Idealism versus realism: Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah
Shari’ah compliance is the main pushing factor to revitalize the concept of Islamic teaching in the commercial world by emerging Islamic finance industries. This unique compliance is the fundamental distinguishing factor between Islamic and conventional finance. The vision of Islamic finance is to...
| Main Authors: | , , |
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| Format: | Proceeding Paper |
| Language: | English English |
| Published: |
International Business Information Management Association (IBIMA)
2018
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/72793/ http://irep.iium.edu.my/72793/13/72793%20Idealism%20versus%20realism.pdf http://irep.iium.edu.my/72793/2/72793%20Idealism%20Versus%20Realism%20SCOPUS.pdf |
| _version_ | 1848787681325088768 |
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| author | Hassan, Rusni Salman, Syed Ahmad Yusoff, Adnan |
| author_facet | Hassan, Rusni Salman, Syed Ahmad Yusoff, Adnan |
| author_sort | Hassan, Rusni |
| building | IIUM Repository |
| collection | Online Access |
| description | Shari’ah compliance is the main pushing factor to revitalize the concept of Islamic teaching in the commercial
world by emerging Islamic finance industries. This unique compliance is the fundamental distinguishing factor
between Islamic and conventional finance. The vision of Islamic finance is to avoid involving in Shari’ah
prohibited elements such as interest, uncertainty, gambling and prohibited investments which are currently
practiced by the conventional finance industry. These elements are prohibited clearly in the primary sources
of Shari’ah, i.e. the Quran and Sunnah. Considering the prohibitions of conventional finance from Islamic
perspective, Shari’ah scholars have come out with an alternative solution by introducing Islamic finance.
Consequently, there is a tremendous growth of Islamic finance proven by wide-spread subscription of the
Islamic finance products and services in both Muslim and non-Muslim countries. However, despite its growth,
Islamic finance is not totally free from criticisms that its practice does not meet the ultimate objective of its
establishment, i.e. realization of benefit to mankind in this world and Hereafter. In order to achieve this
objectives of Shari’ah (maqasid al-Shariah) Islamic financial institutions must aim to provide socioeconomically fair products and services and avoid all the items prohibited by the Shari’ah. Ideally, it should
be taking care of public interest and social justice while making profits for the shareholders and investors. If
Islamic finance complies with Maqasid Al- Shari’ah, there should not be any undesirable issues against the
practices of Islamic finance. However, due to the existence of unfavorable issues, it is timely to revisit the historical practices of Islamic finance so that these past events can be used as lessons for the betterment of
Islamic finance in the future. Thus, the main objective of this proposed research is to examine to what extent
the Islamic finance sector meets Maqasid Al- Shari’ah. |
| first_indexed | 2025-11-14T17:28:48Z |
| format | Proceeding Paper |
| id | iium-72793 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T17:28:48Z |
| publishDate | 2018 |
| publisher | International Business Information Management Association (IBIMA) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-727932019-07-09T09:01:16Z http://irep.iium.edu.my/72793/ Idealism versus realism: Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah Hassan, Rusni Salman, Syed Ahmad Yusoff, Adnan HG Finance Shari’ah compliance is the main pushing factor to revitalize the concept of Islamic teaching in the commercial world by emerging Islamic finance industries. This unique compliance is the fundamental distinguishing factor between Islamic and conventional finance. The vision of Islamic finance is to avoid involving in Shari’ah prohibited elements such as interest, uncertainty, gambling and prohibited investments which are currently practiced by the conventional finance industry. These elements are prohibited clearly in the primary sources of Shari’ah, i.e. the Quran and Sunnah. Considering the prohibitions of conventional finance from Islamic perspective, Shari’ah scholars have come out with an alternative solution by introducing Islamic finance. Consequently, there is a tremendous growth of Islamic finance proven by wide-spread subscription of the Islamic finance products and services in both Muslim and non-Muslim countries. However, despite its growth, Islamic finance is not totally free from criticisms that its practice does not meet the ultimate objective of its establishment, i.e. realization of benefit to mankind in this world and Hereafter. In order to achieve this objectives of Shari’ah (maqasid al-Shariah) Islamic financial institutions must aim to provide socioeconomically fair products and services and avoid all the items prohibited by the Shari’ah. Ideally, it should be taking care of public interest and social justice while making profits for the shareholders and investors. If Islamic finance complies with Maqasid Al- Shari’ah, there should not be any undesirable issues against the practices of Islamic finance. However, due to the existence of unfavorable issues, it is timely to revisit the historical practices of Islamic finance so that these past events can be used as lessons for the betterment of Islamic finance in the future. Thus, the main objective of this proposed research is to examine to what extent the Islamic finance sector meets Maqasid Al- Shari’ah. International Business Information Management Association (IBIMA) 2018 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/72793/13/72793%20Idealism%20versus%20realism.pdf application/pdf en http://irep.iium.edu.my/72793/2/72793%20Idealism%20Versus%20Realism%20SCOPUS.pdf Hassan, Rusni and Salman, Syed Ahmad and Yusoff, Adnan (2018) Idealism versus realism: Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah. In: 32nd International Business Information Management Association Conference, IBIMA 2018, 15th-16th November 2018, Seville, Spain. https://ibima.org/accepted-paper/idealism-versus-realism-performance-of-islamic-financial-institutions-in-the-light-of-maqasid-al-shariah/ |
| spellingShingle | HG Finance Hassan, Rusni Salman, Syed Ahmad Yusoff, Adnan Idealism versus realism: Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah |
| title | Idealism versus realism: Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah |
| title_full | Idealism versus realism: Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah |
| title_fullStr | Idealism versus realism: Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah |
| title_full_unstemmed | Idealism versus realism: Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah |
| title_short | Idealism versus realism: Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah |
| title_sort | idealism versus realism: performance of islamic financial institutions in the light of maqasid-al shari'ah |
| topic | HG Finance |
| url | http://irep.iium.edu.my/72793/ http://irep.iium.edu.my/72793/ http://irep.iium.edu.my/72793/13/72793%20Idealism%20versus%20realism.pdf http://irep.iium.edu.my/72793/2/72793%20Idealism%20Versus%20Realism%20SCOPUS.pdf |