Prof-Abu Umar Faruq Ahmad

• Doctor of Philosophy
• Lead Professor at Guidance College

Islamic economics is an innovative phenomenon in the modern world. In many developed and developing countries, Islamic financial systems successfully work in parallel with their conventional peers. It is unfortunate that at the time when the world is suffering from a pandemic like COVID-19, the world community has witnessed a war between Russia and...

The legal maxims of the ba'i contract are inductive Islamic legal reasoning, so their implementation has a static and dynamic character. Apart from al-Arabi, attention to two characters in one theme of fiqh (Islamic Jurisprudence) rules is rarely discussed by Islamic jurists. It is one of the reasons for the failure to dynamize the theory and pract...

Purpose Green Sukuk (GS) is a recent innovation that has the potential to serve humankind in sustainable development. However, its potential can only be achieved if the proceeds of GS are used for the priority areas needed. Therefore, the purpose of this study is to find out, using selected GS issued to determine whether the proceeds of GS are actu...

Purpose The study explores the existing Shariah audit practice of Islamic banks (IBs) in Bangladesh aiming at providing suggestions for improvements on the detected shortfalls in the relevant areas. Design/methodology/approach This research applied a qualitative method, and data were collected through conducting semi-structured interviews in Bangl...

The high-tech industrialization that we are currently witnessing is resulting in potentially long-term harmful environmental and social impacts. Sustainability is an important phenomenon in economic development because it encompasses the management of resources, energy, economics, business development, environmental impacts, construction practices,...

The aim of the Fourth Industrial Revolution is to reshape people’s daily lives, social structures, political phenomena, the business world, and industrial production with the belief of revolutionary changes in digital innovation and transformation. In addition, the ongoing COVID-19 pandemic has also devastated the developed and emerging economies....

Purpose – The purpose of this study is to examine the economic impact of COVID-19 and analyse how the corporate social responsibility (CSR) initiatives of Islami banks (IBs) can contribute to reducing the adverse economic impact in the context of Bangladesh. Design/Methodology/approach: Currently eight full-fledged IBs are functioning in Bangladesh...

The idea of developing Social Impact Sukūk (SIS) was to create an alternative investment opportunity to those are interested in investing in the community developments. Islamic investment funds are available in the global financial market for investors wish to generate income in line with the notion of Maslaha to examine whether or not it better se...

During modern times there are two major competing economic systems: Capitalism and Socialism. Although by the middle of the twentieth century Socialism had included almost one third of the world’s population and then it declined, in terms of practical impact Capitalism has outshined Socialism on numerous dimensions, and in purely economic terms has...

Purpose – Even though microfinance has been widely employed as a poverty alleviation tool, no significant results have been recorded in terms of changing the lives of the chronic poor and low-income groups most especially in the less developed and developing countries. Therefore, the objective of this research is to find out ways in which Islamic m...

Even though microfinance has been widely employed as a poverty alleviation tool, no significant results have been recorded in terms of changing the lives of the chronic poor and low-income groups most especially in the less developed and developing countries. Therefore, the objective of this chapter is to find out ways in which Islamic microfinance...

The idea of developing Social Impact Sukūk (SIS) was to create an alternative investment opportunity to those are interested in investing in the community developments. Islamic investment funds are available in the global financial market for investors wish to generate income in line with the notion of Maslaha to examine whether or not it better se...

Countries within the Asian region are continuously struggling to improve the living standards of their citizens. Some of them are still facing a plethora of challenges due to the ever-increasing levels of both relative and absolute poverty. This is especially among the poorest of the poor who have no access to the mainstream financial services. The...

Non-bank financial service actors in the era of the COVID-19 pandemic made a breakthrough by creating fintech (Financial technology) through the development of Peer Peer Lending (P2P) or online loans. The purpose of this study is to analyze the implementation of 5C principles in the practice of peer-to-peer lending Fintech based on a review of Isla...

