Islamic Sustainable Finance, Law and Innovation

Takaful is an Islamic insurance system, and, in practice, it is considered a method based on the joint guarantee of the members of a group against possible losses on each of them. Recently, insurance companies in Iran have included takaful products in their portfolio. Therefore, considering the entry of Iranian insurers into this field to develop these products in Iran, it is necessary to check the customer’s acceptance rate of takaful products in Iran. Indeed, with the large number of insurers in Iran, the awareness of the people about takaful products is still low among them. The main objective of this chapter is to determine and analyze the main components of consumers’ acceptance of takaful in Iran. To study the level of awareness or acceptance of takaful insurance and its main principles, we need to determine the factors influencing Iranian people to select takaful products over conventional insurance. Some of the variables considered to have an impact on the acceptance of takaful products in Iran are demographic variables (such as age, gender, marital status, religion, income, education, occupation, province, or locality), macroeconomic variables (such as inflation rate and return of other financial markets), price, services quality, Shariah view, marketing and advertisement variables, and product characteristics. To investigate the acceptance and awareness of takaful in Iran, the researchers employed a qualitative research approach, distributed to customers, because the aim of this chapter is to measure the individual reasons for the community in using takaful products. Based on the research’s results, Iranian insurers can attain a good image to their consumers by producing a proper product that will give a good experience to them.

In recent decades, the Islamic financial services industry has grown significantly. With the increasing development of the Islamic financial system, takaful products have also experienced extensive growth and changes. In order to further promote this type of insurance, it is important to identify the key factors on demand and also evaluate their importance. In Iran’s insurance industry, insurers have recently entered this field. Therefore, the results of this research can be useful for policymakers and takaful operators in formulating appropriate strategies to increase demand for takaful insurance. In this regard, in this research, the general aspects of takaful insurance are first explained. Then, the indicators affecting demand were identified using library studies and a review of written documents, and these indicators were categorized into five economic, social, and demographic sectors, marketing and sales, as well as product characteristics. Then, using a field study and distributing a questionnaire among the experts in the research field, the level of importance of the indicators was analyzed relative to each other and the indicators were ranked according to their importance.

The concept of change agility has been widely discussed in previous studies. However, there is still an opportunity to be reexamined since this concept is still lacking in moral values that should be added from Islamic values. This study aims to introduce the value of Ammar Ma’ruf, which is driven by the spirit of Nafsul Ihtisab in employees related to their ability to respond to the changing process, namely, Nafsul Ihtisab Change Agility. In the current era of disruption and pandemic, the world is changing so fast that it takes a spirit of religiosity and the ability to change in order to survive and be able to keep up with current development.Nafsul Ihtisab Change Agility is the ability to initiate change from within the employees themselves and be willing to spread the spirit of change to other employees by helping each other so that they can change for the better, sincerely, expecting pleasure of Allah SWT. This new concept is built on the concept of employee agility, the ability of employees to deal with change and coupled with the values of religiosity. This concept has dimensions of proactivity, competency, and moral value (Nafsul Ihtisab). Employees who apply religious values such as Ammar Ma’ruf with the spirit of Nafsul Ihtisab can be a way to occur the better change and ensure no employee is left behind in this change because everyone will help and advise each other just hoping for the pleasure from Allah SWT.

The performance of microenterprises is crucial and a big challenge for mustahiq entrepreneurs. Business continuity is needed because mustahiq entrepreneurs make a living through these activities. But in business development, sometimes mustahiq faces obstacles to making it happen. This study aims to identify and describe the welfare factors of mustahiq. The charting the field method is used to sort articles by topic, discussion, year, and sources used in this study.Meanwhile, data were obtained from literature studies from various sources, including reference journals for 2012–2022. This research produces a conceptual framework regarding mustahiq welfare factors, including internal and external aspects of mustahiq, namely, productive zakat, Islamic entrepreneurial motivation, competence, and the success of sharia maqasid businesses. This study enriches previous limited studies on the welfare of mustahiq entrepreneurs following maqasid sharia and contributing to mustahiq entrepreneurs, poverty alleviation, and good zakat management.

According to the Islamic Boarding Schools Database, in 2022, Indonesia had 31,385 Islamic boarding schools, with a total of 4.29 million students, of which 44.2% have economic potential. Islamic boarding schools encourage students to have an entrepreneurial mindset to help the nation’s economy grow. Hence, it can be claimed that they have pioneered the economic development of the people, especially in Indonesia. Islamic boarding schools economies are developed by various economic activities, including suppliers, producers, distributors, and customers. Many Islamic boarding schools manufacture goods like food and sell them to others. This demonstrates the developed presence of a network or relationship among Islamic boarding schools has the potential to lead to economic development. But many other types of barriers hamper its empowerment and economic development, such as the sub-optimal management of economic management. One of the main strategies is the implementation of a halal value chain ecosystem in the Islamic boarding school’s business unit. Therefore, this study aims to conceptualize the optimization of the halal value chain that can offer solutions to strengthen the economy of Islamic boarding schools in Indonesia. This study is based on a library and uses a descriptive methodology to gather data on literacy, which is subsequently subjected to content analysis or other scientific analysis. The findings of this study provide an acceptable empowerment model for Islamic boarding schools that is also in line with the halal value chain cycle, which is anticipated to best support their economic empowerment.

Indonesia needs to address the issue of widening infrastructure gaps by investing IDR 6445 trillion in infrastructure development until 2024. The investments, however, cannot be funded solely from the government budget as it can only cover 37 percent of the required amount. The concept of public–private partnership (PPP) has the potential to fulfill the requirements of the remaining 63 percent of the funding gap of infrastructure investment in Indonesia. Islamic finance has the potential to support the PPP projects as the alternative financing source to meet this objective. Islamic finance focuses on the risk allocation through distribution into the best possible parties in the transaction that is also in line with the concept of PPP. Despite the increasing efforts to mobilize Islamic finance for financing PPP projects, so far there have been no projects funded under Islamic finance instruments in the existing PPP projects that have reached “Financial Close” with total investment of US$67.27 billion. This study aims to develop a conceptual framework based on the cycle of the PPP process using the institutional theory and value chain theory. The institutional theory is important to regulate the PPP arrangement from being an innovation to procure infrastructure asset outside the government budget. PPP projects present a contractual term of long-term concession agreement, and the applied PPP concept comprises the causal processes from inputs, related activities, outputs, and outcome as defined under value chain theory. The primary purpose of conceptual framework is to explore the status and challenges of Islamic finance mobilization in PPP infrastructure projects in Indonesia. The framework also assists the study in exploring the feedbacks from the relevant stakeholders and formulating way forward. The study is expected to contribute to proposing the applicable policy and framework recommendation, strategy, and incentives to mobilize proper Islamic finance resources for the development of PPP project in Indonesia.

