Developing Islamic finance in the framework of maqasid al-Shari'ah

Purpose – The paper aims to investigate the dimensions of maqasid al-Shari'ah in Islamic finance by exploring the ends (maqasid) and the means (wasa'il). Those would clarify the nature and goals of Islamic finance as well as its directional development. Design/methodology/approach – Using literature in English and Arabic sources in the area of maqasid al-Shari'ah, as well as from the reading of the primary sources (the Qur'anic texts/nusus), the paper attempts to delineate the dimensions that would constitute the ends (maqasid) and the means (wasa'il) in Islamic finance. Findings – The paper explicates three specific ends (maqasid) in Islamic finance, namely wealth circulation, fair and transparent financial practices and justice at the micro- and macro-level. To achieve those ends, the Shari'ah provides means (wasa'il) such as facilitating financial contracts, establishing values and standards and instituting social responsibility. Research limitations/implications – The paper is a conceptual paper that explores the dimensions of maqasid al-Shari'ah in Islamic finance. Practical implications – The findings of this paper will give insights on the ends (maqasid) and the means (wasa'il) in Islamic finance based on the maqasid al-Shari'ah discourse. It could be used as a reference in understanding the nature of Islamic finance and in developing a sound and solid Islamic finance based on the Shari'ah. Originality/value – The paper proposes the ends-and-means criteria in Islamic finance, developed on the basis of the maqasid al-Shari'ah discourse as well as from direct reading of the texts (nusus), which is lacking in the Islamic finance literature.