The Fiqhī, Maqāṣidī, and Economic Dimensions of Shariah Decision-Making (SDM) in the Islamic Financial Industry: Complementarity or Contradictory?

This study examines AAOIFI’s exposure draft on the “Shariah Decision-Making Process,” focusing on how fiqh (jurisprudence), maqāṣid al-Shariah (objectives of Islamic law), and economics are integrated within governance structures in the Islamic financial industry.

The paper highlights that Islamic finance is inherently interdisciplinary, combining Shariah sciences such as uṣūl al-fiqh and maqāṣid with modern fields like economics, finance, accounting, philosophy, and logic. However, these disciplines often remain fragmented rather than systematically integrated in practice.

Using a qualitative case study approach, the research analyzes AAOIFI’s draft and finds that Shariah decision-making is increasingly shifting from purely jurisprudential rulings toward a broader governance framework that includes maqāṣid and economic considerations.

The study concludes that this integrated approach represents a significant paradigm shift in Islamic finance, where Shariah governance is becoming more structured, interdisciplinary, and aligned with modern financial complexity.