Economic Life in Islam

“And they are those when spend, are neither extravagant nor miserly, but adopt a middle course between that.” (25:67)

The Holy Qur’an not only regulates the rituals of worship and spiritual domains of human beings but also guides their worldly affairs. Its very approach is equitable and fair, as well as related to ethical and spiritual values. The economic principles of Islam are based on human welfare and provide a just system that is most balanced and beneficial for humanity. Islam is a complete code of life as well as a religion of moderation that follows the middle course to lead a just and balanced life. So, it always encourages the principles of morality, social and economic justice, accountability, and discipline in all matters, and upholds humanitarian values and welfare.

Allah (SWT) has created everything as His blessings and a provision for His creatures. He observes how humans, as Khalifa (Viceroy of Allah) and custodians of earthly wealth and resources make the best use of them in a proper, prudent, and just manner. In order to fulfill this responsibility, Islam has given appropriate guidelines for the establishment of an equitable socio-economic order.

Allah (SWT) does not want to put any hardship on humanity, but He intends to make their life easy. He says: “…. Allah intends ease for you; He does not want you to put to hardship….” (2:185). “Allah intends to lighten your burden, for human being has been created weak.” (4:28). “….. Allah does not intend to burden you, but He intends to purify you, and to complete His blessing upon you, that you may be thankful.” (5:6)

The salient features of economic principles are addressed below:

• Islam advocates a balanced economy free from all types of exploitation and injustice.
• To this end, Islam approves of a simple and moderate lifestyle that is congenial to moral and spiritual development for all.

• It shuns extravagance and excessive materialistic approach to life.
• It prefers a middle course avoiding miserliness and a crave for earthly pleasures and luxuries. (25:67)

• Islam supports the economical use of natural resources and condemns any type of wastage or misuse. (17:26)

• In Islam, everyone is accountable to Allah (SWT) for the use of their wealth and resources. (102:8)

• Though Islam allows natural discrimination of wealth among people based on their individual skills and occupations but ensures equal opportunities for all. (16:71)

• Islam has made Zakat not only an obligatory Ibadah but also a safety net for the poor to ensure socio-economic justice.
• Islam acknowledges the rights of the poor in the wealth of the rich, with a definite portion. (22:41), (6:141)

• An Islamic state has the provision of ‘Baitul Maal’ (public provisions) to meet the basic needs of the poor.

• A Halal earning is an Ibadah in Islam if it is earned in accordance with the guidelines of the Qur’an and Sunnah.
• Islam permits legal businesses that share both profit and loss.

• In Islam, usury is prohibited because of its exploitative and unjust nature.
• Islam wants to establish a just society free of economic exploitation. By far, Islam prioritizes the permanent gains of the Hereafter over the temporary gains of this world.

• Islam approves interest-free loans known as ‘Qarde-Hasana’ (decent loans) for the wellbeing of the needy.

 

 

Islam and the Challenges of World Economic System

In contrast to the above mentioned Islamic economic principles, we can see how modern socialist regimented economies or capitalistic free market economies with putative oligarchy and materialistic approaches all of that cause social tensions. The ever-increasing disparity between the rich and the poor, high rates of unemployment or underemployment, spiraling prices of essential goods and services, and profiteering and unhealthy competition for acquiring wealth, climate and demographic changes —all these are the inherent flaws, weaknesses, and shortcomings of the present economic system, which have posed big socio-political challenges and imbalances in human society. About 1.8 billion people don’t have the tools they need to manage daily life, deal with emergencies, and achieve their dreams.

The Congressional Budget Office report of the USA, supporting the basic claim of the Occupy Wall Street (OWS) movement, shows that over the last quarter century (1979 to 2007, to be exact), the top 1% of income earners enjoyed far, far bigger real income gains than the other 99%. As a result of this perpetual inequality and imbalance in the economy, widespread despair and unrest in society are soaring. Again, the socialistic economy curtails individual freedom to own wealth and property and leads to economic slavery under state management. This system flopped with the disintegration of the Soviet Union, and now both Russia and China, the two major communist countries, are pursuing a free market economy. Islam supports neither a capitalistic or socialistic approach to the economy which has no or little attachment to morality and fairness..

Although slavery has been legally abolished in many countries, it still exists in different forms in developed and developing countries. Such slavery is mostly associated with human trafficking, child labor, and dealing in illegal drugs, prostitution, etc. However, such slavery happens superficially in many countries and goes mostly unpunished. Human trafficking is a global problem where people are coerced into working in slave-like conditions or other forms of abuse and exploitation. It even happens to children—including sexual abuse for monetary profit. Poverty and lack of education are major risk factors that leave children vulnerable to traffickers.

The verses relating to economic life in Islam are quoted below:

هُوَ الَّذِیْ جَعَلَ لَکُمُ الْاَرْضَ ذَلُوْلًا فَامْشُوْا فِیْ مَنَاكِبِهَا وَکُلُوْا مِنْ رِّزْقِہٖ ؕ وَ اِلَیْهِ النُّشُوْرُ۝

“It is He who made the earth subservient to you, so traverse its regions and consume from His provisions. To Him you all be Resurrected.” (67:15)

وَمَا مِنْ دَآبَّۃٍ فِی الْاَرْضِ اِلَّا عَلَی اللّٰهِ رِزْقُهَا وَیَعْلَمُ مُسْتَقَرَّهَا وَمُسْتَوْدَعَهَا ؕ کُلٌّ فِیْ كِتٰبٍ مُّبِیْنٍ۝

“There is no creature on earth, but the sustenance thereof depends on Allah. And He knows where it lives and where it rests. Everything is in a Clear Book.” (11:6)

اَلَّذِیْنَ اِنْ مَّكَنّٰهُمْ فِی الْاَرْضِ اَقَامُوا الصَّلٰوۃَ وَاٰتَوُا الزَّکٰوۃَ وَاَمَرُوْا بِالْمَعْرُوْفِ وَ نَهَوْا عَنِ الْمُنْكَرِ ؕ وَلِلّٰهِ عَاقِبَۃُ الْاُمُوْرِ ۝

“(Believers are) those who, if We establish them in the land, will establish regular prayer and pay Zakat (poor-due), enjoin the right and forbid wrong: with Allah rests the end (and decision) of (all) affairs.” (22:41)

وَاللّٰهُ فَضَّلَ بَعْضَکُمْ عَلٰی بَعْضٍ فِی الرِّزْقِ ۚ فَمَا الَّذِیْنَ فُضِّلُوْا بِرَآدِّیْ رِزْقِهِمْ عَلٰی مَا مَلَكَتْ اَیْمَانُهُمْ فَهُمْ فِیْهِ سَوَآءٌ ؕ اَفَبِنِعْمَۃِ اللّٰهِ یَجْحَدُوْنَ ۝

“Allah has preferred some of you to others in allotting livelihood provisions, those more favored do not give that much of their provision to those are their subservient, so as to be equal in that respect. Will they then deny the favors of Allah?” (16:71)

وَاٰتِ ذَاالْقُرْبٰی حَقَّہٗ وَالْمِسْكِیْنَ وَابْنَ السَّبِیْلِ وَلَا تُبَذِّرْ تَبْذِیْرًا ۝ اِنَّ الْمُبَذِّرِیْنَ كَانُوْۤا اِخْوَانَ الشَّیٰطِیْنِ ؕ وَكَانَ الشَّیْطٰنُ لِرَبِّہٖ كَفُوْرًا ۝ وَاِمَّا تُعْرِضَنَّ عَنْهُمُ ابْتِغَآءَ رَحْمَۃٍ مِّنْ رَّبِّكَ تَرْجُوْهَا فَقُلْ لَّهُمْ  قَوْلًا مَّیْسُوْرًا ۝

