International Journal of Islamic and Middle Eastern Finance and Management最新文献

{"title":"Intellectual capital disclosure (ICD) in Islamic banks: does the diversity of Shariah committee matters?","authors":"Syaima’ Adznan, Zulkarnain Muhamad Sori, Shamsher Mohamad","doi":"10.1108/imefm-02-2023-0055","DOIUrl":"https://doi.org/10.1108/imefm-02-2023-0055","url":null,"abstract":"\u0000Purpose\u0000This study aims to investigate the moderating effects of the Shariah committee (SC) on the extent of intellectual capital disclosure (ICD) of Islamic banks.\u0000\u0000\u0000Design/methodology/approach\u0000This study provides evidence from an analysis of a sample of Islamic banks in multiple countries over a seven-year period (2012–2018). The extent of intellectual capital information was measured and regressed against several corporate governance attributes covering board and audit committee characteristics, gender diversity of SC members and moderating variables of the SC, while controlling for firm-specific variables. A checklist was developed to measure the extent of the ICD of Islamic banks on a rubric scale ranging from 0 to 3.\u0000\u0000\u0000Findings\u0000The results show that the size and gender diversity among SC significantly influence the ICD practices of Islamic banks. Apart from contributing to the literature, this study may serve as valuable input for Islamic banking practitioners including regulators and standard setters to empower women and use all their potential for better intellectual capital output.\u0000\u0000\u0000Practical implications\u0000The paper highlights two main implications. Firstly, the regulator should look at the size and composition of the SC to enable a conducive environment for sound deliberation of Shariah matters. Secondly, the gender diversity among SC should be considered because women and man may have different approaches, and the best optimal combination of resources could enhance Islamic banks’ competitive advantage.\u0000\u0000\u0000Originality/value\u0000This study highlights the importance of gender diversity and size of SC in influencing the disclosure practices related to Shariah matters by the Islamic banks.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44454981","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Exploring financial inclusion in MENA countries: an entropy weight approach","authors":"Naveenan Ramaian Vasantha, C. Liew, P. Kijkasiwat","doi":"10.1108/imefm-11-2022-0451","DOIUrl":"https://doi.org/10.1108/imefm-11-2022-0451","url":null,"abstract":"\u0000Purpose\u0000Research on financial inclusion (FI) in Islamic countries has evolved and gained prominence. This study aims to construct an extensive multidimensional FI index to ascertain the level of inclusion and trends in the Middle East/North Africa (MENA) countries. Additionally, this study examines the potential role of Islamic finance in improving access to financial services.\u0000\u0000\u0000Design/methodology/approach\u0000Data for the study were collected from databases covering MENA countries for the period 2010–2020. An inclusion index has been constructed using the entropy method.\u0000\u0000\u0000Findings\u0000Key findings indicate that the overall FI has improved in Islamic countries. However, it should be noted that all MENA countries fall within the low or medium levels of the inclusion index. It was observed that insurance access and penetration savings were poor in the Islamic MENA countries.\u0000\u0000\u0000Social implications\u0000The authors recommend that policymakers focus on insurance access and saving behaviour in their respective countries. Based upon these observations, policymakers should promote the economic benefits of Islamic finance, which will help improve FI and economic development in Islamic countries. This study emphasises the necessity of policy framework reform to provide Islamic financial services to the poorest in society at low or no cost for better economic benefits.\u0000\u0000\u0000Originality/value\u0000Most studies tend to overlook important indicators such as insurance, savings and credit penetration while calculating the index. These indicators add value to the existing literature. The majority of prior studies used United Nation Development Programme methodology or principal component analysis for Inclusion Index measurements. The adoption of the entropy weighting method is the novelty of this study.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42102225","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Islamic economics and finance instructional leadership and curriculum practices: a case study of selected public universities in Saudi Arabia","authors":"Mohamed Abdeltawab Ibrahim, A. Abdullah, I. A. Ismail, S. Asimiran","doi":"10.1108/imefm-10-2022-0393","DOIUrl":"https://doi.org/10.1108/imefm-10-2022-0393","url":null,"abstract":"\u0000Purpose\u0000This study aims to explore the instructional leadership practices implemented by academic professionals and leaders to enhance the curriculum of Islamic economics and finance (IEF) in two public universities in Saudi Arabia.