INCEIF University Journals
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Does Corporate Governance Influence Islamic Green Banking Disclosure? The Moderating Role of Bank Size
No full textPurpose — This study aims to investigate how corporate governance mechanisms influence Islamic green banking disclosure in Indonesia and Malaysia, and examine the moderating role of bank size. It addresses a critical gap in sustainability disclosure research specific to Islamic financial institutions (IFIs).
Design/Methodology/Approach — The Islamic Green Banking Disclosure Index (IGBDI) is constructed based on maqāṣid al-Sharīʿah (objectives of Islamic law) and ḥifẓ al-biʾah (environmental preservation) principles. Panel data from 13 Indonesian and 8 Malaysian Islamic banks covering the period 2009–2024 are analysed using a fixed-effects regression model with white cross-sectional standard errors. The study also conducts robustness checks using several methods.
Findings — The study finds that the Board of Directors and Risk Management Committee positively affect Islamic green banking disclosure, while the Board of Commissioners negatively influences disclosure. The Board of Independent Commissioners shows a marginally positive effect, whereas the Sharīʿah Supervisory Board (SSB) and Audit Committee exhibit no significant direct effects. Bank size negatively moderates the effect of the Board of Commissioners but enhances the positive influence of Independent Commissioners and the Risk Management Committee, indicating that governance effectiveness depends on institutional scale.
Originality/Value — This study is among the first to develop an IGBDI grounded in Islamic principles, integrating corporate governance and sustainability frameworks. It demonstrates how organisational scale interacts with governance mechanisms to shape disclosure, providing novel theoretical and practical insights for Islamic banking.
Research Limitations/Implications — The analysis is limited to Indonesia and Malaysia, offering context-specific evidence. Future studies could extend to other jurisdictions and include qualitative data to capture internal governance dynamics.
Practical Implications — The findings emphasise that regulators and Islamic banks should calibrate governance structures proportionally to institutional capacity to enhance sustainability reporting without creating inefficiencies
Mobilising Home Equity for Climate-Resilient Affordable Housing Through Tokenisation
No full textPurpose ― This research addresses the converging global crises of housing affordability and climate adaptability. It proposes a novel unified measure of affordability and adaptability, as well as financial mechanism to mobilise trapped residential equity for resilience transformation while embedding social protection as structural features.
Design/Methodology/Approach ― Primarily, this is a conceptual paper with essential empirical footprints. The research applies Dynamic Prescriptive Economics (DPE) methodology to diagnose multidimensional housing system imbalances through four-quadrant mapping of affordability and adaptability dimensions. The study analyses 2024–2025 empirical evidence from tokenised real estate pilots in Dubai, Singapore, and Switzerland, alongside climate-focused blended finance transactions totaling USD15.5 billion across 84 deals. Normalised Sustainability Coordinates quantify current system positioning and transformation pathways towards ideal balance.
Findings ― The analysis reveals that approximately USD280 trillion in global residential equity remains illiquid and unproductive for resilience goals while 1.6 billion people face inadequate housing and 800 million homes experience acute climate exposure. Current housing systems concentrate in Quadrant 3 (degenerative imbalance) with Normalised Sustainability Coordinates averaging (45, 35), far below the ideal target of (70, 70). The convergence of verification technology, blended finance mechanisms demonstrating 1:4 to 1:6 leverage ratios, and regulatory frameworks in key jurisdictions create unprecedented conditions for transformation. The proposed Global Housing Resilience Accelerator (GHRA), implementing Tokenised Sustainable Equity for Safe Housing (TSESH), demonstrates technical feasibility to mobilise USD50 billion, retrofit 5 million homes, create 2 million affordable units, and uplift 25 million people by 2030.
Originality/Value ― This research provides the first comprehensive framework integrating regenerative sustainability principles through DPE with tokenisation technology, blended finance architecture, and jurisdictional regulatory developments to address the coupled housing-climate crisis. The framework advances beyond conventional approaches by embedding social protection covenants as binding structural features rather than aspirational goals, including mandatory 51 per cent homeowner equity retention floors and anti-displacement protection. The study demonstrates how systematic rebalancing of housing dimensions achieves regenerative outcomes while preventing displacement and extraction, offering a replicable methodology for addressing interconnected sustainability crises.
