Technology has advanced with the spread of internet services. Statistics by the United States have estimated that internet facilities have been made available to over a third of the total world population and, in the same vein, access to mobile phones has been rendered to about 85 percent of the population. Crowdfunding finds widespread support via internet platforms and is gaining momentum as a means to empower people and businesses hitherto unable to access banking or access limited facilities therefrom. Today, it has become a mechanism for raising funds to build multi-billion-dollar industries. It is said that the difficulties encountered while struggling to source funds by newly-formed businesses following the 2018 global financial meltdown led to the emergence of crowdfunding. The objective of this research is to present a discourse on how crowdfunding can be facilitated leveraging on blockchain technology. This is a qualitative research where data from literature on the subject matter is analysed and conclusions derived. Outcome of this research revealed that integrating blockchain technology with crowdfunding is possible and benefits all parties involved in the transaction. This integration reduces transaction cost and, from governance perspective, provides certainty and trust to the system and mitigates risk for the parties.

Limitations of action designate extent of time after an event, as set by statutes of limitations, within which legal action can be initiated by a party to a transaction. No event is actionable outside the designated time as same is rendered statute-barred. This study aims to provide an insight into application and significance of Limitations Act 1950 and Limitation Ordinance 1952 to Islamic banking matters in Malaysia as well as Shariah viewpoint on the issue of limitation of action. In conducting the study, a qualitative research methodology is employed where reported Islamic banking cases from 1983 to 2018 in Malaysia were reviewed and analysed to ascertain the application of those statutes of limitations to Islamic banking. Likewise, relevant provisions of the statutes as invoked in the cases were examined to determine possible legislative conflicts between the provisions and the rule of Islamic law in governing the right and limitation of action in Islamic banking cases under the law. The reviewed cases show the extent to which statutes of limitations were invoked in Malaysian courts in determining validity of Islamic banking matters. The limitation provisions so referred to are largely sections 6(1)(a) and 21(1) Limitations Act 1953 and section 19 Limitation Ordinance 1953, which do not conflict with Shariah viewpoint on the matter. This study will prove invaluable to financial institutions and their customers alike in promoting knowledge and creating awareness over actionable event in the course of their transactions.

The objective of this paper is to explore the practical application of ta'widh and gharamah in Islamic banking in Malaysia with reference to the guidelines that are applicable to date; and find out the issues detected in the implementation of them. In the course of doing this, Shariah reasons for imposing ta'widh and gharamah in Islamic banking are discussed. Also, whether ta'widh and gharamah would be required for Islamic banking with reference to possible alternatives to them is also discussed. This qualitative study primarily focuses on library research and adopts case study approach for analyzing the application of ta'widh and gharamah. The jurisdiction of the study is Malaysia because the central bank of the country has made policies on the matter. The paper draws on observations made by Shariah scholars about the policies on the subject matter. This study gives an insight into the history and issues related to ta'widh and gharamah which are often kept tacit. It is recommended that future studies should look into the effectiveness of these two approaches to serve as a deterrent factor and contribute to the declining rate of non-performing financing in Islamic banks.

The objective of the paper is to discuss the application of tawarruq in Islamic banking generally. The modus operandi of tawarruq in Islamic banking is an essential discussion in jurisdiction like Malaysia, where most Islamic banks use tawarruq to structure Islamic banking products. This paper employs a systematic literature review on best practice models and mechanism of current tawarruq application. The outcome of the research helps to understand the modus operandi of tawarruq transactions practically with a view towards understanding its future prospects in the era of fintech. It is envisaged that this research will assist the growing understanding of the existing application of tawarruq in Islamic banking as well as its future development using technology.

Islamic finance has gained momentum in the world today. Irrespective of faith conviction, it has been accepted as a mode of financing in the world. The development of Islamic finance was gradual in the past. At the initial stage of its development, Islamic finance was concerned more with Shariah compliance of transactions and contracts used in it. Subsequently, focus was realigned on Shariah harmonisation with respect to juristic views and Shariah governance. Islamic finance encompasses some fundamental religious prohibitions and the promotion of certain virtues enshrined in Islam, to be observed in all ramifications of business dealings, including services provision. Therefore, Islamic finance works in line with Islamic religious principles such as a ban on usury or interest, gambling, uncertainty and outright speculations.

