Poverty is a major economic challenge, and small and medium enterprises (SMEs) play a crucial role in Indonesia's economy, highlighting the potential role of Islamic microfinance institutions (IMFIs) in alleviating poverty in Indonesia. However, IMFIs encounter obstacles, including agency problem, inadequate infrastructure, and unfavorable socioeconomic conditions. Baitul Maal wa Tamwil (BMT), an IMFI in Indonesia, offers unique features and a social development program to enhance its poverty alleviation impact. While there are many studies being conducted on BMT in Indonesia, studies on agency problem specifically related to Sharia-compliance towards achieving operational efficiency in BMT are still lacking and require a thorough comprehension. This study aimed to identify the nature of the agency problem faced by BMT in providing finance to microenterprises in Indonesia, investigate the reasons behind this problem, evaluate BMT's efforts to minimize it, and propose a strategy to overcome this issue in providing finance to microenterprises in Indonesia. This study uses qualitative methods involving 85 participants from active certified Sharia cooperatives, which were part of the oldest BMT established in each province, as well as experts from regulators and academics. Data was collected through interviews, observation, and document analysis. The data was then analyzed using NVivo Qualitative Data Analysis Software (QDAS), and the findings were interpreted. Qualitative reliability techniques were used to assess the reliability of results, with transcripts reviewed to prevent errors and code descriptions, and two independent experts in Islamic microfinance verified the topic's authenticity and obtained feedback. The study reveals agency problem in microenterprise financing at BMT, including adverse selection, ex-ante moral hazard, post-ante moral hazard, and untrustworthy behavior among management staff. The agency problem arises from human Resource (HR) and governance issues, member factors, and inaccurate financing analysis, exacerbated by business conditions that can lead to improper contract selection and BMT's financial stability. BMT addresses these issues through standardizing SOPs, approving staffing and financing SOPs, and regular evaluations. BMT enhances HR capacity through online or offline training, including Sharia finance, bookkeeping, training, and information system facilitation. Despite funding constraints and pandemic conditions, BMT officers conduct member coaching and mentoring activities. BMT is also implementing a strategy to enhance microenterprise financing, focusing on governance, HR capacity, and financial literacy. The plan includes regular staff visits, tightened supervision, recruitment strategies, coaching, mentoring, and training. Special programs and collaborations with universities, Sharia scholars, and policymakers are also being considered. The findings show that BMT's financing performance is negatively impacted by low Islamic financial literacy among staff and poor governance. These findings highlight agency problem in microenterprise financing in BMT, emphasizing the need for regulatory clarity, supervisory structure enhancement, and collaboration between BMT associations and institutions. The significance of research findings can be enhanced through consistent methodologies in different settings or varied methodologies within the same research environment.

The promotion of planned and balanced economic development was enjoined on the Federal Government of Nigeria by Section 16(2) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) as one of the fundamental objectives and directive principles of State policy. This objective aligns with the objectives of the Shari’ah and the Sustainable Development Goals (SDGs). The Central Bank of Nigeria (CBN) pursued this objective through the financial inclusion initiative, among others, and in the process utilized its delegated legislative powers to license the operation of Islamic banking in Nigeria in 2011. The CBN aimed to financially include the largely Muslim northern Nigeria and achieve 80% financial inclusion by the year 2020. The access to finance survey report of 2023 reveals that 56% are formally financially included, while 11% are informally financially included. This results in a total of 67% financially included and indicating a shortfall of 13% from the 2020 financial inclusion target. Extensive use of debt-based financing contracts by Islamic banks in Nigeria is said to continue to keep away the conservative northern Nigerians from accessing the available financing products, despite the financial inclusion efforts by the CBN. This situation arises because most northern Nigerians see little or no difference between conventional and Islamic banks in their financing operations. This study thus appraises the regulation and policy development for financial inclusion in the northern states of Nigeria and how Islamic equity financing can deepen the financial inclusion in these states. The study relies on primary data sourced from interviews, and official publications, as well as secondary data from working papers, articles, e-books, websites, and online resources. ATLAS.ti 24 software is used for coding and in analysing interviews’ results. This study adopts qualitative research approaches which consist of content analysis of relevant literature, and qualitative analysis of interview outcomes. The content analysis is used to define the status of financial inclusion in Nigeria, regulation and policy development around financial inclusion in Nigeria, the preference for and suitability of Islamic equity financing contracts as veritable tools for furthering financial inclusion in northern Nigeria. The interviews provide insights on: (i) the effectiveness of the regulations and policies on financial inclusion in northern Nigeria; and (ii) the wider preference for and suitability of Islamic equity financing contracts for financial inclusion in the northern region of Nigeria. The main findings of this study are: (i) due to CBN’s efforts and initiatives there is an appreciable awareness about financial inclusion, but more efforts are still needed to be done in northern Nigeria; (ii) Islamic equity contract is used mostly for deposit mobilization, but sparsely used for financing; and (iii) there is positive perception of, and preference for Islamic equity financing contract in northern Nigeria. Thus, this study recommends that Islamic Banks in Nigeria should increasingly use Islamic equity financing contracts in their financial asset creation. Furthermore, the CBN, as the key regulator of Nigeria’s financial industry, should issue and enforce regulations and guidelines that will facilitate the expansion of the country’s financial inclusion drive, which can be done through Islamic equity financing and contracts.

