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Research trends in the field of Islamic social finance: a bibliometric analysis from 1914 to 2022
Abstract
Purpose
This study aims to present a bibliometric analysis of Islamic social finance (ISF) by addressing gaps in the existing research, exploring the current trends of publications and determining possible future research directions in this field.
Design/methodology/approach
Relevant bibliometric data of published research during 1914–2022 was extracted from the Scopus database and 1,355 studies were considered for the analysis. Biblioshiny app from RStudio, VOSviewer and Microsoft Excel were the tools used for analysis.
Findings
The identified current research streams are management and distribution of ISF funds especially zakat through fintech; governance and accountability of ISF institutions; Islamic microfinance for poverty alleviation and financial inclusion; ISF for promoting sustainable development and achieving United Nations sustainable development goals; waqf endowments and cash waqf; and Islamic charities. The identified themes for future research directions are Islamic fintech, integration of ISF, sustainable development, economic recovery, social entrepreneurship, sustainable ISF ecosystem and supporting refugees.
Practical implications
It provides extensive and up-to-date literature on the current trends in ISF and future research themes which can be useful for researchers, professionals and policymakers in the field.
Social implications
The findings of this research contribute to the solutions to socio-economic challenges and support sustainable development through ISF.
Originality/value
To the best of the authors’ knowledge, this research is one of the first attempt to provide a pervasive bibliometric review on ISF by including various aspects of ISF and extending the study period to more than 100 years.
... Several bibliometric analysis studies of the academic papers on zakat, for example, Alshater et al. (2021), Khalifah et al. (2024), Wahyudi et al. (2022), Apriliyah and Arifianto (2022), and Handoko et al. (2022), have reported a growing trend of zakat research with various important topics of concern. Among others, accountability emerged as one of the central themes of zakat, which indicates the significance of the accountability issue in the context of zakat management (Akhter et al., 2023;Alshater et al., 2021;Wahyudi et al., 2022). ...
... Analysis findings indicate that accountability publications have not shown a significant increasing trend. The peak number of publications over the last 10 years was observed in 2020, with only six articles-a surprising observation given the growing number of zakat publications, which often emphasise the crucial role of accountability in ensuring good governance and maintaining societal trust (Akhter et al., 2023;Alshater et al., 2021;Sawmar and Mohammed, 2021;Wahab and Rahman, 2011;Wahyudi et al., 2022). In contrast, the number of articles on accountability within zakat institutions remains limited. ...
This study conducted a bibliometric analysis and systematic literature review (SLR) of scholarly literature on accountability in Zakat institutions, identifying future research directions. Data were retrieved from the Scopus and Web of Science (WoS) databases and limited to articles. Analysis was performed using VOSviewer and content analysis. The number of articles on accountability issues in zakat institutions compared to zakat literature is limited, with Indonesia and Malaysia being the most productive countries and England the most influential. Research on accountability in zakat institutions is categorised into four clusters, with varied practices observed. Accountability is primarily understood through perspectives of accounting, reporting, and disclosure, as well as dual accountability to God and humans and quantitative survey approaches. This analysis reveals the need for further research on accountability in the context of zakat institutions.
... These mechanisms are distinct in their approach, focusing on social justice, the equitable distribution of wealth, and the provision of financial support to the needy. As the global interest in sustainable development and ethical finance continues to rise, Islamic social finance presents a unique model that aligns with these principles, making it a critical area for scholarly exploration (Abubakar & Aysan, 2021;Akhter et al., 2023). ...
... Additionally, the integration of Islamic social finance within the broader framework of sustainable development goals (SDGs) has sparked new debate and investigations (Lanzara, 2021). Despite the growing body of literature, there remains a need for a comprehensive analysis of the intellectual structure and research trends in this field, which can be achieved through a bibliometric approach (Akhter et al., 2023). ...
Purpose – This study provides a comprehensive overview of the current state of Islamic social finance literature using VOSviewer analysis to identify key themes, trends, and emerging areas in this field.Methodology – A bibliometric analysis was conducted using VOSviewer to map and visualize key concepts and emerging topics in the Islamic social finance literature. The analysis focuses on the term "Islamic social finance’."Findings – The analysis confirms the foundational role of traditional concepts, such as "Islamic social finance, " in the literature and identifies emerging themes, such as the impact of Covid-19 and economic crises. These findings highlight the evolution of literature and its adaptation to contemporary global challenges.Implications – This study underscores the need to explore how established concepts in Islamic social finance can be applied to address modern socioeconomic issues. The identification of emerging themes suggests potential areas for future research, particularly regarding how Islamic social finance can contribute to solving global challenges. For practitioners, the insights gained can serve as a guide for the development of Islamic financial products that are context-sensitive and align with both traditional principles and contemporary needs.Originality – This study makes a unique contribution by using bibliometric analysis to map the evolving landscape of Islamic social finance research, highlighting both established and emerging areas of interest. The findings of this study provide valuable insights for future research and practical application in this field.
... There's a high positive relationship between the acceptance of Islamic Fintech services and principles of ISR that such services are believed to observe. There is increasing demand for financial products and services among the public seeking values such as aiding social causes, engaging in charitable endeavors, and practicing fairness in financial transactions [47]. Since Islamic Finance enhances ISR, it positions itself as a viable alternative to existing Fintech by providing stakeholders with products that reflect these principles in the form of zakah, waqf and other socially responsible investments [48]. ...
... This empirical analysis has produced results showing the positive contribution of the ISR toward the integration of Islamic Fintech services. It was discovered that these insights are consistent with those of researchers seeking to understand the importance of ISR as a way to position Islamic Fintech providers differently from other financial services providers that serve the Muslim population [46,47]. In addition, these findings echo the earlier studies as stated earlier that ISR does not only increase the confidence of the consumers, but it also targets the increased uptake of services as consumers make sure that the business is conducted in accordance to Shariah compliant ethics [49], Rabbani 2021). ...
Purpose
This research examines the relationship between Islamic Fintech and corporate social responsibility (CSR) in the pursuit of extending financial use to all layers of society. It aims at understanding key influencers such as Sharia compliance, perceived financial benefits, ease of technology uses and Islamic social responsibility (ISR) in the adoption of Islamic Fintech services. The study further investigates how culture may act as a moderator to the relationship between ISR and the adoption of Islamic Fintech services.
Research methodology
Data were collected from 263 respondents in Jordan using a structured questionnaire. The data were analyzed using Smart PLS software to test the proposed hypotheses and evaluate the research model’s reliability and validity.
Results and findings
The results reveal that Sharia compliance, perceived financial benefits, technological ease of use, and ISR significantly influence the adoption of Islamic Fintech services. The study also finds that cultural resonance plays a crucial moderating role, enhancing the impact of ISR on the adoption of these services.
Originality and empirical implications
This paper adds value to the existing literature by attempting a comprehensive analysis assessment of the reasons behind the adoption of Islamic Fintech. It highlights the necessity of connecting the modern-day financial systems and the ethical tenets practiced in societies to facilitate the nonconventional market penetration strategies. Such findings also provide useful articulations for Islamic Fintech providers who intend to respond to the changing dynamics within the rolling out of technology in a religious sustainable financing.
... In countries like Turkey and Saudi Arabia, Islamic social finance has improved access to education and health services, contributing to community empowerment and poverty alleviation [3]. Additionally, waqf creates networks between micro-entrepreneurs and SMEs, supporting financial systems and contributing to sustainable development goals [4]. ...
This study explores the integration of digital waqf and sharia crowdfunding in Indonesia, focusing on its potential to enhance Islamic social finance and contribute to sustainable development. Through qualitative analysis of interviews with five key informants, the research identifies the opportunities and challenges of combining these two financial instruments. The findings highlight the potential to expand access to funding, increase transparency, and align with Islamic values of charity and social justice. However, challenges such as regulatory uncertainty, technological limitations, and trust concerns need to be addressed for successful implementation. The study concludes that the integration of digital waqf and sharia crowdfunding can significantly contribute to social welfare and sustainable development in Indonesia, provided that regulatory frameworks are strengthened, technological infrastructure is improved, and public awareness is raised.
... Starting from simple initiatives in the 1970s, this sector has now grown into a significant industry, with total global assets reaching $2.88 trillion in 2022 (Leena Haniffah et al., 2023). This impressive growth is not limited to countries with Muslimmajority populations but has also spread to leading international financial centers such as London, New York, and Singapore (Akhter et al., 2023). This expansion phenomenon is an indication of the growing global interest in alternative financial systems that emphasize ethical aspects and are based on moral values. ...
This research examines the dynamic relationship between Islamic economic theory and fiqh al-mu'amalat in the context of modern financial systems. Using a systematic literature review method, this study analyzes the development of both disciplines and their interaction in shaping contemporary Islamic financial practices. The results indicate a significant convergence between Islamic economic principles and the interpretation of fiqh al-mu'amalat, especially in responding to modern financial challenges. However, several areas of tension requiring further harmonization were also identified. This study contributes to a more comprehensive understanding of how Islamic theory and legal practice interact in shaping the global Islamic financial landscape, while highlighting opportunities and challenges in developing innovative yet Shariah-compliant Islamic financial products.
... In Indonesia, the integration of cash waqf into Islamic insurance is gaining traction as an innovative approach to enhance the socio-economic impact of Islamic financial instruments (Akhter et al., 2023;Chamid & Febriati, 2021;Faturohman et al., 2020;Maulina, Dhewanto, & Faturrahman, 2023;Sukarmi & Victoria, 2018). Cash waqf, a form of charitable endowment in Islam, is used to support social causes and fund various economic activities, including Islamic insurance products. ...
Research Originality: Cash waqf insurance is underexplored in Islamic finance, offering a unique lens for study. This research addresses the gap by examining how knowledge, perceived fairness, and perceived usefulness influence attitudes and behavioral intentions toward cash waqf insurance among Generation Z, Millennials, and Generation X.Research Objectives: The study aims to assess the impact of these factors on shaping attitudes and intentions toward cash waqf insurance. Integrating these factors into the Theory of Planned Behavior (TPB) optimizes public understanding and fosters positive engagement on cash waqf.Research Method: 437 data sets were collected from respondents across three generations and analyzed using Partial Least Squares- Structural Equation Modeling (PLS-SEM) and multi-group analysis (MGA). The study evaluates the direct effects of knowledge, perceived fairness, and perceived usefulness on attitudes, behavioral intentions, and generational differences in these relationships.Findings: Knowledge significantly affects attitudes for Gen Z and Millennials, but not Gen X. Perceived fairness strongly influences Gen X and Gen Z, but not Millennials. Perceived usefulness is a key factor across all generations, with the highest impact on Millennials.Implications: The findings highlight the need for targeted educational campaigns for younger generations and fairness-based strategies for older cohorts. Policymakers and institutions can use these insights to enhance engagement with cash waqf insurance products.JEL Classification: G22, Z12, C38How to Cite:Patriana, E., Aisyah, M., & Al Arif, M. N. R. (2025). The Generational Interest Differences in Cash Waqf Insurance. Etikonomi, 24(1), 299 – 314. https://doi.org/10.15408/etk.v24i1.41731.