Indonesia's micro, small and medium enterprises (MSMEs) sector, with over 65 million businesses, is globally the largest. The sector accounts for more than 60 per cent of the country's GDP and employs over 97 per cent of its workforce. Yet, lack of access to finance due to the nature of the business, has constrained development of the sector. This study aims to examine usage of blockchain to aid microfinance and expedite MSMEs' access to finance in Indonesia. Employing qualitative research techniques, the study focuses on Baitul Maal Wa Tamwil's use of blockchain in providing micro sukuk for financing MSMEs. The study finds that using blockchain to offer microfinance services facilitates greater transparency about MSMEs, enables efficiency and accountability in their access to finance. It bridges the gap to MSMEs' access to finance, reduces cost of transactions and mitigates setbacks related to them. As blockchain drives the evolution of enterprises and microfinance institutions in Indonesia, regulatory bodies must stay abreast of these advancements to ensure that innovation progresses in tandem with appropriate regulations. As a learning experience, appropriate governance and legal framework needs to be phased in to accommodate blockchain, its peculiarities, and for it to foster financial access and deepen inclusion.

This research explains and reviews two innovative solutions based on blockchain that were used for Islamic social finance (ISF) projects by two separate companies, namely Finterra and Blossom Finance. Policy implications are suggested for the future use of blockchain in innovative financial products for the Islamic finance industry. This is a qualitative research conducted through library research and semi-structured interviews with experts and founders of Finterra and Blossom Finance. Data obtained from published literature and the interviews were accordingly examined and interpreted through content analysis to present the results in this research. There is rising interest in ISF for economic revival in the aftermath of the COVID-19 pandemic. Innovation through blockchain technology seems to be the future of ISF, hence the need for relevant stakeholders to understand the technology. However, there is a regulatory gap in terms of a proper legal framework to support blockchain-related innovations in ISF and a policy gap in the management of Shari'ah and legal risks involved in ISF transactions. This research is original because it explains unique case studies from the source of innovation itself, analyses the hurdles that were present, and offers recommendations for future use of innovative technology in the Islamic financial sector.

This paper aims to highlight resolution of Islamic finance dispute by common law-orient courts in Nigeria with respect to Shari'ah non-compliance and legal risks thereof, as well as the lesson to learn from Malaysia in that regard. This is with view to ensuring Shari'ah compliance and legal safety of Islamic finance practice as prerequisites for sustainability of the Nigerian Islamic finance industry. A qualitative method was used; interviews were conducted with different categories of experts and primary data collected in relation to Shari'ah non-compliance and legal risks in adjudicating Islamic finance dispute by civil courts and the role of expert advice as basis for court referral to Financial Regulation Advisory Council of Experts. A doctrinal approach was adopted to analyse relevant legislative provisions and content analysis of secondary data relevant to applicable provisions in matters of finance before civil courts.

There is a misconception that hajj and umarah is just a worship matter and the consequences of suspending these religious gathering due to the pandemic is only limited to delay of going Saudi Arabia to perform it. However, the purpose of this paper is to focus on the impact of the pandemic in hajj and umrah by exploring its impact on different stakeholders affecting its disruption due to the pandemic. This is a library-based study that uses qualitative method to explore the impact of COVID-19 on hajj and umrah. Thus, provisions of Quran and hadith on hajj and umrah were examined as primary data for the research to establish the importance of the rituals in Islam. Guidelines set by hajj regulators and instruments enabling them in that behalf were examined likewise. In addition, content analyses were made of relevant secondary data from published sources including articles, books, newspapers and web resources that embody scholarly, scientific and religious views on the issue being studied. It is realised that in the first year of the pandemic, while umrah is entirely suspended, hajj was scaled back and performed by 10,000 people altogether, a tiny segment of the over two and half million that partook in the ritual previously. Hajj and umrah have been greatly inhibited and jeopardised by the COVID-19 pandemic resulting in religious, social, economic, psychological effects on the eligible but affected Muslims and Muslims countries. Along these lines, recommendations were accordingly proffered on the way forward to better hajj and umrah management. It is anticipated that the findings of the research would assist policy makers to comprehend the impact of the pandemic on hajj and umrah to ensure that the policies they make in this regard would adequately cover every aspect affecting the stakeholders which is deliberated in this research. It is also expected that the recommendations provided in this paper will assist stakeholders of hajj and umrah to grasp the importance of taking precautions for any crisis similar to COVID-19 when it happens.

