Invest Journal of Sharia & Economic Law
Not a member yet
74 research outputs found
Sort by
Student Finance and the Islamic Prohibition on Interest-Based Loans: Does the UK Have a Legal Obligation to Offer Muslim University Students an Alternative Student Loan Scheme Which Aligns with Islamic Law?
Full text linkAccess to higher education in the United Kingdom is governed by a comprehensive legal framework that upholds equality and prohibits discrimination under domestic and international law. Nevertheless, the current student finance system poses significant challenges for adherents of Islam due to the Islamic prohibition on usury, which is inherent in the interest charged on conventional student loans. This financial exclusion extends beyond matters of religious accommodation, as it directly implicates the fundamental right to education and the principle of equality. This study explores whether the UK government has a legal obligation to provide adequate alternative student loan schemes aligned with Islamic principles to ensure equitable access to higher education. It critically examines the UK’s obligations under international human rights law and domestic legislation, focusing on the right to education and the principles of equality and non-discrimination
Türkiye Wealth Fund: A Review
Full text linkSovereign wealth funds (SWFs) are investment funds owned by states to implement various state objectives. SWFs date back to the 19th century, but their modern examples emerged in 1953 with the Kuwait Investment Authority. They have been extensively known in the financial world after the millennium but were not coined until 2005. They reached approximately 14 trillion USD, a paramount capacity for international financial markets. They originally stemmed from fossil fuel revenues with stabilization and saving aims. As states recognize them, their aims and resources have diversified. Currently, they appear to be a varied bulk of investment tools managed by sovereign states. Their sole collective feature is the state ownership. Although they could resemble each other to some degree in a specific group, they are not a homogeneous group of investors. The Türkiye Wealth Fund (TWF) is a distinctive SWFs. Türkiye has not had ample reserves to build an SWF, but it has used its enterprises and borrowing to build an SWFs. There is considerable controversy regarding TWF in Türkiye. In this article, I endeavored to present a general picture of TWF and the controversy surrounding it. Considering the best practices, I attempted to recommend some things to TWF to contribute to its improvement in the right way
Presidential Discretion and Ministerial Inflation: A Normative Critique of the Amendment to Indonesia’s State Ministry Law
Full text linkThe amendment to Article 15 of the State Ministry Law, which eliminated the cap on ministries and replaced it with "as needed by the President," has introduced legal uncertainty in Indonesia. This change adversely affected the structuring and formation of state ministries. This study analyzes the factors influencing ministry formation and aims to reconstruct the regulatory framework by reinstating limitations on the number of ministries to mitigate negative impacts. Using a normative legal method with statutory, conceptual, and historical approaches, this study identifies regulatory gaps. The findings reveal that the amendment to the State Ministry Law, particularly the revision of Article 15, which allows ministry numbers to be determined by presidential discretion, creates legal uncertainty. This fails to meet two key indicators of legal certainty theory - lex stricta and lex certa - leading to detrimental implications for ministry formation. This study recommends a judicial review of the amendments and advocates for reinstating a maximum limit on ministry numbers within the legal framework. This regulatory provision enhances legal certainty and prevents potential abuse of authority
The Quadriptych of Rizq, Ḥabs, Maʿāsh, and ʿUmrān: Insights from Hājar's Statement on Water Rights
Full text linkThis article explores the meanings underlying Hājar’s statement “you have no right to the water” of Zamzam, based on a philological reading of the original Arabic text mentioned in Ṣaḥīḥ al-Bukhārī. In this respect, it is necessary to understand Hājar’s statement in the general context of the foundation of the Bayt (sacred house), its destruction following Noah's flood, the gushing of Zamzam water, and the rebuilding of the Bayt by Ibrāhīm and Ismāʿīl. From this exploration emerges a quadriptych composed of four key meanings: rizq (divine provision), ḥabs (what is intended for the benefit of everyone), maʿāsh (the world we live from), and ʿumrān (the world we live in). This perspective offers an opportunity to understand Hājar's perception of the interaction between humans and the living milieu beyond the contemporary conceptual language focused on individual ownership. Following her experience of the gushing forth of Zamzam, the human being appears as the steward of God on earth who does not own the goods that he uses. As such, he is supposed to make them bear fruit for his own benefit and that of the community, in harmony with the milieu. The ability to inhabit takes precedence over the ability to appropriate the resources. Focusing on the concept of individual ownership veils the deeper meaning of life that connects the world we live from with the world we live in. Hajar's message is to make choices in favor of life. Such meanings open new avenues for research to go beyond the conceptual frameworks established by Islamic economics and finance, the contemporary jurisprudence of financial transactions, and that of awqāf, embedded in a contract approach centered on individual ownership
