Methodologies and Smart Techniques Recommended in Analyzing Maqasid Al-Shari'Ah for Islamic Economics and Finance

Abstract

Islamic economics aims to realize human welfare by allocating and distributing resources according to the objectives of sharia. It means that the objectives of Islamic finance realms, both commercial and social, should not deviate from the goals of Shari’ah to achieve benefit (Maqasid al-Shari’ah). To ensure that Islamic financial institutions are in accordance with the Maqasid al-Shari’ah, the performance measurement tools need to be adjusted to its aspects. This chapter will elaborate on Maqasid al-Shari’ah methodologies used in the Islamic finance industry. According to the analysis, Maqasid al-Shari’ah-based measurement is still not spread evenly in all sectors. The most developed sector that employs Maqasid al-Shari’ah as its basis for performance measurement is the Islamic banking industry. Meanwhile, the application of Maqasid al-Shari’ah measurement in other sectors is still in the exploratory stage. Hence, further research in Maqasid al-Shari’ah tools to appropriately assess Islamic values should be conducted. In addition, the measurement should not only focus on the macro side of Maqasid al-Shari’ah but also on the micro section to make sure the whole objective of Shari’ah is achieved.