Shariah Principles Research Articles

Comparative Analysis of the Hiwalah Fatwa between Indonesia and Malaysia

The objective of this study is to examine the differences and similarities in the application and interpretation of the fatwa on hawalah contracts between the Indonesian Ulema Council and the Malaysian Fatwa Committee. The research methodology employed in this study is qualitative research, employing a comparative approach. Following the collection of data from fatwas, books, and other literature, the data is subjected to inductive analysis in order to yield the results of this study. The analysis of similarities and differences, as well as compatibility with Islamic law, conducted between the DSN-MUI fatwa and the Regional Mufti of Biscotuan's fatwa on hawalah has led to the following conclusions: DSN Fatwa No. 12/DSN-MUI/IV/2000: The aforementioned fatwa is in accordance with Shariah principles as it fulfils the elements and conditions of hawalah without an increase in rent or profit. Fatwa No. 58/DSN-MUI/V/2007: The aforementioned instrument is not fully compliant with Shariah principles because it allows for the imposition of fees in the context of a pending hawalah transaction, which may potentially lead to riba. In contrast, the Mufti of Persekutuan Province has issued a fatwa that is compatible with Shariah principles. This fatwa ensures that hawala transactions are only between two parties with a debt-to-debt relationship and that no fees are charged. Consequently, the instrument avoids the imposition of usury. In this context, the fatwa of the Pijapat Persekutuan Mufti is more rigorous in maintaining compliance with Sharia principles, particularly in preventing usury. Although Islamic financial institutions recognise hawalah as a practical necessity, they must exercise caution to ensure that they do not contravene the fundamental Shariah principle of prohibiting usury.

MERAPATKAN JURANG PENGETAHUAN: MENGHARMONIKAN KONSEP TEKNOLOGI KONTRAK PINTAR DAN PERSPEKTIF HUKUM ISLAM

The rapid development in technology, especially smart contract technology, poses challenges in aligning its principles with the Shariah perspective. Although this technology has great potential to facilitate human affairs in various fields, including the financial, zakat and halal sectors, the gap between Shariah researchers and the understanding of this technological innovation is wide due to the complexity of smart contracts involving technical aspects and new innovations. Therefore, the purpose of this study is to explore the challenges in understanding smart contract technology from the perspective of Islamic law. A qualitative approach based on library research was applied to achieve the objectives of the study by referring to relevant documents and literature. The collected data was then analyzed using thematic content analysis methods, enabling the identification of themes and patterns in the literature related to smart contracts and Shariah principles. The results found that there is a significant gap in the understanding of smart contracts among Shariah researchers, mainly due to the technical complexities involved and limited accessibility to relevant information. To address the knowledge gap, it is important to increase access to comprehensive resources that describe the technical aspects of smart contracts along with Shariah principles. Collaboration between technologists and Shariah scholars are important to facilitate mutual understanding and bridge the gap between the two domains. Additionally, ongoing research and discourse is encouraged to refine the understanding of smart contracts within the Shariah framework.

دراسة فقهية تحليلية :(NFT) الاستثمار في الرموز غير قابلة للاستبدال Non-Fungible Tokens (NFT) Investment: A Juristic and Analytical Study

Non-fungible tokens (NFT) are considered unique digital assets recorded on the blockchain whose ownership and authenticity cannot be duplicated, exchanged, or divided but can be transferred by the owner, allowing the selling and trading of NFT through the blockchain. This study addresses the issues relating to the extent of NFT compliance with Islamic law. It sheds light on the concept of symbols that are not replaceable and presents the opinions of contemporary jurists in dealings with NFT based on a juristic adaptation of these transactions.The study is qualitatively based and using an inductive approach to collect library information and analytical approach to clarify the issue and present the opinions of the jurists. The study found that investing in non-fungible tokens is legally permissible, but the principles of Shariah must be adhered to when dealing with them because they are among the things that were not prevented except by legal evidence. NFTs should be items of legal value that benefit people, and are free from illegal activities such as usury, fraud, and gambling. The study recommends an urgent need for Shariah scholars and technology experts to create an NFT platform that is compatible with Islamic Shariah, and allowing Muslims to participate in it.

