THE LEGAL PROHIBITION OF RIBA IN ISLAMIC LAW: A COMPARATIVE LEGAL ANALYSIS AND ISSUES OF HARMONIZATION WITH PRIVATE LAW

Abstract

This study is devoted to the legal analysis of the concept of riba within the Islamic financial system based on the norms of Sharia and its comparison with the provisions of traditional private law, particularly in the areas of contract law, equivalence, freedom of contract, and the legitimacy of profit-making. The subject of the research is to identify the legal nature of riba and explore possible directions for its adaptation within the framework of secular private law. The relevance of the topic is determined by the growing interest in ethically oriented models of regulating property relations in the context of globalization. The aim of the study is to substantiate the need for legal rethinking of the phenomenon of riba in order to promote harmonization between Islamic and conventional legal systems. The methodological basis of the research is a comparative legal analysis, relying on classical sources of Islamic law and modern legal standards. The study examines various types of riba, including riba al-fadl and riba an-nasi’a, in terms of the validity of transactions and the conditions of their conclusion. Special attention is given to the Islamic contract model, which excludes fixed interest and is based on profit-and-loss sharing and risk participation. As a result, the research reveals differences in legal approaches, as well as institutional and methodological barriers that hinder the recognition of the Islamic model within secular legal systems. The findings highlight the need to develop legal mechanisms that take into account the value-based and ethical characteristics of Islamic contract law within contemporary legal doctrine.