Journal Article

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  • Publication
    Analysing the roots of inflation in the Gambia: an Islamic approach
    Adama Sowe; Magda Ismail Abdel Mohsin (International Research Centre of Islamic Economics and Finance (IRCIEF), Kolej Universiti Islam Antarabangsa Selangor (KUIS), 2023)

    Inflation is a persistent problem in many countries, including the Gambia. This study aims to analyse the roots of inflation in The Gambia and propose an Islamic approach to resolving the issue. The study uses a secondary data analysis approach to identifythe root causes of inflation, analyse its effects on the economy and the population, and propose an Islamic path to resolving the issue. Principles of justice, fairness, and social welfare guide the study. The study finds that various factors, including government policies, supply shocks, and external factors, cause inflation in the Gambia. Inflation has negatively affected the economy and the population, increasing poverty and hardship. The study proposes an Islamic approach to resolving inflation in Gambia, which involves adopting Islamic economic models and principles. The study concludes by summarising the findings and providing recommendations for policymakers and stakeholders in Gambia.

  • Publication
    Monetary policy, financial development and income inequality in developing countries
    Mansor H. Ibrahim (World Scientific Publishing Co Pte Ltd, 2024)

    The paper empirically examines the redistributive effect of monetary policy and assesses whether financial development plays any role in shaping monetary policy - inequality relations in developing countries. We uncover evidence supporting the redistributive consequences of monetary policy especially in more financially developed countries. We further note that while financial development raises income inequality in countries with low financial development, it leads to a reduction in income inequality in high financial development countries. As a side result, economic growth contributes favorably to income equalization in these countries. Finally, such financial indicators as financial access, financial efficiency and financial stability also condition the impacts of monetary policy on income distribution, although they are independently insignificant. Our results hint that the improvements in information and in efficiency rather than depth and access that would attenuate the negative impacts of contractionary monetary policy on income distribution.

  • Publication
    Zakat-based urban farming: a tool for poverty alleviation, community empowerment, financial inclusion, and food security
    Wiaam Hassan; Ziyaad Mahomed; Baharom Abdul Hamid; Kinan Salim (Center for Islamic Economics and Development Studies (CIEDS)- P3EI, Faculty of Business and Economics, Universitas Islam Indonesia, 2024)

    This study introduces a zakat-based model aimed at poverty reduction and enhancing food security in urban settings. Drawing upon the principles of Islamic social finance, the model integrates urban farming with the utilization of zakat, charity, and corporate social responsibility funds, offering sustainable financial avenues for disadvantaged individuals and social enterprises. The primary objective of this research is to design and pilot test a practical model that not only generates consistent financial income, but also bolsters food security and advances financial inclusion. This study reviews various models that have used zakat funds for economic empowerment, conduct interviews, and hold focus group discussions. It proposes a zakat-based urban farming model for poverty alleviation and community empowerment using the theory of change. In collaboration with a leading Islamic bank in Malaysia, the model was pilot tested across selected residential communities in Malaysia. The research findings demonstrated positive impacts both at the individual participant level and within the broader community. Serving as a replicable blueprint, this project envisions the transformation of urban spaces into productive landscapes, thereby ensuring sustainable livelihood, amplifying food security, and promoting financial inclusion. Through this zakat-based approach, the research underscores the profound impact of urban farming in catalyzing socio-economic change and advancing efforts towards poverty alleviation.