The introduction of Imam Abd ul-Wahab al-Sh’rani and his methodology in “al-Mizan al-Kubra

This research paper tells us about the methodology “The introduction of Imam Abd ul-Wahab al-Sh’rani and his methodology in “al-Mizan al-Kubra” and how he created the scale “al-Mizan” for the division of juristic opinions in Regid and Concession. According to Imam al-Wahab al-Sh’rani, most Islamic injunctions come under these two categories but there are some cases which do not come under these two due to unified juristic opinion. Also, there are some problems with having more than two vies which results in the inclusion of one in rigidity and the other in concession. These two cases are related to only analogical problems, not to the principles of Islamic Shariah. The Mizan highlights that the views of all Muslim jurists on any problem are correct and the public has the right to adopt any one of them. The disagreement among some scholars is due to infidelity with the source from where they narrate the problem. According to al-Sh’rani based on their physical and religious conditions the people can also be divided into two categories Rigidity and Concession. A person who has the ability for rigidity cannot be allowed for concession but the reversed person is allowed to do so. In the end, we can say that the benefit of this Mizan is that it prevents every person not to negating jurists belonging to different fiqh. And hence to make every person a candidate for intercession on judgment day in front of Allah.

Assessment of the Level of Health of the Fitrah Insani Bandung Shariah Cooperative on the Aspect of Shariah Principles Compliance

Assessment of the Level of Health of the Fitrah Insani Bandung Shariah Cooperative on the Aspect of Shariah Principles Compliance

The Principles and Practices of Akad Ijarah: A Research Application in Islamic Banking

This article investigates the principles and practices of Akad Ijarah and its application in Islamic banking. Using a literature review method, this article explores the fundamental concept of Akad Ijarah and analyzes its implementation in the context of Islamic banking. The research aims to provide a deep understanding of the structure, mechanisms, and benefits of Akad Ijarah for Islamic financial institutions. The analysis results present a comprehensive overview of how Akad Ijarah is implemented in the practices of Islamic banking, as well as the challenges and opportunities it faces. These findings have significant implications for the development of Islamic banking products and services that adhere to Shariah principles. In conclusion, this research highlights the importance of a solid understanding of Akad Ijarah in ensuring the compliance of Islamic banking with Shariah principles.

Image of Women in Islam: Maqāsid Approach for Correct Interpretation

The current study attempted to outline the necessity of using the purposes method (al-manhaj al-maqāṣidi) to understand the correct meaning of Islamic religious texts, particularly those related to the image of women, by analysing a set of Prophetic Hadiths in the canonical works of al-Bukhari and Muslim. When the purposes method is not utilized, these texts are typically understood as hostile towards women, leading many to question their validity. The current study employed the analytical and critical methods derived from holistically viewing the religious texts. The study argued that the purposes method should be used by gathering all the texts relevant to a particular topic, deriving specific purposes from general ones, linking branch issues to their origins, and assessing other contextual and situational evidences to create a correct understanding of religious texts that avoids explanations and violates the general principles of Shariah. Moreover, the study also argued that the purposes methodology stands as a pivotal element in grasping the essence of an Islamic text, rooted in the overarching principles of the law, and is utilized to interpret and guide fragmented texts. It also serves as a subset of the principle of elucidating ambiguous issues and reverting the secondary matters to their original bases. Once validated, the objectives of the law serve as a benchmark for adjudicating any unresolved matter not explicitly addressed in the examination.

