The Challenge of Realizing Maqasid Shariah in Islamic Finance

By: Senator Dato’ Dr. Asyraf Wajdi Bin Dato’ Hj. Dusuki Yang Dipertua

YAYASAN DAKWAH ISLAMIAH MALAYSIA (YADIM)

Maqasid Shari’ah

• It outlines the objectives and wisdom (hikmah) as prescribed by Shariah (Allah & His Prophet s.a.w.) in all its rulings to protect and preserve the benefits and interests (maslahah) of society.

• Muslim scholars agreed that the ultimate objective of Maqasid al-Shari’ah is to serve the interests (jalb al-masalih ( جلب المصالح ) of all human beings and to save them from harm (daf‘ al-mafasid: دفع المفاسد).

Maqasid al shariah Definition A. Al-Ghazali: The very objective of the Sharī‘ah is to promote the well-being of the people, which lies in safeguarding their faith (dīn), their lives (nafs), their intellect (‘aql), their posterity (nasl), and their wealth (māl). Whatever ensures the safeguarding of these five serves public interest and is desirable, and whatever hurts them is against public interest and its removal is desirable

B. Ibn Ashur defined Maqasid al-Shariah base on two aspects: •1: The general aspect which is the purpose and wisdom behind the enactment of all or most of the shari’ah ruling. •This definition is more related to the general objective of Shariah. •2: The second definition of Maqasid al-Shariah is very specific. It is related to specific objective to those objectives that are designed to achieve specific benefits to people in their daily activities, such as Islamic finance. C. Alal al-Fasi defined Maqasid Shariah as the end sought behind the enactment of each of the ruling of Shariah and the secret involved. •This definition covers the public Maqasid (ama) and the specific/private Maqasid (khasa).

فكل ما يتضمن حفظ ، مقصود الشرع من الخلق خمسة، وهو أن يحفظ عليهم دينهم ونفسهم وعقلهم ونسلهم ومالهم

هذه األصول الخمس فهو مصلحة، وكل ما يفوت هذه األصول فهو مفسدة، ودفعها مصلحة

Maqasid as-Shariah in Islamic Finance

Justice Alleviate Hardship Eliminate Prejudice

Preservation of Wealth حفظ المال

Macro Maqasid

Micro Maqasid

Assessment on the transactional instrument and mechanism

Assessment on the overall impact and contribution

Ar-Rawaj (Distribution of Wealth) كي ال يكون دولة بين األغنياء منكم

الوسا ئل المقاصدApproach in Realization of the

Objectives of Shariah

Islamic Contract

Gharar

Riba Al-Zulm

(Qimar)

Shariah-Compliant Operation

1st Level of Compliant

2nd Level of

Compliant

Uqud Musamma (Nominate Contracts)

Uqud Ghair Musamma (Non-Nominate Contracts

Investment Activities

Rectifying & Purifying

Conversion Process

Hedging Instruments

Monitoring & Supervision

Social Responsibility

Maqasid al-Shariah (The Objectives of Shariah)

The Framework of Islamic Finance

EN

DS

/ ية

غا ال

M

EAN

S/ة

سيللو

ا