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.

An abstract is written in Arabic.

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.

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.

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...

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 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.

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.

An abstract is written in Arabic.

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...