An Analysis of Islamic Financial Derivatives from Fiqh and Maqasid al -Shariah Perspectives

This study attempts to resolve the dispute among the contemporary scholars and researchers concerning the existing Islamic financial derivatives in the market whether or not they are established in accordance with the Shariah principles and they achieve the objective of Shariah (maqasid al-shariah). This paper observes the dispute of the legitimacy of the Islamic financial derivatives from fiqh and maqasid al-shariah perspectives by studying the concept of the conventional financial derivatives, the structure of the Islamic financial derivatives and their Shariah rulings. On top of that, this paper elaborates whether or not the financial derivatives are crucial and could be regarded as public interest (al-maslahah), thus, they achieve the objective of Shariah (maqasid al-shariah).