COVID-19 has been declared a pandemic by the World Health Organization since the year 2020 and has become a global issue in the health and economic sectors. The pandemic has affected millions of people worldwide by reducing health rates and financial well-being. This has also led to mental health problems. This research aims to observe and compare the COVID-19 coverages offered by general takaful operators in Malaysia. This research adopts a qualitative approach where secondary data is collected through the websites and documentation of the sample of three general takaful operators. Later, a comparative analysis is conducted to compare the COVID-19 coverage offered by the operators. The analysis found that various coverages of COVID-19 have been offered by general takaful operators. The general takaful operator that has offered more initiatives to help COVID-19 victims was Etiqa General Takaful Berhad in TripCare 360 Takaful (six coverages), followed by Zurich General Takaful Malaysia Berhad in Z-CoVac Protect Takaful (two coverages). The coverage varied from medical expenses to COVID-19 post-vaccination inconvenience or death. The findings from this research reveal that each operator has put effort into giving the best COVID-19 coverage for their customers. This research is significant to the academic literature as well as industry players in their effort to provide the best coverage against the pandemic through product innovation in order to fulfill society’s needs and remain reliable in the industry.

The purpose of an Indonesian Islamic bank is to provide the community with financial services based on sharia law. Currently, the Bank Sharia Indonesia (BSI) is the largest Islamic bank in Indonesia. The BSI branch office closest to the city center is BSI Cirebon. The existence of BSI is expected to be able to provide satisfactory service to its customers. BSI is the result of a merger of three state-owned Islamic banks, namely, BSM, BNIS, and BRIS. Customers perceived various changes following the merger; thus, this study was driven by the level of loyalty of customers who had transferred their accounts to BSI. This research was conducted to examine whether Islamic branding and customer satisfaction had an effect on customer loyalty at BSI Cirebon. This study used quantitative methods with a sample size of 100 respondents. Sampling used the solving technique with purposive sampling method. The data analysis techniques used in this study include the research instrument test, classical assumption test, hypothesis testing, path analysis, and the coefficient of determination test. According to the partial t-test calculation, Islamic branding has a positive and substantial effect on consumer loyalty. Customer satisfaction is positively influenced by Islamic branding. Customer satisfaction has a big and beneficial impact on customer loyalty. Islamic branding has a positive and considerable impact on customer loyalty, which is mediated through BSI Cirebon customers’ satisfaction. Based on the calculation of the f-test (simultaneously) customer satisfaction and Islamic branding on customer loyalty has an f-count greater than f-table (21,820 > 3.94) and a significance value of 0.000 < 0.05. This means that Islamic branding and customer satisfaction variables affect customer loyalty together.

Islamic microfinance (IsMF) is an interest-free, often noncollateral financing arrangement for providing small loans to the poor and underprivileged. Through IsMF, the poor are able to access financial resources and it becomes possible for them to improve their economic and social well-being. While there can be various models of IsMF, in essence, the process involves offering financial and technical assistance to the poor and nurturing empathy and philanthropy by following the principles of Islamic Shariah. However, it has been found that the implementation of IsMF programs in Bangladesh is still at a nascent stage, though it is a Muslim-majority country with approximately 90% Muslims. Generally, financial inclusion is a major issue in Bangladesh as more than 45% of adults in the country are out of formal financial services. Furthermore, the financial inclusion rate for women is only 26%. As a consequence, the poor are suffering from hardcore poverty and are unable to meet basic financial needs. This study aims to identify the reasons for the low financial inclusion rate in Bangladesh. It will also highlight the effective ways to enhance financial inclusion through IsMF in Bangladesh. A systematic literature review approach has been adopted in this study, and for this purpose, 22 peer-reviewed articles published in the last 5 years have been collected and analyzed to acquire the necessary information. It is expected that the findings of this study will be useful for the financial institutions, civil society organizations, and the government of Bangladesh to take effective measures to adopt IsMF programs for improving the financial inclusion rate and ensuring the welfare of the marginalized people in this country.

This chapter aims to examine and evaluate new challenges of personal data protection in the financial system as a result of the application of artificial intelligence in metaverse. This evaluation is critical since this advanced technology is yet to be regulated by the relevant financial authorities. Nowadays, there are already a number of issues relating to personal data protection in the financial system that needed comprehensive resolutions. In this research, qualitative and normative legal research methods are referred to and used. Additionally, content analysis from literature review and descriptive analysis are utilized in the course of finding relevant data. From this research, it is discovered that there is the possibility that the application of metaverse and artificial intelligence may decrease the level of privacy and protection of personal data of users. At the same time, they can cause substantial impact and influence for a long-term economic sustainability, especially within the financial system. Furthermore, there are no available laws and policy that are in place to regulate matters of privacy and personal data protection when it comes to the application of artificial intelligence as well as in the metaverse. This research also highlights the legal approaches that are taken by the European Union Commission (EU) in dealing with the application of artificial intelligence.

The continuous advancement of financial technologies in the realm of Islamic banking and finance is influenced by the spread of banking digitalization. The digitalization of banking is undeniably related to the expansion and dependency on the use of the Internet among the customers. Instead of depending on physical location, Islamic banks nowadays have ample chances to engage and communicate with their customers through this current online banking platforms. In order to ensure their consistent follow-up with the latest digital transformation, Islamic banks must be ready to adopt the new technology, ready to shift their costs of services to the online applications, and reconsider their corporate structures. Focusing on the application of mobile banking as a prominent part of banking digitalization among Malaysian Islamic banks, it is important to consider their customers’ concerns relating to its usages. Thus, this research focuses (1) on explaining the understanding of what is considered as a mobile banking and its usages among Malaysian Islamic banks and (2) evaluating the concerns among Islamic banks’ customers relating to the use of mobile banking in their daily activities. In doing this research, the researchers apply the qualitative research approaches and content analysis of obtained data from library-based research. As part of the findings, it is identified that the customers’ concerns are related to their awareness, knowledge of using the mobile banking, trust toward the safety of their personal information or transactions, and the security of the mobile banking system.