Research Limitations/Implications ― This research faces limitations including reliance on early-stage precedents from 2024–2025 that may not fully represent scaled implementation challenges, dependence on continued regulatory evolution in key jurisdictions, and uncertainty regarding institutional investor appetite at proposed scales. The cross-border legal complexity and smart contract enforceability require jurisdiction-specific adaptation. Future research should validate the framework through pilot implementations, develop standardised measurement protocols for Housing Resilience Impact Standards, and assess long-term social protection covenant effectiveness across diverse contexts.
Practical Implications ― The framework provides actionable implementation pathways for policymakers, development finance institutions, and housing authorities. The phased deployment strategy identifies Dubai, Singapore, and Switzerland as optimal Phase 1 pilot jurisdictions with established regulatory frameworks, enabling demonstration of viability before expansion to emerging markets. The blended capital facility architecture offers replicable templates for combining concessional and commercial capital with appropriate de-risking mechanisms. The social protection covenant structures provide legally enforceable mechanisms to prevent displacement and extraction, addressing primary political economy barriers to housing finance innovation.
Social Implications ― This research addresses fundamental justice concerns by prioritising climate-displaced households, bottom-income quartile populations, highest-risk geographies, and systematically excluded communities. The mandatory social protection covenants prevent housing resilience investments from triggering displacement or gentrification, ensuring transformation benefits flow towards vulnerable populations most requiring protection. By converting trapped equity into productive resilience capital while maintaining homeowner control through 51 per cent equity floors, the framework enables wealth preservation rather than extraction for marginalised communities facing compounded climate and affordability vulnerabilities
Incorporating Sustainability Agenda in Ṣukūk: Evidence from Bangladesh
No full textPurpose — As of December 2025, Bangladesh has issued six government ṣukūk and two corporate ṣukūk. All of these, except for the second corporate ṣukūk, have integrated a sustainability agenda for the use of proceeds. This paper aims to analyse the evidence on how these ṣukūk incorporate sustainability agendas; and to assess their impact on the ṣukūk issuance process and post-issuance reporting practices.
Design/Methodology/Approach — A descriptive research design, utilising both primary and secondary sources, was employed. Existing literature was reviewed to identify the drivers and challenges influencing the issuance of sustainability-based instruments globally. Additionally, the prospectuses and information memorandums for ṣukūk issued in Bangladesh were examined to identify sustainability-related disclosures. The regulations governing both government and corporate ṣukūk were also reviewed. Semi-structured interviews were conducted to validate the findings from the secondary data and to gain deeper insights into experiences related to incorporating sustainability agendas in ṣukūk.
Findings — The research finds that, although regulatory bodies have introduced initiatives to promote sustainability, additional steps are necessary. Additionally, third-party verification and impact reporting for sustainability-based issuances are inadequate. Although issuers generally demonstrate awareness of sustainability issues, there is a significant lack of investor demand, primarily due to insufficient awareness and incentives.
Originality/Value — To the best of the researchers’ knowledge, this is the first study to systematically examine how sustainability is operationalised in ṣukūk issuance in Bangladesh, addressing a significant research gap, as the existing literature predominantly focuses on theoretical frameworks and empirical analyses of causal impacts.
Research Limitations — This study examines ṣukūk in Bangladesh’s nascent market, which has seen only a few issuances. This may constrain the generalisability of the findings to more mature markets. The limited disclosure practices also restrict the ability to assess the causal impacts of the findings.
