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Promoting a sharing economy in the Islamic finance industry: a study of selected OIC countries

Abdul Razak, Dzuljastri and Abdul Wahab, Abdul Hamid (2018) Promoting a sharing economy in the Islamic finance industry: a study of selected OIC countries. International Journal of Islamic Economics and Finance, 1 (1). pp. 59-76. ISSN 2622-3562

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Abstract

Islamic finance has been in existence for the past centuries. Nonetheless, the realization of the real objectives of the industry is still a dream yet to be true. The goal of Islamic finance is to promote a sharing economy whereby money is not concentrated in the hands of a few individuals. This purpose of this study is investigate the application of mudarbah and musharakah concepts which facilitate a sharing economy where profit and loss is shared between the bank and customer compared to debt financing that utilizes murabahah concept. The methodology is based on secondary data obtained from central banks of five selected OIC countries. The results indicated that Indonesia, Sudan and Bangladesh recorded the highest amounts in terms of mudarabah financing while Malaysia, Indonesia and Pakistan recorded the highest amounts in terms of musharakah financing. The results also indicated that murabahah financing is high in Malaysia, Bangladesh, Indonesia and Sudan. Pakistan registered the lowest amount in terms of murabahah financing.

Item Type: Article (Journal)
Additional Information: 4433/65893
Uncontrolled Keywords: Sharing Economy, Mudharabah, Musharakah, Islamic Finance Industry and OIC countries
Subjects: H Social Sciences > HB Economic Theory > HB126.4 Islamic Economics
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Economics and Management Sciences > Department of Finance
Kulliyyah of Economics and Management Sciences
Depositing User: Dr Dzuljastri Abdul Razak
Date Deposited: 25 Sep 2018 09:57
Last Modified: 25 Sep 2018 09:57
URI: http://irep.iium.edu.my/id/eprint/65893

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