This research aims to find the factors that influence the decisions of institutional investors to invest in Government Bonds and Sukuk, as well as to disclose the oversubscribes of State Securities issued by Indonesian government. The investment decisions of investors in this study use a proxy data approach from variables that affect investment decisions. The type of research used is quantitative research using an econometric approach with the Auto Regressive Distributed Lag (Dynamic) Model. The research data used is a time series for eleven periods from 2009 to 2020. Data are analyzed using ARDL (Dynamic) Model with determination of lag using the Koyck model. The result of this research is that investment decisions with a rational approach to government bonds and sukuk are strongly influenced by macroeconomic and policy variables (inflation, exchange rates and the interest rate) and financial markets (financing interest rates, deposit rates, volumes and coupon rates).

This paper examines and assesses the extent to which pricing of Islamic banking and finance (IBF) worldwide is correlated to conventional finance. The data used were obtained from the Islamic Finance Country Index (IFCI) and the Cbonds platform. The IFCI is a methodology developed by Edbiz Consulting to measure the growth of IBF. The IFCI has been gathering data for nine years, sufficient time to yield meaningful results. Cbonds is a financial-data vendor highly specialised in the analysis of bond markets. This study provides both a qualitative analysis in the form of a tile map chart and a statistical test aimed at generalising the correlation between IBF expansion and interest rates to all countries where IBF banks might locate. This correlation is estimated by dividing the analysed countries into tertiles according to their interest rate and comparing the mean IFCI scores. The difference between the lowest tertile and the others is statistically significant. This appears to be the first empirical study to incorporate the whole geographical scope of the IFCI and analyse the interest rates of all countries to which IBF expansion metrics apply. Emerging markets represent an important growth opportunity for Islamic banks. In fact, the presence of Zakat as a mandatory tax to reduce poverty and the idea of a system based on distribution of wealth are important factors for developing economies. This study is consistent with previous findings: the IBF pricing system is correlated to the conventional banking system, and there is a positive correlation between the IFCI and countries with high yields. The main limitation of this study is the difficulty in obtaining the 10-yearyield to maturity (YTM) of countries for which no data was available.

This study aims to analyze the performances of Sharia mutual funds, especially in the Sharia mutual funds on stocks, money market, fixed income, and mixed funds. To enact such a purpose, a descriptive quantitative approach was used in the investigation of on Sharia mutual funds listed in Indonesia Stock Exchange 2015-2020 following the criteria of Sharia mutual funds of actively operate in Indonesia stock exchange which has great performance seen from Net Asset Value (NAV). The data analysis was carried out using phases of determining the rate of return calculated from NAV, the measurement of total risk with the standard deviation proxy, and the measurement of its performance using Sharpe ratio. The results indicate that fixed return of Sharia mutual fund carries the best performance compared to the stock, money market, and mixed investment funds. It has a higher return per unit risk and maximum probability of investment return above the income with riskfree. These research findings can be a reference for investors, primarily those who follow Sharia rules, in making mutual funds investment related decision in the future. They also can consider the Sharpe ratio to select the type of Sharia mutual funds in Indonesia, as the proper hedge investment.

Liquidity risk management in finance has always been well known as a necessity for conventional finance and Islamic finance. Conventional financing addresses this risk through known means. Unlike Islamic financing, this has few instruments suitable for Shari’a to manage this risk. If this risk accelerates, the Islamic bank faces significant challenges in the face of their depositors and investment projects. The objective of this study is to show that holding an optimal level of liquidity is necessary for Islamic banks to minimize the liquidity risk. In this paper, we also examine the relationship between profitability and liquidity. This importance is explained by the fact that these banks cannot always count on the support of the central bank, or on the Islamic money market. We refer in particular to the work of Ben Jedidia et al. (2013).Unlike Ben Jedidia et al. paper, our model of financial intermediation and liquidity risk management uses two factors: Murabaha and Ijara. Two analysis were used, the first one is static and the second one is dynamic, to determine the optimal amount to be held by an Islamic bank using the optimization method. The study reveals that the factors in the first analysis are: the anticipated penalty costs, the rate of return on financing, the sharing rate between the bank and the depositors. This study also reveals in a second dynamic analysis that the factors are: the expected marginal cost of penalty, the ratio of the change in deposits to the change in funding.

The ever-increasing trend of finance has prompted many European countries to implement very different solutions to meet the needs arising; in particular, the regulatory systems have been implemented with legislative measures, or rather, Financial Administration has introduced interpretations so as to regulate the tax burden on Islamic financial instruments. The contribution is addressed to the analysis of the current Italian legislation namely to the investigation of the tax effects generated by Islamic financial instruments on the different players by comparing with other countries such as the United Kingdom and France, whose experience in this regard has proved to be important to achieve an accurate understanding of the evolution of the rules governing such instruments. This paper is therefore aimed at suggesting simplifying guidelines (given the economic and financial implications) to be implemented in terms of legislation, with a view to providing an Italian standard for Islamic financial instruments so as to leverage the different synergies arising from the regulation of such instruments.

