Browse by Author "Sa'id Adekunle Mikail"
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- PublicationAl-manzumat al-qanuniyat wal raqabiyat wa atharuha fi tahqiq himayat hamlat al-sukuk: tajribat MaliziyaSa'id Adekunle Mikail (IIUM Press, 2021)
One of the basics of the regularity of the Islamic financial industry is that it is subject to many legal and regulatory protections that directly or indirectly affected the progress of its financing and investment activities. The Islamic capital market sector, especially sukuk, is one of the most affected products. However, the tradability of sukuk at the international and local levels may be hindered by differences in the legal system and jurisprudential schools of thought, which may lead to a lack of certainty and a defect in the applicable laws. There is no doubt that investing in sukuk requires providing reassurance and confidence from investors on the abundance of the necessary protection from the law, the supervisory apparatus, the unity of the regulatory framework and its adequacy with the nature of sukuk. In this context, this research comes to study the legal and supervisory system applied to sukuk in Malaysia and how to it help sactualize sukuk-holders� protection. A descriptive and analytical approach were employed to study the status of this system and the relevant data and sources, along with its analysis, to derive the elements of protection for sukuk holders.The research finds that the most important objectives of the legal and regulatory system lie in gaining the confidence of investors, providing reassurance, transparency, and consolidating justice, the difference in laws and the instability of regulatory systems are stumbling blocks to all that. It is noteworthy that the development of the Islamic finance industry is in urgent need to either have its own regulatory framework or to improve the existing ones to address challenges or reduce them. It should be given competitive opportunities with the conventional financial industry on an equal footing.
- PublicationAl-qawa'id al-fiqhiyyah fil-Shari'ah al-manzumah lil aistithmarat al-mushtarakah: ra's al-mal al-jari' namudhajuaMahamad Arifin; Rusni Hassan; Sa'id Adekunle Mikail (Design For Scientific Renaissance, 2013)
An abstract is written in Arabic.
- PublicationAn analysis of ethical values in Islamic entrepreneurshipSyahida Abdullah; Sa'id Adekunle Mikail (Hamdan Bin Mohammed Smart University, 2014)
Entrepreneurship is an engine of growth in every society. Studies on the relationship between entrepreneurship and ethics are scanty. Thus, this research is designed to investigate ethical values embedied in entrepreneurship with a special focus on Islamic values ideal to entrepreneurship. This research finds ethical values with respect to Islamic entrepreneurship are indispensible factors as they constitute its essential element. Thus, four axioms of economic developed by Naqvi are just supporting evidence for what has deeply rooted in Islamic values and applicable to every aspects of human activities, and specifically to entrepreneurial activities.
- PublicationApplication of doctrine of judicial precedent in Shariah courtsKyaw Hla Win; Mahamad Arifin; Sa'id Adekunle Mikail (LexisNexis Malaysia Sdn Bhd, 2013)
The doctrine of judicial precedent plays an empirical role in common law, but it has only persuasive value in European continent countries which are practicing civil law system.It has not been recognised as having binding force in Islamic judicial system. In Islam, each case has to be decided based on its own merit and previous decisions can only be considered as guidance for the future cases. This position is still being maintained by some countries such as Malaysia and Saudi Arabia. In Pakistan and Nigeria the doctrine of judicial precedent is applied in deciding cases. Due to this contradiction among Islamic judicial system in various countries, a question arises relating to the feasibility of the application of the doctrine of judicial precedent in Shariah courts. Accordingly, in this paper, the factual nature of the judicial precedents in Islamic judicial systems have been examined comparatively in some details with reference to some selected countries such as Malaysia, Nigeria and Pakistan. This paper points out that the doctrine of stare decisis and judicial precedent can be applied in Shariah courts as guiding precedents but not as binding since there is no express prohibition in Shariah to take judicial guidance from previous decisions.
