Islamic Law in the Market: Islamic Finance and Legal Adaptation in North America

This paper examines how Islamic jurists on the Shariah boards of Islamic financial institutions in North America adapt Islamic law to local financial regulatory systems. While scholarship on Islamic legal adaptation in North America has focused mainly on family law and arbitration, the ethical dimensions of Islamic finance remain understudied. Drawing on textual analysis and ethnographic research, the paper shows how Islamic law and finance, which prohibit interest, are made workable within regulatory systems structured around it. It argues that jurists use fiqh al-aqalliyyāt (jurisprudential accommodations for Muslims as minorities) to create pragmatic, profitable financial products while preserving claims to Islamic legality. By analyzing how Shariah boards structure financial contracts and justify their legal-ethical reasoning, the paper positions Islamic finance as a key site for understanding how Muslim minorities in North America pursue financial prosperity without compromising religious commitments.