Middle-East Journal of Scientific Research 13 (Research in Contemporary Islamic Finance and Wealth Management):

75-84, 2013; ISSN 1990-9233

© IDOSI Publications, 2013
DOI: 10.5829/idosi.mejsr.2013.13.1885

The Objective of Islamic Economic and Islamic Banking in

Light of Maqasid Al-Shariah: A Critical Review

Mustafa Omar Mohammad and 3,4Syahidawati Shahwan

1,2

1
International Institute of Islamic Banking and Finance (IIiBF)
Kulliyyah of Economic and Management Sciences International Islamic
2

University Malaysia (IIUM), 51800 Damansara Campus, IIUM

3
Faculty of Economics and Muamalat (FEM)
4
Islamic Finance and Wealth Management Institute (IFWMI)
Universiti Sains Islam Malaysia (USIM), 71800 Nilai, Negeri Sembilan, Malaysia

Abstract: There has been variation in the objectives of Islamic economics. It is also assumed that the objectives
of Islamic economics are supposed to guide the objective of Islamic banking and Finance. Over the
years, there seem to be widening gap between the two Islamic disciplines in terms of their objectives. There are
hardly any studies that have formally documented the issues that have contributed to the widening gap
between the two disciplines and whether these differences are reconcilable. This paper therefore is a critical
survey of the literature on the subject, using Maqasid al-Shariah as a benchmark for examining the
variations and relationship between both disciplines. The issues of theories versus practice was given due
emphasis. The study, which is exploratory in nature, adopted content analysis and inductive method
to achieve its objectives aforementioned. The study has concluded from the observation of the selected
literatures that the five elements of Maqasid al-Shariah were fully observed in the objectives of Islamic
economics and Islamic bank. However, it is also found that the objectives of Islamic banks mostly aimed
towards profit-oriented entity rather than social-based entity. Thus, it is suggested that Islamic banks’
objectives should promote the objectives of Islamic economics thus inculcating as well Maqasid al-Shariah
in its holistic direction.

Key word: Islamic Economic Islamic banking and finance Maqasid Al-Shariah

INTRODUCTION Conversely, over the years, there seem to be

widening gap between the two Islamic disciplines i.e.
There has been variation in the objectives of Islamic Islamic economics and Islamic banking in terms of their
economics. The similar situation is also seen in defining objectives. There are hardly any studies that have
Islamic economics. The variation contributes to the formally documented the issues that have
multiplicity of dimensions and worldviews toward contributed to the widening gap between the two
economics as debated from the Islamic point of view. It is disciplines and whether these differences are reconcilable.
however noted that the boundary of debates, roundtables The lists of literatures are seemed to support both
and discussions are still within the mainstream of Islamic economics and Islamic Banking to be the
conventional economics [1, 2]. Islamic banking however, social functioning institutions. Thus, this study
is more concrete. Since it represents Islamic economics in contributes to the literatures as looking at the
the operational basis, Islamic banking seems to be well- reconciliation attempt and a humble effort to
structured and has a clear direction. It is thus assumed highlight the variations and relationship between the
that the objectives of Islamic economics are supposed to objectives of Islamic economics and Islamic Banking and
guide the objective of Islamic banking and finance. finance.

