Journal of Islamic Accounting and Business Research

Purpose – The paper seeks to examine the political and socio-economic circumstances in three different periods of the evolution of Islamic finance and how the fundamental aim of its existence altered over time.

Design/methodology/approach – Based on the existing literature on the evolution of Islamic finance, this paper explores the tensions and conflicts with reference to the dynamic changes in the political and socio-economic landscape to understand how “intentions” changed over time.

Findings – The sacred intentions to help Muslims fulfill their religious economic obligations especially with regards to riba (usury) have been distorted with secular goals as a result of the intervention of political-economic and social events as well as the dynamic interactions with the conventional sector. Maqasid al-shari'ah (purposes of the law) has been unduly used to justify the innovation of financial products to compete and converge with conventional banking.

Originality/value – This editorial paper enhances the understanding of the status quo of Islamic finance in general and paves the way for country-specific research on this indispensable issue.