Maqasid al-Shariah Research Articles

Enhancing Community Health Sustainability Through Use of Maqasid Al-Shariah Theory

Enhancing Community Health Sustainability Through Use of Maqasid Al-Shariah Theory

The Interaction of Maqasid Al-Shariah in the Relationship Between ESG and Firm Financial Performance

The Interaction of Maqasid Al-Shariah in the Relationship Between ESG and Firm Financial Performance

An Overview of Islamic banking in Pakistan: Modern Economic Perspectives

As a result of this study, we want to better understand Pakistan's economic Islamization process and its influence on people's material well-being in light of the economic provisions of the Qur'an and Sunnah (PBUH), in addition to the World Bank's framework for material well-being. According to this study, the Islamic legal notion of daruriyyat (necessities), as articulated in Maqasid al-Shariah, is identical to the English phrase "material well-being." Since the 1980s, economic Islamization ideology has been marketed as the sole answer to all economic problems generated by interest-based capitalism, and the purpose of this study is to investigate how this has happened. The fact that more than 60% of Pakistanis do not have access to the material well-being envisioned by the Islamic Legal System and the World Bank, after over three decades of economic Islamization, is concerning. There is a claim that Islamic economics and finance have been unable to alleviate Pakistan's economic woes in recent years. A study conducted by the Islamic Center for Social Justice and the World Bank found that it was unable to aid those who were deprived of reaching material well-being. Finally, a number of proposals are made in order to aid Pakistan in improving its current Islamic economic and financial circumstances.

A Proposed Model of Halal Insurance Policy Scheme

It is a well-known fact that Muslim scholars have declared commercial insurance in modern times religiously prohibited (Harm), mainly for the reason that it contains riba (insurance), gharar (misleading), and maysir (gambling or speculation). The Islamic Figh Academy declared the same because it causes a major element of risk, which voids the insurance contract; therefore, it is prohibited. Takaful insurance, a Shariah-compliant insurance, was introduced to replace commercial insurance by eliminating the prohibited elements in commercial insurance. While successfully introduced, Takaful still did not fulfill Shariah's purpose in preventing the injustice practiced, including profiting out of the agony of others. The author introduces a new Islamic insurance (FAWZ) to eliminate the elements of prohibiting commercial insurance while still fulfilling the purpose of Shariah (Maqasid al-Shariah). FAWZ-Insurance is based on a partnership model between the two parties, the insured and the insurer, a model or a transaction called for by Shariah as manifested in Surat Anissa, Verse 29, declaring that Tijara (commerce) is the only permissible transaction amongst believers, whereas Musharakha (partnership) is a form of commerce that is used.

Perbandingan Fatwa Perkahwinan Beza Agama Antara Muzakarah Majlis Kebangsaan Bagi Hal Ehwal Agama Islam Malaysia Dengan Majlis Ulama Indonesia Dari Perspektif Maqasid Shari’ah (Comparison of Interfaith Marriage Fatwas Between the National Council for Islamic Religious Affairs Malaysia and the Indonesian Council of Ulema from the Perspective of Maqasid Shariah)

Interfaith marriage is not a new issue among Muslims. Yet, it has not been fully addressed due to differences in scholarly views. As a result of intermingling of Muslims with non-Muslims, interfaith marriages are difficult to avoid, which if not controlled, may lead to such marriages taking place against the true teachings of Islam. This study was a comparative study of the following three contexts: the background of interfaith marriages in Malaysia and Indonesia; haram and conditional fatwas between the fatwas of the National Council for Islamic Affairs of Malaysia and the Indonesian Ulema Council from the perspective of maqasid shariah and finally, the influence of both fatwas on the practice of interfaith marriages in Malaysia and Indonesia. Data collection was done through documentation and comparative methods, while data analysis was through descriptive qualitative methods using maqasid shariah as the main yardstick. The results of this study showed that fatwa of the Indonesian Ulema Council is more in conformity with maqasid al-shariah from the point of view of preserving religion and lineage compared to the fatwa of the National Council of Malaysia, which allows conditional interfaith marriages, as in the kitabiah descendants of Prophet Yaqub AS. Hence, from the implementation outlook, the fatwa of the National Council of Malaysia is more effective. The acts and laws regulating interfaith marriages in Malaysia are based on specific legal provisions while there are no rulings from the Indonesian Ulema Council. It is hoped that with the fatwa on interfaith marriage, lineage and Islam under al-kulliyyat al-khams for generations of Muslims in Malaysia and Indonesia, will be preserved and the strength of Muslims in various fields will be revitalised.