The Republic of Tajikistan (RT) is strategically positioned to become a leading market for Islamic banking and finance (IBF) in the Central Asia Region (CAR) to serve the national interest. Recognized as one of the fastest-growing markets for IBF, the country has made significant strides toward industry development through regulatory initiatives and legislative reforms. Despite the promising growth potential, the Islamic Banking (IB) industry may face challenges that may hinder its development in the country. This study aims to explore the issues and challenges of the IB industry and solely concentrates on the RT with focus on the post-introductory phase of IBF. Given the limited body of research on this topic, especially from a qualitative perspective, the study aims to fill the gap by drawing practical visions from semi-structured interviews with eleven bankers, experts, and academicians familiar with the local financial market. The obtained data is thematically discussed and analyzed and the findings highlight critical areas for improvement, including; (1) Dealing with influencing factors on adopting IB; (2) Effectively positioning IB in the local financial market; (3) Presenting the unique features of IB; (4) Practicing effective Shari’ah governance (SG); (5) Implementing good corporate governance (CG); (6) Developing the ecosystem of the local financial market; (7) Enhancing legal and regulatory frameworks; and finally, (8) Other challenges, opportunities and the way forward. This study provides valuable insights for stakeholders, offering practical recommendations for better decision-making and fostering a deeper understanding of the unique challenges facing the IB industry in the country. Finally, the findings contribute to the existing literature on IB and serve as a foundation for future research in this emerging field.

This study investigates the critical success factors for intention to family takaful adoption in Malaysia. The research explores the direct relationships among performance expectancy, effort expectancy, price value, hedonic motivation, social influence, facilitating conditions, and habits concerning the behavioral intention to engage in family takaful in Malaysia. Additionally, the study examines the inverse relationship between behavioral intention and trust. A total of 389 respondents were surveyed using a convenience sampling technique and quantitative methods. Hypothesis testing employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the relationships between variables. The findings indicate that Muslim behavioral intention to participate in family takaful in Malaysia is significantly influenced by performance expectancy, effort expectancy, facilitating conditions, hedonic motivation, and price value. Moreover, the association between family takaful participation and behavioral intention is mediated by trust. Trust influences the behavioral intention to participate in family takaful. However, habit and social influence do not significantly affect the behavioral intention to engage in family takaful in Malaysia. This study introduces an extended UTAUT2 model, untested in the context of family takaful, contributing to Islamic financial product marketing and consumer behavior.

One of the most challenging issues facing the conversion of conventional banks to Islamic banks in Libya is identifying the factors that ensure the successful implementation of this conversion process. This study investigates the determinants of employees' readiness to convert to Islamic banking in the Libyan commercial banking sector. To address the above, this study adopts the organisational change theory, in particular, the climate of change combined with personal values theory as the guiding theories of the research. The study encompasses nine determinants as independent variables. These are general support by supervision, trust in leadership, participatory management, cohesion and politicking, involvement in the change, ability of management to lead change, attitude of top management toward the change and openness to change whereas Readiness for change is the dependent variable. Two more variables ( openness to change and nature of change) were inserted to test their moderating effect between two independent variables (involvement and openness) respectively and the dependent variables. To analyse these relationships, the study adopted a quantitative approach using Structural Equation Modelling (SEM). The study adopted a self-administered questionnaire survey where a total of 482 surveys were distributed of which 316 were useable. The findings of this research revealed that general support by supervisors, involvement in the change process as well as openness to change have a positive and significant impact on employees" readiness for conversion to Islamic banking. Furthennore, the findings showed that trust in leadership, participatory management, attitude of top management are statistically insignificant. Lastly, the study found a significant full moderation effect of openness to change on the relationship between involvement in the conversion process and employees' readiness to convert to Islamic banking. Moreover, a partial significant moderation effect was also found for the nature of change (imposed and voluntary) with negative direction between openness to change and employees' readiness for conversion. This means that imposed change does not affect employees' readiness for the conversion regardless of the openness level of employees whether high or low. In addition, the findings also indicated that the applied theories using the (OCQ-C, P, R) and (PVQ) instruments are valid for predicting employees' readiness to convert to Islamic banking in Libya. Recommendations of the study will assist bank managers, regulators, and the Central Bank of Libya to identify the obstacles related to human factor that hinder the conversion process. The study concludes that the positive impact ofleaders' supportive climate, openness values and engaging employees in the conversion process for the successful and smooth transfonnation process will have a long-lasting effect to solve problems resulting from the lack of employees' readiness to convert and hence reducing employees' resistance to change.

The takaful industry in Malaysia has begun to actively offer microtakaful products and services to the B40 population, following the issuance of the Discussion Paper on Microinsurance and Microtakaful by Bank Negara Malaysia (BNM) in 2016. However, the participation rate of the B40 population, a demographic characterised by lower-income levels continues to remain low. The objectives of this study are to (i) assess the main issues and challenges faced by the takaful industry on the current microtakaful initiatives, (ii) structure a microtakaful model that practically and smoothly collates and distributes products and services to the B40 in Malaysia; (iii) explore a sustainable funding mechanism for the proposed microtakaful model which utilises various sources of funding, including Islamic social finance instruments, namely zakat and waqf; and (iv) increase the effectiveness of the proposed microtakaful model’s financial literacy and awareness programme for the B40. The study utilises a thematic literature review as well as a one-to-one interview with takaful industry stakeholders, namely the key personnel of takaful operators (TO), Shariah committee members, a member of a board of directors (BOD), and two representatives of State Islamic Religious Councils (SIRCs). The findings and feedback are then utilised to produce a microtakaful framework that serves as a foundation for the formulation of a robust microtakaful model that not only addresses the challenges, but also ensures an effective and efficient distribution of products and services, tailored to the unique needs of the B40. The interviews explored diverse funding sources, including Islamic social finance instruments such as zakat and waqf, in order to develop a financial framework that would ensure long-term stability and resilience of the microtakaful model, which aligns with the broader objective of enhancing financial inclusivity among the B40 population. In addition, a tailored financial literacy and awareness programme will also be established to encourage effective participation in microtakaful products among the B40. The study provides evidences revealing concerns among the key stakeholders in relation to product oversupply, limited awareness and literacy, and regulatory compliance that overshadow the genuine needs of the B40. The study then progresses to propose strategies for the structuring of an effective microtakaful model, emphasising on Shariah compliance, fund management, non-governmental organisations’ (NGOs) involvement, and community engagement. To address the critical issue of sustainable funding, the study identifies a number of solutions involving corporate social responsibility (CSR) funds, increased government participation, collaboration with state entities, and effective marketing. The study highlights improvements in financial literacy programmes for the B40 through the proposed microtakaful model, emphasising stakeholder coherence, poverty alleviation and technological leverage. In conclusion, the study offers a comprehensive understanding of challenges and solutions in advancing microtakaful initiatives in Malaysia. The envisioned microtakaful model is expected to enhance coordination, sustainability, and penetration rates among the B40.

