Shari’a Compliance Decision Tree

Practical Islamic Finance

I often feel there is a prevailing notion that Sharia compliance is akin to neurosurgery or rocket science in its complexity. I disagree. I think it’s pretty easy to understand and comply with Sharia. To prove this, I constructed a decision tree that hits on the main points of prohibition for Islamic business activity. I don’t claim that this decision tree covers %100 of cases, but i do claim that it is more accurate than any of the Sharia boards (costing their companies millions of dollars) that have authorized things like Murabaha, Ijarah Muntahiya Bittamleek and Musharakah Mutanaqisa.

I encourage readers to let me know if they can think of a product for which the decision tree below comes out with the wrong result. Let’s make this a pseudo-open source project where readers are in charge of improving the algorithm.

Shari'a Compliance Decision Tree Shari’a Compliance Decision Tree

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