... Besides, Akhter et al. (2023) highlighted the growing academic interest in the role of takaful and waqf in promoting social welfare. This reflects a broader recognition of the importance of Islamic financial practices in addressing social and economic challenges. ...
This study examines the role of agency managers in driving the success of waqf-takaful death compensation products in Malaysia. The research identifies the challenges agency managers face and the strategies they use to promote the integration of Islamic financial products with waqf, a charitable endowment. A qualitative approach was employed, involving in-depth interviews with eight agency managers from various takaful companies. Thematic analysis was used to identify key themes related to product knowledge, customer education, marketing strategies, and incentives. The findings reveal that agency managers are pivotal in educating potential clients, overcoming skepticism, and bridging the gap between religious values and financial products. However, challenges such as limited market awareness, product misconceptions, and the need for improved promotional efforts remain significant obstacles. The study suggests that enhanced training for agency managers, better marketing strategies, and clearer communication of product benefits could contribute to the wider adoption of waqf-takaful products. This research offers valuable insights into the practical implications for takaful providers and policymakers in Malaysia, emphasizing the importance of agency managers in promoting financial inclusion and social responsibility through waqf-takaful products.
... Digital-only banks offer efficiency and reduce costs, including in Islamic banks. Using digital finance technology in Islamic finance institutions could reduce the cost of transporting customers to the bank office, reducing the time customers spend queuing and making it easier for customers to transact anywhere and anytime (Akhter et al., 2023). Moreover, customer turnover behavior is not determined by something beyond their control (Wei et al., 2021). ...
In light of the fast expansion of digital banking, it is of the utmost importance to
know the causes driving the acceptance of Islamic digital-only banks, particularly in
Indonesia, which has a considerable Muslim population. This study examines the influ-
ence of religiosity and environmental concern on switching behavior towards Islamic
digital-only banks in Indonesia. This study conducts an exploratory examination of
how religiosity and environmental concerns influence switching behavior towards
Islamic digital-only banks. Data from a survey involving 99 respondents in Indonesia
were examined utilizing structural equation modeling with partial least squares (SEM-
PLS). The study’s findings show that environmental concern significantly influences
switching behavior to Islamic digital-only banks, with a path coefficient of 0.259 (p <
0.01). Religiosity also positively a%ects switching behavior, though with a weaker e%ect
(path coefficient 0.175, p < 0.05). Environmental concern emerged as a stronger pre-
dictor of switching intentions compared to religiosity. The model explains 13.6% of the
variance in switching behavior (R& = 0.136). These findings reveal that environmen-
tal considerations and religiosity play a role in shaping switching intentions towards
Islamic digital-only banks, with environmental factors having a more pronounced ef-
fect. To promote adoption, Islamic digital-only banks should emphasize their environ-
mental benefits and sustainability initiatives in addition to Sharia compliance.
... In addition to micro factors such as organization, service, and behavior, which have been extensively studied by several researchers previously (Akhter et al., 2023;Alshater et al., 2021;Anwar & Khalsiah, 2017;Hamdani et al., 2024;Yolanda et al., 2020), macro factors also significantly influence the collection of ZIS. Chapra (1992) provides a profound insight into the impact of macroeconomic variables within the framework of Islamic economics. ...
Macro variables and the Human Development Index are among the influential factors affecting the amount ZIS collection in Indonesia. The impact has been that the realization and potential of ZIS collection are not balanced when compared to the number of Muslim populations in Indonesia. This research aims to examine the impact of macroeconomics and human development index on zakat performance in Indonesia. Zakat performance is measured using the natural log of the total receipt of ZIS obtained from 39 zakat management organizations from 2011 to 2022, totaling 206 observations. The independent variables in this study are proxied by macroeconomics (i.e., inflation and number of employed people) and human development index. The data were analyzed using a panel data estimation technique as known pooled least square. The empirical results of this study found that inflation has a negative and insignificant effect on zakat performance. Number of employed people do not affect zakat performance. Meanwhile, human development index has a positive and significant effect on zakat performance. Synergy and coordination among zakat management organizations and the socialization of zakat literacy become essential factors in realizing the potential of zakat that has not been optimally collected. Additionally, the government can create a policy-making zakat mandatory for muslim communities by implementing good governance.
... In addition, the principles of Islamic finance provide a unique perspective on how Islamic stocks behave differently than conventional stocks. Islamic finance prohibits investments in certain sectors and emphasizes ethical and socially responsible investing, potentially leading to different volatility patterns in Islamic stocks during geopolitical events (Akhter et al., 2023;Aloui et al., 2023;Al-Yahyaee et al., 2020;Hassan et al., 2023). This review examines how these theoretical frameworks have been applied in empirical studies to understand the resilience of different stock types during geopolitical conflicts. ...
Purpose – This study examines the volatility behavior and resilience of conventional and Islamic stock indices in Indonesia during periods of geopolitical uncertainty, focusing on the Israeli–Palestine conflict.Methodology – This study employs the GARCH(1,1) model to examine the volatility dynamics of four major stock indices: the Jakarta Composite Index (JKSE), LQ45, the Indonesia Sharia Stock Index (JKISSI), and the Jakarta Islamic Index (JII). The analysis covers the period from January 1, 2023, to July 31, 2024, enabling an evaluation of market dynamics before, during, and after the conflict on October 7, 2023.Findings – The results show that conventional indices (JKSE and LQ45) exhibit significant volatility persistence, suggesting a higher susceptibility to prolonged instability during geopolitical tensions. Conversely, the Islamic indices (JKISSI and JII) are more responsive to recent market shocks, indicating greater resilience owing to ethical investment principles that avoid high-risk sectors. Furthermore, this study finds that external macroeconomic factors generally do not significantly influence stock market volatility in Indonesia.Implications – This may be due to the predominance of internal factors and local market dynamics over external global shocks, reflecting the Indonesian market’s less integrated nature in the global financial system. These findings offer valuable insights for investors and policymakers in managing risk and optimizing portfolio strategies amid geopolitical stress.Originality – This study contributes to the growing body of literature on the comparative analysis of conventional and Islamic investments in emerging markets.
... Our study supports the findings of this paper, furthermore [77] behavioral dynamics of volatile assets like crypto-currency are considered in this article. Financial literacy plays an impeccable role in deciding investment opportunities [81]. financial literacy plays very important role in the Islamic finance and this research shows importance and need of financial literacy in Oman. ...
The ability to manage money has been identified as a vital talent. In this context, financial literacy has a role to play. There are significant gaps, though, such as the financial connection to human behavior. The purpose of this study is to look at the overall effects of financial literacy (FL) on the behavioural aspects of materialism (ML), compulsive buying (CB), and tendency to debt (TD). It attempts to develop and evaluate a model that is based on these variables and to examine the relationships between these research constructs. The study looked at 233 respondents mainly students studying in Omani universities.
A comprehensive literature review, confirmatory factorial analysis, Structural Equation Modelling (SEM), and comprehensive analysis were used to develop research hypotheses. The primary findings suggested that financial literacy had the most significant impact on compulsive purchasing behaviour in comparison to materialism and the propensity to accumulate debt, among the direct relationships that were suggested. The study's findings have important implications for the formulation of public policy and other interested parties, as financial literacy is advantageous for individuals with poor financial health and facilitates the participation in other psychological behaviours.
... Bibliometrics is the use of statistical methods to analyze books, articles, and other publications. This method combines the use of quantitative and qualitative methods and produces accurate research results (Akhter et al., 2023;Hassan, 2021). Research using bibliometric methods involves the utilization of a systematic search for relevant research and analysis to identify research themes and potential areas for future research. ...
Introduction: Waqf is one of the Islamic social financial instruments, having the distinctive characteristic that waqf assets are donated voluntarily by the wakif and are permanently designated for social benefits. Waqf can be used for productive or commercial activities to generate profits by Sharia law. Cash waqf can play a role in supporting the overall development process, both in human resource development, as well as in economic and social development. This study tries to explore the role of cash waqf for microfinance which can subsequently help the people's economy. Methods: The research method used in this research is quantitative research with bibliometric analysis. Data sources collected secondary data obtained from the Google Scholar database. Data were obtained using Publish or Perish (POP) software and analyzed using VOSviewer software. Results: The results of this research show that, from data searches using the keywords "cash waqf", "microfinance" and "sharia microfinance" by limiting 500 papers in the 2010-2024 time period, the words "microfinance institutions" are the most frequent keywords, indicated by a darker color than other keywords. Conclusion and suggestion: Based on the results and analysis, it can be concluded that, from year to year, research on the topic of cash waqf for microfinance is most often used. However, research on the topic of cash waqf for Sharia microfinance is still limited. Therefore, future research can be carried out regarding cash waqf for sharia microfinance. Cash waqf plays an important role in supporting the overall development process, both in human resource development, as well as in economic and social development. The potential of cash waqf can be used as a means of economic empowerment for lower-middle-class communities with the role played by microfinance institutions.
... Thus, Zakat is a movement that advocates for social services, poverty alleviation, and the provision of clothing, food, shelter, and other basic needs [54]. The Islamic financial system, mainly through Zakat, underscores the importance of social welfare as a critical element in disaster mitigation [55]. Islamic principles promoting equality, justice, and cooperation in wealth distribution can help reduce community vulnerability to disasters [56]. ...
This research aims to investigate how Zakat is disbursed to aid in disaster relief efforts and its role in humanitarian efforts during and after disasters, using the case study of the 2018 Lombok earthquake in Indonesia. Data for this study were collected through interviews with BAZNAS managers using a semi-structured interview method. The steps in analyzing interview data involved data coding, identifying themes or patterns, developing a narrative, and developing a theory. The main findings of the research indicate that the distribution of Zakat for disasters has sustained impacts on the environment, social aspects, and the economy of affected communities. It highlights the crucial role of Zakat in disaster mitigation for humanitarian purposes. The theoretical implications of these findings affirm the critical role of Zakat in disaster mitigation, an aspect that has not been fully explored in previous academic literature. These findings contribute to the development of Islamic social finance by highlighting the role of Zakat in disaster management and exploring its potential application in humanitarian efforts and disaster mitigation. The practical implications for the government include enhancing collaboration between BAZNAS and disaster relief agencies and improving public understanding of Zakat principles for humanitarian purposes and disaster mitigation.
