INCEIF Knowledge Repository (INCEIF University)
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Smart waqf city for education - an experience in Darussalam Gontor, Indonesia
No full textHistorically speaking, waqf has played a remarkable role in economic growth and development of Muslim countries. Recently, the call for productive waqf has grown widely and its implementation shows significant impact in various Muslim societies. Interestingly, the revival of idle waqf properties and the creation of cash waqf are becoming economic drivers that will improve the welfare of Muslim societies. It is also surprising to discover the creation of waqf cities in different types such as the Hamdard Waqf City of Health in India, Pakistan and Bangladesh, Al-Rahmah Complex City in Somaliland and Darussalam Gontor Smart Waqf City for Education in Indonesia. The main objective of this chapter is to present an overview of the development of Darussalam Gontor Smart Waqf City for Education and to discuss how this waqf city has been able to maintain its financial sustainability without resorting to any external funding since 1750 (starting with Atiq Waqf Mosque) until today. This study is exploratory and adopts qualitative research methodology to achieve the aforementioned objectives. Data are collected from published reports, journals and the relevant web sites. Expected Findings: To conceive the founding Gontor Smart Waqf City for Education as a good model in financing the development of multilevel education infrastructure through decent, high quality and friendly environment. Practical Implications: The study presents a schematic framework for new waqf founders to build new waqf. Social Implications: Waqf is a viable non-governmental source of funding for education
Sustainable financial inclusion: a fiqh analysis of zakat-based microfinance scheme
No full textSustainability has remained one of the most significant challenges facing microfinance industry in general and Islamic microfinance in particular. With the advent of Islamic microfinance and Islamic microinsurance the need for Shari'ah compliance is indispensable. Such need poses another additional challenge for Islamic microfinance practitioners. Many practitioners have argued that in practice Shari'ah compliance should be sacrificed for profitability so that Islamic microfinance industry could achieve sustainability and competitiveness in the global microfinance market. However, not a few researchers and Shari'ah scholars argued that the industry risk identity loss by trading Shari'ah compliance for any other benefit no matter how lofty - be it profit or otherwise. They are of the opinion that Shari'ah, being the backbone of Islamic financial system must be abided by in all Islamic finance instruments and models and compromising it cannot be an option. The controversy on whether sustainability and Shari'ah compliance could be regarded as mutually exclusive has been very intense and unabated especially among the regulators, industry players and academicians. Based on the foregoing, this paper sets out to investigate achieving both Shari'ah compliance and sustainability through zakat-based microfinance scheme. Inductive qualitative methods were adopted as instruments to conduct the research. Data were also gathered from both primary and secondary sources of Shari'ah. This paper finds that Shari'ah compliance and sustainability in microfinance operations could be achieved pari passu through the zakat-based microfinance scheme and as such both factors are not necessarily mutually exclusive
Islamic wealth management and issues in waqf management in Malaysia
No full textThis chapter briefly examines ideas from Islamic wealth management and waqf concepts to see if there are ways in which human welfare can be better managed on a community-action level without the visible hands of the government. To do this, authors first examine the concept of Islamic wealth management, and then provide some discussion on how waqf assets already in place in all Islamic countries could be mobilised to meet the needs of communities for sustainable economic development as well as fairer ways of looking after the needs of the have-nots of societies
The impact of government human capital expenditure on economic growth and the role of institutions in OIC countries
No full textTheoretically, one of the ways governments that aim to improve economic growth in their countries is by increasing expenditure on human capital. However, some empirical evidence from OIC countries do not support the finding that expenditure on the two most important aspects of human capital (expenditure on education and health) affects growth positively. One of the plausible reasons for the observed unusual finding could be the presence of moderating variables. Therefore, this study investigates the relevance and applicability of one such moderating variable, namely the quality of institutions, given the relatively low global ranking of OIC countries in terms of institutional quality. This study contributes to the new institutional economics literature by discovering that some institutional quality variables determine the way human capital expenditure affects economic growth. This study uses the methodology of panel data analysis and interaction graph plots. Interaction graph plots show the marginal effect of a continuous variable on another continuous variable. Without the inclusion of interaction terms, we find that, on average, in OIC countries, the effect of government education expenditure (GEE) on growth is insignificant while the effect of government health expenditure (GHE) on growth is either insignificant or significant and negative. The interaction graph plots show the effect of government human capital expenditure on growth at different levels of growth. When we consider the marginal effect of institutional quality, we find that generally, better bureaucracy quality, control of corruption, government effectiveness, law & order and rule of law augment the positive effect of GEE on growth. We also find that better government effectiveness and law & order augment the positive effect of GHE on growth
Developing a waqf market and reconceptualising awqaf governance via regtech
No full textAs a charitable institution, waqf is envisaged as an inherent segment of the Islamic financial services industry with potential to develop into a market for Islamic social finance. While the industry records growth and development with huge profits in its banking, takaful and capital market segments, it has been observed that pursuit of profits has overshadowed social and financial equity goals and thus disproportionately promoted in Islamic finance. Yet, waqf, with over trillion dollars' worth assets to its credit to advance these goals, is neglected and the assets left undeveloped and idle due to governance issues. Thus, eligible beneficiaries of those assets in several Muslim nations suffer with illiteracy, poverty and lack of healthcare among other social challenges that need social finance solution. Hence, the need to reconceptualise waqf governance in order to reawaken and develop it to assume its role not only as a social financing institution but for financial inclusion. Regulatory technology is turned to as answer to the governance needs to establish and develop a waqf social capital market, along with fintech for delivery of related products/services. In this chapter, a qualitative methodology with exploratory approach is employed in examining and analysing relevant data on waqf market in Islamic financial services industry to advance and contribute in the social financing drive in global developmental agenda. The chapter demonstrates the capabilities of fintech-powered waqf and regtech solutions therein in matters of waqf registration and/or establishment, e-KYC/KYD, detection and elimination of fraud, statutory reporting and compliance, etc., while leveraging on blockchain, mobile and cloud computing technologies. Thus, deploying regtech unlocks opportunities in waqf towards fulfilling the social financing goals of Islamic finance. Attaining this however requires synergy and collaborations for research in the workability of the technologies in compliance with Shariah and law, among all stakeholders in Islamic finance and economy