- PublicationCorporate waqf via initial public offering (IPO): a viable instrument for the sustainability of Malaysia's higher learning institutionsMohamed Ibrahim Negasi; Mahadi Ahmad; Sa'id Adekunle Mikail; Noor Suhaida Kasri (International Shari'ah Research Academy for Islamic Finance (ISRA), 2020)
The need for sustainable funding of institutions of higher learning led the Government of Malaysia to formulate its Universities Transformation Programme 2015-2025. This transformation agenda came out as the Purple Book which highlighted the need to address the funding gap that may occur in the education sector in the event of unexpected budget cuts. It called for the enhancement of income generation, endowments and waqf to achieve self-sustainability for higher learning institutions (Ministry of Higher Education Malaysia, 2016). Based on the above premise, this research explores the viability of corporate waqf via initial public offering (IPO) as an instrument to raise funds and sustain Malaysia's higher learning institutions. Corporate waqf, as defined by the Securities Commission Malaysia, refers to: A type of corporate [financial] instrument where liquid-asset-like shares or securities [are] endowed as waqf assets and [sic] thus enabling the waqf institutions to benefit from the dividend that can finance any welfare project or initiative (Securities Commission Malaysia 2014, p. 17).
- PublicationA critical study on Shari'ah compliant and Shari'ah based products in Islamic bankingMahamad Arifin; Sa'id Adekunle Mikail (Design For Scientific Renaissance, 2013)
This paper aims at analyzing the concept of Shari'ah compliant and Shari'ah based products in existing Islamic banking Institutions. The paper would shed more lights on the differences between both concepts. The main argument which is premised on the notion that the products may be Shari'ah compliant but not fully Islamic is vehemently deficient due to the fact that if the product is Shari'ah compliant and is less Islamic, then it is basically contrary to proper and true concept of Shari'ah. It is incontrovertible that Shari'ah is the system of law based on the commandment of Allah and the submission to such law would permit someone to be recognized as "Muslim" A believer in Islam. However, such kind of contradictions certainly shows the presence of shortcomings in such products, or in process of making them compliant to Shari'ah. Therefore, this study is a qualitative design, which addresses lacuna of the idea of Shari'ah complaint may be of less Islamic ethics. It will also examine the approach used by the Prophet peace be unto him- to reform the financial systems during his era. The paper will conclude by offering four alternative approaches on Shari'ah compliant parameters viz.; 'Aqd approach, Maqasid approach, Reporting approach, and Legal documentation of contract approach. In addition, this paper will explains the relationships among the various approaches, as some stand as dependent parameters, while the other stand as independent parameter. The study will offer suggestions for future research.
- PublicationThe emerging Shari'ah issues of the COVID-19 pandemic in contemporary Islamic financial applicationsSaid Bouheraoua; Sa'id Adekunle Mikail; Fares Djafri (International Shari'ah Research Academy for Islamic Finance (ISRA), 2021)
The outbreak of the coronavirus epidemic (COVID-19), classified by the World Health Organization as a pandemic, has led to the emergence of many challenges. It started as a health crisis and then turned into a global economic crisis that most countries could not manage or control as a result of lockdown policies and restrictions on movement and travel. This is not to mention the forms of damage that have affected the contractual obligations and rights of various contracting parties at the level of financial institutions such as banks, takaful companies and others. The challenges imposed by the coronavirus pandemic have led to a reexamination of the fiqh treatment of catastrophes. The role of Islamic economic experts and the Islamic financial industry has had to be clarified in addressing its effects on contractual relations and future obligations in distressed financing contracts. The theory of catastrophes (jawa'ih) is one of the most important jurisprudential theories in Islamic fiqh. It comprises a set of principles and provisions that deal with the harmful effects upon one of the parties bound by a contract as a result of damage to what the party is obliged to deliver, or failure to obtain the intended benefit from the obligation. It is based on achieving justice in the practical application of financial transaction contracts, removing difficulty, taking into account arising circumstances, and preventing abuse in the exercise of rights and the freedom to contract. It thus regulates the rights of people related to the exchange of properties and usufructs.
