Monthly Archives: September, 2012

Is Lottery Permissible?

Question:

Several shopping centers conduct a big event which comprises various competitions and games for children. The goal is to attract people to visit those shopping centers, although they do not buy anything there. Is such event permissible?

lottery

Answer:

There is no doubt that the main goal of such event is to make the shops famous among society, and any items which is sold there is well known to them. The owner expects that their shop’s name, their goods, and their service become popular.

It is certain that this kind of event is more efficient, compare to advertisements on mass media. By this, the shopping centers would like to attract people to watch and attend the performances held there. Eventually, the visitors will be swayed to join the quiz or competition, to get the available prizes.

We believe that this goal is merely to achieve worldly benefits, and there is no intention to give material or scientific advantages towards society.

The best choice is to avoid attending such event, to prevent them from achieving their goals, since this event is disadvantaging other shopping centers. Because people will leave shops which do not create such event. And it is known that, among basic principle in shariah, it is obliged to banish all dangers or threats.

Taken from Ahkam Musabaqah Tijariyah, written by Sheikh Abdullah Ibn Abdirrohman al Jibrin, published by Dar Al Qasim, Riyadh

(Translated by Abu ‘Ukkasha Aris Munandar, S.S., with several structural and grammatical rearrangements by editors of www.syaria.com)

Is Usury Illegal in All Conditions?

Question:

Is it true that every usury, in any form, must be illegal for both parties involved (creditor and the debtor)? Or it is only illegal for the creditor, and not the debtor? And if so, is it only applied in the need for debt, poor-afflicted condition, or needs is not a requirement to allow debt with additional payment a.k.a usury? If it is allowed for the needy, is it also allowed for those who have non-urgent needs to take credit from bank which transact with an interest of 15% every year, for example, so that he could use the money for business intention, and receive a bigger profit than the interest, 50% for example annually. By this, if he could get 35% result from subtraction of his profit and the interest, as the case above, is the usury still illegal in any case?

usury

Answer:

First : Usury is not allowed in any conditions and in any forms. It is illegal for the creditor and the debtor who borrows money from him by interests, either the debtor is poor or rich. Both parties will take sin, even condemned. And condemnation also afflicted upon each helping hands of such transaction, for example the writer (of deal) and the witness. This ruling is based upon the general context of verses and valid narrations which clearly forbid an usury. Allah The Exalted declared,

الَّذِينَ يَأْكُلُونَ الرِّبَا لاَ يَقُومُونَ إِلاَّ كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ذَلِكَ بِأَنَّهُمْ قَالُواْ إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَن جَاءهُ مَوْعِظَةٌ مِّن رَّبِّهِ فَانتَهَىَ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللّهِ وَمَنْ عَادَ فَأُوْلَـئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ . يَمْحَقُ اللّهُ الْرِّبَا وَيُرْبِي الصَّدَقَاتِ وَاللّهُ لاَ يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍ (البقرة: 275-276)

“Ones who eat (take) usury, they cannot stand but resemble the possessed one due to madness. That is because they said (believe), Verily, trading is similar to usury. Ones whom reached by prohibition of their God, then they stop (from taking the usury), for them of what they had gained (before the prohibition); and their matters (is up) to Allah. But those who repeat (in taking the usury), they are the eternal dwellers of Hell; Allah will extinct usury and double-fold charity. And Allah dislike every one who keeps doing fallacies, and sins.” (Al Baqara/The Cow: 275-276)

A companion of the Prophet, Ubada Ibn Shamit – radhiallaahu ‘anhu/may Allah be pleased with him- narrated from The Prophet Shallallaahu ‘alayh wa Sallam, he (the Prophet) said,

الذهب بالذهب والفضة بالفضة والبر بالبر والشعير بالشعير والتمر بالتمر والملح بالملح مثلا بمثل، سواء بسواء، يدا بيد، فمن زاد أو استزاد فقد أربى. رواه مسلم

