ARTICLE
17 April 2025

Contemporary Applications And Challenges In Islamic Law: Commercial, Family, And Criminal Perspectives

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Khurana and Khurana

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The face of modern Islamic commercial law offers opportunities and challenges. Certainly, the global financial and commercial marketplace presents a challenging backdrop for Islamic principles...
India Criminal Law

CONTEMPORARY APPLICATION AND CHALLENGES IN ISLAMIC COMMERCIAL LAW

The face of modern Islamic commercial law offers opportunities and challenges. Certainly, the global financial and commercial marketplace presents a challenging backdrop for Islamic principles in this regard. Fundamental premises – the prohibition of riba (interest), gharar (excessive uncertainty), and maysir (gambling) – have demanded all the creativity in the financial instruments and business structures created.

The Islamic banking sector has surpassed $2 trillion in global financial assets by 2021. The development of Sharia-compliant financial products has advanced as a testimony to the adaptability of Islamic legal principles to the needs of modern economics. Such contracts can include Murabaha, which is cost-plus financing, musharakah or partnership, and ijara, or lease, structured to provide alternative products to conventional finance while maintaining Islamic principles.

The prohibition of riba has been the basis for developing profit-and-loss sharing mechanisms stress-ing risk-sharing and ethical investment, and challenging the conventional debt-based financial system to provide new models for economic development. While ensuring that investments comply with letter and spirit with Islamic law, Islamic financial institutions have gained expertise in advanced screening mechanisms in excluding industries involving prohibited activities but at the same time promoting socially responsible investment.

The emergence of Islamic fintech constitutes another frontier of development in Islamic commercial law. Scholars will now have to advance their discussions on the ways in which digital investment opportunities, crowdfunding, and peer-to-peer lending through Shariah-compliant channels redefine traditional principles on the digital landscape. Issues about the formation and enforceability of contracts under Islamic law have been raised by the advent of smart contracts and blockchain technology.

FAMILY LAW AND GENDER ISSUES IN MODERN ISLAMIC JURISPRUDENCE

Islamic family law is one of the enduring and widely employed aspects of Shari'at law as pertains to modern Muslim societies. The advent of modern applications of Islamic family law has had a very significant evolution, especially with regard to gender equality and adaptation to changing norms but without deviation from the religiously authentic.

Reinterpretation on marriage in Islamic law has greatly occurred in the modern context. Sacred contract has now been deepened as a notion on marriage yet adapted into the social realm of today. Many Muslim-majority nations have instated reforms requiring marriage contracts in written form, minimum marriage age, and mutual consent. Polygamy, now permitted under classical Islamic law, has been heavily limited in many jurisdictions through legal restriction. Countries like Tunisia have completely prohibited it; whereas Morocco and Malaysia impose strict conditions, requiring judicial approval and proof of financial capacity before contracting such a marriage.

The issue of divorce rights has been at the heart of modern reform attempts. Under classical Islamic law, the husband enjoys unilateral divorce (talaq), while the wife has to seek the intervention of judicial authorities for khul' (divorce by mutual consent) or faskh (judicial dissolution) of nikkah marriage. Hence, the attempt has been made to balance and modernize all these laws. Egyptian Law No.1 of 2000 gave enhancements to women's rights to khul' by abolishing the requirement to obtain the consent of the husband. Similarly, Pakistan's Muslim Family Laws Ordinance, 1961, required that divorces be carried out under court supervision, with mandatory reconciliation of the parties and notification procedures.

Distribution of child custody and guardianship was rethought in light of modern principles of child welfare. While classical Islamic laws generally give custody to mothers during early childhood, while being underscored by fathers in guardianship, modern interpretations have found child utmost interest to prevail. For example, in the law of custody of children in Malaysia, the courts can rely, indeed, on the welfare of children as the most prominent consideration, even if this contravenes the traditional custody arrangement.

Across the board, inheritance law is one of the hardest areas for reform, given that Quranic provisions regarding inheritance shares are believed to be conclusive by most scholars. However, with the development of modern schools, certain mechanisms are introduced that yield fairly equitable results while still remaining within the boundaries of religion. Some jurisdictions have brought in mandatory wasiyyah (will) systems that entitle a will to be formulated allowing supplementary charities to more disadvantaged heirs. The basic essence of an obligatory bequest (wasiyyah wajibah) has been conferred in legislations of Egypt and Syria mainly to cater to the interests of orphaned grandchildren who are confined from inheritance.

