ويحلّ
لهم
الطيّبات
ويحرّم
عليهم
الخبائث
-
الأعراف
Q7:157
"...He
(Allah) allows them At-Tayyibaat (all good and lawful) and prohibit
them Al-Khabaa`ith (all evil and unlawful)" [Q7:157]
AWQAF
Africa Islamic Finance ::
مالية
أوقاف
إفريقيا
الإسلامية
The
essential feature of Islamic banking is
that it is interest-free. Although it is
often claimed that there is more to
Islamic banking, such as contributions
towards a more equitable distribution of
income and wealth, and increased equity
participation in the economy (Chapra
l982), it nevertheless derives its
specific rationale from the fact that
there is no place for the institution of
interest in the Islamic order.
Islam
prohibits Muslims from taking or giving
interest (riba) regardless of the
purpose for which such loans are made
and regardless of the rates at which
interest is charged. To be sure, there
have been attempts to distinguish
between usury and interest and between
loans for consumption and for
production. It has also been argued that
riba refers to usury practiced by petty
money-lenders and not to interest
charged by modern banks and that no riba
is involved when interest is imposed on
productive loans, but these arguments
have not won acceptance. Apart from a
few dissenting opinions, he general
consensus among Muslim scholars clearly
is that there is no difference between
riba and interest. In what follows,
these two terms are used
interchangeably.
The
prohibition of riba is mentioned in four
different revelations in the Qur'an.1
The first revelation emphasizes that
interest deprives wealth of God's
blessings. The second revelation
condemns it, placing interest in
juxtaposition with wrongful
appropriation of property belonging to
others. The third revelation enjoins
Muslims to stay clear of interest for
the sake of their own welfare. The
fourth revelation establishes a clear
distinction between interest and trade,
urging Muslims to take only the
principal sum and to forgo even this sum
if the borrower is unable to repay. It
is further declared in the Qur'an that
those who disregard the prohibition of
interest are at war with God and His
Prophet. The prohibition of interest is
also cited in no uncertain terms in the
Hadith (sayings of the Prophet). The
Prophet condemned not only those who
take interest but also those who give
interest and those who record or witness
the transaction, saying that they are
all alike in guilt.2
It
may be mentioned in passing that similar
prohibitions are to be found in the pre-Qur'anic
scriptures, although the 'People of the
Book', as the Qur'an refers to them, had
chosen to rationalize them. It is
amazing that Islam has successfully
warded off various subsequent
rationalization attempts aimed at
legitimizing the institution of
interest.
Some
scholars have put forward economic
reasons to explain why interest is
banned in Islam. It has been argued, for
instance, that interest, being a pre-
determined cost of production, tends to
prevent full employment (Khan l968;
Ahmad n.d.; Mannan l970). In the same
vein, it has been contended that
international monetary crises are
largely due to the institution of
interest (Khan, n.d), and that trade
cycles are in no small measure
attributable to the phenomenon of
interest (Ahmad l952; Su'ud n.d.). None
of these studies, however, has really
succeeded in establishing a causal link
between interest, on the one hand, and
employment and trade cycles, on the
other. Others, anxious to vindicate the
Islamic position on interest, have
argued that interest is not very
effective as a monetary policy
instrument even in capitalist economies
and have questioned the efficacy of the
rate of interest as a determinant of
saving and investment (Ariff l982). A
common thread running through all these
discussions is the exploitative
character of the institution of
interest, although some have pointed out
that profit (which is lawful in Islam)
can also be exploitative. One response
to this is that one must distinguish
between profit and profiteering, and
Islam has prohibited the latter as well.
Some
writings have alluded to the 'unearned
income' aspect of interest payments as a
possible explanation for the Islamic
doctrine. The objection that rent on
property is considered halal (lawful) is
then answered by rejecting the analogy
between rent on property and interest on
loans, since the benefit to the tenant
is certain, while the productivity of
the borrowed capital is uncertain.
Besides, property rented out is subject
to physical wear and tear, while money
lent out is not. The question of erosion
in the value of money and hence the need
for indexation is an interesting one.
But the Islamic jurists have ruled out
compensation for erosion in the value of
money, or, according to Hadith, a
fungible good must be returned by its
like (mithl): 'gold for gold, silver for
silver, wheat for wheat, barley for
barley, dates for dates, salt for salt,
like for like, equal for equal, and hand
to hand ...'.3
The
bottom line is that Muslims need no
'proofs' before they reject the
institution of interest: no human
explanation for a divine injunction is
necessary for them to accept a dictum,
as they recognize the limits to human
reasoning. No human mind can fathom a
divine order; therefore it is a matter
of faith (iman).
