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Demographic Profiling of Ar-Rahnu Institution Acceptance

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Prolonged economic problems during the Covid-19 pandemic have opened the public’s eyes to the importance of Ar-Rahnu. It went viral on social media that after implementing the Movement Control Order (MCO), people were seen flocking to conventional pawnshops and Ar-Rahnu. This action is done to continue their everyday life activities. Among the available initiatives is pawning the jewellery. The Islamic mortgage system, known as Ar-Rahnu, has also become an economic stimulant that affects the social and economic stability of the community. Ar-Rahnu in Malaysia also has positive catalysts in developing financial and non-financial institutions to offer this service. Therefore, this study examines demographic factors and the post-impact of Covid-19 through a descriptive analysis of the use of Ar-Rahnu. The research data was collected through a questionnaire survey involving 150 respondents. The respondents involved are those who have used Ar-Rahnu services around northern Malaysia. The results of this study indicated that the number of respondents who used Ar-Rahnu services during the pandemic was higher than the ones who did not use Ar-Rahnu services during the pandemic. Limitations of the study and future research recommendations are also discussed at the end of this study.

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