Financial rights of women with respect to marriage have been gaining ground in contemporary Islamic legal discourse. Traditional views underpinning the concept of mahr (dower) have been bolstered by legal requirements for its recording and enforcement. Modern courts have upheld a woman's right to independent property and earnings against cultural practices that may limit such rights. The concept of post-divorce compensation, or mata'a, has been extended in many jurisdictions to offer additional financial protection to divorced women.

The participation of women in Islamic jurisprudence has indeed changed through time. While classical sources severely limited their testimony in certain legal occasions, modern interpretations, especially in those countries like Malaysia and Indonesia, have for the most part established total legal capacity for women. In the same place, other women are becoming judges in Islamic courts there, which breaks in various ways the traditional limits set upon women in the legal system. Moreover, women have gradually taken part in Islamic legal scholarship and interpretation which has generated new insights pertaining to gender areas in law.

CRIMINAL LAW AND HUMAN RIGHTS IN ISLAMIC LEGAL FRAMEWORK

The implementation of Islamic criminal law in the modern era presents complex challenges in reconciling traditional legal principles with contemporary human rights standards and criminal justice practices. This area has generated significant debate among scholars and practitioners regarding appropriate methods of implementation and interpretation.

The classification of crimes in Islamic law into hudud (fixed penalties), qisas (retaliation), and ta'zir (discretionary punishment) provides a sophisticated framework for addressing criminal behavior. Modern interpretations have focused particularly on the role of ta'zir in developing contemporary criminal justice approaches. This category's flexibility allows for the incorporation of modern penological principles while maintaining Islamic legal authenticity.

Hudud offenses, which carry fixed penalties prescribed in religious texts, have been the subject of extensive scholarly reconsideration. Contemporary scholars have emphasized the strict evidentiary requirements and numerous conditions that must be met before hudud penalties can be applied. The principle of doubt (shubha) in Islamic criminal law has been expanded to provide additional procedural protections for defendants. Some jurisdictions, like Malaysia and Pakistan, have maintained hudud offenses in their legal codes while rarely implementing the traditional punishments, effectively creating a deterrent system that emphasizes rehabilitation and reform.

The concept of qisas (retaliation) in cases of bodily harm has been adapted in modern legal systems through the principle of diyah (compensation). Many jurisdictions have developed structured compensation systems that provide alternatives to retaliatory punishment while ensuring victims' rights are protected. The emphasis on reconciliation and compensation in Islamic criminal law has influenced the development of restorative justice approaches in several Muslim-majority countries.

Procedural rights in Islamic criminal law have received increased attention in modern implementations. The traditional principles of presumption of innocence, right to legal representation, and protection against self-incrimination have been reinforced through modern legal reforms. Countries implementing aspects of Islamic criminal law have generally incorporated extensive procedural safeguards, including appellate review and legal aid systems.

REFERENCES

  1. Wael B. Hallaq, AN INTRODUCTION TO ISLAMIC LAW (Cambridge Univ. Press 2009)
  2. Werner Menski, COMPARATIVE LAW IN A GLOBAL CONTEXT: THE LEGAL SYSTEMS OF ASIA AND AFRICA (Cambridge Univ. Press, 2d ed. 2006)
  3. Ziba Mir-Hosseini, ISLAM AND GENDER: THE RELIGIOUS DEBATE IN CONTEMPORARY IRAN (Princeton Univ. Press 1999)
  4. Abdullahi Ahmed An-Na'im, Islamic Law, International Relations, and Human Rights: Challenge and Response, 20 CORNELL INT'L L.J. 317 (1987)
  5. Frank E. Vogel, The Contract Law of Islam and of the Arab Middle East, in INTERNATIONAL ENCYCLOPEDIA OF COMPARATIVE LAW: CONTRACTS IN GENERAL 77 (Arthur von Mehren ed., 2006)
  6. Jasser Auda, Maqasid al-Shariah: A Beginner's Guide, 14 INT'L INST. OF ISLAMIC THOUGHT 1 (2008)
  7. Mohammad Fadel, Islamic Law and American Law: Between Concordance and Dissonance, 57 N.Y.L. SCH. L. REV. 231 (2012)
  8. Noel J. Coulson, Muslim Custom and Case-Law, 6 DIE WELT DES ISLAMS 13 (1959)
  9. Tunku Sofiah Jewa, The Evolution of Islamic Law and the Development of Financial Products, 29 J. ISLAMIC BANKING & FIN. 35 (2012)
  10. Danial Latifi & Anr v. Union of India, (2001) 7 SCC 740 (India)
  11. Mohammad Ahmad Khan v. Shah Bano Begum, AIR 1985 SC 945 (India)

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