MS/PhD Research Guide · Islamic Banking and Finance
How to prepare a research proposal
A step-by-step scholarly guide to moving from an area of interest to a feasible question, a defensible research gap, and a focused working title.
Begin with the research problem, not the title
Before starting a research proposal, students should proceed in a systematic and focused manner. A strong research proposal does not begin with a title only; rather, it begins with the careful selection of area, narrowing of scope, review of literature, and identification of a research gap.
In Islamic banking and finance, a promising idea must also be framed as an answerable scholarly question. The student needs to know which institution, practice, population, contract, or market is under examination; what the existing literature already explains; and what further insight the proposed study can realistically produce. These decisions form a sequence. If one is skipped, the eventual title may sound attractive while the proposal itself remains difficult to defend.
This guide takes the student through seven connected stages. The first three establish the field, scope, and nature of the inquiry. The next two show how to read published research critically. The final stages establish the contribution and formulate the title. The examples at the end illustrate how those choices fit together.
Explore the guide
Seven stages, grouped into four tabs
Open each tab to read the complete explanation. The numbered sections remain separate text blocks in the WordPress editor.
1. Determine the broad area of research
A proposal begins with a domain of inquiry. Before choosing a narrowly worded topic, ask which part of Islamic economics and finance you want to understand. This may be banking, non-bank finance, the corporate sector, or capital markets. Interest alone is a useful starting point, but the area should also fit the student’s preparation, supervisory expertise, and the time available for an MS or PhD project.
At the first stage, students should identify the general area or sector in which they want to conduct research. For example:
- Banking sector
- Islamic banks
- Conventional banks
- Comparative study between Islamic and conventional banks
- Non-banking financial sector (NBFIs)
- Takaful
- Modaraba companies
- Leasing companies
- Microfinance institutions
- Firms/corporate sector
- Capital markets
This step is important because it helps the student decide the larger domain of study.
The categories should guide exploration rather than confine it. A banking question may concern only Islamic banks, only conventional banks, or a comparison. In non-bank finance, takaful, modaraba companies, leasing companies, and microfinance institutions each raise distinct institutional and regulatory questions. Firms and capital markets can be considered in their own right. Recording several possible problems within one broad area helps the student move to the next stage without prematurely committing to a title.
2. Narrow down the selected area
Once the sector is identified, move from a general interest to a bounded issue. Specify the institutions or products to be studied, the dimension that matters, and, where relevant, the setting or period. A comparison between Islamic and conventional banking is different from a study limited to Islamic banks; profitability is different from financial stability; and customer perception calls for different evidence from risk management.
After selecting a broad area, the student should gradually narrow it down.
For example, if the student selects the banking sector, the next step is to decide:
- whether the study will focus only on Islamic banking,
- whether it will be a comparative study between Islamic and conventional banks,
- or whether it will focus on a specific dimension such as:
- profitability,
- efficiency,
- financial stability,
- governance,
- Shariah compliance,
- customer perception,
- digital banking,
- risk management, etc.
A broad topic is difficult to handle. Therefore, narrowing the area is essential for producing a feasible and meaningful proposal.
These choices should be made together. For instance, “Islamic banking” alone is a field, while the stability of Islamic banks in Pakistan during a defined period is a more workable direction. The student should ask whether the proposed scope can be explained in a few precise sentences, whether the question is significant, and whether enough literature and evidence exist to investigate it. A narrower question often permits deeper analysis and clearer objectives.
3. Decide the nature and direction of the research
The question determines the approach. Some inquiries centre on the Shariah evaluation of a contract or practice; others seek to describe, explain, or test observable behaviour and financial outcomes. The student should identify the sources of authority and evidence before designing a method. A juristic argument needs a careful treatment of the relevant rulings and opinions; an empirical argument needs a credible plan for collecting or obtaining data.
Once the area is narrowed down, the student should decide the nature and direction of the study. Broadly, the research may be of the following types:
- Juristic / Fiqhi research
- discussion of Shariah rulings,
- analysis of classical and contemporary juristic opinions,
- examination of Shariah issues in Islamic financial contracts and products.
- Empirical research
- Primary data-based research
- questionnaires,
- surveys,
- interviews,
- case studies.
- Secondary data-based research
- annual reports,
- financial statements,
- databases,
- published institutional reports,
- panel data or time-series data.
