The Development of the Maqasid Al Shariah Index to Assess the Sharia Compatibility Performance of Islamic Industry Including Other Industry and Financial Industry & Banks
The study of Islamic Finance/Banking as per the Shari’ah guidelines in the wake of the phenomenal growth of Islamic banking since 1970 is a favorite topic of the scholars who are working on the subject. Another important area of interest of the researcher is whether the IBS full fill its duties and meets the expectations of the general masses and how much they achieved the desired goal. However, four decades after the establishment of IBs, the significant divergence between ideals and practices remains and is not yet bridged. Critics argue that IBs do not realize the true Maqasid al Shariah aims and objectives, while IBs are expected to promote social welfare to fulfill the Shariah objective by the authors. It is important to mention here that the concept of Maqasid al Shariah was first discussed by Al -Juwaini (1028-1087 AD), followed by Al-Ghazali (1058-1087 AD), who placed maslahah as the core of maqasid sharia which is fully developed and became reality in the form of Islamic banking from the 1970s and onward. It would not be true that Islamic banks should work for charitable motives only it would not be appropriate for policymakers of Islamic banks to stress the profit maximization objective only. Further, this research paper also aims to generalize the MSI from the Banking sector specific to all other shariah-compliant companies of other sectors as well. The Shariah-compliant industry is one of the growing industries in the world. It refers to the industry in line with Islamic principles and requirements. The emergence of this industry aims to fulfill the need for Islamic compliance products and services. Surprisingly, the industry has been growing in both Muslim and non-Muslim countries. Assessing the performance of the industry would be notable to ensure that it obtains its objectives. The proper performance measurement should highlight the business perspective and religious aspects. The research objectives of this paper are to understand the true sense of Islamic Financing and the working of Islamic Banking as per the Shariah objective and to review the existing literature on the subject. This research aims to explore the current issues and challenges in developing maqashid al-shari’ah. We used the conceptualization of Mergaliyev, et al. (2019), and Alhammadi et.al, (2020) to develop a theoretical framework that can be used to create a new General Maqasid ul Shariah (GMS index) that can be measured Sharia complied industry including Financial and Banking Industry
Year of publication: |
[2023]
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Authors: | Mohiuddin, Syed Khalid ; Siddiqui, Danish Ahmed |
Publisher: |
[S.l.] : SSRN |
Saved in:
freely available
Extent: | 1 Online-Ressource (45 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 28, 2023 erstellt |
Other identifiers: | 10.2139/ssrn.4432530 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014362249
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