THEOLOGY & FINANCE

Research & Framework

Bridging classical Islamic jurisprudence (Fiqh) with modern quantitative finance: the Computational Wakil framework.

The Five Arkan Lifecycle

Translating religious wealth management obligations into modular computational logic

Rukn I — 💼

Wealth Creation

Employ an active gatekeeper to validate source of funds (SoF), screen employer industries, and analyze professional income metadata against sector-risk blacklists.

Rukn II — 📈

Accumulation

Automated direct indexing and multi-standard equity screening (AAOIFI, MSCI, SC Malaysia, S&P, DSES) with live trade compliance and asset-tangibility checks.

Rukn III — 🛡️

Protection

Sentinel active surveillance, Takaful gap analysis, and cybersecurity protocols (Cyber-Hifz al-Mal) computing a dynamic Financial Immunity Score.

Rukn IV — 🧼

Purification

Intent-based Zakat calculations (Investor vs. Trader) paired with mandatory dividend and recommended capital gains purification.

Rukn V — 📜

Distribution

Rule-governed inheritance calculators (supporting Hanafi Faraid, Khuntha dual-simulation, and Mawquf reserves) with strict debt-clearance and bequest limits.

Theological & Qualitative Breakthroughs

Moving beyond opaque "Black Box" algorithms to transparent, self-governing ShariaTech

Hanafi Doctrine Calibration

"Fiqh-as-Code" Engine

Translates complex Hanafi jurisprudence into deterministic code. Includes a Faraid (Inheritance) Dual Simulation that applies Abu Hanifa's principle of caution (Ihtiyat) to calculate the lesser of two shares (Akhass al-Nasibayn) for intersex heirs (Khuntha Mushkil), suspending surplus funds as legally reserved (Mawquf).

AAOIFI Standard 23 & Majallah

The "Digital Wakil" Agency

Positions the software as an automated agent (Wakil) under AAOIFI Standard 23. Grounded in Articles 1459, 1461, and 89 of the Majallah al-Ahkam al-Adliyah (Ottoman Civil Code), programmatic actions are legally and religiously attributed to the human principal, establishing clear fiduciary liability.

Theological Traceability

Glass Box Compliance

Replaces binary "Halal/Haram" labels with a fully auditable compliance kernel (TheologyService.ts). Every automated purification or transaction logs its exact theological traceability chain—pointing directly to the Quranic verse, Hadith, or classical maxim (e.g., Al-Yaqin la Yazul bi al-Shakk) governing the rule.

ONGOING WORK

Active Research & Next Steps

📚 Scholarly Pipeline

Actively developing a multi-paper research series derived from the core thesis, targeting peer-reviewed journals in Islamic finance, computational law, and AI ethics.

✍️ Framework Enhancement

Continuously strengthening the IWM compliance engine with expanded AAOIFI standard coverage, refined screening logic, and localized regulatory alignment.

🚀 Long-Term Vision

Working toward transitioning the framework from an academic prototype to a live, regulated platform for Shariah-compliant capital markets.

Empirical Backtest (2010–2024)

Quantitative Validation & Limitations

Subjected to a 15-year Walk-Forward Validation on the Dhaka Stock Exchange (DSE), the framework demonstrated strong financial immunity and capital preservation under simulated conditions:

+138.95%
Cumulative Outperformance vs. DSE Index
-21.11%
Absolute Drawdown Reduction (Risk Mitigation)
Academic Disclosure (Hybrid Data Design): While DSE historical price data is real, the Shariah compliance financial ratios were programmatically modeled as a stochastically proxied dataset due to a lack of machine-readable corporate disclosures in Bangladesh. This backtest serves as an exploratory proof of concept verifying the framework's screening logic under realistic market constraints.
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Thesis Specifications
  • 🏛️ Institution: Islamic University, Bangladesh
  • 📜 Methodology: Design Science Research (DSR)
  • ⚙️ Rigor: Hanafi Jurisprudential Calibration
  • 📊 Backtest: 15-Year Walk-Forward (2010–2024)
  • 🧬 Engine: Rule-Based Compliance Core