Demak Universal Journal of Islam and Sharia

Corporate Social Responsibility in Islamic Banks of Bangladesh: A Trend Analysis

Md. Riazul Haque — 2025-05-05

Objective: The study aims to explore the sector-wise contributions to Corporate Social Responsibility activities by full-fledged Islamic banks of Bangladesh and Evaluate the consistency and effectiveness of CSR practices across different Islamic banks. Theoretical framework: The theoretical framework for this study is grounded in Stakeholder Theory and Islamic Ethical Principles, emphasizing the obligation of Islamic banks to uphold social justice, transparency, and community welfare. It explores how Shariah-compliant institutions integrate CSR into operations, guided by both religious values and stakeholder expectations and analyzes emerging trends in their CSR practices in Bangladesh. Literature review: The literature review includes data and publications central bank (Bangladesh Bank), academic papers, reports from Islamic banks, articles, and previous research studies, reputable news outlets, financial reports, and different publications from both government and non-governmental organizations involved in CSR initiatives of Bangladesh. Methods: This study utilizes CSR expenditure data from full-fledged Islamic banks, covering the period from (July to December) 2018 to 2022, sourced primarily from Bangladesh Bank publications. Tables, graphs, and charts will be employed to visually represent the data and support the interpretation of the findings. Results: The analysis reveals a steady increase in CSR expenditures and a growing emphasis on key sectors such as disaster management, healthcare education, etc. From 65.69 Crore BDT in 2018 (July- December) to 255.07 Crore BDT in 2022 (July- December), representing more than a quadrupling of the initial amount. Implications: These findings These findings provide important implications for stakeholders. The trend analysis of CSR practices in Islamic banks in Bangladesh indicates a steady yet encouraging development in their social responsibility efforts. While many banks are actively contributing to areas like charity, healthcare, and education, a truly comprehensive approach that reflects Islamic ethical principles and a focus on long-term sustainability is still missing. Novelty: The novelty of this study lies in its cross-biannual comparative approach and specific focus on the expenditure of full-fledged Islamic banks in corporate social responsibility, which has not been systematically studied in the context of Bangladesh.

Zakat as a Legal Obligation in Sharia within the Context of Contemporary Taxation Systems

Alwy Ahmed Mohamed — 2025-05-17

Objective: This study aims to investigate the feasibility and implications of integrating Zakat, an Islamic obligatory almsgiving system, into modern state taxation structures within Muslim-majority countries. Theoretical framework: The research is grounded in two complementary theoretical frameworks: fiscal sociology, which explores how taxation reflects socio-legal norms, and Islamic economic theory, which emphasizes wealth redistribution through moral and religious obligations. Literature review: The literature review highlights that while scholars such as Yusuf al-Qaradawi, Monzer Kahf, and Habib Ahmed have extensively discussed zakat’s socio-economic role, there remains a gap in practical models that link zakat to national tax regimes without compromising Sharia principles or state fiscal efficiency. The coexistence of these systems often leads to conceptual confusion and administrative inefficiencies, particularly in countries like Malaysia, Indonesia, Pakistan, and Saudi Arabia. Methods: Methodologically, this research adopts a qualitative, comparative legal and economic approach, drawing on policy documents, legal statutes, and case studies from selected Muslim-majority countries. It critically examines institutional frameworks, public finance policies, and compliance behavior, while also employing doctrinal analysis of maqāṣid al-sharīʿah (objectives of Islamic law) to assess religious alignment. Results: The findings reveal that integration is hampered by legal fragmentation, institutional redundancy, and low public trust. However, models that incorporate zakat into the tax system—either through deductions, exemptions, or parallel recognition—demonstrate improved compliance, reduced welfare burdens on the state, and enhanced civic participation rooted in religious ethics. The study proposes a Hybrid Integration Framework comprising legal recognition, digital registries, transparent oversight, taxpayer choice mechanisms, and intersectoral collaboration. Implications: The implications of this research are significant for policymakers seeking to harmonize Sharia-based obligations with secular governance systems. By fostering synergy between religious mandates and public finance tools, this study offers a pathway toward more equitable and accountable fiscal models. Novelty: The novelty of this study lies in its dual-theoretical lens and the practical policy framework it develops for integrating religious and civic financial duties in a way that aligns with both ethical and administrative imperatives.