Corresponding Author: Syahidawati Shahwan, Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM),
71800 Nilai, Negeri Sembilan, Malaysia.
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Hence, the objective of this paper is to derive and The Objective of Islamic Economics: The objectives of
correlate the objectives of both disciplines; Islamic Islamic economics are supposed to guide the objective of
economics and Islamic banking using the Maqasid al- Islamic banking and Finance. Chapra [6] highlighted four
Shariah framework as designed by Muslims Maqasid goals of Islamic economics in prevailing the values and
engineers. holistic purpose of this system. The four are to achieve
the economic well-being within the framework of the moral
Islamic Economics norms of Islam, to uphold universal brotherhood and
Its Diversified Views and Objectives justice, to attain equitable distribution of income and to
Defining Islamic Economics: The direction of Islamic accomplish freedom of the individual within the context of
economics emerged since the prophetic period from the social welfare [6].
practice of Prophet Muhammad as an entrepreneur. His In selected major literatures, the objective of Islamic
life and the companions that surrounded within the economics is represented in many terms; some use the
parameter of this business culture as guided by the Holy word objective itself and some others use the word
Qur’an. Nevertheless, the formal discussion of the feature, principle, axiom and philosophy of Islamic
discipline is rarely discussed in the previous conventional economics. Based on the literature and due to different
economic system. approaches to project the objectives, the authors have
As a religion of the universe, Islam has brought divided the objectives of Islamic economics into
mankind to a crystallise function as human being; as philosophical-based objectives and operational-based
khalifah to worship Allah. In order to serve the objectives. The philosophical-based objectives are those
responsibility as a khalifah, Muslims practice a just objectives which relate to the inner dimension of Islamic
economic system to achieve the objective of Shariah, as economics in general and drive towards its infinite goals.
oppose to embracing economy as the object of the By adapting the aims of Islamic economics by Ahmad [7],
process [3]. Sa'ud [3] highlighted three basic conceptions the authors have similarly divided the philosophical-
of economics which indirectly relate the conception to the based objectives into fours themes namely as khilafah,
objective of economics in Islam. He opined firstly that tauhid, rububiyyah and tazkiyyah. According to Ahmad
Allah created body and soul for all creatures and [7], khilafah is the state of accountability of human as His
particularly to mankind which are similarly important in the vicegerent, tauhid is the state of human acknowledging
fulfillment of human biological life. However, the ultimate the unity and sovereignty of Allah, rububiyyah refers to
aim besides the fulfillment is purely worship-based human awareness that Allah is the provider and sustainer
bearing. The second concept is the oneness of of creation and tazkiyyah is the purification of human
God – Allah bearing objective. All the life and fulfillments soul. All these four themes represent a horizontal and
are mainly toward His blessings. And the third concept is vertical relationship between human and Allah as well as
comprehensive integration of various stems of Islamic human and his entire beings.
system of life. As simplified in Table 1, the philosophical-based
Islamic economics has been given multiple touches objective is more towards vertical type relationship
in defining it since this field is still considered as an which exists in the representation of the word “al-falah”.
immature discipline in terms of its conceptual In many contemporary writings on Islamic economics,
development. Kahf [1] who explores different definitions al-falah has been the general objective of Islamic
of Islamic Economics found that there is no single one economics [4, 8]. It covers the sphere of human activities
definition accepted unanimously by all Muslim for the sake of Allah and also accomplished through
economists. The definition is merely conventional-based fulfillment of the operational-based objectives. These
and Islamic economic is located as one of the wide objectives thus require a tangible assessment process to
branches of conventional economic. Kahf [1] however ensure its effectiveness and accomplishment. Due to the
cited Khan [4] and Zarqa [5] that gives different view in said awareness, Muslim thinkers also have underlined
defining Islamic economics which is purely Islamic-based different approaches in setting the goals of Islamic
and far from its counter-part influences. Some others economics as arranged in Table 1. Named as the
co-integrate Islamic economics into conventional one by operational-based objective its objectives are those
avoiding prefix Islamic to be put before the term measureable, testable outcomes and directly relate to
economics since for them the action will render the system human worldly activities. Based on the selected
to be recreated and starts from “A” rather than literatures, the authors have classified this objective into
developing the mature one. six themes namely as economic-based objective,

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Table 1: Summary of selected literatures