... In addition, it is crucial to consistently engage with the community by organising educational seminars, workshops and awareness campaigns to provide in-depth knowledge about the concept of waqf unit trusts. Testimonials from beneficiaries of waqf unit trusts could be influential in gaining support and establishing credibility, as individuals are typically motivated by the experiences and accomplishments of others (Akhter et al., 2023. Implementing a targeted marketing campaign that highlights the impact of waqf on community development and social welfare will effectively enhance awareness and stimulate enthusiasm in participation (Nadya et al., 2023). ...
Purpose — Waqf unit trust funds are a form of value-based impact investing that combines financial investment with philanthropic goals through waqf (Islamic endowment). This study uses the theory of planned behaviour (TPB) to investigate the factors that influence people’s intentions to participate in waqf unit trust funds in Malaysia. Furthermore, the study investigates the function of religion as a moderator in predicting an individual’s intention to engage in waqf unit trust funds. Design/Methodology/Approach — Four hundred and four completed survey questionnaires have been obtained. Descriptive analysis and Partial Least Square–Structural Equation Modelling (PLS-SEM) are performed to analyse the data. Findings — The findings show that an individual’s intention to engage in waqf unit trust funds is influenced by attitude, subjective norms, perceived behaviour control, and moral norms. Furthermore, religiosity influences the relationship between moral norms and the intention to join in waqf unit trust funds. Research Implications and Limitations — Findings from this study which focuses on Muslims’ involvement in recently established waqf unit trust funds can be used by the waqf unit trust managers in Malaysia to develop appropriate marketing strategies in encouraging Muslim participation in waqf unit trust funds. Participation in waqf unit trusts is not limited to Muslims; hence, future studies can be conducted to cover a wider base of respondents among non-Muslims.
Islamic microfinance offers an alternative, ethical approach to financial inclusion, especially for marginalized populations traditionally excluded from conventional banking systems. In the Caribbean context, where economic disparities persist and Muslim minorities face systemic challenges, the potential for Islamic microfinance remains underexplored. This study investigates the role of Islamic microfinance in empowering marginalized Muslim and non-Muslim communities in Trinidad and Tobago. The research employs a qualitative case study approach, combining semi-structured interviews with microfinance practitioners, community leaders, and beneficiaries across three local institutions offering Shariah-compliant financial services. Findings reveal that Islamic microfinance models—particularly those based on qard al-hasan (benevolent loans) and murabaha (cost-plus financing)—are perceived as more culturally inclusive, trust-based, and ethically appealing than their conventional counterparts. However, institutional limitations, lack of regulatory clarity, and insufficient awareness among beneficiaries restrict broader scalability. The study concludes that Islamic microfinance, when locally adapted and supported by policy and education, holds significant promise for advancing socio-economic empowerment in Caribbean plural societies. This case contributes to the growing discourse on Islamic social finance in non-Muslim-majority regions and highlights its relevance in fostering inclusive development models.
This study provides a bibliometric investigation of the relationship
between Islamic finance and the Sustainable Development Goals
(SDGs), analyzing 457 research articles indexed in Web of Science and Scopus. Using the Bibliometrix package in R and the Biblioshiny interface, the study offers enhanced data visualization and interaction to map the intellectual structure of this field. We highlight a strong alignment between Islamic finance principles (Maqasid alShariah) and the SDGs, particularly emphasizing social finance instruments like Zakat and Waqf. In addition, we outline a focus on some SDGs, while others remain underexplored. This study identifies key themes and gaps in the literature and proposes a future research agenda for enhancing Islamic finance’s contribution to Sustainable Development Goals.
This study aims to map the gaps in understanding the direction of development in Islamic finance, trending topics, and areas that require further research. This study is a literature review through bibliometric analysis taken from scientific publication data related to Islamic finance published in the Scopus database from 1990-2024. The analysis includes developing the number of publications by country, institution, author, and the relationship between journals, authors, and research topics. Visualization of bibliometric networks with VOSviewer and Biblioshiny to identify key topic areas. The results show that Malaysia has the most research, with 3558 articles. M. Kabir Hassan is the most influential author. The International Islamic University Malaysia (IIUM) is the affiliate with the most publications, and some keywords have not been widely researched, such as crypto, bitcoin, and others. This study can be used as new academic research based on topics such as blockchain technology, crypto, and bitcoin, subject norms, planned behavior, Islamic microfinance, and Islamic stock. This research can make it easier for academics to understand research trends in Islamic finance so that they can provide innovations in further research.
Bevezetés: A jelen kutatás a szuicid búcsúlevelek (a továbbiakban: búcsúlevél) strukturális felépítését kívánja elemezni. Eredményeink alapján a búcsúlevelek hét fő, egymást követő alkotóelemből állnak. Ezeket az elemeket funkcióknak neveztük el. A funkciók variációs sorrendje változhat, egymásutániságuk azonban állandóságot mutat. A funkciók segítségével minden búcsúlevél felírható egy egyszerű képlettel. Módszer: Az elemzéshez a „grounded theory” kvalitatív elemzési módszerét, kódolástechnikáját használtuk 160, a magyar sajtóban megjelent teljes búcsúlevélen. Búcsúlevél-katalógusunkban az öngyilkos(ok) kora, neme, az öngyilkosság éve, módszere, helye, valamint a búcsúlevél elemzéséhez általunk kialakított módszer alapján felírt képletek találhatók. Eredmények: Módszerünkkel minden búcsúlevelet sikerült felírni és elemezni. A búcsúlevelek funkciói különbséget mutatnak a nem tekintetében: a férfiak legtöbbet használt funkciói eltérnek a legtöbbet használt női funkcióktól. Következtetés: Minden búcsúlevél felírható egy egyszerű képlettel. Eredményeink alapján a fatális és a nem fatális kimenetelű öngyilkosságok búcsúleveleinek struktúrájában egy potenciálisan jelentős különbséget fedeztünk fel. A nem fatális kimenetelű öngyilkossághoz tartozó búcsúlevelek struktúrája nem feltétlenül tartja a funkciók egymásutániságának szabályát: véleményünk szerint kimutatható strukturális különbség van a paraszuicid és a befejezett öngyilkosságok búcsúlevelei között. Orv Hetil. 2024; 165(45): 1763–1771.
This study delves into the pivotal role of government policies in advancing social housing in Nigeria and other developing nations, tackling the pressing issues of housing deficits, affordability, and sustainability. The research begins by exploring the conceptual foundations of social housing, underlining the crucial influence of government interventions in determining housing outcomes. A thorough review of existing literature and policy frameworks was undertaken, with a particular focus on how government policies impact social housing, the challenges and barriers to their effective implementation, and the contribution of international organizations and technology to the enhancement of social housing initiatives. The findings reveal that, although government policies are essential in addressing the growing housing needs, their effectiveness is frequently hindered by socioeconomic challenges, institutional inefficiencies, and insufficient infrastructure. The study underscores the potential of technological innovations and international collaborations in surmounting these obstacles. Specifically, the integration of smart technologies and renewable energy solutions emerges as a promising path toward achieving sustainable housing development. However, the realization of these innovative approaches hinges on the establishment of strong institutional frameworks, sufficient funding, and comprehensive policy support. In conclusion, the study advocates for the prioritization of long-term, flexible social housing policies in developing nations that incorporate technological advancements and align with international best practices. To enhance the effectiveness of these policies, it is recommended that institutional capacities be strengthened, international partnerships be expanded, and ongoing research and innovation in the housing sector be actively promoted. This research contributes significantly to the ongoing discourse on social housing, offering vital insights for policymakers, practitioners, and scholars who are engaged in addressing the urgent housing challenges facing developing nations today.
This study explores the transformative integration of Artificial Intelligence (AI) into sustainable finance, highlighting its potential to redefine financial practices in alignment with Environmental, Social, and Governance (ESG) criteria. Through a systematic review of current practices and an analysis of AI's applications, challenges, and strategic frameworks, the research elucidates AI's role in enhancing financial operations' efficiency, accuracy, and sustainability. Findings indicate that AI technologies, such as the Financial Maximally Filtered Graph (FMFG) algorithm, significantly improve the processing and analysis of vast datasets, facilitating sustainable investment decisions. However, the integration of AI into sustainable finance is accompanied by ethical, regulatory, and technological challenges. The study proposes strategic recommendations for overcoming these barriers, emphasizing the development of robust policy frameworks, industry best practices, and a balanced approach to AI integration. The conclusion underscores the promise of AI in advancing sustainable finance, offering insights for stakeholders on navigating the complexities of this integration to achieve a more sustainable and resilient financial system.
This study specifically examines the development of zakat research from the aspects of five bibliometric indicators: (1) current development of zakat research and its distribution; (2) topic areas and themes in zakat research; (3) main contributors of zakat research; (4) current collaboration pattern in zakat studies; and (5) most influential documents in zakat literature. This study conducted a bibliometric analysis of 405 scientific papers on zakat recorded in the Scopus database until 2021. Various tools have been used – Microsoft Excel for frequency analysis, VOSviewer for data visualization, and Harzing’s Publish or Perish for metrics and citation analysis. This study finds that the number of zakat literature has increased significantly and consistently over the last ten years. The fields of Social Science, Business, Management, Accounting, Economics, and Finance are areas where zakat literature often appears in and is based in countries in the US, Europe and Asia. English is used in most zakat literature, along with several other languages like Malay, Arabic, German, Indonesian, Slovak, and Turkish. Research results also indicate that the zakat literature is mainly found in the subject areas of economics, finance, management, and accounting. The use of keywords such as zakat, Malaysia, zakat institution, poverty alleviation, zakat distribution, zakat management, social welfare, education, efficiency, and human are widespread. This study also found that Malaysia, Indonesia, America, Saudi Arabia, and Britain have become the five countries that have played a major role in creating collaborative zakat research. The findings of this study provide important implications for improving the practice and reach of zakat globally.
Purpose
The purpose of this paper is to identify the factors that influence the individual bounded rationality of the rural poor toward participation in borrowing from rural development scheme (RDS). Specifically, how do respondents’ demographic variables such as gender, age, education, income and religion affect their attitude, subjective norms (SNs) and perceived behavioral control (PBC) to influence bounded rationality toward actual participation in borrowing the Islamic funds from RDS?