The
Islamic ban on interest does not mean
that capital is costless in an Islamic
system. Islam recognizes capital as a
factor of production but it does not
allow the factor to make a prior or
pre-determined claim on the productive
surplus in the form of interest. This
obviously poses the question as to what
will then replace the interest rate
mechanism in an Islamic framework. There
have been suggestions that
profit-sharing can be a viable
alternative (Kahf l982a and l982b). In
Islam, the owner of capital can
legitimately share the profits made by
the entrepreneur. What makes profit-
sharing permissible in Islam, while
interest is not, is that in the case of
the former it is only the profit-sharing
ratio, not the rate of return itself
that is predetermined.
It
has been argued that profit-sharing can
help allocate resources efficiently, as
the profit-sharing ratio can be
influenced by market forces so that
capital will flow into those sectors
which offer the highest profit- sharing
ratio to the investor, other things
being equal. One dissenting view is that
the substitution of profit-sharing for
interest as a resource allocating
mechanism is crude and imperfect and
that the institution of interest should
therefore be retained as a necessary
evil (Naqvi l982). However, mainstream
Islamic thinking on this subject clearly
points to the need to replace interest
with something else, although there is
no clear consensus on what form the
alternative to the interest rate
mechanism should take. The issue is not
resolved and the search for an
alternative continues, but it has not
detracted from efforts to experiment
with Islamic banking without interest.
محررتنا
أم
عبد
الله
أديلابو
مديرة
هذا
الموقع
بإشراف
شيخنا
الشيخ
أبي
عبد
الله
أديلابو
و
إرشاده
-
حفظهما
الله
و
حفظ
أهلهما
-
Our
Editor And Director Is
Umm-Abdullah Adelabu Who
Is The Director Of This
Site With Supervision And
Guidance Of Our Sheikh,
Sheikh Abu-Abdullah
Adelabu (Ph. D Damas) -
May Allah (s.w.t.) Protect
Both Of Them And Their
Family
شيخنا:
الشيخ
عيد
الفتَّاح
أبو
عبد
الله
تائوو
أديلابو
Our
Sheikh Is: Sheikh Abdul-Fattah
Abu-Abdullah Taiwo Adelabu
(Ph.D. Damas)
s
Awqaf Africa (also known
or referred to as AWQAF)
serves all countries of
Africa: South, North,
West, East, and other
territorial geography of
the continent including
its islands in Pacific,
Atlantic, and
Mediterranean Seas as well
as Caribbea
s
Awqaf Africa seeks the
causes of suffering,
poverty, and Islamophobia
and tries to eliminate
them under the amiable
banner of Islam
s
Sheikh Abdulfattah Abu
Abdullah Adelabu (Ph. D.
Damas), a West African
Islamic Academic founded
Awqaf Africa, of which
he’s the first al Amir
(i.e. President).Sheikh Abu Abdullah
was studying Postgraduate
Degrees in Damascus early
1990’s during when Syria
reviewed its national
security including
immigration control...
s
Awqaf Africa is an
independent establishment
with a firm principle to
stay neutral and distance
itself from exploitations
by politicians, lobbies
from business prominent,
or affiliations with
military strugglings.Awqaf Africa
maintains Jihad or
Struggling For The Cause
of Islam is a faith as
well as a duty, and
therefore does not
champion any struggling
other than that of Islam
sWaqfs
[Awqaf] or Habs (i.e.
Endowments From al Amir,
Members Of ash Shura, And
Muslim Donors)
محررتنا
أم عبد الله أديلابو مديرة
هذا الموقع بإشراف شيخنا
الشيخ أبي عبد الله أديلابو
و إرشاده - حفظهما الله و
حفظ أهلهما -
Our Editor And Director Is
Umm-Abdullah Adelabu Who
Is The Director Of This
Site With Supervision And
Guidance Of Our Sheikh,
Sheikh Abu-Abdullah
Adelabu (Ph. D Damas) -
May Allah (s.w.t.) Protect
Both Of Them And Their
Family
شيخنا: الشيخ عيد الفتَّاح
أبو عبد الله تائوو أديلابو
Our Sheikh Is: Sheikh
Abdul-Fattah Abu-Abdullah
Taiwo Adelabu (Ph.D. Damas)
s Awqaf Africa
(also known or referred to
as AWQAF) serves all
countries of Africa:
South, North, West, East,
and other territorial
geography of the continent
including its islands in
Pacific, Atlantic, and
Mediterranean Seas as well
as Caribbea
s Awqaf Africa
seeks the causes of
suffering, poverty, and
Islamophobia and tries to
eliminate them under the
amiable banner of Islam
s Sheikh
Abdulfattah Abu Abdullah
Adelabu (Ph. D. Damas), a
West African Islamic
Academic founded Awqaf
Africa, of which he’s the
first al Amir (i.e.