- PublicationThe evolution of Islamic venture capital in Malaysia: an expository studyMahamad Arifin; Rusni Hassan; Sa'id Adekunle Mikail (LexisNexis Malaysia Sdn Bhd, 2013)
Islamic venture capital is a strategic tool to enhance cooperation in the Muslim world. This is because it helps form smart partnership among the members of OIC countries. Venture capital is an investment in highly risky projects in return for potential high return focusing mainly on technology. For more than a decade, the trend has shown tremendous changes; hence venture capital investment records increasing interest of the investors in other sectors such as agricultural production, medical instruments and others. Islamic venture capital has been running in parallel with the mainstream in Malaysia. There are several reasons supporting the emergence of Islamic venture capital namely, attraction of Middle East investors and underutilisation of surplus in the Muslim world. This paper traces the development of Islamic venture capital in Malaysia, identifies the regulatory bodies, and the policy initiatives, and the pioneer corporations. In conclusion, it examines three phases of the development of Islamic venture capital in Malaysia namely, the evolutionary process, the degree of incorporation and developmental patterns. The applied Shariah mechanisms are hybrid of musharakah, mudarabah, and wakalah. It suggests that the balance between supply side and demand side, public friendly regulation may actualise the Malaysian industrialisation dream. In addition, refocusing long-term investment, reorientation of SMEs towards venture capital investment, establishment of private-oriented venture capital industries, creation of cash waqf and/or Islamic social bank are some suggested solutions in promoting Islamic venture capital in Malaysia. They may also be of help to other jurisdictions.
- PublicationFeasibility of the application of the doctrine of judicial precedent in civil and Shariah courtsKyaw Hla Win; Mahamad Arifin; Sa'id Adekunle Mikail (LexisNexis Malaysia Sdn Bhd, 2013)
The doctrine of judicial precedent plays an empirical role in the common law system, but it only has persuasive value in European countries which are practicing the civil legal system. Moreover, it has not been recognised as having a binding force in the Islamic legal system and thus each case has to be decided based on its own merits and previous decisions were merely considered as guidance for the future decision. This position is still being maintained by some countries such as Malaysia and Saudi Arabia. In Pakistan and Nigeria, however, the doctrine of judicial precedent is followed. Due to this contradiction among the Shariah legal system in various countries, as a result, a question arises relating to the feasibility of the application of the doctrine of judicial precedent in Shariah Courts needs thorough study. Accordingly, in this paper, the factual nature of the judicial precedents in both civil and Shariah legal systems have been examined comparatively in some detail with reference to countries such as England, Malaysia, Nigeria and Pakistan. This paper points out that the doctrine of stare decisis and judicial precedent can be applied in the Shariah Courts system as guiding precedents but not as binding precedents since it is allowed in Shariah to take guidance from previous decisions and there is no express prohibition in Shariah on them.
- PublicationThe fiqh characterization of ijarah mawsufah fi al-dhimmah: an analysis of juristic viewsSa'id Adekunle Mikail (ISRA, 2013)
The application of the Shari'ah principle of ijarah mawsufah fi al-dhimmah (forward lease) can be traced back to the early days of Islam. It is derived from the original contract of ijarah (lease), which has been widely used in the structuring of Islamic financial transactions to cater for various Muslim and non-Muslim needs over time. Thus, the classical books of Islamic jurisprudence have amply discussed its applications in various forms according to the prevailing circumstances. Today, ijarah mawsufah fi al-dhimmah is applied in the offering of various services in the Islamic finance industry relating to education, medical treatment, tourism, hajj and 'umrah, among others. Nevertheless, its applications involve a number of Shari'ah issues concerning the advance rental payment, the subject matter of the contract and its fiqh characterization. The primary purpose of this paper is accordingly to examine the key Shari'ah issues arising in the current applications of ijarah mawsufah fi al-dhimmah in the Islamic finance industry and to determine their juristic stance. Since ijarah mawsufah fi al-dhimmah shares the characteristics of both ijarah and salam (forward sale), this paper also aims to examine the most relevant contract applicable in ijarah mawsufah fi al-dhimmah.