This paper aims to explore the economic, social, and environmental policies in Gulf countries. Despite the increased attention paid by scholars on circularity, there is no evidence about the relationship between the circular economy and Islamic countries. Using an explorative case study, this paper benefits from analyzing several information sources underlying the first link between circularity and Islamic countries. After an in-depth literature review, the authors present a useful comparison between the linear and circular economy concepts. Additionally, we emphasize a framework of policies and best practices adopted from Dubai, which merges several approaches applied towards the circular economy. Furthermore, this paper highlights the theoretical link between social entrepreneurs and Islamic pillars based on the Maqasid al-Shariah business model. In conclusion, the article provides useful implications for researchers and practitioners, who in the future aim to investigate the relationship between Islamic systems and the circular economy.

The importance of gender equality and women empowerment has become the central piece in numerous development agenda around the globe. In the Gambia, as part of the national development agenda, the government has eye marked key priority areas to champion the course of women empowerment. In addition, the government has enacted laws and ratified several other international goals including the Agenda 2030 to support this course. However, women entrepreneurs especially those in the agriculture value chain have faced numerous financial management challenges in conducting business activities. On one hand bank loans are expensive for them, and other the other hand those with surplus got minimal returns on their savings and investments. Thus, this paper aims to deliver the intended outcome of Maqasid Al Shariah by harnessing Islamic social financing and utilizing funds from the surplus side to provide sustainable and impactful financing for women on the deficit side via Islamic Blended finance. In addition to de-risking investment towards women empowerment, our proposed model offers a better return for those on the supply side and cheaper rate for those on the demand side by minimizing intermediation and transaction cost. It is anticipated that this paper will contribute to the achievement of the 2030 Agenda in The Gambia and also has the potential to be replicated in other developing countries.

This study aims to evaluate the level of satisfaction and service quality through CSI and IPA. The type of this study is quantitative approach under case study at Surya Mart Ponorogo Indonesia. The sample was 125 respondents. The variables of this study used sharia service quality and customer satisfaction composed of six dimensions: (1) compliance with Islamic law, (2) assurance, (3) reliability, (4) tangibility, (5) empathy, and (6) responsiveness, and each dimension has three statement attributes. Data were analyzed using Importance Performance Analysis (IPA), Cartesius Diagram, and Customer Satisfaction Index (CSI). The findings of this study are, firstly, the results of the IPA. The second finding is that the top priority attribute (indicated in Quadrant A of the Cartesian diagram) is sharia service quality. The third is a 75.2% value for customer satisfaction with the quality of sharia services at Surya Mart Supermarket Ponorogo, Indonesia, under CSI analysis, indicating that customers do feel satisfied enough.

The economic shutdown resulting from the COVID-19 pandemic across countries has caused huge impacts on various industries which are cutting down production and jobs. This led to many socio-economic risks, such as high unemployment rates, low income rates, increasing risks of poverty and hunger. This study explores the validity of the proposition that the Islamic social finance have an effective role in mitigating the humanitarian crises risks. So the paper tries to provide a multi-range strategy for maximize the benefit from Islamic social financing tools such as zakat, sadaqah, and waqf in short, medium and long range, and choosing the well-suited tool in each range of the strategy, in order to effective handling the social impacts of COVID-19. This paper reviews the conceptual definitions of Islamic social finance, and its various instruments. The study relied primarily on sources gathered from ongoing researches, news articles, reports, and information recorded by verified online sources of information. The results indicate that the multi-range strategy of Islamic social finance providing an innovative way which can helps governments and policy makers for manage the crisis during and after the COVID-19 pandemic. Keywords; humanitarian crises; COVID-19 impacts; Islamic social finance; Islamic social finance tools

The objective of this research is to reveal the social role of Islamic banks in Indonesia in helping the nation survive in the midst of COVID-19 pandemic in the context of market share. This research highlights Islamic commercial banks in Indonesia. The mixed research method under sequential explanatory model is used in this research. The result of this research demonstrates that banks with the largest magnitude have shown a fixed position. There is no change of position on their concentration ratio at pre and along pandemic period. The final result of this research finds that all the banks have implemented their social role in the midst of coronavirus outbreak through the donation. A self-protection assistance tool for health workers is the type of donation provided by all the banks. Further finding in this research reveals that the magnitude of market share owned by the banks tends to reflect types of social involvement.