President).Sheikh Abu Abdullah
was studying Postgraduate
Degrees in Damascus early
1990’s during when Syria
reviewed its national
security including
immigration control...
s Awqaf Africa is
an independent
establishment with a firm
principle to stay neutral
and distance itself from
exploitations by
politicians, lobbies from
business prominent, or
affiliations with military
strugglings.Awqaf Africa
maintains Jihad or
Struggling For The Cause
of Islam is a faith as
well as a duty, and
therefore does not
champion any struggling
other than that of Islam
s
Waqfs [Awqaf] or Habs
(i.e. Endowments From al
Amir, Members Of ash Shura,
And Muslim Donors)
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محررتنا
أم
عبد
الله
أديلابو
مديرة
هذا
الموقع
بإشراف
شيخنا
الشيخ
أبي
عبد
الله
أديلابو
و
إرشاده
-
حفظهما
الله
و
حفظ
أهلهما
-
Our
Editor And Director Is
Umm-Abdullah Adelabu Who
Is The Director Of This
Site With Supervision And
Guidance Of Our Sheikh,
Sheikh Abu-Abdullah
Adelabu (Ph. D Damas) -
May Allah (s.w.t.) Protect
Both Of Them And Their
Family
شيخنا:
الشيخ
عيد
الفتَّاح
أبو
عبد
الله
تائوو
أديلابو
Our
Sheikh Is: Sheikh Abdul-Fattah
Abu-Abdullah Taiwo Adelabu
(Ph.D. Damas)
s
Awqaf Africa (also known
or referred to as AWQAF)
serves all countries of
Africa: South, North,
West, East, and other
territorial geography of
the continent including
its islands in Pacific,
Atlantic, and
Mediterranean Seas as well
as Caribbea
s
Awqaf Africa seeks the
causes of suffering,
poverty, and Islamophobia
and tries to eliminate
them under the amiable
banner of Islam
s
Sheikh Abdulfattah Abu
Abdullah Adelabu (Ph. D.
Damas), a West African
Islamic Academic founded
Awqaf Africa, of which
he’s the first al Amir
(i.e. President).Sheikh Abu Abdullah
was studying Postgraduate
Degrees in Damascus early
1990’s during when Syria
reviewed its national
security including
immigration control...
s
Awqaf Africa is an
independent establishment
with a firm principle to
stay neutral and distance
itself from exploitations
by politicians, lobbies
from business prominent,
or affiliations with
military strugglings.Awqaf Africa
maintains Jihad or
Struggling For The Cause
of Islam is a faith as
well as a duty, and
therefore does not
champion any struggling
other than that of Islam
sWaqfs
[Awqaf] or Habs (i.e.
Endowments From al Amir,
Members Of ash Shura, And
Muslim Donors)
محررتنا
أم
عبد
الله
أديلابو
مديرة
هذا
الموقع
بإشراف
شيخنا
الشيخ
أبي
عبد
الله
أديلابو
و
إرشاده
-
حفظهما
الله
و
حفظ
أهلهما
-
Our
Editor And Director Is
Umm-Abdullah Adelabu Who
Is The Director Of This
Site With Supervision And
Guidance Of Our Sheikh,
Sheikh Abu-Abdullah
Adelabu (Ph. D Damas) -
May Allah (s.w.t.) Protect
Both Of Them And Their
Family
شيخنا:
الشيخ
عيد
الفتَّاح
أبو
عبد
الله
تائوو
أديلابو
Our
Sheikh Is: Sheikh Abdul-Fattah
Abu-Abdullah Taiwo Adelabu
(Ph.D. Damas)
s
Awqaf Africa (also known
or referred to as AWQAF)
serves all countries of
Africa: South, North,
West, East, and other
territorial geography of
the continent including
its islands in Pacific,
Atlantic, and
Mediterranean Seas as well
as Caribbea
s
Awqaf Africa seeks the
causes of suffering,
poverty, and Islamophobia
and tries to eliminate
them under the amiable
banner of Islam
s
Sheikh Abdulfattah Abu
Abdullah Adelabu (Ph. D.
Damas), a West African
Islamic Academic founded
Awqaf Africa, of which
he’s the first al Amir
(i.e. President).Sheikh Abu Abdullah
was studying Postgraduate
Degrees in Damascus early
1990’s during when Syria
reviewed its national
security including
immigration control...
s
Awqaf Africa is an
independent establishment
with a firm principle to
stay neutral and distance
itself from exploitations
by politicians, lobbies
from business prominent,
or affiliations with
military strugglings.Awqaf Africa
maintains Jihad or
Struggling For The Cause
of Islam is a faith as
well as a duty, and
therefore does not
champion any struggling
other than that of Islam
sWaqfs
[Awqaf] or Habs (i.e.
Endowments From al Amir,
Members Of ash Shura, And
Muslim Donors)
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