...Waqf comes from the Arabic word waqf, the name of the derivative (Masdar) of the waqafa verb, it has a variety of meanings according to the purpose and use of the verse itself. In terms of language, waqf gives meaning to terminating, prevents and holds. The fiqh scholar agrees to define waqf by language terminology with al-habs means restraint; because the word al-habs is closer to the Islamic sense. From the perspective of the term syarak based to the opinion of the scholar such as Imam al-Syafie, Abu Yusuf, Muhammad bin al-Hassan al-Shaybani and scholar of Hanbali Mazhab think that waqf means to hold certain property that can be utilized and the condition of the property must be permanent and transferable property and its management is decided by the beneficiary and the purpose of waqf is for the good or for the things that are required to draw closer to Allah SWT (Mohd Zamro Muda et.al, 2008, Waqf is one of the oldest institutions in the history of Islamic development. The term wakaf is not mentioned directly in the Quran or Hadith. It started to be based on the interpretation of the...
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...2289-2117 (O) / 2289-2109 (P) Priority of Waqf Development among Malaysian Cash Waqf Donors: An AHP Approach Anwar Allah Pitchaya, Ahamed Kameel Mydin Meerab, Muhammad Yusuf Saleemc b a Universiti Sains Malaysia (USM), Malaysia IIUM Institute of Islamic Banking and Finance (IIiBF), International Islamic University Malaysia c International Centre for Education in Islamic Finance (INCEIF), Malaysia Abstract The practise of cash Waqf is increasingly gaining popularity among the Malaysian Muslim. Waqf institutions (SIRCs) are responsible to utilise the collection of cash Waqf to develop relevant projects in order to benefit the society in general. The purpose of this study is to explore the cash Waqf donors’ priority toward what types of development that fulfilled the current need of the society. Hence, to accomplish this purpose; thirty (30) Muslim employees who have contributed cash Waqf were interviewed. This study employs analytical hierarchy process (AHP) analysis to identify the rank of the developments that priorities by donors. The result shows that the cash Waqf contributors prefer to channel their money for Waqf development in the following rank order: (1) education, (2) health, (3) masjid and madrasah, (4) social-care and welfare (5) trade and commerce (6) environment (7) infrastructure and (8) art, culture and heritage. © 2014 IIUM Institute of Islamic Banking and Finance. Keywords: AHP, Waqf, Donor. 1. Introduction Waqf is most comparable to the English word ‘endowment’...
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...practitioner of Islamic law, guides students through the intricacies of the subject in this absorbing introduction. The first half of the book is devoted to a discussion of Islamic law in its pre-modern natural habitat. The author expounds on the roles of jurists, who reasoned about the law, and of judges and others who administered justice; on how different legal schools came to be established, and on how a moral law functioned in early Muslim society generally. The second part explains how the law was transformed and ultimately dismantled during the colonial period. As the author demonstrates, this rupture necessitated its reinvention in the twentiethcentury world of nation-states. In the final chapters, the author charts recent developments and the struggles of the Islamists to negotiate changes which have seen the law emerge as a primarily textual entity focused on fixed punishments and ritual requirements. The book, which includes a chronology, a glossary of key terms and lists for further reading, will be the first stop for those who wish to understand the fundamentals of Islamic law, its practices and its history. w a e l b . h a l l a q is James McGill Professor in Islamic Law in the Institute of Islamic Studies at McGill University. He is a worldrenowned scholar whose publications include The Origins and Evolution of Islamic Law (Cambridge, 2004), Authority, Continuity and Change in Islamic Law (Cambridge, 2001) and A History of Islamic Legal Theories (Cambridge...
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...1.0 Introduction All human activities are subject to risk of loss from unforeseen events. To alleviate this burden to individuals, what we now call insurance has existed since at least 215 BC. This concept has been practiced in various forms for over 1400 years. In Islam, the concept of insurance is takaful. Q finance dictionary defines that takaful is a Islamic insurance in which all participants are members and contribute to a pool of funds that provide assistance in the event of loss on the part of any of the participants. It is an Islamic insurance arrangement avoids the prohibitions against gambling and interest in Islamic Law. Takaful, it originates from the Arabic word Kafalah, which means "guaranteeing each other" or "joint guarantee". It is based on the principles of ta’awan (mutual cooperation) and Tabarru’ (donation), where a group of takaful participants (policy-holders) agree between themselves to share the risk of a potential loss to any of them, by making a donation of all or a part of their takaful contribution (premium) to compensate for a loss. Takaful-branded insurance is based on Shariah, Islamic religious law and refer the principle of cooperation, not sale or exchange, and mitigates the objectionable aspects of gharar (uncertainty), maisir (gambling) and riba (interest). In conventional insurance the risk is transferred from the policyholder to the insurance company which brings the elements of uncertainty and chance in contract as one of the two a party...