As a charitable institution, waqf is envisaged as an inherent segment of the Islamic financial services industry with potential to develop into a market for Islamic social finance. While the industry records growth and development with huge profits in its banking, takaful and capital market segments, it has been observed that pursuit of profits has overshadowed social and financial equity goals and thus disproportionately promoted in Islamic finance. Yet, waqf, with over trillion dollars' worth assets to its credit to advance these goals, is neglected and the assets left undeveloped and idle due to governance issues. Thus, eligible beneficiaries of those assets in several Muslim nations suffer with illiteracy, poverty and lack of healthcare among other social challenges that need social finance solution. Hence, the need to reconceptualise waqf governance in order to reawaken and develop it to assume its role not only as a social financing institution but for financial inclusion. Regulatory technology is turned to as answer to the governance needs to establish and develop a waqf social capital market, along with fintech for delivery of related products/services. In this chapter, a qualitative methodology with exploratory approach is employed in examining and analysing relevant data on waqf market in Islamic financial services industry to advance and contribute in the social financing drive in global developmental agenda. The chapter demonstrates the capabilities of fintech-powered waqf and regtech solutions therein in matters of waqf registration and/or establishment, e-KYC/KYD, detection and elimination of fraud, statutory reporting and compliance, etc., while leveraging on blockchain, mobile and cloud computing technologies. Thus, deploying regtech unlocks opportunities in waqf towards fulfilling the social financing goals of Islamic finance. Attaining this however requires synergy and collaborations for research in the workability of the technologies in compliance with Shariah and law, among all stakeholders in Islamic finance and economy.

Equity trading through stock markets is a popular avenue for investors to obtain capital gain and profits. However, a much less known stock exchange has also existed in the conventional markets known as the social stock exchange (SSE). Conventional SSE initiatives have been successful among a few conventional economies such as Brazil, Canada, Singapore/Mauritius and recently India. An SSE enables social enterprises that have as their business social and environmental causes to list their projects or instruments for investors to invest in. Unlike for-profit stock exchanges, an SSE’s aim is not monetary gain for the investors but returns in terms of counteracting social upheaval and environmental conservation. In other words, impact investment is the aim of investors. Thus, investors impact the world through their investments in the social enterprises on the exchange. This research examines the prospect of developing a digital Islamic social stock exchange (ISSE) and proposes that Islamic economies can pilot an ISSE to deploy the Shariah vision of philanthropy, investment and sustainability. In expounding this proposal, the research reviewed the SSE of Brazil, Canada, Singapore/Mauritius and India and conducted three in-depth interviews with prominent scholars in this area. While paving the way to enable social enterprises whose goals are social and environmental causes to obtain funding, appropriate exposure and connections, the research neatly situates social stock exchange within the principles of Shariah and ascertains the need for establishing an ISSE. The research accordingly formulated suggestions about requisite legal, regulatory and Shariah elements for establishing a digital ISSE and its operating structures.

The primary objective of this research is to introduce a pioneering takaful model that provides both provision and protection to the aging population by combining the concept of cash waqf with takaful. This model is designed to align with Shariah principles, ensuring sustainability and enduring impact.