Operational -Based Objectives
----------------------------------------------------------------------------------------------------------------------------------------------------------------
Philosophical- 1: Economic- 2: Social- 3: Justice- 4: Self- 5: Harm- 6: State
based based based based based elimination participation
Sources Objectives Objective Objective Objective Objective Objective objective
Ahmad [7] To achieve al-Falah To eliminate To eliminate - - To eliminate -
in terms of Khilafah, poverty and injustice exploitation
tauhid rububiyyah deprivation from
and tazkiyyah society
Chaudhry [8] To achieve Al- Falah To provide basic To establish To obtain fair - To eliminate -
human needs, social justice and equitable exploitation
To achieve moral To promote distribution
and material brotherhood
development, and unity
To circulate wealth
Khan [4] To achieve To achieve To achieve - To achieve To achieve To achieve Falah in
falah that by Falah in economic Falah in the Falah in Falah as basic political survival
organizing the social context power and needs of
resources of honour ecological
the earth based balance
on cooperation
and participation
Maududi [9] To obtain harmony To obtain - To obtain - -
of moral & material cooperation individual
development and justice freedom
Chapra [6] To achieve al-Falah To achieve economic To achieve To achieve To achieve freedom - -
well-being &Islamic universal equitable of individual in
moral norms brotherhood distribution the context of
and justice of income social welfare
Zaman [10] To fulfil the internal To spend wealth To achieve - - - -
states of satisfaction and materials to cooperation
and motivations achieve this goal and harmony
To maximise
social interests
than personal

Table 2: Lists of Islamic banks in Malaysia social-based objective, justice-based objective, self-based
No Name Ownership (inner-self) objective, harm elimination objective and state
1 Affin Islamic Bank Berhad Local participation objective.
2 Al Rajhi Banking & Investment Corporation The literatures have shown that economic-based
(Malaysia) Berhad Foreign goals and social-aim [4, 6-10] are the major intents in the
3 Alliance Islamic Bank Berhad Local operational-based objective. Other objectives are those
4 AmIslamic Bank Berhad Local similarly important like justice [6, 8], self-respect and
5 Asian Finance Bank Berhad Foreign individual freedom [4, 6, 9], removing harm [4, 7, 9] and
6 Bank Islam Malaysia Berhad Local social participation in state’s order [4].
7 Bank Muamalat Malaysia Berhad Local
8 CIMB Islamic Bank Berhad Local
Islamic Banking and Finance: Objective Driven
9 Hong Leong Islamic Bank Berhad Local
Development: Islamic banking plays a part of the
10 HSBC Amanah Malaysia Berhad Foreign
operational roles of Islamic economics as commented by
11 Kuwait Finance House (Malaysia) Berhad Foreign
Prof. Dr. M.A Mannan on a paper by Hussein [2] in
12 Maybank Islamic Berhad Local
dealing with human behavior. Thus, there is an apparent
13 OCBC Al-Amin Bank Berhad Foreign
relationship between both disciplines in managing human
14 Public Islamic Bank Berhad Local
life. The issue of objective that lies within the framework
15 RHB Islamic Bank Berhad Local
of Maqasid al-Shariah solves a lot of contradictions.
16 Standard Chartered Saadiq Berhad Foreign
It should be noted that the issue of Maqasid al-Shariah
(Source: Bank Negara Malaysia (BNM) [19])
empowerment over Islamic Economics and Islamic