“And give the relative his rights, and the poor, and the wayfarer, and do not squander wastefully. The extravagant are brethren of the Satan, and the Satan is ever ungrateful to his Lord. But if you are to avert them, seek mercy from your Lord which you hope for, then say to them words of consolation.” (17:26 – 28)

وَلَا تَجْعَلْ یَدَكَ مَغْلُوْلَۃً اِلٰی عُنُقِكَ وَلَا تَبْسُطْهَا کُلَّ الْبَسْطِ فَتَقْعُدَ مَلُوْمًا مَّحْسُوْرًا۝ اِنَّ رَبَّكَ یَبْسُطُ الرِّزْقَ لِمَنْ یَّشَآءُ وَیَقْدِرُ ؕ اِنَّہٗ كَانَ بِعِبَادِہٖ خَبِیْرًۢا بَصِیْرًا ۝

“Make not your hand tied (like a niggard) to your neck, nor stretch it forth to its utmost reach (like an extravagant), so that you become blameworthy and destitute. Your Lord expands the provision for whomever He wills and restricts it. He is fully Informed, Observant of His servants.” (17:29 – 30)

وَلَا تَقْتُلُوْۤا اَوْلَادَکُمْ خَشْیَۃَ اِمْلَاقٍ ؕ نَحْنُ نَرْزُقُهُمْ وَاِیَّاکُمْ ؕ اِنَّ قَتْلَهُمْ كَانَ خِطْاً كَبِیْرًا۝

“And do not kill your children for fear of poverty. We provide for them, and for you. Killing them is a grave sin.” (17: 31)

الَّذِیْنَ یَبْخَلُوْنَ وَیَاْمُرُوْنَ النَّاسَ بِالْبُخْلِ ؕ وَمَنْ یَّتَوَلَّ فَاِنَّ اللّٰهَ هُوَ الْغَنِیُّ الْحَمِیْدُ ۝

“Those who are stingy and induce people to be stingy – Whoever turns away (should know that) Allah is favors beyond any need, the most Praiseworthy.” (57:24)

وَ الَّذِیْنَ اِذَاۤ اَنْفَقُوْا لَمْ یُسْرِفُوْا وَلَمْ یَقْتُرُوْا وَكَانَ بَیْنَ ذٰلِكَ قَوَامًا ۝

“And they are those when spend, are neither extravagant nor miserly, but adopt a middle course between that.” (25:67)

یٰۤاَیُّهَا الَّذِیْنَ اٰمَنُوْا لَا تَاْکُلُوْۤا اَمْوَالَکُمْ بَیْنَکُمْ بِالْبَاطِلِ اِلَّاۤ اَنْ تَکُوْنَ تِجَارَۃً عَنْ تَرَاضٍ مِّنْکُمْ وَلَا تَقْتُلُوْۤا اَنْفُسَکُمْ ؕ اِنَّ اللّٰهَ كَانَ بِکُمْ رَحِیْمًا ۝ وَمَنْ یَّفْعَلْ ذٰلِكَ عُدْوَانًا وَظُلْمًا فَسَوْفَ نُصْلِیْهِ نَارًا ؕ وَكَانَ ذٰلِكَ عَلَی اللّٰهِ یَسِیْرًا ۝

“O Believers!  Do not consume each other’s wealth illicitly, but trade by mutual consent is legitimate. And do not kill yourselves, for Allah is Merciful towards you. Whoever does that out of hostility and wrongdoing – We will cast him into a Fire. And that would be easy for Allah.” (4:29 – 30)

وَهُوَ الَّذِیْۤ اَنْشَاَ جَنّٰتٍ مَّعْرُوْشٰتٍ وَغَیْرَ مَعْرُوْشٰتٍ وَالنَّخْلَ وَالزَّرْعَ مُخْتَلِفًا اُکُلُہٗ وَالزَّیْتُوْنَ وَالرُّمَّانَ مُتَشَابِہًا وَغَیْرَ مُتَشَابِہٍ ؕ کُلُوْا مِنْ ثَمَرِہٖۤ اِذَاۤ اَثْمَرَ وَاٰتُوْا حَقَّہٗ یَوْمَ حَصَادِہٖ ۫ۖ وَلَا تُسْرِفُوْا ؕ اِنَّہٗ لَا یُحِبُّ الْمُسْرِفِیْنَ ۝

“It is He who created orchards, that are either trellised or not trellised, and date palms, crops of diverse tastes, and olives and pomegranates, similar and dissimilar. Eat of its fruit when it yields, and give its due (Zakat/Ushar) on the day of its harvest, and do not waste. He does not love the wasteful.” (6:141)

وَ اِذَاۤ اَذَقْنَا النَّاسَ رَحْمَۃً فَرِحُوْا بِهَا ؕ وَ اِنْ تُصِبْهُمْ سَیِّئَۃٌۢ  بِمَا قَدَّمَتْ اَیْدِیْهِمْ  اِذَا هُمْ یَقْنَطُوْنَ ۝ اَوَ لَمْ یَرَوْا اَنَّ اللّٰهَ یَبْسُطُ الرِّزْقَ لِمَنْ یَّشَآءُ وَیَقْدِرُ ؕ اِنَّ فِیْ ذٰلِكَ لَاٰیٰتٍ لِّقَوْمٍ یُّؤْمِنُوْنَ ۝

“When We give people a taste of mercy, they rejoice in it. But when adversity befalls them, because of what their hands have perpetrated, they begin to despair. Do they not see that Allah expands the provision for whomever He wills, or restricts it? Surely in this are signs for people who believe” (30:36 – 37).

اَهُمْ یَقْسِمُوْنَ رَحْمَتَ رَبِّكَ ؕ نَحْنُ قَسَمْنَا بَیْنَهُمْ مَّعِیْشَتَهُمْ فِی الْحَیٰوۃِ الدُّنْیَا وَرَفَعْنَا بَعْضَهُمْ فَوْقَ بَعْضٍ دَرَجٰتٍ لِّیَتَّخِذَ بَعْضُهُمْ بَعْضًا سُخْرِیًّا ؕ وَرَحْمَتُ رَبِّكَ خَیْرٌ مِّمَّا یَجْمَعُوْنَ۝

“Is it they who distribute the Mercy of your Lord? It is We Who allocate their livelihood amongst them in the life of this world: and We raise some of them above others in ranks, so that some may command work from others (for mutual benefits). But the Mercy of your Lord is better than the (wealth) which they amass.” (43:32)

اَلَّذِیْنَ یُنْفِقُوْنَ اَمْوَالَهُمْ بِالَّیْلِ وَالنَّهَارِ سِرًّا وَعَلَانِیَۃً فَلَهُمْ اَجْرُهُمْ عِنْدَ رَبِّهِمْ ۚ وَلَا خَوْفٌ عَلَیْهِمْ وَلَا هُمْ یَحْزَنُوْنَ۝

“Those who spend their wealth by night and day, privately and publicly, will receive their reward from their Lord. They have nothing to fear, nor shall they grieve.” (2:274)

وَلَوْ بَسَطَ اللّٰهُ الرِّزْقَ لِعِبَادِہٖ لَبَغَوْا فِی الْاَرْضِ وَلٰكِنْ یُّنَزِّلُ بِقَدَرٍ مَّا یَشَآءُ ؕ اِنَّہٗ بِعِبَادِہٖ خَبِیْرٌۢ  بَصِیْرٌ ۝

“If Allah were to increase the provision to His servants, they would transgress on earth; but He sends down in precise measure whatever He wills. Surely, He is well aware and Observant regarding His servants.” (42:27)

