The Ujrah Framework in Islamic Credit Cards: A Jurisprudential and Conceptual Analysis

Abstract

The increasing demand for Shari’ah -compliant financial solutions has led to the emergence of Islamic credit card models, among which the Ujrah framework offers a notable alternative to conventional interest-based systems. This study aims to examine the jurisprudential foundations, methodological underpinnings, and operational mechanisms of the Ujrah model in light of classical Islamic legal sources and contemporary financial practice. Using a descriptive analytical methodology, the research draws upon primary sources -including the Qur’an, Hadith, and classical fiqhi literature and secondary materials such as institutional fatwas, AAOIFI standards, and academic writings. The objective is to determine whether the Ujrah model maintains genuine Shari’ah compliance while addressing modern financial needs. The study contributes to existing literature by providing a structured comparative evaluation between Ujrah-based and other Islamic credit card models (e.g., Tawarruq and Murabahah), identifying their legal implications, ethical concerns, and practical limitations. Findings reveal that while the Ujrah framework aligns with many Islamic principles, challenges persist regarding fee justification, ibra’ conditions, and dual-contract risks. The research concludes that effective regulation, transparent disclosure, and robust Shari’ah supervision are essential for maintaining compliance. Future research may explore empirical testing of Ujrah-based card performance across jurisdictions.