“Gold is (sold) for gold, silver for silver, wheat for wheat, sha’ir (a type of oat) for sha’ir, dates for dates, and salts for salts, (the weight/the measurement) must be similar and (the payment) must be directly exchanged. Whoever add or asks for addition, the he had done usury.” (Recorded by Muslim in his book, Ash Shahih)

Abu Sa’id Al Khudri- radhiallaahu ‘anhu– told that The Prophet Shallallaahu ‘alayh wa Sallam said,

لا تبيعوا الذهب بالذهب إلا مثلا بمثل، ولا تشفوا بعضها على بعض، ولا تبيعوا الورق بالورق إلا مثلا بمثل، ولا تشفوا بعضها على بعض، ولا تبيعوا منها غائبا بناجز. رواه البخاري ومسلم

“Do not you sell gold but for the similar one, and do not add one thing over another. Do not you sell silver but for the similar one, and do not add one thing over another. And do not you sell half of it, by direct exchange, for the other which is indirectly transferred.” (Collected by Al Bukharee and Muslim)

Imam Ahmad and Al Bukharee narrated, that The Prophet Shallallaahu’alayh wa Sallam said,

الذهب بالذهب والفضة بالفضة والبر بالبر والشعير بالشعير والتمر بالتمر والملح بالملح مثلا بمثل، سواء بسواء، يدا بيد، فمن زاد أو استزاد فقد أربى، الآخذ والمعطي فيه سواء. رواه مسلم

“Gold is sold for gold, silver is sold for silver, wheat is sold for wheat, sha’ir (a kind of wheat) is sold for sha’ir, dates is sold for dates, and salts is sold for salts, they must be similar in amount and directly exchanged. Whoever adds or asks for addition, then he had done usury, the taker and the giver is similar in this case.” (Collected by Muslim)

And it was obviously seen, from Jabir Ibn Abdillah – radhiyallaahu ‘anhu– that he once said

لعن رسول الله صلّى الله عليه وسلّم آكل الربا وموكله وكاتبه وشاهديه، وقال: (هم سواء). رواه مسلم

“The Apostle Shallallaahu ‘alayh wa Sallam condemned the usurer, the one who give/pay the usury (customer), the writer (his secretary), and also the two witnesses. And he also said, “They are equal in sin’.” (Collected by Muslim).

And paper based money which is widely being used today, is similar in position as gold and silver, as a mean of trading. Hence, the applied ruling of it is also similar to gold and silver. For that reason, for every muslim to feel satisfied with the legal practices and abandon the prohibitions of Allah The Most Glorified. And indeed, Allah has bestowed ease upon The believers, regarding works and jobs in this world, to acquire fortunes. Thus, it is allowed for a poor one to work as an blue-collar employee (coolie) or as an entrepreneur by using other people’s money as his capital, as in mudharaba system (investment) with a contract of profit shares, 50:50 for example, or the like from the profits, and not from the capital, or a certain number from the profit. And whoever prevented from doing any business or work, while he is a poor man, then it is permitted for him to beg for money (as beggar), receive the obligatory charity, and also social guarantee.

Second: It is not allowed for a muslim, whether he is rich or poor, to take credit from bank or other party with interest, either it is 5%, 15%, or more, or less than that. Because that is clearly an usury, and is one of the big sins. And Allah has granted him various ways to acquire legal fortunes as mentioned above, either as an employee of a company, or as a civil servant of legal positions, or as a trader for other people’s capital, through mudharaba system with certain percentage of profit shares, as explained previously.

And Allah is The Giver of Enlightenment, and may every prayers and greetings always be bestowed upon The Prophet, Muhammad, his family, and his devoted companions.

Source: Majmu’ Fatwa of Al Lajnah Ad Da’imah 13/268-271, no. 3630

Author: Dr. Muhammad Arifin Badri, M.A.
Article of www.syaria.com

Partnership In Trading At A Glance

Prologue

All praises belong to Allah, prayers and peace be upon The Prophet, Muhammad Shallallahu ‘alayh wa Sallam, his family, and his devoted companions.

