Corporate Governance from the Islamic Perspective

This article investigates corporate governance from an Islamic perspective and offers a definition of Islam as well as the sources that underpin Islamic law: i.e. , the Qurʾān and Sunnah as primary and ijmāʿ (consensus) and qiyās (analogical reasoning) as secondary sources. Islamic objectives are highlighted by focusing on māl (wealth) and tawḥīd (Unity/Oneness of Allah). The Islamic vision on values is appraised by illustrating accountability ( ḥisāb ), justice ( ʿadālah ), consultation ( shūrā ), integrity ( amānah ), truthfulness ( ṣiddiq ), sincerity ( ikhlāṣ ), intention ( niyyah ), and brotherhood ( ukhuwah ). However, points of view on models of corporate governance differ greatly between Islamic and Western (Anglo-American) law. It has been argued that corporate governance from an Islamic perspective does not represent a modern model. This article discusses the advantages it has to offer for Saudi corporate governance.