Reforming the Methodology of Product Development in Islamic Finance

The current methodology of product development in Islamic finance has failed to reflect the productive nature of Islamic economics. This is evidenced by a number of current products being substantially undistinguishable from their conventional counterparts according to the commonly-held views. This study discusses the reform needed to the existing methodology of product development in order to structure genuinely Shariah-compliant products which reflects the spirit of the Shariah, with a special emphasis on the role of Fiqh.