This study aims to examine the conceptual genealogy, legal authority, historical evolution, and application of al-ʿurf as a method for the renewal of Islamic law, with particular reference to Sharia economics. The research adopts a library research design employing a juridical-normative approach. Data are drawn from classical and contemporary literature on uṣūl al-fiqh, legal maxims, and maqāṣid al-sharīʿah, alongside regulatory instruments and fatwas governing Sharia economic practices. These materials are subjected to descriptive-analytical analysis through a critical review of scholarly opinions and the evolving application of Islamic law. The findings confirm that al-ʿurf derives normative legitimacy from the Quran, Sunnah, consensus (ijmāʿ), and the established practice of scholarly ijtihād. Most major schools of Islamic jurisprudence recognize al-ʿurf as a valid legal proof, provided it satisfies the criteria of al-ʿurf al-ṣaḥīḥ and does not conflict with definitive textual rulings (naṣṣ qaṭʿī). Historically, al-ʿurf has functioned as a mechanism for legal adaptation since the prophetic era through to the formation of the authoritative schools of law. In contemporary practice, its application is evident in fatwas issued by the National Sharia Council of the Indonesian Ulema Council concerning modern economic instruments and transactions, including electronic money, non-cash gold trading, the bayʿ al-ʿurbūn contract, and digital commerce. It is concluded that al-ʿurf serves as a vital strategic instrument for legal renewal, enabling Islamic law to remain adaptive and responsive to new developments while remaining firmly anchored in the objectives of the Sharīʿah (maqāṣid al-sharīʿah).
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