Digital Transactions in Islam: A Comparative Study of SharīՙAh Compliance in Contemporary E-Business Practices

Abstract

This study investigates the Sharῑՙah compliance of digital transactions within

contemporary e-business practices, identifying both alignments and gaps between

modern financial technologies and Islamic finance principles. The primary

objective of this research is to explore the Islamic perspective on e-business

transactions. It aims to identify the key principles of Sharῑՙah law applicable to

digital commerce, analyze how contemporary e-business practices align with these

principles, and suggest frameworks or guidelines for ensuring Sharῑՙah-compliance

in online business operations. Employing a comparative methodology, the research

analyzes various case studies of digital transactions across different Islamic

jurisdictions. Findings indicate a substantial variance in compliance, influenced by

regional interpretations of Sharῑՙah and the technological frameworks in use. The

study observes that while some digital platforms have successfully integrated

Sharῑՙah-compliant features, others exhibit significant non-compliance, particularly

in sectors involving speculative transactions. Recommendations include the

development of uniform Sharῑՙah compliance guidelines for digital transactions, the

enhancement of technological infrastructures to support these guidelines, and

increased collaboration between Islamic scholars and fintech developers to foster

innovations that align with Islamic ethical values.