Shariah
شريعة
Pronunciation: shah-REE-ah
Islamic law derived from the Quran and Sunnah — the foundation of all Islamic financial principles.
Definition
Islamic law derived from the Quran (holy book) and Sunnah (practices and sayings of Prophet Muhammad, peace be upon him). Governs all aspects of Muslim life including financial transactions, contracts, and business dealings.
In finance, Shariah compliance means adhering to principles that prohibit interest (riba), excessive uncertainty (gharar), gambling (maysir), and investment in prohibited industries. Shariah is interpreted and applied by qualified scholars through the disciplines of fiqh (jurisprudence), and financial products are reviewed by Shariah boards to ensure compliance.
Related Terms
Fiqh al-Muamalatفقه المعاملات
Islamic jurisprudence governing commercial and financial transactions.
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.
Maqasid al-Shariahمقاصد الشريعة
The higher objectives of Islamic law — preservation of faith, life, intellect, lineage, and wealth.
Further Reading
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Shariah (شريعة) — Islamic law derived from the Quran and Sunnah — the foundation of all Islamic financial principles. Islamic law derived from the Quran (holy book) and Sunnah (practices and sayings of Prophet Muhammad, peace be upon him). Governs all aspects of Muslim life including financial transactions, contracts, and business dealings.
- Islamic law derived from the Quran and Sunnah — the foundation of all Islamic financial principles.
- Category: General
- Related: Fiqh al-Muamalat, Fatwa, Shariah Board, Maqasid al-Shariah
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Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-07-01
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