Development of Sharia-Based Financial Products and Microfinance in Islamic Economy

Authors

  • Ratnawita Ratnawita STIMA IMMI
  • Tanti Widia Nurdiani Universitas Islam Raden Rahmat
  • Loso Judijanto IPOSS Jakarta, Indonesia
  • Ibrahim Mallam Fali University of Calabar, Nigeria

DOI:

https://doi.org/10.58812/wsjee.v1i02.265

Keywords:

Sharia-Based, Financial Products, Microfinance, Islamic Economy

Abstract

Within the context of Islamic economics, this study examines the dynamic interactions between the growth of microfinance and the creation of financial products based on Sharia. The study used a quantitative research methodology to examine significant variables, including the expansion of financial instruments that comply with Sharia law, the availability of microfinance, and the socioeconomic consequences of these endeavors. The study covers a wide range of Islamic economies and uses statistical methods to evaluate the relationship between the uptake of financial products based on Sharia and the improvement of microfinance services. The results provide quantitative insights into how Islamic finance and microfinance are developing, with implications for future research projects, financial institutions, and regulators.

References

S. A. A’la Mawdudi, First principles of Islamic economics. Kube Publishing Ltd, 2013.

T. P. Nugrahanti, “Risk assessment and earning management in banking of Indonesia: corporate governance mechanisms,” Glob. J. Bus. Soc. Sci. Rev., vol. 4, no. 1, pp. 1–9, 2016.

Y. Iskandar, A. Ardhiyansyah, and U. B. Jaman, “The Impact of the Principal’s Leadership Style and the Organizational Culture of the School on Teacher Performance in SMAN 1 Cicalengka in Bandung City, West Java,” in International Conference on Education, Humanities, Social Science (ICEHoS 2022), Atlantis Press, 2023, pp. 453–459.

U. B. Jaman, “Prospek Hak Kekayaan Intelektual (HKI) sebagai Jaminan Utang,” J. Huk. dan HAM Wara Sains, vol. 1, no. 01, pp. 15–20, 2022.

W. N. H. W. Jusoh and A. M. Shariff, “Microfinance: Viable Approaches for Islamic Banking Implementation,” Glob. Rev. Islam. Econ. Bus., vol. 2, no. 3, pp. 192–206, 2015.

Z. B. Lawhaishy and A. H. A. Othman, “Introducing an Islamic equity-based microfinance models for MSMEs in the State of Libya,” Qual. Res. Financ. Mark., vol. 15, no. 1, pp. 1–28, 2023.

S. Iftikhar and I. Saba, “Blockchain Based Smart Sukuk as Shariah Compliant Investment Avenues for Islamic Financial Institutions in Pakistan,” J. Financ. Econ. Res., vol. 5, no. 1, pp. 30–45, 2020.

N. S. Rahayu, “Indonesian Women and Islamic Economy: A Case Study of Islamic Microfinance and Women’s Empowerment in Yogyakarta.” Universität zu Köln, 2020.

F. Asni, “The difference of Shariah risk potential and Shariah risk in personal financing products based on tawarruq munazzam contracts practised in Malaysia,” Qual. Res. Financ. Mark., vol. 14, no. 1, pp. 95–118, 2022.

F. Fitriani and T. Anggraini, “The Role of Islamic Banks in Improving the Economy through Microfinance During the Covid-19 Pandemic,” J. Indones. Manag., vol. 2, no. 3, pp. 935–940, 2022.

A. G. Berutu, “Pump and Down in Jiwasraya Investation and the Absence of Islamic Economy Law Principles.” Ali Geno Berutu, 2020.

L. Peughuith, M. Brahmi, and B. Karim, “Banking techniques, new alternative of engineering institutions of Islamic finance, ideal vs. reality: the way forward,” Int. J. Innov. Appl. Stud., vol. 3, no. 2, pp. 478–485, 2013.

