Islamic products and services have high contribution to the economy recently. This contribution has inspired Malaysia to set its mission to become a global halal hub. Halal hub generally relies on the level of awareness among Muslim particularly the authority in understanding the main concept of Shariah-compliant products and services. This paper will principally discuss on Shariah-compliant hotel industry by elaborating the important criteria from the perspectives of the authority in achieving the Shariah-Compliant hotel status in Malaysia. Focusing on qualitative method, this study used in-depth and open-ended interviews with the authorities namely JAKIM and JAHEAIK. Interviews were recorded, transcribed and analyzed. It is found that JAKIM and JAHEAIK stated very limited criteria to specify a Shariah-compliant hotel. However, through interviews, JAKIM and JAHEAIK have provided some insights on how to fully achieve the Shariah-compliant attributes. This paper is important as it can significantly provide much needed feedback from the authority perspectives for the use of interested industry players.
Mudharabah is a profit-sharing partnership agreement of a business venture to carry out economic activities. Despite its potential socioeconomic benefits to the parties involved and to the society, the application of mudharabah is limited to engineered Islamic finance products which transform the conventional financial products into Shari'ah-compliant ones. We argue that, in order to realise the mudharabah true potentials, among others, the mudharabah contract needs to be revived. The purpose of this study is to propose a framework in reviving the mudharabah contract between the sahibul mal (capital provider/investor) and the mudharib (entrepreneur). The research methods used in this study are library research and content analysis. As a result, agency theory is recognised to be very relevant to the mudharabah contract. To revive the mudharabah contract, tahaluf concept (Islamic treaty with compliance with Shari'ah) is identified as the most suitable concept to be adopted. This proposed framework serves as guidance in formulating the data collection strategy from different perspectives i.e. from sahibul mal, mudharib, Shari'ah advisors and academicians.
Tourism industry’s development recently is irrefutably hit the international awareness and sparked the local interest. Statistical data of Tourism Malaysia showed a rise of 6.8 per cent tourists’ growth from 2018 leads to the figure of 13.35 million international tourists in 2019. Malaysia, as a multicultural country with the majority of 63.7% of the population are Muslims, should take active steps to intensify the ways in discovering the market needs. Desires of Islam need to be cleared and the spirit of Maqasid Shariah have to be manifested equally to the Muslim and the non-Muslim. This paper therefore, aims to discuss on the necessity to clarify the relevancy of having Islamic hotel as to align with the basic principles of Maqasid Shariah and to see whether the current practices and policies are coherent with the Maqasid. This qualitative study embarked on content analysis from a few relevant policies and previous studies. In addition, an in-depth interview was conducted with two relevant local authorities. Having analyzed the information gained, it was found that as now, no specific legislative Islamic hotel policy was in place. However, few limited existing guidelines are found to intrinsically applying the Principles of Maqasid Shariah. The results presented here have profound implications on a proper drafting of an inclusive Islamic Hotel policy in the future. It is hoped that Maqasid will be set as a benchmark for the future policy setting as this will boost the confidence of the tourists in visiting the country.
The repulsion of mudharabah (Islamic profit sharing) concept surfaces more obviously than before particularly in the banking sector. As a consequence, the product become less attractive and could be scrapped off from the banking services which eventually give negative image to the Islamic principles claimed as the way of life. While the banking sector may not be a fertile soil for mudharabah to bloom, a real business relationship context between investors and entrepreneurs is believed to be the future home for pure (non-engineered) mudharabah to recognise its real benefits. We believe that to realise the mudharabah's true potentials, among others, the contract needs to be revived. The purpose of this study is to propose solutions in reviving the mudharabah contract between the sahibul mal (investor) and the mudharib (entrepreneur). The research methods used in this study were content analysis of the current contract guideline and in-depth interview of five different stakeholders; investor, entrepreneur, Shariah advisor, academician and lawyer. As a result, the new framework, clauses and format were recommended to revive the mudharabah contract to include procedures to prevent anticipated problems and to preserve the agreement based on Shariah as well as to encourage venturing into high profitability potential business. This proposed solution could serve as an innovative and comprehensive template for future mudharabah contract that seem to be more understandable, implementable and has substance over form. The revived contract template may also be used to convince the interested parties to have more faith on pure mudharabah benefits.
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