Adam Abdullah

Neurodefensive Effect of Olea europaea L. in Alloxan-Induced Cognitive Dysfunction and Brain Tissue Oxidative Stress in Mice: Incredible NaturalNootropic

Background: In the controlling of Alzheimer disease (AD) plant with antioxidant activity has attained considerable attention. The plant Oleaeuropaea (OE) L. belong to family Oleaceae is a rich source of natural antioxidant. Therefore the intention of this study was to analyze the neuroprotective effects of ethanolic extract of OE (EEOE) fruits in alloxan-induced cognitive impairment and brain tissue oxidative stress in mice by using Hole Cross (HC) test, Open Field (OF) test, Free Exploration (FE) test, Y-Maze (YM) test and contents of thiobarbituric acid reactivesubstances(TBARS)in braintissuehomogenates of mice. Methods: EEEO fruits were administered to alloxan-induced mice for 21st days. The neuroprotective effects ofthis fruit extracts were examined by using behavioral studies such as HC test, OF test, FE test, YM test and biochemical study such as lipid peroxidation (TBARS) assay. Results: In HC test, administration of EEOE on 14th and 21st day was remarkably (P < 0.05, P < 0.01) increased the number of hole crossed from one chamber to another by mice as compared to the disease control group. Administration of EEOE significantly (P < 0.01) increased the number of square travelled by mice on 21st day with respect to that of disease control group in OF test. In FE test EEOE considerably (P < 0.05, P < 0.01) increased the number of entries to the novel area and time spent in the novel area of the mice on 7th, 14th and 21st day as compared to the disease control group. The administration of EEOE significantly (P < 0.05, P < 0.01) increased the percentage of spontaneous alternation behavior of the mice on 14th and 21st day as compared to that of disease control group in YM test. EEOE administration for successive days markedly (P < 0.05) decreased TBARS level in the brain tissue homogenates of mice with respect to disease control group. Conclusion: The existing study suggests that EEOE fruit shows momentous neurodefensive activity. Consequently, this fruit extract may have impending therapeutic value in the treatment of some neurological disorders alike AD.

Examining US approvals of Islamic financing products and the Islamic theory of lawful profit

Purpose - This paper seeks to analyze the legal interpretation of three Islamic financing products considered for approval by United States authorities, from the United Bank of Kuwait and Guidance Residential, even though the U.S. has not enacted any Shari’ah legislation in relation to the Islamic law of transactions (fiqh mu’amalat). Design/methodology/approach - This paper primarily adopted qualitative document and content analysis, supported by quantitative numerical analysis, in reviewing legal interpretive letters from the U.S. Office of the Comptroller of Currency and National Administrator of Banks (OCC) and the U.S. Department of Revenue. Findings - The research found that in assessing economic substance over legal form, each of the three products involved risk-free transactions and interest. Research limitations/implications - The research had access to published OCC, Department of Revenue and U.S. Patent Office material that fully disclosed the mechanics of each of the selected products. Practical implications - The implication for the Islamic financial institutions involves Shari’ah compliance risk. When tested against the Islamic normative theory of lawful profit, it confirms that the products are non-compliant. Originality/value - The significance of this research for Islamic banking product design and development, is that it enhances the ability to block the legal means to an unlawful outcome (sadd al-dhara’i), thereby avoiding harm (al-darar) attributed to usury (riba), and upholding what is in the public interest (maslahah), in order to fulfil one of the objectives of the Shari’ah (maqasid al-Shari’ah), which is to protect wealth (hafiz al-mal).

Identifying the optimal level of gold as a reserve asset using Black–Litterman model: The case for Malaysia, Turkey, KSA and Pakistan

Purpose After the collapse of the Bretton Woods fixed exchange rate system in 1971, countries moved towards floating exchange rates, and the expectation was that the requirement for foreign reserves would decrease. However, central banks currently hold more foreign exchange reserves to enhance the credibility of exchange rate policies. The demand for gold, which was the main reserve asset prior the collapse of the Bretton Woods system, has increased as a reserve asset once again following the global financial crisis (GFC) of 2008, given gold’s characteristics as a safe haven asset and a store of value. This study aims to analyse official reserves of four countries, namely, Malaysia, Turkey, KSA and Pakistan. The Black–Litterman model was used to build a new strategic portfolio with optimal allocation to gold. This study shows that all countries under the analyses should increase their gold holdings to preserve the value of the portfolio during times of financial turmoil. Design/methodology/approach The Black–Litterman model has been used to build a new strategic portfolio with optimal allocation to gold. The study shows that all countries in our analyses suggested increasing their gold holdings to preserve the value of the portfolio during times of financial turmoil. Findings The study found that countries under the analyses, namely, Turkey, Malaysia, KSA and Pakistan, suggested increasing their official gold holding given the outstanding performance of gold during the GFC. Research limitations/implications Research can be further extended by including few more countries from Organisation of Islamic Cooperation such as Qatar and Indonesia. Originality/value Emerging economies such as China, India and Russia started to sharply increase their official gold holdings in the aftermath of the GFC. According to recent statistics, central banks of China and Russia have been adding to their gold reserves. Of note, only in few European countries and in the USA, is the share of gold in foreign reserves more than 50%. In the rest of the world, this figure is about 3-5%. The paper elaborates the aforementioned subject and suggests the strategic weight of gold reserve for each country under analysis.

