International Journal of Islamic Banking and Finance Research Centre for Research on Islamic Banking & Finance and Business en-US International Journal of Islamic Banking and Finance Research 2576-4136 SHAPING THE FUTURE OF ISLAMIC BANKING AND FINANCE: A LEGAL PERSPECTIVE <p style="text-align: justify;"><em>After the inception of Islamic banking and finance (IBF) in the global financial industry, IBF became a new alternative form of ethical finance based on Islamic economic thought.&nbsp; According to classical thought, the essence of Islamic economics is not to prohibit making a profit but to prioritize people’s well-being and, hence, enjoy the profit. This study examines the regulation and functioning of Islamic financial institutions (IsFIs), including their compliance with Sharia law. It explores the ethical considerations surrounding IsFIs by examining how their financial services align with the Sustainable Development Goals (SDGs). The study aims to shed light on the challenges and opportunities within the IBF sector, ultimately contributing to a deeper understanding of its role in promoting ethical finance and sustainable development. This study employs an empirical legal research approach to investigate the legal framework of IBF. The results reveal that by effectively highlighting ethical foundations and objectives, Islamic finance will attract a larger market of Muslims and arouse the interest of a wider audience of stakeholders who are not just interested in avoiding financial transactions that support prohibited practices. The findings of this study suggest that a major obstacle to the massive growth of the Islamic banking and finance sector is the existence of contradictions that depend especially on the excessively liberal accreditation of Islamic banks as “Sharia compliant.”</em></p> <p><strong>JEL Classification Codes: </strong>E44 G10 G20.</p> Sanaa Kadi ##submission.copyrightStatement## 2023-09-03 2023-09-03 11 2 1 19 10.46281/ijibfr.v11i2.2017 PERFORMANCE ASSESSMENT OF ISLAMIC BANKS IN THE LIGHT OF MAQASID AL-SHARIAH: A GLOBAL EVIDENCE <p style="text-align: justify;"><em>As an “Islamic” entity, Islamic banks are expected to fulfill the purposes of Islamic law. This study aims to assess the performance of Islamic banks beyond traditional yardsticks, to emphasize their ethical, social, and environmental role in accordance with the higher goals of Islamic law namely Maqasid al-Shariah. Based on Imam al-Ghazali’s concept of Maqasid al-Shariah, we develop a Maqasid al-Shariah index including the 5 objectives of Shariah (Preservation of Life, Religion, Intellect, Posterity, and Wealth). Sekaran’s operationalization method is used to transform the theoretical concept of Maqasid al-Shariah into measurable indicators. The originality of this study stems from two factors: First, we build on previous research to develop a new Maqasid al-Shariah index with 12 dimensions, 25 elements, and 25 indicators. Second, we provide fresh insight into the Maqasid al-Shariah performance of 10 large and well-established Islamic banks from 2017 to 2021. The results of the 5-year study show that Meezan Bank in Pakistan performed the highest score, while Dubai Islamic Bank received the lowest. Furthermore, when comparing the performance of the sampled Islamic banks across the five objectives, we find that they earned the lowest score in the objective of intellect due to their failure to disclose the required information in their annual reports.</em></p> <p><strong>JEL Classification Codes: </strong>A13, G21, I31, L20, P47.</p> Asma Ammar ##submission.copyrightStatement## 2023-11-22 2023-11-22 11 2 20 31 10.46281/ijibfr.v11i2.2124 ETHICAL DIMENSIONS OF ISLAMIC FINANCE AND THEIR RELEVANCE IN CONTEMPORARY BUSINESS PRACTICES <p style="text-align: justify;"><em>In the vast tapestry of global financial systems, Islamic finance emerges as a paragon of ethical praxis, steeped in the venerable tenets of Shariah law. The essence of this research is the exploration of these profound ethical underpinnings and their resonance in the contemporary mercantile milieu. The study takes a deep dive into the historical evolution of Islamic finance to highlight its core values of fairness, societal stewardship, and sustainable growth. These values make it a compelling alternative to the criticisms often levelled at conventional monetary systems. This research methodology adopts a systematic literature review approach, sourcing information from peer-reviewed articles, books, conference papers, and reports from recognised financial bodies. The culmination of this endeavour reveals an intricate interplay between the time-honoured ethics of Islamic finance and its manifestation in the modern economic realm. The introduction suggests that Islamic finance offers moral rectitude by championing risk-sharing and avoiding interest-driven transactions in today's globalised commerce.</em></p> <p><strong>JEL Classification Codes: </strong>G21, G20, Z12, P51, D63.</p> Babruk Aijaz Baloch Andrew Chimenya ##submission.copyrightStatement## 2023-11-23 2023-11-23 11 2 32 39 10.46281/ijibfr.v11i2.2125 THE IMPACTS OF BORROWERS ATTITUDE AND ACCESSIBILITY TO NON-INTEREST LOAN ON THEIR WELFARE DURING COVID-19 PANDEMIC: A CASE OF TRICYCLE RIDERS IN KWARA STATE, NIGERIA <p style="text-align: justify;"><em>This study examines the impacts of borrowers' attitudes and accessibility to non-interest loans on the welfare of tricycle riders in Kwara State, Nigeria, during the COVID-19 pandemic. The objective is to gain insights into how these factors influence the well-being of tricycle riders and provide recommendations for enhancing their welfare in challenging times. The study utilizes a quantitative research approach and collects data through a field survey. The demographic data of the respondents indicate that the sample predominantly consists of male respondents and individuals following the Islamic faith. The majority of respondents have completed the Senior Secondary Certificate Examination, followed by non-formal education and NCE/HND qualifications. Most respondents are married and fall within the age group of 36-45 years. Regression analysis is employed to analyze the data. The findings reveal that both accessibility to non-interest loans and borrowers' attitudes towards borrowing significantly impact the welfare outcomes of tricycle riders. Access to non-interest loans is positively associated with welfare, while negative attitudes towards borrowing are linked to lower welfare outcomes. Recommendations include enhancing access to non-interest loans, providing financial literacy programs, addressing negative attitudes towards borrowing, strengthening social safety nets, and fostering collaborative partnerships among stakeholders. This study contributes to the understanding of the welfare dynamics of tricycle riders in Kwara State, Nigeria, during the COVID-19 pandemic. It provides valuable insights for policymakers, financial institutions, and other relevant stakeholders to develop targeted interventions that support the welfare and economic resilience of tricycle riders and similar informal sector workers.</em></p> <p><strong>JEL Classification Codes: </strong>L26, E32, E02.</p> Muhammad-Bashir Owolabi Yusuf Tajudeen Olayiwola Busari ##submission.copyrightStatement## 2023-11-23 2023-11-23 11 2 40 47 10.46281/ijibfr.v11i2.2126