Digital banking technology has enabled banks to provide digital banking services through internet banking and mobile banking, better known as digital banking. Driven by increased internet usage and the participation of the younger generation, digital banking has become a vital aspect of financial services for Indonesian banks, including Islamic banks. Furthermore, the impact of the COVID-19 pandemic has amplified the importance of banks' adoption of digital technology. However, the adoption of digital technology poses significant challenges, primarily due to a sizable investment, while Indonesian Islamic banks encounter a limited budget to invest in digital technology. Therefore, Islamic banks need to select a priority for services in digital banking. This study identified five objectives concerning digital banking adoption by Islamic banks in Indonesia: (i) to explore the current state of digital banking adoption among Islamic banks in Indonesia by analysing documents of Islamic banks; (ii) to explore the priority of the type of services in digital banking by Islamic banks in Indonesia from the bank perspective; (iii) to explore determinants in considering the priority of the type of services in digital banking by Islamic banks in Indonesia from the bank perspective; (iv) to examine bank-specific factors in determining the decision to adopt digital banking among banks offering Islamic banking services; (v) to examine market-specific factors in determining the decision adopting digital banking among banks offering Islamic banking services. This study adopted qualitative and quantitative methods, namely, document analysis to explore the current state of digital banking adoption, Analytic Network Process (ANP) to explore the priority of the types of services in digital banking, and Logistic Regression to examine determinants influencing digital banking adoption. The finding shows that Islamic banks in Indonesia have offered almost all the services in digital banking by using multi-channel, except for protection and investment services. The findings reveal that fund transfer and payment services emerge as the highest-priority services, while technology—specifically its security and associated risks—is identified as the most crucial criterion to be considered for digital banking services adoption by Islamic banks. Furthermore, all the bank-specific factors, along with market-specific factors, are found to significantly influence the adoption of digital banking among banks offering Islamic banking services, except for the labour cost. In particular, the COVID-19 pandemic has encouraged digital banking adoption by banks. Integration of multiple theories and inclusion of the Sharia aspect into the model have contributed to extending theories in the study of technology adoption. Considering the context and sample selection, this study is limited to digital technology adoption in the context of Islamic banking in Indonesia and does not consider the case of conventional banking. This study recommends that Islamic banks design a roadmap to implement the adoption of digital banking services based on the priority of service types offered by Islamic banks. For regulators, the findings contribute to policymakers for consideration in promoting digital banking development. Unlike other studies in digital banking, this study integrated multiple theories, applied mixed methods, and incorporated the Sharia aspect into the ANP model to prioritise digital banking services in Islamic banking from the bank’s perspective, making it unique.

Despite the increasing focus on Environmental, Social, and Governance (ESG) practices worldwide, the complex interplay between ESG and firm risk remains insufficiently examined, particularly within the emerging markets of the ASEAN and GCC regions. This thesis seeks to fill this gap by investigating how ESG practices influence different aspects of firm risk and by evaluating the moderating effect of country ESG scores on this relationship. Utilising a comprehensive dataset that encompasses 643 firms, resulting in 2,898 firm-year observations across 12 countries within these regions from 2011 to 2021, this research further dissects the distinct impacts of the individual ESG components on firm risk (systematic, total, default, and credit risk). Furthermore, this study reveals a compelling similarity between Shariah-compliant and ethically oriented companies that adhere to ESG principles, both emphasising ethical investment and risk mitigation as core business strategies. This convergence highlights how ethical frameworks, driven by Shariah compliance or broader ESG commitments, align business practices with risk management objectives. This study uses a panel regression analysis to examine the study hypotheses and achieve the study aims. Rooted in stakeholder theory, the results indicate that ESG practices, particularly those related to the environment (ENV), significantly reduce systematic and credit risks, echoing the principles of risk mitigation theory by highlighting the role of ESG in protecting against market volatility and bolstering creditor confidence. However, through the lens of managerial opportunism theory, the study also suggests that ESG engagements could be motivated by managerial self-interest, affecting the firm's risk profile. Crucially, the research highlights the significance of the institutional context, as posited by institutional theory, in amplifying the efficacy of ESG practices in risk reduction. In jurisdictions with robust sustainability regulations, ESG practices exert a more pronounced influence in curbing risks, particularly regarding total risk. The findings offer valuable implications for policymakers, investors, and corporate leaders in the ASEAN and GCC regions, underlining the importance of integrating ESG into risk management strategies and the significant role of institutional contexts in shaping these dynamics. The study also adds to the literature on the effects of ESG practice on risk within the specific context of ASEAN and GCC markets, contributing novel insights to the body of knowledge. Contributing novel insights into the effects of ESG practices on firm risk within specific emerging markets, this research offers a solid foundation for strategic policy development and further academic exploration.