R. Islam and R. Ahmad, “Muḍārabah and mushārakah as micro-equity finance: perception of Selangor’s disadvantaged women entrepreneurs,” ISRA Int. J. Islam. Financ., vol. 12, no. 2, pp. 217–237, 2020.

O. Chowdhury, M. A.-S. A. Rishat, M. H. Bin Azam, and M. A.- Amin, “The Rise Of Blockchain Technology In Shariah Based Banking System,” in Proceedings of the 2nd International Conference on Computing Advancements, 2022, pp. 349–358.

N. I. Kaffah and W. Wirdyaningsih, “Implementation of Regional Sukuk (Islamic bonds) as a solution for Regional economic development in Indonesia,” Proc. AICS-Social Sci., vol. 9, pp. 28–37, 2019.

S. S. Rahayu, “Maqashid Sharia in Islamic Economics and Finance Research,” J. Islam. Econ. Lit. http//journals. smartinsight. id/index. php/JIEL/index June, vol. 2, no. 1, 2021.

M. K. Anwar, A. A. Ridlwan, and W. N. R. Laili, “The Role of Baitul Maal wat Tamwil in Empowering Msmes in Indonesia: a Study of Indonesian Islamic Microfinance Institutions,” Int. J. Prof. Bus. Rev., vol. 8, no. 4, pp. e0913–e0913, 2023.

K. Musari, “Promoting Qarḍ al-Ḥasan in Nanofinance to Counter The Moneylender in Southeast Asia,” Stud. Islam., vol. 26, no. 1, pp. 1–31, 2019.

M. R. F. Nashath and M. H. M. Nairoos, “Challenges of Islamic microfinance in Sri Lanka: with special reference to Commercial Credit-head office Colombo,” 2018.

M. T. İslam, M. K. Hassan, K. T. Abdullahi, and Z. Gider, “Participation (Islamic) Banking in Turkey: A Bibliometric Analysis and Future Research Agenda.,” Int. J. Econ. Manag., vol. 16, no. 2, 2022.

P. Srisusilawati, A. S. Rusydiana, Y. D. Sanrego, and N. Tubastuvi, “Biblioshiny R application on islamic microfinance research,” Libr. Philos. Pract., vol. 2021, no. 5096, pp. 1–24, 2021.

A. W. Nugroho and B. P. Wibowo, “Evaluation of Awareness and Perception of Islamic Microfinance Institutions and Higher Education Institutions in Indonesia Towards the Implementation of Sharia Governance: Dyad’s Perspective,” Int. J. Prof. Bus. Rev., vol. 7, no. 4, pp. e0743–e0743, 2022.

S. E. B. Carmody, “New horizons: the potential for shari’ah-compliant cooperative and mutual financial services,” Chapters, pp. 115–131, 2016.

R. Heriyanto and T. Mariyanti, “Poverty Alleviation Strategies Through Sharia Microfinance Institutions Politico-Economics Study With Tawhidi Approach,” APTISI Trans. Manag., vol. 6, no. 2, pp. 132–141, 2022.

E. Amalia and I. Rahmatullah, “Strategic Alliances between Sharia Microfinance Institutions and Financial Technology in Strengthening Small Micro Enterprises for Socio Economic Justice,” IQTISHADIA, vol. 13, no. 2, pp. 240–257, 2020.

Downloads

Published

2023-02-28

How to Cite

Ratnawita, R., Nurdiani, T. W., Judijanto, L., & Fali, I. M. (2023). Development of Sharia-Based Financial Products and Microfinance in Islamic Economy. West Science Journal Economic and Entrepreneurship, 1(02), 72–80. https://doi.org/10.58812/wsjee.v1i02.265

Issue

Vol. 1 No. 02 (2023): West Science Journal Economic and Entrepreneurship

Section

Articles

License

Copyright (c) 2023 Ratnawita Ratnawita, Tanti Widia Nurdiani, Loso Judijanto, Ibrahim Mallam Fali

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.