The Fatāwá in Islamic Banking and Financial Industry: Explaining the Use of Ḍarūrah (Dire Necessity) and Ḥājah (Need) Maxims.

Muhammad Abubakar Siddique, Abdul Rashid
Published Online: December 2019

Sharīʿah objectives in relation to people are to secure interest of all and avert harm/hardship from them. These objectives have been taken care of in different Sharīʿah rulings. Regarding economics and finance, the principle of prevention of harm has been especially observed in the sphere of various Islamic contracts and business transactions. This study focuses on the use of maxims relating to ḍarūrah (dire necessity) and ḥājah (need), which redress the harm from people. Based on these maxims, Sharīʿah scholars / committees have often been issuing the license of legality to several Islamic banking and financial transactions and products. The objective of the paper is to explain whether ḥājah and ḍarūrah are amalgamated concepts, and to find out the extent to which the maxims of ḥājah and ḍarūrah are being exploited in Islamic banking transactions and products. In so doing, the paper, through a literature review, differentiates ḥājah from ḍarūrah. Analyzing the transactions and products as being used in Islamic finance industry, paper asserts that ḥājah, rather than ḍarūrah, is being entertained, and exploited to some extent. The paper also puts forward some suggestions for the stakeholders of Islamic banking and financial industry. .


Sharīʿah legitimacy, Ḍarūrah, Ḥājah, Islamic banking, Islamic finance products