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Corporate Governance from the Islamic Perspective

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This article investigates corporate governance from an Islamic perspective and offers a definition of Islam as well as the sources that underpin Islamic law: i.e., the Qurʾān and Sunnah as primary and ijmāʿ (consensus) and qiyās (analogical reasoning) as secondary sources. Islamic objectives are highlighted by focusing on māl (wealth) and tawḥīd (Unity/Oneness of Allah). The Islamic vision on values is appraised by illustrating accountability (ḥisāb), justice (ʿadālah), consultation (shūrā), integrity (amānah), truthfulness (ṣiddiq), sincerity (ikhlāṣ), intention (niyyah), and brotherhood (ukhuwah). However, points of view on models of corporate governance differ greatly between Islamic and Western (Anglo-American) law. It has been argued that corporate governance from an Islamic perspective does not represent a modern model. This article discusses the advantages it has to offer for Saudi corporate governance.

Affiliations: 1: Brunel Law SchoolUK


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