Access to affordable healthcare remains a major challenge in Sudan, particularly for low-income populations. Health Micro-Takaful (HMT) offers a potential solution by providing financial protection against medical expenses. This study investigates the factors influencing HMT adoption in Sudan using the Theory of Planned Behaviour (TPB), with awareness and affordability as extended variables and behavioural intention as a mediator. It also explores policy-related challenges and opportunities for HMT implementation. A mixed-methods approach was applied. Quantitatively, data from 428 respondents were collected via an online questionnaire and analysed using Structural Equation Modelling (SEM) with SmartPLS 3.9. Qualitatively, in-depth interviews with key stakeholders and policymakers were thematically analysed to capture opportunities and challenges. Findings show that attitude, perceived behavioural control, and subjective norms significantly influence adoption when intention is included as a mediator, while awareness and affordability were insignificant. In the direct model, attitude and awareness were significant predictors, but affordability, perceived behavioural control, and subjective norms were not. Qualitative results reveal that lack of specific regulation, economic instability, and limited public awareness hinder adoption, while willingness for policy reforms, digital solutions, and support from Zakat funds and NGOs present key opportunities. This study contributes to the literature on HMT in developing economies by highlighting behavioural, economic, and policy dimensions of adoption. It provides practical insights for regulators, insurers, and development organizations. Strengthening regulatory frameworks, leveraging technology, and raising public awareness are critical for sustainable implementation. Future research should assess the long-term impact of HMT on healthcare access, explore hybrid funding through waqf and CSR, and conduct comparative studies across contexts.

Internal Shariah audit in Yemen, which is neither centralised nor governed by the Central bank of Yemen (CBY), had caused the adoption of different standards and guidelines as well as policies and practices by Islamic banks. Previous studies found gaps in the banks' internal audit, such as Expectation-Performance Gap, Deficient Performance Gap and Deficient Standards Gap. This study examined the effectiveness of internal Shariah audit in Islamic Banks in Yemen by exploring the mutual relationship between the internal Shariah audit and key elements and principles as factors of Shariah governance based on the Institutional Theory. The Institutional Theory discusses the organisation's normative pressure, coercive pressure, and mimetic pressures arising from the surrounding environment affecting and interacting with the Islamic bank. This research aims to examine their direct impact on internal audit effectiveness regarding SSB, internal Shariah audit mechanism, internal Shariah auditor requirements and, finally, internal Shariah audit practices. In addition, the research aims to assess the current Islamic Bank internal Shariah audit policies and practices adoption of external regulatory requirements and best practices. The third objective is to assess the coherence of the internal Shariah audit framework and effectiveness in Islamic banks based in Yemen to enable internal Shariah audit effectiveness. The primary analysis technique is the pattern matching technique of documented policies and procedures and interview findings for comparing predicted patterns with ones that have been empirically observed and identifying any variance of gaps. The study found the lack of coordination and harmony between external and internal regulatory perspectives on internal Shariah audit requirements as well as the lack of similarity of standardization across Islamic Banks are indicative of lack of coherence of internal audit effectiveness within a self (institution) governance rather than an external governance system. It presents an insightful, unique finding that may affect coherent, consistent, and comparable internal Shariah audit effectiveness development among Islamic banks in Yemen. This study concluded that Institutional Theory is relevant to describe and distinguish the pressures exhibited by the Islamic bank of Yemen and Saba Islamic bank. An importance and uniqueness of this study is that both pertinent external and internal factors related to internal Shariah audit effectiveness are evaluated. This is because analysing only one or a few factors in evaluating any function effectiveness in prior studies may not lead to reliable results. In addition, using primary data along with interviewing key staff in both banks strengthen the findings to be useful as policy guidance for regulators and for future research.

The thesis explores impact of using the FinTech tools of crowdfunding and digital payment on the practice of good governance at Islamic social finance institutions in order to improve the adoption of good governance and ultimately enhance stakeholders’ protection. The study is qualitative in nature, employing singular case study research on Direct Aid Society which is a leading institution in the Gulf and Middle East region. It is the first institution in the field of social finance that adopts good governance system in The State of Kuwait. The researcher applies multiple methods of data collection including library research, official document analysis, and interviews with 10 respondents comprising governance and FinTech leaders as well as regulators and an external governance expert. The in-depth face-to-face interviews furnished valuable data that was then generated, rearranged, and refined using the NVIVO 14 software. It was found that the application of good governance and the use of the FinTech tools of crowdfunding and digital payment enhances institutional performance and increases stakeholders’ protection at Islamic social finance institutions. In addition, the issues and challenges that accompany the application of good governance at Islamic social finance institutions such as lack of transparency, trust, disclosure, and accountability can be addressed using the FinTech tools of crowdfunding and digital payment. Therefore, there is a positive impact of using the two selected FinTech tools on the application of good governance standards at Islamic social finance institutions in terms of enhancing the second and third governance standards namely financial stability as well as transparency, disclosure, and accountability. This is achieved by using the FinTech tools of crowdfunding and digital payment, which enhances the application of good governance in the context of this study.

