Islamic Finance

Islamic finance has the same aim as conventional finance which is to gain profit through financial activities. What distinguishes Islamic finance against conventional finance is Islamic financial activities must be in line with Shari'ah (Islamic Law). Financing in Islamic finance is divided into two categories: equity financing and loan financing. For loan financing, Islamic hire purchase is a contract widely used in Malaysia after Bai' Bithaman Ajil.

The impressive development of Islamic finance in the last three decades does not only attract wide attention from the people of the world, at the same time, it also pinned a hope that Islamic finance could offer a solid alternative and solution to the world crisis and the uncertain proposals for solving it. A coherent perspective for understanding real economic and financial problems as well as a viable alternative to the good financial practices to actualise human prosperity is avidly awaited.

Mainstream economics postulates the concept of scarcity as the defining concept in economics while heterodox economics denies the proposition of scarcity. In contrast, there is no clear stand among Islamic economists towards the concept of scarcity. This paper explores concept of scarcity ideologically and examines empirically the effect of scarcity thinking on human wants. The concept of scarcity is one of the unresolved issues in Islamic economics.

Corporate social activities have become major subjects because of their effects on the quality of life of citizens, in particular, and on society at large. Currently, there is an increased awareness of social responsibility due to the challenges faced by financial institutions (particularly Islamic banking) globally. This paper examines the influence of characteristics of the board of directors, that is, board size, board composition, and the separation of the roles of chief executive officer (CEO) and chairman, on corporate social responsibility (CSR) disclosure.

This study uses micro-econometric analysis to examine the impact of Islamic debt on firm value and firm financial performance by observing Malaysian firms. A number of significant contributions to corporate finance arise from this research in relation to Islamic debt instruments and firm financial performance. First, it provides evidence of the Islamic debt impact on firm value and firm financial performance. Second, and very importantly it provides new insights, adding substantially to the very few studies that have been conducted on these types of instruments.

Standard economics and policy prescriptions adopt the modernization thesis as its base, which says that developing countries can modernize by undergoing secularization and westernization. However,

The Holy Qur’an describes the non–Muslim’s choice of heresy over guidance with a use of the terms (shirâa or bay) and as a financial concept. It is notable that worldly words (economic terms) are used for many times to explain belief related matters in the Holy Book. Everything that Allah has created, (your) souls and wealth, are in His sovereignty. Since it is impossible to think that Allah owns them by procurement, believers are encouraged to work in the way of Allah and as ordered in His Ayah; “Thee do we worship, and Thine aid we seek” (Al-Fatihah, 3).

The aim of this paper is to demonstrate the fundamental requirements for building an Islamic Venture Capital. There is an extremely high youth unemployment rate in Islamic Countries. This is due to few numbers of SME companies and inability of governmental sector to offer jobs for all youth. Also Conventional banks finance big companies with long history of operation and refuse to finance new companies. So this new companies do not have any institution to support them.

Understanding the current structure and problems of Islamic finance (IF) requires an examination of how the contract types have evolved since first Islamic banks were founded in the mid-1970s. IF scholars have often turned to Islamic legal texts for alternatives to the interest-based system, suggesting working with contracts based in classical

This study examines the use of