Publication:
Maqasid al-Shari'ah and the foundational requirements in developing Islamic banking and finance
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Date
2012
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Abstract
Islamic finance attempts to rearrange the modern financial practices to be in line with Shari'ah principles and requirements. The industry has grown considerably over the last three decades and has a global reach. We contend that this trend is being driven not only by operational compliance with the requirements of Islamic law but also because of the objectives and values it promotes. Islamic banking and finance (IBF) was intended to bring an Islamic vision of the economy to the financial sphere in an effort to realize human wellbeing (maslahah) and a just and fair order of society. Financial practices are to be arranged to meet those objectives. Adherence to maqasid al-Shari'ah as the grand objective of Islam is necessary for developing genuine and indisputable �Islamic� finance. The �Shari'ah-compliant� title carries the expectation of a financial system and practices that are truly based on all the tenets of the Shari'ah, namely the 'aqidah, Islamic legal principles (al-ahkam al-shar'iyyah) and ethics (akhlaq), and that serve the noble goals prescribed by Islam (maqasid al-Shari'ah). However, recently there have been growing debates about the extent to which the objectives of the Shari'ah are being realized in the Islamic financial industry. It is argued by some that satisfying the minimum legal requirement of Shari'ash compliance is not sufficient.
Keywords
Islamic finance , Maqasid Shari'ah , Islamic financial system
Citation
Laldin, Mohamad Akram and Furqani, Hafas. (2012). Maqasid al-Shari'ah and the foundational requirements in developing Islamic banking and finance. ISRA International Journal of Islamic Finance, 4 (1), pp. 183-189.
Publisher
ISRA