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...Islamic Banking and Finance: History Development Slide #1 Some Issues History Of IBF Development of IBF -Overview- 2. Islamic Banking and Finance: History and Development History and Development of IBF in Bahrain Full Fledged IB vs. IB windows • Word ‘bank’ comes from the word ‘banco’ - A table or a bench on which Italian money-changers used to display their monies and records and conduct their transactions History of Islamic Banking and Finance • Arabic financial and economic system preIslam – Trading based arrangements were common • Bay’ al-musawamah (bargaining) • Bay’ al-muzayadah (auctioning) • Bay’ al-amanah (trust sale) – Al-murabahah (resale with profit) – Al-tawliyyah (resale at cost) – Al-wadiah (resale at loss or below cost) History of IBAF- (2) – Barter trade was common – Al-sarf (money exchange) • Lack of standardization – for e.g., 10 grams of gold in coin form = 15 grams of gold in bracelet form – Institutionalization of riba – Widespread gharar and maysir – Monopoly, fraud and economic injustice was common History of IBAF- (3) • With the advent of Islam, – Eradication of riba institutions and practices – Eradication of gharar transactions – Institutionalization of fair and equitable markets • No monopoly, fraud • Standardization of money and commodity exchanges – Hadith on the six commodities – Islamization of many business organizations and institutions • Mudarabah, musyarakah, salam, muzara’ah (sharecropping or partnership...
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...“programme that extend small loans to very poor people for self employment projects that generate income in allowing them to take care of themselves and their families” (Microcredit Summit, 1997). The World Bank has recognized microfinance programme as an approach to address income inequalities and poverty. The microfinance scheme has been proven to be successful in many countries in addressing the problems of poverty. The World Bank has also declared 2005 as the year of microfinance with the aim to expand their poverty eradication campaign. The main aim of the paper is to assess the potentials of Islamic financing schemes for micro financing purposes. The paper argues that Islamic finance has an important role for furthering socio-economic development of the poor and small (micro) entrepreneurs without charging interest (read: riba’). Furthermore, Islamic financing schemes have moral and ethical attributes that can effectively motivate micro entrepreneurs to thrive. The paper also argues that there is a nexus between Islamic banking and microfinance as many elements of microfinance could be considered consistent with the broader goals of Islamic banking. The paper, first, introduces the concepts of microfinance, and presents a case for Islamic microfinance to become one of the components of Islamic banking. The paper then discusses, the potentials of various Islamic financing schemes that can be advanced and adapted from microfinance purposes including techniques to mitigate the inherent...
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... Public finance deals with the income and expenditure of a state. It consists of the efficient management of taxes and other sources of revenue, proper budgeting and effective control over state expenditures. In this chapter, we would study in detail the sources of revenue, while in the next chapter we would discuss budget and expenditure of the Islamic state. Sources of revenue of the public treasury (Bait-ul-Mal) in the Islamic state in the time of Prophet Muhammad (PBUH) and early caliphs included Zakat, Ushr, Khums, Fai, Jizyah and Kharaj. The first five sources have been mentioned in the revealed book of Islam, while the sixth arose out of the extended application of the Fai properties of the Islamic State. These sources were tapped and utilized by the state to defray its essential expenses incurred on discharging various functions, and also with a motive to distribute wealth among the poor and destitute classes of the society. Let us discuss these sources briefly as under. 1- Az-Zakat ‘Zakat’ or ‘Zakah’ literally means ‘growth’ or ‘increase’ or ‘nourishment’ Another derivative of this word carries the sense of purification. Thus, Zakat means ‘to grow’, ‘to increase’ or ‘to purify’. It is because of the fact that Zakat helps the purification of human soul from miserliness, selfishness, lust and greed of wealth and, thus, it paves the way for its growth and development. Technically, Zakat is a compulsory contribution, a sort of tax which is collected from the rich...
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...Submitted By Nasrin Akter ID: 082011081 Sadia Afrin ID: 082011094 Tanzila Islam ID: 082011086 Tasniya Hoque ID: 082011085 Submitted to Shahriar Kabir Lecturer Financial Markets and Institutions ULAB 12/28/2011 Department: USB Section: 01 Islamic banking system Letter of Transmittal December 28, 2011 Shahriar Kabir Lecturer Financial Markets and Institutions ULAB Subject: Request to Accept Term Paper regarding “Islamic Banking System” Dear Sir, We are very pleased to submit the term paper on “Islamic Banking System”. We were assigned to prepare and submit this term paper as the partial fulfillment of the course Financial Markets and Institutions (Course Code: Bus 421). We have tried our best to prepare this term paper perfectly. Nevertheless, this paper has been suffered by time and other resource limitation. We will be obliged, if you kindly accept this term paper. We are ready to make you clear regarding any confusion or further clarification from this term paper. Sincerely yours, Nasrin Akter (On the behalf of all the group members) Table of contain ...