Design/methodology/approach
To answer these questions, the theory of bounded rational planned behavior as its basis was established. Data ( n = 375) were collected from rural women clients of RDS based on snow-balling sampling technique. Data were analyzed following the procedure of structural equation modeling.
Findings
The results indicate that all the demographic variables except education influence attitudes, SNs and PBC in turn influence the individual respondents’ bounded rational intention toward participation in RDS.
Research limitations/implications
The sample was not randomly drawn to represent a population to which findings could be generalized. Instead, it was a snow-balling sample, and as such, the ability to generalize the findings very far beyond the sample is limited.
Practical implications
This paper implies that respondents’ socioeconomic characteristics are important to consider changing individual subjective rationality of human being toward performing actual behavior.
Social implications
Social implications refer that rural women in Bangladesh are positively and subjectively motivated toward bounded rational intention and participation in RDS.
Originality/value
This research is based on the primary data collected from the participants in an Islamic microfinance institute called RDS. This paper draws on several insights about the participation behavior of the rural poor in Bangladesh.
Islamic social finance was discussed in 2013 by IRTI-IDB as a new spirit in solving the economic problem by allocating funds for humanitarian social works by using zakah, infaq, sadaqah, waqf, qardh al-hasan, and Islamic micro-insurance and Islamic microfinance. Islamic social finance has many imperatives to solve socio-economic problems. Therefore, it is needed to study the current state of Islamic social finance research to date. Thus, the study attempts to explore the status of Islamic social finance literature using bibliometric analysis by identifying statistics number of publications year by year, influential aspects, visualization of co-occurrence of keywords, and data texts related to the topic of Islamic social finance by using VOSviewer software. The finding of the study indicated that few articles discussed Islamic social finance. The most discussion of Islamic social finance was in 2019, which tried to handle the issues of the Covid-19 pandemic. Consequently, the journals that contributed the most to the study of Islamic social finance were al-Shajarah and the International Journal of Islamic and Middle Eastern Finance and Management. IIUM and INCEIF have contributed the most in the literature related to Islamic social finance from the author's affiliation. Malaysia is the most contributing country in writing Islamic social finance literature. Furthermore, the most selected keywords of Islamic finance research are Islamic social finance, maqasid syariah, value-based intermediation, sustainable development goals, and waqf. For the most co-occurrence text data, six clusters discussed the role of Islamic social finance in Covid-19, culture and country case on Islamic social finance, sustainable development goals, ecosystem, and maqashid syari’ah.
This study aims to examine the role of Islamic social finance in facing the economic impact of the Covid-19 pandemic. The Covid-19 pandemic outbreak has an impression not only on the health sector but also on the economic sector. So, for that we need several solutions to anticipate the effect on the health and economy. This study employs library research data that examines some literature related to the role of Islamic social finance. Zakat, infaq, sadaqah, waqf, and qard al-Hasan are the win solutions in anticipating the economic crisis because of Covid-19.
This study aims to explain the common goals of zakat and Sustainable Development Goals (SDGs) from the perspective of maqasid al-Sharia. Zakat programs developed by the National Board of Amil Zakat (BAZNAS), especially in the economic, social and humanity, health, and education fields are in line with the SDGs programs launched by the United Nations, especially the programs number 1-4 namely no poverty, zero hunger, good health and well-being, and quality education. By using the maqasid al-Sharia approach, the SDGs programs that are included in the level of urgent needs (daruriyyah) and in accordance with the purpose of zakat, take precedence in its implementation such as the Mustahik Economic Empowerment Institute established by BAZNAS to improve the quality of life of mustahik. (Penelitian ini bertujuan untuk menjelaskan tujuan umum zakat dan SDGs dari perspektif maqasid al-Sharia. Program-program Zakat yang dikembangkan oleh Badan Amil Zakat Nasional (BAZNAS) khususnya dalam bidang ekonomi, sosial kemanusiaan, kesehatan, dan pendidikan sejalan dengan program-program tujuan pembangunan berkelanjutan (SDGs) yang dicanangkan oleh PBB, khusunya program no poverty, zero hunger, good health and weel-being, and quality education. Dengan menggunakan pendekatan maqasid al-Sharia, maka program-program SDGs yang masuk dalam tingkat kebutuhan yang mendesak (daruriyyah) dan sesuai dengan tujuan zakat, diutamakan dalam pengimplementasiannya seperti Lembaga Pemberdayaan Ekonomi Mustahik yang didirikan BAZNAS dengan tujuan untuk meningkatkan kualitas hidup mustahik.)
Muslims are the largest minority in India, yet the federal government has, in place, just a single Muslim-specific poverty alleviation scheme, which is utterly insufficient to meet their financial needs. Hence, in the face of governmental apathy and indifferent attitude, Muslims are left to fend for themselves. In this scenario, Zakāt turns out to be a more-than-handy tool to alleviate poverty among Muslims in India. Zakāt, over the years, has manifested itself as a successful means to meet out the financial needs of the developmental activities across the level including the non-Muslim countries. Zakāt possesses a robust potential to play a critical role to implement the Sustainable Development Goals (SDGs) to alleviate the poverty of Muslims in a Hindu-majority country like India.
Purpose
This paper aims to test the main factors that affect cash waqf collection among the employees of Islamic banking institutions (IBIs) in Malaysia.
Design/methodology/approach
The data was gathered using a survey method from 218 employees of IBIs in Malaysia. The obtained data was analyzed using the Statistical Package for the Social Sciences software and smart partial least squares-structural equation modeling to verify the hypothesis and reach conclusions.
Findings
The results revealed that word of mouth and trust have significant positive impacts on cash waqf collection. The outcomes also confirmed that convenience and accessibility to cash waqf play significant roles in affecting cash waqf collection.
Originality/value
Based on the researchers’ knowledge, there are only a few studies which focused on measuring the driver of cash waqf collection from the employees’ perspective, particularly in the Malaysian context. This study specifically applies the theory of reasoned action to determine employees’ attitudes toward cash waqf fund collections in IBIs in Malaysia. Having an understanding of the factors that influence employees to contribute to cash waqf would better equip IBIs in managing their cash waqf contributions and in designing their marketing and branding strategies for promoting their institutions.
This study aims to systematically explore and cluster by mapping and visualizing the cash waqf research literature to serve basis for future research. A system mapping research (SMS) was employed with bibliometric analysis using VOSviewer based on Web of Science data from 1979 to April 2021. This study visualized patterns of the co-occurrence of keywords, co-citation relationships, and citations of documents. We show the literature's influential aspects, such as the number of publications per year, countries, institutions, journals, authors, and topics. The review of cash waqf research comprises 46 publications by 107 authors affiliated with 32 organizations in 9 countries, published amid 29 journals, and cited 293 times. We also identify three research streams by analyzing key terms: cash waqf management, cash waqf giving behavior, and the role of cash waqf. The journals publishing cover the business and economics research area and primarily published in high impact journal. We finally provide the potential research directions information for future studies by reviewing and analyzing the published research on cash waqf.
Purpose ― Zakāh during the COVID-19 outbreak has played a vital role and has been significantly discussed in the virtual environment. Such information about zakāh in the virtual world provides unstructured data, which contains important information and knowledge. This paper aims to discover knowledge related to zakāh administration during the pandemic from the information in a virtual environment. Furthermore, the discussion is contextualised to the socio-economic debates. Methodology ― This study employs a qualitative research approach via text mining to learn about zakāh administration during the COVID-19 pandemic. The National Board of Zakat Republic of Indonesia (BAZNAS RI) is selected for a single case study. This paper samples BAZNAS RI’s situation report on COVID- 19 from its virtual website. The data consists of 40 digital pages containing 19812 characters, 3004 words, and 3003 white spaces. The text mining analytical steps are performed via RStudio. The following R packages, networkD3, igraph, ggraph, and ggplot2 are employed to run the Latent Dirichlet Allocation (LDA) for topic modelling.Findings ― The authors’ LDA analysis using RStudio results in the sixteen topics associated with the three primary topics (i.e. Education, Sadaqah and Health Services). The topic modelling discovers knowledge about BAZNAS RI’s assistance for COVID-19 relief, which may help the readers understand zakāh administration in times of the pandemic from BAZNAS RI’s virtual website. This finding may draw the theory of socio-economic zakāh, which explains that zakāh as a religious obligation plays a critical role in shaping a Muslim community's social and economic processes, notably during the unprecedented times of COVID-19.
Research limitations ― This study uses data from a single zakāh institution. Thus, the generalisation of the finding is limited to the sampled institution.
Practical implications ― This research is both theoretically and practically important for academics and industry professionals. This paper contributes to the novelty in performing text mining via R in gaining knowledge about the recent zakāh administration from a virtual website. The finding of this study (i.e. the topic modelling) is practically essential for zakāh stakeholders to understand the contribution of zakāh in managing the COVID-19 impacts.
Social implications ― This work derives a theory of ‘socio-economic zakāh’ that explains the importance of a zakāh institution in activating zakāh for managing socio-economic issues during the pandemic. Thus, paying zakāh to an authorised institution may actualise more maṣlaḥah (public interest) compared to paying it directly to the aṣnāf (zakāh beneficiaries) without any measurement.
Originality/value ― This study is among the pioneers in gaining knowledge from Indonesia’s zakāh management during the COVID-19 outbreak via text mining. The authors’ way of analysing data from the virtual world using RStudio can benefit Islamic economics literature.
The present study investigates the behavioural intention of prospective customers towards Islamic microfinance services in Bangladesh based on demographic factors such as gender, age, education, and family size. This study uses a self-administered survey questionnaire to determine the intention of prospective customers towards Islamic microfinance services based on five variables, namely subjective norms, attitude towards behaviour, behavioural intention, normative belief, and behavioural belief. A total of 450 questionnaires were distributed, out of which 326 responses were received (72.44%). The findings of this study indicate that male respondents have a higher behavioural intention towards Islamic microfinance services than female respondents. On the other hand, female respondents have a higher behavioural belief towards Islamic microfinance services compared to their male counterparts. The findings also indicate that those respondents who studied up to secondary school level would like to receive opinions from family members and friends about the use of Islamic microfinance services. The present research findings have important implications for Islamic microfinance institutions, practitioners and policy makers. The findings of this study are expected to reflect suggestive steps to increase the behavioural attitude in the use of Islamic microfinance services.
