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Ijtihad meaning

What does Ijtihad mean?
Ijtihad is the method of independent juristic reasoning used by qualified Islamic scholars (mujtahids) to derive rules from the Qur’an, Sunnah and recognised juristic methodologies (for example qiyas and ijma) where no clear text or settled precedent exists. It explains why Sharia opinions (fatwas) can differ between schools and evolve over time. The term is not defined in UK or Irish legislation or case law. It is a descriptive concept that is addressed through expert evidence or contractual drafting in matters engaging Islamic law. In practice it most often arises in: - Islamic finance (Sharia supervisory board opinions, product structuring, representations of Sharia compliance, and “change in Sharia” clauses). - Arbitration or ADR conducted by reference to Sharia-based rules agreed by the parties. - Charity law for Islamic charities and zakat administration. - Family and succession planning (for example, wills drafted by reference to Islamic heirship rules). Courts in England & Wales, Scotland, Northern Ireland and Ireland do not apply Sharia as domestic law, but considers ijtihad-based opinions as matters of fact where relevant. Its practical significance is the recognised plurality and fallibility of scholarly views, affecting certainty, risk allocation and due diligence in transactions and disputes.
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View the related Practice Notes about Ijtihad

PRACTICE NOTES
UK Banking, Finance, Capital Markets, Derivatives and Insolvency Law Glossary including Islamic finance

Banking & Finance glossary A Auditing and Accounting Organisation for Islamic Financial Institutions (AAOIFI) The foremost Islamic, international, autonomous, independent, not-for-profit corporate body that develops and issues accounting, auditing, governance, ethics and Shari’ah benchmarks and standards for Islamic Financial Institutions (IFIs) and the wider Islamic finance sector. Founded in Bahrain in 1991, it is backed by a number of institutional members across more than 45 countries, including central banks and regulatory authorities, financial institutions, accounting and auditing practices, and legal firms. Its pronouncements are currently applied by leading Islamic financial institutions across the world and have advanced a progressive and gradual harmonisation of global Islamic finance practice. It also delivers professional qualification programmes—notably Certified Islamic Professional Accountant (CIPA), Certified Shari’ah Adviser and Auditor (CSAA), and the corporate compliance programme—in efforts to strengthen the industry’s human capital and governance frameworks. For further details, see Practice Note: Key participants in the Islamic finance industry—Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). Acceleration Acceleration is the formal action...

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