  • Publication
    A pandemic's grip: volatility spillovers in Asia-Pacific equity markets during the onset of COVID-19
    Mustafa Disli; Ruslan Nagayev; Abubakar Ilyas; Ahmet F. Aysan; Kinan Salim (Elsevier B.V, 2024)

    The emergence of COVID-19 in late 2019 rapidly shattered the Asia-Pacific region (APR), a bastion of economic dynamism, and it became the epicenter of the global health crisis. This unprecedented pandemic not only triggered a public health catastrophe but also unleashed a financial storm, exposing vulnerability within the region's interconnected economies. This study identifies the factors driving volatility spillovers within Asian-Pacific financial markets during the initial wave of the COVID-19 pandemic (January 2020-February 2021). We analyze the interplay of pandemic transmission dynamics, government interventions, central bank policies, and socioeconomic variables. Our findings reveal a robust and persistent association between the rising number of COVID-19 cases per million and volatility spillovers. We introduce three novel determinants - the number of intensive care unit beds, population density, and the proportion of the elderly population - which significantly impact volatility transmission in response to new cases. Stringent government measures, such as travel bans and lockdowns, mitigate volatility spillovers. Conversely, central bank policies increase volatility spillovers. These insights contribute to a deeper understanding of financial market dynamics in the context of global health emergencies. This knowledge equips policy makers in the APR with valuable tools for navigating future crises.

  • Publication
    Sustainable Islamic financial engineering with special reference to Gulf Cooperation Council's economies
    Imene Tabet; Tariqullah Khan (ISRA Research Management Centre, INCEIF University, 2024)

    This paper explores how Islamic economics and finance, when developed as an embedded framework for regenerative development in line with Maqasid al-Shari'ah (the objectives of Islamic law), can facilitate the design of sustainable contracts and Islamic financial engineering. This framework provides a mechanism to achieve the paradigm shift advocated by Islamic finance scholars to accommodate the sustainability agenda into the practical applications of Islamic economics and finance. The paper specifically focuses on the Gulf Cooperation Council's (GCC) economies. This study employs an analytical research approach to evaluate the compatibility of Islamic social and commercial finance with sustainability objectives. The analysis is primarily qualitative and relies on the One Earth Framework proposed by Simpson et al. (2021) to structure the assessment of opportunities and challenges related to sustainability that Islamic economics and finance in the GCC region can help address. The paper highlights the potential of Islamic economics and finance as an embedded framework to address sustainability challenges in the GCC countries. By examining the capacity of Islamic finance to accommodate sustainability pathways, it elucidates avenues for integrating sustainable practices within Islamic financial contracts and institutions. One of the key contributions of this paper is the introduction and development of Islamic economics and finance as an embedded framework. This pioneering concept not only lays the groundwork for a practical mechanism but also signifies a fundamental step in realising the paradigm shift within Islamic finance. This transformative approach enhances the relevance and effectiveness of Islamic finance in fostering sustainability, marking a significant advancement in the field. While the study provides valuable insights, it primarily follows an analytical approach and does not involve quantitative analysis. It serves as a starting point for further research on the integration of sustainability objectives in Islamic finance.

  • Publication
    Financial reporting dimensions of intangibles in the context of Islamic finance
    Syed Musa Alhabshi; Sharifah Khadijah Syed Agil; Mezbah Uddin Ahmed (IIUM Press, 2018)

    Prior studies have identified that not all "intangibles" are reported as "intangible assets" in the statement of financial position. This particularly concerns the Islamic finance industry where intangibles are often used as underlying assets in structuring products. Accordingly, this research examines the unique Shari'ah requirements and the dichotomous views on the validity and permissibility of intangibles to be recognized as assets. As a result of an apparent need to re-examine the sufficiency of international financial reporting standards (IFRS/IAS) and the views of Shari'ah scholars on financial assets, the research is designed to analyse the sufficiency of IAS 38 Intangible Assets with reference to the Conceptual Framework for Financial Reporting of International Accounting Standards Board (IASB). For this purpose, an in-depth interview, two focus group discussions and a survey of target respondents from both academia and industry directly involved in reporting of Islamic financial services are carried out. From the engagement session with the Shari'ah scholars, the research has identified an alternative view of concern with reference to appropriate Shari'ah rulings to determine the permissibility and validity of intangible assets and its reporting implications. Whereas, a mixed response is observed in the survey in terms of clarity on accounting policy, treatment and disclosures with reference to the technicality of the standards as well as the peculiarity of the context in Islamic finance industry.