- PublicationFramework for financial hardship indebtedness management in abandoned housing projects in MalaysiaNoor Suhaida Kasri; Saba' Radwan Jamal Elatrash; Abideen Adeyemi Adewale; Sa'id Adekunle Mikail; Noor Suhaida Kasri (Emerald Publishing Limited, 2018)
This paper aims to examine the existing practices and pertinent issues affecting Islamic banks and their customers in abandoned housing projects (AHPs) to ensure compliance with Shari'ah and statutory requirements. This study employs the qualitative research method using the inductive approach to analyze both primary and secondary data and sources. Data collection involved a series of semi-structured interviews with five volunteering Islamic banks and a representative of Abandoned Property Owners Association Malaysia (Victims). Statutory acts, regulatory policies, guidelines, directives and standards were also analyzed. The result indicates developer's default, underlying contracts, regulatory arbitrage and bureaucracy, attitudinal disposition of customers and sell-then-build approach as major factors of AHP's conundrum. This study has suggested both short- and long-term solutions based on the principles of justice, public interests and removal of hardship to resolve and effectively manage financial hardship indebtedness arising from housing abandonment. Further, part of the proposed solutions would also reshape housing development policies and home financing transactions.
- PublicationHistorical development of Islamic venture capital: an appraisalRusni Hassan; Muhamad Arifin; Sa'id Adekunle Mikail (AENSI Publications, 2011)
Venture capital is commonly defined as medium to long-term equity investment provided for unlisted companies to finance their start up, expansion, survival and change of ownership. The origin of which was traced back to mudharabah; which is commonly translated to Islamic limited partnership. The application of venture capital seems to be abandoned in Muslim world for long, while Western communities get steady development of it. Since the inception of Islamic banks for almost two decades, Islamic banks are also turning a blind eye to venture capital. In spite that venture capital is akin to Islamic bank's principle of profit and loss sharing. The first Islamic bank which was introduced 1963 at Mit Ghamr by Dr. El-Naggar, was primarily built on mudharabah contract which constitutes a tiny portion in day-to-day operations of Islamic banking and financial institutions to date due to risks associated with this area of investment. However, venture capital considered as a formidable tool for economic and technological development in the West. This study aims at studying historical development of mudharabah and musharakah that constitute the root of the modern venture capital. The study covers both classical and modern Islamic venture capital. The study finds that modern Islamic venture capital operates in form of banking and financial institution at the outset. This is could be imagined with the establishment of the first Islamic bank at Mit Ghamr Egypt 1963, Tabung Hajj at 1960s. On the contrary, Mudharabah Companies established in Pakistan in1984 operates in form of fund management company. Nevertheless, the first fund carries the tittle of Islamic venture is Injazah funds established in 2004. The first fund and management corporation dedicated for Islamic venture capital is musharaka venture tech and management established in Malaysia 2008. The first banking institution dedicated for Islamic venture capital and private equity investment is Venture Capital Bank established in Bahrain 2006. The common Shari'ah applicable principles are musharakah, mudharabah, and wakaalah. Although muzara'ah and musuqat are seldom applied in the agricultural sector. In a nutshell, the study provides Shari'ah framework for Islamic venture capital and proposes solutions for pressing issues.