Purpose This study aims to investigate and propose the potential practice of hibah al-ʿumra as a Shari‘ah-compliant policy that would encompass the disbursement of death benefits and facilitate their smooth distribution among the projected beneficiaries of the family Takāful. Design/methodology/approach This study uses a qualitative approach. It c...

Purpose Sharīʿah Secretariat plays a significant role in assisting Sharīʿah Supervisory Boards (SSBs) in their role in achieving Sharīʿah compliance in Islamic banks (IBs). The key objective of the study is to develop a demographic framework of the Sharīʿah Secretariat for the IBs in Bangladesh. Design/methodology/approach The study applied qualit...

Takaful is the Islamic version of insurance, and the size of global takaful industry is about USD$51 billion in 2019. Limited studies have been conducted on the development of takaful sector in Bangladesh and Indonesia using a comparative approach. As such, this review aims at investigating the challenges facing the development of takaful industry...

Monetary policy is the policy taken by the relevant authority of a country to control the money supply and demand by manipulating the interest rates to ensure among others price stability and general trust in the currency. The objectives of this chapter are two-fold: a) to examine the extent to which the interest rates are effective as a monetary p...

Purpose This study explores the practical application of the Shariah screening process and how it could be enhanced by converging the same with the ethical screening of stocks. Design/methodology/approach This study adopts a qualitative research methodology by combining the qualitative descriptive approach and content analysis. Findings The findi...

This research aims to evaluate the concept of money laundering in reference to the objective of the protection of wealth (Hifz al-māl). It also examines the process of money laundering on whether they are halal in the Sharīʿah. This study adopts a qualitative approach. It reviews and analyses authentic data in relevant literature and documents on t...

Although the blockchain is still at its infancy stage, experts have already regarded its impact and effect as the beginning of a new technological revolution, particularly relevant to the financial services sector. There are various institutions offered by Shari`ah, like zakah, waqf, sadaqah, and qard hasan, which exist and are already established,...

Fundamentals of Islamic Banking and Finance is a comprehensive text, with a thorough, well–rounded approach focused exclusively on Islamic finance. Readers are introduced to the structure and functions of Islamic financial institutions, with in–depth background information and clear descriptions of all major products of the Islamic finance industry...

External Sharī'ah Audit (ESA) is a control mechanism meant for formulating an objective view by an independent Sharī'ah audit team about the obligation of Islamic banks' (IBs) management, personnel and other divisions towards Sharī'ah compliance. This study principally aims to examine the relevancy of ESA and review committee in enhancing the level...

Orthodox Muslim scholars are in general agreement that women are not entitled to hold the leadership or the topmost public office of a nation. Many scholars hold even a more restrictive view on the issue as to whether it is due to Qur’anic texts and Prophetic traditions (ahadith) that women are barred from key positions, or it is largely due to soc...

Ijarah mawsufah fi al-dhimmah (hereinafter referred to as IMAD), also known as forward ijarah¸ is an Islamic financial product that involves the sale of an identified asset currently being produced or constructed for a future delivery such as a property, office, factory, and so forth. In the classical fiqh literature, it has been discussed under th...

This study seeks to highlight the implications of governance and reporting practices in ensuring accountability and building donors trust in Waqf Institutions (WIs). Data gathered through the survey are analyzed using PLS-SEM technique. The conceptual model was developed based on the critical review of the past literature. Among the three proxies o...

This chapter briefly discusses Sharī’ah and fiqh as the theoretical foundation for Islamic commercial jurisprudence, which includes commerce, finance, and the economy. It begins with the meaning and definition of Sharī’ah and fiqh, followed by a discussion on the sources of Sharī’ah, with maqāṣid al-sharī’ah being one of the cornerstones of contemp...

Purpose This paper aims to compare and contrast the concept of conventional futures contract from the Islamic law of contract perspectives. The underlying theory and practice of Islamic finance is based on the principles of Islamic law of contract. Although the necessity of derivative instruments such as the case with futures contract is essential...

