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A Critical Review of Takaful Companies’ Contributions to Economic Developments in Fulfilment of Maqasid al-Sharīʿah: Evidence from Malaysia

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Enhancing Financial Inclusion through Islamic Finance, Volume I

Abstract

Islamic insurance (Takaful) has seen rapid growth in recent years. Past studies have provided empirical evidence that Islamic finance industry can play a positive role in economic development. However, limited empirical evidences exist on the influence of takaful industry developments towards ensuring economic development. The relevant data were collected for the takaful industry from Bank Negara Malaysia, the Malaysian central bank’s website, while macroeconomic data have been collected from the World Bank’s website. Regression analysis has provided statistically positive evidence that takaful industry growth can contribute towards economic development. While this study is limited to Malaysian context, it is expected that future studies can improve generalizability by exploring a global scenario. In fact, this study is unique in the sense that it provides empirical evidences that allow regulators and takaful operators to realize the contribution of takaful industry towards the economy.

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Author information

Authors and Affiliations

  1. Islamic Economics Institute, King Abdulaziz University, Jeddah, Saudi Arabia

    Abu Umar Faruq Ahmad

  2. Islamic Cooperative Finance Australia Ltd., Parramatta, Australia

    Abu Umar Faruq Ahmad

  3. Islamic Bank of Australia Project, Sydney, Australia

    Abu Umar Faruq Ahmad

  4. Faculty of Business, Communication and Law, INTI International University, Kuala Lumpur, Malaysia

    Rashedul Hasan

Authors
  1. Abu Umar Faruq Ahmad
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  2. Rashedul Hasan
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Editor information

Editors and Affiliations

  1. Islamic Research and Training Institute, Islamic Development Bank, Jeddah, Saudi Arabia

    Abdelrahman Elzahi Saaid Ali

  2. Islamic Research and Training Institute, Islamic Development Bank, Jeddah, Saudi Arabia

    Khalifa Mohamed Ali

  3. International Islamic University Islamabad, Islamabad, Pakistan

    Muhammad Khaleequzzaman

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Ahmad, A.U.F., Hasan, R. (2020). A Critical Review of Takaful Companies’ Contributions to Economic Developments in Fulfilment of Maqasid al-Sharīʿah: Evidence from Malaysia. In: Elzahi Saaid Ali, A., Ali, K., Khaleequzzaman, M. (eds) Enhancing Financial Inclusion through Islamic Finance, Volume I. Palgrave Studies in Islamic Banking, Finance, and Economics. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-39935-1_6

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  • DOI: https://doi.org/10.1007/978-3-030-39935-1_6

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-39934-4

  • Online ISBN: 978-3-030-39935-1

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

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