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...CHAPTER-ONE INTRODUCTION 1.0 Background of the Study Islami Bank Bangladesh Limited (IBBL) is the first of its kind in the South East Asia which was established in 1983 with a view to provide banking services based on Islamic principles. The bank, which started its operation with only 3 branches in the first year of its inception, has now 254 branches in 28 years of operation. As a bank, Islami Bank Bangladesh Limited receives deposits from its customers from all over the country as well as from abroad on profit and loss sharing basis and deploys that fund to different investment clients to gain profit. The bank distributes an agreed portion of the profit earned to the customers and the shareholders. Islami Bank Bangladesh Limited also performs foreign exchange business. In this process, the bank endeavors to contribute to the betterment of the society. In the context of open market economy, the foreign exchange business is growing rapidly and playing a vital role in the economic growth of a country. About 40 % of total business of our country is rolling through foreign exchange transaction. Islami Bank Bangladesh Limited has significantly contributed in flow of international transactions. Among the private commercial bank of our country IBBL is being kept the first position in export, import, remittance flow and as well as earnings the operating profit. Why I have chosen this topic, because to focus the foreign exchange banking performance of IBBL & its activities...
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...opinions expressed in this publication is the personal views of the authors, and do not necessary reflect the opinion of the publisher. Layout and cover design: Font: Font size: Printer: Hafizuldin bin Satar Goudy Old Style 11 pt Gemilang Press Sdn Bhd iv ACKNOWLEDGEMENTS T his book grew out of a three-day workshop jointly held by the Regional Studies Program, Walailak University, and the Department of Cross-Cultural and Regional Studies, Copenhagen University, in Nakhon Si Thammarat, southern Thailand, in 2006. The theme of the workshop was, “Voices of Islam in Europe and Southeast Asia”. Its aim was to gather leading scholars in the fields of Islamic Studies from diverse disciplinary backgrounds to discuss contemporary developments in the study of Islam and Muslim societies in...
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...Leading Research DeAnne Aguirre Leila Hoteit Christine Rupp Karim Sabbagh Empowering the Third Billion Women and the World of Work in 2012 Contact Information Abu Dhabi Leila Hoteit Principal +971-2-699-2400 leila.hoteit@booz.com Beirut Ghassan Barrage Senior Executive Advisor +966-1-249-7781 ghassan.barrage@booz.com Cairo George Atalla Partner +20-2-2480-1444 george.atalla@booz.com Dubai Karim Sabbagh Senior Partner +971-4-390-0260 karim.sabbagh@booz.com Milan Luigi Pugliese Partner +39-02-72-50-93-03 luigi.pugliese@booz.com Mumbai Jai Sinha Partner +91-22-6128-1102 jai.sinha@booz.com Munich Klaus-Peter Gushurst Senior Partner +49-89-54525-537 klaus-peter.gushurst@booz.com New York Reid Carpenter Principal +1-212-551-6389 reid.carpenter@booz.com Riyadh Mounira Jamjoom Senior Research Specialist +966 1 249 7781 mounira.jamjoom@booz.com San Francisco DeAnne Aguirre Senior Partner +1-415-627-3330 deanne.aguirre@booz.com São Paulo Ivan de Souza Senior Partner +55-11-5501-6368 ivan.de.souza@booz.com Shanghai Sarah Butler Partner +86-21-2327-9800 sarah.butler@booz.com Stuttgart Christine Rupp Partner +49-711-34226-916 christine.rupp@booz.com Tokyo Akiko Karaki Senior Associate +81-3-6757-8709 akiko.karaki@booz.com Booz & Company Booz & Company 1 Booz & Company wishes to thank the experts who contributed their valuable time and insights to the Third Billion Index: • Rajnee Aggarwal, President, Federation of Indian Women Entrepreneurs (FIWE) • H.E. Fatima Al...