Insights into financial reporting practices in the metaverse: evidence from Islamic financial institutions in Bahrain

Purpose This study aims to assess how prepared and flexible accounting professionals are to produce financial accounts that adhere to Shariah regulations in the metaverse. The study also highlights the potential positive and negative effects of metaverse utilization on the financial reporting quality of Islamic financial institutions (IFIs). Design/methodology/approach A questionnaire was distributed to a random sample of 102 accounting professionals employed in IFIs in Bahrain. Findings The capacity to provide real-time reporting within the metaverse would enhance the quality and reliability of Islamic financial reporting. Furthermore, the fluctuating values of digital assets in the metaverse pose a significant challenge to ensuring accurate financial reporting. IFIs fail to create an environment suitable for transitioning to the metaverse. Moreover, the participants expressed concerns about how the rapid expansion of the metaverse may challenge the adherence to Shariah governance principles in virtual financial transactions. They further recommended that the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) establish explicit directives on Shariah governance in the metaverse. Practical implications Various IFIs’ stakeholders, including practitioners, shareholders and employees interested in adopting the metaverse technology, can benefit from the findings of the studies. In addition, the study could help Islamic banks in Bahrain better grasp the readiness and adaptability of accounting professionals. This understanding would aid in establishing robust financial reporting standards that align with Shariah principles in the metaverse. Originality/value This research examines the metaverse through the lens of Islamic financial reporting, offering recent evidence on technological developments and financial reporting practices within an Islamic context. The research findings would contribute to advancing the knowledge among academics, professionals and all interested parties concerning the effects of metaverse implementation on Shariah governance principles and the quality of financial reporting. The study findings would offer policymakers and regulators in the Islamic finance sector essential insights.

Reporting lag in the GCC region: exploring the nexus of earnings management and IFRS transition

PurposeThe purpose of this study is to delve into the complex interplay between earnings management (EM), the International Financial Reporting Standards (IFRS) implementation and the reporting lag (RL) within the specific context of the Gulf Cooperation Council (GCC) region, with a particular emphasis on the Saudi context, offering insights into their influence on financial reporting practices.Design/methodology/approachUsing a panel data set of 135 Saudi companies over an eight-year period, covering four years before and after the mandatory adoption of IFRS in 2017, this study investigates the Saudi financial reporting landscape. It uses interaction moderation analysis to explore variable effects and includes robustness analyses to validate the findings.FindingsThe findings reveal three key outcomes. First, they challenge conventional expectations by showing no significant impact of discretionary accruals (DACC) on RL, contrary to established accounting theories. This deviation is attributed to unique market characteristics within the GCC region, including family-owned businesses, government involvement and distinct regulations, with specific insights relevant to Saudi Arabia. Second, an unexpected positive association between IFRS adoption and RL in Saudi Arabia emerged. Several contextual factors contribute, including transition costs, compliance expenses, institutional dynamics and reconciling IFRS with local Shariah principles. Most importantly, IFRS adoption significantly reduced RL, especially for companies with high DACC levels. This highlights IFRS’s transformative role, emphasizes aligning EM with international standards for investor confidence and mitigating nonconformity risks in the GCC region’s business landscape.Practical implicationsThe research findings carry significant practical implications for companies operating within the GCC region, accentuating the strategic imperative of timely financial reporting to bolster credibility, align with international standards and fortify investor confidence. Moreover, regulators and policymakers are urged to consider tailoring accounting regulations to accommodate the distinctive GCC context, thereby adeptly addressing the intricacies stemming from the interplay of EM, IFRS adoption and RL dynamics in the region.Originality/valueThis study adds to the current body of literature by highlighting the significant moderating influence of IFRS transition on the nexus between DACC and RL. It underscores the crucial role of this global accounting framework in reshaping financial reporting practices.

Muslim consumers’ behaviour towards halal nutraceutical products in Malaysia

Nutraceutical is defined as a food, or parts of a food, that provide medical or health benefits, including disease prevention and treatment. Although the primary source of nutraceutical products is plant-based, not all nutraceutical products can be categorized as halal. Many ingredients are involved in food processing and used as flavours, stabilizers, or colouring agents. In addition, some additives may be derived from non-halal sources, whether from pork, blood, non-slaughtered animals, genetically modified, or extracted with ethanol. Therefore, there is a need to identify the factors influencing Muslims’ consumer behaviour towards halal nutraceutical products to improve their awareness of them in Malaysia. For this reason, the present study has been developed to examine the factors that affect Muslim behaviour in purchasing halal nutraceutical products. This study employed a quantitative approach, with a total of 400 Muslim consumers in Malaysia participating and selected through multi-stage random sampling. Multiple regression analysis was used to determine whether Islamic values, religiosity, the maqasid shariah principle, and trust in government influence consumer behaviour toward halal nutraceutical products. The result indicated that all four factors significantly affect the consumers’ behaviour, where trust in the government was the most substantial predictive factor. This study was expected to improve halal awareness among Muslim consumers while encouraging the government to strengthen the Halal industry to protect the welfare of Muslim consumers in Malaysia.

