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Objectivising the Social Justice Paradigm in Islamic Finance: [An Apraisal]

Posted by admin
December 29th, 2016

By Abdul Azeez Maruf Olayemi, Siti Mashitoh Mahamood, Marifatul Haq Yasini, Ahmad Hidayah Buang

Abstract

Islamic finance is hyposthasised as the avatar of egalitarianism, equity and the zenith of social justice. Nevertheless, some scholars argue that the social justice objective of the Islamic finance is idealistic. This paper examines the extent to which the acclaimed social justice objective is innate to the services of the institutions. The focal areas include the provision of benevolent loan, corporate social responsibility, the duty of the payment of Zakat, extermination of debt based instruments, total elimination of interest, gambling and uncertainty from the financial system. However, is it concluded that, although, Islamic finance strives to realize its social justice objective, nevertheless, the institution needs to lift the bar of its acclaimed financial egalitarianism further higher.

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