Sharia Foundations of the Baitul-mal Institution and a Comparative Analysis with the Financial System of the Republic of Kazakhstan

Abstract

This article examines the Baitul-mal institution as an element of the Islamic public finance system from a Sharia-based and religious-studies perspective, and provides a comparative analysis with the contemporary financial system of the Republic of Kazakhstan. The study covers the formation of Baitul-mal during the early Islamic period and its institutional development under the subsequent caliphates. The legal and ethical foundations of Baitul-mal, grounded in the Qur’an and Sunnah, as well as its functions in wealth redistribution, ensuring social justice, and maintaining public stability, are analyzed from a scholarly perspective. The comparative analysis focuses on the structure, fiscal policies, and social functions of Kazakhstan’s financial system. The findings indicate structural limitations in the current system that exacerbate social inequality, whereas the maqasid al-shari‘ah principles underlying Baitul-mal provide theoretical and methodological potential to strengthen social justice. The article also considers the Value-Based Intermediation (VBI) concept, which, as demonstrated in Malaysia, integrates social and environmental considerations alongside financial efficiency. Experimental integration of VBI into Kazakhstan’s financial system is proposed as a means of applying Baitul-mal principles within a modern market context.

The study is scientifically significant for the fields of religious studies, Islamic studies, public finance, and social policy, providing an analytical framework to evaluate secular financial systems in terms of social justice and ethical responsibility.