Halal Financing in the COVID-19 Pandemic: Analysis of Rukhṣoh on Halal Transactions

Halal (permissible) covers wājib, mandūb, mubah, and makrūh categories in the rulings of Islamic jurisprudence based on the personal situation of the subject matter. The outbreak of COVID-19 across the globe has triggered the quest for the scope of halal financing and management. Does the pandemic situation is enough justification for allowing financing of some non-permissible activities? This study aims to explore the principles of Rukhṣoh in Islamic jurisprudence and its implication on the scope of funding halal transactions amidst the COVID-19 pandemic. This study is mainly qualitative-based research. The study employs a doctrinal approach in exploring the principles of Rukhṣoh and Azīmah and their contemporary application to the scope of halal financing in the context of COVID-19. The study identifies the general scope of halal (permissible) within the contexts of wājib, mandūb, mubah, and makrūh. The result further suggests that even though Haram (forbidden) might be granted the Rukhṣoh based on specific circumstances, the Islamic jurists differ in giving it the equal status within the halal scope except that there is a waiver of punishment on the Mukhalaf (accountable person). The study out that many people might have violated contractual obligations because of the COVID-19 pandemic. Thus, Islamic financial institutions should apply the Quranic inunction of "If the debtor is in difficulty, grant him time till it is easy for him to repay. But suppose ye remit it by way of charity. In that case, that is best for you if ye only knew" [Al-baqarah: 280] as respite and benevolence on loans to promote financial recovery of Muslim economy in the pandemic. Although there are studies on halal financing, this study is a novel contribution to the contemporary application of the concept of Rukhṣoh and Azīmah to halal financing amidst the COVID-19 challenges.