Common conceptual flaws in realizing maqasid al-Sharıʿah vis-a-vis Islamic finance

Purpose – This paper aims to scrutinize the misconceptions about maqasid al-Sharıʿah (objectives of Islamic law) that complicate its actualization, particularly in Islamic finance.

Design/methodology/approach – This study adopts a qualitative inductive method to identify the flaws in understanding maqasid al-Sharıʿah vis-a-vis Islamic finance. It uses the views of classical and modern maqasid scholars to critically examine the flaws.

Findings – This study concludes that the five objectives of the Sharıʿah constitute the framework of maslahah (well-being). The levels of maslahah ― namely daruriyyat (essentials), hajiyyat (needs)and tahsıniyyat (embellishments) ― are the categories of the means to ends. The demand for financial products falls under the hajiyyat and tahsıniyyat categories, not daruriyyat. The maqasid (objectives) are derived from ahkam (provisions) being verified by the parameters, while ahkam are guided by maqasid.

Research limitations/implications – This study recommends further research to theorize the concepts of daruriyyat, hajiyyat, tahsıniyyat and mukammilat (complements); to harmonize the maqasid with their essential elements and to formulate a conceptual framework for actualizing maqasid al-Sharıʿah in Islamic finance.

Practical implications –This paper will improve perceptions and bridge gaps between the understanding of maqasid theory and existing practices. It suggests that instead of daruriyy at, Islamic financial institutions(IFIs) should refer to hajiyyat and tahsıniyyat.

Originality/value –This paper identifies and clarifies the misconceptions about maqasid al-Sharıʿah vis-a-vis Islamic finance in the existing literature. The findings align with the views of leading maqasid scholars in understanding the idea.