Inclusivity in access to finance is a global concern and a key enabler of the prime Sustainable Development Goals (SDGs). This study focuses on appraising Islamic equity financing as an essential vehicle for a deepened and effective financial inclusion in Nigeria. The study relies on primary and secondary data sourced from surveys, interviews, official publications, working papers, articles, e-books, websites, and online resources in furtherance of its objectives. Through the adoption of qualitative analysis, content analysis is used to define the status of financial inclusion in Nigeria. This study finds that the value proposition of Islamic equity financing aligns with the objectives of the Nigerian authorities to engender financial inclusion and that the challenges debarring the adoption of Islamic equity financing as a financial inclusion enabler were already being mitigated. Consequently, the study recommends that Islamic Banks in Nigeria increase their product class allocations for Islamic equity financing contracts in their financial asset creation. Further, the Central Bank of Nigeria (CBN), being the key regulator of Nigeria’s financial industry, is enjoined to evolve strategies that will see to the expansion of the country’s financial inclusion drive through Islamic equity financing and contracts.

Somalia has experienced some stability and peace following a civil war that lasted for 20 years, but the economic situation is still difficult, and the nation is still susceptible to environmental, political, and economic shocks. Since GDP per capita is equivalent to $435, Somalia remains below the $1750 rate in sub-Saharan Africa. 37% of the population live in poverty, where 80% live in rural areas and 43% live on only one dollar a day. Somalis are renowned to be very entrepreneurial people despite the fact that less than 5% of the need for micro- and microenterprise finance is currently being met in Somalia, according to market research. There are over 2 million possible projects and hundreds of millions of dollars in funding needed to meet the magnitude of unmet demand. The research aims to reveal the realities of financial inclusion in the Republic of Somalia and monitor the most significant transformations after political stability. The research adopts the analytical descriptive approach to the study of literature and the quantitative approach to the analysis of secondary data relevant to the size of the use of financing tools and bank cards.

Microfinance is an important tool in promoting financial inclusion, which has attracted global attention. More countries are offering microfinance with the support of the government, specialized organizations, and financial institutions. Microfinance is regarded as a means to promote inclusive growth. Therefore, this study analyzes the issues, challenges, and way forward of Islamic microfinance. The study employs a qualitative research method by reviewing the selected literature using content analysis. Islamic microfinance has proved to be more effective in reducing poverty and improving socioeconomic conditions. Although it takes a considerable number of resources and funds and many years to convert and adapt conventional microfinance to Islamic microfinance, it has a significant role to play in a Muslim-majority country to promote growth and prosperity among the poor. The study may significantly contribute toward the sustainable and socially impactful growth of the Islamic microfinance, especially in achieving the maqasid Shariah and Sustainable Development Goals (SDGs). The originality of this study may contribute to the formation of a new body of knowledge and enrich the literature sources in the field of Islamic microfinance that will benefit both academicians and practitioners.

Financial literacy is an important national issue and has become the main focus in many countries. Various reports have confirmed that a huge number of the world’s population is lacking knowledge of finance. The increasing number of people with a low level of financial literacy reflects the effectiveness of their educational institution and impacts the well-being of the national economy in the country. Thus, this study explores the role of financial behavior, financial stress, and financial well-being in Islamic financial literacy. The study employs a qualitative research method by reviewing the selected literature using content analysis. Financial behavior, financial stress, and financial well-being are good predictors to determine the level of Islamic financial literacy. The study suggests that the regulator and education institutions should provide more relevant projects and programs to improve the knowledge and understanding of Islamic financial literacy, especially among youth, to reflect on good financial behavior and financial well-being according to Islamic principles.

Microfinance has proven that it is an effective tool for poverty reduction and socioeconomic development. Yet, the impact of microfinance on the recipients is still questioned and varies from one institution to others. This research analyzes the impact of Islamic microfinance on asnaf. The study employs a qualitative research method by using primary data collection. The input for the study is obtained from the semi-structured interview with the representatives of State Islamic Religious Councils (SIRCs) and Islamic financial institutions. The originality of this study may contribute to the formation of a new body of knowledge and enrich the literature sources in the field of Islamic microfinance that will benefit both academicians and practitioners. This impact study on performance and measurement may significantly contribute toward the sustainable and socially impactful growth of the Islamic finance industry, especially in achieving the maqasid Shariah and value-based intermediation (VBI) goals.

The objective of this chapter is to redesign the Indonesian pension fund’s business model, management system, and new strategies to balance adequate profits, affordability, and sustainable programs. Consider the Malaysian pension system and adapt the INTERDAP application used by PT. Angkasa Pura II. Through this qualitative case study, we applied the foundations of the Triangle Sharia Justice Ecosystem (TSJE); Sharia, digitized the system, and supported green investment in the long run. By modeling the business strategy, facilitating the business model and supplier relationship management, and creating mutually beneficial management among stakeholders, the study found that Malaysia’s pension system has an investment purpose. Indonesia, on the other hand, provides pension loans only based on previously agreed cumulative contributions. Malaysia encourages people across the country to save on severance funds. The pension system is still managed conventionally. Malaysia requires a pension contribution of 23% of the employee’s base salary, while Indonesia requires only 3%. This will affect the contribution of pension funds to the GDP. Malaysia’s pension fund accounts for 60% of GDP. Besides, Indonesia is at only 6.03%. Another view is, to become a developed country, pension funds need to reach 60% of GDP by 2045 because 42% of the total supply of funds in the infrastructure sector comes from pension funds. The practical implications of this study are access to information, security, and transparency in the management of pension funds through a digital system supervised by the Sharia Regulator (BPS) and the Indonesian government’s efforts to realize that supports the green economy. This study integrates the foundations of the TSJE about pension funds management. The limitation of the research study is that more detailed studies and methods are needed to analyze this study. It is expected that this TSJE system will be applied further.

