Journal of Islamic Social Finance

The Contribution of Islamic Social Finance Towards Muslim Education in Uganda: An Analysis on the House of Zakat and Waqf Uganda.

Yusuf Kaweesa — 2024-06-30

A B S T R A C T

The objective of the study is to highlight the concept of Islamic social finance in Uganda that has existed through channels like Sadaq, Waqf and Zakat. Then identify the key role played by House of Zakah and Waqf Uganda in supporting Muslim education through its education department for the emancipation of the vulnerable and the poor while registering success in the SDG4 targets. The study is qualitative in nature adopting document analysis as methodology to review and discuss the concept of Islamic social finance in the identified documents and related sources with information on HZWU. The results were that HZWU has tremendously contributed to educating poor Muslims in different parts of the country across different levels and has achieved SDG4 targets of quality education, education for all, and has tried to avail education affordably and accessibly to the beneficiaries. This highlights the importance of carrying out more research on ISF in Uganda to help boost literature and boost its activities in the country. It would also attract industrialists to start thinking through possibilities of ISF financial tools being used to alleviate poverty and illiteracy by systematically structuring them to achieve sustainable development goals.

Islãmic Finance and Philanthropy: Fostering Economic Empowerment for Nigerian Muslim Women Entrepreneurs

Ismail Oseni Assayouti — 2024-06-30

This paper investigates the nexus between Islãmic finance and philanthropy as catalysts for economic empowerment among Muslim women entrepreneurs in Nigeria. Focusing on the dynamic framework of Small and Medium Enterprises (SMEs), the paper delves into the specific context of Nigeria to explore how Islãmic finance principles and philanthropic endeavors converge to empower Muslim women engaged in entrepreneurial pursuits. The research employs multidimensional methods, combining a thorough literature review, empirical analysis and in-depth case studies, probing the suitability of Islãmic financial products in the context of SME financing for Muslim women entrepreneurs and investigating the role of philanthropy in providing financial support for women-led SMEs. The article explores the challenges faced by Muslim women entrepreneurs in Nigeria, seeking to propose strategic interventions rooted in Islãmic finance and philanthropy to address the unique needs of these women. The paper reveals the extant academic discussion regarding the intersections of Islãmic finance, philanthropy and women's entrepreneurship, thereby offering operational impacts for financial institutions and philanthropic entities in formulating targeted strategies aimed at stimulating economic empowerment, financial inclusion and sustainable development among Muslim women entrepreneurs in the Nigeria.

Sustainable Mechanisms of Distributing Financial Assistance to Asnaf and B40 Entrepreneurs in Malaysia: Case Study of Bank Rakyat

Wan Nurliza Wan Ramli — 2024-06-30

The post COVID-19 pandemic has notably highlighted the adverse impacts on both the global and Malaysian economic landscape. This is particularly evident in Asnaf groups (zakat recipients) and individuals within the B40 category. Islamic financial institutions (IFIs) in Malaysia, more specifically, Bank Kerjasama Rakyat Malaysia Berhad, or Bank Rakyat, as a full-fledged Islamic Cooperative Bank, has played a pivotal role in providing financial aid to these vulnerable groups through zakat assistance across a spectrum of initiatives and programs. This study aims to explore Bank Rakyat’s initiatives, specifically its sustainable entrepreneur's program, namely “RAKYATpreneur” and “UNIpreneur”. Employing a qualitative approach, it reviews relevant literature on Islamic microfinance and analyses the effectiveness of the RAKYATpreneur and UNIpreneur programs. The study focuses on these initiatives as a key objective of Islamic banks, seeking to make a positive contribution to both society and economic development through the effective distribution of zakat for sustainability in the long run. Furthermore, this research provides some recommendations to revitalise Islamic social finance products by transforming the zakat mechanism from consumptive to productive distribution, thereby unlocking its full potential. It also proposes a potential structure using Qard contract for microfinancing purpose for ensuring sustained business cash flow for continuous feasibility.

Determinants of Intention to Comply with Islamic Financial Planning: An Exploratory Study

Auni Zulfaka — 2024-06-30

Financial planning guides a person in making major financial decisions such as spending, borrowing and investing. It enables one to comprehend how each financial decision affects other aspects of one's finances. For the past few years, numerous studies attempted to explore public awareness about the importance of financial planning. Realizing that Islamic banking and finance has become a force to be reckoned with in the global economic scenario and play an essential role in a Muslim's financial needs, this study aims to explore the intention to comply with Islamic financial planning among Muslims by taking a group of Muslim educators in Melaka as target respondents. A quantitative study was initially performed among the educators to identify factors influencing their intention to comply with Islamic financial planning. Through a rigorous review of the existing literature, the factors identified as the determinants of intention to comply with Islamic financial planning are religious norms, Islamic financial literacy, attitude on Islamic financial products and services, and financial behaviour. As a result, it is crucial to look into extensive information regarding the awareness of Islamic financial planning.

المصرفية الإسلامية في أفغانستان: التحديات وسبل العلاج دراسة تحليلية تقويمية في ضوء التجربة الماليزية

Hezbullah Naseh — 2024-06-30

الملخص

تهدف هذه الورقة البحثية إلى دراسة التحديات المصرفية الإسلامية في أفغانستان وسبل معالجاتها في ضوء التجربة الماليزية، ولا شك أن وجود التحديات والمشاكل هو من طبيعة ما تواجهه التجارب الجديدة في بدايات تأسيسها، لكن تحدي النجاح يتطلب البحث عن الحلول والمعالجات لها فيغلب عليها،ومن أفضل المعالجات أن يستفاد من تجارب الآخرين فهناك قواسم مشتركة بينهم، لذلك تناول البحث التحديات التشريعية، والاجتماعية، والسياسية، والاقتصادية، التي تواجهها المصارف الأفغانية في غالب الأمر، وقدم لها حلولا في ضوء التجربة الماليزية، وتعتمد هذه الدراسة على منهجي الاستقراء والتحليل بالإضافة إلى الدراسة الميدانية، وذلك من خلال جمع المعلومات من مصادر مختلفة وتحليلها وتقييمها، وتقديم حلول في ضوء التجربة الماليزية، فهي تجربة متقدمة وذات خبرة طويلة معتبرة تؤهلها أن تكون تجربة رائدة في مجال المصرفية الإسلامية .

وتأتي أهمية هذه الدراسة لتدعيم المؤسسات المالية (المصارف الإسلامية) من جهة، والمساهمة في تطوير الاقتصاد الإسلامي في البلد من جهة أخرى، وهذه الدراسة في حينها المناسب فقد طالب الحكومة بالوكالة (إمارة أفغانستان الإسلامية) من جميع المصارف الأفغانية أن تتحول إلى مصارف إسلامية، وتقدم منتجات إسلامية خالصة.