​Islamic Financial System: Principles & Operations

Epistemological Integration: Essentials of an Islamic Methodology is a program which seeks to construct an intellectual framework for Islamic methodology with a view to realizing practical training in the thoughtful investigation of issues related to knowledge in various fields. The book’s title affirms the distinctive types of integration that characterize Islamic methodology, including integration of sources, means, and schools of thought, as well as existing realities with desired ideals etc. This is fully consistent with human nature, as variety is fundamental to the functions people perform and skills they master. The work essentially makes the case that fundamental to any Muslim recovery is laying the foundations of sound thinking and values that integrate the two main sources of knowledge: Revelation and Reality (that is the created worlds both physical, societal and psychological) under the umbrella of Tawhid. Islamic methodology adopts that and extends human hopes to integrate efforts so that humanity can realistically achieve prosperity on earth and earn eternal happiness in the afterlife.

Sukuk are an important asset class which has captured the attention of a wide range of issuers and investors, regulators and sovereigns, and academics and market players. The sukuk industry has made remarkable leaps since its modern inception in the 1990s. It has grown in size and volume, evolved in structural possibilities, and successfully expanded the boundaries of the Islamic capital market to far-flung jurisdictions worldwide. Its promising future has led the International Shari’ah Research Academy for Islamic Finance (ISRA) and Securities Commission Malaysia (SC Malaysia) to collaborate to provide essential and comprehensive knowledge on this key instrument of the Islamic capital market.

The history of Islamic thought is marked by a continuous tradition of internal revitalisation and reform embedded in the principles of islah, and tajdid. The ultimate purpose has been to bring existing realities and social change in line with the transcendent and universal standard of the Qur’an and Sunnah through a process of restoration and reform. The tradition of islah-tajdid has thus consistently challenged the Muslim status quo and prompted fresh interpretation of the Qur an and Sunnah, understood and implemented through the methodologies of interpretation and ijtihad, as well as the rejection of unwarranted accretions to the original messages of Islam. The basic theme of the paper is that civilisational renewal is an integral part of Islamic thought. The paper looks into the meaning, definition and origins of tajdid and islah and their relationship with ijtihad, and how these have been manifested in the writings and contributions of the thought leaders of Islam throughout its history. It also develops tajdid-related formulas and guidelines that should lead the efforts of contemporary Muslims in forging the objectives of inter-civilisational harmony and their cooperation for the common good.