Musyarakah from the Perspective of Interpretation of the Qur'an, Hadith, and Fiqh: Theoretical and Practical Relevance in Modern Islamic Finance

Abstract

This study examines the concept of musyarakah as one of the fundamental partnership-based contracts in Islamic finance by integrating theological, jurisprudential, and empirical perspectives. The research explores normative foundations from the Qur’an, authentic hadith, and classical fiqh, and critically analyzes their implementation in the modern Islamic financial industry. Using a qualitative normative-empirical approach, the study synthesizes classical tafsir, major fiqh school positions, contemporary regulatory frameworks (DSN-MUI Fatwa, PSAK 106, AAOIFI standards), and statistical industry reports. The findings demonstrate that the Qur’an provides strong recognition of joint ownership, justice, and protection of rights in economic partnerships, while hadith emphasizes honesty, trustworthiness, and the prohibition of gharar. However, empirical evidence shows that musyarakah financing remains limited in Islamic banking portfolios due to risk concerns, information asymmetry, moral hazard issues, and high monitoring costs. This creates a noticeable gap between the ideal risk-sharing philosophy of Sharia and risk-transfer tendencies in practice. The study concludes that while musyarakah has a strong theological and legal basis, its modern implementation still requires conceptual and institutional reconstruction to align with maqasid al-shariah.