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Banking touches the methodology approach in looking at [13, 14]. Its establishment which was suggested by Yang
these two disciplines. Maqasid al-Shariah sets a Mulia Ungku Aziz had breached all the mainstreams and
standard worldview within the context of al-Qur’an and paradigms on the successful and workability of
al-Sunnah [11]. conventional banking. Tabung Haji then has opened a lot
Similarly, Islamic banking has been defined in various of opportunities for the establishment of other Islamic
connotations; most of the previous literatures did not Financial System in Malaysia such as Islamic Bank and
define Islamic banking terminologically but merely putting Takaful industries. From that initiative, in 1983 Bank Islam
general explanations and zooming at the historical aspects Malaysia Berhad (BIMB) was launched as the first
of Islamic banking. Khir et al. [12] similarly illustrates full-fledge Islamic Bank in Malaysia [12-14, 16] while
Islamic banking as an entity just like its conventional Tabung Haji still plays its important roles in managing the
function, i.e. profit making organization with some deposit of Muslims purposely for Hajj.
additional injunctions based on the revealed sources. Resulting from positive feedbacks from all Muslims
Haron and Azmi [13], Haron [14] however, points at and Non-Muslims, BNM extended the service in
Islamic banking underlying principles and philosophy in providing good and prudent Islamic banking facilities to
defining it; that is Shariah-ruled and ethical-based conventional banks by giving them award as Islamic
operation and activities with additional social function banking windows. The windows and its operation in terms
[15]. These definitions in short, implicitly highlight the of conventional and Islamic system were separated and
premier direction of Islamic banking; in which the Muslims are assured on the legality of their savings and
former is more to profit orientation and the latter is investments with the mandatory appointment of Shariah
Shariah-orientation. Advisor Committees in all Islamic banks and those
Islamic banking as modern corporate entity in the conventional banks with Islamic Banking windows. This
world history has emerged when Mit Ghamr Savings Bank system was formerly known as “Sistem Perbankan Tanpa
was established in the 1960’s with basic banking facilities Faedah” (SPTF).
such as deposit, investment, equity participation and Bank Muamalat was then established in 1999 [12, 16]
financing [12, 13, 16-18]. The glory of this purely Shariah- to again fulfill the demand and streamline the function of
based institution didn’t last long due to discouraging a full-fledge Islamic bank. With the second license given
support by the government in 1968 [16]. The world then to Bank Muamalat, it has empowered its function to
has evidently shown a great expansion of Islamic bank mainly on corporate products with appreciation as well on
from its first emergence in the 1960’s to booming fast in consumer products. Year 2004 has awakened the country
1970’s, 80’s and towards 20th century with thousands with the establishment of three foreign Islamic banks in
Islamic banks established with quite a number of Malaysia. The great name and rapport of Malaysia as
regulatory-affected bodies’ participation like Islamic Islamic Banking hub has brought Al-Rajhi Banking and
Development Bank (IDB), Accounting and Auditing Investment Corporation (Malaysia) Berhad, Kuwait
Organization for Islamic Financial Institution (AAOIFI), Finance House (Malaysia) Berhad and Asian Finance
International Islamic Financial Market and Islamic Bank Berhad to set up their subsidiaries in this country.
Financial Services Board (IFSB). These dual commitments In the current development, there are 16 Islamic banks
have boost up the industry in the international level and granted licenses to operate as full-fledge Islamic Banks
promote Islamic banking to be the alternative banking under the monitory of Bank Negara Malaysia. Table 2 lists
solution. all the Islamic banks currently in Malaysia.
In Malaysia particularly, Islamic banking
development that has gone through a maturity process Vision, Mission and Objectives of Islamic Banks:
and well engaged to the regulator i.e. Bank Negara Islamic banking direction is manifested via its visions,
Malaysia (BNM) provides a very strong hand for Muslims missions and objectives (VMO). As corporate entities,
to play major functions as end users with its products, statements of VMO are vital in banks’ strategic
Islamic concepts, operations, marketing and many other management and planning. The mission statements
roles as banks or financial institution. Historically, Islamic moreover promotes measurement of organizational
banking in Malaysia has developed vastly in a few excellence [20]. Nevertheless, there are scanty of works
important stages. The early development began with the focusing on vision and mission of the banks. The author
establishment of the first Islamic Financial Institution has also difficulty to find sufficient related writings on the
known as Muslims Pilgrim Board or Tabung Haji in 1963 aims, goals and objectives of Islamic banks. In general