This research aims to analyze the effect of murabahah, mudharabah, and musyarakah financing on nonperforming financing (NPF). It examined the effect of financing distribution on NPF based on the quarterly data from BSI from 2015 to 2022 and used the error correction model (ECM) analysis. The results showed that in the long term, the distribution of murabahah, mudharabah, and musyarakah financing did not affect NPF. Meanwhile, in the short term, only murabahah and musyarakah financing affected NPF with a significance level of 0.05 and 0.03, respectively. The results can be a significant indicator of adequate steps for BSI in taking a financing distribution policy to prevent financing risk. This research only focuses on murabahah, mudharabah, and musyarakah financing which are widely used by society as affecting factors on NPF.

The purpose of this paper is to assess the current practices of al-Rahn (mortgage) by real estate agencies (REAs) in Afghanistan. The local Islamic scholars’ and Muftis’ perspectives are not clear about the current practice of al-Rahn. Some of them justified the current practice based on the concept of Bai al-Wafā, while the others are of the view that the present practice is an interest-based contract. Afghanistan is an Islamic country located in the heart of south-central Asia and has more than 39 million people, 99% of which are Muslims. Al-Rahn still continues in its traditional and classic form in Afghanistan where there are some Sharīʿah and legal issues remain in its current application. Hence, this study will investigate the Sharīʿah and legal issues existing in the current structure of al-Rahn in the country. The study will pursue a qualitative library-based approach to explore the current practices of al-Rahn by REAs. The secondary data from a variety of sources, including the Afghan Civil Code and other related laws, case studies, theses, related articles, and current literature, will be chosen for this purpose. For data interpretation, the narrative analysis method will be used. The findings of this research will help the REAs and contracting parties to understand the legal and Sharīʿah issues related to the al-Rahn contract. It will also help the related regulatory authority to take action to ensure that the practices of al-Rahn comply with Sharīʿah principles, not only to meet up the expectation of the public but also as legally required by the legislation of the country.

Since Bank Negara Malaysia (BNM) issued its Discussion Paper on Microinsurance and Microtakaful in 2016, the takaful industry saw the production of various microtakaful products by the industry. Collaborations with the government agencies were also established signifying the industry’s intention to include the B40 community into the financial system through subsidized microtakaful participation. These initiatives, however, have not been able to tap the targeted segment given the low penetration rate among the B40. This study uncovered several challenges arising from the lack of harmonization and proper coordination among the takaful operators and the government agencies. Lack of data management of the B40 and improper product distribution have also made it difficult for the targeted segment to participate in these products. The findings also revealed the various challenges faced by the microtakaful initiatives when political instability causes frequent change in public policies, specifically on the benefits allocated for the B40. This paper opens up opportunities for further research to be conducted on how a microtakaful model may collate the various initiatives of the takaful operators and government agencies under one roof. It also triggers the need to further exemplify how Islamic social finance instruments may assist in providing microtakaful coverage to the B40.

The Covid-19 pandemic has affected the financing infrastructural development particularly in the Global South (GS). Amid the pandemic, Nigeria has found sukuk financing as an alternative source for financing some of its infrastructural development. This article aims at investigating why sukuk offers a significant alternative source of financing infrastructural development in Nigeria. The article argues that the lack of availability of conventional sources of financing development, economic downturn caused by Covid-19, the potential investment return, the sukuk structure, and sukuk successes in other economies all contribute to the sukuk thriving as an important alternative source of financing infrastructural development in Nigeria.

Islamic microfinance services and products are not new topics that help in financial inclusion. Low-income groups benefit the most from the services and products to maintain their activities or business to generate an income. The business can be in various forms such as sales, food, and beverages or the agricultural and fisheries sector. However, even with the services and products of Islamic microfinance, it is found that there is an exclusion for the rural areas in the financial system. Therefore, this study narrows down its research to a subdistrict of Raub named Ulu Dong in Pahang to identify the factors of exclusion of the rural farmers in the areas. With qualitative methodology through library research and interview, this research concludes their findings at the end. The result of this study shows that there are several issues and challenges that hampered rural farmers in Ulu Dong, Raub, Pahang, to take into serious consideration.

With the recent surge in interest in Islamic banking and finance, the subject of Islamic financial literacy has taken on new significance. With the growth and development of Islamic financial products, it is possible to choose the right ones and make the right decisions about Islamic financial products by acquiring Islamic financial literacy. The objective of this study is to propose a conceptual framework for the roles of Islamic financial literacy in financial decision-making among working adults in Malaysia. This study will employ the theory of planned behavior, social cognitive theory, and Islamic financial literacy to test their influence as independent variables on financial decision-making in choosing Islamic financial products. Nonetheless, there is a lack of literature available to show the connection between the theory of planned behavior, social cognitive theory, and the roles of Islamic financial literacy in financial decision-making. This study’s originality may contribute to the construction of a new body of knowledge and expand the literature sources on the subject of a conceptual framework, which will be beneficial to academics and practitioners alike.

Cash waqf, derived from Waqf, an old and traditional way of charity or philanthropic works promulgated by Islamic law and the Islamic way of life, has attracted Islamic financial institutions, especially Islamic banks, to increase their deposits as well as to do philanthropy through banking systems. Bangladesh’s Islamic banks have maintained mudaraba cash waqf deposit accounts since 1997. There has yet to be found a study about the performance of Islamic banks in mobilizing cash waqf deposits. This chapter aims to look at the cash waqf deposit account maintenance in Islamic banks in Bangladesh and evaluate their performance in maintaining such cash waqf deposit accounts. Depositors and top executives from six major Islamic banks will be interviewed for the study. This study will also examine annual reports of the related Islamic banks and other waqf fund management-related reports. Besides, textual information will be collected and analyzed from secondary sources like earlier literature, laws, and principles. The study’s findings will show whether there is any gap in the performance of those banks in mobilizing cash waqf deposits and further popularizing cash waqf in the banking system to help contribute much more to the socioeconomic development of COVID-19-affected segments of Bangladesh.

The era of digitalization and technology brings tremendous changes in most industries including e-hailing services. E-Hailing services receive a lot of attention as it helps people to commute from one place to another comfortably, with more flexibility, convenience, less cost and quicker compared to traditional public transport. E-Hailing offers public transportation services through an electronic application. This medium allows e-hailing drivers to meet passengers and provide transportation services and also spend more time on the road. Eventually, e-hailing drives expose themselves to higher motor-related risks such as road accidents, attacks by robberies, threats or even hijacking. Hence, each e-hailing driver is urged to have an adequate takaful plan to be protected from any unfortunate events. Looking at the need to have a takaful plan for e-hailing service, this chapter aims to compare functional private motor vehicle takaful plans offered by existing takaful operators and suggests improvements on it. Comparative analysis was made to see any similarities and differences between the available private motor takaful in the market. The researcher believes this study enables e-hailing drivers to have wider options and sufficient coverage offered by takaful operators while driving and the results of the present research add value to the existing knowledge base.

