Citations

... Self-preservation, therefore, is not only to preserve one's natural urge of having more wealth, profit or utility, but also to gain comprehensive wellbeing of mental, spiritual and moral gain that will encompass this life and the hereafter (Roy, 1994). Chapra (2008) also argues that real wellbeing cannot be realized and sustained by merely increasing income, wealth and satisfying material needs at the cost of the spiritual. ...
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Purpose This paper aims to explain the nature of the economic agent in Islamic economics. He is commonly referred to as Homo Islamicus. Design/methodology/approach This is done by deriving the concept from the Qurʾān as the primary epistemological source in Islamic economics. The paper, thus, attempts to explore the message of the Qurʾān and internalize its concepts and values in their totality into the conception of the economic agent from an Islamic perspective. Findings The paper brings an insight regarding the nature of the economic agent in Islamic perspective. The concept of the economic agent that is developed from the Qurʾānic teachings will be useful in developing assumptions and theories in Islamic economics. Research limitations/implications This paper explores the normative behavioral framework of man from the Qurʾānic perspective (i.e. what is expected of man) in order to serve as the basis on which assumptions, concepts and theories could be produced and applied in real life. Further studies could extend the discussion by examining the application of the concepts in practice. Practical implications This paper promotes a normative behavioral framework that could be the basis in developing the body of knowledge of Islamic economics. Originality/value This paper promotes a concept of the economic agent in Islamic perspective, termed as Homo Islamicus, who is going to portray Islamic ethical teachings in economic actions. The paper brought insights from the Qurʾānic teachings and principles in developing the concept of Homo Islamicus who will be the representative agent in theorizing Islamic economics.
... Maqasid al-Shari'ah refers to the higher objectives of shari'ah. Imam al-Ghazali (d.505/ 1111) initially defined it as "to promote the well-being of the people, which lies in safeguarding their faith (din), their self (nafs), their intellect (ʿaql), their posterity (naṣl) and their wealth (mal)" (Chapra, 2008). In addition to these five objectives of maqasid al-Shari'ah, shari'ah scholars added an additional one of hifz al-'ird, meaning to improve the quality of life and motivate people to achieve optimal well-being. ...
... The five objectives of shari'ah can be described as the essence of the Islamic faith and together constitute the basis for social stability. Failure to observe these objectives would mean that one would sustain suffering in life and face an uncertain destiny in the Hereafter (Chapra, 2008). This, maqasid approach provides the methodological base through which the objectives of economic and social activities are achieved (Zailani et al., 2022). ...
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This paper applies an Islamic economic perspective to a major conundrum besetting the Islamic world, namely, how to provide financial support to expanding ageing Muslim populations. The paper employs a qualitative method involving descriptive and analytical methods whereby primary and secondary data are analyzed to inductively form a formula for an Islamic pension scheme. The results of this study suggest that despite the benefits and worldwide application of pension schemes, proponents of Islamic finance remain ill-prepared and slow to devise prototypes of workable Islamic pension models designed to address the needs of ageing Muslim populations. The vast majority of existing pension schemes fail to comply with the principles and values of Islamic law and ethics. As a generality, Muslim populations would prefer to remain without pension provision rather than endorse a religiously unlawful policy. The paper proposes that infaq as a key institution of Islamic moral economy, provides an ideal foundation for the development of an Islamic pension model that satisfies both legal and ethical Islamic stipulations.
... Furthermore, there is consensus among Sharia scholars that the substance of Alfalah can be empirically attained by pursuing the behaviours and policies demonstrated in the Maqasid Sharia approach, developed in the 12 th century by Al-Ghazzali 1 (Chapra, 2008;Hudaefi and Noordin, 2019;Kader, 2021). Maqasid Sharia provides a "roadmap" for the permissible halal and the prohibited haram that Islamic banks apply to develop products and services to alleviate poverty and promote wellbeing (Ibn Ashur, 2016;Alwi et al., 2021;Kader, 2021;Rohman et al., 2021). ...
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Investigating the relation between the institutional environment and bank stability has become the focus of recent empirical works. Since its emergence, the Islamic segment of dual banking systems has expanded faster than the conventional segment, albeit growth remains somehow impeded due to many factors. In most countries, the business environment is centred on the principle of "maximisation of owners' wealth", which may have stripped Islamic banks of their intermediary function to pursue activities in greater congruence with the alfalah-Maqasid Sharia approach framework. This study examines whether Islamic banks are more stable in countries where the environment is overwhelmed by Islamicity than in countries with less Islamicity. A sample of Islamic and conventional banks from 14 Muslim majority countries is employed for the 2016-19 period. The results suggest that Islamicity has a neutral effect on bank stability and that Islamic banks do not find higher Islamicity of the environment a supporting factor for their resilience. Our findings reject the 'Islamicity-stability" hypothesis for Islamic banks, suggesting that the Islamicity of the environment is irrelevant in dual banking systems. From a different angle, Islamic banks may seem to be a "disguised" version of conventional banks.
