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Islam differs in the way it deals with money from others. Money is God’s money and man is responsible for it. Thus, the Muslim is responsible for this money, whether earned or spent, before God in the afterlife and before people in this world.
It is not permissible to earn money through sin or spend it on forbidden things, or on things that harm people. Money is a tool of measurement and a means of commercial exchange, not a commodity. It is not permissible to buy or sell it (riba al-fadl) or rent it (riba al-nasi’ah).
From this concept of money came Islamic economics, which is the set of economic principles and principles that govern the economic activity of the Islamic state and which are contained in the texts of the Qur’an and the Sunnah of the Prophet, and which can be applied in a way that suits the circumstances of time and place.
Islamic economics addresses society's economic problems according to the Islamic perspective on life.
Succession is not absolute, but is defined by rules and principles that have been clarified by Sharia law and for which restrictions and controls have been set in terms of extent and manner (Shutterstock)
1- Ownership in Islam
Ownership in Islam is defined by certain controls, the most important of which is that the true owner is God and man is appointed successor in this kingdom. God Almighty said: (And when your Lord said to the angels, “Indeed, I will place a successor on earth,” and He also said: (Believe in God and His Messenger, and spend from that in which He has made you successors).
These are texts that indicate that the origin of ownership belongs to God Almighty, and that the servants have the right to dispose of what God is pleased with, so they are merely representatives and successors in what they own.
Professor of Economics and Islamic Banking, Dr. Hana Muhammad Al-Hunaiti, explains this point by saying, “The money that is in your hands (the people) is God’s money, and He has made you successors in disposing of it to rebuild the earth and develop the money, and that is through the belief that God has harnessed what is in the universe to serve man and carry out his activity.” Economic, meaning that human creatures are subjugated to one another in order to achieve a cooperative and organized social system. God Almighty says: (We divided among them their livelihood in the life of this world, and We raised some of them above others in degrees, so that some of them might take others as subservients, and the mercy of your Lord is better than what they put together).
Succession is not absolute, but is defined by rules and principles that have been clarified by the Sharia and for which restrictions and controls have been set in terms of extent and manner. The noble hadith was mentioned in his saying, may God’s prayers and peace be upon him, about the four matters that the servant will be asked about on the Day of Resurrection, including “about his wealth, from where he earned it and on what he spent it.” This leads us to talk about the concept of wealth in Islam.
Dr. Al-Hunaiti: Islam allows a Muslim to accumulate as much wealth as he can within the provisions and controls of Sharia (Al-Jazeera)
2- Wealth in Islam
The Islamic philosophy of wealth lies in the fact that wealth is not an end, but rather a means, and that wealth is not the goal, but rather a path towards something higher, which is God’s satisfaction in this world and the hereafter. From here came basic principles in Islam, such as zakat, alms, endowment, prevention of monopoly, and others, to distribute wealth and prevent... The rich prey on the poor.
Islam allows people to seek to acquire wealth within specific controls, and here Dr. Al-Hunaiti explains that “Islam has permitted the Muslim to accumulate as much wealth as he can within the provisions and controls of Islamic Sharia, and has enacted legislation and directives that encourage its acquisition and acquisition in a way that guarantees him a decent life. God Almighty said: (He He who made the earth subservient to you, so walk on its slopes and eat of His provision, and to Him is the resurrection.”
3- Ways to achieve wealth in Islam
the job
The most important way to achieve wealth is work that develops and increases money, and this means directing effort towards development by investing in all means and methods that are subject to the rule of what is permissible and what is forbidden, and rejecting what conflicts with the provisions and controls of Islamic Sharia, or whose goal is to achieve private benefit only or profit based on Account of others.
Work is considered one of the basic elements of production, and it requires physical effort, such as work in agriculture, industry, and trade, and intellectual effort, such as work in writing, judging, innovation, creativity, and others.
