By Dr. Ardiansyah Rakhmadi

Ibn Abbas narrated, “When Prophet Muhammad Shallallahu ‘Alaihi Wasallam was coming to Madinah, he saw the citizen of Madinah sell Dates in advance for two or three years. The Prophet Shallallahu ‘Alaihi Wasallam said, who sells something in advance, he should do in specified scales, and measures, as well as period of handover.” (Al-Bukhari)

From the hadith above, we have understood that in muamalah, we may accept a particular transactional practice, including transactions in the conventional financial system, as long as it doesn’t violate shariah principles. If there are violations, we have to use a shariah screening process to eliminate prohibited elements in a transaction. 

In the Islamic product development context, we name it as an adaptive method. The adaptive method uses conventional financial products as structure and behavior standards for the Islamic financial product.  

Besides, we can apply the originative method and explore available shariah contracts to develop a new product based on the fiqh principle:

“Everything is halal unless there is evidence that prohibits that thing.”  

 The originative method refers to the nature of the shariah contracts as a standard. This method is the best way to produce an Islamic financial product.

Using the adaptive method to construct an Islamic financial product, we have to follow the several guidances bellow:

  1. Eliminate all prohibited elements.
  2. Focus on customer’s needs, and not to the conventional product structure and behavior as a standard.
  3. Ensure the fulfillment of shariah objectives of the transaction.
  4. Follow the nature of the shariah contracts used in the product.