No abstract

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.

Issues concerning purchasing on-line, the medium of transaction via on-line or Internet, e-payment mode are among new challenges that require Islamic scholars and researchers to broaden the scope of definition of Shariah compliance e-commerce transaction. As Malaysia is heading towards e-commerce and purchasing on-line has no longer a new trend; the challenges arise for solution in accordance with Shariah principles. This paper will propose a model that comprises several components namely, the core Shariah component itself, sound technological means and regulatory body that supports e-commerce transactions.

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.

Tahaluf is usually discussed from the perspective of tahaluf siyasi. Tahaluf siyasi means agreement between several parties to face the same enemy. In this study, researchers want to study beyond the norms of public thought. There is also discussion of tahaluf in politics, but in economics there is no discussion of tahaluf. Therefore, the construction of tahaluf in the economy or can be stated as tahaluf iqtishadi is important to fill in the knowledge gaps in Islamic treaties. To complete this study, this discussion focused on the agreement made in mudharabah contract. There are three focus areas, namely, security, justice and benefit. From this, it can be explained that the purpose of this study is to examine the concept of tahaluf iqtishadi based on mudharabah contract. This study uses a library research to examine the concept of tahaluf siyasi in mudharabah contract. These data were then analyzed using content analysis. As a result, there are two principles, two characteristics and six conditions of implementing tahaluf as the initial framework for the construction of the concept of tahaluf iqtishadi. These two principles are to defend the truth and to defend the covenant. The other two are the terms of the agreement and the contract is void if it is betrayed. The other six are loyalty, sincerity, wise management, stance, fellowship and confidence.

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.