- PublicationThe impact of Islamic banking on American financial systemsYounes Hamdan Ibrahim; Sa'id Adekunle Mikail (INCEIF, 2023)
This study aims to investigate the current state of Islamic banking in Dearborn, Michigan, and to identify the challenges and opportunities associated with its growth. The research problem is the limited understanding of the demand for Islamic banking services in the US and the factors that influence their adoption. To address this issue, a mixed-methods approach was used, which included surveys, interviews, and secondary data analysis. The survey included a sample of 300 Muslim customers of Islamic banks in Dearborn, while the interviews were conducted with 10 experts in the field. The study population comprises of Muslim individuals who reside in Dearborn and seek banking services that align with their religious beliefs. The findings of the study reveal that Islamic banking is a growing industry in Dearborn, with a significant number of Muslim customers who prefer banking services that comply with their religious beliefs. However, there are several challenges that hinder the growth of Islamic banking, such as the limited product offerings, lack of awareness and understanding, and regulatory barriers. To address these issues, the study recommends increasing public awareness of Islamic banking, expanding the range of products and services offered, and advocating for regulatory reforms to facilitate the growth of the industry. The study also explores the cultural, regulatory, and religious factors that impact the development of Islamic banking in the US. The findings of the study are supported by a review of relevant literature, which highlights the importance of cultural and religious considerations in the adoption of Islamic banking services. The impact of the research is to provide valuable insights into the current state of Islamic banking in Dearborn and the US, and to inform future research and policy decisions in the field. The study contributes to the development of the Islamic banking industry in the US by highlighting the opportunities and challenges associated with its growth.
- PublicationIslamic venture capital in Malaysia: development, constraints and way forwardMahamad Arifin; Rusni Hassan; Sa'id Adekunle Mikail (Hamdan Bin Mohammed e-University, 2014)
This study aims at examining the development of the Malaysian Islamic venture capital industry including government and regulatory policy initiatives for escalating the growth of the industry. It also highlights constraints and way forward for the industry. The paper employs qualitative approach focusing on secondary resources, documents, and field interview with practitioners and academia who are directly involved in the operations of Islamic venture capital in Malaysia. The study finds that policy-driven approach and liberalization facilitate the standardization of Shariah rulings of Shariah Advisory Council (SAC) and Shariah Committee (SC), which contribute to the effectiveness of regulatory framework and sustainable growth of the Islamic capital market in Malaysia. It also finds a number of constraints that dampen the progress of Islamic venture capital in Malaysia to be the following: i) apparent resistance of major Islamic banks to get involved in Islamic venture capital investment, ii) biasness against long-term investment; iii) underutilization of mushaarakah and mudaarabah mode of financing, iv) preference of expansion stage over seed capital by major venture capital institutions; v) lack of awareness on Islamic venture capital investment; vi) overreliance on government intervention. This paper holds significant implications for the venture capital industry players because it provides gap which needs to fill to make the industry a success.
- PublicationProtecting takaful against the risk of failure: a critical appraisal of the takaful benefits protection system (TBPS) in MalaysiaShaikh Hamzah Shaikh Abdul Razak; Muhammad Ali Jinnah Ahmad; Nurdianawati Irwani Abdullah; Said Bouheraoua; Sa'id Adekunle Mikail (ISRA, 2014)
The establishment of the Takaful and Insurance Benefits Protection System (TIPS) in Malaysia is a statutory requirement. TIPS aims to ensure financial stability, soundness and public confidence. Perbadanan Insurans Deposit Malaysia (PIDM), known internationally as the Malaysia Deposit Insurance Corporation, is the sole regulatory body entrusted with the mandate to regulate deposit insurance across the country. At the outset, its mandate was confined to banking institutions. Since 2010, however, PIDM’s role has been extended to include takaful and conventional insurance institutions. With regard to takaful, the operation of the Takaful Benefits Protection System (TBPS) and the relationship between PIDM and its takaful members pose major concerns that have been raised by the industry in Malaysia. The concerns are related to contractual relationships, sources of premiums, the subject matter of the contract, and the services and guarantee that PIDM provides for takaful participants. This research aims to provide critical Shari'ah analysis and evaluation of the current model of Takaful benefits protection system. It examines the existing model to ascertain to what extent it accomplishes the statury mandate and to what extent it meets Shari'ah requirements. Adherence to regulatory requirements is a must. The takaful industry faces some major challenges in trying to realise the interests of the takaful participants and its shareholders while satisfying the regulators. Thus, it is imperative to conduct an investigation that resolves these thorny issues in a win-win manner.
