chapter  3
17 Pages

A critical appraisal of Islamic finance in the light of the maqasid al-Shariʿah


The fundamental interrelation between the objectives (maqasid) of Shari’ah and Islamic finance constitutes the focus of this contribution. Hence, on the one side, the chapter describes the five maqasid (securing of faith; protection of life; safeguard of intellect; security of progeny; preservation of wealth) as a comprehensive way of life and highlights their meaning as pillars and measures of human welfare (falah) in Islam. Correspondingly, on the other side, it indicates which guidelines and provisions regarding financial dealings are upheld by Islam to nurture the social dimension of economic development in the light of the maqasid.