Construction of Zakat Multidimensional Poverty Index (ZMPI) in Malaysia based on Maqasid al-Shariah

Construction of Zakat Multidimensional Poverty Index (ZMPI) in Malaysia based on Maqasid al-Shariah

Developing Green Waqf Model for Environmental Issues

The discussion on strengthening environmental issues for sustainable development is summarized in SDGs goal fifteen. On the other hand, waqf is an Islamic social fund instrument that has a sustainable nature and has relevance to SDGs, so it has the potential to be developed in its role in maintaining a more sustainable environment. This research seeks to look at waqf models that are relevant to the SDGs by prioritizing waqf models that can be implemented in Indonesia in line with SDGs goal 15 from the Maqasid al-Shariah perspective. Furthermore, this research proposes a model for realizing the 15th SDG goal, namely the preservation of terrestrial ecosystems based on waqf through a modified Green Waqf scheme

Editorial

Editorial

The Effect of Sustainability Certification Towards Firms’ Profitability: The Case of Malaysian Shariah Compliant Palm Oil Companies

In Islam, the preservation of environment is one of the fundamental in maqasid al-shariah (objectives of shariah). As world’s leading hub of Islamic finance and the second largest palm oil producer, a positive respond on environment preservation had been given by Malaysia towards sustainable palm oil industry. Moreover, almost 70% of Malaysian palm oil companies are complied with shariah. It is necessary to the shariah compliant companies to put into consideration regarding environment sustainability in their main objective of the firms. Therefore, Malaysia urges these companies to adopts Roundtable on Sustainable Palm Oil (RSPO) and Malaysian Sustainable Palm Oil (MSPO) certifications which ensure sustainable operation and production of certified palm oil. However, these companies have concern on profitability over sustainability due to additional cost to subscribe the certification. Therefore, this study is conducted to identify the effect of the sustainability certification on the profitability of 29 shariah-compliant palm oil companies listed in Bursa Malaysia from 2013 to 2017. It is important to provide evidence on certified companies’ profitability to encourage more adoption of sustainability certification, promote sustainable practices and increase production certified palm oil among shariah compliant companies. The results of generalized least squares (GLS) regression show that certified companies enjoy profits that are 2.3% higher than those of non-certified companies. These findings support the sustainability policy in palm oil industry by the Malaysian through MSPO certification which became mandatory in late 2019.

EXPLORATION OF MAQASID AL-SHARIAH CONCEPTS IN THE DEVELOPMENT OF ISLAMIC ECONOMIC POLICIES

This study explores the concept of maqasid al-shariah in the context of Islamic economic policy development, focusing on understandīng the concept, implementation in policy, and evaluation of the impact on society and welfare. The research method used is a literature study with a comprehensive analysis of the literature, which includes sources from various related disciplines. The results reveal that maqasid al-shariah is a moral guide in Islamic economics and the foundation for a just, sustainable, and ethical economy. Implementing this concept involves the creation of solid Islamic financial institutions, regulation by Islamic law, and protection of moral values in business. A careful evaluation of the impact highlights the critical role of Islamic economics in achieving the goals of the maintenance of religion, property, soul, intellect, and heredity. In an ever-changing era, this study shows that maqasid al-shariah is a highly relevant compass for guidīng Islamic economic policies that align with deep Islamic values, bridging theory and practice to create a more just and ethical society.

PERFORMANCE ASSESSMENT OF ISLAMIC BANKS IN THE LIGHT OF MAQASID AL-SHARIAH: A GLOBAL EVIDENCE

As an “Islamic” entity, Islamic banks are expected to fulfill the purposes of Islamic law. This study aims to assess the performance of Islamic banks beyond traditional yardsticks, to emphasize their ethical, social, and environmental role in accordance with the higher goals of Islamic law namely Maqasid al-Shariah. Based on Imam al-Ghazali’s concept of Maqasid al-Shariah, we develop a Maqasid al-Shariah index including the 5 objectives of Shariah (Preservation of Life, Religion, Intellect, Posterity, and Wealth). Sekaran’s operationalization method is used to transform the theoretical concept of Maqasid al-Shariah into measurable indicators. The originality of this study stems from two factors: First, we build on previous research to develop a new Maqasid al-Shariah index with 12 dimensions, 25 elements, and 25 indicators. Second, we provide fresh insight into the Maqasid al-Shariah performance of 10 large and well-established Islamic banks from 2017 to 2021. The results of the 5-year study show that Meezan Bank in Pakistan performed the highest score, while Dubai Islamic Bank received the lowest. Furthermore, when comparing the performance of the sampled Islamic banks across the five objectives, we find that they earned the lowest score in the objective of intellect due to their failure to disclose the required information in their annual reports.

