The Importance of Maqasid Al-Shariah in Islamic Finance. a Short Essay by Nadifa Abdulhalim Mohamed

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INCEIF
The Global University of Islamic Finance

CERTIFIED ISLAMIC FINANCE PROFESSIONAL (CIFP)

Part One

SHARIAH ASPECTS OF BUSINESS AND FINANCE

Assignment Topic

The importance of Maqasid al-Shariah in Islamic Finance

June 2012 Semester

Lecturers: Dr. Yong Bao Wang
Dr. Ahcene Lahsasna

Student Name: Nadifa Abdulhalim Mohamed
Student ID: 1200331

Abstract

Maqasid Al-Shariah is one of the very important aspects in Islamic jurisprudence. Maqasid Al-Shariah is taking a crucial position in Ijtihad in order to process a valid examination of the text and provide intact interpretation to achieve the Islamic ruling. The aim behind that is to comprehend the Shariah in all aspects. The primary objective of Maqasid al-Shariah is the realization of benefit to the people, connecting their affairs both in this world and hereafter. It generally held that the Shariah in all of its parts aims at securing a benefit for the people or protecting them against corruption and evil. The aim of this paper is to elaborate the importance Maqasid al-Shariah in Islamic finance. The study found that Maqasid al-Shariah is the most important Shariah aspect in Islamic finance because protection of wealth is one of the five major elements of Maqasid al-Shariah.

Objectives of the research:

____________________________________________

• Definition of Maqasid Al-Shariah.

• Identification of the importance of Maqasid Al-Shariah in Islamic finance.

• Classification of Maqasid Al-Shariah

Key terms of the research:

1. Qur’an 2. Sunnah 3. Maqasid Al-Shariah 4. Islamic finance 5. Islamic law 6.Fiqh 7.Usulfiqh

TABLE OF CONTENTS
TOPIC PAGE NUMBER
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1. Abstract………………………………………………………………………………….1 2. Objectives of the research……………………………………………………………..2 3. Introduction…………………………………………………………………………4 1.1 History and background…………………………………………………………..4 2. Identification of Maqasid Al-Shariah………………………………………………8 3. Definition of Maqasid Al-Shariah…………………………………………………11 4. Objectives of Maqasid Al-Shariah………………………………………………...13 5. Classification of Maqasid Shariah………………………………………………..15 5. Essential (Al-daruriyat)…………………………………………………………….16 6. Complementary (Al-hajiyat)…………..…………………………………………19 7. Embellishments (Al-Tahsiniyat)…………………………………………………19 8. Maqasid Al-Shariah in Islamic Finance……………………………………………19 9. Advantages of Shariah compliance………………………………………………..24 10. Conclusion…………………………………………………………………………25 11. References………………………………………………………………………….26

1. Introduction
The linguistic meaning of the word Maqasid is as follows: Maqasid is the plural of the word Maqsad and comes from the verbal root qa-sa-da which has several meanings, some of which are: ‘to intend,’ ‘to take a middle course’ and ‘to walk towards.’ From this root comes the noun, Qasd which means ‘a goal,’ ‘an aim,’ or ‘an aspiration.’ The second part of the title is the word Shari’ah, which is a noun meaning ‘a path to a water hole,’ and in its more common usage, ‘the law of God as revealed to Muhammad.’ Together, the term Maqasid al-Shari’ah carries the meaning, based on its constituent parts, of the ‘goals and objectives which are the reason for the legislation of the rules of Islam’ or more simply, ‘The Objectives of Islamic Law’ The Maqasid theory is based on an inductive reading of the Quran in order to identify the higher objectives, intent, and purpose of the divine laws, which are intended to preserve human interests in both this world and the next. This theory asserts that no commandment of God is intended to cause harm for its own sake, although some actions may require struggle and hardship.

All legal rulings are intended to achieve 'balance' and 'moderation' by steering...
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