Examining the Legitimacy of Electronic Commerce in Islamic Jurisprudence

Abstract

The emergence of electronic commerce as a new paradigm in the global trade ecosystem has raised critical jurisprudential questions in the context of Islamic law. As Muslims, like other communities, increasingly adopt digital technologies for commercial transactions, the need to evaluate the legitimacy of electronic commerce within the framework of Islamic jurisprudence becomes more pronounced. This article examines whether the foundational principles of Islamic contract law can accommodate the mechanisms and modalities inherent in e-commerce without contravening traditional jurisprudential norms. The study specifically investigates whether it is necessary to develop new legal theories in Islamic law to reconcile traditional contract formalities with modern technological practices such as online offers and acceptances, data messages, and digital signatures. Using a descriptive-analytical methodology based on classical fiqh texts and contemporary statutory resources, the research critically explores the doctrinal underpinnings of contract formation, especially focusing on the role of ijab (offer) and qabul (acceptance), as well as the legitimacy of various modes of expression such as verbal declarations, actions (ta‘ati), and especially kitabat (writing), including electronic documentation. The study highlights how Islamic jurisprudence, particularly in its usuli and fatwa-oriented traditions, has the inherent flexibility to validate new forms of transaction mechanisms, provided they align with overarching Shariah principles such as mutual consent, absence of gharar (uncertainty), and prohibition of riba (usury). Moreover, the study draws on legal precedents and contemporary legislative frameworks, such as the Iranian Electronic Commerce Act (2003), to demonstrate the compatibility of electronic instruments—namely "data messages"—with Islamic contractual intent and purpose. Notably, the paper argues that the concept of urf (custom) plays a pivotal role in interpreting the permissibility of electronic commercial practices, especially in light of modern technological developments. The findings suggest that the substance of contractual intent—rather than its form—is the determinative factor in Islamic law, thereby legitimizing electronic commerce insofar as it fulfills the essential conditions of Islamic contracts. The article concludes that e-commerce, when appropriately regulated and practiced within Islamic ethical boundaries, is not only legitimate but also commendable, reinforcing Islam’s inherent adaptability to socio-economic evolution across time and context.