Determinants of effective Shariah compliance auditing in Palestine: a theoretical and conceptual analysis

PurposeThis study aims to conduct a review and analysis of the literature on Shariah audit compliance by examining the difference between internal and external auditors, the scope of internal Shariah audits and the qualification of Shariah auditors.Design/methodology/approachThe current study used content analysis and the descriptive approach to achieve the main objective of the study. To ensure that Islamic Financial Institutions’ (IFIs) practices preserve Shariah principles and values when providing Shariah-compliant products and services, this audit will be used to supervise and monitor the operations of IFIs. The main goal of Shariah compliance auditing is to protect the interests of IFIs stakeholders, including account holders, shareholders, creditors, management and employees, as well as the general public while ensuring that the mechanisms of checks and balances in place are appropriate and tailored to the goals and missions of its establishment following the Maqasid Al-Shariah.FindingsThe findings of this study attempt to contribute to the body of knowledge surrounding Shariah audit compliance by advising IFIs on the value of Shariah compliance auditing in addressing the needs of its stakeholders. As a result, the benefits of Shariah compliance audits will be maximized, and future legislative changes will be implemented to reduce or completely remove the risk of Shariah’s failure to comply.Practical implicationsThis research advises IFIs on the usefulness of Shariah compliance auditing in addressing the demands of its stakeholders to add to the body of knowledge on Shariah audit compliance. Moreover, all parties involved to take action to reduce the gap that will significantly affect stakeholders’ confidence, particularly concerning the Shariah compliance of the IFIs’ products and services on their operations and activities.Originality/valueThe advantages of Shariah compliance audits will thus be maximized, and future regulatory improvements will be made to lessen or eliminate the danger of Shariah noncompliance.

The Impact of Maqasid Al Shariah (Objectives of Islamic Shariah) to Obtain Legal Protection of Humans; A Comparative and Analytical Study of the Qatari Laws

Objective: This study is to raise the question about the extent to which legal protection for human being security is achieved from the perspective of the Qatari Law and to illustrate the impact of Maqasid al-Sharia of human being soul protection in regulating this right as a legislative text in Qatari Law and Constitution. Theoretical framework: The study has reviewed the Holy Quran and the texts of Hadith as primary sources. Whereas, different national and international reports, laws, and acts and predominantly the legal provisions of the Permanent Constitution of Qatar have been referred to as secondary sources for review. Method: The study has adopted analytical and comparative approaches to compare the legal provisions to explore consonances and dissonances. Results and conclusion: The present study concludes that there may be convergences between the Sharia laws and the Qatari laws concerning the protection of human lives and money. The disposition of human organs, only in the greater interests of humans is the mere permissibility in the Qatari law which is congruent to the Sharia laws. Moreover, it has been stipulated that the laws related to the procedures of arriving and living in Qatar and the employees are aligned with the Islamic legal system wherein, it has assured that they are given freedom to have living and work in the country with the social justice system. Originality/value: The study has substantiative its review on the Islamic scholarship as well as the Qatari legal provisions to provide comparative and critical appreciation. This study offers the Islamic versus Qatari perspective regarding the protection of human lives.

Distribution of Zakat during the Pandemic COVID-19 in the State of Perak: An analytical studies from the perspective of Maqasid Al-Shariah

This article aims to analyze the initiative of zakat distribution by Majlis Agama Islam dan 'Adat Melayu Perak (MAIPk) to the Asnaf and the affected communities during the COVID-19 pandemic in Perak in compliance with the Maqasid al-Shariah framework. This study adopts a qualitative study approach by conducting an analytical analysis of documents and interviews with the representatives of MAIPk. The documents were, therefore, critically reviewed by the researchers to achieve the objective of the study. The findings indicate that the MAIPk has effectively taken many initiatives to manage zakat collection and distribution to deal with the COVID-19 crisis. Therefore, the zakat schemes provided by the organization have resulted in adhering to the principle of Maqasid al-Shariah, as mentioned in Islamic law.

