Ihtifaz: Journal of Islamic Economics, Finance, and Banking

Implementation Strategics of Productive Waqf and Zakat Funding Integration Model Toward Sustainable Character Development: A Case Study of Universitas Airlangga

Mochamad Shamsul Arif; Wisudanto, Prawitra Thalib — Fri, 30 Jun 2023 00:00:00 +0000

Purpose - This research aimed to implementation strategy on waqf and zakat funding to improve student character. This research took place at Universitas Airlangga students who want to participate in character development through the Griya Khadijah program.

Methodology - This research used a qualitative method with an exploratory analysis approach and case studies. Data were obtained from in-depth interviews, focus group discussions, and field observations. The collected data were analyzed using triangulation techniques and effectiveness analysis to create a funding integration strategy.

Findings - The results of the research indicated that the integration of zakat and waqf funding can be implemented with 2 different entities (Nazhir and PUSPAS). Nazhir acts as a provider of initial investment and curriculum development costs until Griya Khadijah was ready to run. While the role of PUSPAS was to provide operational costs by financing scholarships for students participating in the Griya Khadijah program. This funding integration process had several consequences, such as in accounting and curriculum aspects.

Research limitations/implications - Research contributed to the Sustainable Character development of temporary waqf studies in Indonesia. In addition, the proposed model can be the basis of reference for other nazhir in Indonesia.

Originality/value - This paper proposes a model which similar to (Mohd Thas Thaker et al., 2021), to implemented strategy the management of waqf and zakat to improve the character of Universitas Airlangga students at Griya Khadijah.

A Study of Empowerment of Mudarabah Practices in Facing Covid 19 Endemic Challenges in Malaysia.

Ahmad Zakirullah Mohamed Shaarani, Djasriza bt Jasin, Mohd Noor Adzwan Bin Adam — Fri, 30 Jun 2023 00:00:00 +0000

Mudarabah is a type of partnership contract in Islamic banking and finance. The salient conditions of the contract are that capital is contributed by the capital provider to the entrepreneur and profits are shared between the two while losses are fully borne by the former. Despite the many advantages of the mudarabah contract as a financing instrument, it is not as popular as other financing concept, especially debt-based financing. This phenomenon is due to some issues associated with this contract, making it less attractive to investors. Therefore, the focus of this study is to discuss the practices of mudarabah contract, particularly concerning the constraints in its implementation and the measures to strengthen it to make it remain relevant, especially in developing the capacity and capability of entrepreneurs affected by the Covid-19 pandemic. This study fully employed the library research method in which information was obtained from classical and modern literature pertaining to mudarabah. Current information and data were analysed to come up with suggestions and measures for strengthening the application of mudarabah. The study found that although mudarabah has been widely practised in the Islamic financial system, the practice is limited to receiving funds in the form of deposits rather than direct financing from banks and investors to entrepreneurs due to certain risks associated with the contract that makes it incompatible with the prevailing banking system. Several steps have been identified to empower mudarabah, such as expanding the mudarabah application through the investment account platform (IAP), adopting the interest scheme approach, upskilling and training entrepreneurs, introducing mudarabah-based products in the market, offering incentives for mudarabah-based products, expanding the guarantee facilities to mudarabah contracts, and introducing mudarabah mutanaqisah.

Do Market Timing Incentives Affect The Debt-Equity Choice of Malaysian Shariah-Compliant IPOs?

Khemaies Bougatef, Oumayma Kassem — Fri, 30 Jun 2023 00:00:00 +0000

Introduction: Empirical and theoretical literature points out that market timing attempts could shape financing decisions and persistently affect capital structure. However, prior studies on market timing did not distinguish between Shariah-compliant and non-compliant firms although Shariah compliance considerations may affect market timing incentives.

Purpose: This paper aims to fill this gap in the literature by investigating whether market timing theory predictions are relevant in the case of Shariah-compliant firms.

Methodology: This paper aims to fill this gap in the literature by investigating whether market timing theory predictions are relevant in the case of Shariah-compliant firms. We use a sample of 40 Malaysian Shariah-compliant companies that went public during the period from 1 January 2015 to 31 December 2018.

Findings: The findings provide useful implications for investors and portfolio managers interested in investing in Shariah-compliant IPOs. They should identify market timers to avoid low subsequent returns of equity issuers.

Determining Factors for the Adoption of Islamic Insurance (Takaful) Business among Vehicle Owners in Nigeria

Shuaib Ndagi Sayedi, Abdulkadir Usman, Suleiman Ndako Bagudu , Abubakar Hassan — Fri, 30 Jun 2023 00:00:00 +0000

Introduction to The Problem: Despite the increase in growth rate and the influence Islamic financial system play in global financial system in recent decades, insurance (Takaful) as one of the three components of Islamic financial system has received little attention in Nigeria.

Purpose/Objective Study: The study determined factors that influence vehicle owners’ intention to adopt auto – insurance in Nigeria.

Design/Methodology/Approach: The study adopted survey research designs. The population of the study was 12,000,000 registered vehicles in Nigeria which 300 respondents were sampled. Questionnaire was the instrument for data collection.

Findings: Regression result showed that awareness, relative advantage and social influence has significant influence on vehicle owners’ intention to adopt auto – insurance in Nigeria. But, religiosity, perceived compatibility, perceived complexity and perceived risk have no significant influence on vehicle owners’ intention to adopt auto – insurance in Nigeria.

Dynamics of Fiscal Policy in Islamic Countries and Muslim Countries: Pakistan, Saudi Arabia, and Indonesia

Muhammad Asro; Sofyan Al Hakim, Iwan Setiawan — Fri, 30 Jun 2023 00:00:00 +0000

Introduction: This research departs from the discussion of Islamic fiscal policy in Islamic countries and Muslim countries, where the dynamics of fiscal policy in Islamic countries and Muslim countries with various strategies to achieve the ideal fiscal. But to achieve the ideal of fiscal policy, there are challenges and obstacles that are not simple, because fiscal with all its dynamics must be carried out seriously for any country. Both Islamic countries, Muslims, and even other countries in general.

Purpose: This study aims to determine the dynamics of fiscal policy in Islamic countries and Muslim countries, especially in Pakistan, Saudi Arabia, and Indonesia.

Methodology: This research uses a descriptive qualitative method with a juridical research approach, which is an approach using the provisions of laws and regulations that apply to a country or a doctrinal legal approach method, namely legal theories, and opinions of legal scientists, especially with the problems discussed.

Findings: The results of this study can be concluded as follows: First, fiscal policy in Islamic countries and Muslim countries continues to experience developmental dynamics. In addition, the development strategies implemented are often less comprehensive and pay less attention to the strengths possessed by the country in question. So, it often faces difficulties that are not light in building superiority and competitiveness; Second, the dynamics of fiscal policy differences as mentioned above prove that they are still in a state of facing an economic crisis, but countries in the Middle East, North Africa, and Central Asia, vary in their fiscal policy determination. Regarding fiscal policy in some Islamic countries, some countries formally apply zakat collection laws in their economic policies, such as Saudi Arabia, Libya, Jordan, Bahrain, Pakistan, Kuwait, Yemen, Sudan, and Indonesia.