Practical Implications — The research findings provide valuable insights into the challenges an emerging market such as Bangladesh faces when incorporating a sustainability agenda in ṣukūk. These insights will aid in developing effective sustainability policies for Bangladesh and similar markets, standard setters, and multilateral organisations
Real Estate And Fixed Assets In The Late Ottoman Empire From A Zakah Perspective
No full textMost Fiqh scholars exclude real estate investments and fixed assets of businesses from Zakah. One of the main justifications for this position is that it has not been brought up by earlier scholars despite the prevalence of these assets. This study questions this assumption and explores whether these assets were insignificant in the economy of the late Ottoman Empire; hence, it did not require reassessment from the Fiqh point of view. Primary sources from several archives, as well as secondary sources on the economic history of the Ottoman Empire, were screened to test the hypothesis that privately owned real estate for investment and fixed assets of businesses were negligible in the overall wealth structure of the economy and only emerged at the beginning of the 20th century. The findings of this study confirm the hypothesis that privately owned real estate for investment purposes and fixed assets of businesses constituted a minor share of the economy. Therefore, the dominant Fiqh opinion reflected the continuous economic conditions during the Late Ottoman Empire. Consequently, a reconsideration from a Fiqh perspective could be justified because of today’s distinct wealth structure compared with ancient economies. This paper is novel in its multidisciplinary approach by conducting research in economic history to understand the context of Fiqh in Zakah and Islamic Economics
The Interplay between ESG Performance, Firm Value, and Sharīʿah Compliance in Indonesia
No full textPurpose ― Understanding how Environmental, Social, and Governance (ESG) practices interact with firm value within the framework of Sharīʿah compliance is essential, as Islamic capital markets integrate financial objectives with ethical and sustainable principles. The present study focuses on the bidirectional relationship between ESG performance and firm value. It investigates the moderating role of Sharīʿah compliance and examines the effect of external governance mechanisms on ESG practices in Sharīʿah-compliant firms in the context of Indonesia.
Design/Methodology/Approach ― The final sample consists of 155 public firms listed in the Indonesia Sharia Stock Index (ISSI). Structural Equation Modelling using Partial Least Squares (SEM-PLS) is employed to test the hypothesised relationships.
Findings ― The study finds a significant negative effect of ESG performance on firm value, suggesting that ESG investments may incur short-term costs that reduce immediate market valuation. In contrast, firm value significantly and positively influences ESG performance, indicating that firms with stronger financial standing are more likely to invest in sustainability initiatives. While Sharīʿah compliance does not moderate the relationship between ESG and firm value, it was found that it positively affects ESG engagement, reflecting the close alignment of Islamic values with sustainability. The study also reveals that external governance factors do not have a significant impact on ESG performance.
Originality/Value ― This study extends prior ESG research by modelling the ESG-firm value relationship as a bidirectional process and introducing Sharīʿah compliance as a moderator variable, thereby offering new insights into ethical investing and sustainable finance in Islamic capital markets.
Research Limitations/Implications ― The study adopts a cross-sectional design, which limits the ability to capture longitudinal dynamics and sectoral variations.
Practical Implications ― The study offers practical insights for managers, regulators, and investors by demonstrating how ESG engagement with Sharīʿah constraints may involve short-term value trade-offs while shaping sustainability outcomes in Islamic capital markets
Waqf Development Models for Sustainable Development Goals: An Analytic Network Process Approach
Full text linkPurpose — This study aims to propose an alternative waqf model aligned with the maqāṣid al-Sharīʿah (goals of Islamic law) that can contribute to achieving the Sustainable Development Goals (SDGs). The model seeks to address the gap in current waqf practices and provide a sustainable framework for fulfilling both social and religious obligations.
Design/Methodology/Approach — The research employs the Analytic Network Process (ANP) methodology, utilising expert and practitioner opinions to design and evaluate alternative waqf models. This approach ensures that the decision-making process is grounded in practical insights and aligns with Islamic principles.
Findings — The results indicate that, among the SDGs’ criteria, the social pillar holds the highest priority. From the perspective of maqāṣid al-Sharīʿah, the preservation of religion (dīn) is the most important factor in ensuring the fulfillment of religious obligations. Consequently, the study identifies the synthesis of waqf and microfinance as the most viable alternative waqf model to support both the SDGs and Islamic objectives.
Originality/Value — This study offers a novel integration of the waqf concept with maqāṣid al-Sharīʿah and the SDGs, addressing the practical gap between Islamic endowment practices and modern sustainability goals. It provides an innovative approach by combining waqf with microfinance as a viable alternative model, which has not been extensively explored in previous research.
Research Limitations — This study is limited by the scope of expert opinions and the geographical context of the research, which may influence the generalisability of the findings. Further research could explore the application of this model in diverse regions and contexts to validate its effectiveness.
