The actualization ofmaqāṣid al-Sharīʿahin Islamic finance: a conceptual framework

Purpose - This paper aims to formulate a conceptual framework that will facilitate the actualization ofmaqāṣid al-Sharīʿahin product design and consumption within Islamic financial institutions (IFIs). Design/methodology/approach - This paper relies on the classical and contemporary literatureon maqāṣid al-Sharīʿahand Islamic finance and adopts a qualitative content analysis method and an inductive approach to outline the constituent elements that formulate the framework. Findings - This study determines six vital constituents ofmaqāṣid al-Sharīʿah, namely, parameters ofmaqāṣid, particular objectives, appropriate means, micro provisions, level of need and legal maxims to develop a conceptual framework of actualizingmaqāṣid al-Sharīʿahin Islamic finance. The framework covers the following three stages: identification ofmaqāṣid, operationalization ofmaqāṣidin product design and consumption based onmaqāṣid. Research limitations/implications - This paper proposes a conceptual framework without investigating the practice of any particular industry or products. Further research would focus on formulating a practical framework based on a focus group discussion with industry experts, elaborating the parameters ofmaqāṣid, scrutinizing themaqāṣidavailable in the literature by the parameters ofmaqāṣidand assessing the IFIs’ products and services using the proposed framework. Practical implications - This paper provides insights into the importance ofmaqāṣidelements and the effects of overlooking them on IFIs and customers’ product consumption. Furthermore, a major implication of the proposed framework is to learn how to use themaqāṣidapproach as the baseline for designing new financial products. Originality/value - The novelty of this paper lies in its pioneering attempt of harmonizing all essentialmaqāṣidelements and using them as constituents to formulate a comprehensive framework that actualizesmaqāṣid al-Sharīʿahin the Islamic finance industry.