\u0000\u0000\u0000Design/methodology/approach\u0000This study used a qualitative approach, using a case study methodology that focused on two meticulously chosen universities in Saudi Arabia. A total of 21 academics from two public universities in Saudi Arabia who worked in IEF schools were selected for semi-structured interviews.\u0000\u0000\u0000Findings\u0000The findings showed that two universities in Saudi Arabia that offer degrees in IEF exhibited limited instructional leadership. The findings indicate four apparent barriers that may explain the lack of involvement in instructional leadership and fair practices in the IEF curriculum at Saudi Arabian universities. According to this study, a positive collegial climate in Saudi universities’ IEF promotes shared instructional leadership.\u0000\u0000\u0000Research limitations/implications\u0000The use of a limited qualitative method and small sample of respondents in this study may not provide enough evidence to generalise the findings to all universities and higher education schools in Saudi Arabia. Although a case study was used to describe IEF curriculum management and implementation at the two universities, caution should be exercised when applying these findings to other institutions.\u0000\u0000\u0000Practical implications\u0000IEF schools in Saudi universities need to leverage their positive, collaborative and relationship-building environments to develop activities that promote shared instructional leadership.\u0000\u0000\u0000Originality/value\u0000The research findings can offer valuable insights and examples for school leaders to develop instructional activities and promote the concept of “shared instructional leadership”. This approach involves delegating responsibilities and actions to others to enhance the IEF curriculum’s quality. Policymakers and university officials can use these findings to enhance strategic policies.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-07-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45745702","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"An aspirational hope of a Sharīʿah-based microfinance model to alleviate extreme poverty","authors":"M. Khalequzzaman, Asmak Ab Rahman, A. Kamsin","doi":"10.1108/imefm-03-2022-0116","DOIUrl":"https://doi.org/10.1108/imefm-03-2022-0116","url":null,"abstract":"\u0000Purpose\u0000This study aims to propose a Sharīʿah-based and information and communication technology-driven microfinance model (SIMM) to reduce extreme poverty in rural areas. Existing microfinance models run by microfinance institutions exclude severely poor individuals from their activities.\u0000\u0000\u0000Design/methodology/approach\u0000This study uses an exploratory sequential mixed-method design structured as Studies 1 and 2. Study 1 uses the grounded theory methodology to develop the emergent SIMM through interviews and focus group discussions with the participants (12 rich, 6 rural elites and 18 poor) of the target village. Study 2 uses a survey of 421 household members in the target village to evaluate their attitudes (ATT), subjective norms (SN) and perceived behavioural control (PBC) related to SIMM. Partial least squares-based structural equation modelling is used to evaluate relationships between constructs.\u0000\u0000\u0000Findings\u0000Study 1 identifies seven themes, in which aspirational hope is recognised as a core theme. Study 2 indicates significant relationships between ATT and PBC and between SN and PBC. Thus, the SIMM can alleviate poverty in rural communities.\u0000\u0000\u0000Practical implications\u0000The application of the SIMM in the pilot study provides aspirational hope for eradicating extreme poverty.\u0000\u0000\u0000Social implications\u0000Other rural communities should be encouraged to apply the SIMM to alleviate extreme poverty in their villages.\u0000\u0000\u0000Originality/value\u0000This study contributes to the development of an innovative microfinance model (SIMM) to eradicate extreme poverty in rural areas.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45873306","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Revisiting Zakat with a distribution of weighted Shapley value","authors":"I. Tlemsani, R. Matthews, Mohamed Ashmel Mohamed Hashim","doi":"10.1108/imefm-11-2022-0430","DOIUrl":"https://doi.org/10.1108/imefm-11-2022-0430","url":null,"abstract":"\u0000Purpose\u0000This paper aims to extend the Shapley value (SV) into a discussion of Zakat, a Pillar of Islam. Lloyd Shapley was awarded the Nobel Prize in Economics in 2012. This study shows that their relationship is significant for all nations, that of levelling up. An important but neglected paper by Datta (1939) showed insights provided by the Power Law, or as it is sometimes called, the Pareto distribution, into the role of Zakat in raising the income of all above the subsistence level. The Pareto distribution describes the prevailing tendency. The SV illustrates the interdependence perspective of Zakat with the Pareto distribution, wealth, income and poverty. Payoffs apply equally to both givers and receivers. For this study’s purposes, payoffs are considered as transferable utilities. They are formed by individuals who willingly cooperate in society rather than atomistic individuals who act independently. Zakat represents the recognition that society needs to be cooperative rather than individualistic; people cooperate in groups or societies to create value. SV implications and axioms are evaluated with an illustration.