Fiat money: from the current Islamic finance scholars’ perspective

Purpose This paper aims to discuss the opinions of current Shariah scholars on the concept of debt money in the present-day fiat money system. Design/methodology/approach Research design of this paper is a quantitative investigation of Shariah experts by distributing a questionnaire to them. As majority of Shariah scholars are also Shariah advisory of the current banking system, it is important to find out their level of knowledge on the issue of debt money created by the commercial banking system through the fractional-reserve banking (FRB) system. Findings Based on this investigation, most Shariah scholars are unaware of and confused about the mechanics underpinning the creation of money, especially with respect to FRB as it is practiced by the conventional and Islamic banking systems. Originality/value Based on this research, it is recommended that these scholars should improve their understanding of the operation of the fiat money system and its consequences. It is recommended that, in future, Shariah scholars should think “outside of the box” by creating Islamic financial instruments that do not resemble those of the conventional system.

Viability cf implementing direct interest-free credit clearance system in Muslim countries

This study aims to examine the possibilities of implementing direct interest-free credit clearance (DIFCC) system,which is one of the viable alternatives to solve the problems of contemporary currency system. The DIFCC, which is based ona netting system,has been implemented successfully by several countries in the conventional setting, not to replace the current fiat money system, but rather as a parallel complementary currency. In this system, the distribution of credit as money will not be monopolized by the commercial banks, rather the distribution ison a mutual basis as long as there are products or services that can be offered to others among the members. As such, the system is fairer compared to the fiat money system and is free from the prohibited elements in Islamic finance such as riba, gharar and maysir as it requires exchange of real goods and services. In the context of the Muslim countries, the negative socio-economic effects of using the fiat money will not allow the countries to attain the objectives of the Shari’ah(maqasid al-Shari’ah). This study discuss the viability of implementing the DIFCC model which essentially applies the concepts of muqasah (nett-off) and hiwalah (transfer), apart from assessing the Shari’ah-compliancy of the model to be implemented as an innovative product in Islamic finance.

An Islamic monetary theory of value and equation of exchange: evidence from Egypt (696-1517)

Purpose - The purpose of this research is to present an Islamic monetary theory of value by analyzing real prices and real money in terms of gold and silver in Egypt from 696 to 1517, a period of 821 years from the Umayyads to the Abbasids. Design/methodology/approach - This paper adopts a quantitative empirical investigation derived from a full population of secondary data to deductively evaluate the measure and store of value functions of money, to affirm an Islamic monetary theory of value, which is also inductively researched through a qualitative interpretation of documentary and content analysis of Islamic and numismatic literature. Findings - The Islamic monetary theory of value leads to an Islamic equation of exchange that reconfirms the outcome of this research, where a high value of money ensures low constant real prices over the long term. Research limitations/implications - The findings are based on an empirical investigation involving a single price of wheat series as a reasonable proxy for changes in wholesale commodity prices generally, which was successfully adopted by other studies. Practical implications - The significance for modern monetary policy is that monetary authorities should adopt an Islamic monetary theory of value to achieve genuine monetary and price stability. Social implications - Through an Islamic equation of exchange, price stability would ensure real economic growth that protects wealth for holders of money due to a stable purchasing power, and combined with Islamic equity finance, more efficiency in allocating investible resources to increase gross domestic product and employment. Originality/value - The Islamic monetary theory of value ensures that there is no transfer or confiscation of wealth through inflation, which would impart gains to the issuer due to the excessive supply of money in relation to demand.

Re-evaluating the practice of hibah trust in Malaysia

Purpose This paper aims to re-evaluate and thus recommends possible ways in improving the current practice of hibah trust in Malaysia. Design/methodology/approach This study conducts a thorough and critical review on relevant literature on Islamic wealth management and estate distribution. Besides, the current practice and application of hibah trust by the Malaysian trustee companies such as Amanah Raya Berhad and As-Salihin Trustee Berhad is analyzed based on information gathered from their publications and direct consultation. Findings Based on the comparison made between hibah trust and its conventional counterpart, living trust, this study found that that the hibah trust product mirrors the conventional living trust, which provides a high degree of freedom to the benefactor to decide on the distribution of his wealth without taking into consideration the interest of the eligible heirs under farai’d. Nevertheless, it is undeniable that the practice of hibah trust would be able to expedite the lengthy and complex procedures of inheritance, reduce administrative costs and avoid legal impediments and inheritance tax. Practical implications This paper proposes a comprehensive framework for an improved asset distribution under hibah trust within the Malaysian Islamic wealth management industry by highlighting the significance of fara’id and wasiyyah rules. This proposed framework of hibah trust would become a useful reference for the policy makers in designing a dedicated regulation or legal provisions in the established laws that will govern the practice of hibah trust in Malaysia. Originality/value The novelty of this paper lies in highlighting the importance of adhering to the law of Islamic inheritance rules as ordained by Allah s.w.t in structuring contemporary Islamic estate planning instruments such as hibah trust, which is not evident in the current practice.