Millions of people in Bangladesh live in extreme poverty because of their failure to access formal financial services. Consequently, they are unable to participate in different development projects and, hence, cannot fund their children's education, accumulate assets, and take advantage of various economic opportunities. The present frameworks of Islamic microfinance are unable to uplift the overall socio-economic conditions of the poor in this country. Therefore, this study aims to explore how Islamic microfinance might assist poor people in living in a culture that values dignity and respect and in improving their socioeconomic conditions. Specifically, the objectives of this study include: i. To identify the major challenges in implementing the Islamic microfinance system in Bangladesh; ii. To determine the best possible ways to effectively implement the Islamic microfinance system in Bangladesh; iii. To propose a new fintech- and partnership-based Islamic microfinance framework that will be appropriate for the poor people of Bangladesh; and iv. To assess the ways to enhance financial inclusion and economic empowerment through Islamic microfinance in Bangladesh. This study uses the institutional theory of savings, financial intermediation theory, and the theory of financial inclusion to explain the theoretical framework of the research. It employs a qualitative method in which data were acquired from both primary and secondary sources. A standard open-ended questionnaire was also used to elicit expert opinions from 15 experts in Islamic finance working in various Islamic financial institutions in Bangladesh. The findings of this study point to the primary reasons why Bangladesh continues to lag behind in successfully implementing Islamic microfinance products and services, including people’s ignorance, multiple borrowings, ensuring Shariah compliance, lack of resources and accountability of Islamic microfinance institutions (IMFIs), ineffective promotion, lack of experts, inadequate government assistance, lack of trained and skilled field workers, and mission drift. It also elaborates on the ways Islamic microfinance can be effectively implemented in this country, like conducting effective training programmes for both field workers loan recipients, raising public awareness and government support, enhancing the monitoring system, ensuring proactive approaches by Islamic commercial banks, introducing Islamic finance courses both public and private universities in Bangladesh, etc. Here, a new fintech- and partnership (Mudarabah, Musharakah, and Qard-al-Hasan)-based framework of Islamic microfinance is proposed, and the results have revealed that if implemented properly by IMFIs in Bangladesh, it can be hugely beneficial for Bangladesh's impoverished population in terms of improving the rate of financial inclusion and also enhancing the overall economic empowerment. It is recommended in this study that the government and policymakers must come forward to develop the necessary regulatory framework so that Islamic social finance tools and fintech can be effectively integrated with the Islamic microfinance programmes, thereby improving the socioeconomic standing of the impoverished population in Bangladesh.

This study investigates the potential of waqf to address the escalating housing demand in Indonesia, with a focus on Jakarta, where homeownership rates fall below 50%. It introduces the Integrated Cash Waqf House Financing (ICWHF) Model as a conceptual framework to provide housing financial services in Jakarta. This model involves a Cash Waqf Institution (CWI) that raises funds through both direct cash contributions and Waqf Certificates. These funds are either invested to generate profit or directly allocated for housing development. Employing a mixed-method approach, including interviews and surveys, the research assesses the suitability, applicability, and future prospects of the ICWHF Model. Expert interviews revealed a favorable reception of the model, indicating its potential benefits for Jakarta’s residents. Survey data, analyzed through multiple regression and based on the Theory of Planned Behaviour (TPB), demonstrate that Jakarta residents' willingness to support the ICWHF Model is positively influenced by their attitudes, subjective norms, perceived behavioral control, knowledge, and trustworthiness. The most significant predictors, in order of influence, are perceived behavioral control, subjective norms, trustworthiness, knowledge, and attitude. The study highlights the feasibility and acceptance of the ICWHF Model as a viable solution for Jakarta’s housing finance issues, offering an alternative to conventional interest based loans by adhering to Islamic financial principles. It addresses key challenges such as high interest rates and stringent requirements, thereby enhancing accessibility to home financing. For policymakers, the model provides a framework to improve corporate social responsibility, reduce housing development costs, and support broader homeownership goals. Future research should refine the model, address identified challenges, and improve public awareness to ensure its effective implementation and sustainability.

Islamic Social Finance (ISF) comprises of financial instruments rooted in Shariah principles, including zakat and waqf. These instruments are designed to promote social justice, economic equity, and community welfare. Recognised as essential tools for sustainable development, ISF has gained popularity for its potential to alleviate poverty, reduce inequality, and foster inclusive economic growth, particularly in Muslim countries. However, in Comoros, where female entrepreneurs face challenges in accessing loans, such as collateral requirements, high interest rates, and short repayment periods, the role of ISF in supporting female economic empowerment remains unexplored. This research addresses the limited financial inclusion of female entrepreneurs in Comoros by examining Islamic social finance instruments, particularly zakat and waqf, as a financing mechanism for female entrepreneurs in Comoros. It also analyses the challenges faced by female entrepreneurs, assesses the extent to which zakat and waqf are utilised, explores their potential as financing tools, and subsequently proposes a financing model based on zakat and waqf. Employing a qualitative methodology, the study utilises three different data collection methods. Structured interviews with 32 female entrepreneurs shed light on their experiences and the challenges they faced in accessing loans in Comoros. Additionally, three focus groups comprising zakat and waqf experts offer an indepth understanding of these instruments and their potential in fostering inclusive economic development. A semi-structured interview with the Kadi of the largest city further contextualizes the discussion on waqf. Findings reveal that female entrepreneurs in Comoros face several challenges, including collateral requirements, high interest rates, stringent loan conditions, business type restrictions, and short repayment periods. Consequently, many female entrepreneurs rely on family or friends as their primary source of loans. Furthermore, while zakat and waqf are widely recognised in Comoros, their potential to contribute to socioeconomic development remains underutilised, as their application is largely confined to consumption purposes. This can be explained by a lack of awareness and the absence of structured frameworks for productive use. As a result, many female entrepreneurs turn to informal sources such as family and friends for financial support. However, the study demonstrates that zakat and waqf have the potential to serve as viable financing tools for female entrepreneurs, offering an alternative financial solution that aligns with their faith. Finally, this research proposes a financing model that integrates zakat and waqf funds with Mudarabah and qard contracts to facilitate access to financing for female entrepreneurs while addressing the challenges they faced. This research contributes to the literature by proposing a contextspecific financing model that uses zakat and waqf with Mudarabah and qard contracts to enhance financial access for female entrepreneurs. It emphasizes the transformative potential of Islamic social finance in promoting gender-inclusive economic development in Comoros and similar contexts.

