusion in Malaysia, including low levels of financial literacy, limited access to financial services in rural areas, and cultural and religious considerations, particularly in relation to interest-based banking. The study recommends that policy makers, practitioners, and stakeholders should focus on enhancing financial literacy, expanding access to financial services, and promoting Islamic finance as a viable alternative to interest-based banking. This will require a concerted effort to build awareness, education, and capacity in the Islamic finance sector, as well as collaboration between the public and private sectors to develop innovative and sustainable financial products and services that cater to the needs of underserved and marginalized communities. The study contributes to the existing knowledge on Islamic finance and financial inclusion in Malaysia and provides useful insights for future research in this area.

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.

Islamic finance attempts to rearrange the modern financial practices to be in line with Shari'ah principles and requirements. The industry has grown considerably over the last three decades and has a global reach. We contend that this trend is being driven not only by operational compliance with the requirements of Islamic law but also because of the objectives and values it promotes. Islamic banking and finance (IBF) was intended to bring an Islamic vision of the economy to the financial sphere in an effort to realize human wellbeing (maslahah) and a just and fair order of society. Financial practices are to be arranged to meet those objectives. Adherence to maqasid al-Shari'ah as the grand objective of Islam is necessary for developing genuine and indisputable �Islamic� finance. The �Shari'ah-compliant� title carries the expectation of a financial system and practices that are truly based on all the tenets of the Shari'ah, namely the 'aqidah, Islamic legal principles (al-ahkam al-shar'iyyah) and ethics (akhlaq), and that serve the noble goals prescribed by Islam (maqasid al-Shari'ah). However, recently there have been growing debates about the extent to which the objectives of the Shari'ah are being realized in the Islamic financial industry. It is argued by some that satisfying the minimum legal requirement of Shari'ash compliance is not sufficient.

Islamic finance uses the Shari'ah as the backbone of its system. The Shari'ah not only contains the principles and foundations upon which the financial system is established, but alos provides guidance for setting the industry's direction. Practically speaking, it is the Shari'ah scholars, in their role as interpreters of the Shari'ah, who are charged with guiding the industry. They have a key role to play in maintaining the credibility and integrity of the industry by requiring Islamic financial institutions (IFIs) to adhere not only to the Shari'ah's technical requirements but to its values and principles as well...

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.

Shariah compliance is the core of Islamic finance and it is the most significant feature for any Islamic financial institutions. It is the very objective of Islamic financial institutions in all their operations, products and affairs. With the enforcement of IFSA 2013, penalties and consequences of not following Shariah compliance can be severe. Notwithstanding all the efforts that have been taken to strengthen the Shariah compliance framework and mitigate the occurrence of Shariah non-compliance at the Malaysian Islamic banking institutions, incidences of Shariah non-compliance do still emerge and materialise. Thus, this study is an effort to examine the subject of Shariah non-compliant (SNC) events in selected Malaysian Islamic banking institutions. The researcher attempts to explore the nature and framework of SNC events in the Malaysian Islamic banking industry by giving emphasis on on the four main aspects of SNC events i.e. (i) detection, (ii) rectification, (iii) implication and (iv) cause. This research is a qualitative study in nature. Data was collected using in-depth interviews and focus group discussion. The selected interviewees and participants are individuals who are involved directly with the day-to-day Shariah non-compliance management at the Malaysian Islamic banking institutions. The first chapter dealt with the introduction to this study, covering the objectives, problem statements, research questions, motivation and significance of the study. Then, the second chapter elaborated on the main SNC elements form Islamic legal perspective as well as the development of Malaysian Islamic banking system based on the principles of Shariah compliance. The third chapter reviewed previous literature related to Shariah non-compliance in Islamic banking and finance. The fourth chapter described the methodology adopted to realise the objective of this study namely interview, focus group, triangulation and content analysis. The fifth chapter discussed the results of the interviews and focus group discussion. Then, the sixth chapter presented the main findings of this research based on its four objectives. Both chapters five and six constitute the findings of this research. The final chapter concluded the study with several implications and recommendations.

Sukuk are active Islamic finance instruments offered in various jurisdictions and have experienced various events in the recent years. Several sukuk defaults in 2009 highlighted a number of Shari'ah and legal issues that are necessary to be discussed. As a part of the prerequisites to fulfil Shari'ah requirements, compliance to the relevant laws is also a necessity. Among the issues that will be touched upon is ownership of the asset of the sukuk which will include discussion about 'al Qabd' (taking possession). Next, rights of the sukuk holders will be discussed to see whether their interests are well protected and in this context the concept of asset backed will be differentiated from that of the asset based securities. Discussion on the contentious purchase undertaking in sukuk dealings will follow in order to highlight its status and effect on the sukuk and parties to the transactions. Then, the practice of tranching in sukuk issuance will be discussed followed by legal documentation of sukuk issues. In the end, the paper will present way forward for sukuk, so that these issues are further addressed for better sukuk issuance.

An abstract is written in Arabic.

Awqaf properties in Malaysia have evolved over the years from being in the nature of consumptive immoveable properties used for religious purposes like madrasahs and mosques into productive and mixed-use type real estate properties like hotels, office buildings and commercial type properties. The regulatory and legal frameworks have played a vital role in the evolution of waqf sector and its management through the State of Islamic Religious Councils (SIRCs), the Department of Waqf and Hajj (JAWHAR) and Yayasan Waqaf Malaysia (YWM). In fact, waqf in Malaysia operates under three separate laws, namely: Islamic Law, Federal Territory Act or State Enactments relating to administration of the Islamic Law, State Waqf Enactments. In addition, the 2007 national fatwa permitting cash waqf in Malaysia brought about diversification of awqaf properties through the introduction of several cash waqf schemes by local banks, federal agencies as well as State Islamic Religious Councils (SIRC). Further developments were seen with the development of the concept of "corporate waqf" and waqf shares as well as innovative awqaf products in the takaful sector and the Islamic capital market. Another significant development occurred in 2015 with the introduction of the Labuan International Waqf Foundation (LIWF) by the Labuan International Business and Financial Centre (LIBFC). Through qualitative research and content analysis, this paper traces these developments in Malaysia through the lenses of governance, reformation and transformation. The research also adopts the analytical method to evaluate the viability of waqf in the Malaysian context. Some of the issues that will be touched on are whether the regulatory framework for waqf in Malaysia has moved in tandem with these developments, innovative use of waqf for financial inclusion, as well as the online platforms to collect waqf funds.

The practice of waqf has existed in Malaysia since the coming of Islam to the Malay Archipelago in the 9th century (CE) (Arnold, 1913). The early awqaf properties were in the form of prayer rooms (surau), mosques, cemeteries and subsequently, madrasahs (Dahlan & Kamarudin, 2006). Mahamood divides the history of waqf in Malaysia into three phases, namely, pre-colonial Malaya, colonial Malaya and postindependence Malaya (Mahamood, 2006) but notes that there has not been much research done on the pre-colonial period in order to confirm the first awqaf properties in Malaya. Based on the premise that the earliest awqaf created were in the form of mosques, the earliest official mosque is said to be the Kg. Laut mosque in Kota Bharu, Kelantan that was built in 1676 CE (Mahamood, 2006). Nevertheless, recent research by historians, based on excavation of Lembah Bujang, an area in the northern state of Kedah in Peninsular Malaysia, has found traces of an old mosque dating back to the 9th century (Dahlan & Mohamad, 2018).