Integrating maqāṣid al-Sharīʿah and governance principles: a framework for SME Shariah financial compliance

Sawari, Mohd Fuad and Mat Jubri@Shamsuddin, Mustafa and Mahmad Robbi, Ahmad Akram (2025) Integrating maqāṣid al-Sharīʿah and governance principles: a framework for SME Shariah financial compliance. International Journal of Fiqh and Usul al-Fiqh Studies, 9 (3). pp. 97-116. E-ISSN 2600-8408

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Abstract

This study develops an integrated framework harmonising Ibn Ashur's maqāṣid al-Shariah with governance principles to address Shariah-compliance challenges faced by Small and Medium Enterprises (SMEs). Despite constituting between 80-99% of businesses in Muslim-majority countries, SMEs struggle with inconsistent Shariah interpretations, operational complexity, and limited access to Shariah-compliant financing. Using qualitative methodology, the study conducts systematic textual and comparative analysis of maqasid literature and governance frameworks to identify key alignments and practical applications. The research aligns five key objectives (maqāṣid) in financial transactions (safeguarding wealth, transparency, circulation of wealth, economic stability, and justice) with contemporary governance principles to propose a practical, tiered implementation framework tailored to different SME categories—micro, small, and medium enterprises. Findings demonstrate that this integration enhances Shariah-compliance while offering SMEs pragmatic tools to navigate ethical and operational demands. The study highlights the role of digital technologies in streamlining implementation, particularly for resource-constrained businesses. It addresses a critical gap between theoretical Islamic finance principles and their practical SME implementation, advocating for standardised frameworks and collaborative stakeholder efforts to support Shariah-compliant SME growth. The research contributes to existing literature by providing actionable governance guidelines for enterprises with limited resources and demonstrating that Shariah compliance and good governance can mutually reinforce business performance and ethical integrity

Item Type:	Article (Journal)
Uncontrolled Keywords:	Ibn Ashur, Maqāṣidal-Sharīʿah, Shariah-compliance, Islamic finance, governance, SMEs
Subjects:	BPK Islamic law. Shari'ah. Fiqh
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Fundamental and Inter-Disciplinary Studies (Effective: 5th Feb 2014)
Depositing User:	DR AHMAD AKRAM MAHMAD ROBBI
Date Deposited:	23 Sep 2025 16:53
Last Modified:	23 Sep 2025 16:53
URI:	http://irep.iium.edu.my/id/eprint/123327

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