Dear brother, at this moment, probably some of you already possess lots of excellent skills and experiences. However, it is still difficult for you to optimize your advance potentials, hence you could only use the small part of it. Maybe, once, you may think. ” I wish I have enough capital, so that I could have more working options, and enjoy the more abundant results…”

Well, there is no need to be pessimistic, my brother. There are plenty of doors to go through, to change your destiny. Among them, is by partnering with the other who has similar condition with you. By this option, the door of success will be wide open in front of you, due to the increasing scale of business you starts with your friend. Together, the work you’re carrying out will be more valuable. Don’t you wish of such, dear Brother of mine?

Through this simple article, I would like to give a brief picture of details regarding ruling of trading partnership in Shariah. I hope, by this, your steps to work your business out will be more steady and in harmony with the beautiful laws of Allah The Exalted.

The Ruling of Partnership in Trading

Ibn Qudama al Hambale stated that, “Generally, scholars have agreed that the ruling of trading partnership is permitted. However, they have different opinions over several of it’s details.” (Al Mughni, written by Ibn Qudama, 7/109)

Below are some argumentations which became the basis of the scholars’ agreement regarding this affair:

“Abu Minhal narrated that al Bara’ Ibn Azib and Zaid Ibn Arqam was 2 Partnering man. One day, they bought such amount of silver. Half of the payment was settled by cash, and the rest was written as debt. Then the news of this transaction reached Allah’s Apostle Shallallaahu ‘alayh wa Sallam, and he immediately urged them continue the cash transaction, and cancel the debt.” (Collected by Bukharee)

Abu Huraira – may Allah be pleased with him- told that The Prophet Shallallaahu’alayh wa Sallam declared, “Verily, Allah had decreed, ‘I always be with 2 partnering man, as long as neither of them betray his partner. If one of them committing such, then I will leave them both.” (Collected by Abu Daud, Ad Daruqutni, and graded weak by Al Albaanee).

Whom to choose to partner with?

After recognizing the ruling of partnership in Islam, the first question that may be popped in your mind is, ” Whom should I choose to partner with?”

Particularly in our world nowadays, where it is so hard to find someone to trust to as partner in trading. Or, probably you are willing to speculate and take any one as your partner, without considering their credibility? I’m sure that you must be selective and strive to choose an excellent partner with lots of positive strengths.

But then, dear brother, have you ever think that among criteria of a good partner, is his obedience and submissiveness to shariah?

Partnership In Trading At A Glance

Probably you may question, “And how is that so?”

The answer is simple; because every partner in trading will not only act on behalf of himself, but as the representative of all shareholders in the company. Thus, every shareholder is responsible upon any company’s decisions and actions.

This explanation is a concrete form of the basic principle of trading in Islam, which are al wakala (representation) and trusteeship. Each shareholders act as a representative and hold trusts of the other shareholders.

Thus, no wonder that the scholars advised you to avoid partnership with people from different religion as you.

Imran Ibn Abi Atha’ once asked Ibn ‘Abbas, “Indeed, there is a goat seller who partnering a Jew and a Christian.” Ibn ‘Abbas replied, “Do not take partner with Jew, Christian, or Persian.” I asked back, “Why is that so?” Ibn ‘Abbas answered, “Because they get used to do usury in their transaction, and usury is forbidden.” (Collected by Ibn Abi Syaiba and Al Baihaqi)

From Ibn ‘Abbas’ statement above, it is understood that it is legal to take a Jew or Christian as partner as long as they are not dealing directly with the business, or as long as they have a commitment to not transgressing the law of shariah. Thus, the students of Ibn ‘Abbas, such as ‘Atha’, Thawus, and Mujaheed stated that, ” Partnering a Jew or a Christian is makrooh, unless the one who operate the business is the muslim partner.”. (Collected by Ibn Abi Syaiba)

This explanation was also based upon the practice committed by Allah’s Apostle Shallallaahu ‘alayh wa Sallam who trusted the management of muslim’ s agriculture field in the land of Khaibar to the local Jews, and he imposed a requirement that, “Muslims hold the absolute authority to break the cooperation whenever they want it.”(Collected by Bukharee and by Muslim)

Scholars had agreed that capital of partnership could be in the form of money as a valid mean of transaction. However, they differed in determining, whether or not properties outside of money are valid as capital in partnership?