Islamic Securities Crowdfunding Based on Indonesia's Islamic and Positive Law Perspective

This paper analyzes Islamic Securities Crowdfunding (SCF) based on Indonesia's Islamic and positive law perspectives. This paper is a descriptive qualitative by using a normative juridical approach that observes the governing or binding law in society with the convergence on Islamic law and regulations of the Indonesian Financial Services Authority (OJK). The findings reveal that the practice of Islamic SCF is allowed by referring to the Qur'an, Hadith, legal maxim, maqasid al-shariah, and syirkah musahamah contract in DSN-MUI Fatwa No.140/DSN-MUI/VIII/2021 issued on August 24, 2021. Furthermore, from the positive law's perspective, Islamic SCF is allowed to operate by referring to POJK No.57/POJK.04/2020, which accommodates to four principal regulations, namely, organizers, crowdfunding services, issuers, and financiers

Islamic Economic Framework for the Exercise of Islamic Financial Activities: its Conformity with Maqasid Shari`ah

ABSTRACT With the establishment of Islamic banks throughout the latter half of the 20th century, Islamic finance became institutionalized. The emergence of new Islamic banks was accompanied by the emergence of Islamic insurance firms and other Islamic financial organizations. The Maqasid al-Shari’ah in financial transactions reveals the overarching goals and significance to which it aspires through decision-making. It is clear from the careful and continuous examination of several Qur'anic verses and the Prophet's (PBUH) Sunnah regarding financial matters that the Shari'ah has adhered to specific objectives in formulating its financial laws and regulations. These objectives include the fair distribution of wealth within society, continual wealth investments, the satisfaction of economic prosperity for all through the satisfaction of basic human needs, the openness of financial transactions to avoid disputes, and the legitimacy of ownership of private and public wealth. The study offers a Maqasid-based development paradigm, which views development from the perspective of extracting benefit and removing harm. This calls for fostering things that make life simpler, more meaningful, and prosperous while preventing all causes of harm, socioeconomic hardship, and underdevelopment. The approach's strength lies in the proper weight it accords to morality, spirituality, and faith as catalysts for prolonged moderate growth and in its emphasis on all-encompassing yet restrained material progress. The study argues for a detailed investigation of the economic growth and the science of Maqasid al-Shari'ah. The qualitative method is applied in this study to evaluate the fundamental concept of Maqasid Al-Shariah from the primary and secondary sources of knowledge in Islam, which shows the model of the economic system to identify the challenges of governing the Islamic banks and Islamic financial activities accordingly. Keywords: Islamic banks, Islamic Insurance, Financial Institutions, Maqasid al-Shari'ah

ISLAMIC DIGITAL BANKING BASED ON MAQASID AL-SHARIAH FOR FINANCIAL INCLUSION

The expansion of information and communication technology (ICT) has confronted the banking and financial industry towards the era of digitalization. This digitalization has brought advantages to the people nowadays to make the banking transaction easier in term of time-saving and easy to access compared to over-the-counter transaction (at the branch), in which the people need to waste their time for waiting their turn to make a simple transaction like withdraw and deposit money and reaching the people who are unbanked in order to them enjoy the banking and financial products and services. In this context, as most of the community in Malaysia are Muslim, the regulator (Bank Negara Malaysia) needs to concern with the value of Shariah and the element of financial inclusion that should be adopted in the development of digital banking. So, this will lead to the development of Islamic digital banking based on Maqasid al-Shariah for financial inclusion that able to cater the current market needs. However, the model of Shariah compliant digital banking is important to be introduced in order to achieve the true spirit of Maqasid al-Shariah for financial inclusion. This article is aimed to develop a framework of Islamic digital banking based on Maqasid al-Shariah for financial inclusion. This research employs a qualitative approach as this research is conducted through interview with experts for the development and verification of the proposed framework. The proposed framework has been found to be feasible for the implementation in accordance with the ongoing advancements in the digital age.

