In the name of Allah,

The Entirely Merciful, The Especially Merciful

Praise is due to Allah, Lord of the worlds, may the blessings and peace be upon our master Muhammad, the seal of Prophets, on his family, and all his companions.

Resolution No. 247 (09/25)

Guidelines for the Application of Maqāṣid in Regulating Contemporary Financial Transactions According to Sharia Rulings

The Council of the International Islamic Fiqh Academy of the Organization of Islamic Cooperation, holding its 25th session in Jeddah, Kingdom of Saudi Arabia, on 29 Rajab – 3 Shaaban 1444H (20-23 February 2023),

Having considered the Academy’s resolution no. 167 (18/5) on Maqāṣid and their Role in Deriving Sharia Rulings,

Having examined the research papers submitted to the Academy concerning Guidelines for the Application of Maqāṣid in Regulating Contemporary Financial Transactions According to Sharia Rulings,

Having listened to the discussions of the Academy’s members and experts,

Resolves

First: Emphasizing Academy’s resolution no. 167 (5/18) on Maqāṣid and their Role in Deriving Sharia Rulings.

Second: Maqāṣid Al-Sharia (purposes of Sharia) of financial transactions are the values and objectives that Sharia aims to realize through financial transactions, such as the purpose of justice in the transaction, the circulation and promotion of wealth, as well as transparency, protection, and growth.

Third: Sharia boards and councils should consider and respect the implications of Maqāṣid on transactions and their guidelines, as well as their application to realities and actual incidences. The most important of these guidelines include:

• These guidelines should not contradict stronger Sharia-based evidences.
• Taking into consideration the categories of Maqāṣid and their stratification in terms of their originality, and subordination, comprehensiveness and partiality, conclusiveness and inconclusiveness, so that the inconclusive does not take precedence over the conclusive, nor does the partial take precedence over the comprehensive, nor the subordinate over the original.
• Taking into consideration the five universal Maqāṣid when applying Maqāṣid which are specific to certain transactions.
• Distinguishing rulings on transactions, between what falls under Maqāṣid and what falls only under the means, so that neither the means revoke and invalidate an established maqsad, nor should the latter be abandoned in order to obstruct one of its means.
• Maqāṣid of financial transactions can be benefited from in the formulation and interpretation of contemporary financial contracts and transactions and the resolution of disputes caused by pandemics and emergency circumstances, in light of the purpose of justice, and other purposes related to financial transactions, such as promotion, transparency, and stability.
• Maqāṣid should be used to verify the realism and non-fictitious nature of contemporary transactions.
• Taking into account ma’alaat (final consequences) of financial transactions in light of Maqāṣ

Recommendations

1. Urging universities, institutes, and scientific centers to devote more attention to Maqāṣid, in their research and educational subjects, in order to prepare generations that understand both Sharia texts and their purposes, on the one hand, and Sharia texts and on-ground realities, on the other.

2. Drawing the attention of students, researchers, and scholars specializing in Fiqh, Usul, and Maqāṣid, to the importance of acquiring excellent knowledge in contemporary economics and finance.

Indeed, Allah is All-Knowing.