Islamic finance framework

Sources of Shari’ah

Shari’ah or Islamic law is the legal system of the religion of Islam that sets out a system of duties or code of conduct for individuals to follow so that they may live their life in a fulfilling and beneficial manner.

Although the phrase ‘Islamic law’ is widely and commonly used, Shari’ah is often the preferred term to demarcate from Western or Christian concepts of ‘law’ and associated assumptions, for example:

1. •

   the Shari’ah is inherently non-secular and does not distinguish between religious and governmental institutions and authorities

2. •

   the Shari’ah is both a legal system and a moral framework, rather than, for example, a legal system underpinned by a moral framework, and

3. •

   the Shari’ah regulates both public and private spheres, affecting not only individuals’ relationships with neighbours and the state but also with Allah, their private or personal affairs and their conscience

The umbrella of Islam spans a number of different branches and schools of thought, many of which began