\u0000\u0000\u0000Design/methodology/approach\u0000This study extends Datta’s approach by introducing distribution weights into the SV. The authors set out the concept of weighted Shapley values that retain the elements of randomness and marginal contribution to a coalition contained in pure/true SVs and weights that follow a ley-Pareto distribution. This paper is a viewpoint work that relies primarily on the author’s qualitative interpretation.\u0000\u0000\u0000Findings\u0000The findings indicate that individual members of a coalition make multiple contributions that are often unrewarded. The contribution of one member of a coalition is dependent upon the contribution of others. The measure of contributions is payoffs, which have both monetary and non-monetary aspects; transferable payoffs or utilities are usually assumed. Furthermore, the significant agents in society or an organisation are stakeholders rather than the usual categories: managers, staff, shareholders, etc.\u0000\u0000\u0000Practical implications\u0000Contextualising these concepts within the Islamic values and principles that guide Zakat administration is crucial to ensure that the distribution of Zakat funds is fair, equitable and meets the needs of all eligible recipients. By applying these concepts appropriately, Zakat administrators can ensure that the Zakat system functions effectively and fulfils its religious obligation.\u0000\u0000\u0000Originality/value\u0000The novelty of this paper is that it blends the SV and the idea behind Zakat by introducing the idea of alternatives of Shapley weights. The link between the institution of Zakat and SV in terms of equality, poverty elimination and wealth distribution should be at the top of the research agenda.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47400770","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Do national culture and economic freedom affect bank risk-taking behavior? Evidence from GCC countries","authors":"Tanzina Akhter, Zairihan Abdul Halim, Saima Mehzabin, A. Shahriar, M. Azad","doi":"10.1108/imefm-07-2022-0283","DOIUrl":"https://doi.org/10.1108/imefm-07-2022-0283","url":null,"abstract":"\u0000Purpose\u0000The global financial crisis of 2008 has put greater doubt on the bank risk-management effectiveness around the world. As a part of the response to such doubt, the Gulf Cooperation Council (GCC) region is formulating some feasible approaches to manage bank risk. In this regard, an understanding of the role of the region’s culture and economic freedom will provide immense input into this risk management approach. This study examines the impact of national culture and economic freedom on bank risk-taking behavior.\u0000\u0000\u0000Design/methodology/approach\u0000Data on bank risk measures, culture and economic freedom are obtained from the FitchConnect, World Bank database, Hofstede’s insights and Heritage Foundation. Generalized least squares and two step-system generalized method of moments are then used to examine the risk-taking behavior of the region.\u0000\u0000\u0000Findings\u0000Banks of the GCC region operating in the low power distance, high collectivism, masculine and low uncertainty avoidance cultures are susceptible to assuming more operational and insolvency risks. Furthermore, banks’ overall risk-taking inclination is positively increased once the region has considerable business and monetary freedom.\u0000\u0000\u0000Practical implications\u0000The governments and bank regulatory bodies may benefit from the study findings by developing the best economic freedom index and national culture that enriches risk management practices and curves excessive risk-taking inclination.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this study is the first attempt to address the interplay among culture, economic freedom and bank risk to ensure constructive risk-taking behavior for the GCC banking industry.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47096766","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Banking system stability in the MENA region: the impact of market power and capital requirements on banks’ risk-taking behavior","authors":"Miroslav Mateev, T. Nasr","doi":"10.1108/imefm-05-2022-0198","DOIUrl":"https://doi.org/10.1108/imefm-05-2022-0198","url":null,"abstract":"\u0000Purpose\u0000This paper aims to investigate the impact of capital requirements and bank competition on banks' risk-taking behavior in the Middle East and North Africa (MENA) region.