Wealth distribution in Islamic finance: aligning with Maqasid al-Sharia

Islamic finance is rooted in the ethical and moral framework of Islam, emphasizing justice, fairness, and social welfare. One of its key aims is equitable wealth distribution to prevent its concentration among a privileged few. This aligns with the concept of Maqasid al-Sharia, the higher objectives of Islamic law, which include the preservation of religion, life, intellect, progeny, and property (Ibn Ashur, 1997). In Islamic economics, wealth distribution is not just an economic objective but a religious obligation that promotes socio-economic justice. The Qur'an and Sunnah strongly advocate wealth redistribution through mechanisms such as Zakat, Sadaqah, Waqf, and Qard al-Hasan (interest-free loans). Unlike conventional financial systems that often emphasize profit maximization, Islamic finance integrates these instruments to foster inclusive growth and reduce inequality. For instance, Zakat, mandatory 2.5% annual levy on qualifying wealth, ensures systematic support for the poor and needy (Chapra, 2008). It plays a direct role in alleviating poverty and redistributing income within society.