Commissioned research means research work that is outsourced to an external party or parties based on topics identified by ISRA. External parties can be either an individual or a group who are expert in the area chosen by ISRA. The commissioned research could be done either in a collaborative form (known as commissioned collaborative), whereby ISRA researchers or practitioners may also be involved in the research, or could be conducted exclusively by the commissioned researcher(s). Examples of commissioned research projects conducted thus far include the following:

  1. Islamic Pricing Benchmark 
  2. Market Segmentation and the Shariah Compliancy Process in Islamic Banking Institutions (IBIs) 
  3. An Appraisal of Longevity Risk : Conventional and Islamic Perspectives 
  4. A Comparative Analysis of Shari'ah Governance in Islamic Banking Institutions scross Jurisdictions
  5. Issues of Taqsir and Ta'addi, Guarantee and Managing Moral Hazard in Mudarabah and Musharakah Products
  6. The Application of International Financial Reporting Standards (IFRS) in Islamic Financial Transactions: Some Issues
  7. A Critical Analysis of the Current Islamic Banking Structure in Malaysia
  8. Challenges and Constraints in the Application of the Mudarabah and Musharakah Concepts in Malaysia


The Fatwa and translation unit is in charge of translating resolutions, fatwas and articles relevant to the Islamic finance industry from Arabic to English. This effort assists the Islamic finance industry to be more familiar with the views of leading Islamic organizations, institutions and scholars whose resolutions and fatwas about financial issues are documented in the Arabic language.

The main projects conducted and ongoing under the fatwa and translation unit are as follows:
1. Translations of Fatwas, Resolutions and Standards from the following institutions:

  1. OIC Fiqh Academy
  3. Kuwait Finance House
  4. Dallah al-Barakah
  5. Arab Banking Corporation
  6. Faisal Islamic Bank
  7. Muslim World League

2. Online databases:

  1. Thomson Reuters 
  2. Bloomberg




The takaful unit conducts research on the Takaful industry, also referred to as the Islamic insurance industry. The takaful market is considered the fastest growing service industry due to the growing demand for takaful services. Therefore, this unit provides adequate information and awareness for the public at large about various takaful operations. The research conducted is not only from a theoretical aspect but also within an empirical and practical framework. The unit has conducted research on topics such as Family Takaful, General Takaful, and the usage of various Islamic contracts.

The main research projects conducted under the Takaful Unit are as follows:

  1. Insurable Interest in Takaful Practices: An Analysis 
  2. The Concept and Challenges of Takaful Investment in Malaysia 
  3. Application of the Wadiah Concept in Traditional Family Takaful Products
  4. The Parameters of Permissible Risk in Takaful 
  5. A New Re-Takaful Model Based on Wadi'ah 
  6. The Investment Initiative in Takaful: Issues and Challenges 
  7.  إعادة التكافل على أساس الوديعة 
  8. Offerring MRTT For The Borrowers Of Conventional Home/Housing Loans: An Analysis From A Shari'ah Perspective







While the inherent strength of Islamic finance has contributed to its viability and resilience, foundations for the sustainability of Islamic finance need to be continuously strengthened. Various stakeholders should understand the Shari’ah principles that determine Islamic finance and the application of these principles in Islamic financial services, products and instruments; as well as the various Islamic modes of investment, financing and risk mitigating alternatives. The full comprehension of these fundamental principles is achievable through comprehensive study and research.

In line with this, the Research Development & Innovation Department (RDI) is dedicated to conduct high impact and cutting-edge research that is crucial for the development of Islamic finance industries (IFIs) and thus working towards fulfilling ISRA’s mission and vision to be ‘the premier Shari’ah research centre in Islamic finance’. The department, through its rigorous research, high quality training and workshops and constant collaboration and interactions with regulators, practitioners and academicians, has been able to maintain a solid presence and relevance in the Islamic finance industry, i.e. the banking, capital market and takaful sector.

As such, the RDI has initiated different types of highly insightful and intuitive research on Islamic finance, emphasizing strongly on Shariah fundamentals and principles. This is done as means to dissimilate knowledge and awareness about Shariah within the Islamic industry and among the stakeholders; particularly the regulators, industry practitioners and the public at large. Each research thoroughly unravels the Shariah issues on the topic, while also highlighting Shariah perspectives of it.

ISRA’s Research Development & Innovation Department (RDI) has established dedicated units that cater to the demands of the research and development (R&D) from different sectors within Islamic finance industry.

Currently there are four (4) Units under ISRA’s Research Development & Innovation Department (RDI):

  • Islamic Banking Unit
  • Islamic Capital Market Unit
  • Takaful Unit
  • Fatwa and Translation Unit





The Islamic banking unit is in charge of conducting research relevant to the Islamic banking industry. This unit tackles all aspects and issues in the banking industry with a particular focus on Shari’ah-related matters in both Islamic and conventional banking. This unit interacts with both academicians and practitioners in the industry to deliver very comprehensive research, not only from theoretical and fundamental aspects, but also from a practical perspective. In some cases, by thorough research and investigation of the issues, it provides an Islamic alternative that is more suitable to fulfill the objectives of the Shari’ah (Maqasid Shari’ah).

The main research projects which have been conducted under the Islamic banking unit are as follows:

  1. Banking for the Poor: The Role of Islamic Banking in Microfinance Initiatives 
  2. Alternative Dispute Resolution in Islamic Financial Services
  3. Fatwas on Islamic Finance: A Comparative Study between Malaysia and GCC Countries
  4. Implementasi Ibra' dalam Produk berasaskan Harga Tangguh dalam Sistem Perbankan Islam : Analisis dari Segi Perspektif Operasi Perbankan dan Maqasid Syari'ah
  5. Parameters of Hiyal in Islamic Finance (in Malay)
  6. A Framework for Islamic Financial Institutions to Deal with Shariah-Non-Compliant Transactions 
  7. Critical Appraisal of the Rahn-Based Islamic Microcredit Facility 
  8. Instruments for Meeting Capital Adequacy Requirements Under Basel III: A Shari’ah Perspective
  9. Analisis Kewajipan Zakat Emas Terhadap Pelaburan Emas Di Malaysia