THE FUTURE OF ISLAMIC FINANCE: A REFLECTION BASED ON MAQĀṢID AL-SHARĪʿAH

Abstract

The timely emergence of Islamic finance as a system of thought and practice amidst world crisis and uncertain proposed solutions may offer a coherent perspective for understanding real economic problems and alternatives to the very foundations of how economics and finance should be managed to actualise human prosperity. Despite its impressive development, the question whether Islamic finance is on the right track to realise the hopes pinned on it at the time of its initial establishment currently emerges. This article attempts to reflect on the nature of the development of Islamic finance, as well as its achievement and future direction. For Islamic finance to really progress, it should be developed with the agenda of realising the objectives of Sharīʿah (Maqāṣid al-Sharīʿah) as well as its full potential as a system, not as a stopgap means of surviving the crisis, nor as a legal (ḥalāl) means in financial dealings that satisfy the minimum standard of legal requirements. Furthermore, it should provide guidelines for managing a good economy, stimulating growth and development, realising socio-economic justice, and promoting employment and stability.