The foundational principle of Islam is Rahman and the beloved Prophet of Islam (peace be upon him) has been sent as rahmatan Lil Alamin, mercy to all mankind. It is upon this principle that Islam incorporates different programs that will make life comfortable for all mankind. These kinds of programs include Sadaqah, Zakat, and by extension Waqf. The latter has been used in many countries such as Malaysia, Turkey, Kuwait, etc. as a way of alleviating poverty, bridging the socio-economic gap, and empower masses especially the vulnerable. As the whole world was unexpectedly sparked by the novel pandemic, COVID 19, every country has been on toe not only to protect her habitants and city but also to render assistance on the basic needs. Some countries like Nigeria have been overwhelmed in successfully carrying out this task. They become “lone wolf” in this situation. This paper assesses how the pandemic affects the livelihood of people in Lagos state in Nigeria and the reliefs provided by the government to help the situation. It is thus revealed that Lagos State has the highest number of coronavirus cases with more than ten thousand cases. The pandemic affected the source of income of people and everyone finds it difficult to meet ends meet. The government has supported people through cash transfer and food distribution. However, it is found that the government alone was on the ‘battlefield’ making the matter complicated and the relief provided insubstantial. It is on this base that this study recommends creation of Waqf institution to provide complementary role in such situation and beyond.
Purpose
This study aims to formulate a strategy for optimizing zakat governance in zakat institutions in East Java Province by identifying priority problems, creating solutions and developing strategies.
Design/methodology/approach
This qualitative research uses the analytical network process method. Ten respondents representing practitioners, academics, associations and regulators were selected for their expertise in zakat governance. The data were processed using Super Decision software program and Excel.
Findings
Priority issues in optimizing zakat governance found in this study are lack of information on Mustahik’s needs and development to Muzakki and the low motivation and ability of Mustahik to develop. Improving the quality and capacity of Amil’s, especially in the technological aspect, is a priority solution. The priority strategy considers intensification (by developing Amil’s ability to use technology) and extensification (by increasing Amil’s numbers who master technology).
Practical implications
The results highlight the urgency of increasing Amil’s capacity and capability in technology-based zakat management. Zakat institutions need to prepare for management’s transformation toward zakat technology as one of the priorities in optimizing zakat governance.
Originality/value
Problems, solutions and strategies for optimizing zakat governance are collected by connecting it to the Zakat Core Principles, namely, the ninth principle of collection management and the tenth principle of distribution management. Further, for identifying problems, solutions and strategies, four aspects must be considered of Amil, Muzakki, Mustahiq and other supporting elements to present better policies to optimize zakat governance.
Purpose
The purpose of this study is to identify the demographic groups that can be targeted for donations by the cash waqf institutions for their marketing campaigns in Malaysia.
Design/methodology/approach
This paper uses a structured questionnaire to acquire the understanding of Malays about the existence of poverty in Malaysia and to identify the demographic groups that can be targeted for the marketing campaigns of cash waqf institutions. The sample consisted of 430 Malays respondents residing in Selangor. The study used the methodology of Baron and Kenny for mediation analysis.
Findings
The finding indicates that Malays do hold sympathies towards the poor. Further investigation shows that high-income class and female are the two demographic groups that are more sympathetic towards the poor because of their strong belief in charity.
Research limitations/implications
The data collection is limited to Selangor only. However, it provides enough information about the demographic groups which is worth exploring for the future researchers in order to come up with marketing strategies related to cash waqf collections.
Practical implications
On the basis of findings, cash waqf institutions in Malaysia can come up with marketing strategies to attract high-income class and females as their potential donors.
Originality/value
The charity institution specifically cash waqf institutions in Malaysia are struggling to identify the right target groups for their marketing campaigns. This study used attribution theory to identify the target groups which is overshadowed by the previous research studies in the context of Malaysia.
Pursose: The ongoing Corona virus (COVID 19) pandemic has already impacted almost everyone across the globe. The focus has now shifted from spread of the disease to the economic consequences it will bring to the society. The shortage of production will result into the shortage of supply and consequently will end as loss of jobs and employment for millions of people around the world. Two of the most important section of our society i.e., daily wage laborers and Small and Medium Enterprises (SMEs) will have to bear the major burnt of this crisis. The proposed integrated Artificial Intelligence and NLP based Islamic FinTech Model combining Zakat (Islamic tax) and Qardh-Al-Hasan (benevolent loan) can help the economy to minimize the adverse impact of COVID 19 on individuals and SMEs. Design/Methodology/Approach: The present study explores the possibility of Zakat and Qardh-Al-Hasan as a financing method to fight the adverse impact of Corona virus on poor individuls and SMEs. It provides the solution by proposing an Artificial Intelligence and NLP based Islamic FinTech Model combining Zakat and Qardh-Al-Hasan. Findings: The findings of the study reveals that Islamic finance has immense potential to fight any kind of situation/pandemic. Zakat and Qardh-Al-Hasan, if combined together can prove to be a deadly combination to fight the adverse effect of COVID 19.
The objectives of this study are to propose the Integrated Waqf Environmental Protection Model (IWEP) and investigate the farmers’ intention to adopt it. In developing the IWEP model and investigating farmers’ willingness to adopt it, this study surveyed 400 farmers in Kedah. The intention of the farmers to adopt the proposed model was analysed by adding perceived barriers and socio-economic variables into the theory of reasoned action (TRA) model. The collected data were processed using structural equation modelling (SEM). The SEM results show that the subjective norm is positive and has a significant impact on the intentions of low-income farmers to accept the IWEP model. This indicates that the decision of the low-income farmers to accept the IWEP model is significantly influenced by their family members, neighbours and friends. Furthermore, awareness and perceived barriers have a greater impact on the elderly, highly educated and wealthy farmers. The findings indicate that the elderly, highly educated and wealthy farmers are aware of climate change and they perceive higher risks or barriers to climate change. As a result, they are more likely to have an adaptation intention. If we encourage people to create waqf fund, we can increase the value of the farmer and the country’s total GDP.
Purpose
Bringing more impact seems to be a real issue for social initiatives and organizations requiring the adoption of new approaches. The paper aims to define an integrated approach for building, maintaining and upgrading Islamic social finance and sustainable ecosystems.
Design/methodology/approach
The paper presents a conceptual framework based on case studies and literature review describing the methodology and the necessary steps to build sustainable ecosystems.
Findings
The paper shows the impact of building social finance ecosystems on tackling social issues. It emphasizes the idea that solving social issues is everybody’s business – from governments to businesses – and that those initiatives require sufficient Sharīʿah-compliant funding to achieve sustainability goals.
Research limitations/implications
The paper does not focus on the Islamic world experiences in building ecosystems serving social causes.
Practical implications
The paper gives an overview on how collaboration between the different social oriented organisations can enhance the social impact of the different initiatives. The aim is to ensure adequate financing to all the ecosystem components during the whole lifecycle.
Social implications
The suggested approach of building sustainable ecosystems can serve as a way to assess the existing social initiatives and practices to find relevant combinations targeting more impact.
Originality/value
In the social sphere, the idea of building ecosystems has been explored in different ways but never in a way that gathers all the components including finance providers, coordinators and the different types of initiatives. The paper adapts the ecosystem concept to the Islamic finance specificities.
This paper seeks to examine the role of Islamic social finance towards alleviating the humanitarian crisis in North East Nigeria. The paper revealed the various conceptual definitions of Islamic social finance, its various instruments, update on humanitarian situation. A modified revenue function model was adopted. The study revealed that zakat potentials in Nigeria is estimated to be between USD 8,776.5-USD 21,160.99 million which is alone adequate to fill the humanitarian funding gap. More so, Sadaqah and Waqf was analyzed based on the number of active Telecoms line subscribers and the population statistics of citizens within the ages of 15-69yrs and that If N20 is paid weekly at a 5% level of cash collection error rate, a total amount of about N162b and N106b could be realized yearly respectively which can be used to bridge certain sectors of humanitarian needs in areas of housing, primary health care centres, water, food, empowerment etc. Likewise, the said funds can still be used for investment purposes in areas like mudaraba term deposit, sukuk, stock etc most especially funds realized from cash waqf. The study concluded that by adequately combining the Islamic social finance tools while adopting technology in its collection process & monitoring, it will effectively bridge the humanitarian funding gap as well as resettling and empowering the IDPs. The study recommends legislation of act setting up zakat/waqf, public awareness should be properly done, use of crowd funding approach
Purpose
The purpose of this study is to propose a contemporary human resource management (HRM) framework by zakat institutions, which collect and manage religious alms, both obligatory (zakah) and voluntary (sadaqah), in Malaysia.
Design/methodology/approach
In doing so, discussions pertaining to the key elements of zakat institutions’ HRM including recruitment, selection, performance appraisal, training and development and compensation are gathered from the existing literature and other sources of information such as zakat institutions’ websites and publications. In addition, zakat officers’ insight on how HRM is practiced at their institutions is gathered through a series of semi-structured interviews and incorporated in the findings of this study.
Findings
The paper finds that the state government, by virtue of the State Islamic Religious Council (SIRC), which is the sole trustee of all waqf properties in Malaysia, may have significant influence in formulating the human resource strategies and policies in zakat institutions.
Research limitations/implications
The proposed HRM model can be a useful reference for SIRC in enhancing the current human resource practice in their respective zakat institutions.
Originality/value
The novelty of this study lies in the proposed HRM model applicable to zakat institutions. The model emphasizes the alignment between the zakat institutions’ HRM practice and their zakat collection and distribution goals, as well as zakat management objectives in general.
Purpose
This paper aims to propose cash waqf (endowment) to develop a conceptual model that can be utilised to extend microfinance for refugees.
Design/methodology/approach
Qualitative method is used in this research. An extensive review of the literature has been conducted. Latest literature on refugees, microfinance has been critically examined beside the current cash waqf models.
Findings
Empirical studies have shown that many refugees are equipped with marketable skills and talents that can be utilised to improve their socio-economic situations. The proposed model – cash waqf refugee microfinance fund (CWRMF) – is structured to extend microfinance to potential refugee micro entrepreneurs. To address the lack of collateral, which is a requirement to gain any microfinance, CWRMF has been incorporated with a takaful unit (cooperation) by which refugees may guarantee each other. Additionally, the model has also been structured to address the challenge of sustainability of the institution that would provide microfinance. Hence, a reserve fund has also been integrated into the model.
Practical implications
CWRMF represents a potential model to be implemented by humanitarian non-governmental organisations (NGOs) and aid agencies to support livelihood of refugees in particular for Muslim refugees. Positive outcome is expected from the implementation of this model. This is because of the various advantages of microfinance programs not only on refugees but also on concerned NGOs, host populations and donor parties. Additionally, this paper is a set of primarily thoughts aims to open the door wider for more researchers to explore the potential of cash waqf as one of the instruments to finance refugee microenterprises and business activities.
