Currently, Islamic finance is no longer realm in the Muslim world but it is an international phenomenon with international interest. It has also demonstrated that it can match the offerings of conventional banks. In fact, conventional banks presently have emerge as partners to many Islamic institution worldwide.

Fundamentals & Principles of Islamic Finance

IFIs/IBs/Markets must ensure all their operation & business transactions are Shariah Compliant.

The principles of “halal ” (permissible) and “haram” (prohibited) provide as a moral filter for actions taken by an individual, organization & society.

Prohibiting usury (riba’), excessive ambiguity (gharar) and gambling (maysir) & promotes maslahah by protecting the interest and benefits of all parties in the market.

Why Shariah Compliance?

Because…

It is the foundation & fundamental basis and requirement for Islamic Financial System.
It distinguishes Islamic financial system from Conventional financial system.
It ensures acceptance, validity and enforceability of banking operation contracts according to Shariah principles and Shariah point of view.
It creates confidence to the general public and the financial markets on the credibility of Islamic banking & finance operation.

The importance of Maqasid Al-Shariah:

It is the ultimate goal of the Islamic financial system
It should be taken into consideration in structuring any financial product
To promote public benefit and to prevent social evils or corruption.
It is the reason behind deriving new rulings from the Shariah, in order to meet society’s changing needs and solve contemporary problems related to business endeavors

Literatures defining Maqasid Al-Shariah:

According to Ibn Ashur, Maqasid are used to preserve the social order of the community and to ensu