Lattice quantum field theory of the Dirac and gauge fields: selected topics
No full textQuantum Chromodynamics is the theory of strong interactions: a quantum field theory of colored gluons (Yang-Mills gauge fields) coupled to quarks (Dirac fermion fields). Lattice gauge theory is defined by discretizing spacetime into a four-dimensional lattice - and entails defining gauge fields and Dirac fermions on a lattice. The applications of lattice gauge theory are vast, from the study of high-energy theory and phenomenology to the numerical studies of quantum fields. This book examines the mathematical foundations of lattice gauge theory from first principles. It is indispensable for the study of Dirac and lattice gauge fields and lays the foundation for more advanced and specialized studies
The potential of fintech in enhancing the use of salam contract in Islamic banking
No full textAn Islamic banking system employs different Shariah contracts to develop and offers products and services in different jurisdictions. One of such contracts is salam which is a forward sale contract. This study aims to examine the practice of salam as an instrument of Islamic banks financing and how technology can be used to enhance its application thereto. A qualitative approach is employed in this research where primary data sources on salam contract were examined, along with content analysis of relevant secondary data sources on the contract and how its practiced in Islamic banking. In furtherance of that practice, salam instrument can be leveraged on technology, mainly the blockchain. This would enhance its operation by bringing about automation, transparency, fair pricing, saving time and cost as well as enabling widespread access of Islamic bank financing to smaller enterprises to promote societal well-being. This research reveals that salam instruments cater for different clients' needs and enjoy patronage in many jurisdictions even though it is currently the least utilized contract in Islamic banks financing due to divergence of juristic views on its general permissibility. Also, salam is an exceptional contract for Islamic banks financing of agriculture and related enterprises among others. The research offers an insight for Islamic banks to leverage on technology in utilizing salam contract towards providing financing for variety of clients, particularly poor farmers. Similarly, jurisdictions not practicing salam stand to learn of the benefits of using salam to offer technologically innovative yet affordable Islamic banking products/services for variety of clients
Comment on "Economic reforms in the aftermath of regime change in Malaysia"
No full textLee (2020) provides a fairly crispy analysis of economic reforms underway in Malaysia subsequent to the dramatic regime change through the ballot box on May 9, 2018. As is often said, there is more to it than meets the eye. Economic reforms have long been overdue in Malaysia. There were no reforms even in the aftermath of the 1997-1998 Asian Financial Crisis. While many affected countries in the region, including South Korea, Thailand and Indonesia, undertook serious reforms with International Monetary Fund (IMF) guidance in the wake of currency meltdown and political upheaval, Malaysia remained in a denial mode, blaming currency speculators. Malaysia was able to desist IMF intervention, as its short-term external debt was small enough to be managed on its own, with no political fallout
International financial integration through depositary receipts (DRs)
No full textThe issue of liquidity and underdevelopment of the Organisation of Islamic Cooperation (OIC) stock markets has caused problems to companies in those countries that seek higher equity capital. One way out of this problem is to employ international markets more intensively by seeking cheaper cost of capital through Depositary Receipts (DRs). Many studies on DRs focused on emerging and developed countries, leaving many OIC countries behind. Thus, this study investigates the financial implication by examining the integration of returns of local and foreign stock markets via American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) of OIC countries. Techniques employed in this study are cointegration and the speed of adjustments to examine the existence of integration between the local and foreign stock markets. The study covers a sample of 146 firms from 17 OIC countries that are cross-listed as ADRs or GDRs from 1992 to 2011. The findings show mixed results when some markets provide evidence of integration while others show evidence of segmentation. The study on the integration between DR and home equity markets has practical implications for both the international as well as domestic investors especially on portfolio selection, asset pricing and risk managemen
Promoting shared prosperity in developed and developing countries on sustainable development concept via Islamicity Prosperity Index
No full textGreater inequalities and social exclusion are reckoned to be the results of economic growth which led the World Bank to set the new goal, to end extreme poverty and promote shared prosperity. Interestingly, the approach of the contemporary solution is largely in consonance with the objectives of the Shari'ah. Realizing the importance of this agenda, a bold attempt is made in this study to quantify and visualize 'prosperity sharing' in 28 developed countries and 14 developing countries by reshaping the sustainable development concept from an Islamic perspective. The four pillars of prosperity namely Faradh (social responsibility), Shura (social participation), Al Adl Wal Ihsan (social equilibrium) and Ummah (social cohesion) are examined to capture the essence or the core of prosperity sharing. The analysis begins with an extensive literature survey as the basis for designing and developing the construct of the dimensions and indicators, followed by the adequacy test of the indicators by applying the Principal Component Analysis (PCA) prior to the estimation analysis. We then apply the panel data regression analysis, to identify which determinants have significant impacts on the shared prosperity indicator(s). Finally, we construct a multidimensional index labelled as the Islamicity Prosperity Index (iPI)