Al-gharimin agency: A new wing of Islamic social finance

Ghaouri, Mohamed Hamza and Kassim, Salina and Zakariyah, Habeebullah and Othman, Anwar Hasan Abdullah (2023) Al-gharimin agency: A new wing of Islamic social finance. Journal of Islamic Social Finance, 1 (1). pp. 24-39. E-ISSN 3009-0687

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Abstract

Over-indebtedness is a widespread phenomenon among households in Malaysia. This issue has become even more pressing with the economic downturn caused by the pandemic. According to the literature, zakat institutions are focusing more on other categories of beneficiaries while giving less priority to al-gharimin. Besides, other Islamic social finance institutions has focused on reducing poverty while overlooking over-indebtedness as one of the main drivers of household poverty. Hence, this study attempts to identify limitations and challenges facing these institutions to address excessive debt among Malaysian households. To achieve this objective, the research adopts a qualitative approach based on a desk research and semi-structured interviews with prominent scholars and experts. It was concluded that the main obstacles facing zakat institutions are the lack of funding, the prioritization of other pressing issues (poverty), and the absence of proper policies, etc. Based on this, and other limitations, the researchers propose the establishment of an Integrated ecosystem based on al-gharimin agency for over-indebtedness alleviation. This agency brings together expertise and funds from different players. A collaboration between these institutions is believed to have a great impact on the efficiency of the collection and management of funds, the identification of genuine debtors and the provision of an appropriate assistance.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Over-indebtedness; zakat institutions; al-gharimin agency
Subjects:	BPH Islamic Economics > BPH531 Zakat H Social Sciences > H Social Sciences (General) H Social Sciences > HG Finance H Social Sciences > HG Finance > HG179 Personal finance H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Prof. Dr. Salina Kassim
Date Deposited:	18 Jan 2024 08:49
Last Modified:	18 Jan 2024 08:49
URI:	http://irep.iium.edu.my/id/eprint/110224

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