Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

The Visionary Philosophy of Shariah Governance in Islamic Financial System: Pioneering Green Finance for a Sustainable Future

Mohd Izzat Amsyar Mohd Arif, Ruzian Markom, Nur Atheefa Sufeena M Suaree, Wan Farahiyah Izni W Abd Rahman, Siti Farahiyah Ab Rahim, Faezy Adenan , Muhammad Syahrul Deen Ahmad Rosli

http://dx.doi.org/10.6007/IJARBSS/v14-i8/22487

Open access

In an era where sustainability is pivotal, the Visionary Philosophy of Shariah Governance in Islamic finance is more relevant than ever. Shariah governance not only ensures compliance with Islamic principles but also supports broader environmental and social goals. This innovative approach aligns seamlessly with the principles of green finance, fostering a financial system that prioritizes sustainability and ethical investment. In the context of Shariah governance principles in the Islamic financial system, this study discusses the relationship between Islam, muamalat, and Islamic finance from a philosophical perspective. A clear and accurate understanding of these three subjects is crucial for grasping the connection between Islam as a religion based on divine revelation, fiqh muamalat in general, and the Islamic financial system in particular. Following this discussion, the philosophy of Shariah governance and its importance as the main pillar supporting the Islamic financial system is also revealed using a descriptive philosophical approach and a qualitative approach through document review. This approach is necessary to identify ideas, theories, and legal techniques that have emerged based on current knowledge.

Abasimel, N. A. (2023). Islamic banking and economics: concepts and instruments, features, advantages, differences from conventional banks, and contributions to economic growth. Journal of the Knowledge Economy, 14(2), 1923-1950.
Anshori, G. (2012). Sejarah Perkembangan Hukum Perbankan Syariah di Indonesia dan Implikasinya bagi Praktik Perbankan Nasional. Jurnal La Riba, 2.
Abdullah I. (1995). Pendidikan Islam dan Pengaruhnya di Malaysia. Kuala Lumpur: Dewan Bahasa dan Pustaka.
Arifin, M. (2021). The Influence of Islamic Law and Economic Principles On Banking Industry In Indonesia. Legal Ethical & Regular Issues, 24, 1.
Central Bank of Malaysia Act 2009
Chapra, & Habib, A. 2002. Corporate Governance in Islamic Financial Institutions. Jeddah: Occasional Paper No. 6 Islamic Research and Training Institute/Islamic Development Bank.
Adawiah, E. R. (2008). Constraints and Opportunities in Harmonization of Civil Law and Syariah in Islamic Financial Services Industry. Malayan Law Journal 4.
Fakhrurrazi, Wasilah, N., & Jaya, H. (2024). Islam and Knowledge: Harmony between Sciences and Faith. Journal of Modern Islamic Studies and Civilization, 2(1).
Gupta, B. (2021). An introduction to Indian philosophy: Perspectives on reality, knowledge, and freedom. Routledge.
Tahir H. M. (1974). Konsep Bank Islam: Perbandingan dan Pelaksanaan. Bangi: Jabatan Syariah UKM.
Haseeb, M., Mahdzan, N., & Ahmad, W. (2022). Are Shariah-compliant firms less prone to stock price crash risk? Evidence from Malaysia. International Journal of Islamic and Middle Eastern Finance and Management. https://doi.org/10.1108/imefm-06-2021-0223.
Islamic Financial Services Act 2013
Jha, Y. (2013). Examining The Meta-Principles of Modern Economics and Their Implications for Islamic Banking and Finance. Islamic Sciences, 11(2), 169
Ketiga, K. D. E. (1997). Kuala Lumpur: Dewan Bahasa dan Pustaka.
Arif, M. I. A. M. & Markom, R. (2013). Peranan dan Kedudukan Majlis Penasihat Shariah untuk Memperkasakan Sistem Kewangan Islam di Malaysia. Jurnal Pengurusan, 38, 127-132
Arif, M. I. A. M. & Markom, R. (2017). Penerapan Nilai-Nilai Wasatiyyah dalam Tadbir Urus Syariah bagi Sistem Perbankan Islam di Malaysia. International Journal of West Asian Studies, 10, 12-22.
Arif, M. I. A. M. & Markom, R. (2019). Sistem Tadbir Urus Syariah Perbankan Islam di Malaysia: Falsafah, Struktur dan Isu Perundangan. UKM Press.
Hanefah, M. M. (2012). Governance and Syariah Audit in Islamic Financial Institutions. Bandar Baru Nilai: USIM Publisher.
Sekreter, A. (2013). Importance of transparency in Islamic finance. Journal of Business, 2(2), 47-50.
Kunhibava, S. (2015). Legal Issues in Shariah Governance in the Islamic Finance Industry in Malaysia. ISRA International Journal of Islamic Finance, 7(2).
Suaree, N. A. S. M., Kader, S. Z. S. A., Osman, M. M., & Manaf, Z. I. A. (2022). The development of policy and legal framework for social impact assessment in Malaysia. Planning Malaysia, 20.
Urvoy, D. (2020). Ibn Rushd. In History of Islamic Philosophy (p. 330-345). Routledge.
Zulkifli H. (2008). Perlaksanaan Sistem Perbankan Islam Di Malaysia: Perspektif Undang-Undang. Bandar Baru Nilai: USIM Press.
Hasan, Z. 2012. Syariah Governance in Islamic Banks. Edinburgh: Edinburgh University Press Ltd.

(Arif et al., 2024)
Arif, M. I. A. M., Markom, R., Suaree, N. A. S. M., Rahman, W. F. I. W. A., Rahim, S. F. A., Adenan, F., & Rosli, M. S. D. A. (2024). The Visionary Philosophy of Shariah Governance in Islamic Financial System: Pioneering Green Finance for a Sustainable Future. International Journal of Academic Research in Business and Social Sciences, 14(8), 2166–2175.