The default of Dana Gas sukuk has raised concerns regarding some legal issues prevalent in sukuk, for example, the unenforceability of the purchase undertakings as a result of Shariah non-compliance declaration by the sukuk issuer and unenforceability of foreign court's decision. Even though the sukuk were eventually restructured, the investors' rights were compromised, and the legal issues remained untested. In Malaysia, wakalah sukuk has been the preferred structure. This structure embeds purchase undertakings and entails a unique relationship between the issuer and the investor, i.e., an agent-principal relationship. Given the perspectives of previous sukuk default, this structure may entail more legal issues and hence, legal risks. Besides, the literature on legal risk management in sukuk are very few in number. While there have been studies conducted on legal risk and legal risk management in sukuk, they did not offer empirical evidence, causing questions around these two focal points to remain unanswered. Therefore, this study was conducted to identify legal risks, determine the legal risk management in wakalah sukuk, and propose best practices for managing legal risks in the sukuk. This study is an exploratory form of research that employs doctrinal legal analysis and document analysis. The data were collected from 24 selected wakalah sukuk documents comprising the Information Memorandum, Trust Deed, Principal Terms and Conditions, as well as interviews. Content analysis and thematic analysis techniques have been employed for analysis of these documents. For the interview, seven participants representing various parties in sukuk were selected using a purposive sampling technique. Data obtained from the interviews were analyzed using thematic analysis. This study's findings have revealed five types of general legal risks in sukuk, four legal risks specific to wakalah sukuk, and 22 specific legal risks in wakalah sukuk documents. Regarding legal risk management, there are different approaches to legal risk management among the participants. However, review of sukuk documents was found to be the primary legal risk management strategy, besides seven other main strategies. Eight legal risk management general techniques and 18 risk-specific techniques were employed in the wakalah sukuk to manage the 22 legal risks. Among them are the use of Disclaimer, Assurance, Transfer of Risk to Investors (TOR), Shariah Waiver (SW), and Dissolution Event Clause (DEC). Other than these, the participants employed seven other techniques and seven legal risk management tools. The use of these strategies, techniques, and tools was found to be associated with several factors. While differences in the use of the strategies, techniques, and tools are plausible, differing views regarding the uses of several techniques are unexpected. Each view is also associated with solid justification. With these, several gaps in legal risk management of wakalah sukuk have been identified and several improvements have been recommended. In sum, this study has provided insightful information and empirical evidence on legal risks and legal risk management, particularly for wakalah sukuk in Malaysia, as well as some of the best practices of legal risk management. Moreover, future studies are recommended to further research on the legality of existing legal risk management techniques and possible regulatory changes to improve the existing legal risk management in sukuk. The aim is to position the Malaysian sukuk market as the preferred issuing jurisdiction and to ensure its sustainability.

Waqf plays a strategic role in supporting social welfare, education, and economic empowerment in Indonesia. According to the Indonesian Waqf Board (BWI), in 2022, the potential for cash waqf in Indonesia will reach IDR 2,000 trillion annually. However, the actual waqf collection remains significantly below this potential, with total receipts of approximately IDR 400 billion annually. Muhammadiyah, one of Indonesia’s largest Islamic organisations, has significantly contributed to waqf management since its establishment in 1912. As of 2022, Muhammadiyah manages approximately 21,000 hectares of waqf land and various fixed assets. Despite this extensive involvement, the optimisation of waqf management continues to face multiple challenges. Digital transformation is increasingly recognised as a potential solution to enhance waqf management's efficiency, transparency, and sustainability. The technology adoption within Muhammadiyah’s waqf management system remains limited, necessitating further study to assess its effectiveness and compliance with shariah principles. The study addressed three objectives: to assess the adequacy of Muhammadiyah’s waqf framework, identify key factors shaping the digital waqf model, and analyse performance factors to enhance the sustainability and effectiveness of waqf management. Employing a mixed-methods approach, this research began with an analysis of Muhammadiyah’s waqf framework, policies, and operational mechanisms, followed by the development of a digital waqf management model and an assessment of factors influencing technology adoption and the performance of digital waqf systems. The study incorporated qualitative analysis through in-depth interviews, focus group discussions (FGDs), and document reviews with waqf administrators and technology experts. Furthermore, quantitative validation was conducted through a survey of 81 respondents, which required PLS-SEM analysis. This study is grounded in multiple theoretical perspectives. Non-Profit Organisation Theory, Stakeholder Theory, and Sharia Governance explain the governance dimension; Technology Acceptance Model (TAM), Technology Adoption Theory, and Diffusion of Innovation frame the technological adoption process; Legitimacy Theory clarifies societal acceptance; and Social Business Integration Theory supports the integration of waqf with sustainable socio-business practices. The findings indicate that Muhammadiyah possesses substantial readiness for adopting technology in waqf management, with a decentralised management system that remains under centralised administration and oversight. However, digital transformation implementation encounters significant system challenges. To address these issues, this study assessed the Digital Social Business Waqf Muhammadiyah (DSB-WM) model, which integrates technology with social business mechanisms and financial sustainability. The model incorporates investment in Cash Waqf Linked Sukuk (CWLS) and Cash Waqf Linked Deposits (CWLD), crowdfunding platforms, and the productive waqf management of Muhammadiyah’s social enterprises (Amal Usaha Muhammadiyah). This model's effectiveness is supported by three key elements: waqf literacy, training and capacity building, and strategic collaboration with academics and Islamic finance practitioners. The quantitative analysis confirms that Perceived Behavioural Control (PBC), Subjective Norms (SN), Perceived Usefulness (PU), and Technological Legitimacy (TL) significantly influence technology adoption in digital waqf management. To enhance the sustainability of digital waqf management, Muhammadiyah must strengthen institutional coordination, increase investment in digital infrastructure, and implement a structured and continuous digital literacy program. These strategic initiatives are expected to facilitate the broader adoption of technology-driven waqf management systems, thereby improving efficiency, transparency, and long-term social and economic impact in the digital era. The study contributes theoretically by extending Legitimacy and Social Business Integration theories into Islamic social finance, and practically by proposing the Digital Social Business Waqf Muhammadiyah (DSB-WM) model as an innovative framework for strengthening digital readiness, shariah legitimacy, and socio-business integration.