Laws and Guidelines for Muamalah Through Social Media: Sharia Perspectives in the Digital Era

Achmad Ridwan — 2025-07-08

Objective: This study is to systematically examine the laws and guidelines of mutual understanding through social media from the perspective of Islamic law, in response to the rapid development of economic and social interaction on digital platforms. Theoretical framework: this research is based on sharia principles taken from the Qur'an and Hadith, as well as Islamic ethical values such as honesty (shidq), Amanah, tabayyun, and clarity of the contract. Literature review: This research includes primary sources such as the Qur'an and Hadith, as well as secondary sources in the form of jurisprudence, scientific articles, MUI fatwas, and laws and regulations relevant to digital muamalah. Methods: This study uses a qualitative approach with the library research method, through an in-depth analysis of literature related to Islamic law and interaction on social media. Results: This study shows that muamalah through social media is permissible in Islam as long as it does not contradict sharia principles such as the prohibition of riba, gharar, maysir, and tadlis. This research also emphasizes the importance of applying Islamic ethics in digital interactions. Implications: This study highlights the need to increase education about digital fiqh muamalah fiqh, collaboration between scholars, the government, and digital platforms, as well as the preparation of regulations that are adaptive to technological developments to minimize sharia violations on social media. Novelty: this research lies in the systematization of comprehensive sharia guidelines in muamalah on social media, which can be a practical reference for Muslims in interacting digitally responsibly and by religious teachings.

Sharia Pharmacy: Ethical Perspectives on Generic Drug Use in Contemporary Medical Practice

Meia Yevi Setyawati — 2025-07-29

Objective: To analyze the relationship between modern pharmaceutical practices and Sharia principles, focusing on the halal compliance of generic drugs, and to explore how these principles enhance accessibility, fairness, and ethical integrity in healthcare. Theoretical framework: This study is grounded in Sharia pharmacy principles, emphasizing Islamic ethics (halal, fairness, and social responsibility) as well as the balance of benefits and risks in modern pharmaceutical practices. Literature review: The review includes studies on the development and use of generic drugs in Indonesia, the integration of halal certification in pharmaceutical production, and the ethical considerations in Sharia-compliant healthcare systems. Methods: A qualitative approach analyzing regulations, halal certification standards, and ethical guidelines in Sharia pharmacy, combined with a conceptual analysis of the alignment between generic drug practices and Islamic values. Results: The findings highlight that generic drugs, when produced according to halal principles, provide both affordability and ethical assurance. The study confirms the importance of halal certification to ensure the suitability of pharmaceutical products for the Muslim community and the alignment of modern practices with Sharia ethics. Implications: The study suggests the need for stronger collaboration between pharmaceutical companies, halal certification bodies, and healthcare professionals to ensure the integrity and accessibility of Sharia-compliant medicines in Indonesia. Novelty: This research uniquely bridges the gap between modern pharmaceutical practices and Sharia ethics, offering a comprehensive perspective on how generic drugs can fulfill both economic and religious requirements in the healthcare system.

The Influence of Sharia Health Ethics on Pharmaceutical Innovation in the Muslim World

Aditya Naova Sofyan — 2025-07-29

Objective: This study aims to analyze the integration of Islamic philosophy with the concept of health and its influence on the development of modern pharmacy, especially in the application of Islamic values to halal, ethical, and sustainability standards. Theoretical framework: The theoretical framework of this research is based on the maqasid sharia, which emphasizes the preservation of the soul, health, and well-being, as well as the philosophical thought of Islamic science represented by the contributions of classical scientists such as Al-Razi, Ibn Sina, and Al-Zahrawi in the development of pharmaceuticals. Literature review: A literature review involved 15 journals accessed through trusted databases (PubMed, Scopus, and Google Scholar), which discussed the contributions of Muslim scientists to herbal medicine, clinical observation, pharmaceutical innovation, and the application of Islamic values in pharmaceutical research and production. Methods: This study uses a literature review method with a qualitative approach, analyzing relevant academic articles and journals to identify the integration of Islamic values in modern pharmacy. Results: The results of the study show that classical Muslim scientists made significant contributions to modern pharmacy, including herbal medicine techniques and pharmaceutical innovations. In addition, Islamic values encourage the application of halal standards in the ingredients, production, and distribution of medicines. The challenges that arise include regulatory limitations and gaps in understanding the application of Islamic values in the pharmaceutical industry. Implications: These findings emphasize the importance of cross-sectoral collaboration between academia, industry, and regulators to develop modern pharmaceuticals based on Islamic values. This approach is considered more ethical, sustainable, and by the needs of the Muslim community. Novelty: This research offers a new perspective by integrating Islamic philosophy of science and health concepts into the development of modern pharmaceuticals, which have rarely been comprehensively discussed in previous research.

