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Category — Islamic Finance
Fiqh is a set of practical rulings and laws that are the outcome of the legal interpretation by Muslim jurists and also a product of human understanding and interpretation of the sources of law.

Fiqh is divided into two bodies of rules:
1. Ibada (worship) – this governs the relationship between the Muslim and Allah (God).
2. Mu’amalat (transactions) – this governs the relationships between people. It is divided into three main categories:
• Political activities;
• Social activities;
• Economic activities.
The last of these (economic activities) specifically governs Islamic banking and finance activities.

Sharia & Fiqh.

Sharia refers to all divine injunctions and revelations pertaining to human life while Fiqh is confined to understanding human acts and the extent of legality and legitimacy of such acts.

Key differences between Sharia and Fiqh:

Sharia Figh
Principally based on divine and Prophetic sources Reflects the effort of Muslim jurists to understand Sharia and to apply its principles and general guidance to specific cases.
Provides general principles of Islam Aims to provide explanations and detailed prescriptions to meet the complexities of human life
Covers matters of faith, moral conduct, and laws Covers only the practical aspects of Sharia which include almost all aspects of human affairs such as worship, financial activities, family affairs, dispute resolution, and the administration of law.
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Terms from the same category

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