Issues in Regulating Free Market in Islamic Economics: Some Essential Notes on Maqhasid Sharia Implication

Akhmad Affandi Mahfudz, Universiti Utara Malaysia

Purpose

This study is an attempt to unveil the issue of free market practices in Islamic economics whilst examining its implication on Maqhasid Sharia (objective of Sharia) as parameter

Design/Methodology/Approach

This paper employs library research derived from the pedigree of Islamic economics and therefore, it is considered as qualitative research. However, some equation models and graphs were undertaken to strengthen the analysis.

Finding

This paper found that financing tools, pricing, monetary policy and the role of government as muhtasib as evidences of unresolved issues in regulating free market in Islamic economics that applied in country with majority muslim population. Meanwhile, the concept of maslahah, iqta, al-hisbah, regulating public and private sector as major implication of Sharia issues that not in line with Maqhasid Sharia as parameter.

Research Limitation/Implication

In a country with majority muslim population has different policy with respect to the application of free market that might wreak Maqhasid Sharia issues. As result, the application of free market policy varies accordingly.

Practical Implication

The findings reveal that quite a few challenges lie ahead in applying Maqhasid Sharia in majority of muslim population. This needs to be taken promptly by each country with majority of muslim population. This paper also redefines the concept of regulating free market in Islamic economics as a way out of economic paradigm to capitalism.

Originality/Value

This paper is one of few studies related to free market application which use Maqhasid Sharia as parameter .

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