Operational application of selected qawāʿid fiqhiyyah (Islamic legal maxims) in structuring Islamic asset financing products in Malaysia: transitioning from controversial products to more acceptable alternatives

Othman, Ahmad Azam and Omar, Muhammad Naim and Abdullah, Mohamad Asmadi and Jaapar, Ghazali and Mzee, Mustafa Mzee (2026) Operational application of selected qawāʿid fiqhiyyah (Islamic legal maxims) in structuring Islamic asset financing products in Malaysia: transitioning from controversial products to more acceptable alternatives. Journal of Fatwa Management and Research, 31 (2). pp. 195-228. ISSN 2232-1047 E-ISSN 0127-8886

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Abstract

The qawāʿid fiqhiyyah (Islamic legal maxims) constitute a foundational factor in the formulation and development of Islamic banking asset financing products. When used together with the primary sources of Sharīʿah—the Qur’an, Sunnah, ijmāʿ, and qiyās—these maxims offer a structured framework to ensure that the structure and operation of Islamic banking asset financing products remain fully compliant with Sharīʿah principles. Their operational application permissibility is critical in assessing the, suitability, and Sharīʿah compliance of new product proposals, as well as in determining whether existing products require modification, substitution, or supplementation to address evolving market and regulatory demands. Accordingly, this article examines the operational application of qawāʿid fiqhiyyah in structuring Islamic asset financing products within the Malaysian Islamic banking context. Their application depends closely on the nature of the underlying contractual arrangements, whether they are based on sale, lease, or equity structures. The article also examines how these applications can support the global recognition of Malaysia’s Sharīʿah-compliant banking practices. Adopting a qualitative, doctrinal approach, the article analyzes relevant fiqh principles, regulatory frameworks, and selected case studies of sale-based, lease-based, and equity-based asset financing products. The study shows that the systematic application of qawāʿid fiqhiyyah enables contentious or doubtful (mushkil or shubhah) asset-financing products to be replaced with less problematic or fully compliant alternatives. This approach facilitates the design of financial products that are entirely Sharīʿah-compliant and free from juristic disagreement (khilāf). Such outcomes would strengthen the credibility and globalacceptance of Malaysian Islamic banking products, further positioning the country as a leading hub for Shariah-compliant financial innovation.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Qawāʿid fiqhiyyah, Islamic asset financing products, Malaysia Islamic banking, Sharīʿah compliance, Global recognition.
Subjects:	BPH Islamic Economics BPK Islamic law. Shari'ah. Fiqh H Social Sciences > HG Finance H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws Ahmad Ibrahim Kulliyyah of Laws > Department of Islamic Law
Depositing User:	Dr Ahmad Azam Othman
Date Deposited:	15 Sep 2026 14:26
Last Update:	15 Sep 2026 14:26
Queue Number:	2026-09-Q5089
URI:	http://irep.iium.edu.my/id/eprint/131241
Indexed In:	Google Scholar, MyCite

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