ظَهَرَ الْفَسَادُ فِی الْبَرِّ وَالْبَحْرِ بِمَا كَسَبَتْ اَیْدِی النَّاسِ لِیُذِیْقَهُمْ بَعْضَ الَّذِیْ عَمِلُوْا لَعَلَّهُمْ یَرْجِعُوْنَ ۝

“Disaster has spread out in the land and sea, because of what people’s hands have earned (corruption), in order to make them taste punishment some of what they have done, so that they might return (to right track). (30:41)

اَلْهٰکُمُ التَّكَاثُرُ ۝ حَتّٰی زُرْتُمُ الْمَقَابِرَ ۝ كَلَّا سَوْفَ تَعْلَمُوْنَ ۝ ثُمَّ كَلَّا سَوْفَ تَعْلَمُوْنَ ۝ كَلَّا لَوْ تَعْلَمُوْنَ عِلْمَ الْیَقِیْنِ ۝  لَتَرَوُنَّ الْجَحِیْمَ ۝ ثُمَّ لَتَرَوُنَّهَا عَیْنَ الْیْنِ ۝ ثُمَّ لَتُسْـَٔلُنَّ یَوْمَئِذٍ عَنِ النَّعِیْمِ۝

“Abundance distracts you. Until you visit the graveyards. Indeed, you will know. Certainly, you will know. If you knew with knowledge of certainty. You would see the Hell Fire. Then you will see it with certainty of sight. Then, on that Day, you will be questioned about the favors (of worldly life).” (102:1 – 8)

یٰۤاَیُّهَا الَّذِیْنَ اٰمَنُوْۤا اِنَّ كَثِیْرًا مِّنَ الْاَحْبَارِ وَالرُّهْبَانِ لَیَاْکُلُوْنَ اَمْوَالَ النَّاسِ بِالْبَاطِلِ وَیَصُدُّوْنَ عَنْ سَبِیْلِ اللّٰهِ ؕ وَالَّذِیْنَ یَکْنِزُوْنَ الذَّهَبَ وَالْفِضَّۃَ وَلَا یُنْفِقُوْنَهَا فِیْ سَبِیْلِ اللّٰهِ ۙ  فَبَشِّرْهُمْ بِعَذَابٍ اَلِیْمٍ۝

“O Believers!  Lo! many of the (Jewish) rabbis and the (Christian) monks devour the wealth of mankind wantonly and debar (people) from the way of Allah. Those who hoard up gold and silver and spend it not in the way of Allah, (O Prophet) give tidings of a painful doom unto them” (9:34)

 

 

Principles of Just and Balanced Distribution of Wealth

“And in the wealth of those people there is a rightful share, for the beggars and the deprived ones.” (70:24 – 25)

Islam has set some principles for distribution of wealth, which are equitable, balanced, and based on social justice. Allah (SWT) has made humans the custodians of their own wealth and resources. So, if anyone fails to spend in the way of Allah, they will surely face the accountability. (9:34)

The key principles of this policy are discussed below:

• The accumulation of wealth is a test for human beings. Allah (SWT) will make them accountable for how they earn and spend their wealth. (3:186)

• To whom Allah (SWT) has given abundance, He wants them to consume sparingly and distribute the surplus income to the poor and disadvantaged people. (16:71)

• Allah (SWT) has granted to the poor a definite portion of the wealth of the rich people to be distributed annually through Zakat system. (70:24 – 25)

• Besides Zakat, Islam also ensures proper distribution of wealth through the Law of Succession, Wasiyat (Will), Waqaf (Public Donation), and Infaq (Charity).

Islam’s equitable distribution system has restricted the accumulation of wealth in the hands of a few. In Islam, Zakat (mandatory charity) and Sadaqa (voluntary charity) both are very important channels for the distribution of wealth from the rich to the poor. Muslims who possess a requisite amount of surplus financial or physical assets equivalent to around 3 ounces of gold or 21 ounces of silver are required to pay two and a half percent as Zakat to the poor annually. Islam’s law of inheritance is another means to channelize wealth among the inheritors.

The verses on the above topic are cited below:

وَالَّذِیْنَ فِیْۤ اَمْوَالِهِمْ حَقٌّ مَّعْلُوْمٌ ۝ لِّلسَّآئِلِ وَالْمَحْرُوْمِ ۝

“And in the wealth of those people there is a rightful share, for the beggars and the deprived ones.” (70:24 – 25)

لَتُبْلَوُنَّ فِیْۤ اَمْوَالِکُمْ وَاَنْفُسِکُمْ

“Obviously you will be tested through your assets and your persons …..” (3:186)

اِنَّمَا الصَّدَقٰتُ لِلْفُقَرَآءِ وَالْمَسٰكِیْنِ وَالْعٰمِلِیْنَ عَلَیْهَا وَالْمُؤَلَّفَۃِ قُلُوْبُهُمْ وَفِی الرِّقَابِ وَالْغٰرِمِیْنَ وَفِیْ سَبِیْلِ اللّٰهِ وَابْنِ السَّبِیْلِ ؕ فَرِیْضَۃً مِّنَ اللّٰهِ ؕ وَاللّٰهُ عَلِیْمٌ حَكِیْمٌ۝

“Charities (Zakat) are for the poor, and the destitute, and those who administer them, and for reconciling hearts, and for freeing slaves, and for those in debt, and striving in the path of Allah, and for the traveler in need – (it is) an obligation from Allah. Allah is All-Knowing, Most Wise.” (9:60)

مَاۤ اَفَآءَ اللّٰهُ عَلٰی رَسُوْلِہٖ مِنْ اَهْلِ الْقُرٰی فَلِلّٰهِ وَلِلرَّسُوْلِ وَ لِذِی الْقُرْبٰی وَالْیَتٰمٰی وَالْمَسٰكِیْنِ وَابْنِ السَّبِیْلِ ۙ  كَیْ لَا یَکُوْنَ دُوْلَۃًۢ بَیْنَ الْاَغْنِیَآءِ مِنْکُمْ ؕ وَمَاۤ اٰتٰىکُمُ الرَّسُوْلُ فَخُذُوْهُ ^ق وَمَا نَهٰىکُمْ عَنْهُ فَانْتَهُوْا ۚ وَ اتَّقُوا اللّٰهَ ؕ اِنَّ اللّٰهَ شَدِیْدُ الْعِقَابِ۝

“Whatever Allah gave to His Messenger from the inhabitants of the villages belongs to Allah, and to the Messenger, and to the relatives, and to the orphans, and to the poor, and to the wayfarer; so that it may not be accumulated solely between the wealthy among you. Whatever the Messenger gives you, accept it; and whatever he forbids you, abstain from it. And fear Allah. Allah is severe in punishment.” (59:7)

یَسْـَٔلُوْنَكَ مَا ذَا یُنْفِقُوْنَ ۬ؕ قُلْ مَاۤ اَنْفَقْتُمْ مِّنْ خَیْرٍ فَلِلْوَالِدَیْنِ وَالْاَقْرَبِیْنَ وَالْیَتٰمٰی وَالْمَسٰكِیْنِ وَابْنِ‌السَّبِیْلِ ؕ وَمَا تَفْعَلُوْا مِنْ خَیْرٍ فَاِنَّ اللّٰهَ بِہٖ عَلِیْمٌ ۝

“They ask you what they should spend. Say, ‘Whatever charity you give is for the parents, and the relatives, and the orphans, and the poor, and the wayfarer. Whatever good you do, Allah is indeed aware of it.” (2:215)