Tawarruq which is also known as commodity murabahah in Islamic banking is widely practiced in Malaysia to structure different types of Islamic banking products. The widespread use of tawarruq has made Islamic banks to be re-named as "tawarruq banks" and some even call tawarruq as the "magic lamp" of the industry. Shariah scholars have criticised this frequent usage of tawarruq in Islamic banking industry of Malaysia, while the practitioners have replied by saying that if tawarruq is a shariah approved concept, then what is wrong with the usage of it? However, from the shariah perspective, the issue here is not about the shariah compliance of tawarruq transactions per se. It is about the shariah limitations imposed by the scholars on the use of it. This simply means that there is a reservation made by shariah scholars in allowing the usage of tawarruq contract in Islamic finance as tawarruq is a contract allowed to be used when one has to choose between a conventional loan and tawarruq. The purpose of this research is thus to show the alternative Islamic commercial contracts that could be used to structure Islamic banking products that have been structured in the market using tawarruq. It is anticipated that the outcome of this research will assist Islamic banking industry to understand why and how they can move away from tawarruq.

This paper aims to examine existing halal certification regime in Maldives and address impediments therein that challenge and inhibit the growth of the country's halal industry in relation to fisheries products. This is qualitative research based on first-hand experiences of the authors in the halal certification process in the Maldives. Doctrinal methodology is used in the analysis of primary sources of data, including Maldivian laws and halal certification regulations to identify issues of practical relevance. This is complemented with content analysis of secondary data sourced from journal articles, books, reports and online databases that were examined in identifying hindrances and loopholes in the halal certification process. Fish is generally halal, but processed fisheries products cannot be so deemed when certain additives and enhancers are constituents therein. At the moment, Maldives halal certification pertains only to fisheries products. Against this backdrop, this research identifies knowledge gap, legal and governance constraints pertaining to capacity as impediments towards the halal certification of such products in the Maldives. Such concerns hinder the Maldives from tapping the socio-economic benefits of the halal certification of its fisheries products to the desired level in the development of its halal industry.

Islam is a comprehensive religion and a complete way of life that provides guidance not only in matters of ritual and worship but also mundane activities. Ethical principles, generally termed akhlaq, are embedded in Islam as important component of its guidance system for all dealings. Wealth in Islam is considered a trial, or a possession meant to try one's obedience to Allah (SWT). While one enjoys wealth, it is as well regarded as an endowed favour from Allah that embodies entitlements of poor and needy members of society. Appropriate disbursement of the entitlement due to the poor is an obligation that brings to light the issue of wealth as a trial, particularly on those who might not duly discharge it. Zakat, a third pillar of Islam, together with sadaqat and waqf are mechanisms designed to channel those entitlements from wealth of rich members of the society to help the poor and needy who are poverty-stricken. Poverty is a prevalent global issue today which is said to be the reason for over 821 million people going hungry each and every day in some of the world's poorest communities (Islamic Relief, n.d.). Poverty is taking its toll on the economic and social aspects of the lives of the people such that in region such as Africa one out of four is undernourished.

The modern Islamic finance as an offshoot of financial engineering is the product of permissible innovation as a manifestation of the dynamism of Islam which allows for permanence and continued relevance of Islam in any age to come. Using technology or any permissible means to bring about financial solutions in society that ease human life is an integral part of the overall objectives of Shariah. Speaking in economic terms, Sharia strives at individual prosperity as much as of the society on the ideal that prosperity of individuals that make up a society underlies the prosperity of the society. In this modern age and time, financial inclusion constitutes a fundamental component of most governmental policies and action plans aimed at ensuring prosperity of society via improved social welfare to eradicate poverty and enhance living standard. Financial inclusion constitutes a fundamental component of such policies and action plans. Accordingly, Islamic finance is said to be committed to the ideal of financial inclusion having regard to its ideal of bringing prosperity to individuals and society in such a way that will translate to and help economies grow. This is to be pursued through every permissible means now available or to be invented in future, within the confines of Islamic values of financing.

This book addresses the growing significance of Islamic social finance as an alternative and sustainable financing approach in the world. With a focus on Malaysia, a global leader in Islamic banking and finance, the topics covered fills the gap in the extant research by providing in-depth coverage of the legal framework surrounding Islamic social finance. Written with students, researchers, and policymakers in mind, it explores the unique features and principles of Islamic social finance, which aims to achieve social objectives alongside financial returns. By examining real-life case studies and digital examples, readers will gain valuable insights into the practical application of Islamic social finance principles. Each chapter concludes with self-review questions, allowing students to assess their understanding and consolidate their knowledge. This book serves as a valuable resource for academics, researchers, and practitioners seeking to explore and implement Islamic social finance principles. With its comprehensive coverage and practical insights, it will will play a crucial role in promoting the understanding and adoption of Islamic social finance for sustainable development.

