Maqasid Al-Shariah and Hifz Al-Mal as the Foundation of Islamic Financial Management

Abstract
Maqasid al-Shariah represents the fundamental framework of Islamic law, aimed at promoting human well-being (maslahah) through the preservation of the five essential objectives (al-daruriyyat al-khams), including the preservation of wealth (Hifz al-Mal) (Auda, 2008). In the era of globalization, economic digitalization, and rapid financial technology development, financial management is no longer confined to technical aspects such as budgeting, saving, and investing. Instead, it requires ethical values and moral guidance to ensure sustainable financial well-being. Previous studies have demonstrated that financial literacy plays a significant role in enhancing individuals' ability to make sound financial decisions and contributes positively to financial well-being. Nevertheless, most existing studies have primarily adopted conventional perspectives and have paid limited attention to integrating the principles of Maqasid al-Shariah, particularly Hifz al-Mal, as the underlying foundation of Islamic financial management.
Accordingly, this article aims to analyse the concept of financial management from the perspective of Maqasid al-Shariah, with particular emphasis on the application of the principle of Hifz al-Mal in developing a holistic framework for Islamic financial management practices. This study adopts a qualitative approach through a narrative literature review and content analysis of scholarly journal articles, academic books, and official documents related to Maqasid al-Shariah, Islamic financial management, and financial well-being.
The findings indicate that Hifz al-Mal extends beyond the mere preservation of wealth. It encompasses wealth creation and development, the acquisition of lawful (halal) income, ethical debt management, prudent spending, Shariah-compliant investment, and the fulfilment of social responsibilities through zakat and charitable giving (sadaqah). Based on the synthesis of the literature, this article proposes the Islamic Financial Management Framework based on Hifz al-Mal (IFM-HM Framework) as a conceptual framework that integrates the principles of Maqasid al-Shariah with contemporary financial management practices. The proposed framework is expected to contribute to the advancement of Islamic financial management theory while serving as a foundation for future empirical research and the development of more sustainable Islamic financial policies.
Keywords: Maqasid al-Shariah; Hifz al-Mal; Islamic Financial Management; Conceptual Framework; Financial Well-being; Islamic Finance.

ISLAMIC FINANCIAL MANAGEMENT

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