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Islamic bank aims to avoid interest-based transactions, of the pillar. Hence, Islam has taken into account the
prohibited elements in Islam, to avoid unethical practices importance of “purpose” or in Arabic “maqsud” and in
and participate actively in achieving the goals and plural sense “maqaasid” to guide human life. A life
objectives of an Islamic economy [21]. If the objective without purpose and direction would be meaningless.
of Islamic bank is ascertained by the objective of Islamic The initial discussion on maqasid derived from a
economics, the aims thus are to archive al-falah [4] and in distinguished scholar Al-Shatibi who firstly introduced
the general achieving the Maqasid al-Shariah (objective the term in his well known publication of Al-Muwafaqat.
of Islamic Law) [22-27] in [28]. A recent study by He proclaimed that maqasid is observed in two situations;
Syahidawati [29] in different approach has listed three the objective of Shariah (the Law) and another is the
directions of Islamic banks in terms of their VMO towards objective of Mukallaf (the performer) [33].
achieving Maqasid al-Shariah, namely as God-related Maqasid al-Shariah is the basis of all human actions
VMO, Stakeholders’-related VMO and Institution and and activities. Maqasid al-Shariah which relies on
Stakeholders’-related VMO. However, the finding in this al-Qur’an and al-Sunnah is the guideline and
study shows that all five essential elements in Maqasid manifestation from deep understanding and awareness
al-Shariah as proposed by Mustafa [30] are only towards all devotional acts. Thus, there is a severe need
observed by Bank Islam Malaysia Berhad (BIMB) when to go back to the mainstream of Islam.
the VMO of the institutions were analysed qualitatively. Maqasid al-Shariah constitutes all the elements related
Despite of all the scarcity, Ebrahim and Joo [31] have to human nature (fitrah) [34]. It also stresses on the five
clearly listed three main goals of Islamic Banking namely main daruriyyat of human (Al-Dharuriyyat al-Khams)
as; “to implement the value system of the Qur'an and the namely as protection of life (Al-Hayah), protection of
Sunnah (tradition or practice of Prophet Muhammad religion (Al-Diin), protection of mind/intellect (Al-‘Aql),
(pbuh) in the realm of the Muslim socio-economic protection of wealth (Al-Mal) and protection of dignity
system, to foster the growth of the economy of Muslim (Al-Muru’ah). It also emphasises on the enlightenment of
nations by developing financial markets, institutions Maslahah and Mafsada [35] in human activities especially
and instruments and finally to dampen the shocks of in economics and Muamalat activities which are the main
extreme economic output by promoting risk-sharing discussion in this paper. In practical dimension, Mustafa
instruments whose payoffs are strictly contingent on the [30] has listed three specific Maqasid al-Shariah based
profitability of a firm or project at a micro level.” This on Abu Zaharah’s classification [36] known as educating
goals show a very clear direction of Islamic bank thus the individual (Tahdhib al-Fard), establishing justice
ensuring its correct track and direction. Association of (Iqamah al-‘Adl) and Public Interest (al-Maslahah).
Islamic Banking Institutions Malaysia (AIBIM) on the The issue of Maslahah is very broad and Al-Ghazali’s
similar action has also dedicatedly list the goals of Islamic theory of Maslahah [35] is greatly related to this study
banking as mainly “to gain socio-economic goals of Islam and its application in Islamic banks. Thus these two
namely as socio-economic justice, equitable distribution combinations of works will be the bases of this study and
of income and wealth as well as the stability in the value to be referred to in terms of vision and mission of Islamic
of money via mobilization and investment of savings and bank.
effective rendering of all services” [32] within Islamic Muamalat in general naturally has direct positive
banking principle. It is observed that both authors association towards Maqasid al-Shariah. Since Islam
promote socio-economic justice as the main aim of Islamic provides a green light for business activities as
banking thus rendering the term “justice” to be derived in many verses in Al-Qur’an, there must be
understood well within the circle of al-Qur’an and Maqasid al-Shariah implicitly or explicitly meant by the
al-Sunnah. Creator. A few literatures highlight the basic requirement
of Maqasid observation in economic development and
Maqasid Al-Shariah as a Framework: Maqasid Muamalat activities as enlightened by Chapra [37],
al-Shariah is the essence of human life. Without the Ateeq-ur and Muhammad Shahbaz [38], Jabir [39],
fulfillment of Maqasid al-Shar’iyyah, human’s life will be Al-Qaradawi [40], Abdul_Rahman [41], Asyraf Wajdi and
in chaos and uncertain. With its observance, human Nurdianawati Irwani [42], Bashir and Sobri [43], Bayyah
life will be directed objectively. With regards to Islamic [44], Mohamad Akram Laldinet al. [45], Ismail and Nor
banking, Maqasid al-Shariah stands as its pillar and base [46]. It should be clearly understood that the
while the operation of Islamic banks is the manifestation understanding of Maqasid al-Shariah in ‘ibadah is