Cairo's Halal Restaurant Industry: Exploring Sharia-Based Financing and Fatwa Influence

Mariam Elbanna — 2025-08-09

Objective: This study aims to analyze the level of Sharia compliance in the financing practices of mudharabah contracts based on the fatwas of the Council of Egyptian Scholars, using the case study of a Sharia Restaurant in Egypt. This research is motivated by the importance of implementing Sharia principles in financial transactions, particularly in the microeconomic sector, to align with the values of justice and transparency as taught in Islam. Theoretical framework: The theoretical framework of this study refers to the concept of Sharia compliance and the fundamental principles of fiqh muamalat, particularly in syirkah and mudharabah contracts, as well as contemporary perspectives on fatwas as a source of Islamic economic law. Literature review: The literature review includes previous studies on the implementation of mudharabah contracts in the microeconomic sector and emphasizes the importance of supervision by local scholars in economic practices. Methods: This study employs a qualitative approach using in-depth interviews, participatory observation, and documentation to thoroughly explore the financing practices implemented. Results: The findings reveal that the Sharia Restaurant in Egypt has implemented mudharabah contracts by the fatwas of the Egyptian Scholars Council, through profit-sharing mechanisms based on pre-agreed ratios (nisbah), transparent fund management, and active involvement of business partners in decision-making processes. These practices reflect the principles of justice, shared responsibility, and the avoidance of gharar (uncertainty) and riba (usury). Implications: The implications of this study highlight that adherence to local fatwas can serve as a strategic guide for strengthening Sharia-based microeconomics. For Islamic financial institutions and micro-entrepreneurs, this study offers insight and inspiration for implementing Sharia-compliant partnership-based contracts. Novelty: The novelty of this research lies in its focus on the local Egyptian context, which is rarely explored in the Sharia compliance literature, as well as its analytical approach to the implementation of local scholars’ fatwas in microeconomic practices.

Islamic Law in Plural Legal Systems and the SDGs: A Comparative Analysis of Indonesia, Bangladesh, and Kenya

Alwy Ahmed Mohamed — 2025-08-25

Objective: This study aims to analyze how Islamic law is interpreted, institutionalized, and practiced in the fields of family, inheritance, and Islamic finance, as well as how these interpretations interact with national constitutions and international human rights norms. Theoretical framework: The theoretical framework of this research is based on the concept of legal pluralism, the relationship between religious law and state law, and the framework of the Sustainable Development Goals (SDGs), specifically SDG 5 (Gender Equality), SDG 10 (Reducing Inequality), and SDG 16 (Peace, Justice, and Strong Institutions). Literature review: Reviews the theory of legal pluralism, constitutional debates in multireligious postcolonial countries, and previous studies of Islamic legal practice in Indonesia, Bangladesh, and Kenya, with a focus on issues of gender, judicial consistency, and human rights. Methods: This study uses a comparative qualitative method with a doctrinal legal analysis approach, legal case evaluation, and secondary literature synthesis. Data were analyzed across jurisdictions to compare Islamic legal practices in Indonesia, Bangladesh, and Kenya. Results: The results show different models of Islamic law implementation: Indonesia combines national and regional authorities (e.g., in Aceh), Bangladesh enforces Islamic family law through civil courts, while Kenya restricts sharia to the constitutionally recognized Kadhi courts. Legal pluralism promotes cultural inclusion, but it also creates inconsistencies in the protection of gender rights and the coherence of the justice system. Implications: Affirms the importance of harmonizing religious law with the constitution to strengthen human rights, inclusive justice, and legal reform by the SDGs. Novelty: A comparative analysis of three countries with different contexts and the direct link of Islamic law to the global agenda of the SDGs, in particular, gender equality, inequality reduction, and institutional strengthening.