The Classical and Modern Juristic Methodologies and Their Application in Islamic Finance

Ijtihad is the primary tool to keep shari?’ah updated in each era and time. The jurists in every generation have exerted their full abilities to guide the ummah about the matters they faced. These ijtiha?d approaches have changed concerning the time and generation’s needs. This study aims to analyze the differences between classical and modern juristic methodologies and how modern fiqhi bodies in Islamic finance benefit from both. The methodology used in this study is a library literature survey and content analysis. The results showed that the classical approaches have well-established procedures and principles of ijtiha?d confined to specific doctrines, while modern approaches benefit from all schools with less detailed procedures. So the classical approaches can be termed as taql?d (following a specific doctrine) centered while modern approaches as talfi?q (not following a specific doctrine) centered. Modern fiqhi bodies in the Islamic finance industry are also using talfi?q approach. Applying this approach, modern scholars of the Islamic finance industry have benefited from all the schools of thought to achieve the shari?’ah best practices that suit the industry's needs. The study concludes that such practice is not against shari?’ah as it is the need of modern times; however, it should be done through a collective ijtih?d approach and with necessary restrictions.