Introduction to Islamic banking and finance : principles and practice

Islamic banking and finance is becoming one of the most significant aspects of the modern global financial system. Why? Because it is a fast-growing industry that has developed rapidly within a few years from a niche industry to a global force to be reckoned with in the international arena. However, with the worldwide spread of Islamic financial products and the growing interest of students and financial experts in Islamic finance, numerous books,monographs, and academic articles are being produced to explain the significance of this new industry to the global financial system. Nevertheless, there has not been much focus on a professional textbook on Islamic banking and finance for students of higher education who require case studies and practical examples in their programs. This seemingly neglected aspect of Islamic financial literature is the gap that this book seeks to fill, focusing on the principles and practice of Islamic banking and finance in the modern world. In this dynamic industry, there is a need to present a textbook for the ever-increasing academic and professional institutions offering Islamic finance as a course

The role of customer online brand experience in customers' intention to forward online company-generated content: The case of the Islamic online banking sector in Palestine

The purpose of this study is twofold: Firstly, to assess the impact of customer online brand experience (COBE) with online banking on customer's intention to forward online company-generated content (CGC). Secondly, to explore the role of online brand community engagement (OBCE) and the perceived trust of brand community page (BCP) as mediating variables between COBE and the intention to forward online CGC. This research conducted an online survey among various Islamic bank customers in Palestine who were members of online brand communities (fan pages) on Facebook. 375 valid responses were collected and results revealed that COBE exerts a dual influence on intention to forward CGC. This study is a pioneering empirical research on the role of OBCE in customers' intention to forward online CGC within the fast-growing Islamic banking industry. This study contributes to fill this research gap by assessing the effect of COBE on OBCE and intention to forward online CGC within the context of the Islamic online banking sector in Palestine. In this sense, this study is a first-of-its-kind research on the role of experience on customer engagement with regard to online brand communities of Islamic banks.El objetivo de este estudio es doble: En primer lugar, evaluar el impacto de la experiencia online del cliente con la marca (COBE) en la banca electrónica sobre la intención del cliente de reenviar contenidos online generados por la empresa (CGC). En segundo lugar, explorar el papel del compromiso con la comunidad de marca online (OBCE) y la confianza percibida en la página de la comunidad de marca (BCP) como variables mediadoras entre la COBE y la intención de reenviar CGC online. Esta investigación realizó una encuesta en línea entre varios clientes de bancos islámicos de Palestina que eran miembros de comunidades de marca en línea (páginas de fans) en Facebook. Se recogieron 375 respuestas válidas y los resultados revelaron que el COBE ejerce una doble influencia en la intención de reenviar CGC. Este estudio es una investigación empírica pionera sobre el papel de la OBCE en la intención de los clientes de reenviar CGC en línea dentro del sector bancario islámico, en rápido crecimiento. Este estudio contribuye a llenar este vacío en la investigación evaluando el efecto de la COBE sobre la OBCE y la intención de reenviar CGC online en el contexto del sector de la banca islámica online en Palestina. En este sentido, este estudio es una investigación pionera sobre el papel de la experiencia en el compromiso del cliente con respecto a las comunidades de marca en línea de los bancos islámicos

Islamic entrepreneurship : a case study of the Kingdom of Saudi Arabia : a thesis presented in fulfilment of the requirements for the degree of Doctor of Philosophy in Development Studies, Massey University, Palmerston North, New Zealand

