Tazkia Islamic Finance and Business Review

The Islamic Perspective of Gold-Based Investment: The Case of Indonesia

Asep Risman, Markonah Markonah, Jaih Mubarok, Budi Lestijawan Eka Saputra — Sun, 30 Jun 2024 00:00:00 +0000

Currently, there are many gold-based investment products, and investors are interested because some of them use sharia labels. Therefore, this study aims to identify and investigate gold-based investments from an Islamic perspective. It is hoped that this research can contribute new findings and enrich existing literature regarding gold investment in Indonesia, providing benefits for Muslim investors and the Muslim community in general. This study used qualitative research methods. Semi-structured interviews were conducted with parties who offer gold-based investment products on a large scale. Additional data sources include documents and manuscripts from the National Sharia Council (DSN-MUI) as well as author analysis. These findings show that not all gold-based investments in Indonesia comply with sharia principles. Only gold murabahah conducted by Islamic banking institutions meets sharia compliance.

Leveraging Qardh al-Hasan within Islamic Finance: A Conceptual Framework for Advancing Sustainable Development among Early-stage Enterprises

Abdul Azis Ibrahim, Abdulrahman Alenizi — Sun, 30 Jun 2024 00:00:00 +0000

Early-stage enterprises significantly contribute to economic development through innovation, job creation, and productivity enhancement. However, these enterprises face substantial financial challenges, particularly in securing capital that adheres to ethical and Sharia-compliant principles. This paper investigates the use of Qardh al-Hasan, an altruistic loan concept in Islamic finance, as a strategic tool for supporting sustainable development initiatives within early-stage enterprises. By leveraging Qardh al-Hasan, which embodies social solidarity and economic justice in Islam, the study proposes a conceptual framework to enhance entrepreneurial resilience and sustainable business practices among nascent businesses. Employing a descriptive analysis and a framework-based review, the research explores strategies to optimize Qardh al-Hasan in financing early-stage enterprises, positioning it as an effective mechanism for addressing sustainability challenges. Key findings reveal Qardh al-Hasan’s potential in fostering sustainable development, while highlighting practical challenges such as default risk, management issues, and liquidity requirements. The analysis indicates a deviation of many Islamic financial institutions from the social objectives of Islamic finance, prioritizing economic growth over holistic development. The theoretical implications enhance the understanding of Qardh al-Hasan’s role in achieving economic and social justice, while practical implications advocate for its integration into modern financial systems to support entrepreneurship and reduce social inequality, emphasizing the need for adequate management and supranational support. This paper’s novelty lies in its innovative approach to repositioning Qardh al-Hasan within contemporary Islamic finance, proposing a comprehensive model that addresses both theoretical and practical challenges, thus advancing the sustainable development objectives of Islamic finance by integrating underprivileged segments into the formal economy.

Keywords: Sustainable development, Qardh al-Hasan, Islamic finance, early-stage enterprises.

Influential Financial Planners and Islamic Financial Planning: A Social Media-Based Content Analysis

Putri Syifa Amalia, Rochania Ayu Yunanda, Mutya Qurratu’ayuni Mustafa — Sun, 30 Jun 2024 00:00:00 +0000

Financial planning has been increasingly significant where income levels are rising, the financial industry is becoming more complicated and financial products are becoming more complex. With higher income levels and fund excesses, people demand financial assistance services to manage their financial matters. The activities of financial planners continue to grow in line with the varying demand of customers. Conventional financial planning had developed during the 1970s, while the Islamic financial industry had just emerged. From an Islamic perspective, a financial planning framework would require Shariah-compliant products and services and a deep understanding of Islamic values and principles governing economic activities. This study aims to understand to what extent Islamic financial planning has been communicated and shared by financial planners/advisors and to understand their preferences and financial priorities in providing financial advice. This qualitative paper explores the social media of chosen financial planners and Islamic financial planners. Financial planners share their thoughts and ideas on their social media. Several influential financial planners were selected through some stages. Understanding their social media content will provide a picture of their financial planning. Discussion of Islamic financial planning is scant. The paper explores and offers a novel approach of whether financial planners and so-called Islamic financial planners have different financial planning. Using the particular framework of Islamic financial planning, Islamic financial planners are expected to have different financial planning emphasizing Islamic values and principles.

The Determinants of Millennial Interest in Investing on Sharia Securities Crowdfunding Platforms in Indonesia

Rini Iswanti, Endri Endri, afif zaerofi — Sun, 30 Jun 2024 00:00:00 +0000

This research aims to analyze the influence of attitude variables, subjective norms, and perceived behavioral control on interest upon investing in SCF sharia as well as the influence of the variables of Islamic financial literacy, religiosity, risk and return on attitudes towards investing among the millennial generation in SCF Syariah. The research employed a quantitative approach utilizing the Structural Equation Model Partial Least Square (SEM-PLS) with primary data gathered through purposive sampling. The technique was conducted by an online method on 152 individuals from the millennial generation. Not all TPB factors significantly influence the interest to invest in Sharia Securities Crowdfunding. Attitude and Behavior Control Perception have a positive impact on the interest to invest in Sharia SCF. Subjective Norm does not have an impact on the interest to invest in Sharia SCF. Sharia financial literacy does not significantly affect attitude. Religiosity significantly affects attitude. Risk and return significantly affect attitude.

Beyond Halal Cuisine: A Comprehensive Exploration of Shariah Compliance in Tourism and Hospitality

Nur Liana Rosli, Mohamad Aizat Bin Jamaludin, Anis Najiha Binti Ahmad — Sun, 30 Jun 2024 00:00:00 +0000

This study aims to comprehensively explore Shariah compliance in tourism, extending beyond halal cuisine, to encompass prayer facilities, gender segregation, modesty restrictions, and ethical considerations. Utilizing a combination of extensive literature review, case studies, and expert opinions, this research offers a comprehensive analysis of various aspects of Shariah compliance in tourism, providing a holistic understanding of its implications. The research identifies significant factors influencing Shariah compliance in tourism, including the availability of prayer facilities, adherence to gender segregation norms, enforcement of modesty restrictions, and consideration of ethical principles. These findings underscore the multifaceted nature of Shariah compliance in hospitality firms and destinations, highlighting the importance of addressing diverse requirements to cater to Muslim travelers effectively. The insights gleaned from this research can inform hospitality firms and destinations about the importance of accommodating diverse Shariah requirements beyond halal food, thus enhancing the overall experience for Muslim travelers. Moreover, this study underscores the need for proactive measures to ensure Shariah compliance, which can contribute to the competitive advantage of tourism businesses in Muslim-majority markets. This research provides a comprehensive analysis of Shariah compliance in tourism, extending beyond halal cuisine to encompass various aspects such as prayer facilities, gender segregation, modesty restrictions, and ethical considerations, thereby filling a significant gap in existing literature.