Glossary
Ijtihad
اجتهادDefinition
Independent reasoning by a qualified scholar to derive a ruling on a new question not directly settled by primary texts.
Ijtihad is essential to applying Islamic law to modern financial instruments that did not exist in classical times — derivatives, crypto, sovereign sukuk, robo-advisors. Collective ijtihad through bodies like the IFA-OIC carries broader authority than individual rulings.
Strict madhhab adherents prefer to derive answers within their school's framework; reformists give more weight to fresh ijtihad on novel questions.