The purpose of this study is to determine the effect of the Religiosity, Hardworking on performance of Islamic microfinance or Baitul Maal wat Tamwil (BMT), Indonesia. BMT is a microfinance institution that operates based on sharia principles and is a legal entity. We distributed questionnaires to 52 employee respondents at BMT Ummat Sejahtera Abadi. The sampling technique used in this study is saturated sampling techniques and the test using path analysis. The results of this study indicate that religiosity and hard work will improve the performance of BMT human resources. Religiosity is the level of faith, understanding, and obedience in religion, understanding in a person in living or practicing the teachings of the religion he believes in, while hard work is interpreted as an effort to move and get maximum results at work. These two things are indicated to improve the performance of BMT human resources.

The micro-, small, and medium enterprise (MSME) sector is the largest economic support sector in Indonesia, but along with the development of the times, there are still many problems that occur and have not been resolved, one of which is the low business success of MSMEs. This study aims to offer a conceptual framework for the effect of using accounting information and business capital management on business success. This study uses a quantitative approach with research data in the form of primary data through a questionnaire. The population in this study is owners or managers of micro-, small, and medium enterprises (MSMEs) in Central Java. The sampling technique used is nonrandom sampling with the purposive sampling method. The data analysis technique in this study used multiple linear regression analysis. Several factors that influence business success proposed in this conceptual article are the use of accounting information and business capital management.

This article explains the concept of good communication in carrying out OTM (outbound management training) activities. This activity is carried out not only by individuals but also by one team. In a team, each individual must work together with other individuals. Cooperation between individuals and other individuals in a team requires communication. Communication that is suitable for building interaction between people is Islamic. Islamic communication is excellent if used in this activity because in it, there is communication with good and polite words for anyone who is communicated with. Each individual must be able to communicate well. This good communication can be done by applying Islamic communication in it. The teaching of communication in Islam already existed in the time of the Messenger of Allah. This teaching is also suitable for everyone, especially the students, to learn it. Good communication will have a good impact as well. The impact of communicating with Islam is very diverse in its forms, ranging from the many good words that appear when talking to others to words spoken that contain excellent rewards. Many things are still significant in carrying out outbound management training activities, starting from working on all tasks in training and development in this activity, both individuals and teams. The results that can be taken if we use good communication in OTM are very beneficial for companies and other parties, especially in daily life in the world of work.

Over the years, the number of Malaysian prisoners continues to rise, resulting in overcrowding at prisons and further exposing the prisoners to various health and mental issues. Currently, it is the sole responsibility of the government to absorb the costs of maintaining the prisons, including maintenance and operating costs related to prisoners, currently estimated at around RM511 million. However, from the economic perspective, prison comprises abundant human capital resources, operating in restricted environments with high-level security measures. These resources have remained idle and are not being fully utilized for the generation of economic activities. Harnessing the full potential of the labor resources available in prisons will bring significant impact on the country’s economy in terms of cost reduction and increment in goods and service production. In this regard, the Islamic financial institutions (IFIs) have a potential role to play in addressing these issues, with the possibility that the IFIs provide financial resources and strengthen engagement with the prison department through innovative financing models towards the financial sustainability of the prisons. This study intends to conceptualize the role of IFIs in contributing towards developing the potentiality of prisoners as a productive economic resource and preparing them with financial independence upon their release from prison.

The growth of the Islamic banking system has been enhanced by the introduction of Islamic financial innovations. Ijārah ending with ownership is one of the innovative products used by Islamic financial institutions to finance a variety of assets, including consumer products, commercial property, and vehicles. In Sri Lanka, it is predominantly used for vehicle financing, with 80% of the ijārah facilities granted for vehicle financing. Of 29 Islamic financial institutions, 13 institutions offer ijārah facilities for vehicle financing. Since the demand for ijārah is high among individual and corporate customers, it has grown in popularity in the Islamic financial industry. Notwithstanding its long presence and popularity, it remains undeveloped and has not reached its full potential. In addition to that, the current practices of ijārah for vehicle financing in Sri Lanka have been the subject of an intense debate on whether the operation of ijārah fully complies with Sharī ̒ah requirements. Therefore, this study aims to examine the current practices of ijārah for vehicle financing and its regulation from a practitioner’s perspective and identify the gap between theory and practices. Three leading institutions have been selected as a case study among three types of financial institutions, namely, Amana bank as an Islamic bank, Annoor as an Islamic window, and Al-Falah as a leasing company. The qualitative method is used for this study. The primary and secondary data were collected through interviews, annual reports, and magazines, as well as from recent publications. The study reveals the application of ijārah for vehicle financing remains relatively undeveloped, and efforts should be strengthened to provide a better and more legitimately structured application of ijārah for vehicle financing in Islamic financial institutions in Sri Lanka.

While the ideal case is that micro entrepreneurs should gain easy access to finance as they require more financial supports, traditional financial institutions often reject their financing applications due to the high risk associated with this segment. Thus, an alternative channel to enable micro entrepreneurs to gain access to financing is urgently needed. This study aims to explore the potential application of Islamic FinTech to expand financing outreach in zakat institutions. In achieving its objectives, this study examines the current state of microfinancing which includes the market size and players, existing financing schemes available, current issues and challenges facing microfinancing providers and potential FinTech applications that can be adopted by the microfinancing industry, particularly the zakat institutions. A critical analysis of the market is important as a starting point in comprehending Asnaf micro entrepreneurs who are facing this financial difficulty. It is believed that zakat institutions can play an effective role in enhancing access to finance for the underserved. This study is only limited to the Malaysian context but can be further extended in more comprehensive empirical research. The findings will assist zakat institutions in formulating their FinTech financing strategy and provide an alternative approach to improve micro entrepreneurs’ access to finance as well as their repayment capability.