Konsep Ji’alah dalam Perspektif Imam Al-Nawawi Terhadap Sistem Upah dalam Program Afiliasi Tiktok

The In today's digital era, many people are leveraging social media platforms such as TikTok to earn additional income through TikTok affiliate programs. Consequently, the use of TikTok affiliate programs is increasingly widespread and highly sought after by the public. However, there are concerns regarding the validity of the ji'alah contract, which serves as the foundation of this program. The ji'alah contract is a legitimate transaction according to Shariah law, where rewards or percentages are given to individuals who have contributed to performing a certain task. The purpose of this research is to find solutions to this issue, with a focus on the concept of ji'alah according to Imam al-Nawawi. The research method used is a literature review with a qualitative approach, involving document analysis, secondary data, and interviews with relevant parties. The findings of this research will identify the pillars of ji'alah that are in accordance with Shariah principles and relevant in the current context of TikTok affiliate programs. The implications of this research include a better understanding of the concept of ji'alah and its application in TikTok affiliate programs, as well as recommendations to ensure the compliance of these programs with Shariah principles.

The Use of Islamic Attribute in Food Product Marketing: Expert Views

The vast number of Muslim consumers in Malaysia, which accounts for 63.5% of the total Malaysian population, offers a vast market segment to food producers—the food producers employ various marketing strategies to compete in the market. Among the strategies employed is the use of Islamic attributes in marketing activities. Food product marketers used Islamic attributes such as Muslim names, pictures, emblems, Quranic verses, and Hadith in their marketing campaigns. The free use of the Islamic attributes has drawn attention to knowing the Islamic perspective of the use. Through in-depth interviews, this research paper aimed to reveal the views of 7 Shariah experts in a rich and contextualized account of using Islamic attributes in food product marketing. The experts were selected through purposive and snowball sampling methods. Thematic analysis was used to analyze the data, which resulted in the emergence of six themes in this study. These themes include (1) protection of Islamic honor and dignity, (2) prohibition of using Islam for personal gain, (3) prohibition of unjust practices, (4) prohibition of superstitious or syirik acts, (5) promotion of good business practices, and (6) promotion of a healthy diet, revealing the Islamic perspective on its use. This study contributes knowledge to Islamic marketing and the rulings on using Islamic attributes according to the Shariah principle. This research sheds light on the ethical implications of using Islamic attributes in scholarly and marketing domains. Further, this research explores the triangulation method of data analysis and validity via Shariah and socio-research.

Aplikasi Maqasid Shariah Dalam Pengiklanan Amal/ The Application Of Maqasid Shariah In Charity Advertising

Charitable donations are made by individuals or organizations to help people in needs and in distress. For this purpose, the charity seeks to convince people to donate time or money to obtain resources. Charity campaigns attract people’s attention through various methods namely order forms, visualizations, photos, and stories to reach people’s sympathy and empathy to raise donations and funds. However, problems occure in charity advertisements where there are dishonest activities such as the use of false advertisements, controversial content, social exploitation, and non-compliance with the guidelines that have been compiled by the authorized body. Therefore, this study aims to explore the application of Maqasid Shariah in charity advertisements. It uses content analysis method through Qualitative method specialized in library research. The results of this study found that there are five principles of Maqasid Syariah that apply to the application of charity advertisements such as religious protection, life protection, hereditary protection, intellectual protection and property protection. These five principles are categorized based on the relevant Shariah parameters in charity advertising to ensure that the code of practice complies with Shariah law. This is extremely necessary to combine contemporary practice with Shariah principles to open up better strategies in spreading the good of charity for the good of all.

