This article is an attempt to formulate a viable Shari'ah framework for juristic differences in contemporary Islamic finance. While acknowledging the legitimacy of juristic differences as an inherent feature of Islamic law, such differences could jeopardize a nascent Islamic finance industry, leading to what has come to be arbitrarily termed 'Shari'ah risk' in Islamic finance. Two blocks appear to represent the two disputing sides since the launch of this industry, i.e., the Middle Eastern and South East Asian markets. Thus, this article aims to bridge differences in Islamic finance by proposing a framework and set of parameters that can be applied to all Islamic banking, Islamic capital market and takaful products. Apart from the outlined framework that aims to circumvent juristic disputes, this article concludes that juristic dispute resolution in Islamic finance will not be attainable until one can appreciate the legal and regulatory differences in which Islamic finance operates worldwide.

The main purpose of this research is to figure out the most effective determinants that play a vital role in enhancing the effectiveness of the internal Shari'ah audit in the Islamic banking industry. This paper reviews the existing literature to build comprehensive knowledge that would assist in determining the main factors that impact on the effectiveness of Shari'ah audit in Islamic banks. This research proposes a conceptual framework of factors that impact on Shari'ah audit effectiveness in IBs based on previously published studies. The proposed framework includes external and internal factors as well as internal Shari'ah audit structure, process and requirements. First, the regulators need to provide a detailed framework for Shari'ah audit which covers the main requirements for effective Shari'ah governance. Second, Islamic financial institutions (IFIs) need to pay more attention to following the Shari'ah audit process in order to achieve the objective of effective Shari'ah governance. Finally, the dearth of empirical research on the role and effectiveness of Shari'ah audit in Islamic banking highlights the need to develop an appropriate methodology to enhance the study of the effectiveness of Shari'ah governance practices. The Shari'ah ensures compliance with its rules and regulations and enhances the soundness and credibility of the Islamic finance industry. This study identifies a number of issues that require further investigation in order to establish a better system of Shari'ah audit and to identify the factors that affect Shari'ah auditing practices. This paper is unique in covering the main elements that have influence on the effectiveness of Shari'ah audit and proposes them in one framework.

This research addresses a number of issues related to surplus distribution in takaful. The first section is devoted to revisiting the main financial concepts related to the surplus such as underwriting surplus and profit. Modes of distribution such as pro-rata and offsetting will also be discussed in the light of equity principle advocated by the Shari'ah. The second section deals with the major juristic views and doctrines delineated against and in favour of surplus distribution. Legal doctrines such as ownership or otherwise surplus after donation will be meticulously discussed and reviewed in light of the current practices of takaful operators. The last section deals with a general outline of Shari'ah parameters in relation to equitable surplus distribution, followed by scrutiny of surplus distribution practices of a number of takaful operators both in Malaysia and the Gulf States. This article argues that, while it is strongly recommended to redistribute the surplus to the participants only, there are exceptional reasons supported by Shari'ah evidence allowing takaful operators to share in the surplus.

The common academic discourse within Islamic banking related to the use of credit cards has generally been silent on Islamic interpretations and analysis of the technological aspects of the transactions. There seems to be a gap of understanding amongst academicians as to how these technologies work and therefore little has been addressed as to the ethical nature embedded into the structure of the commonly used technologies in banking. This paper addresses the technology behind credit cards and seeks to elaborate the Islamic context in which the various aspects of the technology can be interpreted. The purpose for writing this paper is to show that the basic principles behind how credit card technology works already exist in the Quran.

The research aims primarily to identify the main macro objectives of Shari'ah (macro maqasid) that the regulators are supposed to imbue in the Acts and guidelines governing Islamic Financial Institutions. Focusing on Malaysia, the research starts with the conceptual framework of Islamic finance regulations, which addresses the objectives enshrined in the Acts and guidelines promulgated. After exposing the overall environment of Islamic finance in Malaysia, the research discussed some obstacles of regulations, namely harmonization between Shari'ah and law and its potential impact on the realization of maqasid al-Shari'ah. In order to give a glimpse on further obstacles, the research briefly discussed the governance framework, the prudential and risk management regulations, and the Shari'ah standards in terms of maqasid compliance. The research found that the Malaysian expertise in Islamic regulation is very commendable but no free from criticism as some are deemed maqasid non-compliant. More importantly, the research delineated the macro maqasid entrusted with the regulators to observe and imbue in the regulations of Islamic finance. The research found that Islamic finance regulations are not completely independent from conventional ones, let alone the independence from international regulatory regimes and practices. This should call for the propounding of a theory of maqasid specific to Islamic finance focusing on regulations at macro-economic level. The study recommends the operationalization of the macro maqasid at the regulatory level first before operationalizing them at the level of Islamic financial Institutions.

Nomination, in the context of takaful (Islamic insurance), involves the takaful participant nominating a person to receive the takaful benefits in the event of the participant's death before the maturity of the takaful plan. Distribution of the takaful benefits that are to be received upon maturity of the takaful plan is a main concern arising in family takaful, an Islamic alternative to life insurance. Upon the death of the participant, the takaful benefits may either be payable to the estate of the participant or to a person nominated by the participant as the sole recipient of the benefits of such a takaful policy. The effect of such a nomination is the central focus of this research paper. Reference to the Islamic Financial Services Act 2013 (IFSA) is crucial to identify the nature, position and effect of nomination in Malaysia.

