Islamic Finance


There is no religion that provides absolute guidance on economics besides Islam. There are thirty five verses in the Quran regarding economics. The longest verse of the Quran deals with credit related issues. Twenty three years of revelation finally concluded after pronouncing the prohibition of interest and rights of creditors and compassion for debtors and reminding one of standing in the court of Allah.


وَاتَّقُوا يَوْماً تُرْجَعُونَ فِيهِ إِلَى اللَّهِ ثُمَّ تُوَفَّى كُلُّ نَفْسٍ مَا كَسَبَتْ وَهُمْ لا يُظْلَمُونَ


{And fear the day when you shall be brought back to God. Then shall every soul be paid what it earned and none shall be dealt with unjustly.}

[Quran, chapter 2, verse 281]

The Islamic system of economics is unfortunately misunderstood to be confined to the finance systems of Murabaha and Mudaraba. When these models are not workable then Ijarah and Masharakah systems are engineered.

 

 

While Islamic banks and Islamic windows in conventional banks offer Islamic finance and global and regional conferences on Islamic finance focus on these products, the reality is Islamic finance and economics is much deeper than what people think it to be. Imam Bukhari (Rahmatullahi alayh) presents at least 471 Ahadith on various aspects of economics. This is besides the 1000's of Ahadith on economics in other books of Ahadith and the many thousands of laws on economics extracted by our illustrious Fuqaha. While attending a conference or seminar on Islamic finance or doing an online course on economics may be useful, the reality is it is not even equivalent to a drop in the ocean. Our focus on Islamic economics is to conscientize people on being prepared to answer the following questions by Allah on the Day of Judgement.


Where did you earn your wealth from?


And where did you spend your wealth?


The Hadith clearly shows we are regulated in how we earn our income and how we spend our income. Our salvation in the hereafter depends on how we conduct our financial affairs.


In order to achieve eternal success, the Darul Iftaa conducts Shariah compliant business campaigns attended by thousands of people from all walks of life. The campaign identifies un-Islamic business practices in the business sector and brings that to the attention of the people. Our approach is a pro active one in which we offer a Shariah compliant alternate way of doing that business.


The Darul Iftaa also provides Shariah compliant auditing services. Alhamdulillah, many business houses have adjusted their businesses and made them Shariah compliant through this service.


The Darul Iftaa also provides commercial mediation and arbitration and has an excellent success rate in this process.
There is Deen in our Masajid and in our homes. Imagine the extent of Allah's mercy when Deen is in our business houses.
The real test of our Taqwa is in our financial dealings. It is relatively easy to perform Salaah or give Sadaqah or stay away from sins. However, if one stands a chance to earn a million dollars but the transaction is not Shariah compliant, to abandon the million dollars and uphold Shariah is the real Taqwa.

 

To pay a creditor out and make adjustments to ones comfort can only be motivated by Allah consciousness.

KHARWASTAN

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