This research examines the issue of zakah on non-current banking debts within its theoretical framework. The main problems dealt with are the conflicting contemporary juristic opinions on the issue of zakah on non-current banking debts as well as the conflicting ways that these opinions have been implemented. This makes it necessary to pinpoint the most important causes for the controversy and to identify the weightiest opinion on the matter. The study begins by defining non-current banking debts and identifying their most salient characteristics. It then undertakes an explanation of the classical scholarly controversy regarding zakah on debts which are not yet due. The authors have chosen the second view, which is that zakah is obligatory on debts that are currently due and upon the capital and profits that will come due during the current financial year. Nevertheless, the authors see the necessity of an empirical study relying upon experts in the calculation of zakah to explore the economic impact that implementation of each of the three views mentioned would have and to choose the opinion that secures justice for both sides of the zakah function (those upon whom it is due and its rightful recipients). Regarding the aggregate wealth upon which zakah is due, the study has examined the views of contemporary scholars on the zakat able wealth of financial institutions. This is determined by accounting for all of the institution's assets and all of its liabilities. The study explains the most prominent resolutions on this matter, as well as the evidence cited, without voicing a preference for one resolution over another. The study also deals with the scholarly controversy regarding the zakah obligation on the government's share in Islamic financial institutions in which it owns all or part of the shareholder capital. The authors favor the third approach regarding the obligation of zakah on mixed wealth, that if the government rules it to be obligatory it shall be levied on all the shares, including those of the government.

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

The establishment of the Takaful and Insurance Benefits Protection System (TIPS) in Malaysia is a statutory requirement. TIPS aims to ensure financial stability, soundness and public confidence. Perbadanan Insurans Deposit Malaysia (PIDM), known internationally as the Malaysia Deposit Insurance Corporation, is the sole regulatory body entrusted with the mandate to regulate deposit insurance across the country. At the outset, its mandate was confined to banking institutions. Since 2010, however, PIDM’s role has been extended to include takaful and conventional insurance institutions. With regard to takaful, the operation of the Takaful Benefits Protection System (TBPS) and the relationship between PIDM and its takaful members pose major concerns that have been raised by the industry in Malaysia. The concerns are related to contractual relationships, sources of premiums, the subject matter of the contract, and the services and guarantee that PIDM provides for takaful participants. This research aims to provide critical Shari'ah analysis and evaluation of the current model of Takaful benefits protection system. It examines the existing model to ascertain to what extent it accomplishes the statury mandate and to what extent it meets Shari'ah requirements. Adherence to regulatory requirements is a must. The takaful industry faces some major challenges in trying to realise the interests of the takaful participants and its shareholders while satisfying the regulators. Thus, it is imperative to conduct an investigation that resolves these thorny issues in a win-win manner.

Abstract not available.

An abstract is written in Arabic.

Intangible assets are becoming evident in a number of Islamic financial products. Their presence in the Islamic financial market is due to their ability to address and accommodate the pressing need to diversify the asset pool in the industry. Despite their increasing presence in a number of Islamic financial products, their nature and characteristics have not been the subject of the research they deserve. Hence this research is undertaken to examine the definition, concept and legality of this class of asset: intangible assets. This paper aims to achieve the following objectives: i. To explore the definition and concept of intangible assets from Shariah, legal and accounting perspectives; and ii. To examine pertinent Shar??ah issues on intangible assets, particularly with regard to recognition and measurement, financing and trading, and zakah obligation.

Intangible assets are regarded as one of the most important asset classes for financial institutions, and their importance and consideration is rapidly increasing. There are existing, well established conventional standards on intangible assets (IA); however the Shariah standard on IA is discussed rather minimally. Thus, this paper attempts to discuss the vital issues related to intangible assets: recognition and measurement, financing and trading, and zakah, which represents a grey area for the Islamic finance industry. The research employs critical analysis. It aims to provide clarification on the concept of intangible assets from the point of view of the Shariah as well as an analysis of pertinent Shariah issues on IA. This research explores the following: (i) there is an issue of gharar in the identification and determination of IA due to non-existence of any physical substance and due to future benefit being a probabilistic matter; (ii) it is generally permissible to finance and trade IA and (iii) zakah is obligatory on IA if the intention is to trade them either at sale price if they are sold or at market price if they are owned by a trader.

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

Recent calls for risk-sharing - as expounded in the 2012 Kuala Lumpur Declaration, the 2014 Jeddah Declaration and the 2014 International Monetary Fund statement - elucidate the present situation of Islamic banking and finance: an acknowledgement that risk sharing is a "salient characteristic" of Islamic financial transactions on the one hand and that it is "not deeply embedded" on the other. The objective of this practical evidence-based research paper is to address this schism between prescription and practice. It recapitulates the principles underpinning risk sharing and the reasons why it is integral to the Shar??ah and why (as stated in the Declaration) risk transfer and risk shifting violate a Shari'ah principle. he paper presents preliminary research utilizing empirical data from Malaysian Islamic banks and the Malaysian stock market as a proxy for the real economy. It considers newly enacted Malaysian legislation, the Islamic Financial Services Act 2013 (IFSA), from the perspective of its aim to more clearly define the products and activities of Islamic banks.

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

Research and innovation are crucial for the progress of the Islamic economy and finance, as they provide the foundation for its growth and long-term sustainability. Engaging in ongoing research, creates novel financial solutions that not only adhere to Shariah principles but effectively cater to the specific requirements of various markets and stakeholders in Muslim countries. This innovation is essential for the expansion of Islamic finance, as it guarantees accessibility to all sectors of society, including those who are unserved and underserved. Research also plays a crucial role in developing maqasid-driven financial solutions that promote financial inclusion and empower individuals and communities. By optimizing research and fostering innovation, Islamic finance has the potential to adapt and address contemporary difficulties while adhering steadfastly to its ethical and social justice values. Furthermore, research plays a pivotal role in the establishment of a strong regulatory framework that promotes the expansion of Islamic finance, guaranteeing its durability and stability. This is the process of establishing uniform standards across many countries, which enables more seamless transactions across borders and enhances the worldwide influence of Islamic finance. Research and innovation enhance the inclusivity and resilience of Islamic financial sectors, aligning them with the Islamic worldview that helps understand the universe, people, and their connection with Allah and serve as guidance on morality, social interactions, and influence our behaviour and decision-making. Islamic finance may contribute significantly to the sustainable development of Muslim nations by advocating for ethical investment, environmental stewardship, and social justice.