Scope: Fatwas are religious rulings issued by qualified scholars regarding specific issues. In Islamic finance, they provide legal and ethical clarity on product structures, contracts, and operational practices.

Process: Scholars evaluate financial products by analyzing contract structures, terms, and intended outcomes. Fatwas are issued after thorough deliberation to ensure that each element aligns with Shariah principles.

Challenges: Keeping up with evolving financial products and structures can be difficult for Shariah scholars. Divergent opinions on Shariah interpretations may also arise, leading to differences in rulings between jurisdictions.

Examples: A fatwa may rule on the permissibility of cryptocurrencies or blockchain use in finance, clarify contracts for Sukuk issuance, or validate Shariah-compliant savings accounts.