Since the introduction of LIWF by the LFSA in 2015, it has garnered tremendous interest from various interest from various parties for its flexibility, sustainability, and governance features. Relevant guide allows Malaysian founder or assets situated in Malaysia to be endowed into the LIWF, subject to obtaining necessary approval from the SIRC. Though the governing charter for such establishment is the Waqfiyyah itself, it has to take into consideration various ongoing issues and discussion on the forum of convenience to hear, try, and decide on dispute related to the Waqf, special position of the SIRC as the sole Mutawalli in the states in Malaysia ...

This paper aims to apply the doctrine of siyasah shariyyah to a policy proposal in the area of monetary economics, namely, the Grondona system of conditional currency convertibility, which has been proposed as a practical means of resisting the economic instability caused by the present-day fiat money system. The paper uses library research to review the literature relevant to the Grondona system, and examines the extent to which its operations conform to the principle of siyasah shariyyah, thereby encouraging Maslahah, i.e. the public interest. The paper includes important implications for the policymakers in the Organization of Islamic Cooperation countries for the possible implementation of Grondona system.

Beneficial ownership is applied in the modern Islamic financial contracts such as financing and sukuk structure, especially in countries where common law is dominant. It has been recognized by some scholars and rejected by others. In this regard, the concept of beneficial ownership in Shari'ah should be analysed to develop a clear interpretation of the concept of beneficial ownership from the Shari'ah perspective. The purpose of this study is to examine the meaning of beneficial ownership in Common Law system and its recognition from the Shari’ah point of view. It begins with identifying the meaning of milkiyyah (ownership) and its characteristics in the Islamic law and followed by the analysis of beneficial ownership in the current practice of Islamic finance as to whether it fulfils the Shari’ah requirements. The approach that is applied in this study is qualitative research in nature, with regards to documentation and secondary sources by reviewing and analysing the application of beneficial ownership in Islamic banking; in addition, some interview sessions were conducted with practitioners involved in the financial industry. The findings of the research are that the transfer of ownership in Shari’ah immediately occurs after the execution of ijāb and qabūl and interestingly, this idea is also shared by the Common law, which actually borrowed it from the Islamic law.

This paper is a preliminary research on studying the application of beneficial ownership in Islamic financial products. It aims at investigating the meaning of beneficial ownership and its recognition in the Shari'ah perspective. This paper starts with identifying the meaning of milkiyyah (ownership) and its characteristics in the Islamic law and followed by the discussion on beneficial ownership from legal perspective. The study emphasizes on the historical and theoretical aspects of beneficial ownership. It then critically elucidates the meaning of beneficial ownership and its use in commercial transaction as to ascertain whether its use is in compliance with the requirements of ownership in Shari'ah. Analysis is done via the method of takyif fiqhi (fiqh characterisation) on the use of beneficial ownership. Some Shari'ah issues would be examined carefully by comparing the views of classical jurists and then supported by modern jurists. Finally, the study suggests that the beneficial ownership should be considered as real ownership since it is exclusively used in registration and legal documentation because Shari'ah has allowed the transfer of ownership based on a sole basis of contract.

In Islam, a loan (qard) is considered a gratuitous contract, and providing a loan to a person in need is a recommended (mandub) act for which a lender is rewarded. The gratuitous nature of the loan contract is emphasised in various hadiths which also prohibit the lender from deriving any stipulated benefit from the loan he has provided. Loans that generate conditional benefit to the lender are considered usurious. The practice of usury (riba) is inextricably tied to the loan and debt where a lender charges the borrower an additional amount. The main focus of this research paper is to provide a critical discussion on the ruling that prohibits the lender from deriving conditional benefit from the loan, and its related issues. We have examined, in the light of juristic opinions, the status of different types of stipulations that would entitle the lender to various types of pecuniary and non-pecuniary benefits. Regarding the stipulation that a borrower should compensate the lender for inflation, we have argued that a creditor is entitled to the return of his money based on the original purchasing power of the currency at the time when the loan was provided. However, this should be resorted to only in cases of hyperinflation when the value of the currency is drastically depreciated.