Loan default poses a significant challenge for the financial well-being of microfinance banks of Pakistan, affecting their profitability and overall financial stability. Traditional credit evaluation techniques such as the 5Cs model (Character, Capital, Capacity, Collateral, and Conditions) are human-centric and inherently inefficient, at risk of inaccuracies. Consequently, numerous borrowers at risk of default continue to obtain loans, thus increasing financial risk exposure. To address these challenges, this study applies machine-learning techniques to develop a data-driven loan default prediction model aimed at enhancing risk assessment in microfinance banks. Methodology: This research is a mixed-mode study based on quantitative and qualitative methods. Quantitatively four machine-learning algorithms, such as Decision Tree (DT), Logistic Regression (LR), Random Forest (RF), and Gradient Boosting (GB) are trained and validated on a large real-world dataset gathered from two microfinance banks of Pakistan. The dataset was split into training and testing sets, with 70% of the data used for training and 30% for testing. Feature selection and preprocessing strategies like handling missing values, outlier detection, and normalization of data were employed to improve predictive performance. Whereas the performance metrics accuracy, precision, recall, and F1 score were used to assess the predictive performance of the models. The qualitative aspect of the study involved surveys of loan officers. This was to verify that what was produced by Machine learning was crosschecked against real lending behavior. Findings: The research determined the most influential predictors of loan defaults to be debt-to-income ratio, instalment amount, and annual income, total number of accounts, loan amount, interest rate, open account, public records, loan term and purpose of debt consolidation. The results indicate that Gradient Boosting performed better than the other models with the best accuracy (77.75%) and precision (55.33%), although recall (11.33%) and F1 score of (18.81%) limited it. Comparatively Random Forest showed slightly less accuracy (77.58%), precision (53.85%), recall (10.19%) and F1 score of (17.14%) whereas Logistic Regression shown reasonable accuracy (77.39%), precision (51.74%) but had the lowest recall (8.74%) and F1 score of (14.95%). The Decision Tree model, while interpretable, had the least overall performance, achieving an accuracy of (68.9%) precision (31.15%), recall (30.32%) and an F1 score of (30.73%). In addition, to crosscheck the machine learning results, practitioner perceptions were included, and it was reaffirmed that Debt to income ratio, instalment amount, and income level were some of the most dominant drivers in human credit evaluation. The research also points out differences between machine learning models and practitioner perceptions, including the use of credit history, climate risk, and borrower reputation drivers usually undervalued by automated models but significant in real-world lending situations. Implications: The findings of this study have strong implications for microfinance banks, policymakers, and regulators are advised to adopt machine learning based credit risk models for enhancing loan screening, minimizing Non-Performing Loans, and maintaining financial sustainability. This study also adds to the literature on financial technology (FinTech) by illustrating how machine learning can enhance credit risk analysis in emerging economies. Recommendations: Future research should focus on hybrid models that combine quantitative machine Learning techniques with qualitative expert judgment through structured interviews to give better complete credit risk assessment. Regulatory frameworks need to be developed to ensure fairness, transparency, and moral application of AI in credit risk management. Moreover, the incorporation of behavioral and macroeconomic factors in the dataset could improve loan default forecasting, as well.

Islamic banks (IBs) are required to comply with Shari’ah rules and principles, which require the establishment of a Shari’ah supervisory board (SSB) to safeguard Shari’ah governance (SG). The SG system in IBs refers to institutional and organisational arrangements to ensure effective and independent Shari’ah `ah-compliance oversight. This study aims to fill some of the gaps in the literature. To this end, this study investigates the impact of SSB attributes on the performance of 60 IBs located in the GCC and Southeast Asia countries over the 2006-2021 period using the Generalized Least Squares (GLS) estimator to analyse the data. In particular, the effect of SSB independence, busyness, remuneration, and overall SSB effectiveness on the performance of IBs is assessed. Moreover, the study explores the moderating effects of SG models (i.e., Centralised and Decentralised Shari’ah Governance Models) on SSB effectiveness and the impact of SSBs on performance in crisis periods (i.e., during the 2008 global financial crisis and the COVID-19 pandemic crisis). Finally, the present study scrutinises the moderating effect of institutional shareholding on the relationship between SSB effectiveness and the performance of IBs. This study employs different performance metrics including accounting-based financial performance measurements (i.e., ROA and ROE) and an Islamic social performance measurement (i.e., Zakat payments). The empirical results show that SSB independence adversely affects performance while SSB busyness and remuneration enhance performance. In addition, the overall SSB effectiveness (captured by a SSB score) has a significant positive influence on the performance of IBs. The results also suggest that SG models do not significantly affect the relationship between SSB effectiveness and performance. Regarding periods of crisis, effective SSBs enhanced the Islamic social performance of IBs during the 2008 global financial crisis, while during the COVID-19 pandemic period, they enhanced financial performance. Furthermore, the moderation tests indicate that controlling institutional shareholders positively moderate the relationship between effective SSBs and the performance of IBs in terms of ROA and ROE and negatively in terms of Zakat payments. The findings of this study contribute to the body of knowledge by demonstrating how the Shari’ah governance mechanism, as represented by SSBs, influences the performance of IBs. The findings of this study have important practical implications for various stakeholders, including the policymakers, regulators, and IBs. First, IBs and regulators should enhance the autonomy of SSBs as findings demonstrate that currently, SSBs lack real independence. Additionally, the study offers evidence for IBs and regulators to help understand the role of effective SSBs in crisis non-crisis periods and how IBs can adopt an appropriate SSB structure to improve performance. Concerning SG models, the current study concludes that improvements in the SG framework are needed to be put in place by policymakers and regulatory bodies. Lastly, the current study reveals the role of large institutional shareholders in the SSB-performance association and presents recommendations to IBs and regulators.

