The purpose of this paper is to demonstrate a new Islamic legal theory adopted by contemporary Islamic financial institutions.
This research uses a qualitative methodology through a single/holistic case study design. It selects Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Shari’ah Standard No. (29): “Stipulations and Ethics of a Fatwa in the Institutional Framework” to showcase the official conceptualization of a new Islamic legal theory.
The findings reveal that the new Islamic legal theory includes three phases: core sources of Islamic law (with chronological significance), analytical diversification of classical tertiary sources of Islamic law (without chronological significance) and contemporary uṣūlī tools.
This research is limited to the views expressed by AAOIFI’s Shari’ah Supervisory Board, as expressed within AAOIFI’s Shari’ah Standard No. (29): “Stipulations and Ethics of a Fatwa in the Institutional Framework.”
This research may be one of the first research papers dedicated to officially conceptualizing a new Islamic legal theory within the Islamic financial empirical arena.