Originality/value
Recently cash waqf has been into several models for socio-economic development and poverty alleviation. This paper is proposing cash waqf as a source for a microfinance fund that can contribute in the improvement of socio-economic situations of millions of refugees around the world.
Purpose
This paper aims to add to the existing body of literature on this subject by advocating how waqf -based entrepreneurship can be practiced in Malaysia.
Design/methodology/approach
The paper begins by presenting an overview of waqf and its role in entrepreneurship and proceeds by proposing a model of waqf -based entrepreneurship which is synthesized from various models existing in the Islamic world.
Findings
The paper concludes by recommending waqf -based entrepreneurship as an alternative socio-economic framework of society’s wellbeing.
Research limitations/implications
The research is limited to the preliminary aspects of waqf entrepreneurship.
Practical implications
Waqf organization may be able to finance its own businesses through crowdfunding and other methods and also disburse waqf funds to small and large ventures.
Social implications
The waqf system is a social tool that not only finances social development projects but also has social economic alternatives to assist poor and underprivileged groups in the society. This paper is toward such a socio-economic direction.
Originality/value
This paper might be considered the first attempt to detail the practical aspect of waqf entrepreneurship, in terms of enterprises to be financed, and how the funds to be accumulated.
The global financial crisis that devastated many of the world's financial systems in a manner never seen before exposed the glaring weakness in risk management and interest-driven policies. The crisis brought the collapse of several iconic financial institutions once perceived to be too strong to capitulate. The crisis engulfed one economy after another from corporations to eventually bring about the collapse of governments of countries reeling from the impact of the crisis. Asset values plummeted and the crisis clearly demonstrated the fragility of the western capitalist system and the free market economy. The Islamic economic and financial system is anchored on universal honorable values, ideals and morals - honesty, credibility, transparency, co-operation and solidarity. These fundamental values uphold stability, security and safety in any financial transactions. Of paramount consideration is that the Shari'ah prohibits any economic and financial transactions that involve usury, lying, gambling, cheating, unsubstantiated risk or uncertainty (gharar), monopoly, exploitation, greed, unfairness and taking other people's money unjustly. Another key aspect to the philosophy behind the Islamic financial system is money issued must be fully asset backed. It is impermissible to allow money to be traded for money except at par. Islam is not just the prohibition of riba and zakah (alms); it is a comprehensive system to fulfill society's basic necessities (food, clothing and shelter). History has demonstrated that Islam has the capacity to deliver and has succeeded in providing a viable economic system.
Islamic Microfinance (IM) is an important instrument for lessening poverty more than ever in Muslim majority developing countries. Over populated Bangladesh is one of the developing countries in the world. However, there are a number of financial institutions working with the concept from several years; it is still in the inception stage in Bangladesh. The purpose of the paper is to assess the potential of expanding IM as poverty alleviation technique in Bangladesh. The study found that concept of IM can easily be used to harness the religious beliefs of poor people by eradicating interest (Riba) from the financing mechanism.
Purpose
– This study aims to know the present structure and move of the Islamic banks of Pakistan as well as current issues and challenges for Islamic microfinance. However, this is based on perceptions of the Islamic bankers, regulators and micro-entrepreneurs and petty traders, as they are the key players in the credit market.
Design/methodology/approach
– The study gathered relevant information through conducting field survey. Two questionnaires were designed for the survey. One questionnaire was administered to survey 270 micro-entrepreneurs and petty traders in three major cities of Pakistan. Another survey deals with the perceptions of Islamic bankers. In total, 100 people from middle and top management were surveyed from five full-fledged Islamic banks of Pakistan. The SPSS software, version 16, was used for questionnaire reliability and descriptive analysis to analyse the data.
Findings
– In general, the study found the strong opinions of the respondents speak in favour of Islamic microfinance under a system of profit and loss sharing. Conversely, the majority of the clients also feel that Islamic banks do not encourage lower-income micro-entrepreneurs. In addition, the study found that Islamic microfinance is constrained by lack of knowledge, experience and professionalism of the supporting staff; however, Islamic bankers have shown great consensus that Islamic banks should offer Islamic microfinance products and instruments to respond to the needs of the poor for poverty alleviation.
Research limitations/implications
– The first limitation of the study is the meagre interest of micro-entrepreneurs and petty traders to participate in the survey. The second limitation of this work concerns the extremely busy schedule of top management and administrative impediment to approach and fix an appointment. Despite these limitations, the findings of this study provide insights to Islamic banks in diversifying their products by offering Islamic microfinance to the low-income entrepreneurs but with proper guidelines and policies.
Practical implications
– There is a need to educate the community towards the merits of Islamic banking system by developing a good information system using good visuals and professionally presented seminars, banners and arranging regular sessions with the business community. The growth and development of Islamic banking in the country largely depend on its customers’ enhanced knowledge and awareness about its products and services.
Social implications
– It is the responsibility of the community as well as of government to change the mindset of the poor that banks are meant to serve the interest of everybody, regardless of social, economic and political status.
Originality/value
– Theoretically, this study contributes to the existing body of knowledge in the area of Islamic microfinance by examining the perceptions of Islamic bankers and micro-entrepreneurs. This can help Islamic banks of Pakistan to design and formulate new administrative as well as operational procedures to serve the interest of the poor with commitment towards Islamic values.
Purpose
– The purpose of this paper is to examine the role of zakat (the Islamic tax) in alleviating poverty and inequality in Pakistan using a newly developed index, namely, the Basic Needs Deficiency Index (BNDI).
Design/methodology/approach
– The study formulates an index (BNDI) to measure the deficiency and effectiveness of zakat as one of the different items of government expenditure/spending to alleviate poverty. In this paper, Pakistan is chosen as a case study for two reasons: the availability and accessibility of data required for computing BNDI; and, in the past, no index such as this had been used to measure poverty in Pakistan.
Findings
– The results obtained from the computation of the BNDI have been able to explain the effectiveness of zakat in alleviating poverty and inequality in Pakistan.
Practical implications
– The findings of the study can be used by policymakers to measure and improve the effectiveness of zakat in reducing poverty and inequality.
Social implications
– As the ultimate beneficiaries of zakat are the poor people, the outcome of this study may help improve their quality of life.
Originality/value
– The paper develops a new methodology to measure poverty alleviation in Pakistan, focusing on the poor households’ consumption/expenditure on basic needs, government spending in terms of zakat and the number of zakat recipients as the three main determinants. The index developed in the present study can be applied to measure the performance of all Muslim countries whose provision of zakat is embedded in the national agenda to alleviate poverty.
ABSTRACT
This study explores the factors influencing the acceptance of online waqf, generally termed as
Islamic e-donations in Malaysia. The technology acceptance model (TAM) was used as a
baseline theory. Questionnaire survey was conducted. The data of the survey were analyzed
using Partial Least Square (PLS) approach. Results indicate that perceived usefulness,
perceived ease of use, perceived religiosity and amount of information are instrumental in
influencing one’s decision to perform online waqf. Importantly, the results of this study will
extend current knowledge on technology acceptance, and online waqf particularly. The
results propagate valuable insights for Islamic banking institutions to introduce online waqf in
the future where the factors analyzed could be used as a guideline for better planning and
implementation of online waqf. Limitations and future researches are provided.
'Zakat', "that which purifies" or "alms", is the giving of a fixed
portion of one's wealth to charity, generally to the poor and needy. It
is one of the five pillars of Islam, and must be paid by all practicing
Muslims who have the financial means (nisab). 'Nisab' is the minimum
level to determine whether there is a 'zakat' to be paid on the assets.
Today, in most Muslim countries, 'zakat' is collected through a
decentralized and voluntary system. Under this voluntary system, 'zakat'
committees are established, which are tasked with the collection and
distribution of 'zakat' funds. 'Zakat' promotes a more equitable
redistribution of wealth, and fosters a sense of solidarity amongst
members of the 'Ummah'. The Malaysian government has established a
'zakat' center at every state to facilitate the management of 'zakat'.
The center has to have a good 'zakat' management system to effectively
execute its functions especially in the collection and distribution of
'zakat'. Therefore, a good forecasting model is needed. The purpose of
this study is to develop a forecasting model for Pusat Zakat Pahang
(PZP) to predict the total amount of collection from 'zakat' of assets
more precisely. In this study, two different Artificial Neural Network
(ANN) models using two different learning algorithms are developed; Back
Propagation (BP) and Levenberg-Marquardt (LM). Both models are developed
and compared in terms of their accuracy performance. The best model is
determined based on the lowest mean square error and the highest
correlations values. Based on the results obtained from the study, BP
neural network is recommended as the forecasting model to forecast the
collection from 'zakat' of assets for PZP.
Islamic banks have been bombarded with the accusations being the same with its conventional sides. Consequently, the public are not convinced with the title ‘Islamic’ that Islamic banks have been carrying. Despite a growing literature on the reporting practices of Islamic banks, there is a need of research on the role of Islamic banks in zakat distribution. This descriptive, content analysis examined the annual reports and financial statements of Islamic banks to explore information that can be found in these documents. Documents from year 2018 until year 2020 was searched using their individual website and downloaded. Results indicated that Islamic banks do not disclose much information on zakat distribution, since it is considered as voluntary disclosure. Annual reports and financial statements are means of corporate communication to the public. Thus, disclosing such information is recommended.KeywordsIslamic banksZakat distributionAnnual reportsFinancial statements
Distrust to zakat institutions is one of the causes zakat funds not reaching the potential amount in Indonesia. Blockchain technology, with its capability of tracing, can provide transparency information. The Blockchain-based Zakat can potentially overcome distrust issues to zakat institutions. However, the legal status of cryptocurrency is still skeptical. This study aims to see the feasibility of CBDC can be implemented in blockchain-based Zakat in Indonesia. The method used in this research is the qualitative method. An extensive literature review method was utilized to identify and analyze the relevant literature in order to propose the model. This study suggests Blockchain-based Zakat with the use of CBDC and BAZNAS as the zakat agencies.KeywordsBlockchainZakatCBDCTrust
This paper aims to develop a model to enhance social justice through zakat in Bangladesh by utilizing donation-based crowdfunding. Whilst being one of the most populous Muslim majority countries, Bangladesh still lacks a centralized policy regarding zakat. Zakat collection and distribution in Bangladesh follows an informally coordinated model which is inefficient. In the absence of required government engagement, solutions are needed to optimize the underutilized potential of zakat.To accomplish this objective, this research employs a qualitative approach. It is found that integrating zakat into a donation-based crowdfunding model is an innovative Islamic fintech approach that can contribute towards improving the socio-economic potential of zakat in Bangladesh. The proposed model has the potential to improve the socio-economic situation of zakat recipients, which can lead to an increased standard of living and enhancement of social justice. The results of this study may enhance the efficiency of zakat and its effects in Bangladesh.KeywordsBangladeshCrowdfundingSocial justiceZakat
Purpose
Productive waqf is one type of ethical business/investment, which should comply to Islamic law, with so many models to choose from. The purpose of this study is to determine factors of simple productive waqf, propose several simple productive waqf models and select the best simple productive waqf models appropriate to be adopted by waqf institution in Indonesia.
