Ijtihad
اجتهاد
Pronunciation: ij-tee-HAHD
Independent legal reasoning by a qualified scholar to derive a ruling where the texts are silent or unclear.
Definition
The disciplined effort of a qualified jurist to derive a legal ruling from the sources for a question not settled by explicit text or consensus. Modern finance is largely a field of ijtihad, because stock markets, fiat money, insurance, pensions, and cryptocurrencies did not exist in the classical period.
Ijtihad is exercised individually by scholars issuing fatwas and collectively by bodies such as the OIC International Islamic Fiqh Academy, AAOIFI's Shariah Board, and national fatwa councils, whose collective rulings carry more weight than any single opinion.
Related Terms
Ijma'إجماع
Scholarly consensus: a ruling on which qualified jurists of an era have all agreed, making it binding.
Qiyasقياس
Analogical reasoning: extending an established ruling to a new case that shares its effective cause.
Fatwaفتوى
A religious ruling on a specific matter issued by a qualified Islamic scholar.
Shariah Boardهيئة شرعية
A committee of qualified Islamic scholars that certifies the Shariah compliance of financial products.
Madhhabمذهب
A school of Islamic law; the four main Sunni schools often rule differently on financial questions.
AAOIFI
The primary international standard-setting body for Islamic finance.
Further Reading
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Ijtihad (اجتهاد) - Independent legal reasoning by a qualified scholar to derive a ruling where the texts are silent or unclear. The disciplined effort of a qualified jurist to derive a legal ruling from the sources for a question not settled by explicit text or consensus. Modern finance is largely a field of ijtihad, because stock markets, fiat money, insurance, pensions, and cryptocurrencies did not exist in the classical period.
- Independent legal reasoning by a qualified scholar to derive a ruling where the texts are silent or unclear.
- Category: Governance
- Related: Ijma', Qiyas, Fatwa, Shariah Board, Madhhab, AAOIFI
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Last reviewed: 2026-10-01
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