Consumer protection has never been more needed now as financial products and services are widely available. Due to information asymmetries, consumers often have lower bargaining power when using financial products and services. The concept of consumer protection is not directly found in classical Islamic writings. However, it is part and parcel of the Maqasid al-Shariah and evidenced in the Qur’an and Prophetic traditions. This study focuses on the issue of consumer protection in Islamic home financing from the Shariah perspective and related specifically to abandoned housing projects in Malaysia. It is an endeavour to find out the extent of protection consumers get when their homes financed from Islamic financial institutions end up abandoned. It is a qualitative study based on primary Shariah sources, analyses of legal documentation/structural operations of BBA, ijarah muntahiyyyah bi al-tamlik, musharakah mutanaqisah and tawarruq) and information gathered from interviews. Content analysis was applied to analyze all relevant information leading to the findings. The review of legal documentation found that there are no clauses, terms and conditions that protect consumers as most of the clauses appear to be in favour of the bank in the event the project is abandoned. Operationally, regardless of the contract, the study found that they do not reflect the inherent rights of protection especially for homebuyers in case of abandonment. The products are structured that all risks and liabilities are transferred to customers and the use of standard legal documentation has seen to this.

The aim of this research is to examine the issues and challenges of the Islamic home financing market Afghanistan as the country is facing substantial housing shortage due to its growing population and unavailability of land in the major cities where unclear land titles, lack of legal and regulatory frameworks, absence of national housing policies and foreclosure laws constituted major barriers. These problems are compounded with the lack of supply of housing finance and people's low financial capacity to take bank loans and financing. This study first examines the current Islamic banking legal and regulatory framework ...

The slides highlight the issue facing in Islamic finance industry, limited liability in Islamic law, and discussion and analysis of the study.

Cash waqf plays an important role if channelled to address economic challenges upon specific segment in the society for their sustainable economic empowerment prepare them upon economic challenges ahead. Through the application of cash waqf, we are able to promote the benefits of Islamic waqf to the society. In this paper, we analyse economic challenges among youth in a developing economic environment in the case of Malaysia. We also try to investigate the practicality of cash waqf utilization as major solutions to the problems. Based on qualitative approach covering library and online academic study, we try to analyse how Islamic cash waqf development can empower the youth ...

Studies on waqf have successfully caught the attention of scholars to discuss its various aspects especially the role of waqf in the form of cash waqf in the contemporary environment. Cash waqf is increasingly gaining popularity among Malaysian Muslims, and waqf institutions are expecting more cash contributions in order to develop idle waqf lands. The Malaysian government has also given tax-exemptions for cash waqf donors to encourage more contributions. However, total collection of cash waqf is still not very large. Thus, the waqf institution requires a new mechanism of cash collections as waqf. One way for that is deduction from employment income. This study intendsto examine the factors that influence the behavioral intentions of Muslim employees to donate through deductions from employment income. Using Theory of Reasoned Action (TRA), we attempt to identify the factors that may influence the behavioral intentions of Muslim employees to contribute to cash waqf. A total of 380 Muslim employees, both from public and private sectors, from the Klang Valley, were involved in the study. The results show that the attitude and subjects’ norms toward behavioral intentions are distinctively noted by the respondent. Furthermore, the structural equation model used in the study verified the structural relationship between attitude, subjective norms and behavioral intentions of Muslim employees. It is also found that the attitude of Muslim employees has more influence compared to subjective norms.

This dissertation examines financial crimes from a Shari'ah perspective by looking at the specific offences of illegal deposit taking and criminal breach of trust in Malaysia. The underlying principles of criminal law in Islam is espoused to give rise to the nomenclature of financial crimes within the Shari'ah by exposing elements of criminal activities that are acted in the realm of finance. The elements of offences for Illegal Deposit Taking and Criminal Breach of Trust are examined through statutes and case laws and compared to the elements of crime available in the Shari'ah ...

The first objective of this study aims to investigate the current status of financial inclusion and the second research objective aims to study the determinants of populations' refusal or inability to participate in banking system. The qualitative approach is used for the first research objective whereas quantitative technique is used to address the second objective. For the purpose of quantitative approach, primary data was collected through survey questionnaires from financially excluded population (individuals without a bank account or having only salary account) in Kabul province to answer the hypotheses outlined for this study. The data was analyzed using Structural Equation Modeling to determine the factors that contributed to financial exclusion ...

This paper aims to propose a modality for the mitigating of Shari'ah non-compliance risk that may arise from voidable contract. Despite all the positive legal developments and achievements that are provided by the Islamic Finance laws that are enacted in the recent years, the question of voidable contracts (al-aqd al-fasid) remains a lacuna in the legal framework of Islamic finance. Although, in Malaysia the Contract Act (CA) 1950 provides a number of provisions that deal with voidable contracts, it does not look at the contract from the Islamic perspective. It provisions are restricted to the conventional system ...