- Primary data-based research
At this stage, students must clearly decide whether they are interested in:
- Fiqhi / conceptual research, or
- data-based empirical research.
For primary-data research, consider who must be surveyed or interviewed, how they can be reached, and whether their answers can address the question. For secondary-data research, check the coverage, consistency, and accessibility of annual reports, statements, institutional datasets, and time-series or panel data. For fiqhi research, specify the contracts or products, the juristic questions, and the classical and contemporary sources to be compared. A study can combine approaches where justified, but the proposal must explain how each part contributes to the same research problem.
4. Download and study at least 10 quality research papers
A student should not settle on the final topic before understanding what scholars have already asked and answered. Begin with at least ten closely relevant, quality papers from well-reputed journals, including appropriate impact-factor journals. Selection should turn on relevance and scholarly quality, not merely the prestige of a publisher or the number of search results.
Before finalizing the topic, each student should download and carefully read at least 10 research papers published in well-reputed and impact-factor journals.
Students may use sources such as:
- Emerald
- JSTOR
- Brill
- Springer
- Scopus-indexed journals
- Web of Science journals
- ScienceDirect
- Wiley
- Taylor & Francis
These papers should not be collected merely for citation purposes. Rather, they should be studied carefully to understand the structure, style, and logic of academic research writing.
Use the named platforms and indexes to locate potentially relevant work, then assess each journal and article on its own merits. The platforms contain different journals and kinds of material; an indexed paper is not automatically the best source for every question. Read the complete articles, especially their research problem, literature review, method, results or argument, and limitations. Make a short reading record of the question, setting, data or sources, principal findings, and unanswered issue in each study. This record will later support the literature review and help prevent an unsupported claim of novelty.
5. Learn how the author builds the research
Reading is most productive when the student studies the reasoning and architecture of each paper rather than simply collecting quotations. Follow the argument from its opening problem to its final conclusion. In an empirical article, pay attention to the link between objectives, variables, model, tables, and interpretation. In a juristic article, pay attention to the sources, principles, alternative opinions, and application to the contract or product under discussion.
While reviewing the 10 research papers, students must carefully observe how a research article is constructed from beginning to end. In particular, they should focus on the following aspects:
- How the author introduces the topic
- How does the author open the study?
- How is the issue made important and relevant?
- How the author builds the case
- How does the author explain the background of the problem?
- How does the author justify the need for the study?
- How the research objectives are developed
- How are the objectives written?
- Are they clear, specific, and linked with the problem?
- How the literature review is organized
- How are previous studies discussed?
- How does the author connect earlier findings with the present study?
- How is the research gap identified?
- How the methodology section is written
- How does the author explain research design, data sources, sample, variables, and methods?
- How clearly does the author justify the selected method?
- How the empirical model is developed
- How are dependent, independent, moderating, or control variables introduced?
- How is the model specified and explained?
- How the results are presented
- How are tables interpreted?
- How are findings discussed?
- How does the author connect results with objectives and previous literature?
- How the conclusion is written
- How are the main findings summarized?
- How are implications and recommendations presented?
This exercise is extremely beneficial because it trains the student not only to read research, but also to learn the art of writing research.
These questions are a practical reading method. As you work through each article, note the specific passage where the author introduces the problem, justifies its importance, identifies the gap, and explains the method. Ask whether the findings truly answer the stated objectives and whether the conclusion is supported by the evidence. When several papers are read in this way, patterns become visible: what has been well established, where scholars disagree, and which methods are suitable for your own study.
The empirical-model questions in the list apply when the proposed study uses an empirical design. A fiqhi or conceptual proposal may instead organise its analysis around juristic sources, contract structures, and competing interpretations. In either case, the lesson is the same: every major section of the proposal should serve a clear purpose and connect logically with the research question.
6. Identify and justify the research gap
After reading the literature, move from “this topic interests me” to “this is the precise issue the literature has not adequately resolved.” A gap may arise from context, comparison, evidence, period, institutional coverage, theory, or method. The claim should be based on what the relevant studies actually contain, not on an assumption that nobody has studied the subject.
After reading the literature, the student should identify a clear and genuine research gap.