Practical Implications — The proposed waqf model provides a strategic framework for policymakers, waqf institutions, and financial practitioners to implement waqf in a way that contributes to both social welfare and religious preservation. This model can be applied in designing waqf-based microfinance programmes, potentially improving financial inclusion and economic development in Muslim-majority regions
The Influence of Attitude and Knowledge of ʿĀmil Zakat on Palestinian Humanitarian Fundraising: None
Full text linkPurpose — Following the November 2023 issuance of the Indonesian Ulema Council (MUI) Fatwa No. 83 authorising the use of zakat funds for Palestinian humanitarian assistance, this study seeks to examine the influence of attitude and knowledge of Indonesian ʿāmil zakat (zakat workers, collectors, or managers) on their fundraising actions for Palestinian humanitarian assistance.
Design/Methodology/Approach — Data were collected in December 2023 from 29 ʿāmil zakat at National Zakat Institutions (Lembaga Amil Zakat Nasional, LAZNAS), representing 85.3 per cent of registered institutions, one month after the fatwa’s issuance. The questionnaire measured knowledge, attitude, and collection actions, analysed using partial least squares structural equation modelling (PLS-SEM).
Findings — The study finds that knowledge strongly influences both attitude (β=0.890, p<0.001) and collection actions (β=0.478, p<0.001), whilst attitude significantly affects collection actions (β=0.398, p<0.001). The results reveal partial mediation, with knowledge operating through dual pathways (both direct and via attitude) on collection actions. Together, knowledge and attitude explain 70.3 per cent of variance in fundraising actions.
Originality/Value — This study addresses a research gap by examining how ʿāmil zakat’s attitude and knowledge influence Palestinian humanitarian fundraising following MUI Fatwa No. 83 of 2023, demonstrating dual mechanisms— knowledge providing practical capacity and attitude driving motivational commitment—for Islamic philanthropic effectiveness.
Research Limitations/Implications — This study focuses on MUI Fatwa No. 83 of 2023 and Palestinian fundraising, limiting generalisability to other causes. The all-male senior management sample reflects current Indonesian LAZNAS leadership. Future research should examine diverse humanitarian causes and demographics.
Practical Implications — LAZNAS should invest in training, establish fatwa dissemination mechanisms, and strengthen operational capacity
The Willingness of Women Entrepreneurs to Patronise Islamic Banks in Nigeria
Full text linkPurpose — This study examines the factors influencing women entrepreneurs’ willingness to patronise Islamic banks in Nigeria, focusing on socio-economic and financial determinants.
Design/Methodology/Approach — Using an ordered probit regression model, the study analysed data collected from 357 women entrepreneurs across various regions in Nigeria. Key variables include education, marital status, business duration, and the availability of Sharīʿah-compliant financial products.
Findings — The results reveal that education significantly and positively influences women entrepreneurs’ willingness to use Islamic banks, with a coefficient of 0.393 (p = 0.003), highlighting the role of financial literacy. Conversely, marital status negatively affects this willingness, with a coefficient of -0.799 (p < 0.001), suggesting that single women are more inclined to use Islamic banking services. Additionally, longer-established businesses demonstrated less likelihood of engaging with Islamic banks, emphasising the need for tailored outreach strategies. Other factors, such as religion and geographical location, were found to have no significant effects.
Originality/Value — Some studies have examined the relationship between women’s entrepreneurial performance and Islamic banking, but are predominantly outside of Africa. This research offers novel insights into the socio-economic and financial factors that drive women entrepreneurs’ engagement with Islamic banking in Nigeria. By highlighting the relationship between education, marital status, and financial decision-making, the study contributes to the broader discourse on financial inclusion and sustainable economic development within the context of Islamic finance.
Research Limitations/Implications — The study is limited to women entrepreneurs in Nigeria and may not capture variations across other cultural or regional perspectives. Further research could explore the influence of cultural norms and rural-urban dynamics on Islamic banking adoption.
Practical Implications — The findings suggest that Islamic banks, such as Jaiz and Taj, should implement tailored financial literacy programmes and awareness campaigns targeting diverse demographic segments. These efforts could include workshops, webinars, and collaborations with business development organisations to enhance women entrepreneurs’ understanding of Islamic financial products. Additionally, culturally sensitive financial solutions can address the unique needs of married women entrepreneurs, further enhancing social equity. This study emphasises the critical role of education and targeted outreach in increasing the adoption of Islamic banking services among women entrepreneurs, ultimately contributing to financial inclusion and sustainable development in Nigeria
From Faith to Philanthropy: The Role of Iḥsān and Egalitarianism in Determining Cash Waqf Intention Among Generations Y-Z in Malaysia
Full text linkPurpose — The aim of this study is to determine how cash waqf intention is affected by religiosity, perceived iḥsān, and Islamic egalitarianism, as well as how perceived iḥsān and Islamic egalitarianism serve as mediators in the said relationships.
