Looking for Parameters in the Halal Exchange Market

This study develops a conceptual and operational framework for the halal exchange market by situating it within both classical and contemporary theories of economic exchange and the epistemological foundations of Islamic economics. While conventional exchange markets operate on assumptions of utility and profit maximisation, efficiency, and institutional regulation, halal exchange markets integrate these functional mechanisms with Shariah principles derived from the Holy Qur’an and Sunnah. Through a comparative analysis of exchange theories — including classical, neoclassical, institutional, behavioural, and political economy approaches — this study highlights the unique role of Tawhidic epistemology in shaping halal markets. Eight constitutive dimensions of exchange are examined: economic agents, initial endowments, preferences, markets and prices, contracts and rules, information structures, equilibrium conditions, and institutions/governance. The findings suggest that halal exchange markets are not merely differentiated by the exclusion of riba (usury), gharar (excessive uncertainty), maysir (gambling), and tanajush, but by embedding ethical accountability, fairness, and justice within their structural design. This study proposes a set of parameters to guide the development, regulation, and evaluation of halal exchange markets within the global economy. Implications are drawn for policymakers, regulators, and practitioners in fostering credible, transparent, and just halal marketplaces.