We are pleased to announce that Dr. Gapur Oziev, Managing Director of the IKI Academy, was invited to participate in the 4th CIS-Islamic Banking and Finance Forum, titled "Shaping the Future of Islamic Finance in CIS Countries," organized by AlHuda Centre of Islamic Banking & Economics (CIBE) in Tashkent, Uzbekistan.
Dr. Oziev delivered a speech titled "The Litmus Test: Ensuring Sharia Fidelity in Islamic Banking and Finance," highlighting the following key points:
1. While Islamic finance grows, a continuous "litmus test" is crucial for authentic Sharia compliance. There is a risk of superficial adherence rather than deep Sharia fidelity. This often manifests in institutions copying existing products and services from other "Islamic" banks without rigorous scrutiny, simply because they carry an "Islamic" label. Sharia fidelity is more than just avoiding prohibitions; it is about aligning with the spirit and objectives (Maqasid) of Sharia, promoting justice, welfare, and ethical conduct.
2. In many cases, the concept of Dharurah (necessity) is often conflated with opportunistic Talfiq or, even worse, Hiyal Shar'iyah (legal tricks), leading to a potential deviation from the true path within the Islamic banking and finance industry. Sharia does recognize the concept of Dharurah (necessity), based on the legal maxim: "Necessities make the prohibited permissible." However, to prevent this maxim from being misused to justify what is obviously prohibited, Muslim scholars established a sub-maxim: "Necessities are assessed proportionately." In other words, only under genuine, limited, unavoidable, and dire need it is permissible to allow what is originally impermissible.
3. Similarly, Sharia recognizes Talfiq (combination/gathering) if it is based on sound reasoning and evidence, but it rejects opportunistic combinations irrespective of the strength or weakness of the Shariah evidence. Finally, legal tricks (Hiyal Shar'iyah), such as Bay' al-Einah (sale and repurchase) and Bay' al-Dayn (sale of debt), are perhaps the most notorious instruments used in the Islamic banking and finance industry. They serve to justify obvious usury (Riba), disguising the usurious aspects of interest-based loans for personal and corporate financing, and facilitating the sale of liabilities.