Design/Methodology/Approach — The study involved 208 respondents from Generations Y-Z (Gen Y-Z), aged 18 to 43 in Malaysia. The respondents were selected via purposive sampling while the derived data were scrutinised utilising Partial Least Squares Structural Equation Modelling (PLS-SEM).
Findings — The study reveals that perceived iḥsān and Islamic egalitarianism are significantly influenced by religiosity, but that religiosity has no direct effect on cash waqf intention. Additionally, both perceived iḥsān and Islamic egalitarianism significantly affect cash waqf intention, acting as mediators between the said intention and religiosity. This indicates that religiosity influences cash waqf intention through these intermediary factors.
Originality/Value — The novel contribution of this research lies in demonstrating the interconnected pathways through which religiosity influences cash waqf intention, as well as the roles of perceived iḥsān and Islamic egalitarianism as mediators in shaping cash waqf intention. Unlike earlier studies that positioned religiosity as a mediator between perceived iḥsān, Islamic egalitarianism, and intention to contribute to cash waqf, this research differs by treating religiosity as the independent variable, with perceived iḥsān and Islamic egalitarianism as mediators, thereby reversing the causal structure and offering a new conceptual perspective.
Research Limitations/Implications — The study’s generalisability is limited due to its student-dominated sample and cross-sectional design, which captures data at a single point in time. Future research should consider diverse samples and longitudinal approaches to improve the robustness of the findings.
Practical Implications — The study recommends that religious leaders, Islamic organisations, and policymakers should launch campaigns that highlight the religious and moral significance of cash waqf, while also promoting the values of iḥsān and Islamic egalitarianism to boost contributions. Furthermore, the implementation of flexible, income-based donation models could encourage wider participation by allowing individuals to contribute based on their financial capacity, thereby enhancing public engagement and charitable giving, particularly within the context of cash waqf
Systematic Insights into Cash Waqf Models: Applications, Challenges, and Innovations in Islamic Social Finance
Full text linkPurpose — This study aims to conduct a Systematic Literature Review (SLR) to analyse global cash waqf models, categorise their key dimensions, and provide insights into their challenges and potential for socio-economic development.
Design/Methodology/Approach — This study applies the PRISMA protocol to analyse research on cash waqf models. A total of 250 articles were first identified in the Scopus database, and 39 peer-reviewed studies were selected after thorough screening to ensure relevance. The coverage includes all publications from 2011 to 21 October 2024. These studies are grouped into six categories: methodological approaches, research models, regional focus, innovative purpose-based applications, cash waqf models, and key challenges.
Findings — The findings highlight the dominance of qualitative methods, the emergence of mixed-method studies, and the limited use of quantitative approaches. Research models include empirical, conceptual, and hybrid approaches. Regionally, Indonesia and Malaysia lead in innovation, while Turkey, Pakistan, and Singapore contribute unique, locally tailored practices. Innovative purpose-based applications span economic development, education, healthcare, agriculture, construction, and social welfare. Cash waqf models are categorised into traditional, innovative, and community-policy-institution-driven frameworks. Key challenges include regulatory inconsistencies, lack of transparency, limited public awareness, financial sustainability issues, institutional capacity gaps, and slow technological adoption.
Originality/Value — Many cash waqf models have been introduced in different countries, but most studies discuss them separately and do not explain how each model fits its institutional or social context. Previous SLR studies only mapped general trends or synthesised subtopics related to waqf. This study fills that gap by reviewing and grouping cash waqf models from past research to give a clearer view of how they are applied in different contexts and for different purposes.
Research Limitations/Implications — The study is limited to peer-reviewed English-language articles from the Scopus database, potentially excluding relevant works in other languages or databases. Future research should expand the scope to capture a broader perspective.
Practical Implications — The study provides guidance for policymakers, waqf managers, and institutions on designing cash waqf models according to specific goals, such as education, healthcare, or economic development. It also encourages stakeholders to adopt existing successful models or to innovate new ones that align with their objectives to ensure greater impact and sustainability