Juristic perspectives of Islamic swaps: an assessment from selected Shariah resolutions

Purpose This paper evaluates the juristic perspective on Islamic swaps and comparatively examines their underlying rationale through a synthesis of selected Shariah resolutions and literature. This paper aims to bridge the gap between conceptual discourse and regulatory treatment by identifying the absence of a unified juristic framework grounded in Maqasid al-Shariah. Design/methodology/approach A non-systematic review with targeted retrieval was conducted, complemented by a structured analysis of selected Shariah resolutions issued by international and Malaysian authorities. This approach uses clear inclusion criteria and a multi-tiered sourcing strategy to support a rigorous evaluation despite the limited availability of specific academic literature. Findings This study reveals that discussions on Islamic swaps are predominantly theoretical, lacking in technical depth and mostly derived from general Shariah principles on derivatives. It identifies a distinct “regulatory-academic asynchrony,” where institutional operationalization has outpaced scholarly deliberation. There is no dedicated Shariah resolution addressing Islamic swaps specifically, except within the context of the Tahawwut Master Agreement. This paper clarifies ambiguities regarding speculation and contract structure, proposing a maqasid-based evaluative lens for future regulatory development. Research limitations/implications Academic literature directly addressing Islamic swaps remains limited, with the search window anchored to the 2022 research date to capture the evolution of post-2008 hedging discourse. This limitation reinforces the need for further focused research on the technical and juristic dimensions of Islamic swap structures. Originality/value This study contributes to a structured assessment of the fragmented juristic discourse on Islamic swaps, providing valuable insights to both scholars and industry practitioners. It uniquely consolidates scattered references into a focused review, thus facilitating the development of a more coherent Shariah framework for Islamic derivatives. This fills a significant gap noted in previous works and encourages further applied Shariah research in financial innovation.