... It is levied from the wealth that has surpassed the threshold (nishab) and being disbursed to the eligible recipients or known as mustahik (Zayas, 1960;Qaradawi, 1999). Zakat can be a social safety net and give basic protection for sustaining life (Chapra, 2008). Moreover, Mohieldin et al. (2011) elucidate that zakat mobilization could help to solve extreme poverty in Muslim countries. ...
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Zmart program is a micro retail shop empowerment program using zakat funds to alleviate poverty, especially in urban areas. This research examines the impact of Zmart program on poverty alleviation and women empowerment. The general poverty indicators based on poverty line and had kifayah standard show that the number of poverty decreases after Zmart intervention. In addition, the impact of Zmart also measured using BAZNAS Prosperity Index (BPI) with a score of 0.68, meaning Zmart has a good impact on its recipient. The Gender Development Index (GDI) in the Zmart program shows an increasing value from 75.97 to 139.32. It means that there is significant emancipation for the female group compared to the male group in the program. These results show that the Zmart program favorably empowers women as it is shown that the GDI value exceeds 100 points.
... As reflected in Sharīʿah's laws or Maqāṣid al-Sharīʿah, Islamic economics and finance are motivated by human development and its preservation (Khan, 2019). Based on the Maqāṣid al-Sharīʿah framework human development progress is achieved when: (a) religious faith is supported and preserved, (b) life with dignity is maintained, (c) the future generations are cared for, (d) the mind and intellect are used responsibly, and (e) wealth and grace are provided (Chapra, Khan, & Al Shaikh-Ali, 2008). In which the Maqāṣid al-Sharīʿah framework was compiled by scholars including al-Ghazali, Ibn Taimiyyah, Ibn al-Qayyim, and al-Shatibi in the 12th and 14th centuries (Khan, 2019). ...
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Both governments and corporations consider the achievement of sustainable development goals as the most appropriate means to support people, the planet, peace, and partnerships. In this study, we examine empirically how Islamic banks contribute to achieving the UN sustainable development goals (SDGs) in the Arab world. Based on the data collected from selected countries namely, Saudi Arabia, United Arab Emirates, Kuwait, Oman, Jordan, and Sudan, the ARDL model was applied to analyze the relationship over the period 2013-2020. Based on the study's results, Islamic banks' financing practices in Saudi Arabia and the United Arab Emirates have positively contributed to achieving sustainable development goals. It was because the bank financing received in these countries tended to support economic activities aligned with the SDGs. Further, the mandatory corporate social responsibility disclosure programs set up by the Saudi Arabia and UAE governments to promote social responsibility made for an excellent choice in making a positive social impact and achieving sustainable development goals. On the other hand, no statistical evidence found that Islamic banks played a significant role in SGD's achievement in Kuwait, Oman, Jordan, and Sudan. This is because banks' financing practices in these countries appears to be more focused on economic activities that may not be aligned with SDGs, but probably focus on activities that maximize profits, or in other words, they are primarily concerned with business income-oriented. In light of the findings in this study, policymakers, central banks, and regulators can determine whether Islamic banks are promoting economic, environmental, and social responsibilities. They can also develop financing frameworks and standards to ensure Islamic banks are financing or investing in portfolios that meet the SDGs.
... Hence, the primary objectives of Shari'ah are to establish justice, eliminate prejudice, and alleviate hardship. Additionally, [38] stated that Maqasid Al-Shari'ah constitutes the spirit of all Islamic finance transactions. Alternatively, the authors of [39] believe that Maqasid Al-Shari'ah is a more comprehensive notion that goes beyond the transactional relationships of Islamic banking and its products. ...
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The aim of the present study was first to consider the impact of COVID-19 on Kuwait’s economy. Second, it attempted to examine the role of Islamic banking and finance in achieving socioeconomic justice and attaining best practices by securing social goods. Hence, the research assessed how Islamic banking and finance can help in reconstructing the economy based on Maqasid Al-Shari’ah (higher ethical objectives) to redevelop social, economic, and environmental welfare, especially in the COVID-19 era. A theoretical approach was adopted, namely, the grounded theory method (GTM), to explore COVID-19 related solutions for achieving sustainable economic development. The findings show that Islamic banking and finance can be employed to mitigate the impact of coronavirus and can be used as an alternative financial system to support both affected people and entrepreneurs. The paper expands on previous literature discussing the role of Islamic finance in management strategies through Islamic ethical objectives, with a particular focus on Kuwait’s post-COVID-19 era. This research can help policymakers to develop mechanisms and supporting approaches for Kuwait’s economy.
