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Islamic finance: from sacred intentions to secular goals?

Islamic finance: from sacred intentions to secular goals? Purpose – The paper seeks to examine the political and socio‐economic circumstances in three different periods of the evolution of Islamic finance and how the fundamental aim of its existence altered over time. Design/methodology/approach – Based on the existing literature on the evolution of Islamic finance, this paper explores the tensions and conflicts with reference to the dynamic changes in the political and socio‐economic landscape to understand how “intentions” changed over time. Findings – The sacred intentions to help Muslims fulfill their religious economic obligations especially with regards to riba (usury) have been distorted with secular goals as a result of the intervention of political‐economic and social events as well as the dynamic interactions with the conventional sector. Maqasid al‐shari'ah (purposes of the law) has been unduly used to justify the innovation of financial products to compete and converge with conventional banking. Originality/value – This editorial paper enhances the understanding of the status quo of Islamic finance in general and paves the way for country‐specific research on this indispensable issue. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Islamic Accounting and Business Research Emerald Publishing

Islamic finance: from sacred intentions to secular goals?

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References (15)

Publisher
Emerald Publishing
Copyright
Copyright © 2010 Emerald Group Publishing Limited. All rights reserved.
ISSN
1759-0817
DOI
10.1108/17590811011086697
Publisher site
See Article on Publisher Site

Abstract

Purpose – The paper seeks to examine the political and socio‐economic circumstances in three different periods of the evolution of Islamic finance and how the fundamental aim of its existence altered over time. Design/methodology/approach – Based on the existing literature on the evolution of Islamic finance, this paper explores the tensions and conflicts with reference to the dynamic changes in the political and socio‐economic landscape to understand how “intentions” changed over time. Findings – The sacred intentions to help Muslims fulfill their religious economic obligations especially with regards to riba (usury) have been distorted with secular goals as a result of the intervention of political‐economic and social events as well as the dynamic interactions with the conventional sector. Maqasid al‐shari'ah (purposes of the law) has been unduly used to justify the innovation of financial products to compete and converge with conventional banking. Originality/value – This editorial paper enhances the understanding of the status quo of Islamic finance in general and paves the way for country‐specific research on this indispensable issue.

Journal

Journal of Islamic Accounting and Business Research – Emerald Publishing

Published: Jan 1, 2010

Keywords: Islam; Finance; Politics

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