- PublicationShari'ah contracts underpinning musharakah mutanaqisah financing: a conceptual analysisMohd Shahril Mat Rani; Sa'id Adekunle Mikail (International Shari'ah Research Academy for Islamic Finance (ISRA), 2016)
This paper examines the Shari'ah contracts applicable in musharakah mutanaqisah financing (MMF) (diminishing partnership) and possible Shari'ah issues arising from the combination of different Shari'ah contracts to effect the financing. The paper employs the qualitative research method, using textual and document analysis. It finds that the fiqh characterization of MMF by the International Islamic Fiqh Academy of the Organisation of Islamic Cooperation (IFA-OIC), which is also found in the Bank Negara Malaysia (BNM) Shariah Standard on Musyarakah, is the best contemporary approach, but it needs to be explicated. This paper identifies two major phases of MMF that are essential to attaining its objective: partnership and ownership, each phase with its own underlying and supporting contracts. It suggests that the partnership phase, which involves either shirkat al-milk (partnership in ownership) or shirkat al-'aqd (contractual partnership), should be separate from the ownership phase, which applies either a bay' (sale) or hibah (gift) contract. The process also involves a number of subordinate contracts in the form of lease (ijarah), forward lease (ijarah mawsufah fi al-dhimmah) and manufacturing contract (istisna') as well as a purchase undertaking (wa'd). Lastly, the contractual phases of MMF discussed in this paper and pertinent issues highlighted could guide contracting parties towards a better understanding of each contract involved in MMF and what is to be expected from them.
- PublicationSustainable financial inclusion: a fiqh analysis of zakat-based microfinance schemeSalami Saheed Adekunle; Sa'id Adekunle Mikail (Lembaga Zakat Negeri Kedah Darul Aman, 2020)
Sustainability has remained one of the most significant challenges facing microfinance industry in general and Islamic microfinance in particular. With the advent of Islamic microfinance and Islamic microinsurance the need for Shari'ah compliance is indispensable. Such need poses another additional challenge for Islamic microfinance practitioners. Many practitioners have argued that in practice Shari'ah compliance should be sacrificed for profitability so that Islamic microfinance industry could achieve sustainability and competitiveness in the global microfinance market. However, not a few researchers and Shari'ah scholars argued that the industry risk identity loss by trading Shari'ah compliance for any other benefit no matter how lofty - be it profit or otherwise. They are of the opinion that Shari'ah, being the backbone of Islamic financial system must be abided by in all Islamic finance instruments and models and compromising it cannot be an option. The controversy on whether sustainability and Shari'ah compliance could be regarded as mutually exclusive has been very intense and unabated especially among the regulators, industry players and academicians. Based on the foregoing, this paper sets out to investigate achieving both Shari'ah compliance and sustainability through zakat-based microfinance scheme. Inductive qualitative methods were adopted as instruments to conduct the research. Data were also gathered from both primary and secondary sources of Shari'ah. This paper finds that Shari'ah compliance and sustainability in microfinance operations could be achieved pari passu through the zakat-based microfinance scheme and as such both factors are not necessarily mutually exclusive.
- PublicationTajdid al-nazar fi qadaya mustajidat fi al-tatbiqat al-mu'asirat lil ijarat al-muntahiyat bi al-tamlikMohamad Akram Laldin; Fares Djafri; Sa'id Adekunle Mikail; Fares Djafri; Mohamad Akram Laldin (International Islamic Fiqh Association, 2023)
An abstract is written in Arabic.