The Forfeiture of Corruption Assets and the Legal Position of Innocent Third Parties: Normative Challenges and Policy Gaps
Full text linkThe asset forfeiture of corruption proceeds is essential for recovering state losses and preventing criminals from benefiting economically from their crimes. However, this policy raises legal challenges when assets are in the hands of third parties acting in good faith. This study aims to explore the economic rights of such third parties and examine the legal protection of their rights during the seizure of assets derived from corruption. This study employs a normative juridical approach, utilizing statutory, conceptual, and case analyses. The findings reveal an imbalance between asset forfeiture policies and the principle of justice for third parties who acquire assets legally. Although regulations govern objections from good-faith third parties, practical implementation still faces difficulties in terms of proof and legal interpretation. Thus, this study suggests the need for more detailed regulatory reforms to ensure the fair protection of the economic rights of good-faith third parties while facilitating the recovery of state assets
Capital Accounting Based on Local Cultural Values by Gorontalo Travelers to Mecca
Full text linkThis study aims to understand the capital accounting practices of travelers from Gorontalo to Mecca using bicycles based on local cultural values. This study is positioned within the Islamic paradigm using an Islamic ethno-methodology approach. The data analysis method consisted of five stages: charity, knowledge, faith, revelation-based information, and courtesy. The findings show that the primary sources of capital are merchandise sales and support from friends and fellow Muslims. This capital is used to finance travel necessities, including food, accommodation, and bicycle repairs, as well as charity throughout the journey. In practice, initial capital recording was done in writing, but as the journey progressed, financial records were retained only in memory. This reflects a non-material value-based accounting concept in which the belief in sustenance predestined by the Creator serves as the primary foundation for financial management. Additionally, in Gorontalo’s Islamic culture, this belief is reflected in the phrase Diila o, onto, bo wolu-woluwo, meaning "unseen but existent." This phrase teaches that in life, one should not only focus on visible aspects, but also appreciate the existence of the unseen but real. These findings indicate that capital accounting practices in this journey are not solely focused on financial recording, but also encompass broader spiritual and social values
Reconstructing the Concept of Copyright as Al-Ḥuqūq Al-Māliyah in Islamic Law
Full text linkCopyright, as part of intellectual property rights, has become a growing issue in Islamic law, especially regarding its ownership classification. While positive law recognizes copyright as an economic right that can be transferred and inherited, Islamic law presents differing views on whether it falls under huquq al-adabiyah (moral rights) or huquq al-mãliyah (economic rights with material value). This debate arises from the traditional Islamic view of ownership, which emphasizes tangible assets. With the rise of creative industries and technological advancements, there is an urgent need to reconstruct copyright as huquq al-mãliyah to ensure proper legal protection. Within the framework of maqasid al-shariah, acknowledging copyright as an economic right aims to safeguard individual ownership, prevent exploitation, and promote innovation. This study employs a qualitative method with a normative juridical approach, examining classical and contemporary fiqh literature alongside copyright regulations in Muslim-majority countries. The analysis applies inductive-deductive and comparative techniques between Islamic and positive law. Findings show that copyright meets the criteria of huquq al-mãliyah due to its economic value, transferability, and inheritability. Islamic legal sources—including the Qur’an, Hadith, and scholarly interpretations—support its recognition. This reconstruction offers significant implications for strengthening copyright protection within Islamic legal frameworks and developing shariah-compliant regulations suited to modern economic contexts
Understanding Islamic Banking Usage Continuance in Indonesia: A Relevance of Religiosity Perspective