The point of departure in this study is that entrepreneurship, regardless of how it is defined, is more than a means to create employment opportunities and maximise economic returns; it is rather a development alternative with great potential to contribute to the well-being of individuals, communities and nations in developed, developing and less developed countries alike. The purpose of this thesis is to explore the entrepreneurship phenomenon from an Islamic perspective within the Saudi Arabia context. The thesis specifically seeks to examine the relationship between Islamic values and entrepreneurial activity and to establish whether these values can be more effectively tapped into to raise the profile of Islamic form of entrepreneurship and promote alternatives to development. The philosophical differences between the Islamic and the prevailing Western world-views on the theoretical as well as the practical aspects of development are fundamental, to the point where they cannot be marginalised or reconciled and integrated within a standardised single development model. Furthermore, the lack of cultural sensitivity on the part of the Western model and its inability to account for variables specific to the Islamic cultural and institutional environment justify the need to search for an alternative Islamic model of entrepreneurship that best serves the ultimate goal of the Muslim nation (ummah), that is, realising the state of well-being (falah). Despite the suggestion of modernisation theories of development and the prevalent conventional assumption that Islam is intrinsically anti-modernisation and anti-development, and that the religiously based Saudi culture would be the foremost obstacle in the way of cultivating a dynamic entrepreneurship class in Saudi Arabia, the findings of this study indicate otherwise. There is no evidence of incompatibility between Islamic values and entrepreneurship. Lack of entrepreneurial dynamism in Saudi Arabia by no means can be attributed to adherence to Islamic values and business ethics; rather, it can be linked to the state's failure to assimilate the implication of entrepreneurship and consequently to integrate Islamic values into its developmental process. This research indicates that Saudi entrepreneurs embrace positive perceptions and attitudes regarding the role of Islamic values in promoting productivity through entrepreneurship. This positive attitude is independent of both the demographic backgrounds of the entrepreneurs and the physical characteristics of their enterprises. Analysis of case studies of Saudi entrepreneurs revealed inconsistencies between the attitudes and practised behaviours of Saudi entrepreneurs, and the reality of the Saudi entrepreneurship landscape. The personal in-depth interviews with various stakeholders explained this divergence mainly in terms of entrepreneurship policy vacuity and incompatibility between Islamic values and the existing institutional framework, most evident in the financial sector. The findings of this study further confirm that Islamic entrepreneurship is a concept that is misread by the vast majority of Muslims at individual as well as at state levels. Arguably this misinterpretation has caused, and at the same time is largely caused by, the neglect of policymakers, lack of institutional support and deficiency in educational systems that lacked the focus on entrepreneurship development. The study therefore emphasises the need to rethink the current official approach to entrepreneurship, and highlights the importance of devising entrepreneurship policies that draw from local experiences and cultural values. Building a viable entrepreneurship sector also requires the intervention of the state, most likely through a combination of directive as well as facilitative policies. However, the exact form, scope and nature of government intervention should be mapped in line with the findings of future policy-oriented research. The main challenge for Islamic (development) remains operational in nature: how can the Islamic entrepreneurship model be transformed into working policies and enabling institutions? Furthermore, how can any Islamic business ethics be operationalised in the context of the contemporary business environment in order to reap the benefits of Islamic entrepreneurship? These basic questions bring about the inevitable question of whether or not the behaviour and the performance of Islamic entrepreneurship can be or should be judged in the absence of a true "Islamic state where the whole realm of socio-economic human behaviour is engineered according to Islam"1

Saudi Arabia's economic development: entrepreneurship as a strategy

Purpose – The purpose of this paper is to critically review some of the existing literature relevant to Saudi Arabia's quest for development in order to build the argument for the viability of entrepreneurship to Saudi Arabia's development process. Design/methodology/approach – The method employed in this study is a combination of critical examination of existing literature and the authors' personal experience with the developmental and entrepreneurial process. Findings – The successive five-year developmental plans failed to include an entrepreneurship sector, thus failing to address the most pressing unemployment problem facing the economy. Research limitations/implications – The authors critically examined the issue of Saudi Arabia's economic development using secondary data coupled with field experience of the authors. This is a case study, so it did not employ any empirical analysis. Practical implications – The findings of this paper will reinforce the importance of entrepreneurship as a diversification strategy among the policy-making bodies in Saudi Arabia. Although Saudi Arabia advocates the policy of development maintaining Islamic values, the paper makes a case that such Islamic values should be implemented fully to achieve socio-economic justice. Originality/value – The paper comprises derived research based on country analysis coupled with the authors' practical experience with Saudi Arabia's economic development and entrepreneurial activities. It is original in the sense that the authors provide reasoned interpretations of Saudi Arabia's economic development and the role that an entrepreneurial sector can play in achieving balanced socio-economic justice.Economic development, Entrepreneurialism, National economy, Privatization, Saudi Arabia