لِلرِّجَالِ نَصِیْبٌ مِّمَّا تَرَكَ الْوَالِدٰنِ وَالْاَقْرَبُوْنَ ۪ وَلِلنِّسَآءِ نَصِیْبٌ مِّمَّا تَرَكَ الْوَالِدٰنِ وَالْاَقْرَبُوْنَ مِمَّا قَلَّ مِنْهُ اَوْ كَثُرَ ؕ نَصِیْبًا مَّفْرُوْضًا ۝ وَ اِذَا حَضَرَ الْقِسْمَۃَ اُولُوا الْقُرْبٰی وَالْیَتٰمٰی وَالْمَسٰكِیْنُ فَارْزُقُوْهُمْ مِّنْهُ وَقُوْلُوْا لَهُمْ قَوْلًا مَّعْرُوْفًا ۝

“Men receive a share of what their parents and relatives leave, and women receive a share of what their parents and relatives leave; be it little or much — a fixed share. At the time of distribution (of inherited property) if it is attended by the relatives, and the orphans, and the needy, give them something out of it, and speak to them kindly.” (4:7 – 8)

تَدْعُوْا مَنْ اَدْبَرَ وَتَوَلّٰی ۝ وَ جَمَعَ  فَاَوْعٰی ۝ اِنَّ الْاِنْسَانَ خُلِقَ هَلُوْعًا ۝ اِذَا مَسَّهُ الشَّرُّ جَزُوْعًا۝ وَ اِذَا مَسَّهُ الْخَیْرُ مَنُوْعًا ۝

“It (Hell Fire) invites him who once turned his back and fled (from truth). And accumulated and hoarded (wealth). Man was created restless. If touched by adversity, he becomes fretful and if touched by good, he becomes stingy.” (70:17 – 21)

ا لَّذِیْ جَمَعَ مَالًا وَعَدَّدَہٗ ۝ یَحْسَبُ اَنَّ مَالَہٗۤ اَخْلَدَہٗ ۝ كَلَّا لَیُنْۢبَذَنَّ فِی الْحُطَمَۃِ ۝ وَ مَاۤ اَدْرٰىكَ مَا الْحُطَمَۃُ ۝ نَارُ اللّٰهِ الْمُوْقَدَۃُ ۝ الَّتِیْ تَطَّلِعُ عَلَی الْاَفْـِٕدَۃِ ۝ اِنَّهَا عَلَیْهِمْ مُّؤْصَدَۃٌ ۝ فِیْ عَمَدٍ مُّمَدَّدَۃٍ ۝

“Who gathers wealth and counts it over. Thinking that his wealth has made him immortal. By no means. He will be thrown into the Crusher. And what will make you realize what the Crusher is? It is kindled Fire of Allah – that penetrates to the hearts. It will certainly be locked over them – in extended columns.” (104:2 – 9)

 وَالَّذِیْنَ یَکْنِزُوْنَ الذَّهَبَ وَالْفِضَّۃَ وَلَا یُنْفِقُوْنَهَا فِیْ سَبِیْلِ اللّٰهِ ۙ  فَبَشِّرْهُمْ بِعَذَابٍ اَلِیْمٍ۝

“…. Those who hoard up gold and silver and spend it not in the way of Allah, (O Prophet) give tidings of a painful doom unto them” (9:34)

وَ اِذَا تَوَلّٰی سَعٰی فِی الْاَرْضِ لِیُفْسِدَ فِیْهَا وَیُہْلِكَ الْحَرْثَ وَالنَّسْلَ ؕ وَاللّٰهُ لَا یُحِبُّ الْفَسَادَ ۝ وَاِذَا قِیْلَ لَهُ اتَّقِ اللّٰهَ اَخَذَتْهُ الْعِزَّۃُ بِالْاِثْمِ فَحَسْبُہٗ جَهَنَّمُ ؕ وَلَبِئْسَ الْمِهَادُ ۝

“When he gains power, he strives to spread corruption on earth, destroying properties and lives. Allah does not like corruption. And when he is told, ‘Beware of Allah,’ his pride leads him to more sin. Hell is enough for him — a dreadful abode.” (2:205 – 206)

وَتُحِبُّوْنَ الْمَالَ حُبًّا جَمًّا۝ كَلَّا

“And you love wealth with immense love. Never (do it)” (89:20 – 21)

لَیْسَ الْبِرَّ اَنْ تُوَلُّوْا وُجُوْهَکُمْ قِبَلَ الْمَشْرِقِ وَالْمَغْرِبِ وَلٰكِنَّ الْبِرَّ مَنْ اٰمَنَ بِاللّٰهِ وَالْیَوْمِ الْاٰخِرِ وَالْمَلٰٓئِكَۃِ وَالْكِتٰبِ وَالنَّبِیّٖنَ ۚ وَاٰتَی الْمَالَ عَلٰی حُبِّہٖ ذَوِی الْقُرْبٰی وَالْیَتٰمٰی وَالْمَسٰكِیْنَ وَابْنَ السَّبِیْلِ ۙ وَالسَّآئِلِیْنَ وَفِی الرِّقَابِ ۚ وَاَقَامَ الصَّلٰوۃَ وَاٰتَی الزَّکٰوۃَ ۚ وَالْمُوْفُوْنَ بِعَہْدِهِمْ اِذَا عٰهَدُوْا ۚ وَالصّٰبِرِیْنَ فِی الْبَاْسَآءِ وَالضَّرَّآءِ وَحِیْنَ الْبَاْسِ ؕ اُولٰٓئِكَ الَّذِیْنَ صَدَقُوْا ؕ وَاُولٰٓئِكَ هُمُ الْمُتَّقُوْنَ ۝

“It is not righteousness that you turn your faces towards east or west; but it is righteousness to believe in Allah and the Last Day, and the Angels, and the Book, and the Messengers; to spend of your wealth, out of love for Him, for your kin, for orphans, for the needy, for the wayfarer, for those who ask, and for the ransom of slaves; to be steadfast in prayer, and practice regular charity; to fulfill the contracts which you have made; and to be firm and patient, in pain (or suffering) and adversity, and throughout all periods of panic. Such are the people of truth, the righteous.” (2:177)

 

 

Principles Earnings and Spending

In Islam, earning and spending are both guided by the principles of Halal (legality) and Haram (illegality). Halal earning is a precondition for acceptance of Ibadah to Almighty Allah (SWT). Everyone shall have to face accountability before Him about one’s earning and spending on the Day of Judgement.

Islam prohibits spending in a whimsical manner without any consideration. Islam does not allow the spending of wealth to serve one’s selfish end. It approves of neither a luxurious nor a miserly life. Rather it has prescribed a medium standard of living for the benefit of the family as well as society. Islam encourages to spend sparingly and urges to avoid lavish and unnecessary spending. It emphasizes spending of surplus income for the relatives, poor and needy people as an act of great reward from Allah (SWT).

Islam has legalized all kinds of livelihood activities including trade and commerce, farming and industry involved with Halal products. Earning through bribery, usury, gambling, stealing and robbery, usurping others’ properties, absentee farming, feudalism, and production and trading of Haram products like liquor and substance, harmful and adulterated things, monopoly and speculative business, etc. are strictly prohited in Islam. Also, Islam does not allow any type of obscenity, fraudulence and falsehood in buying and selling. It urges to maintain transparency in all kinds of transactions.

The verses on the above topic are given below:

قُلْ لَّا یَسْتَوِی الْخَبِیْثُ وَالطَّیِّبُ وَلَوْ اَعْجَبَكَ كَثْرَۃُ الْخَبِیْثِ ۚ فَاتَّقُوا اللّٰهَ یٰۤاُولِی الْاَلْبَابِ لَعَلَّکُمْ تُفْلِحُوْنَ ۝

“(O Prophet) Say: ‘The impure and the pure are not equal, even though the abundance of the impure may impress you. So be conscious of Allah, O you who possess intelligence, that you may succeed.” (5:100)

یٰۤاَیُّهَا الَّذِیْنَ اٰمَنُوْا لَا تَاْکُلُوْۤا اَمْوَالَکُمْ بَیْنَکُمْ بِالْبَاطِلِ اِلَّاۤ اَنْ تَکُوْنَ تِجَارَۃً عَنْ تَرَاضٍ مِّنْکُمْ وَلَا تَقْتُلُوْۤا اَنْفُسَکُمْ ؕ اِنَّ اللّٰهَ كَانَ بِکُمْ رَحِیْمًا۝

“O Believers!  Do not devour another’s wealth illicitly but make deal by trade based on mutual consent. And do not kill yourselves, for Allah is Merciful towards you.” (4:29)

..… وَاَحَلَّ اللّٰهُ الْبَیْعَ وَحَرَّمَ الرِّبٰوا ؕ  ….