... Gangguan kepada akal akan menyebabkan gangguan yang lebih besar kepada masyarakat (JAKIM, 2015). Chapra (2008) memberi penekanan kepada iman kerana iman yang menyediakan hala tuju kepada akal, kerana akal yang tidak dipandu akan membawa kepada penipuan. Oleh itu akal wajib dipelihara oleh manusia dengan nilai murni dan perkara-perkara yang bermanfaat. ...
... Pemeliharaan Keturunan: Konsep hifz Al-nasl melibatkan perlindungan dan pemeliharaan keturunan. Ianya penting untuk memastikan keberentukan masyarakat Islam yang sihat, produktif dan berkesan (Chapra, 2008). Pengharaman melakukan zina dan meraikan perkahwinan merupakan salah satu aspek pemeliharaan keterunan. ...
... Pengharaman rasuah, amalan riba, penipuan, monopoli yang tidak seimbang dan segala bentuk penyelewengan merupakan satu aspek pemeliharaan harta. Chapra (2008) menekankan pentingnya menggalakkan pengagihan pendapatan dengan adil dan kekayaan dalam pembangunan dan pengembangan kekayaan. Ini supaya semua masyarakat dapat menikmati hak mereka dan memakan hak dengan cara batil dapat dielakkan. ...
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Gejala rasuah dalam kalangan penjawat awam mahupun swasta sering menjadi isu polemik yang sangat hangat diperkatakan sehingga merosakkan imej negara di mata dunia. Menurut laporan Suruhanjaya Pencegahan Rasuah Malaysia (SPRM), statistik jumlah tangkapan dari tahun 2014 hingga 2021 berlaku kenaikan mendadak sehingga 205 peratus iaitu bersamaan dengan 552 kes kepada 1125 kes. Bahkan Malaysia telah mencatatkan kehilangan hampir RM 1.8 Trillion disebabkan kegiatan amalan rasuah. Pelbagai langkah dan inisiatif bagi mencegah kegiatan rasuah di Malaysia telah diambil oleh pihak kerajaan namun laporan terhadap kegiatan rasuah terus menerus menaik tanpa menunjukkan sebarang tanda penurunan. Usaha ini perlu dikaji semula berdasarkan kerangka syariah supaya penambahbaikan dapat dilakukan seterusnya mampu mengurangkan permasalahan berkaitan rasuah. Justeru, artikel ini bertujuan untuk membincangkan konsep rasuah menurut Islam dan mengkaji pendekatan menanganinya berdasarkan maqasid syariah. Kajian kualitatif ini menggunakaan kaedah dokumentasi dan pemerhatian dalam proses pengumpulan data. Hasil kajian mendapati bahawa rasuah merupakan satu perbuatan yang dilarang dalam agama Islam. Pendekatan menangani rasuah berdasarkan maqasid syariah dalam konteks hifz Al-nafs boleh dilaksanakan dengan menerapkan konsep thahirun nafs, memastikan hasil pekerjaan daripada sumber halal dan mengamalkan etika kerja yang baik. Manakala dalam konteks hifz Al-mal ia boleh dilaksanakan dengan menerapkan sifat adil dalam pengurusan, mengemaskini urus tadbir dengan amanah dan merangka hukuman ta’azir bagi pesalah rasuah. Diharapkan kajian ini dapat dijadikan rujukan dan panduan kepada pihak yang berwajib bagi membendung jenayah rasuah dalam konteks Islam untuk menjamin masyarakat dan individu berjawatan bebas daripada gejala rasuah. Kajian lanjutan berkaitan dengan faktor orang muslim melakukan jenayah rasuah juga boleh dilaksanakan pada masa akan datang agar pendekatan yang dicadangkan boleh diterapkan dalam menangani rasuah di Malaysia.
... This is the reason why…the Prophet said: 'Of all things allowed by God, the one despised by Him most is divorce.' 55 Therefore, it is necessary to avoid dispute and divorce as much as possible in the interest of children's well-being. 56 We therefore do not agree with Abdul Rauf's view that divorce rate should be discarded as an indicator of family well-being, 57 although we 'normalise' it against the corresponding marriage rate to make it a meaningful indicator. ...