Design/methodology/approach
This study applies the analytic network process, including field survey, focused group discussion and in-depth interview, with two groups of respondents, namely, expert and waqf practitioner.
Findings
The results show that the determinants of simple productive waqf in Indonesia are the waqf institution, productive waqf asset to be developed, how to finance the productive waqf, how to manage the productive waqf and the compliance of productive waqf. Proposed productive waqf models include cash-waqf and self-managed model, Islamic bank financing and self-managed model, Sukuk and external partnership model, cash-waqf and external partnership and cash-waqf + co-financing and external partnership. Moreover, the best simple productive waqf model is cash-waqf and self-managed model, followed by cash-waqf and external partnership, where they could achieve the most in all socio-economic variables, well-being compliance and moral/ethics within the theory of unity of knowledge, Tawhid.
Research limitations/implications
The simple productive waqf models proposed are not exhaustive, since there are so many variations of the model. Moreover, the case and respondents are all Indonesian, so that the results are possibly only applicable to Indonesia.
Practical implications
To increase the probability of successful productive waqf development, waqf institutions could apply cash-waqf and self-managed model first, while other models could be applied in staged in line with waqf institution experience.
Social implications
The successful development of productive waqf could increase the social programs provided by waqf institutions to the society.
Originality/value
Productive waqf development is desperately needed due to many unproductive waqf lands in Indonesia, while studies have been limited, and there is no study discussing the productive waqf model appropriate for Indonesia.
Although Islamic social finance including zakat has witnessed an upsurge in development in quantum, which reached US3 trillion by 2020, due to a lack of transparency, trust, and timely disclosure to public has resulted in inefficient of zakat collection and ineffective disbursement for the wellbeing of recipients. The reason for this could be neglecting adoption of financial technology specifically blockchain and artificial intelligence system in zakat management to enhance proper collection and efficient distributions timely and effectively reporting to public. Therefore, this research proposes an ‘Islamic Social Welfare Financial Technology' (ISW FinTech) as an innovative framework that assesses zakat institutions operational efficiency of zakat collection, transparency, and effective distribution that would lead to wellbeing of zakat recipients. This framework is based on new six clusters according to their needs and priority, which convert them from being zakat recipients into zakat payers.
Purpose
This paper aims to inquire about the opinions and recommendations of various experts on the crowdfunding waqf model (CWM), particularly in terms of its suitability, applicability and prospect in the market.
Design/methodology/approach
This paper used primary data which are collected from semi-structured interviews conducted with several experts from various backgrounds. For examining the data, this paper has used thematic analysis.
Findings
The experts support the suitability of CWM in providing financing resource to develop waqf lands. They highlight the importance of establishing, managing and operating CWM under the aegis of the State Islamic Religious Council in Malaysia and supervising by the Wakaf, Zakat or Hajj Department (JAWHAR). They further point out that the donors or crowdfunders, interesting project, promotion and regulation are key factors that influence the sustainability of CWM.
Originality/value
This paper adds to the literature on waqf land and crowdfunding, especially from the Malaysian context. This paper validates the CWM in terms of its suitability, applicability and prospect in the market by interviewing experts from various backgrounds.
Waqf received research attention due to its ability to contribute to socio-economic development. While a high volume of literary evidence on this Islamic social finance instrument is available, the research motivation and study findings are diverse. Therefore, we conduct a bibliometric analysis of waqf literature to understand the pattern and direction of research on Waqf broadly. We collect 319 articles, and reviews on Waqf extracted from the Scopus database, covering a period exceeding 100 years from 1914 until June 2020. We employ RStudio, VOSviewer, and Microsoft Excel for citation analysis, content, and network analyses. A systematic review of recent publications complemented the bibliometric analysis. Alongside revealing the most relevant scientific actors in waqf literature, most researchers on Waqf were from Malaysia; they conducted studies widely on cash Waqf. As a result, we identify four research themes for waqf studies which include (1) Cash Waqf endowment, (2) Islamic accountability and Waqf, (3) Waqf and Islamic social finance, and (4) Governance for Waqf endowment. This is the first study to provide a bibliometric review of waqf literature to address gaps in the existing research and offer directions for future research which could benefit early-career Islamic finance researchers.
Purpose
This paper aims to study the main trends of scientific research in Islamic finance’s social aspects to clarify place, role and functions, especially in the context of increasing social problems. To achieve this goal, this paper focuses on the social component of Islamic finance, analyzes publications on social Islamic finance in the Web of Science database, covering the period from 1979 to 2020, specify the geographical localization of research networks, determines the most cited authors and their scientific position.
Design/methodology/approach
The authors have applied several literature review techniques, a bibliometric citation and co-citation analysis, a co-authorship analysis and a review of the most cited papers. The analyzes’ results allow us to offer five future questions in Islamic social finance, zakat and waqf , which have not been investigated before and could influence Islamic social finance and Islamic finance research.
Findings
The authors also derive and summarize five leading future research questions.
Research limitations/implications
This is a limitation of using only the Web of Science Core Collection database as the premier resource and the most trusted citation index for the world’s scientific and scholarly research. Further study might expand the types of analyzed units, include more keywords and include other databases, such as Scopus.
Originality/value
This paper can be considered as an inspirational one to future researchers and policymakers in Islamic social finance.
Purpose
This study aims to explore the perceptions of zakah institutions and the intention of society towards the application of blockchain technology in zakah management.
Design/methodology/approach
The nature of this study is qualitative, attempting to indulge into the contribution of Fintech in Islamic social finance. This study uses a mixed-method to gauge the perception of stakeholders. For the quantitative approach, a survey was carried out focussing on zakah receiver and zakah payer. The data then was analysed based on the technology acceptance model. While interview survey with multiple stakeholders (zakah institutions, JAWHAR and university) was conducted to gauge the perception of zakah institutions in using blockchain technology.
Findings
The findings of this study provide a positive view for zakah institutions to embrace the usage of blockchain in its management, however, there are several concern that needs to be addressed.
Practical implications
This study provides new insights to the body of knowledge especially in the zakah management system and Fintech. Besides, from a managerial aspect, this study contributes to the new practices that could be implemented in zakah institutions.
Social implications
Many people lose jobs and income due to the economic turmoil and COVID-19 pandemic, which makes zakah an important Islamic social finance tool to assist in socio-economic development. It is high time for zakah institutions to implement blockchain especially during this pandemic crisis that requires a more contactless approach to ensure health and safety.
Originality/value
This study is important to encourage Islamic social finance institutions to embrace blockchain technology in providing an efficient service to the development of social and economic.
Islamic microfinance is expanding and penetrating its potential market over the globe. Access to credit or financing, especially during the COVID-19 pandemic, is vital for micro-entrepreneurs in climbing the socio-economic ladder that will contemporaneously increase their household income. In Malaysia, most of the MEs can hardly access financing from formal financial institutions due to poor credit rating, having zero to little collateral, income instability, small loan amounts, and high transaction costs. Alternatively, MEs approach Islamic microfinance institutions for their financing solution. Therefore, this study intends to investigate how far the utilization of Islamic microfinancing by MEs could enhance their quality of life. One hundred seven (107) usable questionnaires were analysed via the Structural Equation Modelling (SEM) AMOS using IBM® SPSS and found that both investment and expansion factors played key roles in affecting the financial wellbeing of the micro-entrepreneurs. The results lend credence to the positive effect of Islamic microfinance products may have on MEs and indirectly support the long-term economic development for MEs. This study deliver implication to various angles. In practical part, it opens the eyes of micro-entrepreneurs to opt for the right path (expansion and investment) to achieve financial wellbeing. Government (regulators) can enhance the ability of Islamic microfinancing as a tool towards financial wellbeing and in theoretical part, this study deepens the scope of Schumpeter’s theory by inculcate this theory with Islamic finance scope of study.
This paper quantitatively analyzes the literature on Islamic microfinance from early 2000 to 2020, as represented by English-language articles from the Scopus database. Using a bibliometric approach plus content analysis, we describe the field's evolution and structure, including co-citation, co-authorship, and bibliographical coupling. We find that Malaysia is the most relevant country, the International Islamic University Malaysia (IIUM) the most relevant institution, and the International Journal of Systems and Ethics the most relevant journal. There are four main topics: (1) principles, performance, and problems in Islamic microfinance, (2) sustainable development, (3) women's empowerment, and (4) the role of banks. We also offer future research directions.
Purpose
This study aims to examine and compare the current waqf governance practices in waqf institutions in Malaysia.
Design/methodology/approach
This paper reviews professional documents and literature to propose a new and practical waqf governance measurement. Waqf governance measurements were used to examine and compare the current waqf governance practices among waqf institutions in Malaysia. The annual reports of all waqf institutions under the State Islamic Religious Councils (SIRCs) were analysed using content analysis on the current waqf governance practices using binomial logic.
Findings
Overall, the results indicate moderate waqf governance practices under three waqf governance categories, namely waqf governance policy, waqf governance board and waqf governance processes. This study also found a significant impact of corporatisation reformation of waqf institutions on waqf governance practices.
Research limitations/implications
The findings indicate the need for all waqf institutions in Malaysia, especially for non-corporate waqf institutions, to enhance their waqf governance practices by disclosing all relevant information to the public. This is because the success of waqf fund management can be portrayed through the management’s transparency in waqf governance practices on how they deliver and use their resources to attain socio-economic objectives.
Originality/value
To the best of the authors’ knowledge, this study is among the first studies that examined and evaluated the current waqf governance practices in several waqf institutions in Malaysia.
Purpose
This study aims to investigate the direct and indirect effects of good governance and fraud prevention on the performance of Zakat institutions.
Design/methodology/approach
A theoretical model was developed based on stakeholder theory, and data were collected from Indonesian Zakat institutions through convenience sampling design. In total, 142 data sets were analysed using partial least squares-structural equation modelling statistical software.