The stronger opinion in this problem is the one allowed properties other than money to be used as a capital of partnership. This opinion is based upon several reasons as follow:
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Ruling For Having A Bank Account

Question:

I want to start a small-scaled enterprise that can benefit my family and community, but in my country, all companies are obliged to have an account in Bank. While it is known that all banks are still practicing usury. What should I do?

Answer:

Usury is indeed one of the biggest sin with most terrible returns, as what Prophet Shallallaahu ‘alayh wa Sallam had said, and there is a horrible threat in it for those who consume usury, which is not found in other misdeeds. And one saved his/her money at the bank, then acquire the interests, is considered as a form of usury, and consuming usury, which is prohibited by Allah The Exalted and His Messenger.

But if a muslim is forced to save his money in a bank that is practicing usury, because he cannot find another bank which is safe from usury or because the company where he works requires all of it’s employees to have a bank account, since their monthly wages are directly being sent to their accounts, or the government requires for someone to have an account in usury-practicing bank, or due to other reasons, then it is no problem to have it, as long as the owner do not take the interests from that account. If the bank’s system does not allow that type of customer,and they insist the customers to receive the interests, then it is compulsory for customers who take that money of interests to free themselves from such illegal money by donating it to social activities.

Here are fatwas from the scholars concerning this matter:

The scholars who are the members of Lajnah Daimah, Kingdom of Saudi Arabia, said, “It is forbidden to save money in a bank that is still practicing usury, unless in a forced condition and without taking the interests” ( Fatwa issued by Lajnah Daimah, 13:34)

The Lajnah also stated that, “Interest is included in illegal properties because Allah The Exalted had told us, “But Allah hath permitted trade and forbidden usury.” (Al Baqara/The Cow: 275)

Someone who hold such money must free himself from it by donating it to activities that bring advantages for muslims, such as building roads, (religious dormitory schools), or dispensing it to the poor and destitute” (Fatwa issued by Lajnah Daimah, 13:354)

Sheikh Abdul Aziz Ibn Baz said, ” Saving money in banks due to conditions which force one to do so, since there is no safe place to save it beside the banks which are practicing usury, or due to other reasons–without taking the interest, or having an account in a bank which is practicing usury to transfer money, then the ruling is fine, Insyaa Allah no sin upon such thing.” (Fatwa issued by Sheikh Ibn Baz, 7:290)

Sheikh Muhammad Ibn Shalih Al Uthaymeen said, “Several institutions, private or non-private, sometimes require their employees to have a bank account since their wages will be directly sent to their accounts, and if it is impossible for someone to receive his monthly income but through this way, then it is no problem for him to have an account in a bank which practicing usury, but he is not permitted to save his money in that account (unless in forced condition, ed.). While the ruling of receiving wages through this practice is allowed.” (Liqo Al Bab Al Maftuh, no. 111, question no. 10).

Source: http://www.alsalafway.com/cms/fatwa.php?action=fatwa&id=237

Article of www.syaria.com

Usury Will Indeed Come to Us

Usury Will Indeed Come to Us

عَنْ أَبِي هُرَيْرَةَ قَالَ قَالَ رَسُولُ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ قَالَ يَأْتِي عَلَى النَّاسِ زَمَانٌ يَأْكُلُونَ الرِّبَا فَمَنْ لَمْ يَأْكُلْهُ أَصَابَهُ مِنْ غُبَارِهِ

From Abu Huraira, (he said that) Allah’s Apostle Shallallaahu ‘alayh wa Sallam declared, “There will come a time upon human being, when, at that time, all of them consume usury. One who do not consume it directly, will get it’s dust.” (Recorded by Nasa’i, no.4455, but the status is weak according to Al Albani)

Although the chain of narrators of the previous hadeeth is weak, but it bears a true meaning.