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...INTERNATIONAL ISLAMIC UNIVERSITY OF MALAYSIA KULIYYAH OF ECONOMICS & MANAGEMENT SCIENCES (KENMS) DEPARTMENT OF ACCOUNTING ACC 4563: ZAKAT ACCOUNTING THE PRIORITY OF DISTRIBUTING THE ZAKAT AMOUNT TO THE EIGHT BENEFICIARIES BASED ON FOUR PHASES (4 FASA) Lecturer’s Name: ASSOC. PROF. DR. SITI NORMALA SHEIKH OBID Prepared By: ABDUL HADI BIN MOHAMAD, 0813783 MUHAMMAD AZFAR BIN KAMAR RUDDIN, 0811067 MOHD. ZAE’EM KHAN BIN MOHAMAD AZLAN, 0621747 Section No: 1 ABSTRACT This paper aims to study the distribution of zakat during the Prophet, companion, khalifah and contemporary time, and examine the priority among eight asnaf in distributing the zakat amount. The study was conducted by analyzing secondary data including books, journal, and article. The study revealed that effective and efficient of zakat administration including method and ways of distribution of zakat become important indicator on the successful Islamic era. Misused of zakat fund had leaded previous khalifah reign stumble. (Keyword: Prophet, khalifah, companion, contemporary time, zakat administration, eight asnaf) TABLE OF CONTENTS CONTENT | PAGE | Chapter 1: Introduction | | 1.1 Study of Background | | 1.2 Research Questions | | 1.3 Research Objectives | | Chapter 2: Literature Review | | Chapter 3: Methodology | | Chapter 4: Findings and Discussions | | Chapter 5: Conclusion | | 5.1 Summary and Implications | | 5.2 Limitations | | References |...
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...various types of existing services rendered by the SIBL. understand the prevailing mechanism of modes of finance of SIBL. Study the performance of modes of finance of SIBL. Highlight the major characteristics of modes of finance of SIBL. Understand the basic difference in relation to conventional bank. 1.1 Introduction: Today’s world is changing very rapidly as new business are emerging by placing the old ones. Towards the end of century, let alone a millennium, people feel a growing uneasiness about the future. Many countries suffer from chronic high employment, a persistent deficit and deteriorating purchasing power. Like the other business, banking practices are also changing at an incredible pace. Every decade calls upon company management to think freshly about its objectives, strategies and tactics. In the banking industry, community branch banks have long been the marketing channels through which customers deposit money and make payments. Banking plays an important role in the economy of any country. In Bangladesh Muslim consist more than 80% of its population. These people possess strong faith on Allah and they want to lead their lives as per the construction given in the holy Quran and the way shown by the prophet Hazrat Mohammad (Sm). But on Islamic banking system was developed here up to 1983. The traditional banking is fully based on interest it is commonly meant as commercial banks. But interest is absolutely prohibited by Islam. The main aim of...
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...provided by the Private Conventional Banks and the Islamic banks in Bangladesh. Today, banks realize the importance of Retail Banking and its potential to help them acquire new customers, retain existing ones and maximize their lifetime value. this report provides an overall view of Retail Banking services in Bangladesh. the services provided by Private Conventional Banks and the Islamic banks are mentioned. Followed by are the products that are being used to provide these services. A trend of the retail banking services is done in the analysis part of this report. The Islamic banking concept is being adopted by some of the Private Commercial Banks to generate better understanding of the customer for product development, segmentation, appropriate targeting, campaign management and maintenance of long term profitable and mutually beneficial relationships with customers. The concept of Islamic Banking has been implemented on a vast scale. To meet the objective of the report a trend analysis of the retail deposit indicators,retail deposits and loans and advances is done in the fifth part of the report. there growth is also shown with line graphs. A comparison is also made between the PCB's retail banking services and that of IB's. In part six findings are listed and some recommendations are also made accordingly. Table of Contents Sl No | Topic | Page No. | 1.0 | Introduction1.1 Objective of the report1.2 Methodology1.3 Limitations of the study | 7-9889 | 2.0 | Literature...
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...[pic] [pic] Bangladesh is one of the largest Muslim countries of the world. The people of this country are deeply committed to Islamic way of Life as it is mentioned in Quran and Sunnah. But it is not possible for the people to establish and design their economic lives in accordance with Shariah. The very objective of Shariah is to promote the welfare of the people that lies in safeguarding their faith, their life, their posterity and their wealth. In this regard to establish a banking world that run according to Shariah, the concept of Islamic Banking Arise. Its establishment in Bangladesh on 13th March 1983, named Islami Bank Bangladesh Limited (IBBL). The definition of Islamic Bank, as approved by the General Secretariat of the OIC- “An Islamic Bank is a Financial Institution whose statutes, rules and procedures expressly state its commitment to the principles of Islamic Shariah and to the banning of the receipt and payment of interest on any of its operation.” This paper is an attempt to evaluate the Different Modes Investment of Islamic Bank Bangladesh Ltd. (IBBL) in terms of productivity and effectiveness. [pic] There are mainly two objectives behind the preparation of this report such as primary objectives and secondary objectives. These are discussed as under: The initial Objective: The initial objective of preparing this report is to fulfill the partial requirements of the BBA program and to represent the ‘General Banking System’, ‘Investment mechanism’...
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