The Islamic finance industry continues to be characterized by uncertainty over how it will deal with individual as well as corporate insolvency. As a result, interest in this area of law is growing. To this end, Islamic insolvency law is emerging as an independent field of study. Being a legal exploratory study using the library method, this study aims to highlight some of the humane principles that should inform a framework for the industry. The author made an attempt to trace back these humane principles to the primary and secondary sources of Islamic jurisprudence. In addition, the author has attempted to focus on the specific legal differences between Islamic and civil law in terms of insolvency. The outcome of this study emphasizes the need for policy makers to focus on both the substantive, and procedural rules of Islamic Banking and Finance. It further highlights that Islamic financial instruments need to properly be geared towards dealing with default or default-like situations and that community resources need to be channeled towards the development of dispute resolution mechanisms.

Like many other financial institutions, Bahrain-based Arcapita Bank operating in the United States was hit hard by the Eurozne crisis that followed the global financial crisis. Unable to restructure its $1.1 billion debt obligations due in March 2013, the bank decided to file for Chapter 11 protection in the US Bankruptcy Court. This case study introduces Arcapita and its operations, explains the US Chapter 11 and its important aspects like debtor in possession (DIP) financing, highlights the most significant episodes of the Arcapita case, and concludes with important lessons embedded in the proceedings. Available in physical copy only (Call Number: HG 3368 A6 I82Na)

Wealth and property are the pride and splendor of humans, in so, those who are willing to donate could be considered as those seeking Allah's (s.w.t) blessing and mercy. Therefore, the practice of establishing and donating to waqf is an important medium to draw oneself closer to Allah (s.w.t). By willingly giving away things that are most loved, one is deemed to get Allah's (s.w.t) blessings. Apart from being a source of development for the economy of Muslims, this practice is strongly encouraged in Islamic doctrine given the benefits it guarantees in the hereafter and this world ...

An effective and universally acceptable legal, regulatory, and insolvency framework for Islamic finance in general and sukuk in particular is currenly lacking. Of particular concern is the question of how a secular court may protect the rights of sukuk holders. East Cameron Partner (ECP) sukuk is an interesting case where many of issues in sukuk insolvencies have been highlighted. The current study is concerned with the background of ECP sukuk issuance, its insolvency, its filing for bankruptcy under Chapter 11 of the United States' Bankruptcy Code and the behaviour of the US bankruptcy court towards the issue of the ownership of the sukuk holders...

The practise of cash waqf is increasingly gaining popularity among the Malaysian Muslim. Waqf institutions (SIRCs) are responsible to utilise the collection of cash waqf to develop relevant projects in order to benefit the society in general. The purpose of this study is to explore the cash Waqf donors’ priority toward what types of development that fulfilled the current need of the society. Hence, to accomplish this purpose; thirty (30) Muslim employees who have contributed cash Waqf were interviewed. This study employs analytical hierarchy process (AHP) analysis to identify the rank of the developments that priorities by donors. The result shows that the cash waqf contributors prefer to channel their money for Waqf development in the following rank order: (1) education, (2) health, (3) masjid and madrasah, (4) social-care and welfare (5) trade and commerce (6) environment (7) infrastructure and (8) art, culture and heritage.

This research examines the possibility of using the salam (future commodity sale) contract as a fixed deposit instrument that would help Islamic banks in mobilising deposits on the liability side of their balance sheets. It highlights the features and structure of this product - called reverse salam - and discusses the use of hedging tools to make the product more efficient and useful.

Islamic banking industry in Pakistan has been growing since its inception back in 2001. The assets and deposits of Islamic banking industry 11.9% and 13.7% respectively of overall banking industry by the end of September 2017. However, still being a small portion in overall banking industry, Islamic banks make efforts to come up with innovative products which on one hand must Shariah compliant as well as competitive with conventional products. This study discusses a specific product namely "running musharakah" which is proposed by Shaykh Taqi Usmani in 1998 for the financing of working capital and operational needs based on the concept of Shirkah al-aqd. This idea is adopted by Meezan Bank Limited in 2008 and gradually has become popular in Islamic banking industry of Pakistan ...

Public-Private Partnership (PPP) initiative increases economic growth as well as optimise resources in public sector due to private sector plays important roles in striking a balance of the country's financial statement. It is observed that some of the PPP models for economic development in Malaysia are not Shariah-compliant. This paper discusses on the level of compliance for the PPP models against Shariah parameters and to provide altematives should there is any non-Shariah compliant. The parameters consider form and substance perspectives including identification of prohibited elements. It is observed that two (2) models; Build-Lease-Transfer and Build-Lease-Maintain-Transfer are not considered as Shariah-compliant models due to loan and gharar elements. Ijarah mutahia bittamlik and murabahah contracts are recommended as altematives for the former while musharakah mutanaqisah contract for the latter. The models have to be further scrutinised such as rental rate so as to establish fairer price for both public and private sectors ...