Fatwa
فتوى
Pronunciation: FAT-wah
A religious ruling on a specific matter issued by a qualified Islamic scholar.
Definition
A religious ruling or opinion issued by a qualified Islamic scholar (mufti) on a specific matter. In finance, a fatwa may certify that a product or transaction complies with Shariah principles.
A fatwa is not binding law — it is a scholarly opinion that carries weight based on the credentials of the issuing scholar and the rigor of the analysis. Financial institutions may seek fatwas from individual scholars or Shariah boards to validate their product structures.
Related Terms
Shariah Boardهيئة شرعية
A committee of qualified Islamic scholars that certifies the Shariah compliance of financial products.
Shariahشريعة
Islamic law derived from the Quran and Sunnah — the foundation of all Islamic financial principles.
AAOIFI
The primary international standard-setting body for Islamic finance.
Fiqh al-Muamalatفقه المعاملات
Islamic jurisprudence governing commercial and financial transactions.
Further Reading
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Quick Answer
Fatwa (فتوى) — A religious ruling on a specific matter issued by a qualified Islamic scholar. A religious ruling or opinion issued by a qualified Islamic scholar (mufti) on a specific matter. In finance, a fatwa may certify that a product or transaction complies with Shariah principles.
Key Takeaways
- A religious ruling on a specific matter issued by a qualified Islamic scholar.
- Category: Governance
- Related: Shariah Board, Shariah, AAOIFI, Fiqh al-Muamalat
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Last reviewed: 2026-03-06
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