Bridging Juristic Divides: A Comparative Analysis of Malaysian and Gulf Cooperation Council (GCC) Countries' Fatwas in Islamic Banking

Abstract

Persistent divergence in Shariah rulings governing Islamic finance has generated ongoing debate regarding the feasibility 

and desirability of standardization across jurisdictions. While juristic plurality (ikhtilāf fiqhī) is an established feature of 

Islamic jurisprudence, excessive fragmentation in fatwas poses regulatory and operational challenges for Islamic financial 

institutions operating in an increasingly cross-border environment. This study examines the possibility of Shariah 

harmonization by conducting a comparative doctrinal analysis of selected fatwas issued by centralized and decentralized 

Shariah governance bodies, with particular reference to Malaysia and Gulf Cooperation Council (GCC) jurisdictions. 

Employing a qualitative legal methodology grounded in comparative fiqh and uṣūl al-fiqh, the study analyzes key Shariah 

resolutions related to core Islamic banking instruments, including financing, guarantees, liquidity management, and 

contractual undertakings. The findings demonstrate that divergences in fatwas do not stem from an absence of Shariah 

reasoning, but rather from methodological differences in interpretive approaches, juristic prioritization, and regulatory 

context. Importantly, the study clarifies that scholarly disagreement reflects legitimate interpretive variance and that 

instances of polemical dismissal among scholars represent ethical concerns (akhlāq al-ikhtilāf) rather than jurisprudential 

principles. The paper argues that rigid standardization risks undermining ijtihād and juristic plurality, while uncoordinated 

divergence threatens legal certainty and market confidence. As a normative contribution, the study advances a middlepath framework of coordinated harmonization through apex Shariah bodies and collective ijtihād, preserving the dignity 

of mujtahids while enhancing regulatory coherence. This approach offers a pragmatic pathway for strengthening Shariah 

governance and fostering sustainable growth in the global Islamic finance industry.