Small and Medium Enterprises (SMEs) play a vital role in the economic growth. However, the industry has been facing challenges due to lack of access to finance among entrepreneurs. This chapter explores alternative financing platforms for SMEs and proposes specific solutions to the credit risk of SMEs. Authors used a structured literature review ap...

Islamic Insurance (takaful) has seen rapid growth in recent years. Past studies have provided empirical evidence that Islamic finance industry can play a positive role in economic development. However, limited empirical evidences exist on the influence of takaful industry developments toward ensuring economic development. The relevant data were col...

This chapter briefly discusses Sharī’ah and fiqh as the theoretical foundation for Islamic commercial jurisprudence, which includes commerce, finance, and the economy. It begins with the meaning and definition of Sharī’ah and fiqh, followed by a discussion on the sources of Sharī’ah, with maqāṣid al-sharī’ah being one of the cornerstones of contemp...

Bangladesh has a population of over 160 million, which made it the 8th most populous nation in the world. Besides, it has the fourth largest Muslim population and the third largest Muslim majority country in the world after Indonesia and Pakistan. The huge amount of national waqf assets of Bangladesh, consisting a significant amount of underutilize...

The institution of Waqf always played a pivotal role of sustainable economic development in a Muslim society throughout the history of Islam. However, recently, even with the introduction of the modern Islamic finance a few decades ago, the institution has been struggling to rejuvenate its past glory. The key issues are lack of availability of data...

Countries within the Asian region are continuously struggling to improve the living standards of their citizens. Some of them are still facing a plethora of challenges due to the ever-increasing levels of both relative and absolute poverty. This is especially among the poorest of the poor who have no access to the mainstream financial services. The...

The purpose of this study is twofold: (1) to identify the key challenges of improving access to Islamic financial services (IFS) in Australia for its large Muslim minority and (2) to assess the potential prospects for the emergence of Islamic finance (IF) in the Australian market, parallel with its conventional practice. The method employed is a mi...

Countries within the Asian region are continuously struggling to improve the living standards of their citizens. Some of them are still facing a plethora of challenges due to the ever-increasing levels of both relative and absolute poverty. This is especially among the poorest of the poor who have no access to the mainstream financial services. The...

Sukuk restructuring primarily aims at offering a debtor more latitude, in form and time, to settle his obligations. To meet Shari’ah requirements of transferring assets to Sukuk holders in asset-based Sukuk, the originator usually transfers the beneficial ownership to the issuer special purpose vehicles (SPV). However, in asset-backed Sukuk, the or...

Purpose Sukuk and conventional bonds operate in the same market, but riba and other prohibitions in Sharīʿah restrict Sukuk structuring and operation, and thus differentiate it from interest-based bonds. Investors are required to share risks with entrepreneurs under these Islamic instruments, which often make it less competitive than its conventio...

Sukuk restructuring primarily aims at offering a debtor more latitude, in form and time, to settle his obligations. To meet Shari’ah requirements of transferring assets to Sukuk holders in asset-based Sukuk, the originator usually transfers the beneficial ownership to the issuer special purpose vehicles (SPV). However, in asset-backed Sukuk, the or...

The 2007-2008 global financial crises had brought severe financial instability in financial institutions, and since then it became more complex and irreparable. Therefore, it has become inevitable to examine various tools that can monitor resilience of these financial institutions, especially the banking system that plays significant role in econom...

The 2007-2008 global financial crises had brought severe financial instability in financial institutions, and since then it became more complex and irreparable. Therefore, it has become inevitable to examine various tools that can monitor resilience of these financial institutions, especially the banking system that plays significant role in econom...

Takāful has emerged as a Sharīʿah-compliant alternative to conventional insurance, which is embedded in realising its underlying maqasid (goals or objectives) of Sharīʿah. Contrary to previous studies that attempted to provide evidence that takāful products are compliant with the Sharīʿah in practice of takāful operators (TOs), this paper seeks to...