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different than its applicability in Muamalat issues. Adapted from Mustafa [30] that has developed his
The Maqasid al-Shariah of ‘ibadah should be study based on Abu Zaharah’s theory and Al-Ghazali’s
understood in its literal injunction by Allah and His theory of Maqasid al-Shariah, the authors similarly have
prophet (pbuh). In Muamalat which is dynamic, requires analysed both disciplines based on the following
also a dynamic Maqasid al-Shariah to fit the society and conceptual framework shown in Figure 1. The authors
appreciate the needs and demands of the society as Auda have divided the objectives of Islamic Bank into three
[47] mentions in the following statement based on his different main categories based on the theory of Maqasid
understanding over Al-Shatibi’s writing on al-Muwafaqat: al-Shariah as found by Syahidawati [29], while the
“Literal compliance is the default methodology in objective of Islamic economics is derived from the above-
the area of acts of worship (‘ibadah), while the discussed literatures.
consideration of purposes is the default methodology in The authors critically analyse the selected literatures
the area of worldly dealings (muamalat).” Auda [47] based on self-developed method by labeling each
Thus, the need to unveil Maqasid al-Shariah in the objective and framework with different labels to
direction of all Islamic banks is a basic requirement to differentiate and see any variation or relationship. L1, L2,
ensure that the intention of embarking in this holy L3 and L4 are given to each different column of analysis
business is understood by all means and by all levels of that represents the following title respectively; the two
stakeholders. By upholding the essence of Maqasid main types of objective; philosophical-based and
al-Shariah, Islamic Banking activities will not ruin from its operational-based objectives, objective of Islamic
original track; the Maqasidi track that consists of all the economics, VMO of Islamic bank and the Maqasid
positive and proactive elements for the comprehensive framework.
betterment of human life. The similar awareness is The observation over the literatures has shown a
highlighted by Haniffa and Hudaib [48] who encourage substantial correlation on the application of the Maqasid
the need to return back to the base and the root of the framework in determining the objectives of Islamic
main purpose of this business. In advance Choudhury economics and Islamic banks. It is discovered that
[49] has also stressed on the importance of establishing due attention is given to the protection of dignity
Maqasid al-Shariah in the issue of profit distribution and (al-Muru’ah), protection of mind (al-‘Aql) and protection
the possibility of re-negotiating contracts in Islamic of wealth (al-Mal). The result is consistent to the goal of
venture capital products. Islamic banking by Association of Islamic Banking
In terms of its application and orientation in Islamic Institutions Malaysia (AIBIM) [32] in directing Islamic
banking and finance, Asyraf Wajdi [50] has pointed an banking towards socio-economic justice. It also can be
important issue in inculcating Maqasid al-Shariah in concluded from the study that both objectives of Islamic
Islamic bank; referring to a proper understanding of economics and Islamic banking give huge attention to the
Maqasid al-Shariah and its various concepts. Some study of human or the stakeholders’ behavior. There
other literatures also have overlooked the great is rationale from the finding that Islamic economics
association between a required framework of once was associated to the study of human welfare [5],
Maqasid al-Shariah in the development of Islamic likely the stakeholders are the main players of the
Banking [28, 30, 51-62]. activities.
With regards to the relationship and variation on the
The Objective of Islamic Economics and Islamic Banking objectives of Islamic economics and Islamic banking, this
VS Maqasid Al-shariah Framework: This paper study learns that the centre of objectives of Islamic
therefore has critically surveyed the selected literature on economics and Islamic banks lie on the God-related
the subject, using Maqasid al-Shariah as a benchmark objectives and human-related objectives. Allah as the
for examining the variations and relationship between Sole Creator of the universe is considered as the
both disciplines. The issues of theories versus practice important element in determining the direction of these
has been given due emphasis. The study, which is two fields. This relationship is also supported by various
exploratory in nature, has adopted content analysis and literatures that place Allah as the final destination of
inductive method to achieve its objectives human economic activities [4, 7, 8]. Rational man as the
aforementioned. Since data of this study are selected actor also is distinguished as the nucleus study of both
literatures and historical in nature, Mannan [63] the two disciplines and providing human needs and
suggested that inductive method is the most appropriate fulfilling their demands are considered as economics
method to find solution and conclusion. [5, 64-66].