A gap may be found in different forms, for example:
- the topic has been studied internationally but not in Pakistan,
- the issue has been examined in conventional finance but not in Islamic finance,
- juristic discussion exists, but empirical evidence is lacking,
- previous studies used old data and recent evidence is missing,
- Islamic banks have been studied, but takaful or other NBFIs remain underexplored.
The proposal must clearly demonstrate that the study addresses a meaningful gap rather than repeating existing work.
For example, an international finding may need careful examination in Pakistan because institutions, regulation, or customer behaviour differ. An issue examined in conventional finance may require a distinct analysis under Islamic contracts and governance. Newer data may matter when the market or regulatory environment has changed. The student should explain both what is missing and why addressing it would advance understanding or practice. A change of country, sample, or year is useful only when it supports a meaningful research question.
7. Formulate a focused research title
The title should emerge from the question and the reading rather than direct them. By this point the student should know the central issue, the proposed setting, the kind of evidence or juristic analysis required, and the intended contribution. A working title can then communicate the study accurately without claiming more than the project can deliver.
Only after completing the above steps should the student develop a research title. A good title should be:
- clear,
- focused,
- academically sound,
- feasible,
- and aligned with the literature and available data.
Test the proposed wording against the planned objectives and method. If the title promises a causal explanation, can the design support that claim? If it names a particular country, institution, or product, does the research actually cover it? Avoid a title so broad that it could describe an entire discipline, or so crowded that it becomes difficult to read. A good working title can be refined after the proposal is discussed with a supervisor; its role is to represent the research faithfully.
Three examples of topic development
The following illustrations retain the progression from broad area to narrow area, nature of study, and possible title. They are examples of how to frame a direction; each would still require a literature review, a justified gap, and a feasible method before becoming a complete proposal.
Example 1: Empirical comparative study
- Broad area: Banking sector
- Narrow area: Islamic and conventional banks
- Nature of study: Empirical
- Focus: financial stability
- Possible title: “Comparative Analysis of Financial Stability in Islamic and Conventional Banks in Pakistan”
Here the broad banking field is narrowed to a comparison of Islamic and conventional banks, and the dimension of interest is financial stability. The eventual proposal would need to define the measure of stability, the sample and period, and the reason the comparison adds to earlier research.
Example 2: Fiqhi or juristic study
- Broad area: Islamic banking
- Narrow area: Shariah issues in Islamic financial products
- Nature of study: Juristic
- Possible title: “A Juristic Analysis of Tawarruq-Based Financing in Contemporary Islamic Banking”
This example moves from Islamic banking to a specific product-related Shariah question. A strong proposal would identify the relevant form of tawarruq, the juristic issues to be examined, the primary and contemporary sources, and the scope of the analysis.
Example 3: Research on a non-bank financial institution
- Broad area: Non-banking financial institutions
- Narrow area: Takaful
- Nature of study: Empirical
- Possible title: “Determinants of Customer Adoption of Family Takaful in Pakistan”
The takaful example specifies an institution and an empirical issue: customer adoption of family takaful. The proposal would need to identify the target customers, possible determinants, data-collection plan, and research gap in the relevant setting.
Important advice for students
Students should not select a topic merely because it sounds attractive. A research topic should be chosen on the basis of:
- academic relevance,
- clarity of scope,
- availability of literature,
- availability of data,
- feasibility of research,
- and the presence of a research gap.
A weak proposal starts with a vague title. A strong proposal starts with careful reading, focused thinking, and systematic planning.
After choosing the direction, translate it into a concise problem statement, research objectives and questions, a literature-based justification of the gap, and a method that can answer those questions. State the proposed sources or data, the scope of the study, and the likely contribution. Check each element against the others: an objective must have a corresponding question, and the method must be capable of addressing it.
Bring your reading notes and a provisional outline to discussion with your supervisor. Be prepared to revise the scope or title when the literature, juristic sources, or available data demand it. The value of the proposal lies in a coherent, feasible plan for inquiry, supported by careful reading and transparent reasoning.
A final principle
Let the question lead the proposal
A strong proposal grows from academic relevance, a manageable scope, suitable evidence, and a genuine research gap. Read carefully, think critically, and plan systematically before settling on the final wording of the title.
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Explore research areas and thesis topics
Browse areas of interest and potential topics in Islamic economics and finance to help shape your MS or PhD proposal.
