Purpose This paper aims to present a conceptual model on service quality of zakat institutions that are responsible for collecting, managing and distributing zakat in Malaysia. Zakat is an Islamic religious “tax” charged on the rich and well-to-do members of the community for distribution to the poor and the needy as well as other beneficiaries based on certain established criteria according to the Qur’an. The main aim of zakat is to protect the socio-economic welfare of the poor and the needy. Design/methodology/approach The paper reviews and synthesizes the relevant literature on service quality. The paper then proposed a conceptual model to study the service quality of zakat institutions. Findings The paper identifies the appropriate methods to examine the extent of service quality of zakat institutions. Such evaluations are crucial for organizations like zakat institutions to function effectively to achieve the noble objectives of socio-economic justice through proper distribution of wealth. Originality/value This paper presents a conceptual model of service quality of zakat institutions which would be useful for further empirical research in this area. The findings are not only relevant and applicable to Malaysia but also to other Muslim countries.

Today, the issue of illegitimate child (IC)

Purpose The purpose of this paper is to examine the Shariah view on the legitimacy of requiring the entrepreneur to prove that he/she has complied with all business requirements in case the actual profit was below the expected profit in trust-based contracts such as mudarabah and musharakah. Design/methodology/approach This paper is part of the research which applies qualitative research approaches, including among others, content analysis, interviews, observations and descriptive analysis using fiqh muqaran (comparative analysis of jurists’ arguments) in few phases. Findings The study found that shifting the burden of proof to the fiduciary is the weightier view and necessary to ensure that both sides are protected. The considerations of protecting people’s wealth (ḥifẓ amwāl al-nās) and mitigating widespread greed (ṭamaʿ) are among the reasons for allowing elements such as ʿurf, tuhmah and dalālat al-ḥāl to be treated as bayyinah in trust-based contracts when the fiduciary is obliged to defend himself from litigation. Research limitations/implications The study is meant to strengthen the practices of Islamic banks world wide. Practical implications Few protections can be applied for capital provider. Social implications This study is meant to give solution in dealing with moral hazard of both parties, and to provide solution to the regulator for policy drafting and to increase confidence to the industry. Originality/value The finding is important in assisting the regulators in drafting the policy to protect both parties without neglecting the essence of trust-based contracts.

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This paper was undertaken with the purpose of conducting a critical review of the framework for Takaful in Nigeria in achieving shari’ah compliance by comparing it with those available in Malaysia and Pakistan. The review looked at laws and other regulations, Takaful operations including models and marketing structure and dispute resolution mechanisms. The study found there are loopholes within the Nigerian system as compared to those in Malaysia and Pakistan regarding enacted legislation and requirements for capacity to serve on shari’ah advisory boards. Deficiencies also exist with regard to the qualification requirements for management and marketing staff and in the absence of an adequate dispute resolution mechanism. Recommendations arising from the research include suggestion that Nigeria enact specific all-encompassing legislation to regulate Takaful. There is also the need for the creation of a specialized system for resolving Takaful disputes and the requirement of specialized training for Takaful personnel.