And the time mentioned, is indeed coming. It is seen nowadays that usury in any forms has been people’s consumption, even becoming a tradition among several class of society. While the warning came from His Messenger Shallallaahu’alayh wa Sallam about it was horrible, for those who still have faith on Allah and The Day of Resurrection.

عَنْ عَوْفِ بْنِ مَالِكٍ، قَالَ: قَالَ رَسُولُ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ: إِيَّاكَ وَالذُّنُوبَ الَّتِي لا تُغْفَرُ: الْغُلُولُ، فَمَنْ غَلَّ شَيْئًا أَتَى بِهِ يَوْمَ الْقِيَامَةِ، وَآكِلُ الرِّبَا فَمَنْ أَكَلَ الرِّبَا بُعِثَ يَوْمَ الْقِيَامَةِ مَجْنُونًا يَتَخَبَّطُ

In the authority of Auf Ibn Malik, Allah’s Messenger Shallallaahu’alayh wa Sallam said, ” Beware of unforgivable sins. Ghulul (corruption). Whoever take a property through illegal way, then it will be brought to him on The Day of Resurrection. The same for Usurer. Whoever consume wealth from usury, then he will be reanimated on The Day of Resurrection, mad, and ill walk.” (Recorded by Thabrani in Mu’jam al Kabir, no. 110; Al Albani stated that the status was good by supporters from other way, in his book Shahih at Targhib wa at Tarhib, no. 1862)

Based on that saying, we could confer that the usurer had prevented himself from the forgiven and mercy of Allah Subhanahu wa Ta’ala.

The meaning of previous saying above is not showing that even though a person had repented from his sin, he wont be forgiven by Allah The Exalted. But the true meaning is to show about how large and horrible the sin of a usurer.

All muslim have agreed, based on various indications from Al Qur’an and The Prophet’s guidance, that the one who repented from his misdeeds, Allah will accept his repentance, whether the sin is a small, or a big one.

عَنِ ابْنِ عَبَّاسٍ عَنْ رَسُولِ اللَّهِ صَلَّى اللهُ عَلَيْهِ وَ سَلَّمَ قَالَ: وَالَّذِى نَفْسُ مُحَمَّدٍ بِيَدِهِ لَيَبِيْتَنَّ نَاسٌ مِنْ أُمَّتِي عَلَى أَشَرٍ وَبَطَرٍ وَلَعِبٍ وَلَهْوٍ فَيُصْبِحُوا قِرَدَةً وَخَنَازِيْرَ بِاسْتِحْلاَلِهِمُ الْمَحَارِمَ وَاتِّخَاذِهِمُ الْقَيْنَاتِ وَشُرْبِهِمُ الْخَمْرَ وَأَكْلِهِمُ الرِّبَا وَلُبْسِهِمُ الْحَرِيرَ

From Ibn Abbas, Allah’a Apostle Shallallaahu ‘alayh wa Sallam said, “By Allah, who holds the soul of Muhammad in His Hand, indeed, there are groups of my follower who spent their nights through parties filled with arrogance, games that made them unaware of their lives, and then they reached morning while they already transformed to monkeys and pigs. That was because they legalized forbidden things, enjoyed the singers, drank alcohols, ate usury, and wore silks.” (Recorded by Abdullah Ibn Imam Ahmad, in Zawa’id Al Musnad [Musnad of Imam Ahmad, no. 23483]. The status is good by it’s supporters sayings, in Shahih at Targhib wa At tarhib, no. 1864)

