From Legal Formalism to Value-Based Impact

Developing an Integrative Maqāṣid al-Sharīʿah Framework for Contemporary Islamic Finance

Authors

  • Rahmi Dewanti Universitas Muhammadiyah Makassar, Indonesia
  • Tabhan Syamsu Rijal Universitas Bosowa Makassar, Indonesia
  • Asmaa Elzieny Al-Azhar University, Cairo, Egypt
  • Rosmalina Kemala Universitas Muhammadiyah Makassar, Indonesia
  • Sohrah Universitas Islam Negeri Alauddin Makassar, Indonesia

DOI:

https://doi.org/10.24252/mazahibuna.vi.64620

Keywords:

Maqasid al-Shariah, Islamic Finance, Social Justice, Corporate Social Responsibility, Maqasid Performance Measurement

Abstract

This study examines the concept of maqāṣid al-sharīʿah (the higher objectives of Islamic law) and its application in contemporary Islamic finance. Employing a systematic qualitative literature review, this study synthesises classical Islamic legal sources and recent empirical scholarship across five thematic dimensions: (1) the theoretical foundations and evolution of maqāṣid al-sharīʿah; (2) the operationalisation of its objectives within Islamic financial institutions; (3) maqāṣid-based performance measurement frameworks; (4) the integration of maqāṣid al-sharīʿah with sustainability, corporate social responsibility, and environmental, social, and governance (ESG) principles; and (5) persistent challenges and future research directions. The findings reveal a persistent gap between formal Sharīʿah compliance and the substantive realisation of maqāṣid al-sharīʿah, particularly in relation to social justice, public welfare, and equitable wealth distribution. Emerging approaches, including Maqāṣid Performance Measures and the Maqāṣid al-Sharīʿah Index, provide alternative mechanisms for assessing the broader social and ethical performance of Islamic financial institutions. The literature further indicates that stronger alignment with maqāṣid al-sharīʿah can support long-term institutional efficiency, stakeholder trust, and sustainable value creation. Accordingly, the study argues for a transition from predominantly compliance-oriented models towards an integrative framework that incorporates social-impact indicators, risk-sharing mechanisms, Islamic social-finance instruments, and broader Sharīʿah governance. This framework repositions Islamic finance as a value-based system in which legal compliance is complemented by measurable contributions to social welfare and equitable economic development.

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2026-08-31

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Dewanti, R., Rijal, T. S., Elzieny, A., Kemala, R., & Sohrah. (2026). From Legal Formalism to Value-Based Impact: Developing an Integrative Maqāṣid al-Sharīʿah Framework for Contemporary Islamic Finance. Mazahibuna: Jurnal Perbandingan Mazhab, 505–524. https://doi.org/10.24252/mazahibuna.vi.64620

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VOLUME 8 ISSUE 2, AUGUST 2026

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Copyright (c) 2026 Rahmi Dewanti, Tabhan Syamsu Rijal, Asmaa Elzieny, Rosmalina Kemala, Sohrah

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