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Fig. 1: The conceptual association between Maqasid al-Shariah Framework and Objectives of Islamic Banks and Islamic
Economics

It is however observed that institutional dimension is main constituent of Islamic economics to lift up both
not the key attention in dealing with the objectives of disciplines within the margin of Shariah designed by
Islamic economics and it is overseen in general features Muslim thinkers based on al-Qur’an and al-Sunnah.
like the one stated by Khan [4]; “Falah in political The barakah in dealing with Islamic banking is very
survival deems social participation in state’s affairs”. subjective but by promoting self-awareness and
Contrary to that finding, the objective of Islamic banks Shariah-conscious Muslims indirectly encourage towards
particularly its VMO give a massive attention to the Maqasid-based and holistic ends.
institutions’ performance in providing services. It is seen
that almost all the VMOs of Islamic banks as studied by CONCLUSION
Syahidawati [29] congregate strategic management
agenda in their customer-oriented services. Expressions This paper is a humble attempt to correlate two
like “we”, “financial provider”, “leading”, “partner”, “our disciplines of Islamic banking and Islamic economics in
customer” and “organization” are mainly used in their the Maqasid framework. The inner objective of the
VMO as their marketing strategy and means to express authors is to provide a better picture on the status and
their serious commitment towards customers in this co-integration between those two. The observation of the
industry. selected literatures concluded that the five elements of
To conclude this observation, in earlier discussion, Maqasid al-Shariah were fully observed in the objectives
Islamic banks is described as “financial institutions of Islamic economics and Islamic bank. In addition, due to
established to promote Islamic economics” [12]. the nature of bank as a business entity, the VMO of
The statement explicitly correlates Islamic banking to Islamic banks obviously directed towards profit-oriented
Islamic economic thus should uphold similar objectives. entity rather than social-based entity by which was not
One of the findings of this study consecutively supports given attention when objective of Islamic economics were
to the claims that Islamic economics is the father of written in the literatures. It is important to highlight that all
Islamic banking by referring to the human dealings. It is encompassing elements of Maqasid al-Shariah should be
also important to note that the mainstream of given due attentions when dealing with the directions of
Islamic economics is based on the socio economic justice. Islamic banks and Islamic economics. It is therefore
The adherence to it will uplift remarkable position of suggested the future research to further enhance this
Islamic banking in the eyes of Muslim and non-Muslim paper and promote other dimensions of Islamic economic
customers. Hence, to promote such standing, institutional and Islamic banking since the fast moving of Islamic
accomplishment should be proven by Islamic banks via banking requires a very strong foundation to ensure its
fulfilling the Maqasid-directed objectives of Islamic bank. direction is within the God-based track and does not ruin
It is proposed that Islamic banking to integrate with the its holistic function.

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