usury

At the time of the last pilgrimage, His Messenger had declared that,

أَلاَ كُلُّ شَىْءٍ مِنْ أَمْرِ الْجَاهِلِيَّةِ تَحْتَ قَدَمَىَّ مَوْضُوعٌ وَدِمَاءُ الْجَاهِلِيَّةِ مَوْضُوعَةٌ وَإِنَّ أَوَّلَ دَمٍ أَضَعُ مِنْ دِمَائِنَا دَمُ بْنِ رَبِيعَةَ بْنِ الْحَارِثِ كَانَ مُسْتَرْضِعًا فِي بَنيى سَعْدٍ فَقَتَلَتْهُ هُذَيْلٌ وَرِبَا الْجَاهِلِيَّةِ مَوْضُوعٌ وَأَوَّلُ رِبًا أَضَعُ رِبَانَا رِبَا عَبَّاسِ بْنِ عَبْدِ الْمُطَّلِبِ فَإِنَّهُ مَوْضُوعٌ كُلُّهُ

“Remember, every stuffs of paganism was put under my soles. I have abolished Every case of murders at the period of paganism. The first murder case for me to abolish was the murder of Ibn Rabi’a Ibn Al Harits. Back then, he was milked by woman from The Tribe of Sa’ad, the he was murdered by Hudzail. Usury of paganism also had been erased. The first usury for me to erase was the usury done by Abbas Ibn Abdil Muthallib. Indeed, everything had been erased.” ( Recorded by Muslim, no, 3009; from Jabir Ibn Abdillah)

In this saying, The Prophet Shallallaahu ‘alayh wa Sallam stated that the usury was put under his soles –Shallallaahu ‘alayh wa Sallam, to show how low and detested the usurer is. The Prophet Shallallaahu ‘alayh wa Sallam also considered usury as matter of paganism.

عَنْ سَمُرَةَ بْنِ جُنْدُبٍ رَضِيَ اللهُ عَنْهُ قَالَ قَالَ النَّبِىُّ صَلَّى اللهُ عَلَيْهِ وَ سَلَّمَ: رَأَيْتُ اللَّيْلَةَ رَجُلَيْنِ أَتَيَانِي ، فَأَخْرَجَانِي إِلَى أَرْضٍ مُقَدَّسَةٍ ، فَانْطَلَقْنَا حَتَّى أَتَيْنَا عَلَى نَهَرٍ مِنْ دَمٍ فِيهِ رَجُلٌ قَائِمٌ ، وَعَلَى وَسَطِ النَّهْرِ رَجُلٌ بَيْنَ يَدَيْهِ حِجَارَةٌ ، فَأَقْبَلَ الرَّجُلُ الَّذِى فِي النَّهَرِ فَإِذَا أَرَادَ الرَّجُلُ أَنْ يَخْرُجَ رَمَى الرَّجُلُ بِحَجَرٍ فِى فِيهِ فَرَدَّهُ حَيْثُ كَانَ ، فَجَعَلَ كُلَّمَا جَاءَ لِيَخْرُجَ رَمَى فِي فِيهِ بِحَجَرٍ ، فَيَرْجِعُ كَمَا كَانَ ، فَقُلْتُ مَا هَذَا فَقَالَ الَّذِي رَأَيْتَهُ فِى النَّهَرِ آكِلُ الرِّبَا

From Samura Ibn Jundab. The Prophet Shallallaahu ‘alayh wa Sallam stated, “Last night, I dreamed that there were 2 man came to me, and took me to a holy land. We headed on, until we reached a river of blood. At the side of it, stood a man. If front of him were stones. In the middle of that river, there were a man swimming. The one who was at the river side watched the swimming one. Every time he wanted to swim out of the river, the other man throw the stone at his mouth. Eventually, he got back to his previous position. Every time the swimmer wanted to go out of the river, the other man threw stone to his mouth, until he came back to his position in the middle of the river. I asked, ‘Who is that man?’. One of the angel replied, ‘The one you saw in the middle of the river is the consumer of usury.'” (Narrated by Bukharee, no. 1979)
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