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Abstract

This study delves into the conceptualization and interpretation of Shirkah (partnership) and Muḍārabah (profit-sharing) in the economic thought of Muftī Taqī ‘Usmānī, a leading contemporary scholar in Islamic finance. As one of the foremost authorities on modern Islamic jurisprudence, Muftī ‘Usmānī has played a pioneering role in reshaping classical Islamic commercial law to meet the needs of the modern financial system without compromising on Sharī‘ah principles. This paper critically examines how he has articulated the frameworks of partnership and Muḍārabah within the broader context of Islamic banking and finance.
The study explores key features of these contracts in Muftī ‘Usmānī’s writings, including conditions for validity, profit-loss sharing mechanisms, risk distribution, and ethical boundaries. It also evaluates his responses to contemporary challenges, such as capital protection, agency conflicts, and the risk of Sharī‘ah non-compliance in institutional practices. Through a systematic review of his fatāwā, academic publications, and policy contributions to Islamic financial institutions, this research identifies a consistent methodology that blends fidelity to classical jurisprudence with practical adaptability. The findings suggest that Muftī ‘Usmānī’s interpretations offer a viable model for integrating traditional Islamic principles into modern economic structures, promoting both justice and economic efficiency. This paper contributes to the growing body of scholarship that seeks to bridge the gap between Islamic legal theory and contemporary financial realities, offering insights for scholars, practitioners, and institutions committed to authentic and sustainable Islamic finance.