The reception of maqasid al-shariah in Islamic finance reforms : a comparative study of Indonesia and Morocco

Abstract

This analogy shows that Indonesia and Morocco are each applying maqasid al-Shariah to the same Islamic financial reforms but differently because of their social, political, legal and religious environments. Indonesia focuses on social justice, financial inclusion and institutional development, whereas Morocco focuses on stability, community trust and wary integration. Nonetheless, the reforms are justified by maqasid that serve as an ethical binding force, ensuring they adhere to the Islamic mandate. The contribution of maqasid towards shaping the structure of ethical financial systems cannot be overstated, but equally important is fostering a culture of trust and institutional credibility in people. Such comparative studies are beneficial to policymakers and even researchers. It is evident that the way to Islamic finance reform is not easy. The reforms should represent the local realities. Further studies might also examine the long-term effects of such legal regimes on financial inclusion, protection, and economic development among consumers. This will bring us a step forward in understanding how Islamic finance can truly be principled and practical as it relates to local situations but is concerned with economic issues in the context of the modern world.