“…… But Allah has permitted business and has forbidden usury…….” (2:275)

فَاِذَا قُضِیَتِ الصَّلٰوۃُ فَانْتَشِرُوْا فِی الْاَرْضِ وَابْتَغُوْا مِنْ فَضْلِ اللّٰهِ وَاذْکُرُوا اللّٰهَ كَثِیْرًا لَّعَلَّکُمْ تُفْلِحُوْنَ ۝

“Then, when the prayer is concluded, disperse through the land, and seek Allah’s bounty (for livelihood), and remember Allah much, so that you may prosper.” (62:10)

وَ اِذَا قِیْلَ لَهُمْ اَنْفِقُوْا مِمَّا رَزَقَکُمُ اللّٰهُ ۙ قَالَ الَّذِیْنَ كَفَرُوْا لِلَّذِیْنَ اٰمَنُوْۤا اَنُطْعِمُ مَنْ لَّوْ یَشَآءُ اللّٰهُ  اَطْعَمَہٗۤ ٭ۖ    اِنْ اَنْتُمْ  اِلَّا فِیْ ضَلٰلٍ مُّبِیْنٍ ۝

“And when it is said to them, ‘Spend from what Allah has provided for you,’ those who disbelieve say to those who believe, ‘Shall we feed someone whom Allah could feed, if He so willed? You must be deeply misguided’.” (36:47)

وَ لَا تَاْکُلُوْۤا اَمْوَالَکُمْ بَیْنَکُمْ بِالْبَاطِلِ وَتُدْلُوْا بِهَاۤ اِلَی الْحُكَامِ لِتَاْکُلُوْا فَرِیْقًا مِّنْ اَمْوَالِ النَّاسِ بِالْاِثْمِ وَاَنْتُمْ تَعْلَمُوْنَ ۝

“And do not consume one another’s wealth by unjust means, nor offer it as bribes to the officials in order to consume part of other people’s wealth illicitly, while you know.” (2:188)

وَ هَدَیْنٰهُ النَّجْدَیْنِ ۝ فَلَا اقْتَحَمَ الْعَقَبَۃَ ۝ وَمَاۤ اَدْرٰىكَ مَا الْعَقَبَۃُ ۝ فَکُّ رَقَبَۃٍ ۝ اَوْ اِطْعٰمٌ فِیْ یَوْمٍ ذِیْ مَسْغَبَۃٍ ۝ یَّتِیْمًا ذَا مَقْرَبَۃٍ ۝ اَوْ مِسْكِیْنًا ذَا مَتْرَبَۃٍ ۝ ثُمَّ كَانَ مِنَ الَّذِیْنَ اٰمَنُوْا وَتَوَاصَوْا بِالصَّبْرِ وَتَوَاصَوْا بِالْمَرْحَمَۃِ ۝ اُولٰٓئِكَ اَصْحٰبُ الْمَیْمَنَۃِ۝

“And We showed him the two ways? But he did not dare the ascent. And what will explain to you what the ascent is? The freeing of a slave – or the feeding on the days of famine to an orphan kin, or a destitute in the dust. Then to become one of those who believe, and advise one another to patience, and advise one another to kindness. These are the people of happiness.” (90:10 – 18)

یٰۤاَیُّهَا الَّذِیْنَ اٰمَنُوْۤا اَنْفِقُوْا مِمَّا رَزَقْنٰکُمْ مِّنْ قَبْلِ اَنْ یَّاْتِیَ یَوْمٌ لَّا بَیْعٌ فِیْهِ وَلَا خُلَّۃٌ وَلَا شَفَاعَۃٌ ؕ وَالْکٰفِرُوْنَ هُمُ الظّٰلِمُوْنَ۝

“O Believers!  Spend out of (the bounties) We have provided for you, before the Day comes when there will be no bargaining, nor friendship nor intercession. Those who reject Faith they are the wrongdoers.” (2:254)

یٰۤاَیُّهَا الَّذِیْنَ اٰمَنُوْا لَا تُلْهِکُمْ اَمْوَالُکُمْ وَلَاۤ اَوْلَادُکُمْ عَنْ ذِکْرِ اللّٰهِ ۚ وَمَنْ یَّفْعَلْ ذٰلِكَ فَاُولٰٓئِكَ هُمُ الْخٰسِرُوْنَ ۝ وَاَنْفِقُوْا مِنْ مَّا رَزَقْنٰکُمْ مِّنْ قَبْلِ اَنْ یَّاْتِیَ اَحَدَکُمُ الْمَوْتُ فَیَقُوْلَ رَبِّ لَوْ لَاۤ اَخَّرْتَنِیْۤ اِلٰۤی اَجَلٍ قَرِیْبٍ ۙ فَاَصَّدَّقَ وَاَکُنْ مِّنَ الصّٰلِحِیْنَ ۝ وَلَنْ یُّؤَخِّرَ اللّٰهُ نَفْسًا اِذَا جَآءَ اَجَلُهَا ؕ وَاللّٰهُ خَبِیْرٌۢ بِمَا تَعْمَلُوْنَ ۝

“O Believers!  Let neither your assets nor your children distract you from the remembrance of Allah. Whoever does that — these are the losers. And give from what We have provided for you, before death approaches one of you, and he says, ‘My Lord, if only You would delay me for a short while, so that I may be charitable, and be one of the righteous.’ But Allah will not delay a soul when its time has come. Allah is Informed of what you do.” (63:9 – 11)

وَلَا تَتَمَنَّوْا مَا فَضَّلَ اللّٰهُ بِہٖ بَعْضَکُمْ عَلٰی بَعْضٍ ؕ لِلرِّجَالِ نَصِیْبٌ مِّمَّا اکْتَسَبُوْا ؕ وَلنِّسَآءِ نَصِیْبٌ مِّمَّا اکْتَسَبْنَ ؕ وَسْئَلُوا اللّٰهَ مِنْ فَضْلِہٖ ؕ اِنَّ اللّٰهَ كَانَ بِکُلِّ شَیْءٍ عَلِیْمًا ۝

“Do not desire what Allah has given to some of you in preference to others. For men is a share of what they have earned, and for women is a share of what they have earned. And ask Allah of his favor. Indeed, Allah has knowledge of everything.” (4:32)

وَلَا یَحْسَبَنَّ الَّذِیْنَ یَبْخَلُوْنَ بِمَاۤ اٰتٰهُمُ اللّٰهُ مِنْ فَضْلِہٖ هُوَ خَیْرًا لَّهُمْ ؕ بَلْ هُوَ شَرٌّ لَّهُمْ ؕ سَیُطَوَّقُوْنَ مَا بَخِلُوْا بِہٖ یَوْمَ الْقِیٰمَۃِ ؕ وَلِلّٰهِ مِیْرَاثُ السَّمٰوٰتِ وَالْاَرْضِ ؕ وَاللّٰهُ بِمَا تَعْمَلُوْنَ خَبِیْرٌ۝