\u0000\u0000\u0000Design/methodology/approach\u0000The study combines both descriptive and analytical approaches. It considers panel data sets and adopts panel data econometric techniques like fixed effects/random effects and generalized method of moments estimator.\u0000\u0000\u0000Findings\u0000Regulatory capital and market competition have different effects according to the bank’s type (Islamic or conventional). The results show that the capital adequacy ratio has a significant impact on the credit risk of conventional banks (CBs) while this effect is irrelevant for Islamic banks (IBs). However, market competition plays a significant role in shaping risk-taking behavior of Islamic banking institutions. Our results indicate that banks with strong market power may pursue risky strategies in the face of increased regulatory pressure (e.g. increased minimum capital requirements). The results were robust to alternative profitability measures and endogeneity checks.\u0000\u0000\u0000Research limitations/implications\u0000The most important limitation is the lack of data for some banks and years, and this paper had to exclude some variables because of missing observations. The second limitation concerns the number of IBs in the sample. However, this can be overcome by including more countries from MENA and other regions where Islamic banking is a growing phenomenon.\u0000\u0000\u0000Practical implications\u0000Our findings call for a change in Islamic banking’s traditional business model based on the prohibition of interest. The analysis indicates that market concentration moderates the association between capital requirements and the insolvency risk of IBs but not CBs. Therefore, regulatory authorities concerned with improving financial stability in the MENA region should set up their policies differently depending on the level of banking market concentration. Finally, bank managers are requested to apply a more disciplined approach to their lending decisions and build sufficient capital conservation buffers to limit the impact of downside risk from the depletion of capital buffers during the pandemic.\u0000\u0000\u0000Originality/value\u0000This study addresses banks’ risk-taking behavior and stability in the MENA region, which includes banks of different types (Islamic and conventional). This paper also contributes to the literature on bank stability by identifying the most critical factors that affect bank risk and stability in the MENA region, which can be relevant in the context of the new global (COVID-19) crisis.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-06-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44753149","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Shariah board characteristics and Islamic banks’ performance: a meta-analysis","authors":"Rihab Grassa, Sherif El-Halaby, Hichem Khlif","doi":"10.1108/imefm-10-2022-0392","DOIUrl":"https://doi.org/10.1108/imefm-10-2022-0392","url":null,"abstract":"Purpose Shariah board (SB) is a unique corporate governancemechanism in Islamic financial institutions. Over the last decade, an increasing number of studies discusses the relationship between SB and Islamic banks' (IB) performance. These researches report conflicting findings due to the heterogeneity of their samples. Therefore,the purpose of this paper is to meta-analyze the results of the previous empirical studies to assess if the differences in findings were attributable to moderating effects related either to the system of SB or the used SB variables or the variables used to identify performance. Design/methodology/approach To examine the direct and moderating effects of SB attributes, this study uses a meta-analysis technique on a sample of 46 empirical studies, using Hunter and Schmidt’s approach followed by three exploratory moderator analyses: ROE, ROA and Tobin’ Q. Significant results are discussed. Findings Overall, the meta-analysis findings show that there is a positive significant association between SB meetings and qualifications and IBs’ performance. In testing the moderating effects of financial performance measurement during the post-subprime crisis period, the meta-analysis findings suggest that there is a positive significant association between SB characteristics (size, qualification, reputation, interlock and expertise) and performance. The meta-analysis findings stress the importance of several SB attributes in improving IBs’ performance, especially, during the economic recovery period. Originality/value This paper adds significance to the extant Islamic finance literature as well as assists the appropriate stakeholders in assessing the determinants of IBs’ performance from Shariah governance perspective. It further aims to reconcile the findings of the previous studies around the world. Moreover, the findings help future research to build a comprehensive Shariah governance index for IBs.","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":"71 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135220292","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Predicting the intention to use Paytech services by Islamic banking users","authors":"A. Irimia-Diéguez, Gema Albort-Morant, M. D. Oliver-Alfonso, Shakir Ullah","doi":"10.1108/imefm-07-2022-0298","DOIUrl":"https://doi.org/10.1108/imefm-07-2022-0298","url":null,"abstract":"\u0000Purpose\u0000This study aims to identify the factors that could explain the intention to use Paytech services within an Islamic banking context. The authors use an extended version of the technology acceptance model to develop a causal–predictive analysis.