The awqaf funds in Bangladesh own a huge amount of underutilized national assets, which have the potential to contribute immensely to the overall socioeconomic development of the country. This chapter seeks to share and explore the current status of the awqaf sector in Bangladesh from legal and regulatory perspectives and underlines the areas that...

A vigorous and vibrant equity market being an integral part of a resilient and sustainable Islamic financial system, plays a vital role in the overall economic developments of a country. However, the contribution of Muslim investors to the equity market requires the availability of Shari`ah compliant stocks for them to invest, which must pass a cer...

The growing interest in waqf accountability practices has influenced this study to construct a model of waqf accountability with a specific focus on Islamic accountability theory and then expand the model towards establishing the stimulus of waqf accountability disclosure. This paper is conceptual in nature and depends on past literature of both co...

Purpose Sukuk are popular means for governments to raise money through sovereign issues, and for corporations to obtain finance through corporate sukuk offerings. The purpose of this study is to critically examine the issues revolving around various aspects of sukuk such as regulation, performance and future challenges from different Asian market j...

Fundamentals of Islamic Banking and Finance is a comprehensive text, with a thorough, well-rounded approach focused exclusively on Islamic finance. Readers are introduced to the structure and functions of Islamic financial institutions, with in-depth background information and clear descriptions of all major products of the Islamic finance industry...

This article examines the occurrence and legal implications of ‘fatwā shopping’ in the Islamic finance industry and the need to put the proper legal mechanisms in place to regulate the phenomenon. It provides a case study of the existing legal restrictions in some jurisdictions with a centralised Sharīʿah Supervisory Board at the national level suc...

Islamic microfinance provides an alternative model for a significant number of underprivileged people who are not served by conventional microfinance. In order to give access to sustainable services to a greater extent, the Islamic microfinance is in paramount need of the adoption of innovative business models and sound practices into the industry....

Purpose – The paper aims to examine significant developments in the institutional framework for dispute resolution in the Islamic finance industry in Malaysia. Malaysia, as part of its efforts to consolidate its enviable Islamic finance industry, has strengthened its institutional framework for dispute resolution. Design/methodology/approach – Dat...

Zakah (الزكاة) which is the third of the five basic pillars of Islam is considered as an integral part of an Islamic social welfare system since it ensures the rights of poor and needy in the wealth of the rich and as such acts as a tool for distribution of wealth in eradicating poverty in society. This study discusses the potentials of zakah in di...

Islamic banks, similar to their conventional counterparts face plethora of risks, which ultimately affect their operations and hence the performance. They are also required to take additional measures for scaling liquidity management due to their unique characteristics and requirements of the strict compliance of Shari`ah principles. Banks without...

Islamic microfinance provides an alternative model for a significant number of underprivileged people who are not served by conventional microfinance at the moment. In order to give access to sustainable services to a greater extent, the Islamic microfinance is in paramount need of the adoption of innovative business models and sound practices into...

This study undertakes an analysis of the risks in retakāful whether they are shared by the participating takāful operators (TOs) and retakāful fund, or are transferred to retakāful operators (RTOs). In the latter case RTOs become liable for deficits where the losses, if any, would directly affect all retained portfolios. The study finds, notwithsta...

Islāmic banking is growing at double digit rate annually. Bangladesh is the third largest Islāmic country in the world in terms of Muslim population. The Islāmic finance industry is growing in Bangladesh as well as its challenges and critiques. It is interesting research question to explore the demand for Islāmic banking in the presence of a strong...

The companions of the Prophet Muhammad (pbuh) who devoted their lives in understanding and propagation of Islām possess the most highly regarded and noblest status amongst all the Muslims, as envisaged in the Qur'ān and the Sunnah. This paper deals with the issue of fiqhī status of qawl al-╖a╒┐b┘ (saying, opinion, verdict or fatwá of the companions...

Islamic banks, similar to their conventional counter parts face plethora of risks, which ultimately affect their operations and hence the performance. They are also required to take additional measures for scaling liquidity management due to their unique characteristics and requirements of the strict compliance of Shari‘ah principles. Banks without...