“Those who act niggardly what Allah has given them of his bounty should not assume that is good for them. In fact, it is evil for them. That which they act miserly will be tied with their necks on the Day of Resurrection. To Allah belongs the inheritance of the heavens and the earth, and Allah is well acquainted with what you do.” (3:180)

فَاَمَّا الْاِنْسَانُ اِذَا مَا ابْتَلٰىهُ رَبُّہٗ فَاَکْرَمَہٗ وَنَعَّمَہٗ ۬ۙ فَیَقُوْلُ رَبِّیْۤ اَکْرَمَنِ ۝ وَاَمَّاۤ اِذَا مَا ابْتَلٰىهُ فَقَدَرَ عَلَیْهِ رِزْقَہٗ ۬ۙ  فَیَقُوْلُ رَبِّیْۤ اَهَانَنِ ۝ كَلَّا بَلْ لَّا تُکْرِمُوْنَ الْیَتِیْمَ ۝ وَلَا تَحٰٓضُّوْنَ عَلٰی طَعَامِ الْمِسْكِیْنِ ۝ وَتَاْکُلُوْنَ التُّرَاثَ اَکْلًا لَّمًّا ۝ وَ تُحِبُّوْنَ الْمَالَ حُبًّا جَمًّا ۝

“As for man, whenever his Lord tests him, then honors him and prospers him, he says, ‘My Lord has honored me.’ But whenever He tests him, and restricts his livelihood for him, he says, ‘My Lord has disgraced me.’ Not at all. But you do not regard the orphan. And you do not urge each other to feed the poor. And you devour inheritance of the weak people with all greed. And you love wealth intensely.” (89:15 – 20)

وَلَا تَقْتُلُوْٓا اَوْلٰدَكُمْ خَشْيَةَ اِمْلٰقٍ نَّحْنُ نَرْزُقُهُمْ وَاِيْاكُمْ اِنَّ قَتْلَهُمْ كَانَ خِطْـًٔا كَبِيْرًا۝

“Kill not your children for fear of poverty: We shall provide sustenance for them as well as for you. Verily the killing of them is a great sin.” (17:31)

اِنَّمَاۤ اَمْوَالُکُمْ وَاَوْلَادُکُمْ فِتْنَۃٌ ؕ وَاللّٰهُ عِنْدَہٗۤ  اَجْرٌ عَظِیْمٌ ۝ فَاتَّقُوا اللّٰهَ مَا اسْتَطَعْتُمْ وَاسْمَعُوْا وَاَطِیْعُوْا وَاَنْفِقُوْا خَیْرًا لِّاَنْفُسِکُمْ ؕ وَمَنْ یُّوْقَ شُحَّ نَفْسِہٖ فَاُولٰٓئِكَ هُمُ الْمُفْلِحُوْنَ۝

“Your assets and your children are a test, but with Allah is a splendid reward. So be conscious of Allah as much as you can, and listen, and obey, and spend in charity. It is for your own good. Those who are protected from meanness — these are the successful ones.” (64:15 – 16)

اِنَّ الَّذِیْنَ اٰمَنُوْا وَعَمِلُوا الصّٰلِحٰتِ وَاَقَامُوا الصَّلٰوۃَ وَاٰتَوُا الزَّکٰوۃَ لَهُمْ اَجْرُهُمْ عِنْدَ رَبِّهِمْ ۚ وَلَا خَوْفٌ عَلَیْهِمْ وَلَا هُمْ یَحْزَنُوْنَ۝

Those who believe, and do good deeds, and pray regularly, and give charity — they will have their reward with their Lord; they will have no fear, nor shall they grieve.” (2:277)

 وَمَا تُنْفِقُوْا مِنْ خَیْرٍ فَلِاَنْفُسِکُمْ ؕ وَمَا تُنْفِقُوْنَ اِلَّا ابْتِغَآءَ وَجْهِ اللّٰهِ ؕ وَمَا تُنْفِقُوْا مِنْ خَیْرٍ یُّوَفَّ اِلَیْکُمْ وَاَنْتُمْ لَا تُظْلَمُوْنَ۝

“…… Any charity you give is for your own good. Any charity you give shall be for the sake of Allah. Any charity you give will be repaid to you in full, and you will not be wronged.” (2:272)

 

 

Fairness in Transactions

Both the Holy Qur’an and Hadith have condemned hoarding out of greed and excessive love for wealth and have declared virtue and piety to be the criterion for determining a person’s worth. In Sahih Muslim, Book No. 10, Kitab Al Buyu (The Book of Transactions), the Prophet (ﷺ) emphasizes the importance of maintaining fairness and goodness in every transaction and business deal. Islam approves the following principles for transactions:

• To maintain transparency in quality, and accuracy in measurements and weights.
• To avoid hoarding of essential goods for indefinite period with the motive to create market crises.
• To shun profiteering and be content with the normal profit that is left after payment of dues.
• To avoid false advertising of goods, spreading rumors in the market, raising prices unnecessarily, and engaging in speculative transactions on any product that is not in possession.

The Qur’anic verses on the above topic are cited below:

یٰۤاَیُّهَا الَّذِیْنَ اٰمَنُوْا لَا تَخُوْنُوا اللّٰهَ وَالرَّسُوْلَ وَتَخُوْنُوْۤا اَمٰنٰتِکُمْ وَاَنْتُمْ تَعْلَمُوْنَ ۝ وَاعْلَمُوْۤا اَنَّمَاۤ  اَمْوَالُکُمْ وَاَوْلَادُکُمْ فِتْنَۃٌ ۙ وَاَنَّ اللّٰهَ عِنْدَہٗۤ اَجْرٌ عَظِیْمٌ۝

“O Believers!  Do not betray Allah and the Messenger, nor betray your trusts, while you know. And know that your properties and your children are a test, and indeed to Allah lies an immense reward.” (8:27 – 28)

 اَوْفُوا الْمِکْیَالَ وَالْمِیْزَانَ بِالْقِسْطِ وَلَا تَبْخَسُوا النَّاسَ اَشْیَآءَهُمْ وَلَا تَعْثَوْا فِی الْاَرْضِ مُفْسِدِیْنَ ۝ بَقِیَّتُ اللّٰهِ خَیْرٌ لَّکُمْ اِنْ کُنْتُمْ مُّؤْمِنِیْنَ ۬ۚ وَمَاۤ اَنَا عَلَیْکُمْ بِحَفِیْظٍ ۝

“……. Give full measure and full weight, in all fairness, and do not cheat the people out of their rights, and do not spread corruption in the land. What Allah leaves with you (as profit) is best for you, if you are believers. And I am not a guardian over you.” (11:85 – 86)

وَاَقِيْمُوْا الْوَزْنَ بِالْقِسْطِ وَلَا تُخْسِرُوْا الْمِيْزَانَ۝

“But maintain the weights with justice, and do not violate the balance (by giving short).” (55:9)

وَیْلٌ  لِّلْمُطَفِّفِیْنَ ۝ الَّذِیْنَ اِذَا اکْتَالُوْا عَلَی النَّاسِ یَسْتَوْفُوْنَ ۝ وَ اِذَا كَالُوْهُمْ اَوْ وَّزَنُوْهُمْ یُخْسِرُوْنَ ۝ اَلَا یَظُنُّ اُولٰٓئِكَ اَنَّهُمْ مَّبْعُوْثُوْنَ ۝ لِیَوْمٍ عَظِیْمٍ ۝

“Woe to those (defrauders) who make short in measurement! Those who, when they take a measure from people, they take in full. But when they measure or weigh to others, they cheat. Do they not think that they will be resurrected? For a Great Day?” (83:1 – 5)

وَ اَوْفُوا الْكَیْلَ اِذَا كِلْتُمْ وَزِنُوْا بِالْقِسْطَاسِ الْمُسْتَقِیْمِ ؕ ذٰلِكَ خَیْرٌ وَاَحْسَنُ تَاْوِیْلًا۝