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This is a revised version of an assessment of the Islamic Well-Being Index (IWI) of Muslim majority countries, first published by this author in 2013 (IWI 1.0). It uses an improved, updated methodology and reflects the essential maqasid al-shari‘ah (Higher Objectives of Islamic Law) developed by Imam Abu Hamid al-Ghazali. The IWI provides practical insights for countries that aspire to move to a higher state. Leading countries in the maqasid fields could serve as role models for lagging counties. More specifically, IWI indicators provide a way to spot problems, set targets, track trends, and identify best practice policies. This 2021 assessment adds four more countries to the 27 ranked previously. The method incorporates insights from leading Islamic scholars who have developed a ‘maqasid index of governance’ for Muslim countries. The top three countries listed in the Index are (first to third): Indonesia, Tunisia and Malaysia. Indonesia, the world’s largest Muslim country with a successful democracy, experienced an Islamic resurgence, which is reflected in its citizens’ moderate values and practices. Leading countries within the maqasid fields are (first, second): Religion – Guinea-Bissau, Nigeria; Life – UAE, Brunei; Intellect - Albania, Kyrgyzstan; Family – Morocco, Tunisia; and Wealth – Malaysia, UAE. Countries showing greatest improvement in IWI rankings are Lebanon and Turkey. Those that significantly worsened are Afghanistan, Nigeria, Chad and Iraq. To expand the applicability of this index, governments in Muslim majority countries need to facilitate assessment. In particular, religiosity surveys should be expanded and periodic surveys are required to fill other data gaps. The IWI Index and its highlights should be prepared and published annually.
... According to Chapra (2008), a rise in income and wealth through development is necessary for the fulfilment of basic needs as well as the realization of equitable distribution of income and wealth. This is in line with Shari ah but not sufficient to realize the comprehensive vision of human well-being. ...
... The satisfaction of all these needs is a basic human right and has been addressed in Islamic literature under the generic term 'Maqasid al-Shari ah'. Therefore, through Maqasid al-Shari ah approach, Islam promotes social cohesiveness and growth in economy through ethical and rational expansion and safeguarding the nature (Umer Chapra, 2008). By espousing Shari ah guidelines encompassed under the auspices of Maqasid al-Shari ah we will be able to realize benefits to greater nature and all species and removing any harm which is known as public interest or maslahah. ...
... The Shariah objectives provide a vital premise that seeks to protect, life, faith, intellect, family, and wealth. According to Chapra (2008), the Shariah objectives framework is aligned with SDGs, and thus, Islamic finance can contribute to achieving the SDGs. In contributing toward SDGs, there is a growing realization that Islamic financial institutions should be concerned with their financing and investment decisions and their outcomes on the planet. ...
Chapter
Crises and disasters, man-made or natural, prove to be an opportunity from which mankind can benefit and take lesson to learn to be conscious of Allah’s blessings and care for its rights. One of the lessons learnt is that capitalism is naturally driven by profit maximization actions that have adverse effects to our surroundings. This economic hegemony has led to environmental problems, which pose threats to humankind livelihood. In this light, the circular economy trend emerges to alleviate this adversity, preserve the rights of others, and protect the environment. Undoubtedly, the principles of circular economy coincide with Islamic economic theory. This chapter endeavors to study Circular economy in relation to Islamic economy and its principles, in two parts. The first part will be on “Defining Circular economy, concept, goals and benefits”, and the second part will be discussing “Circular economy in Quran, Sunnah and Maqasid al-Shariah”.
... 3.2 Socio-economic developmental role of waqf in organization of the Islamic cooperation countries Socio-economic development comprises two aspects. The social aspect invests in social justice to provide access to welfare programs, such as education, health and religion (Chapra, 2008). According to Sen (1999) a Nobel laureate in economicssocial development includes the economy and broad community development. ...
Article
Purpose This paper aims to analyze the role of waqf in the socio-economic development of the organization of the Islamic Cooperation (OIC) countries. Various projects currently use waqf as an instrument for socio-economic development, as reported in the scholarly literature. This study will investigate this literature to explore trends in waqf studies and the role of this Islamic form of endowment in the socio-economic development of OIC countries. Design/methodology/approach This systematic literature review focuses on peer-reviewed journals and data obtained from the Mendeley database using specific criteria to analyze the socio-economic developmental role of waqf in OIC countries from 2011‐2020. Findings The socio-economic developmental role of waqf in OIC countries has been widely studied. In total, 68 academic articles were found that are relevant to themes of poverty alleviation, social welfare, entrepreneurship, education, health services and religious facilities. They reveal that the role of waqf in social welfare was the most discussed topic in the research. In addition, the majority of studies used an interview method to study waqf institutions in nine OIC countries. Furthermore, the number of publications on the theme has increased significantly every year, although the largest proportion occurred in unindexed journals. Practical implications This study provides an overview of research trends in the socio-economic developmental role of waqf . Its results can provide practical input for waqf institutions as they encourage its practice in OIC countries, and for policymakers in formulating their management strategies to promote the role of waqf in the social and economic aspects of society. Originality/value This paper reviews the current development of the socio-economic role of waqf in OIC countries. It will help researchers improve their understanding of this role. It will also provide waqf managers in OIC countries with adequate information on waqf projects which they can implement to achieve socio-economic development in their countries.