The new normal era brings a positive effect on the business world, especially MSMEs that are taking advantage of digital information technology development. An appropriate application of digital information technology can be used as a supporting factor for business sustainability. Digitalpreneurship is an entrepreneurship transformation that can take advantage of digitalization, including the use and development of information technology. Many factors can support optimizing the application of digitalpreneurship, namely, digital skills and platform selection strategies. MSMEs’ readiness to become digital entrepreneurs starts from readiness in digital skills and platform selection strategies. Adequate digital skills and accuracy in platform selection strategy support the success of MSMEs in digitalpreneurship. This research developed conceptual definitions and indicators of digital skill and platform strategy variables that affect the optimization of digitalpreneurship. The future research agenda will explain and aim at how to prove the validity of a research proposal.

Gender lens investing (GLI) has garnered increasing global attention in recent years. Gender lens investing falls under the gender equality targets contained in Sustainable Development Goals (SDGs) by 2030. Gender fens investing is an investment strategy that integrates gender analysis into investment analysis of sharia investment decision-making (SIDM) and behavior. Fear of missing out (FOMO) is an investment strategy that integrates analysis of investor behavior in decision-making and investment behavior based on trends and joining friends. Meanwhile, Islamic financial literacy (IFL) is an individual’s understanding of fund management, contracts in Islamic finance, and investment. This study aims to determine and measure the effect of GLI, FOMO, and ILF on SIDM. The research data is primary data (questionnaire) with a total sample of 128 respondents who are Islamic capital market investors. The method used is a quantitative method, with the help of the SPSS application in processing data. The results show that there is an influence between FOMO and IFL on sharia SIDM. Meanwhile, GLI has no effect on sharia SIDM.

Malaysian Islamic banks have been paying, reporting, and distributing their business zakat, albeit not all banks are doing so. This information can be found in their financial statements. This study intends to cover both reporting and distributing practices of those banks. Focusing on all 16 Islamic banks in Malaysia, this study was conducted using content analysis and semi-structured interviews. With the help of financial statements and annual reports, content analysis was employed. Then, officers dealing with the zakat fund were interviewed to gather their insights on how banks report and distribute the zakat. This study anticipates information that are not published in the financial statements and annual reports of the banks particularly on zakat distribution practices.

The aim of the research is to evaluate the role of zakat in the development of the micro-economy, to provide solutions to overcome the problems facing the Libyan zakat fund by interviewing zakat experts, and thus to promote the development of zakat funds and invest zakat profitably. This paper used the descriptive analytical approach. Moreover, the interviews were conducted to enrich the study with answers that are more focused on the problem of the study, especially since the interview targeted the influential figures in the decision of the Libyan Zakat Fund, and the owners of activities, expertise, and experience in the fields of these jobs. Zakat has development dimensions in the humanitarian, scientific, economic, and health fields if its funds fall within sustainable development plans such as a good loan with its controls and conditions. In addition to building hospitals, it provides appropriate medical equipment and financing scientific research that keeps pace with the times and modern technology.

Islamic banking is an institution engaged in carrying out company performance based on sharia principles. Islamic banking needs to measure financial performance in the post-COVID-19 period. Several ratios can be used to measure financial performance, such as the Islamicity Performance Index and Islamic Social Reporting. The purpose of this research is to investigate the impact of the Islamicity Performance Index and Islamic Social Reporting on Islamic banking in Indonesia post-COVID-19. This type of research is quantitative. The sample used is 14 Islamic Commercial Banks in Indonesia in the period 2019–2021 (post-COVID-19). Panel data regression analysis is the data analysis technique used, and it is processed using the Eviews 12 program. The results of this study indicate that the Islamicity Performance Index and Islamic Social Reporting have a significant effect on financial performance in Islamic Banking in Indonesia post-COVID-19.

Ineffective governance practice in any Islamic financial institutions will lead to the possibility of facing Shariah risk and incident of Shariah risk in their activities and operation. Shariah audit function is one of the components of governance that play a role in ensuring Islamic financial institutions to have a sound and effective internal control system of Shariah compliance. This study aims to examine the effect of institutional theory on Shariah audit practice in Malaysian Takaful industry. Institutional theory in this study describes how the social environment shapes organizational structures and processes. Semi-structured interviews were conducted with the auditors who involved in the shariah audit to get in depth understanding on the process of shariah audit. Data were analyzed by using thematic analysis. In line with Shariah audit practice, an organization’s commitment to effective Shariah compliance could lead from isomorphism due to environmental pressures. The finding discovers that there are impacts of coercive isomorphism, mimetic isomorphism, and normative isomorphism on the current Shariah audit practice. Therefore, the results may be used to find the expectations from the practitioners on enhancing the current practice of Shariah audit.

Islamic economics has a goal to achieve maqhashid sharia through the realization of justice and balance in society. This chapter aims to assist the management of RSI Sultan Agung Semarang in measuring the company’s performance using the Maqhashid Syariah Concordance (MSC). The company’s performance measurement is measured in four main areas, including work plans that are prepared to meet the principles of fairness; fair hospital rates for patients, doctors, and hospitals; recommendations from the sharia committee on policies taken by hospitals; and cooperation with sharia banks.This research design uses descriptive quantitative analysis by analyzing the financial statements of the Sultan Agung Hospital Semarang during 2017 to 2021. The data is calculated using an index according to the Maqhashid Syariah Concordance model. The results of the paper show that the portion of da’wah and social costs shows a very good value, the ratio of complaints to tariffs is still within reasonable limits, the role of the Sharia Committee is in accordance with its function, and the portion of RSI Sultan Agung Semarang cooperation with Islamic banks is larger than conventional banks. The conclusion of this paper is that the financial performance of RSI Sultan Agung Semarang based on the Maqhashid Syariah Concordance approach is good. Suggestions that can be given are to increase cooperation with Islamic banks and reduce cooperation with conventional banks.

Islamic banking experienced a remarkable development and increasingly challenging pace over the past decade. The concept of digital banking channel has been gaining increasing popularity not only in Pakistan but all over the world in recent years due to the nature of these channels for providing faster banking services delivery to a wide range of customers. The study was conducted to investigate the influence of electronic service quality on the satisfaction level of Islamic banks customers within Pakistan. The study also figured out what are the factors customers believe are hurdle in usage of digital channels offered by different banks to their customers. The study made use of a questionnaire, filled from 152 customers of Islamic banks who are using banks digital channels by random sampling. Descriptive statistics, correlation analysis, and multiple regression model were employed to achieve the objectives of the study. The study found that all five electronic service quality dimensions found to have positive and statistically significantly influence on the level of satisfaction of the Islamic banking customers. The results provide Islamic banking industry regulators, central bank, academicians, and practitioners useful guides in their efforts to formulate adequate electron service quality mechanism to attract and retain more customers and to promote digital banking channels.

