Page 63 - AQIF M1

4
60
Philosophy and Fundamentals of Sharī’ah for Islamic Finance
SHA0011

Prophet SAW said:
“Allāh has forgiven my follower for mistakes and forgetfulness, and what
they are forced to do”.
(Sunan Ibn Mājah)

5. Conformity of Contract with The Objectives of Sharī’ah (maqāṣid
al-Sharī’ah)

Any transaction or contract entered by individuals shall be in accordance
with the Maqāṣid al-Sharī’ah i.e. preservation of faith, life, lineage,
intellect and wealth. Otherwise, the transaction is considered invalid.

6. The Principle of Wide Circulation of Wealth
Hoarding is not permitted in Islām because it will lead to the accumulation
of wealth in the hands of a few people without circulating and pumping
it back into the economic circle. Wealth and property should be circulated
among the general public and actively transferred from one hand
to another in the form of expenditures and investments. For this reason,
Sharī’ah facilitates the proper circulation of wealth and transfer
of property ownership among the public. There are a number of
Sharī’ah compliant financial and economic transactions that can be
used as the tools. In addition, the obligation to pay zakāh is another
principle of the distribution of wealth in Islām.

Allāh SWT says:
“O ye who believe! There are indeed many among the priests and anchorites,
who in Falsehood devour the substance of men and hinder (them) from
the way of Allāh SWT. And there are those who bury gold and silver and
spend it not in the way of Allāh SWT - announce unto them a most grievous
penalty”
(al-Tawbah 9:34)

7. The Principle of Transparency in Commercial Dealings

The principle of transparency means that all financial transactions
must be conducted in a manner where all the parties involved are
clear about the important facts on the contract including the terms
and conditions of their dealings. This is to avoid any disputes, clashes
or damages.

8. Justice and Fair Dealings
Justice in the context of Islamic commercial law means placing
wealth and property in its proper place as prescribed by the Creator.