All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah and that Muhammad is His Slave and Messenger as well as that of his family and all his companions.
It is not permissible to say the term Islamic liberalism for many reasons:
1- Firstly, there is nothing which is called Islamic liberalism, as this comprises two opposites, and whoever says this innovated term, the following statement of the poet applies to him: I went eastwards while you went westwards. What a great difference between the East and West!
So, there is a great difference between liberalism and Islam, therefore, whoever says this term “Islamic liberalism”, he will be obliged to interpret the term ‘liberalism’ in a way that is different from its real meaning and context, to an extent that no meaning will remain to it, as in the sentence mentioned in the question. If the term “Islamic liberalism” means sticking to religion, then to social customs, then to the innate human morals, like mercy and affection…etc, then what is the benefit in the word liberalism? Sticking to religion, then to social customs, then to the human morals, is included in the concept of Islam, so the word liberalism did not bring anything new so that we would say: “Islamic liberalism”.
2- Secondly, this term falsely makes people believe that the term Islam and liberalism are close to each other, and that Islam accepts the deviations of liberalism, so people would misunderstand and misuse the words while not realizing the difference; there is no doubt that this is forbidden and any means that leads to it should be blocked.
3- Thirdly, Islam is a complete and great methodology and way of life, and mixing it with the worldly methodologies which are nothing but the pus of human thinking, is a condemnation to the religion of Islam and suggests that it is incomplete and needs something to complete it. Whereas, Allaah Says (what means): {This day I have perfected for you your religion and completed My favour upon you and have chosen Islam as religion for you.}[Quran 5:3]. Allaah further Says (what means): {And whoever desires other than Islam as a religion-never will it be accepted from him, and he, in the Hereafter, will be among the losers.}[Quran 3:85]. Allaah also Says (what means): {So is it other than the religion of Allaah they desire?}[Quran 3:83]. In another verse Allaah Says (what means): {Then is it the judgment of [the time of] ignorance they desire? But who is better than Allaah in judgment for a people who are certain [in faith].}[Quran 5:50].
Allaah Knows best.