The Fiqh Maxim "Kharāj bil-Damān" as a Key Characteristic Distinguishing Islamic Debt financing from Ribā Financing

Abstract

This paper is a critical review of the research presented by Muhammad Anas Zarqa on the rule proposed by Sami Al-Suwailem to distinguish between lawful Shariah-based commercial loans and usurious loans. This subject is of utmost importance, given the ongoing debate on whether there is a true difference between the financing models proposed by Islamic banks and the usury-based loaning models used by conventional banks. Furthermore, many Muslim economists and jurists tend to question the Shariah-conformity of debt-based financing products, such as murābaha, ijārah, salam, and istisna, with the provisions of Sharia because of what they perceive to be a significant similarity between the two systems in terms of objectives and outcomes. It is, therefore, crucial to devise an objective scientific rule that differentiates them. This paper examined Dr. Muhammad Anas Zarqa's research paper and has come to a conclusion that would enhance the accuracy, consistency, and integrity of the proposed rule.