IRP 32 – The Objective Of The Shari’ah In Islamic Finance: Identifying The Ends (Maqasid) And The Means (Wasa’il)

Islamic finance attempts to rearrange modern financial practices in line with Shari’ah principles and requirements. The industry has grown considerably over the last three decades and has a global reach. As it rapidly develops in Muslim countries, it is also penetrating the Western world. 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. Recently, interest has been growing in the industry regarding the objectives (maqasid) of the Shari’ah. This interest has been driven by the perception that satisfying the minimum legal requirements of Shari’ah compliance may not be sufficient. The paper attempts to elaborate the concept of maqasid al-Shari’ah and its application in the financial sphere. This is done by investigating the ends (maqasid) that ought to be realized and the means (wasa’il) employed to realize those goals.

Keyword: maqasid al-Shariah, maslahah, Islamic finance, wealth, bank