Waqif Preference of Waqf-Based Qardhul Hassan Financing in Malaysia: An Analytic Hierarchy Process Perspective

Although Islamic banking products like tawarruq and bay al-inah personal financing products available in the Malaysian Islamic banking market, their ability to meet the need of those disadvantaged in the case of health crisis like COVID-19 or financial crisis are somehow marginal. There is a need for Islamic social finance products to meet this challenge and one of them is the offered qardhul hassan financing funded through crowdfunding on the basis of waqf. This is called waqf-based qardhul hassan financing. For this purpose, this study introduces QAFSCALE, referred to qardhul hassan financing scale to gauge waqif preference on the facility should it is made available in the market. A total of 324 waqif or donors were participated in this study to identify their preference in donating their money in the facility should it is introduced. This study used Attia’s (2010) maqasid al-Shariah theory to generate the QAFSCALE, beginning from the conceptualisations, dimensions and importantly the batter items that represent the QAFSCALE. Analytic Hierarchy Process (AHP) is used. The results obtained indicate that humanity factor is ranked first in importance, followed by family factor, consumer factor and ummah factor. This study limitation is the sample size. A broader sample would have made the result better. Adding to that, the newly designed scale is first of its kind in the context of waqf-based qardhul hassan financing and more studies needed to prove its applicability and generalization, at least. The results obtained might be of interest to managers of Islamic banks and the like to understand their potential waqif preference in the context of waqf-based qardhul hassan financing. Four factors drawn from QAFSCALE were evaluated to identify important factors leading to the waqif contribution on waqf.

Implementation Of The Islamization Curriculum In Islamic Religious Higher Education (PTKI) Development In Indonesia As An Effort To Integrate Science In The Perspective Of Maqasid Al-Shari'ah

In the present period, Islamic education has significant difficulties. The challenge born in this era is to withstand the exposure of western secularism. PTKI as the axis of higher-level religious education must be able to apply the model of Islamization of education at the university level. In order to apply the Islamization curriculum in higher education, Abdul Hamid Abdul Sulayman a person who is much influenced by Syed Qutub's ideas, is attempting to establish islamization curriculum at the International Islamic University Malaysia (IIUM). With this implementation, AHAS as a policy actor hope to produce Muslim scholars who have a universal perspective of Maqasid Al-Shariah. Meanwhile in Indonesia itself the biggest potential of Muslim world needs to elaborate more regarding to the impelementation of islamization curriculum in PTKI. Using library study this research had been conducted. This research found that PTKI plays an education strategy following the roots of Islamic Curriculum (Isamic-National-International Curriculum). The curriculum has the potential to raise a generation of Muslims capable of using their faith to help solve humanitarian problems through the Maqasid Al-Shariah method. Furthermore, this education model will reform PTKI so that it may generate scholars who are specialists in religious sciences, as well as experts in religious sciences and general sciences. Keywords: PTKI Curriculum, Integration Science, Maqasid al-Shariah.

NEEDS ANALYSIS OF HALAL MATCHMAKING FOR MUSLIM MARRIAGE IN JAPAN

Today, halal matchmaking services, such as halal apps and halal speed dating have appeared in many Muslim and non-Muslim countries. It is important that Muslims not only marry in a halal manner, but also maintain a healthy family life after marriage. However, in Japan, where Muslims are almost invisible minority, there are no services that provide halal matchmaking including pre-marriage education based on Maqasid al-Shariah. The purpose of the research is to analyze the need for halal matchmaking services in Japan. Halal matchmaking needs of single and divorced Muslims are to be determined. Methods: The researcher recruited potential participants for a halal matchmaking through social media of Chiba Islamic Cultural Center from 25 July to 21 August 2022. Single and divorced Muslims living in Japan who were able to communicate adequately in Japanese, were purposively selected for in-depth interviews. Feedback was obtained through in-depth interviews with all the participants after the halal matchmaking. Findings: 111 people registered their personal profiles. There were 109 valid answers (98.1%). Forty-one people responded for the preliminary interviews. Twenty people who attended the matchmaking were invited for the feedback in-depth interviews. Barriers to find a potential marriage partner among Muslims in Japan include a rarity of Muslims as a user of the Japanese matchmaking services, time and money consuming efforts and anxiety for marriage due to the lack of trust or assurance of individualistic marriage compared to that of communal marriages. Thus, community effort to develop halal matchmaking is needed for the Muslims in Japan.