Journal of Islamic Social Finance

Beyond Management Challenges: A Demise of a Cash Waqf Foundation

Mohammed Kabiru Musah, Zakari Muntaka Alhaj, Aznan Hasan, Dawda Abdul Aziz — Tue, 19 Dec 2023 00:00:00 +0800

This study investigates how management challenges have caused the demise of the Ahlussunnah Wal-Jamaah Waqf Foundation (ASWAJWF) in Ghana using human resource theory and the behavioral theory of leadership. Interviews were conducted with 24 participants who were directly involved in the collection of cash waqf and the management of ASWAJWF in ten of the 16 regions of Ghana. The findings attributed ASWAJWF’s demise to leaders’ misunderstanding of waqf as a typical sadaqah, lack of investment initiatives to sustain the fund due to managerial incompetence, and failure to consult and heed voluntary expert advice. This is the first study to examine Ghana's waqf management challenges. It is also the first waqf study to use theories of demise to explain how management challenges caused a waqf institution to ‘die’. Its exploratory nature ignites and invites other researchers to examine the reasons for the demise/closure of cash waqf institutions, thus serving as a reference for researchers. Finally, we expect this study to draw the attention of cash waqf stakeholders, including policymakers, to the need to provide effective management and governance frameworks/tools to revive cash waqf and to safeguard the interests of donors, beneficiaries, and the public at large.

Behavioral Intentions of Prospective Investors in Islamic Securities Crowdfunding: Insights from the Indonesian Market

Laily Dwi Arsyianti, Ahmad Aulia Amrullah, Irfan Syauqi Beik — Tue, 19 Dec 2023 00:00:00 +0800

The community's and the MSMEs' need for Islamic investment instruments to expand their business has urged an innovation in Islamic finance. Islamic Securities Crowdfunding (iSCF) was first licensed to operate in Indonesia on August 19, 2021. iSCF's users continue to increase rapidly, however, the growth of investors for this instruments have not yet followed the growth of users. This study aims to analyze the characteristics and factors that influence the behavioral intention of future investors of the iSCF. UTAUT 2 was used as reference model. The results of this study indicate that only facilitating conditions and price value variables have captured a positive and significant effect on investment intention. Furthermore, the habit and investment intention show positive and significant effect on investment behavior. Therefore, these results encourage the provider of ISC to continue maintaining service to the platform users as their potential future investors, and promoting periodically the ISC products.

Exploring Zakat Payers’ Attitudes Determinants on Trust in Zakat Institutions

Zulfikri, Salina Kassim, Anwar Hasan Abdullah Othman — Tue, 19 Dec 2023 00:00:00 +0800

This paper aims to explore the zakat payer determinants on intention to trust zakat institutions. This study is qualitative in nature. It utilized an extensive literature review to analyze the relevant studies to explore the factors. This study proposed a framework based on the theory of planned behaviour. The results indicate that reputation, satisfaction with zakat distribution, service quality, and disclosure practice are the zakat payer attitude determinants influencing trust in zakat institutions

Public Awareness, Knowledge, and Perception Towards Takāful in Afghanistan

Ghafoorzai Shaiq Ahmad, Nur Farhah Mahadi — Tue, 19 Dec 2023 00:00:00 +0800

Abstract

The history of insurance in Afghanistan goes back to the 1960s with a recorded 2019 premium volume of USD 18.5 million and almost 40,000 policy holders from across the country. On the other hand, Afghanistan is among the countries which have not been adopted the Takāful business yet. However, a legal framework for Takāful has been developed recently and in near future, Takaful products are going to be launched. Therefore, this research examines the awareness and knowledge level of the public towards Takāful in Afghanistan. In addition, public perception has also been investigated to understand how the Afghan public perceives Takāful. In this study the quantitative method is adopted through self-administered questionnaire which were distributed to 200 respondents from the public of Afghanistan. The data collected was analysed using Statistical Package for Social Science (SPSS) version 25 and Microsoft Excel. The findings of the research indicate that the knowledge level of public of Afghanistan on Takāful is relatively good while the awareness level is low-middle. However, the majority of respondents are willing to contribute and subscribe to Takāful. Linear multiple regression analysis was used and found that both independent variables, i.e. awareness and knowledge, are statistically significant with 95% confidence in influencing public perception towards Takāful. This research provides some suggestions and recommendations for the betterment, development and improvement of Takāful in Afghanistan. The findings of this study are expected to provide guidelines for policy makers in Afghanistan as the results may also motivate the financial industry players to promote and develop their Takaful business strategies.

الدور التنموي الاقتصادي والاجتماعي للزكاة

لوكريز فاطمة الزهراءأ, محمد محمد حمير السويحلي — Tue, 19 Dec 2023 00:00:00 +0800

ملخص البحث

تهدف هذه الدراسة الى التعرف على مفهوم التنمية في الفكر الاسلامي و ربطها بالزكاة من خلال معرفة الدور التنموي للزكاة باعتبارها من أهم موارد النظام المالي الإسلامي،واعتمدت الدراسة على المنهج الوصفي التحليلي من خلال التطرق إلى الزكاة ونظريات التنمية في الفكر الاسلامي، و كذا وصف وتحليل الدور الذي تلعبه الزكاة في تحقيق التنمية الاقتصادية والاجتماعية، وخلصت الدراسة الى مجموعة من النتائج أهمها أن الزكاة تؤدي دورها التنموي من خلال تحقيق التنمية الاقتصادية و الاجتماعية، سواء من حيث تحفيز الاستثمار وزيادة الانتاج أومن حيث تحقيق مناخ اجتماعي وسياسي مستقر وذلك بتخفيض معدلات الفقر والبطالة.

Abstract

This study aims to identify the concept of development in Islamic thought and link it to zakat by knowing the developmental role of zakat as one of the most important resources of the Islamic financial system. The study relied on the analytical descriptive approach by addressing zakat and development theories in Islamic thought, as well as describing and analyzing the role that zakat plays in achieving economic and social development. The study concluded with a set of results, the most important of which is that zakat plays its developmental role by achieving economic and social development, whether in terms of stimulating investment and increasing production or in terms of achieving a stable social and political climate by reducing poverty and unemployment rates.