Developing Sharīʿah-Compliant Asset Pricing Model in the Framework of Maqāṣid al-Sharīʿah and Islamic Wealth Management.

This article offers a conceptual framework for developing the Sharīʿah-Compliant Asset Pricing Model (SCAPM) using the Maqāṣid al-Sharīʿah and Islamic Wealth Management (IWM). This article also provides a new perspective on finding Islamic financial benchmarks as an alternative to conventional financial benchmarks in the Islamic finance industry. This research was conducted using a qualitative research method with deep reference to published journal articles and books in the fields of Maqāṣid al-Sharīʿah, Islamic Wealth Management, and asset pricing model. As a measure of the expected minimum rate of return in an asset pricing model, this article proposes the fulfilment of basic necessities (ḍarūriyyāt) and zakāt rate as proxy for investors' required rate of return. This study acknowledges both systematic and non-systematic risk's effects on asset pricing. [ABSTRACT FROM AUTHOR]