Mohd Hawary bin Saadon 2011680686 UNDERSTANDING THE CONCEPT OF MASLAHAH AND ITS PARAMETERS WHEN USED IN FINANCIAL

TRANSACTIONS Mohamad Akram Laldin Laldin, M.A. (2010), Understanding the concept of maslahah and its parameters when used in financial transaction, ISRA International Journal of Islamic Finance, Vol.2, issue 1, pp 61-84.

Executive Summary The article of Understanding the concept of maslahah and its parameters when used in financial transaction is a good article because it consist of many information of the maslahah in implementation of Islamic financing and it is clearly given the information on it. The juristic opinion on maslahah at this article are supported with other jurist and also in line with other research regarding on maslahah in Islamic financing. Eventhough it is good article, but it still have lack of information regarding on its application to the Islamic finance. The author need to add more examples on related component of the capital market, banking and takaful rulings to become this article more interesting and can provide clear information to the readers. As to support the more examples, the article can related with other research in sukuk especially that arise many issues on it. Besides that, in order to provide clear information of the history that related on maslahah in application of Islamic finance, author need to briefly given the simple story on history of distribution of ghanimah after the battle of Hunayn. Lastly, it is a good conclusion given by the author that restate and summarize main point of the article.

Article Critique The implementation of Islamic finance has developed more than 3 decades. Throughout its history, beside its successes, it assumed much controversies and criticism in its run to win the hearts of the Muslim clients. From the paper Understanding the concept of maslahah and its

parameters when used in financial transaction that wrote by Mohamad Akram Laldin, I am absolutely agree on that paper because it will provide better understanding on the concept of maslahah in implementation of Islamic finanancial transaction like in capital market, banking and takaful ruling. The author has clearly described the definition of maslahah, relationship between maqasid and maslahah, legitimacy of maslahah, and classification of maslahah that consist of five approach. In the article also clearly stated the juristic opinions on maslahah and the parameters for maslahah in financial transaction. In the parameters for maslahah, the author supported with many scholars and jurist that have discussion on it condition of maslahah. The author discussed on the principles that formulated from al-Ghazali, al-Shatibi, Ibn Ashur, Dr. Said Ramadan alButi and from Islamic Academy. The previous research that have done by Asyraf Wajdi (2007, 2010) also in line with the condition given in that article. Besides, most of the jurists agreed that the application of maslahah should conform to Maqasid al-Shariah and application of maslahah should not contradict with clear text of the Quran or Sunnah or the principles upheld by the Quran and Sunnah. Otherwise, there is lack of information on application of maslahah in Islamic finance. The author should make true understanding on the application of the principle of maslahah. In rulling of capital market, author only stress on sukuk and stock even though there are many of Shariah compliant securities like Islamic unit trusts, Shariah indices, call warrants, crude palm oil futures contract and others. By giving clear examples of the other type on capital market, it will increase the awareness and understanding on the maslahah in those elements in capital market. Clients of Islamic capital market especially Muslim could understand more in solving issues in order to secures a benefit or prevents harm and at the same time, harmonious with the aims and objective of Shariah. From views of Asyraf Wajdi (2009), Sukuk as one of the component of Islamic capital market have invoked many Shariah issues and controversies. The examples given on the application of maslahah in capital market rulings sees that there are many issues on sukuk. From the application of maslahah on sukuk, it will see that Islamic banking and finance must ensure that all of its transactions are Shariah compliant not only on its forms and legal technicalities but the most

important is the economic substance which is concern on the public interest and also the greater implication to the realization of Maqasid al-Shariah. The author has told that Islamic finance has been experienced from the Prophets distribution of ghanimah after the battle of Hunayn. This application become as practice that being followed by his companions. Otherwise, it is simple example given by the author because he only wrote on Prophets distribution of ghanimah without telling the story behind that history. The simple example will let readers asking on what happen on that time and made lack understanding of the jurnal.From the story on that history, ghanimah which enemy properties that come into the hands of Muslim after war (Munawwar Iqbal & Tariqullah Khan, 2004) is given to the Safwan bin Umayyah who are close to become Muslim (Yusof al-Qardawi). From the history, it is clearly related to the maslahah which Prophets concern on public interest and it will lead to non Muslim will attract to Muslim. From the conclusion given by the author, it is wholly related from the discussion on concept of maslahah and its parameters. The autor have restate and summarize of the seven of the main point of evidence for the reader. Even the author given simple conclusion from the points, but it will look interesting because will let readers easily understand what the article is discussed.

References Dusuki, A. W. (2010), Do equity-based Sukuk structures in Islamic capital markets manifest the objectives of Shariah?, Journal of Financial Services Marketing Vol. 15, 3, 203214 Dusuki, A. W., & Abozaid, A. (2007). A Critical Appraisal on the Challenges of Realizing Maqasid al-Shariah in Islamic Banking and Finance. IIUM Journal of Economics and Management, 15(2), 143-165.