Full text linkThis study explores and analyzes religiosity as a key factor in muamalah activities to boost Islamic banking customers' intention to continue using the service. This focus arises from the intense competition in Indonesia's Islamic financial industry. Despite this competition, the Islamic banking sector still has a relatively small percentage of loyal customers, contributing to its low market share in the country. Therefore, banks must devise strategies that leverage religious factors to enhance customers' continuance intention usage (CUI). This quantitative study employed a survey method, utilizing structural equation modeling (SEM-AMOS) to meet its research objectives. The study selected Islamic banking customers as its sample and gathered 403 participants through convenience sampling. The findings indicate that this study adjusted the religiosity indicator to assess economic activity, particularly customer behavior. Additionally, the model demonstrated that religiosity can significantly enhance Islamic banking customers' CUI. This study offers policy recommendations for regulators in the Islamic banking industry, emphasizing the importance of religious factors in attracting customer continuance intention usage, as most Indonesian Muslims exhibit greater confidence in such factors
Empowering Mustahiq Through Productive Zakat: A Maqashid Sharia Analysis of The "Surabaya Berdaya" Program
Full text linkThis study evaluates the "Surabaya Berdaya" program initiated by BAZNAS Surabaya as a model of productive zakat aimed at empowering mustahiq through sustainable economic development. Grounded in the Maqashid Shariah framework, particularly the objective of Hifz al-Mal(protection of wealth), this study investigates the effectiveness of the program in transforming zakat beneficiaries into independent economic actors. A qualitative descriptive approach was employed, with data collected through interviews with program implementers and mustahiq, direct observations, and documentation analyses. The interview data were further analyzed using open coding techniques, allowing the emergence of key themes that were subsequently mapped to empowerment indicators. Verbatim quotations selected from informants were included to enhance methodological rigor and authenticity. The programme offers business capital, vocational training, business equipment, and ongoing mentoring to support micro-entrepreneurship. Field findings indicated increased income levels, improved financial literacy, and enhanced self-confidence among participants. Empowerment was observed through multidimensional indicators, such as self-agency, skill acquisition, resilience, and cooperative networks. The analysis shows that zakat utilization in this program aligns effectively with Maqashid Shariah, when combined with ethical governance, contextual sensitivity, and post-disbursement support. However, disparities in outcomes highlight the need for adaptive mentoring and personalized empowerment pathways. This study contributes to the growing literature on Islamic social finance by offering empirical insights into the operationalization of Maqashid Shariah in urban zakat programmes. It recommends further research into the long-term impact, integration with digital zakat systems, and policy innovation to enhance program scalability and effectiveness
Reforming Indonesia's Approach to Transfer of Sentenced Persons: A Maqāṣid al-Sharīʿa Framework and a Comparative Analysis of ASEAN and European Models
Full text linkThis study examines the legal and humanitarian challenges faced by Indonesian migrant workers imprisoned abroad and the urgency of establishing a clear legal mechanism for the transfer of sentenced persons (ToSP) between Indonesia and other countries. Recent cases from Myanmar, Malaysia, and Saudi Arabia reveal persistent gaps in Indonesia's legal framework, leaving migrant workers vulnerable to unjust criminalization, disproportionate punishment, and prolonged detention without a predictable pathway for repatriation. The study finds that Indonesia's current approach relies heavily on ad hoc diplomatic negotiations rather than enforceable legal procedures, contravening the rehabilitative and humane treatment principles enshrined in international conventions, such as UNCAC Article 45 and UNTOC Article 17. Comparative analysis further reveals the absence of an ASEAN-wide prisoner transfer mechanism, unlike the comprehensive European Convention on the Transfer of Sentenced Persons. To address these deficiencies, this study proposes a two-pronged reform agenda: enacting a dedicated Indonesian National Law on ToSP and advocating an ASEAN Protocol on Prisoner Transfer. Crucially, the study reinterprets the issue through the lens of maqāṣid al-sharīʿa, positioning the protection of migrant workers' lives (ḥifẓ al-nafs), family well-being (ḥifẓ al-nasl), and economic welfare (ḥifẓ al-māl) as ethical imperatives that transcend the procedural limits of positive law. This maqāṣid-based framework transformed the ToSP regime from diplomatic discretion to a legally mandated restorative justice mechanism. The study concludes that aligning Indonesia's domestic legislation, bilateral agreements, and ASEAN advocacy with maqāṣid principles would establish a more humane, rehabilitative, and socially responsive transnational criminal justice system for migrant workers