Skip to main content

Research Repository

Advanced Search

Flexibility and Shari'ah Compliance of Islamic Financial Contracts: An Evaluative Framework

Moqbel, T; Ahmed, H

Flexibility and Shari'ah Compliance of Islamic Financial Contracts: An Evaluative Framework Thumbnail


Authors

T Moqbel



Abstract

Although the key distinguishing feature of Islamic finance is compliance with Sharīʿah, there is criticism from various quarters on the Sharīʿah compliance of its products. However, there is no objective way to assess the Sharīʿah compliance of Islamic financial contracts. This article develops a structured framework for analysing Sharīʿah compliance of Islamic financial contracts by deconstructing them and developing principles of evaluation based on concepts from Islamic legal theory. Other than providing a framework to assess Sharīʿah compliance of Islamic financial contracts, this article also alludes to an important issue regarding the contracts’ flexibility. Using concepts from Islamic legal theory, the article classifies different contractual stipulations according to their legal weight, and identifies how legal perspectives on the requirements of compliance can determine the flexibility of contracts. An evaluative framework is used to assess the Sharīʿah compliance of an actual muḍārabah (silent partnership) contract and finds it to be defective.

Citation

Moqbel, T., & Ahmed, H. (2020). Flexibility and Shari'ah Compliance of Islamic Financial Contracts: An Evaluative Framework. Arab Law Quarterly, 35(1-2), 92-115. https://doi.org/10.1163/15730255-bja10052

Journal Article Type Article
Acceptance Date May 12, 2020
Online Publication Date Jul 22, 2020
Publication Date Jan 1, 2020
Deposit Date May 29, 2020
Publicly Available Date Aug 27, 2020
Journal Arab Law Quarterly
Print ISSN 0268-0556
Electronic ISSN 1573-0255
Publisher Brill Academic Publishers
Peer Reviewed Peer Reviewed
Volume 35
Issue 1-2
Pages 92-115
DOI https://doi.org/10.1163/15730255-bja10052
Public URL https://durham-repository.worktribe.com/output/1269674

Files


Published Journal Article (Advance online version) (652 Kb)
PDF

Publisher Licence URL
http://creativecommons.org/licenses/by/4.0/

Copyright Statement
Advance online version © Tareq Moqbel and Habib Ahmed, 2020. This is an open access article distributed under the terms of the CC BY 4.0 licence.




You might also like



Downloadable Citations