“And give full measure when you measure, and weigh with accurate scales. That is fair, and the best in the end.” (17:35)

وَلَا تُؤْتُوا السُّفَهَآءَ اَمْوَالَکُمُ الَّتِیْ جَعَلَ اللّٰهُ لَکُمْ قِیٰمًا وَارْزُقُوْهُمْ فِیْهَا وَاکْسُوْهُمْ وَقُوْلُوْا لَهُمْ قَوْلًا مَّعْرُوْفًا ۝

“Do not give the immature (orphan) your asset which Allah has granted you as a means of support. But make provision for them out of it, and clothe them, and speak to them with kind words.” (4:5)

 

 

Guidelines for Borrowing and Lending

It is a legal requirement in Islam to keep written records while making a deal of borrowing and lending clarifying the terms and conditions and specified time period in presence of witnesses for transparency. The verse of the Qur’an on this topic is quoted below:

یٰۤاَیُّهَا الَّذِیْنَ اٰمَنُوْۤا اِذَا تَدَایَنْتُمْ بِدَیْنٍ اِلٰۤی اَجَلٍ مُّسَمًّی فَاکْتُبُوْهُ ؕ وَلْیَکْتُبْ بَّیْنَکُمْ كَاتِبٌۢ بِالْعَدْلِ ۪ وَلَا یَاْبَ كَاتِبٌ اَنْ یَّکْتُبَ كَمَا عَلَّمَهُ اللّٰهُ فَلْیَکْتُبْ ۚ وَلْیُمْلِلِ الَّذِیْ عَلَیْهِ الْحَقُّ وَلْیَتَّقِ اللّٰهَ رَبَّہٗ وَلَا یَبْخَسْ مِنْهُ شَیْئًا ؕ فَاِنْ كَانَ الَّذِیْ عَلَیْهِ الْحَقُّ سَفِیْہًا اَوْ ضَعِیْفًا اَوْ لَا یَسْتَطِیْعُ اَنْ یُّمِلَّ هُوَ فَلْیُمْلِلْ وَلِیُّہٗ بِالْعَدْلِ ؕ وَاسْتَشْهِدُوْا شَهِیْدَیْنِ مِنْ رِّجَالِکُمْ ۚ فَاِنْ لَّمْ یَکُوْنَا رَجُلَیْنِ فَرَجُلٌ وَامْرَاَتٰنِ مِمَّنْ تَرْضَوْنَ مِنَ الشُّهَدَآءِ اَنْ تَضِلَّ اِحْدٰىهُمَا فَتُذَكِرَ اِحْدٰىهُمَا الْاُخْرٰی ؕ وَلَا یَاْبَ الشُّهَدَآءُ اِذَا مَا دُعُوْا ؕ وَلَا تَسْـَٔمُوْۤا اَنْ تَکْتُبُوْهُ صَغِیْرًا اَوْ كَبِیْرًا اِلٰۤی اَجَلِہٖ ؕ ذٰلِکُمْ اَقْسَطُ عِنْدَ اللّٰهِ وَاَقْوَمُ لِلشَّهَادَۃِ وَاَدْنٰۤی اَلَّا تَرْتَابُوْۤا اِلَّاۤ اَنْ تَکُوْنَ تِجَارَۃً حَاضِرَۃً تُدِیْرُوْنَهَا بَیْنَکُمْ فَلَیْسَ عَلَیْکُمْ جُنَاحٌ اَلَّا تَکْتُبُوْهَا ؕ وَاَشْهِدُوْۤا اِذَا تَبَایَعْتُمْ ۪ وَلَا یُضَآرَّ كَاتِبٌ وَلَا شَهِیْدٌ ۬ؕ وَ اِنْ تَفْعَلُوْا فَاِنَّہٗ فُسُوْقٌۢ بِکُمْ ؕ وَاتَّقُوا اللّٰهَ ؕ وَیُعَلِّمُکُمُ اللّٰهُ ؕ وَاللّٰهُ بِکُلِّ شَیْءٍ عَلِیْمٌ ۝

“O Believers!  When you contract a debt among yourselves for a certain period of time, write it down. And have a scribe write in your presence, in all fairness. And let no scribe refuse to write, as Allah has taught him. So let him write, and let the debtor dictate. And let him fear Allah, his Lord, and not make more or less from it. But if the debtor is mentally deficient, or weak, or unable to dictate, then let his guardian dictate with honesty. And call to witness two men from among you. If two men are not available, then one man and two women whose testimony is acceptable to all — if one of them fails to remember, the other would remind her. Witnesses must not refuse when called upon. And do not think it too trivial to write down, whether small or large, including the time of repayment. That is more equitable with Allah, and stronger as evidence, and more likely to prevent doubt — except in the case of a spot transaction between you — then there is no blame on you if you do not write it down. And let there be witnesses whenever you conclude a contract, and let no harm be done to either scribe or witness. If you do that, it is corruption on your part. And fear Allah. Allah teaches you. Allah is aware of everything.” (2:282)

وَاِنْ کُنْتُمْ عَلٰی سَفَرٍ وَلَمْ تَجِدُوْا كَاتِبًا فَرِهٰنٌ مَّقْبُوْضَۃٌ ؕ فَاِنْ اَمِنَ بَعْضُکُمْ بَعْضًا فَلْیُؤَدِّ الَّذِی اؤْتُمِنَ اَمَانَتَہٗ وَلْیَتَّقِ اللّٰهَ رَبَّہٗ ؕ وَلَا تَکْتُمُوا الشَّهَادَۃَ ؕ وَمَنْ یَّکْتُمْهَا فَاِنَّہٗۤ اٰثِمٌ قَلْبُہٗ ؕ وَاللّٰهُ بِمَا تَعْمَلُوْنَ عَلِیْمٌ ۝

“If you are on a journey, and cannot find a scribe, then a security deposit should be handed over. But if you trust one another, let the trustee fulfill his trust, and let him fear Allah, his Lord. And do not conceal testimony. Whoever conceals it is sinner at heart. Allah is aware of what you do.” (2:283)

 

 

Qur’anic Verses on Usury and Business

Islam has made business and trading legal on the basis of sharing loss and profit, while usury has been forbidden because it shares no loss but makes a gain on idle money. So, usury is never a borrower-friendly business, as it trades on the misery of needy people and takes interest without any consideration of the borrower’s affordability.

The verses on the above topic are given below:

یٰۤاَیُّهَا الَّذِیْنَ اٰمَنُوْا لَا تَاْکُلُوا الرِّبٰۤوا اَضْعَافًا مُّضٰعَفَۃً وَاتَّقُوا اللّٰهَ لَعَلَّکُمْ تُفْلِحُوْنَ ۝ وَاتَّقُوا النَّارَ الَّتِیْۤ اُعِدَّتْ لِلْکٰفِرِیْنَ ۝

“O you who believe! Do not devour on usury at compound rate, and fear Allah, so that you may prosper. And guard yourselves against the Fire that is prepared for the disbelievers.” (3:130 – 131)

اَلَّذِیْنَ یَاْکُلُوْنَ الرِّبٰوا لَا یَقُوْمُوْنَ اِلَّا كَمَا یَقُوْمُ الَّذِیْ یَتَخَبَّطُهُ الشَّیْطٰنُ مِنَ الْمَسِّ ؕ ذٰلِكَ بِاَنَّهُمْ قَالُوْۤا اِنَّمَا الْبَیْعُ مِثْلُ الرِّبٰوا ۘ وَاَحَلَّ اللّٰهُ الْبَیْعَ وَحَرَّمَ الرِّبٰوا ؕ فَمَنْ جَآءَہٗ مَوْعِظَۃٌ مِّنْ رَّبِّہٖ فَانْتَهٰی فَلَہٗ مَا سَلَفَ ؕ وَاَمْرُہٗۤ اِلَی اللّٰهِ ؕ وَمَنْ عَادَ فَاُولٰٓئِكَ اَصْحٰبُ النَّارِ ۚ هُمْ فِیْهَا خٰلِدُوْنَ ۝ یَمْحَقُ اللّٰهُ الرِّبٰوا وَیُرْبِی الصَّدَقٰتِ ؕ وَاللّٰهُ لَا یُحِبُّ کُلَّ كَفَّارٍ اَثِیْمٍ ۝

