UDTR Global Rights of Nature Radar

Integrating Maqāṣid al-Sharīʿah and Governance Principles: A Framework for SME Shariah Financial Compliance

Identification

Public canonical key

radar:r-a3d3a7560ca0125ac5bcc61e213882e2

Authors

Mohd. Fuad Md. Sawari · Mustafa Mat Jubri Shamsuddin · Ahmad Akram Mahmad Robbi

Reported year

2025

Reported language

en

Source type

article

First detected

2026-11-14T09:37:05.542838+00:00

Last metadata observation

2026-11-14T09:37:05.542838+00:00

Last HTTP verification

Not checked

Institutions reported by the source

International Islamic University Malaysia

Reported affiliation countries

MY

Documentary abstract — original language

This study develops an integrated framework harmonising Ibn Ashur's maqāṣid al-Shariah with governance principles to address Shariah-compliance challenges faced by Small and Medium Enterprises (SMEs). Despite constituting between 80-99% of businesses in Muslim-majority countries, SMEs struggle with inconsistent Shariah interpretations, operational complexity, and limited access to Shariah-compliant financing. Using qualitative methodology, the study conducts systematic textual and comparative analysis of maqasid literature and governance frameworks to identify key alignments and practical applications. The research aligns five key objectives (maqāṣid) in financial transactions (safeguarding wealth, transparency, circulation of wealth, economic stability, and justice) with contemporary governance principles to propose a practical, tiered implementation framework tailored to different SME categories—micro, small, and medium enterprises. Findings demonstrate that this integration enhances Shariah-compliance while offering SMEs pragmatic tools to navigate ethical and operational demands. The study highlights the role of digital technologies in streamlining implementation, particularly for resource-constrained businesses. It addresses a critical gap between theoretical Islamic finance principles and their practical SME implementation, advocating for standardised frameworks and collaborative stakeholder efforts to support Shariah-compliant SME growth. The research contributes to existing literature by providing actionable governance guidelines for enterprises with limited resources and demonstrating that Shariah compliance and good governance can mutually reinforce business performance and ethical integrity.

Identifiers

OPENALEX

https://openalex.org/W4414403947

DOI

10.31436/ijfus.v9i3.408

Documentary context

Documentary family

article

Source-reported types

article

Publishers

TechKnowledge General Trading

Entity mentions are not evidence of legal recognition. Jurisdiction studied is separate from author affiliation country.

Sources

OpenAlex · Record 1

• Document · https://doi.org/10.31436/ijfus.v9i3.408

Documentary status

Relevance pending

Library

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