Financial technology (Fintech) has emerged as a tool that can process payment faster, easier, more efficiently, and safer. This concept encourages understanding Islamic financial inclusion in the present and future. Although it has many benefits and advantages, examining BSI Mobile to sharia principles needs to be discussed further. This qualitative research observes BSI Mobile application launched by Islamic Banks in Indonesia. This study examines the compatibility of BSI Mobile with Maqashid sharia, which is very important to determine whether it is following Islamic law’s objectives. This study adapts the BSI Mobile application integrated with Maqashid sharia concept. This is conducted by reviewing the BSI Mobile and Bank Syariah Indonesia applications used to assess the proposed framework as case relevant. This research is expected to encourage Islamic financial inclusion and noncash transactions developed by the Indonesian government.

In this era of digital transformation, technological advancements enable financial transactions on the M-Banking platform page, specifically, mobile banking for Muslims. The ability to easily and conveniently pay tuition fees using mobile banking is one of the numerous innovations and advantages of the current fintech application for its users. There is no longer a need to wait in long lines, even while paying for education, thanks to technological advancements. However, this finding sought to examine the variables that affected students’ intentions to use mobile banking (M-banking) of two significant Islamic banks in Indonesia, BSI Mobile and Muamalat DIN (Digital Islamic Network). Because of their partnership with Muhammadiyah University, everyone enrolled in this institution of higher learning will benefit. 657 people responded to the research. Smart PLS 3.3.3 is used for the analysis of structural equation models (SEM). The findings indicated that brand image has an impact on consumers’ intentions to utilize mobile banking, but perceived ease of use (PEOU), perceived usefulness (PU), and trust have no such impact. As a result of this study, transactions are made very simple by the advent of sharia m-banking, but there are still technological issues that banks must take into account while providing services through mobile banking applications.

In Islam, the religiosity factor can also be an indicator that can influence the behavior patterns of individuals and society. If someone has high Islamic religiosity, he will behave by religious values. Likewise, in using noncash transactions, someone with high Islamic religiosity will not use noncash transactions for things that are prohibited by religion. The purpose of this study is to conceptualize the role of Islamic religiosity on people’s behavior with a public acceptance approach to payment system technology. The methodology used in this research is qualitative through content analysis. The results of this study reveal that indicators in Islamic religiosities, such as belief, attitude, and practice, can affect cashless behavior. This can be interpreted that the higher a person’s religiosity level, the more he will choose to use noncash transactions because it is more effective and efficient to provide mashlahah for its users. Therefore Islamic religiosity can directly influence the behavior of the Muslim community in using cashless.

Financial reporting is a formal recording of transaction and activities of a financial entity. The demand for standards in financial reporting started way back before introducing the Malaysian Accounting Standards Board (MASB). A comparative analysis of the presentation and disclosure of Islamic banks’ financial statement based on IFRS and AAOIFI financial accounting standard (FAS) is essential in explaining Islamic banks’ reporting and compliance. Therefore, this study was conducted to compare the two accounting standards and their effectiveness in different Islamic banks. A critical literature review showed the origin and different opinions of several studies about IFRS and AAOIFI FAS. This study adopts semi-structured interview which has been conducted with industry practitioners and academicians to investigate the underlying issues in general on the different reporting based on the two standards, particularly on the reporting and disclosure of the profit-sharing investment accounts. The results show that IFRS focuses on reporting the economic substance of transactions, while the AAOIFI focuses on ensuring the IFIs regulations adhere to Shariah laws. The AAOIFI has been unwelcoming to two concepts in the IFRS, the time value of money and substance over form.

This study discusses Indonesia’s South-South Cooperation (SSC) in encouraging the development of Islamic Economics in Sudan through technical cooperation between the two countries. The method used in this research is descriptive qualitative with a systematic literature review. The results of the study show that SSC Indonesia’s policy in promoting sharia economic development in Sudan is positive. The results of the study prove that the impact of implementing Indonesia’s SSC policy in Sudan can encourage economic growth in Sudan, providing convenience in managing business among small and medium enterprises (SMEs). This study provides evidence to support economic growth among developing countries and must use other successful developing country economic methods or strategies because the business or economic structure of society tends to be the same. The problems faced by Indonesia tend to be the same as those of Sudan, so the sharia economic development program is attractive to be implemented in Sudan because the sharia economic strategy is considered successful in several economic sectors in Indonesia. Indonesia’s development strategy as a fellow developing country is more acceptable in Sudan than the economic development strategy of developed countries which sometimes fails to be implemented due to the already high standard of economic strategy. Standards of economic development through developed country banks require complicated capital lending standards and have big consequences.

The purpose of this study was to promote and introduce the significance and potential role of the fundamental principles and concepts of Islamic banking and finance services to the people of the Bangsamoro Autonomous Region in Muslim Mindanao in order to enhance their understanding of utilizing Islamic banking and finance services. This study employed a quantitative research approach, and the findings were based on data collected using a 12-page structured questionnaire. There were 500 questionnaires issued, and a total of 436 were returned with responses. In addition weighted mean and frequency and percentage distributions were used to evaluate and analyze the obtained data. As a result, the majority of respondents strongly agreed that Islamic banking and finance services are advantageous for individuals of all religions and beliefs. Islamic banking and finance services assist in resolving economic backwardness, attracting additional aid and finances for economic progress, attracting and promoting productive investment, and contributing to economic growth and attracting constructive investment. According to the study, the government of the Bangsamoro Autonomous Region in Muslim Mindanao should organize an annual conference with the participation of various sectors and the collaboration of select ASEAN universities and banks with expertise in Islamic banking and finance services in order to increase the Bangsamoro people’s knowledge of existing Islamic banking and finance services.

