Takaful Insurance in the Palestinian Territories: Reality and Development Mechanisms

Ismaeil Mohammad Shindi Amayreh, Faculty Member, AlQuds Open University, PalestineFollow
Kifah Abdul qader Al Ssuwari, Faculty Member, Amman Arab University, Jordan

Abstract

This study aims to investigate Takaful insurance in the Palestinian territories, as one of the most important financial cases that has gained prominence on the Palestinian economic landscape following the establishment of Islamic banking. This study provides a comprehensive analysis of the current state of Takaful insurance, identifying obstacles and challenges that hinder its growth in Palestine. Given the distinct socio-economic and political circumstances in Palestine, and in an attempt to create practical mechanisms for the development of Takaful insurance in this region, the study aims to promote the role of Takaful insurance in fostering public confidence. Takaful offers insurance coverage firmly rooted in Sharia principles to prevent individuals from engaging in prohibited financial transactions, hence affirming, once more, Sharia’s relevance to every time and place. Furthermore, the study highlights the adaptability of Islamic jurisprudence in devising viable, Sharia-compliant solutions to contemporary financial and social challenges. The study is organized into four sections and a conclusion. The first section explores the concept, origins, and jurisprudential rulings of Takaful insurance. The second section examines its objectives and foundational pillars. The third section delves into companies operating within the Takaful insurance sector in the Palestinian territories. The fourth section offers an assessment of the current state of Takaful insurance in Palestine and proposes mechanisms for its advancement. The study concludes with a summary of its findings and recommendations. To address its objectives and reach substantive conclusions, the study employs a descriptive-analytical methodology supplemented by inductive reasoning. Interviews were conducted with relevant parties to collect relevant data.

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Recommended Citation

Amayreh, Ismaeil Mohammad Shindi and Al Ssuwari, Kifah Abdul qader (2025) "Takaful Insurance in the Palestinian Territories: Reality and Development Mechanisms," Journal of King Abdulaziz University: Islamic Economics: Vol. 38: Iss. 3, Article 3.
DOI: https://doi.org/10.64064/1658-4244.1008