Halal Financing in the COVID-19Pandemic: Analysis of Rukhṣoh on Halal Transactions

Halal (permissible) covers wājib, mandūb, mubah,and makrūh categories in the rulings of Islamic jurisprudence based on the personal situation of the subject matter. The outbreak of COVID-19across the globe hastriggered the quest for the scope of halal financing and management. Does the pandemic situation is enough justification for allowingfinancing of some non-permissible activities?This study aims to explore the principles of Rukhṣohin Islamic jurisprudence and its implication on the scope of funding halaltransactions amidst the COVID-19pandemic. This study is mainly qualitative-based research. The study employs a doctrinal approach in exploring the principles of Rukhṣohand Azīmah and their contemporary application to the scope of halal financing in the context of COVID-19. The study identifies the generalscope of halal (permissible) within the contextsof wājib, mandūb, mubah,and makrūh. The resultfurther suggests that even though Haram (forbidden) might be granted the Rukhṣohbased on specific circumstances, the Islamic juristsdifferin giving it the equal status within the halal scope exceptthat there isa waiver of punishment on the Mukhalaf (accountable person).The study out that many people might have violated contractual obligations because of the COVID-19pandemic. Thus, Islamic financial institutions should apply the Quranic inunction of "If the debtor is in difficulty, grant him time till it is easy for him to repay. But suppose ye remit it by way of charity. In that case, that is best for you if ye only knew" [Al-baqarah: 280]as respite and benevolence on loans to promote financial recovery of Muslim economy in the pandemic. Although there are studies on halal financing, this study is a novel contribution to the contemporary application of the concept of Rukhṣoh and Azīmah to halal financing amidst the COVID-19challenges