The Rahn Contract in Islamic Fiqh al-Muʿamalat: A Descriptive Analysis of Its Concept, Pillars, and Mechanisms

Abstract

Rahn is a fundamental contract in Islamic jurisprudence (fiqh muamalah) that functions as a collateral mechanism to secure debt transactions while upholding principles of justice, trust, and asset protection. Along with the expansion of contemporary Islamic financial institutions, particularly Islamic pawnshops, the implementation of rahn requires a comprehensive understanding of its juridical foundations and operational mechanisms. This study aims to provide a descriptive analysis of the rahn contract by focusing on three main aspects: the conceptual framework of rahn in fiqh muamalah, its pillars and legal requirements, and its implementation mechanism in contemporary Islamic financial practices. This research employs a qualitative approach through library research, drawing upon classical fiqh literature, contemporary Islamic finance studies, international sharia standards, national regulations, and recent academic publications. The findings indicate that rahn is a legally valid auxiliary contract grounded in the Qur’an and Sunnah, designed to safeguard the rights of contracting parties without involving riba or gharar. Proper fulfillment of its pillars and conditions, supported by transparent and sharia-compliant operational mechanisms, is essential to ensure alignment with maqāṣid al-sharīʿah, particularly the protection of wealth and prevention of economic injustice.