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...

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Main Authors:	Hassan, Rusni, Salman, Syed Ahmad, Yusoff, Adnan
Format:	Conference or Workshop Item
Language:	English English
Published:	International Business Information Management Association (IBIMA) 2018
Subjects:	HG Finance
Online Access:	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

id	iium-72793
recordtype	eprints
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 Conference or Workshop Item 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/
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG Finance
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
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.
format	Conference or Workshop Item
author	Hassan, Rusni Salman, Syed Ahmad Yusoff, Adnan
author_facet	Hassan, Rusni Salman, Syed Ahmad Yusoff, Adnan
author_sort	Hassan, Rusni
title	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_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_sort	idealism versus realism: performance of islamic financial institutions in the light of maqasid-al shari'ah
publisher	International Business Information Management Association (IBIMA)
publishDate	2018
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
first_indexed	2023-09-18T21:43:11Z
last_indexed	2023-09-18T21:43:11Z
_version_	1777413276831842304

Idealism versus realism: Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah

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