Maqasid Foundations of Market Economics

Explains the exchange economics behind the Shari''ah compliance conditions of Islamic finance

Drawing on received sources of ''maqasid'' (Shari''ah''s practical objectives), this book demonstrates how the principles of market economics affect how markets and financial instititions actually operate under Shari''ah law. It shows where Islamic economics converges with and differs from conventional economics through the banning of usury and other Shari''ah-prohibited trade practices.

Islamic finance rests on the principles of free market exchange of Islamic economics. But the latter has failed to keep pace with the rapid developments of the former. Much work published about Islamic economics is at least idealistic if not radically ideological, with little relevance to the Islamic financial industry. This book provides the coherent body of economic theory that students and practitioners of Islamic finance need in order to understand how the maqasid gives a sense of direction to developments in the industry.

Key Features

• Departs from the common conceptual grounds of market behaviour shared by the maqasid approach and the conventional approach to economics
• Clearly explains the maqasid economic rationale of precluding interest rates on money capital from legitimate economic exchange
• Students can track their progress with learning outcomes, chapter previews, chapter summaries and revision questions