This study examines the effect of environmental, social, and governance (ESG) practices on firm risk in Malaysia. Prior research has primarily focused on countries with more developed ESG awareness, and minimal studies have investigated the interaction between ESG and Shariah-compliant firms. Therefore, these two combined effects are mostly unknown and worth researching. This paper aims to fill this gap by assessing whether Shariah-compliant firms can obtain a more significant risk-mitigating impact for greater ESG scores for nonfinancial firms. This study employed a panel data analysis base on a sample of listed firms from 2008 to 2021. This study finds a significant positive relationship between ESG performance and systematic risk in all samples and non-Shariah-compliant sample firms. This implies that ESG activities are not viewed as a value driver affecting the firm’s systematic risk in Malaysian firms but rather a resource that could be better allocated to other value-added activities. Based on the findings, we argue that listed firms in Malaysia (both Shariah and non-Shariah compliant) still lack sufficient investment in ESG activities. The lack of association between ESG scores and firm risk indicates that higher ESG performances do not reduce a firm’s risk in Malaysia. We recommend that they improve their overall ESG scores and increase their awareness of the future benefits that ESG activities may offer.

Muhammadiyah is an Islamic organization that is very well known in Indonesia because its usefulness has a massive impact on society. The Central Board Council of Muhammadiyah 2010–2015 on Muhammadiyah organization has since engaged in charitable efforts, particularly in education, health, public welfare, economics, and preaching (da’wah) from waqf properties, including waqf land. Majelis Wakaf dan Kehartabendaan establishes an asset management division as Muhammadiyah’s function to administer waqf and the organization’s assets in a professional, transparent, accountable, and productive manner to provide the community with social benefits. Our research investigates the prospects and challenges of waqf management in the Muhammadiyah organization. This research uses observation and interviews to examine the waqf challenges and prospects in the Muhammadiyah organization. Lastly, this paper highlights that the Muhammadiyah waqf organization has high public trust. The dilemma of effective coordination and integration between centralized and decentralized administration is also a fundamental challenge of waqf management in Muhammadiyah.

Indonesia is a country with the largest Muslim population in the world, and this supports Indonesia to have a high potential for waqf, especially from the potential for cash waqf. However, the implementation of the understanding of cash waqf in the community is limited and is still fixated on traditional waqf which causes the collection of waqf to be low. BWI reports that the ability for waqf in Indonesia is around Rp. 180 trillion per year, while the calculation of the realization of waqf in 2020 only reached Rp. 397 billion. In addition, survey data related to the literacy level of cash waqf reviewed by the Fiscal Policy Agency, Ministry of Finance of the Republic of Indonesia, stated that the cash waqf literacy index data reached 0.475 which was included in the poor or low category. This phenomenon requires a strategy to increase the level of waqf literacy in the community, particularly in cash waqf literacy. So, the existence of cash waqf can help to empower the national economy. Therefore, increasing public literacy on cash waqf must be realized. The aim of the research was to decide the extent of the influence of literacy on optimizing the collection of cash waqf in the community. This research is a qualitative research through content analysis, by digging up information and data through scientific journals and sources from technology media. The analytical method used is data collection, data reduction, data presentation, and drawing conclusion. Based on review of several previous studies, the results showed that collection of cash waqf will be collected properly if the community’s understanding related to cash waqf is good. The study suggests that Badan Wakaf Indonesia (BWI) and other waqf institutions should be more concerned with increasing of cash waqf literacy particularly through information technology media in order to increase cash waqf collection in Indonesia.

Financial technology has emerged as one of the main factors that changed the way the financial and banking industry works, and its use has been enhanced in the financial industry around the world, stemming from the increasing spread of innovative banking services that are characterized by high efficiency and low costs. Particularly for the sizable portion of society that does not interact with the banking system, financial technology has the potential to transform the structure of financial services and make them faster, less expensive, and safer. The hypothesis model is based on technology acceptance model (TAM). The methodology in this study includes data collection through questionnaires distributed to the users of financial technology, and the sample included the users and nonusers of mobile financial services. Structural equation modeling is utilized for data analysis procedures when using survey data gathered from 300 customers who have access to financial technology services in Algerian Islamic banks. The objective of this study is to determine the factors (including perceived usefulness, perceived ease of use, perceived risk, trust, convenience, and social image) influencing user intention to use financial technology services in Algerian Islamic banks. The implications of this research help to determine the right strategy to know the customers’ perceptions and the factors influencing their choice of using mobile banking services. This study can be extended to future studies that include Islamic banks and conventional banks in Algeria. The study is under progress.

Warehouse logistics plays an increasingly important role in the activities of enterprises and modern society in general. Warehouses are used both by manufacturing enterprises to store raw materials, materials and products ready for shipment, and by trading companies that store finished products there. The optimality of the work of industrial enterprises, the speed of turnover in trading companies, as well as the level of customer satisfaction depend on the efficiency of warehouse management. To organize an effective business, you need to be able to properly manage resources, flows, and means. The main element of warehouse logistics is a warehouse; the purpose of which in modern conditions is no longer the storage of goods; and it is transformed into a transhipment point for the provision of modern services of cross-docking, assembly, consolidation, sorting, labeling of goods in order to minimize the costs of transportation and storage of goods, and reducing delivery time. This chapter analyzes modern warehouse logistics management mechanisms and examines its main types. It was determined that the growth of the consumer society and the rapid development of electronic commerce require innovative solutions to ensure higher warehousing efficiency. The world and Ukrainian market of warehouse services and its growth rates were also analyzed. The impact of digital transformation on requirements for warehouse logistics management is determined. On the basis of the research carried out, directions for the development of warehouse logistics in the modern world were identified.

The nitty-gritty of this empirical study is to explore an exclusive critical success factors (CSFs) for effective application of Six Sigma programs in small-scale industries (SSIs). This pragmatic study was exclusively conducted to ascertain substantial benefits and stumbling blocks toward the application of Six Sigma programs. The study data were effectively collected from the structured interview schedule administered among 110 SSIs. Out of 110 interview schedules, 60 interview schedules were obtained from the plant managers of the small-scale industries. The outcome of this research has clearly shown that the factors found to be critical for successful application of Six Sigma programs by the sample respondents are continuous process improvement, employee involvement, linking Six Sigma to employees, training and education, and the customer focus. More prominently, this present study also indicated that the substantial benefits which encourage SSIs to embrace Six Sigma programs are in the positive side, and the stumbling obstacles which impede the effective implementations of the Six Sigma programs are in the negative side.