Maqasid al-Shari’ah and Islamic Financial Products: A Framework for Assessment

Ahmed, Habib

Maqasid al-Shari’ah and Islamic Financial Products: A Framework for Assessment

Ahmed, Habib

Authors

Professor Habib Ahmed habib.ahmed@durham.ac.uk
Professor

Abstract

Contemporary practice of Islamic finance has been criticised for not fulfilling the maqasid. The debate surrounding the practice of Islamic finance has led to the distinction between Shari'ah-compliant and Shari'ah-based Islamic products. However, there are no clear definitions as to what these terms entail. Whereas some scholars assert that Shari'ah-compliant and Shari'ah-based products are the same, there is a need to distinguish between different nuances of Islamic finance in terms of legal and social Shari'ah requirements. In this research note (note), an objective way of classifying categories of Islamic financial products is suggested. In particular, the legal and social Shari'ah requirements implied in the maqasid are used to classify Islamic financial products as Shari'ah-based, Shari'ah-compliant and pseudo-Islamic. The note also identifies the role of different stakeholders in choosing the types of products.

Citation

Ahmed, H. (2011). Maqasid al-Shari’ah and Islamic Financial Products: A Framework for Assessment. ISRA International Journal of Islamic Finance, 3(1), 149-160

Journal Article Type	Article
Publication Date	Jun 1, 2011
Deposit Date	Aug 8, 2011
Publicly Available Date	Aug 8, 2012
Journal	ISRA international journal of Islamic finance
Print ISSN	2289-4365
Publisher	Emerald
Peer Reviewed	Peer Reviewed
Volume	3
Issue	1
Pages	149-160
Public URL	https://durham-repository.worktribe.com/output/1505646
Publisher URL	http://www.isra.my/publications/journal-english/current-issues/volume-3-june-2011.html