Ijtihad (independent juristic reasoning)
The effort of a qualified jurist to derive a ruling on a question the texts do not settle directly.
Ijtihad is the disciplined effort of a qualified jurist to reach a Shariah ruling on a question that the texts and existing consensus do not settle. Bank Negara Malaysia's Shariah contract framework refers to legal judgments deduced by a qualified jurist through the ijtihad process, and AAOIFI's governance texts note that differing views often arise on rulings reached by reasoning, especially on new questions. Because new financial products raise new questions, most of what Shariah boards do is a form of ijtihad, individual or collective.
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This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.