The Law and Regulation of Franchising in Malaysia’s Islamic Finance Industry: Problems, Prospects and Policies

With the increasing expansion of the global Islamic finance industry beyond its traditional strongholds, there is a gradual increase in the global franchising opportunities in Islamic finance. As one of the pioneering studies on franchise in Islamic finance, this paper examines the Malaysian l...

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Main Author: Umar A. Oseni
Format: Article
Language:Arabic
Published: Universiti Sultan Azlan Shah 2016-12-01
Series:Global Journal Al-Thaqafah
Subjects:
Online Access:http://www.gjat.my/gjat122016/11220160602.pdf
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author Umar A. Oseni
author_facet Umar A. Oseni
author_sort Umar A. Oseni
collection DOAJ
description With the increasing expansion of the global Islamic finance industry beyond its traditional strongholds, there is a gradual increase in the global franchising opportunities in Islamic finance. As one of the pioneering studies on franchise in Islamic finance, this paper examines the Malaysian legal framework on franchising within the Islamic finance industry. Over the years, there has been tremendous growth in the franchise industry in Malaysia and the Islamic financial institutions are not left out in this welcome development. While the franchise industry contributed RM24.6 billion or 2.8% to the Malaysian GDP in 2013, it has been projected that such contribution will reach RM25.4 billion by the end of 2014. The study adopts a qualitative legal method in analyzing the relevant legislations, as they are applicable to Sharī‘ah-compliant business of Islamic financial institutions. The study finds that there is no specific framework for Sharī‘ah-complaint business in Malaysia, including Islamic finance business. Malaysia has vast opportunities in expanding its franchise industry through the amendment of the relevant legal framework to cater for Islamic finance business. This is expected to project Malaysia as a global hub for Islamic finance products and a destination for Sharī‘ah-complaint franchise businesses at the global level.
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spelling doaj.art-9916590cd7f04b85957b50e5e24e6c292022-12-21T22:39:05ZaraUniversiti Sultan Azlan ShahGlobal Journal Al-Thaqafah2232-04742232-04822016-12-0162374510.7187/GJAT11220160602The Law and Regulation of Franchising in Malaysia’s Islamic Finance Industry: Problems, Prospects and PoliciesUmar A. Oseni0International Islamic University MalaysiaWith the increasing expansion of the global Islamic finance industry beyond its traditional strongholds, there is a gradual increase in the global franchising opportunities in Islamic finance. As one of the pioneering studies on franchise in Islamic finance, this paper examines the Malaysian legal framework on franchising within the Islamic finance industry. Over the years, there has been tremendous growth in the franchise industry in Malaysia and the Islamic financial institutions are not left out in this welcome development. While the franchise industry contributed RM24.6 billion or 2.8% to the Malaysian GDP in 2013, it has been projected that such contribution will reach RM25.4 billion by the end of 2014. The study adopts a qualitative legal method in analyzing the relevant legislations, as they are applicable to Sharī‘ah-compliant business of Islamic financial institutions. The study finds that there is no specific framework for Sharī‘ah-complaint business in Malaysia, including Islamic finance business. Malaysia has vast opportunities in expanding its franchise industry through the amendment of the relevant legal framework to cater for Islamic finance business. This is expected to project Malaysia as a global hub for Islamic finance products and a destination for Sharī‘ah-complaint franchise businesses at the global level.http://www.gjat.my/gjat122016/11220160602.pdfIslamic financeFranchiseShari’ah-compliant businessMalaysiaIslamic lawRegulation of franchise
spellingShingle Umar A. Oseni
The Law and Regulation of Franchising in Malaysia’s Islamic Finance Industry: Problems, Prospects and Policies
Global Journal Al-Thaqafah
Islamic finance
Franchise
Shari’ah-compliant business
Malaysia
Islamic law
Regulation of franchise
title The Law and Regulation of Franchising in Malaysia’s Islamic Finance Industry: Problems, Prospects and Policies
title_full The Law and Regulation of Franchising in Malaysia’s Islamic Finance Industry: Problems, Prospects and Policies
title_fullStr The Law and Regulation of Franchising in Malaysia’s Islamic Finance Industry: Problems, Prospects and Policies
title_full_unstemmed The Law and Regulation of Franchising in Malaysia’s Islamic Finance Industry: Problems, Prospects and Policies
title_short The Law and Regulation of Franchising in Malaysia’s Islamic Finance Industry: Problems, Prospects and Policies
title_sort law and regulation of franchising in malaysia s islamic finance industry problems prospects and policies
topic Islamic finance
Franchise
Shari’ah-compliant business
Malaysia
Islamic law
Regulation of franchise
url http://www.gjat.my/gjat122016/11220160602.pdf
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