LINKAGES SHARIAH GOVERNANCE AND ISLAMIC BANKS PERFORMANCE: EVIDENCE FROM GULF COOPERATION COUNCIL (GCC) COUNTRIES

The shariah governance system is crucial for Islamic banks (IB) because of the unique structure that is different from conventional banks. Good governance has an impact on stable performance. The shariah supervisory board (SSB) presence will convince stakeholders that IBs are running their business according to shariah principles. The focus of this research is the results of empirical studies in GCC countries. The research data was obtained from the bankscope database and manual collective from 2010-2018. This study uses a panel data model with a random effect method. Empirical results show that SSB size has a negative correlation with performance. SSB expertise and board size have a positive correlation with performance. Furthermore, SSB with doctoral qualifications and independent boards are not correlated with performance

Critical Review of Islamic Economic Thoughts Based on the Perspective of Three Schools (Mazhab): Iqtishaduna, Mainstream, and Alternative-critical

Islamic economics is a science that combines economics with the principles of Shariah. The development of Islamic thought and economics started from the time of Rasulullah SAW, Sahabat until today. Regarding how the concept of Islamic economics is, three mazhabs have different views, namely: Iqtisaduna Mazhab, mainstream mazhabs, and critical alternative mazhabs. This article aims to understand the views of Islamic economics in all the three mazhabs mentioned above. The three mazhabs have different backgrounds in criticizing the concepts of socialist and capitalist economics. The Iqtishaduna mazhab was pioneered by Baqir al-Sadr, this mazhab chose to replace the economic term with ‘iqtishaduna’. Mainstream mazhabs approach Western economic thought with an open heart and mind, not necessarily rejecting it completely; therefore, there needs to be filtering and refinement of economic concepts; while the alternative-critical mazhab is a spirit of criticism that invitesnot only socialists and capitalists who are are criticized, but also Islamic economic thought should be criticized, because this mazhab argues that Islam must be true, but Islamic economics is not necessarily true. Keywords: Islamic economics, Iqtishaduna, mainstream, alternative-critical

Analisis Syariah Marketing Mix Arrum BPKB dan Urgensinya dalam Meningkatkan Pendapatan UMKM Nasabah Pegadaian UPS Diponegoro Sumenep

The main objective of this study is to analyse the impact of the Arrum BPKB sharia marketing mix at Pegadaian UPS Diponegoro on the income level of MSME customers.This qualitative case study uses structured interviews to collect primary data from MSME players, complemented by secondary data from institutional records. The focus of the analysis is placed on understanding how the application of Sharia principles in marketing can improve business funding solutions. The application of Sharia Marketing Mix for Arrum BPKB financing has significantly increased customer interest and participation. Interviews with five MSME customers showed a marked increase in their daily and monthly income, confirming the effectiveness of this strategy in the real world. This study highlights the alignment of Shariah-compliant practices with customer needs and market dynamics. The findings underscore the importance of incorporating Shariah principles in marketing strategies in Islamic financial services. In practical terms, this approach not only helps in complying with ethical standards, but also enhances customer trust and financial inclusion for cash-strapped MSMEs. This study introduces new insights into the localised impact of Shariah marketing practices on MSME profitability, particularly in the Indonesian financial services context, and sets a precedent for further regional studies

Revitalization Supervision Islamic Banking in Enhancement Compliance in Indonesia and Malaysia