- PublicationUnearned wakalah fee in the takaful industry in Malaysia: a critical analysisSa'id Adekunle Mikail; Fares Djafri; Burhanuddin Lukman; Mahadi Ahmad; Sa'id Adekunle Mikail; Fares Djafri (International Shari'ah Research Academy for Islamic Finance (ISRA), 2021)
The issue of unearned wakalah fees (UWF) arises due to the statutory requirements in the Islamic Financial Services Act (IFSA 2013) that mandate takaful operators to refund any undue contribution with the corresponding wakaah fee in the event of surrender or termination of a takaful certificate. The relevant statutory provisions and Bank Negara Malaysia (BNM) guidelines on the valuation basis for liabilities of family and general takaful are open to more than one interpretation, and the exact definition and components of money not due are not clear. The implementation of the statutory provisions and regulatory guidelines on the refund of UWF has raised the following issues for the Malaysian takaful industry: 1. How to determine UWF and its components from money not due that must be refunded as stated in the statutory provisions and BNM guidelines? 2. What are the Shari'ah justifications, if any, to support the requirements for refund in the event of surrender? 3. How to resolve any Shari'ah and technical issues pertaining to the implementation of the refund of UWF due to lack of clarity regarding its definition and components? Accordingly, this paper delineates the concept and components of the wakalah contract, its salient features, contractual relationship, subject matter, including the wakalah fee, and juristic deliberations regarding it. It also examines the background and means of identifying UWF by explaining its subject and components, differences between earned and unearned wakalah fee, and the treatment of UWF. Further, it studies Shari'ah and technical issues related to recognition, calculation and refund of UWF and other surrender values.
- PublicationUtilisation of zakah and waqf fund in micro-takaful models in Malaysia: an exploratory studyMuhammad Ali Jinnah Ahmad; Salami Saheed Adekunle; Sa'id Adekunle Mikail (Emerald Publishing Limited, 2017)
This paper aims to investigate the utilisation of both zakah and waqf fund as external resources to ensure micro-takaful services are delivered to underserved communities in an effective and sustainable manner. It also addresses Shari'ah issues related to the zakah- and waqf-based model. The study is a qualitative-based research. It uses both focus group and content analysis approach to gather primary data and identify and interpret relevant secondary data and Shari'ah concepts in developing the zakah- and waqf-based micro-takaful model. It is discovered throughout the investigation of attributes of beneficiaries of zakah and waqf institutions as well as micro-takaful scheme that all share commonalities in terms of social securities and socio-economic support to low-income households in societies. The study also finds that the disintegration of zakah and waqf which form part of the Islamic ecosystem from the micro-takaful model makes it less effective and sustainable.
- PublicationZakat al-duyun al-masrifiyat al-muajalat: al-ithar al-nazari 'ard wa taqwimRiaz Ansari; Said Bouheraoua; Sa'id Adekunle Mikail (International Shari'ah Research Academy for Islamic Finance (ISRA), 2016)
This research examines the issue of zakah on non-current banking debts within its theoretical framework. The main problems dealt with are the conflicting contemporary juristic opinions on the issue of zakah on non-current banking debts as well as the conflicting ways that these opinions have been implemented. This makes it necessary to pinpoint the most important causes for the controversy and to identify the weightiest opinion on the matter. The study begins by defining non-current banking debts and identifying their most salient characteristics. It then undertakes an explanation of the classical scholarly controversy regarding zakah on debts which are not yet due. The authors have chosen the second view, which is that zakah is obligatory on debts that are currently due and upon the capital and profits that will come due during the current financial year. Nevertheless, the authors see the necessity of an empirical study relying upon experts in the calculation of zakah to explore the economic impact that implementation of each of the three views mentioned would have and to choose the opinion that secures justice for both sides of the zakah function (those upon whom it is due and its rightful recipients). Regarding the aggregate wealth upon which zakah is due, the study has examined the views of contemporary scholars on the zakat able wealth of financial institutions. This is determined by accounting for all of the institution's assets and all of its liabilities. The study explains the most prominent resolutions on this matter, as well as the evidence cited, without voicing a preference for one resolution over another. The study also deals with the scholarly controversy regarding the zakah obligation on the government's share in Islamic financial institutions in which it owns all or part of the shareholder capital. The authors favor the third approach regarding the obligation of zakah on mixed wealth, that if the government rules it to be obligatory it shall be levied on all the shares, including those of the government.
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