Islamic Transaction
Islamic Transactions:-
Islam is a whole way of life, not a mere ritual religion, Islam established all the legislations that protect the financial rights of the individual which positively affect the society and develop it.
Muslims are commanded and encouraged by Allah to earn their sustenance, Islam respects all types of occupations as long as they are lawful.
A Muslim who works with the intention of supporting himself, his family, and helping others will be rewarded from Allah immensely.
Islam forbids the Muslim from begging as long as he is able to earn his sustenance, The prophet Muhammad PBUH informs us that those who engage in begging while they can earn a sustenance lose their dignity in the sight of Allah.
The concept of Halal (allowed) and Haram (forbidden) in Islamic transactions:-
In Islam, all types of transactions are allowed, this general rule includes all kinds of transactions that people need like selling, buying, and leasing.
The general rule of allowing all kinds of transactions excludes forbidden goods and services because of its innate impurity and the manners that they acquired.
Forbidden goods:-
Those things that Allah forbid on the Muslim due to their innate impurity so the Muslim must not deal with those unlawful goods by any mean, examples of forbidden goods:-
-Alcoholic drinks
-Drugs and alike
-The flesh of dogs and pigs
-Dead animals
-Idols or anything that is worshiped besides Allah
-All kind of materials that spread immorality like pornographic pictures, websites, and alike
Forbidden Services:-
Those things that are generally allowed and lawful but due to the manner that they acquire they become forbidden because of the harm they cause to the individual and the society in all, examples of forbidden services:-
-Usury (Ribaa)
-Deception (Gharar)
-Gambling (Maiser)
Prohibition of Usury (Ribaa):-
Usury (Ribaa) is the practice of adding a fee to the principal borrowed amount either on the borrowed assets or credit in order to achieve a profit on the loan.
This practice is strictly forbidden in Islam, Usury (Ribaa)is one of the major sins in Islam due to the harm it cause to the individual and the society in all, Allah point out in The Holy Quran that Usury is prohibited, also prophet Muhammad PBUH taught us a lot about the prohibition of Usury (Ribaa).
Allah says in The Holy Quran chapter 2 verse 278-279: “O you who have attained faith, be mindful of Allah and leave aside what has remained of Usury (Ribaa), if you are believers, But if you do not, then be informed of a war from Allah and His Messenger. Yet if you repent, then your capitals belong to you-Thus you do not injustice, and you are not done injustice.”
Usury (Ribaa) has many different types, the most popular and serious type is the one dealing with loans and debts, it includes any specific amount that is added to the principal in a transaction of debt or loan.
Example: Ahmad borrowed 100 dollars from Karim and promised to pay it back after a month, then Ahmed found himself unable to pay it so Karim decided that to wait another month Ahmad will pay him 150 dollars, this is Ribaa and it is prohibited.
Another example: Ahmad took a loan of 100,000 dollars from the bank and signed a contract that he will pay them back in monthly installments over a period of two years but he will pay them 150,000 dollars, this is Ribaa and it is prohibited.
Prohibition of Deception (Gharar):-
Deception (Gharar) is a practice of an agreement that is based on ignorance and uncertainty or a deception which leads to argument and problems between the parties involved in it.
Islam strictly forbids this kind of agreement, even if it is acceptable among people it is prohibited in Islam.
Example: a farmer sold his fruit crop before it is ready for picking, this is Gharar and it is prohibited.
Prohibition of Gambling (Maiser):-
Gambling (Maiser) is a practice where the person wins or loses his money or property by a mere chance, it also applies to betting on soccer matches, lotteries and horse racing.
Gambling is strictly forbidden in Islam, a lot of verses in The Holy Quran and also teachings of Prophet Muhammad PBUH prohibit such act:-
Allah says in The Holy Quran chapter 5 verse 90:”O you who have attained faith, surely intoxicants and gambling and idolatry and divination are an abomination of Satan’s work, so avoid it, that you may be successful.”
Allah says in The Holy Quran chapter 2 verse 219:” They will ask you about alcoholic drinks and gambling. Say, There is great wrong in both of them and also certain benefits for mankind. But the wrong in them is greater than the benefit."
The Prophet Muhammad PBUH said: “Whosoever says to his companion: Come let us play a game of chance or gambling; should give charity (as atonement).”
Gambling causes loss of wealth, it spreads hatred between gamblers, gambling becomes an addiction so it captures the soul of the gambler in its prison suffering and running for an unreachable goal forgetting about his personal interest and his family.