Publication:

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This research represents an applied and theoretical study on the topic of provisioned funds in Islamic banking institutions in the United Arab Emirates (UAE). The problem of the study relates to the sources, identification, and management of these funds, including how they are spent and how to benefit from them. The research discusses the Shariah provisions related to provisioned funds and includes interviews with senior employees of selected institutions to understand how these funds are collected, the procedures followed in dealing with them until they are disbursed, and the extent of their commitment to the Shariah governance decisions. Additionally, a study was conducted to assess the possibility and feasibility of establishing a Waqf from the provisioned funds in the United Arab Emirates. The methodological approach used is qualitative, based mainly on data collected during interviews, and the use of previous studies and some related documents. The study findings show the sources of the selected institutions' provisioned funds, how they are managed, and where they are spent, which revealed disparities and differences in the institutions' dealings with these funds and highlighted the central role played by Shariah governance in organizing this sector and enhancing the Shariah compliance of these institutions. The study also found that it is possible to establish a Waqf from the Islamic banking institutions' provisioned funds in the UAE, subject to certain conditions. Some ideas were suggested and discussed to establish this Waqf. In conclusion, the study provides recommendations and solutions to these institutions on how to reduce provisioned funds as much as possible and encourages them to be more committed and disciplined towards governance standards and regulations.