“Those who live on usury will rise up on the day of Qiyamah like someone whom Satan has spellbound by his touch. That is because they say, ‘Business is like usury.’ But Allah has permitted business, and has forbidden usury. Whoever, on receiving advice from his Lord, refrains, may keep his past earnings, and his case rests with Allah. But whoever resumes — these are the dwellers of the Fire, wherein they will abide forever. Allah condemns usury, and He blesses charities. Allah does not love any sinful ingrate.” (2:275 – 276)

وَ مَاۤ اٰتَیْتُمْ مِّنْ رِّبًا لِّیَرْبُوَا۠ فِیْۤ اَمْوَالِ النَّاسِ فَلَا یَرْبُوْا عِنْدَ اللّٰهِ ۚ وَمَاۤ اٰتَیْتُمْ مِّنْ زَکٰوۃٍ تُرِیْدُوْنَ وَجْهَ اللّٰهِ فَاُولٰٓئِكَ هُمُ الْمُضْعِفُوْنَ ۝

“The usury you practice, seeking thereby to multiply your wealth through other people’s wealth, will not multiply with Allah. But what you give in charity, desiring Allah’s pleasure — these are the multipliers.” (30:39)

یٰۤاَیُّهَا الَّذِیْنَ اٰمَنُوا اتَّقُوا اللّٰهَ وَذَرُوْا مَا بَقِیَ مِنَ الرِّبٰۤوا اِنْ کُنْتُمْ مُّؤْمِنِیْنَ ۝ فَاِنْ لَّمْ تَفْعَلُوْا فَاْذَنُوْا بِحَرْبٍ مِّنَ اللّٰهِ وَرَسُوْلِہٖ ۚ وَاِنْ تُبْتُمْ فَلَکُمْ رُءُوْسُ اَمْوَالِکُمْ ۚ لَا تَظْلِمُوْنَ وَلَا تُظْلَمُوْنَ۝

“O Believers!  Fear Allah, and forgo what is due to you from usury, if you are believers. If you do not, then take notice of a war by Allah and His Messenger. But if you repent, you may keep your capital, do not wrong (others), and you will not be wronged.” (2:278 – 279)

وَّ اَخْذِهِمُ الرِّبٰوا وَقَدْ نُهُوْا عَنْهُ وَاَکْلِهِمْ اَمْوَالَ النَّاسِ بِالْبَاطِلِ ؕ وَاَعْتَدْنَا لِلْکٰفِرِیْنَ مِنْهُمْ عَذَابًا اَلِیْمًا ۝

“And for their taking interest, although they (a group of Ahlul Kitab) were forbidden from it; and for their consuming people’s wealth dishonestly, We have prepared for the faithless among them a painful torment.” (4:161)

 

 

Qard-e-Hasana (Interest-free Loan)

Islam has replaced interest-bearing lending with an interest-free loan, which is called ‘Qard-e-Hasana’. This type of loan is similar to lending to Allah (SWT) in exchange for immense rewards in this world and in the Hereafter. The main purpose of such a loan is to lend money to disadvantaged people to meet their immediate needs and hardships. Allah (SWT) loves this gracious type of loan because of its fellow-feeling for the sake of His pleasure. In case of debtor’s failure to pay back within the stipulated time due to hardship, then respite should be granted till a time of ease. Write-off of such loan is regarded as an act of charity.

Prophet Muhammad (ﷺ) said: ‘I saw inscribed on the gate of the Paradise that the reward of charity is tenfold and reward of giving loan is eighteen times. I inquired from Jibreel, why was it so; for the one giving charity is not paid back but he who gives loans expects it to be repaid? So, he replied: yes, that is the case. (Know) that every recipient of a charity is not a needy person, but one who takes a loan really needs it. Thus, charity sometimes reaches to the undeserving but the loan only goes to those who really need it. This is why giving a loan is better than charity (Mustadrak al-wasā’il, 2:490)’.

Borrowers are chained to the cycle of debt under the existing banking system. If the interest-bearing credit system is replaced with the interest-free Qard e Hasana, the growing vulnerabilities of the poor and inequalities between the rich and the poor can be contained.

The verses on ‘Qard-e-Hasana’ are quoted below:

مَنْ ذَا الَّذِیْ یُقْرِضُ اللّٰهَ قَرْضًا حَسَنًا فَیُضٰعِفَہٗ لَہٗۤ اَضْعَافًا كَثِیْرَۃً ؕ وَاللّٰهُ یَقْبِضُ وَیَبْصُۜطُ  وَاِلَیْهِ  تُرْجَعُوْنَ ۝

“Who is one that will give loan to Allah a beautiful loan, which Allah will double unto his credit and multiply many times? It is Allah Who gives (you) meagerly or plenty, and to Him shall be your return.” (2:245)

مَنْ ذَا الَّذِیْ یُقْرِضُ اللّٰهَ قَرْضًا حَسَنًا فَیُضٰعِفَہٗ لَہٗ وَلَہٗۤ اَجْرٌ كَرِیْمٌ۝

“Who is that one, who will lend Allah a beautiful loan, that He may double it for him, and will have a generous reward?” (57:11)

اِنَّ الْمُصَّدِّقِیْنَ وَالْمُصَّدِّقٰتِ وَاَقْرَضُوا اللّٰهَ قَرْضًا حَسَنًا یُّضٰعَفُ لَهُمْ وَلَهُمْ اَجْرٌ كَرِیْمٌ۝

“The charitable men and charitable women, who have loaned Allah a beautiful loan – it will be multiplied for them, and for them is a generous reward.” (57:18)

اِنْ تُقْرِضُوا اللّٰهَ قَرْضًا حَسَنًا یُّضٰعِفْهُ لَکُمْ وَیَغْفِرْ لَکُمْ ؕ وَاللّٰهُ شَکُوْرٌ حَلِیْمٌ۝

“If you lend Allah a beautiful loan, He will multiply it for you, and will forgive you. Allah is Appreciative and Forbearing.” (64:17)

… وَاَقِیْمُوا الصَّلٰوۃَ وَاٰتُوا الزَّکٰوۃَ وَاَقْرِضُوا اللّٰهَ قَرْضًا حَسَنًا ؕ وَمَا تُقَدِّمُوْا لِاَنْفُسِکُمْ مِّنْ خَیْرٍ تَجِدُوْهُ عِنْدَ اللّٰهِ هُوَ خَیْرًا وَاَعْظَمَ اَجْرًا ؕ…….

“…. and establish the prayers, and give regular charity, and lend Allah a generous loan. Whatever good you advance for yourselves, you will find it with Allah, better and generously rewarded …” (73:20)

وَ اِنْ كَانَ ذُوْ عُسْرَۃٍ فَنَظِرَۃٌ اِلٰی مَیْسَرَۃٍ ؕ وَاَنْ تَصَدَّقُوْا خَیْرٌ لَّکُمْ اِنْ کُنْتُمْ تَعْلَمُوْنَ ۝

“But if he (the debtor) is in hardship, then grant him respite until a time of ease. But if you were to write it off as an act of charity, that would be better for you, if you only knew.” (2:280)