The Muamalat Newsletter Vol. 2 2024

FEM eNewsletter | December 2024 51 Exploring Motor Takaful Choices of FEM Students Junaidah Abu Seman, Nur Suraya Azri, Mohd Irfan HaqimyMunshi, Nur Farah Natasha Zainan, Nur Afiqah Syahmira Sabarudin & Nur Dayini SyadiahMohd Noor Faculty of Economics and Muamalat Universiti Sains Islam Malaysia Md Husin (2020), takaful adheres to Islamic ideals by emphasizing the sharing of risks and ethical concerns. This makes it particularly appealing to consumers who want financial solutions that correspond with their religious convictions. International Market Analysis Research and Consulting (IMARC, 2024) reported that the present value of global takaful market is expected to increase from USD 27.6 billion to USD 75 billion by 2033. Due to the bigger Muslim population, takaful becoming more popular in the Asia Pacific and GCC regions. Furthermore, the takaful industry is growing since most Muslims worldwide are young—60% of themare under 25 (Sadiq, 2023). This article aims to explore the potential factors that influence the willingness of the students from the Faculty of Economics and Muamalat (FEM) to participate in motor takaful. Introduction According to Bank Negara Malaysia, the takaful sector has experienced significant growth, attracting interest from individuals of both Muslim and non-Muslim backgrounds. Currently, there are about 330 takaful operators in 47 countries (Ali, 2023). Malaysia has made notable progress in the development of its takaful industry. The inception of the first takaful corporation took place in 1985, after the implementation of the Takaful Act of 1984. The Arabic term takaful means “to take care of one’s needs” and is a derivative of the verb kafal. The term kafalah (noun) can indicate “joint guarantee” or “guaranteeing each other” (Rizwan & Al- Malkawi, 2024; Abdul Wahab et al., 2007; Nu et al., 2015). The growing popularity of takaful products demonstrates the rising need for financial services that adhere to Sharia principles (Razak et al., 2013). According to Bhatti and