Journal of Islamic Finance <p><em>Journal of Islamic Finance</em> (JIF), published biannually (<strong>June</strong> and <strong>December</strong>), is a <strong><em>double blind peer-reviewed</em></strong> open-access journal of the IIUM Institute of Islamic Banking and Finance (II<em>i</em>BF), International Islamic University Malaysia (IIUM). </p> <p>The journal is designed to provide a platform for researchers, academicians and practitioners who are interested in new knowledge and discussing ideas, issues and challenges in the fields of Islamic banking, finance, accounting, business and economics.</p> <p><strong>Journal Scope</strong></p> <p>The scope of the journal includes, but is not limited to, Islamic banking and finance, Islamic capital markets, Islamic wealth management, issues on Shari'ah implementation and practices of Islamic banking and finance, zakat, waqf, takaful and comparative analysis of Islamic and conventional financial institutions. </p> <p><strong>Publication Frequency</strong></p> <p>The journal is published biannually in <strong>June</strong> and <strong>December </strong>in English.</p> <p><strong>Peer Review Process</strong></p> <p>A manuscript undergoes a double-blind review process with reviews managed by the Editorial team. Authors are required to upload revised versions and reply to the reviewers' comments. </p> <p>The final decision of the manuscript is subject to the Editor-in-Chief's decision after the reviewing process.</p> <p><strong>Indexing</strong></p> <p>Malaysian Citation Index (MyCite)</p> <p>Islamic World Science Citation Database (ISC)</p> <p>Index Islamicus</p> <p>Almanhal </p> <p><strong>Privacy Statement</strong></p> <p>The names and email addresses entered in this journal site will be used exclusively for the stated purposes of this journal and will not be made available for any other purpose or to any other party.</p> <p><strong>Disclaimer</strong></p> <p>Opinions expressed in articles and creative pieces published in this Journal are those of the authors and do not necessarily reflect the views of the editors, the editorial board or the publisher.</p> <p>Journal of Islamic Finance at <a href=""></a> is licensed under a <a href="">Creative Commons Attribution 4.0 International License</a>.</p> IIUM Press, International Islamic University Malaysia en-US Journal of Islamic Finance 2289-2109 Actuarial Valuation (Pricing) of Takaful Products. A Malaysian Experience <p>Takaful is Islamic insurance scheme and, is a policy based on the holistic approach of mutual cooperation, solidarity and brotherhood against unpredicted risk or catastrophes, in which the parties involved, are expected to contribute mutually within Maqasid al-Shari’ah. The nature of the principle of Takaful is fundamentally different from the principle of conventional insurance. Takaful provides insurance coverage to society, which practices based on the Shari’ah principles. In Malaysia, there are several companies, which offer Takaful operation and they are Takaful Malaysia Berhad, Takaful Etiqa Berhad, MNI Takaful Berhad and a few. In Takaful practices, rating or pricing Takaful products and services are determined based on the actuarial science. In this article however an attempt is made to analyse actuarial technique of valuation (pricing) of Takaful products.</p> Mohd Ma’Sum Billah Copyright (c) 2024 IIUM Press 2023-12-31 2023-12-31 12 2 149 161 10.31436/jif.v12i2.831 Role of Institutional Support in Economic Development: Investor Perspective. A Case of Government of Pakistan (GOP) Ijarah Sukuk <p>The study aims to investigate the role of Ijarah Sukuk in the economic development of the Pakistani business environment an initiative taken by the Government of Pakistan (GOP) by issuing Shari’ah-compliant investments at a national level during a period of deep financial crisis in the country. A modified questionnaire was used in this study to answer research questions and test the evolving hypothesis. Questionnaires containing 30 items were distributed and collected from 379 respondents as representative of Sukuk investors. The data collected was analyzed using Smart PLS. The findings suggest that within the recently reorganized Islamic Market of Pakistan, the variable with the greatest influence and strongest predictive power is Shari’ah Compliance. It is followed by market structure and subsequently the quality of underlying assets. However, once Shari’ah-compliant securities are introduced, investors are anticipated to seek the advantages offered by well-structured markets, such as yields, market liquidity, and the balance of Islamic Securities in both long and short-term Sukuk. This study represents a pioneering effort in Pakistan, as it examines the impact of fundamental investor characteristics and Shari’ah compliance on investment decision-making in the nascent Islamic Market. The findings of this study hold potential value for countries at the early stages of establishing Islamic banking cultures. Moreover, the results will prove beneficial for policymakers as they seek to expand the range of Islamic instruments available to investors through the utilization of Islamic modes of financing. Additionally, the study sheds light on how the market environment, regulatory measures, and other investor-oriented factors can be optimized to create a more viable and attractive environment for investors.