This research intends to shed light on a number of issues related to surplus distribution in takaful. The first part is devoted to revisiting the main financial concepts related to the surplus such as the underwriting surplus and profit. Modes of distribution such as pro-rata and offsetting will also be discussed in the light of equity principle advocated by Shari'ah. The second part deals with the major juristic views and doctrines delineated in favor of surplus distribution. Legal doctrines such as the ownership or otherwise of the surplus after donation would be meticulously discussed and reviewed in the light of current practices of takaful operators. The last part deals with a general outline of Shari'ah parameters in relation to equitable surplus distribution. This is followed by a scrutiny of surplus distribution practices of some modern takaful operators both in Malaysia and abroad. The research argues that while it is strongly recommended to redistribute the surplus to the participants only, there is a considerable Shari'ah ground allowing takaful operators to share in the surplus for reasons outlined in this research.

This research investigates the Shari'ah compliance of the pricing elements used in family takaful products. The reviewed literature has revealed a great deal of emphasis on the Shari'ah aspects of the takaful contract, distribution of surplus, models used, incorporating waqf in takaful, and the relationship among the parties. Other research has focused on the operational and technical aspects of takaful such as underwriting, pricing, reserving and risk management. None of these studies has addressed the Shari'ah compliance of the pricing elements of family takaful products. Through qualitative research using open-ended interviews as well as content analysis, this research analyses the conformity of family takaful pricing mechanism with the Shari'ah principles of price-setting (tas'ir). The research findings indicate that the assumptions of mortality and morbidity are Shari'ah compliant based on the principles of ibahah (permissibility), maslahah (public interest), istiqra' (induction) and 'urf (custom). However, the investment returns assumption is not quite fair to the shareholders should there be a loss in the investment. The research also indicates that the concept of time value of money is a Shari'ah compliant element that can be used to price family takaful products. Further, the findings highlight that the pricing elements such as health condition are deemed unfair by some practitioners. Similarly, adding an extra loading to the contribution because of family medical history should not be taken for granted.

This research addresses two methodological problems that seem to hinder the development of the concept of human welfare (public interest) in Islamic jurisprudence (Shari'ah). The first problem refers to the debate on whether maqasid is a philosophy or a method. The research tries to argue that maqasid moved from philosophy to method in order to revitalize the methods of inference in Islamic jurisprudence. However, as the paper argues, the new position of maqasid as a method had little effect on the dynamicity of Islamic jurisprudence during the time of Shatibi (d.14 century A.D) onwards. The latter's legal acumen is widely accredited with propounding a full-fledged theory on maqasid. In the second part of the research, we addressed the second problem which is the inadequacy featuring recent attempts by modern Muslim scholars and writers to formulate new concepts and present them as universal objectives of Islamic jurisprudence. The research dealt critically with these new concepts, concluding that they have not been methodologically confirmed or proven as they are simply attributes of Islamic law but not necessarily the ultimate ends of it.

The sale of debt is part of the jurisprudence of Islamic financial transactions that is used by people for a long time; however, it has become more prevalent in the present day. It is among the features of the modern era that an individual is either creditor or debtor, rather modern day institutions are based on debt transactions such as financial markets. A great number of people and institutions are dealing with debt- based transactions in all its forms and types without knowing whether this kind of transaction is halal (permissible) or haram (prohibited); this negligence is pointed out in the Prophetic tradition that states: "A time will come when a man doesn't mind if he is earning halal or haram money". In addition to that all types and forms of the sale of debt have significant impact on the deterioration of the traditional financial markets all over the world; it has become in the present day the anchor of financial markets which handle thousands of billions of dollars. Today, the world is drowning in debt at the level of individuals, companies, governments and international.

This research exposes the underlying maqasid embedded in Shari'ah contracts as applied in Islamic banking and finance. It addresses the problem of not observing maqasid in nominated and combined Shari'ah contracts as well as the problem of not sufficiently imbuing maqasid in products developed by Islamic financial institutions. As a benchmark of the maqasid of wealth, the research adopts Ibn 'Ashur's classification of maqasid to evaluate the conformity of Shari'ah contracts to Maqasid al-Shari'ah namely, justice, circulation, transparency, and firmness. The study focuses on three markets related to the application of Shari'ah contracts, namely, banking, Islamic capital market, and takaful. The study concludes that, by and large, the application of Shari'ah contracts has observed Maqasid al-Shari'ah during its development and initial application stages of Islamic finance products; however, offering such products in the market has raised economic questions as to their viability and economic values. In addition, the malpractice of some Shari'ah contracts has long raised concerns as to the maqasid compliance of such products. The research recommends a de-sophistication of Islamic financial engineering to minimise the possibility of convergence with conventional finance. The research also emphasises product differentiation based on less complicated combined Shari'ah contracts.