Shariah-compliance of Islamic finance transactions compels conformity with Shariah dictates in all aspects and ramifications of such transactions. Indeed, Islamic commerce and finance jurists are unanimous that Shariah-compliance lies at the very heart of Islamic finance transactions. Equally essential is dispute resolution, as it is unarguable that disputes will invariably arise in such transactions. A viable dispute resolution mechanism is a societal pillar indispensable for the regulation and sustenance of commercial transactions.

Islamic financial benchmarking is an area that requires research and needs practical solutions to advance the Islamic finance industry to a greater level. From the inception of contemporary Islamic finance, criticisms have been made about the fact that in Islamic finance, financing rates are benchmarked against conventional interest rates. To respond to these criticisms, Sharī ͑ah scholars have given justifications from Sharī ͑ah perspectives and in this regard some scholars ask: “Does consumption of beef suddenly become forbidden if its price were based on the price of pork?” (Alshubaily, 2018).

The purpose of this paper is to review the literature on Islamic finance vis-a-vis legal and Shari'ah non-compliance risks in its transactions and judicial dispute resolution in Nigeria. This is with a view to putting forward direction for future studies on the duo of legal and Shari'ah non-compliance risks and their impact in Islamic finance. This review is designed as an exploratory study and qualitative methodology is used in examining relevant literature comprising of primary and secondary data while identifying legal risk and Shari'ah non-compliance risks of Nigeria’s Islamic finance industry. Using the doctrinal approach together with content analysis, relevant Nigerian laws and judicial precedents applicable to Islamic finance practice and related publications were examined in determining the identified risks. Undeveloped laws, the uncertainty of Shari'ah governance and enforceability issues are identified as legal gaps for Islamic finance under the Nigerian legal system. The gaps are inimical to and undermine investor confidence in Nigeria’s Islamic finance industry. The review reveals the necessity of tailor-made Shari'ah-based regulations in addition to corresponding governance and oversight for a legally safe and Shari'ah-compliant Islamic finance practice. It brings to light the imperative for mitigating the legal and Shari'ah non-compliance risks associated with Islamic finance operations as crucial for Islamic finance businesses, Islamic finance institutions and their sustainable development. Based on content analysis, the review is wholly doctrinal and does not involve empirical data. Legal safety and Shari'ah compliance are not to be compromised in Islamic finance operations. The review would assist relevant regulators and investors in Islamic financial enterprises to understand and determine the impact and potential ramifications of legal safety and Shari'ah non-compliance on Islamic Finance Institutions.

This research investigates how Islamic banking institutions control default cases and the mechanisms they employ in handling such cases with reference to Malaysian Islamic banking regime. It was conducted on an exploratory design that employed doctrinal approach. Data were sourced from relevant statutes, regulatory guidelines, policy documents and established practices among Islamic banking institutions as well as academic texts that pertain to default cases. The data were examined with legal reasoning and qualitative analysis. The research finds that Islamic banks are prone to default cases and provide internal and external mechanisms to handle such cases in their operations. Though Islamic banks statutorily have wider scope than conventional ones, both banks are subject of the same framework in matter of credit risk regulations in Malaysia. The fusion of technology within procedures and governance mechanisms of dealing with default cases offers distinct benefits for Islamic banks in Malaysia. Analysis and reasoning in this research are restricted to the Malaysian Islamic banking regime only due to legal peculiarities among Islamic finance jurisdictions. Likewise, the research is confined to legal and regulatory perception of default cases only and could be furthered onto perceptions of other stakeholders in debt-recovery process. Again, subjective interpretation is inevitable in the analysis of some cases considered. This research contributes towards default cases literature in relation to Islamic banks and offers to fill research gaps therein. The research assists in understanding default control mechanisms employed by Islamic banks in Malaysia and stands to impart lessons to other jurisdictions thereon.