Idealism versus realism

Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah

Rusni Hassan, Syed Ahmed Salman, Adnan Yusoff

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Shari'ah compliance is the main pushing factor to revitalize the concept of Islamic teaching in the commercial world by emerging Islamic finance industries. This unique compliance is the fundamental distinguishing factor between Islamic and conventional finance. The vision of Islamic finance is to avoid involving in Shari'ah prohibited elements such as interest, uncertainty, gambling and prohibited investments which are currently practiced by the conventional finance industry. These elements are prohibited clearly in the primary sources of Shari'ah, i.e. the Quran and Sunnah. Considering the prohibitions of conventional finance from Islamic perspective, Shari'ah scholars have come out with an alternative solution by introducing Islamic finance. Consequently, there is a tremendous growth of Islamic finance proven by wide-spread subscription of the Islamic finance products and services in both Muslim and non-Muslim countries. However, despite its growth, Islamic finance is not totally free from criticisms that its practice does not meet the ultimate objective of its establishment, i.e. realization of benefit to mankind in this world and Hereafter. In order to achieve this objectives of Shari'ah (maqasid al-Shariah) Islamic financial institutions must aim to provide socio-economically fair products and services and avoid all the items prohibited by the Shari'ah. Ideally, it should be taking care of public interest and social justice while making profits for the shareholders and investors. If Islamic finance complies with Maqasid Al- Shari'ah, there should not be any undesirable issues against the practices of Islamic finance. However, due to the existence of unfavorable issues, it is timely to revisit the historical practices of Islamic finance so that these past events can be used as lessons for the betterment of Islamic finance in the future. Thus, the main objective of this proposed research is to examine to what extent the Islamic finance sector meets Maqasid Al- Shari'ah.

Original languageEnglish
Title of host publicationProceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020
Subtitle of host publicationSustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth
EditorsKhalid S. Soliman
PublisherInternational Business Information Management Association, IBIMA
Pages7011-7014
Number of pages4
ISBN (Electronic)9780999855119
Publication statusPublished - 01 Jan 2018
Event32nd International Business Information Management Association Conference, IBIMA 2018 - Seville, Spain
Duration: 15 Nov 201816 Nov 2018

Publication series

NameProceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth

Conference

Conference32nd International Business Information Management Association Conference, IBIMA 2018
CountrySpain
CitySeville
Period15/11/1816/11/18

Fingerprint

Finance
Idealism
Islamic finance
Islamic financial institutions
Realism
Shareholders
Industry
Profitability
Teaching

All Science Journal Classification (ASJC) codes

  • Management of Technology and Innovation
  • Strategy and Management
  • Computer Science Applications
  • Human-Computer Interaction
  • Business and International Management

Cite this

Hassan, R., Salman, S. A., & Yusoff, A. (2018). Idealism versus realism: Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah. In K. S. Soliman (Ed.), Proceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth (pp. 7011-7014). (Proceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth). International Business Information Management Association, IBIMA.
Hassan, Rusni ; Salman, Syed Ahmed ; Yusoff, Adnan. / Idealism versus realism : Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah. Proceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth. editor / Khalid S. Soliman. International Business Information Management Association, IBIMA, 2018. pp. 7011-7014 (Proceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth).
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Hassan, R, Salman, SA & Yusoff, A 2018, Idealism versus realism: Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah. in KS Soliman (ed.), Proceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth. Proceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth, International Business Information Management Association, IBIMA, pp. 7011-7014, 32nd International Business Information Management Association Conference, IBIMA 2018, Seville, Spain, 15/11/18.

Idealism versus realism : Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah. / Hassan, Rusni; Salman, Syed Ahmed; Yusoff, Adnan.

Proceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth. ed. / Khalid S. Soliman. International Business Information Management Association, IBIMA, 2018. p. 7011-7014 (Proceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth).

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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Hassan R, Salman SA, Yusoff A. Idealism versus realism: Performance of Islamic financial institutions in the light of Maqasid-Al Shari'ah. In Soliman KS, editor, Proceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth. International Business Information Management Association, IBIMA. 2018. p. 7011-7014. (Proceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth).