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Shariah Declaratory Law

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Islamic laws (Shariah rulings) may be classified into two, which are taklifi (mandatory law) and wad’i (declaratory law). Laws which define the characteristics of a man’s acts, namely whether they are obligatory, recommended, permissible, reprehensible or prohibited or which indicate the legal effects of an act are called mandatory laws. There are five Shariah rulings (hukm Shariah) that are applicable in determining whether a particular action is permissible or not according to Shariah. These are wajib, mandub, mubah, makruh and haram. On the other hand, the declaratory law indicate the components of mandatory laws, namely whether certain facts are the causes, conditions or constituents of certain commands. A declaratory law is useful in differentiating …show more content…

By referring to the primary sources of Shariah, the Holy Quran and the Prophetic Sunnah, the fuqaha shall deliberate a suitable hukm Shariah for the particular issue.

Both of these scriptures are the main source of reference due to their divine nature as they both came directly from Allah The Almighty. In deriving the rulings, those concerned must be well versed in the science of the Quran and the Sunnah. According to Imam Shafii, it is not permissible for any person who is not well-versed in the Quran as well as acquainted with the science of abrogation to give any Shariah opinion. The fuqaha refer to these couple of primary sources as the first points of reference, followed by ijma ' (consensus of the scholars) and qiyas (analogy).

Shariah rulings as the main pillar for Islamic …show more content…

Hukm Shariah determines which financial activities are in compliance with Shariah. Similar methodology applies to the Shariah committee of Islamic banks when they are deliberating on any new product. They need to ensure that the product offered to the consumers are based on a valid Shariah contract, while its operational structure does not contain elements of interest (riba), gambling (maysir) and uncertainty (gharar) which are prohibited. Take the case of car financing for example, conventional car loan is Haram (prohibited) simply because the customer is charged with interest which is unfair. Islamic financing avoids interest-based transactions (riba), and instead introduces the concept of buying something on the borrower’s behalf, and leasing it out to the customer via Ijarah, or leasing contract. Hukm Shariah forms the soul of Islamic finance, of which it is the main consideration for all Islamic finance products to protect justice for both the customers and the Islamic financial institutions

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