</p> Uzma Kashif Ahmed Ali Sidiqui Hafiz Saad Shahzad Ali Copyright (c) 2024 IIUM Press 2023-12-31 2023-12-31 12 2 126 148 10.31436/jif.v12i2.830 Waqf Management Through Fintech in Malaysia <p>Cash Waqf has gained acceptability in Malaysia, with the Malaysian National Fatwa Council issuing a fatwa allowing cash Waqf in 2007. Waqf is seen as a strong instrument that could help Malaysia's poverty problems. Waqf management in Malaysia has to be strengthened and revitalized, nevertheless. The goal of this study to provide a technology-based model (FinTech) to modernise the administration and investment of Islamic charity endowments, known as Waqf as a solution for disadvantaged areas that were being suffocated by a lack of financial goods and services. The study concludes on the note that FinTech business is an alternative platform may be accessible at any time for the beneficiaries.</p> Zaki Ahmad Mushtaq Ahmed Mahvish Nawaz Mokal Copyright (c) 2024 IIUM Press 2023-12-31 2023-12-31 12 2 114 125 10.31436/jif.v12i2.829 Developing Sukuk Parameters from Maqasid Al-Shari’ah of Wealth: Contextualising from The Perspective of Selected Contemporary Islamic Scholars <p>Sukuk is an emerging instrument that matches savers and investors in the capital market. Over the years, Sukuk operations in the capital market worldwide have been subject to criticism because of their impotence to fully adopt Shari’ah principles. Establishing a Sukuk parameter could be the key to aligning Sukuk with Shari’ah principles, where the Maqasid al-Shari’ah of wealth could serve as a basis for developing the parameter. As such, this study identifies the wealth perspectives of Maqasid al-Shari’ah and contextualises the dimension of wealth according to Maqasid al-Shari’ah based on the perspective of renowned contemporary Islamic scholars. Using Maqasid al-Shari’ah of wealth as an underpinning framework, this study proposes a baseline for the Sukuk parameter. The finding suggests that the Sukuk parameters must be formulated based on the Maqasid al-Shari’ah of wealth (adequate level as an ideal level in wealth ownership). Apart from Maqasid al-Shari’ah of wealth ownership, the parameter encompasses Maqasid al-Shari’ah of wealth acquisition and Maqasid al-Shari’ah of wealth circulation/development. As part of the implications, the proposed parameters would provide a baseline for establishing the Sukuk parameter. This study implies that contextualising Sukuk and its issuance using the Maqasid al-Shari’ah approach would enable Sukuk to achieve its ultimate objective of promoting Maslahah (well-being).</p> Melzatia Shinta R. B. Radin Firdaus Sorna Umme Saima Andrew Ebekozien Copyright (c) 2024 IIUM Press 2023-12-31 2023-12-31 12 2 101 113 10.31436/jif.v12i2.828 Floor-Pricing Without Put Options: Hedging by Trade Contracts in Islamic Finance as Exemplified in Agriculture Production <p>Conventional methods of hedging, such as the use of put options, have long existed in trade with their use being justified for managing price risk. However, many Shari’ah scholars find issues in their implementation on various grounds that are based on the principles of achieving economic equity. The method proposed here aims to achieve floor-pricing as a hedging tool for producers, using common accepted trade contracts. This aims to avoid existing contentions in hedging amongst differing scholarly views, while recognizing proper rights and obligations of stakeholders. This conceptual paper analyses the needs of hedging in the context of an agricultural production setting, touches on currently known hedging mechanisms together with their known issues and puts forth an alternative method. Implementation issues of this method is discussed and proposed ways to address them are included. This method does not address hedging for buyers and utilizes the Salam contract, which is not suitable for addressing hedging of currency exchange.</p> Imran-Firdauz Abu Bakar Copyright (c) 2024 IIUM Press 2023-12-31 2023-12-31 12 2 86 100 10.31436/jif.v12i2.827