\u0000\u0000\u0000Design/methodology/approach\u0000The research model and hypotheses were tested by applying partial least square-structured equation modeling to data collected from 214 users of Islamic banking in Saudi Arabia.\u0000\u0000\u0000Findings\u0000The results show that perceived trust has a highly significant direct effect on the intention to use Islamic Paytech services, whereas perceived risk has a significant indirect effect on IU.\u0000\u0000\u0000Research limitations/implications\u0000Internet banking behavior may not be static. In technology acceptance, during the various phases from introduction to the maturity phase, the respondent’s perceptions tend to change\u0000\u0000\u0000Practical implications\u0000From the point of view of Fintech services providers, the knowledge of the factors fostering the adoption of Fintech services would allow an international expansion without the inconvenience of establishing offices or companies in countries whose legislation does not favor the operations carried out by Islamic banks.\u0000\u0000\u0000Social implications\u0000These digital payment services would allow access to financial services to the entire Muslim population regardless of their location (Islamic and non-Islamic nations) and will also reach out to the next generation of young Muslims as a majority are “digital natives” ready for digital Islamic financial solutions.\u0000\u0000\u0000Originality/value\u0000This study is the first to explore the intention to use Paytech services by Islamic banking users in Saudi Arabia. From a theoretical perspective, this work contributes to the academic literature by analyzing the intention to use Paytech services in an Islamic banking context. On the practical front, the study identifies the crucial factors that industry players can use to design their Paytech applications and services to increase financial inclusion in Saudi Arabia and other countries with similar cultures as well as to design an international expansion without the inconvenience of establishing offices or companies in countries whose legislation does not favor the operations carried out by Islamic banks.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41410642","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Takaful funeral; an innovation for Islamic insurance product","authors":"Desmadi Saharuddin, M. A. Mufraini, Abdul Ghoni, Inayatul Chusna, A. S. Mulazid, S. Supriyono","doi":"10.1108/imefm-04-2022-0157","DOIUrl":"https://doi.org/10.1108/imefm-04-2022-0157","url":null,"abstract":"\u0000Purpose\u0000This study aims to determine the prospect of takaful funerals as an Islamic insurance product and its marketing strategy. The multicase study analyzed is the Takaful Funeral Amsterdam of Indonesia, launched in 2015, Millî Görüs of Turkey in 1970 and Arrahma of Morocco in 2006.\u0000\u0000\u0000Design/methodology/approach\u0000This study delivers an analytic hierarchy process to qualitatively and quantitatively describe Muslim customers’ priority choice and interest criteria for takaful funerals as a forerunner of Islamic insurance products.\u0000\u0000\u0000Findings\u0000Based on the priority choice and interest criteria, the highest priority element of takaful funeral products is market need (49.21%). The group subcriteria were dominant compared to the individual subcriteria. Product design is the second choice (20.9%), with function as the priority in subcriteria.\u0000\u0000\u0000Practical implications\u0000This indicates that the Muslim community urgently needs funeral service products that are consistent with Islamic law, which emphasizes its function. The market needs as the highest priority element implies that bundling products, affordable prices and simple design are the most suitable methods for developing takaful funeral products in Indonesia.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this is the first study to discuss Islamic funerals in Indonesia, with the potential to be further developed with the increasing need of the Islamic insurance industry for new products. Previous research did not examine the PPME Al-Ikhlas Takaful Amsterdam, Millî Görüs of Turkey and Arrahma of Morocco as case studies for developing Islamic funeral insurance in Indonesia. Therefore, this gives the present study high originality.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42431975","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}