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
Authors
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Ahmad Azam Othman
Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia, 53100 Kuala Lumpur, MALAYSIA
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Muhammad Naim Omar
Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia, 53100 Kuala Lumpur, MALAYSIA
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Mohamad Asmadi Abdullah
Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia, 53100 Kuala Lumpur, MALAYSIA
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Ghazali Jaapar
Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia, 53100 Kuala Lumpur, MALAYSIA
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Mzee Mustafa Mzee
Karume Institute of Science and Technology, Box 467, Zanzibar, TANZANIA
DOI:
https://doi.org/10.33102/jfatwa.vol31no2.792Keywords:
Qawāʿid fiqhiyyah, Islamic asset financing products, Malaysia Islamic bankingAbstract
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 global acceptance of Malaysian Islamic banking products, further positioning the country as a leading hub for Shariah-compliant financial innovation.
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Copyright (c) 2026 Ahmad Azam Othman, Muhammad Naim Omar, Mohamad Asmadi Abdullah, Ghazali Jaapar, Mzee Mustafa Mzee
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