Findings
The results showed that good governance and fraud prevention significantly impact the performance of Zakat institutions. Yet, there was no significant influence of the fairness principle of good governance on Zakat performance in either direct or indirect relationships with fraud prevention.
Practical implications
The results indicated that Zakat institutions as trusted agencies should pay more attention to fairness implementations to avoid fraud. Furthermore, fairness is an early signal that accountants can use to detect either fraudulent or mismanaged Zakat distribution.
Originality/value
This paper provides the empirical justification for a theoretical model of Zakat performance that was conceptualized using good governance principles and Sharīʿah forensic accounting principles.
Purpose
This paper aims to discuss the role of Waqf as a means of enhancing financial inclusion and socio-economic justice in Nigeria.
Design/methodology/approach
The methodology in this paper is that the data were elicited from secondary sources such as the Al-Qur’an, Hadiths and other empirical studies in the existing literature. The Tawhidi epistemology (Islamic world view) also has been obtained to deliver better understanding on the findings.
Findings
The paper implores Islamic societies to take advantages of integrating Waqf to support the financing needs of disadvantaged members of the Muslims communities, especially the Muslims, dominated northern Nigeria with a high level of financial exclusion. The Waqf funds if integrated and institutionalized will support the region by making the fewer privilege members of that community-engaged thereby economically and enhancing the financial inclusion. This will also lead to economic growth and socio-economic development of Nigeria.
Practical implications
The paper concludes by suggesting the establishment of Waqf funds to supports the less privileged people through Islamic Microfinance as means of enhancing socio-economic justice in Nigeria’s Muslims’ communities, which is negatively affected by the high rate of financial exclusion and poverty. This paper also provides critical suggestions on the ways the integration of Waqf funds will contribute significantly towards assisting Nigeria in achieving its vision of reducing the financial exclusion rate and may foster inclusive growth and sustainable development.
Originality/value
This paper is a conceptual study and, therefore, limited to the content of the existing literature. Hence, the future researchers may replicate and test it empirically for a more scientific justification regarding the roles of Waqf towards enhancing financial inclusion in Nigeria.
This paper reviews social finance. Venture philanthropy, microfinance, crowdfunding and social impact bonds are financial and social innovations that reshape capital markets, the production of public goods, entrepreneurship and the fundamental principles of financial analysis. In this context, the pursuit of social and environmental impact is assessed alongside the tradeoff between risk and expected return. The market for impact investments consists of suppliers of capital, recipients of capital, the institutional framework and financing flows. This paper describes the financial market for the pursuit of impact and highlights principal challenges, such as the small scale and long horizon of social ventures, the lack of standardized reporting and financial measures for social outcomes, as well as the elusive causality between impact investments and social change.
Purpose
This study aims to explore the existing Islamic financial technology (fintech) lending in Indonesia. Doing so is to better understand in what way the fintech firms have been promoting the global movement of sustainable development goals (SDGs) in the local context.
Design/methodology/approach
This study engages qualitative methods. This paper first reviews relevant literature related to fintech and establishes the substantive definition of Islamic fintech. Further, the existing literature of SDGs is explored to understand its original idea and its recent implementation, particularly in Indonesia. Following this, the official reports from the domestic regulators are referred to select the fintech firms which meet the criteria of Islamic fintech lending based on the proposed definition. The selected firms are then analysed based on several themes which best capture their position in promoting the SDGs. Finally, the discussion is linked to the recent performance of Indonesia in implementing SDGs.
Findings
This work finds that the reviewed fintech firms have been promoting the idea of financial inclusion, for example, financing the underdeveloped sectors such as agriculture and small and micro enterprises (SMEs). Furthermore, the selected fintech firms are also found to collect and distribute Islamic social funds such as infaq (charity spending), waqf (endowment) and sadaqah (voluntary charity). Besides, the firms are also found to initiate charity programmes for underprivileged community. In some degree, these findings are synonymous of the firms’ effort in promoting SDG of ending poverty (SDG 1) and hunger (SDG 2) and reducing the inequalities (SDG 10).
Research limitations/implications
The discussion of this work does not provide any positivist generalisation due to the method used.
Practical implications
The Indonesian Government is advised to legally engage with the existing fintech firms and other related stakeholders to best solve its recent issue of the declining trend in SDG 15 (life on land).
Social implications
This work elaborates in what way the Islamic fintech lending has been promoting the SDGs in Indonesian context. In some extent, such discussion can best challenge the social issue of fintech which has been stigmatised of bringing mafsadah (harm), as subjectively claimed by one particular religious group in Indonesia.
Originality/value
This study is among the pioneers which offers the definition of Islamic fintech and further explains its position in endorsing the global movement of SDGs.
Purpose
Purpose - Waqf has the quality of perpetuity so waqf properties cannot be sold, bought or given as a gift to others. Therefore, it is necessary to make sure that the property is fully utilised and properly managed by the Malaysian Islamic councils. In order to properly manage these properties, it is essential for the councils to have a proper reporting. Unfortunatley, this is not the case in the present situation for waqf. It was found that there is a lack of reporting on waqf matters. The main purpose of this study is to explore how the Islamic governance can contribute to the sufficient and adequate of waqf reporting.
Design/methodology/approach
Design/methodology/approach – This paper described what is being practised at present for waqf reporting. A series of Islamic governance literature were proposed in reinforcing waqf reporting.
Findings
Findings – This paper fulfils a gap in prior research by discussing several systems in Islamic governance to achieve transparency in waqf reporting. The findings of this paper may provide a significant contribution to any organisation that act as a trustee for waqf.
Practical implications
Practical implications – This paper provides an opportunity for further theoretical approach in defining and describing the role of governance in the reinforcement of waqf reporting. The paper has recommend several strategies towards better governance in Islamic council and these suggestions can be offered to the councils for improvement.
Originality/value
Originality/value – This paper examined several governance system in Islamic governance to be applied in any Islamic organisation. This study specifically deals governance issue that should be practised by present councils to prevent lack in waqf reporting. This system discusses the ways Islamic councils should perform since the system was originally implemented by a previous, distinguished caliph, Umar Al-Khattab.
Purpose
This paper aims to explore the option of Sharī’ah-compliant microfinance as a viable alternative to many previous approaches adopted by the Nigerian State in tackling the menace of poverty in the land. In spite of many poverty alleviation policies and interventions of the past three decades, millions of Nigerians still live in abject poverty, while thousands of university graduates roam the streets looking for jobs. Many unemployed Nigerians with good business ideas are usually discouraged by the alarmingly high interest rate charged on start-up capitals by local banks.
Design/methodology/approach
To achieve its objective, this paper used both analytical and qualitative methods after thoroughly examining many relevant literature and empirical works. The study explores four Sharī’ah tools for the implementation of the proposed scheme, to wit: musharakah, mudharabah, zakat and waqf.
Findings
The study finds that the suggested Sharī’ah tools are viable and sustainable in lunching microfinance projects in the Nigerian context. The paper further argues that exploring Islamic non-interest microfinance options will guarantee the financial inclusion of a large percentage of Nigerians, pursuant to the Constitutional provision on economic rights of the entire citizenry (s.16 of the 1999 Constitution of the Federal Republic of Nigeria, as amended).
Originality/value
The paper identifies a yet-to-be explored viable option, with great potential not only in enhancing government policies for poverty alleviation but also in assuring a large percentage of the citizens of financial inclusion.
Purpose
This paper attempts to contextualise the potential role of waqf (plural; awqaf, Islamic perpetual trust) in the contemporary world, particularly, in the developmental arena. The purpose of this paper is to provide a framework for awqaf to maintain its convergence with some of the fundamental goals of the SDGs which are also congruent with the maqasid al-shariah (the higher objectives of shariah).
Design/methodology/approach
This paper is based on a desk-based research, and it adopts the qualitative research paradigm for the analysis of the available literature.
Findings
This paper finds that most of the 17 developmental goals of the SDGs comfortably match with the long-term objectives of shariah and there is good scope for the stakeholders of awqaf to develop waqf-based development plan in line with the framework of SDGs. Additionally, it finds that the global awqaf enjoy sufficient financial capacity to help muslim majority countries to realise some of the most relevant and urgent maqasid-oriented SDGs in a timely manner.
Research limitations/implications
The scope of this paper is limited to analyse the potential role of global awqaf in realising some of the most urgent maqasid-based development objectives in congruence with SDGs. For the purpose of maintaining the coherence in the focus of the study, this paper does not undertake any comparison between the waqf and other forms of endowments/charities in fulfilling the similar objectives.
Practical implications
This paper provides a framework for maqasid-oriented waqf-based development plan followed by provision of some critical recommendations on how the global awqaf can potentially spearhead the initiative of Islamic charities in realising the maqasid-oriented SDGs among muslim majority countries.
Originality/value
This paper adds original value to the available literature on the potential of waqf in the arena of development. The paper analyses the role of waqf in achieving the most urgent maqasid-based SDGs, and thus, it fills the existing gap of a systematic research on the possible collaboration of global awqaf and SDGs.
Purpose
This paper aims to attempt to offer a viable alternative model of source of financing which is known as integrated cash waqf micro enterprises investment (ICWME-I) model for micro enterprises in Malaysia.
Design/methodology/approach
The literature on the issues of accessing to finance faced by micro enterprises and cash waqf are reviewed critically and used in the attempt of proposing an alternative model.
Findings
The paper has developed ICWME-I model as a source of financing for micro enterprises. This model is expected to provide financial services by using cash waqf fund and involved the participatory contract between non-profit organization and micro enterprises. In addition, with the proposed model, there will be no collateral requirement, interest rate and other stringent requirements which usually imposed by existing conventional financial institutions.
Research limitations/implications
The paper is based on conceptual explorations of literature in the area of micro enterprises and cash waqf. This is a conceptual paper, so it did not use any empirical analysis.
Practical implications
The findings of this paper will provide micro enterprises with an alternative source of financing to start-up or expand their business by using cash waqf fund. The present study also has implications for government and policy makers. With the involvement of non-profit organization that is proposed in this model, it helps the government to reduce its expenses for the development of micro enterprises.
Originality/value
This paper offers an additional literature on cash waqf especially from the Malaysian context. Furthermore, this paper adds to the literature on waqf and cash waqf. The paper proposes a viable alternative model for micro enterprises as a source of financing by using cash waqf fund. This model incorporates Musharakah Mutanaqisah (diminishing partnership) as a financial arrangement between non-profit organization and micro enterprises.