Islamic banks were relatively unaffected during the recent financial meltdown. This has raised the possibility that financial institutions, operating on Islamic principles are more stable compared to their conventional counterparts. This motivates us to undertake to examine relative stability between Islamic and conventional banks. Z-score and NPL are used as proxies for bank stability. Computation of Z-score and NPL suggest that on average Islamic banks are relatively more stable than their conventional counterparts. Standard panel data analysis suggests that factors affecting both Islamic and conventional banks stability are similar, except for the degree of diversification in income. Stability is not a function of income diversification for Islamic banks but it is in the case of conventional banks. This explained why during recent crisis, when various sources of bank income was adversely affected, Islamic banks remained stable as opposed to the conventional banks.

This study examines the two important aspect of latest technology issues in Islamic finance that related to artificial intelligence (AI) and smart contract. AI refers to the ability of machines to understand, think, and learn in a similar way to human beings, indicating the possibility of using computers to simulate human intelligence. Smart contract is a computer code running on top of a block-chain containing a set of rules under which the parties to that smart contract agree to interact with each other. The main objectives of this article are to evaluate the operations of AI and smart contract, to make comparison between the operations of AI and smart contract. This article concludes that AI and smart contract will have a huge impact in future for Islamic Finance industry.

This paper investigates the use of the green sukuk, particularly, for financing the renewable energy projects. More precisely, three case studies have been chosen for discussion. In the first case study, we highlight "Hybrid Sukuk" framework adopted by Tadau Energy Sdn. Bhd. for financing solar photovoltaic (PV) plants. The second case study, we reviewed "Sukuk Wakalah" issued by BEWG (M) Sdn. Bhd., as an ideal solution for water treatment project. Finally, for the third case study, we have discussed in detail about "Sukuk Murabahah" which is being used by Sarawak Hidro Sdn. Bhd. for financing the hydroelectric plant (BAKUN hydroelectric project).

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This study examines whether gold is used as a safe haven, hedge or diversifier during the recent financial crisis. We employed three different daily data set, full sample period from 18/07/2001 to 27/07/2007, the pre-crisis period between 18/07/2001 to 27/07/2007 and the post-crisis period between 09/03/2009 to 31/01/2017. This paper employs a structural vector auto-regression (SVAR) model. In fact, this research investigates the dynamic relationship between gold, stocks, bond market and exchange rate. The exchange rate variable consists of USD/MYR, RMB/MYR and EURO/MYR. This analysis suggest that gold return appear to be a weak safe haven for stock, diversifier for bonds and a weak hedge against USD/MYR. Finally, the results confirm that stock return is a weak hedge for government bond.