This study is indicated with social reality that, following three decades of dual banking system implementation in Indonesia, Islamic banks' operational activities are essentially identical with the operations of conventional banks. The thing that distinguishes is only the Shariah "brand". In the vast zone of national banking industry, Islamic banks are still being the "followers" of conventional banks with approximately 6.65% market share. The focus of study is on the Islamic bank supervision system by DPS, the Shariah Bank Compliance Directorate, and OJK in carrying out supervisory functions related to fields of duty. The study methodology applied is a normative legal study which includes a study of norms, principles of sharia banking law, and the opinions of sharia economic law experts, while those used are a statutory approach and a sociological approach. The next stage of data analysis is data display, which illustrated through tables, figures, and graphs. Data categorization was carried out relied to the theme to identify the implementation of Islamic bank supervision duties in conforming to Shariah principles and the implementation of laws and regulations. The results showed that there are several problems in Islamic bank supervision institutions that make supervisory performance not optimal and pose potential legal risks for the bank. The roles of DPS, the Directorate of Shariah Bank Compliance, and OJK, which run independently and inefficiently, create overlapping aspects of Islamic bank supervision. This study recommends amending UURI No. 21 of 2008 about Shariah Banking by giving attributive responsibility to DPS to sanction Islamic banks that proved to violate Shariah principal compliance and establishing the OJK regulations on Islamic banking audit instruments.

Analysis of the Relationship between Micro, Small and Medium Enterprises Sharia Compliance with Increasing Leverage on the Impact of Covid-19 (Case Study of MSMEs in Bandung City, Indonesia)

The purpose of this study was to identify the importance of shari'a compliance in the context of MSMEs, MSME's reputation, access to funding, and the impact on the role of shari'a compliance during increased leverage, to determine whether shari'a compliance is associated with increased leverage in MSMEs. is to analyze the impact discussed. This study takes a descriptive-analytical approach to verificative how Shariah compliance affects MSMEs' ability to utilize resources. Primary data sources and the technique for collecting data in this research uses a questionnaire technique. The analysis used in this research is likert scale analysis, hypothesis testing design using confirmatory factor analysis is a method of one of the multivariate analysis methods part of SEM (Structural Equation Modeling) whose function is to confirm or test the model to be hypothesized. To test the hypothesis model, this research uses the outer model for the measurement model and the inner model for the structural model. The Micro, SME population of Islamic Banking customers is his 156 companies and consists of his sample of 50 respondents using non-probability sampling. The study found a correlation and impact between Shariah compliance and leverage in MSMEs in Bandung. Findings from the study highlight the application of Shariah principles in the business activities of MSMEs, in particular the ban on Riba, transparency and fairness, social and environmental responsibility, and resilience to challenges in applying Shariah elements to their business activities. is shown. Shariah compliance impacts MSMEs' reputation, investor confidence, and access to finance

Suitability of The Implementation of Halal Tourism Principles at Sobo Kali Magelang Tourism: A Review of Fatwa DSN-MUI No. 108/DSN-MUI/X/2016

Halal tourism in Indonesia is currently a phenomenon that has become a trend as a superior economic potential and state revenue. This is reinforced by the number of provinces that have implemented halal tourism programs with an increasing number of tourists from all over the world. However, the facts in the field are still a lot of halal tourism that has not met the quality standards in Islamic law. The purpose of this study is to determine appropriateness of the implementation of halal tourism at Sobo Kali Magelang Tourism in review of fatwa DSN-MUI No.108/DSN-MUI/X/2016. This research method is descriptive qualitative with a case study approach. Data collection techniques use observation, interniew, and documentation techniques. The results of this study indicate that the implementation of Sobokali halal tourism is in accordance with DSN-MUI Fatwa No. 180/DSN-MUI/X/2016 not yet maximized, which is caused by several aspects that result in not achieving the application of the principles of shariah as a whole. These aspects include, first, the absence of Sharia Financial Institution services in managing business results. Second, the standardization of food and beverages for Sobokali tourism has not yet received Halal Certification from DSN-MUI.

A Systematic Literature Review on the Islamic Capital Market: Insights Using the PRISMA Approach

This paper employs the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) approach to conduct a comprehensive systematic literature review on the Islamic capital market (ICM). The ICM, governed by Shariah principles, has garnered considerable attention in both academic and practitioner spheres. Through the systematic analysis of scholarly articles, this review synthesizes existing literature on the ICM, examining its structure, development, regulatory frameworks, financial instruments, performance evaluation, and integration with conventional financial markets. This paper identifies gaps in the literature and proposes avenues for future research, aiming to enhance understanding and promote further inquiry into the ICM's role in global finance.