Debt Financing Vs. Equity Financing in the Context of Maqasid Al-Shari'ah in Islamic Finance

Abstract

Islamic finance is a major part of global financial system that is expanding profligate. A deeper understanding by regulators, policymakers, academics, and practitioners has been aided in growing significance of Islamic finance, especially in emerging countries in the Middle East, Asia and even Europe. This study provides a concise examination of Islamic finance's, origins, guiding principles, and practices. Islamic finance is seen as being a component of an Islamic economic system that has a social focus at its core, Its Maqasid-i-Shari'ah. Which should emerge in economy as promoting development and justice in the system's overarching objective. This signifies that in addition to surpassing legal criteria, an Islamic financial system needs to address a society's social demands of fairness and equality. There is a widespread Maqasid-i-Shari'ah, need to be present in outcomes of Islamic financial system. However, there isn't any particular study that looks at how Maqasid-i-Shari'ah may be used for financial goods.