AL-GHAZALI’S CONTRIBUTION TO THE DEVELOPMENT OF ISLAMIC FINANCIAL LAW: AN ANALYTICAL STUDY OF THE PRINCIPLE OF JUSTICE IN CONTRACTS

Abstract

Al-Ghazali, one of the most influential scholars in Islamic intellectual history, made significant contributions to the ethical and philosophical foundations of Islamic financial law. This article explores Al-Ghazali’s thought on justice (‘adl) in contractual relations and its relevance to the development of contemporary Islamic finance. Through a normative and analytical approach, this study examines Al-Ghazali’s key works—particularly Ihya’ ‘Ulum al-Din and al-Mustasfa—to uncover his insights on the moral dimensions of economic transactions, the prohibition of exploitation, and the obligation of fairness between contracting parties. The analysis reveals that Al-Ghazali emphasized the centrality of justice not only as a legal norm but also as a spiritual imperative aimed at achieving social harmony and economic balance. His views laid an early theoretical foundation for modern principles such as risk-sharing, transparency, and ethical investing in Islamic finance. The study concludes that incorporating Al-Ghazali’s justice-based perspective into current financial practices could enhance the integrity and social function of Islamic financial systems.