Profit
Islam urges people to work, earn, and achieve profit, as profit in Islam is considered the development of money as a result of its circulation in various exchange operations through legitimate methods that are exposed to risks. Therefore, profit or loss may occur in various trade operations.
Al-Hunaiti explains that Islam has set controls on profit, the most important of which are:
Do not take people’s money unjustly
No deceit, fraud or deception
Preventing monopoly
Preventing trade in goods that are harmful to society
Al-Hunaiti explains that profit is due for three things:
Profit with money
: Profit is an increase in the original money that was invested in legitimate purposes.
Profit by work
: As for entitlement to it by work, because it is similar to wages, it is therefore the reward and product of work.
Profit by guarantee
: According to his saying, may God’s prayers and peace be upon him: “The tax is by guarantee,” meaning it is due because of it. If the money becomes guaranteed by any person because of buying it and owning it, for example, or because of any of the reasons that require it to be guaranteed, then the profit in this case goes to that person for guaranteeing it, and because The tax on money and the return from it is bearing the risks that may occur, and the tax is income and benefit. That is, the buyer, for example, owns the tax resulting from the sold item by guaranteeing the asset that is the reason for that tax.
4- There is no limit to profit in Islam
There is no specific limit for profit in Islam, and it is due to the agreement between the seller and the buyer, as God Almighty says: (O you who have believed, do not consume your wealth among yourselves unjustly unless it is a trade with your consent).
There is nothing in the Sharia, whether in the Qur’an or in the Sunnah, that restricts profit to a certain percentage. Rather, this matter is left to the conscience and tolerance of the Muslim merchant, and his observance of justice, benevolence, and mercy toward creation, which are established principles in Islamic economics.
5- Investment
Investment is one of the most important ways to achieve wealth in Islam, and it falls within the principle of land restoration that Islam encourages. The Messenger of God, may God bless him and grant him peace, says: “Whoever revives a dead land, it belongs to him.”
The term finance in Islam refers to the provision of financial services in accordance with Islamic law (Reuters)
What is meant by investment in the Islamic approach is to use money to increase it by increasing production, in order to achieve economic and social goals.
The Messenger, may God bless him and grant him peace, urged investment in accordance with this concept. The Messenger of God, may God bless him and grant him peace, said: “If the Hour comes and one of you has a seedling in his hand, then if he is able not to get up until he plants it, then let him do so.”
Dr. Al-Hunaiti says, “A Muslim can achieve wealth by investing in legitimate investment tools in the Islamic economy, and achieving the maximum possible profits accompanied by achieving economic and social development that is reflected in society as a whole.”
6- Financing
The term finance in Islam refers to the provision of financial services in accordance with Islamic law, its principles and rules.
Sharia prohibits:
Charge usury (interest)
Selling gharar
Facilitator
Short selling operations
Financing activities that are considered harmful to society.
Instead, the parties involved should share the risks and rewards of business transactions.
Islamic finance includes:
Banking activities
Leasing
Sukuks (bonds)
Stocks, mutual funds, etc.
In 2021, the total value of assets in global Islamic finance markets reached about $3.95 trillion. The total asset value of global Islamic finance markets is expected to reach $5.9 trillion by 2026.
According to Dr. Al-Hunaiti, “permissible financing formulas vary depending on the degree of authority enjoyed by the party disposing of the money and the rights and obligations resulting from it.”
Al-Hanati explains
:
Some forms of permissible financing include placing the burden of making the investment decision on the working party alone, and limiting the role of the owner to placing the money he owns at the disposal of the other party without him having the right to interfere in management and investment decisions such as speculation.
In some other forms, the owner determines the type of commodity, owns it, and prepares it according to the specifications required by the party, and bears the resulting obligations and responsibilities associated with his ownership of it, such as leasing and selling in installments, for example.
Through partnership contracts, which are considered one of the most important forms of investing money in Islamic jurisprudence, it is possible to use them to finance various economic activities.
Source: Al Jazeera