Historically, waqf has been instrumental in funding social infrastructure, addressing societal issues, and fostering positive change in society. However, despite its critical role, the existing performance measurement system for waqf lacks a focus on outcomes and impact, potentially leading to an underestimation of its true potential within the mainstream economy. This is compounded by the absence of standardised methods or frameworks for measuring the impact of waqf. Furthermore, the unresolved accountability issues within waqf organisations increases the call for better accountability measures. To address these problems, Social Impact Measurement (SIM) emerges as a crucial tool. It is a system or framework to assess an organisation’s effectiveness in generating positive societal impact. Therefore, this study aims to explore the current SIM practices among waqf organisations in Malaysia, understand their perceptions regarding the role of SIM in fulfilling accountability, identify key challenges in developing and adopting SIM, and ultimately develop a SIM framework for waqf organisations. The study employs a qualitative approach through case studies, with document analysis and semi-structured interview as the data collection methods. The interviews were conducted with sixteen (16) representatives from four (4) diverse waqf organisations representing waqf organisations under the purview of the federal government, state government, corporate waqf and Labuan International waqf foundation. This study uncovers varying levels of sophistication in SIM among the waqf organisations. While some have embraced some SIM tools, others are in the early stages of development. Overall, SIM is perceived as an important tool to enhance accountability to donors, beneficiaries, regulators, collaborators, and Allah. SIM is also viewed as a tool to build trust and strengthen governance. The findings also reveal that the challenges in SIM adoption encompass a lack of expertise, financial resources, regulatory hurdles, public perception, and standardisation. Nonetheless, there is a consensus on the suitability of Maqāṣid al-Sharīʿah for inclusion in a SIM framework for waqf organisations. The insights gathered from this study have culminated in the development of a tailored SIM framework for waqf which incorporate mission alignment, the theory of change, elements of accountability and key success factors. This framework offers a flexible guide for waqf organisations to measure social impact tailored to their unique needs and contexts. This pioneering study in Malaysia provides a significant contribution to the literature and body of knowledge of SIM in waqf organisations and accountability theory. The findings from the study bridges the gap between theory and practice in terms of improving waqf organisations' accountability towards stakeholders, and alerting policymakers and various agencies to provide the support and training needed to curb the challenges in the SIM adoption. This study also paves the way for a more robust and accountable future for waqf, thereby strengthening their impact on society.

The study broadly aimed to examine the factors that affect the working capital management efficiency of firms belonging to OIC and Non-OIC countries. The study also examined whether a difference exists in the working capital management (WCM) efficiency of the firms belonging to OIC and Non-OIC countries. Also, the study examined the impact of various firm-level and macroeconomic variables of WCM efficiency in OIC and Non-OIC countries. Lastly, the study examined the differential impact of firm-level and macroeconomic determinants on the WCM efficiency in OIC and Non-OIC countries in recession and boom states of the economy. To achieve these objectives, the study adopted an exploratory and descriptive research design. The firm-level data for the study has been collected from the COMPUSTAT database and the data on macroeconomic variables has been collected from the World Bank development indicator database. For sampling a purposive sampling technique was adopted wherein the researcher would select the sample firms from the COMPUSTAT database belonging to OIC and Non-OIC countries. The final sample consists of firms belong to 18 OIC countries and 35 Non-OIC countries. The data for the study was collected for a period of 22 years (2000-2021). The study estimated the models by using econometric panel data methodology. The study made an investigative check for heteroscedasticity, autocorrelation, multicollinearity, and the presence of outliers and accordingly produced robust estimates. The study runs analysis on full-sample, OIC sample and Non-OIC sample to make best comparison. They found that WCM efficiency differs significantly between firms in OIC and Non-OIC countries, with OIC firms generally exhibiting lower efficiency. Firm-level factors such as profitability, firm size, tangibility, leverage, cash flow, sales growth and firm age, have significant impacts on working capital management (WCM) efficiency in both OIC and Non-OIC countries, but the magnitude and direction of these impacts often differ between the two groups. Macroeconomic factors, including money supply, stock market development, inflation, GDP growth and interest rates, also influence WCM efficiency, with their effects varying between OIC and Non-OIC countries. The impact of both firm-level and macroeconomic determinants on WCM efficiency differs during recession and boom periods, with these differences being more pronounced in OIC countries. It shows that Islamic financial principles in OIC countries appear to influence working capital management practices, often leading to more conservative approaches compared to Non-OIC countries. The study highlights key implications for financial managers, policymakers, and researchers. Financial managers in OIC countries need to align working capital strategies for better efficiency. Policymakers should consider these unique challenges when designing economic policies. For researchers, this opens new avenues to explore the intersection of cultural, religious, and economic factors in financial management.