Monthly Archives: February, 2013

Fatwa regarding Usury in trading

The following are some fatwas of the Standing Committee for Scientific Research and Fatwa, Kingdom of Saudi Arabia, regarding usury in trading:

Ruling for Trade Up of Gold Jewelry
Wisdom beyond the disallowance of Usury
Question:

Core of the question: One came to a gold store bringing his already-used jewelry, then the store owner bought the jewelry from him, and he mentioned the buying price of that old jewelry in Riyal currency. Before the store owner paid him, at the same place and time, the seller bought new jewelry from the store and he was told about its price. Then, he paid the gap between the price of the old jewelries and the price of the new jewelries. Is it allowed for him to do so, or, should the store owner handed the payment of the old jewelries to the buyer, and after that the buyer paid the price of the new jewelries he just bought there, with money taken from his selling price or other source?

Answer:

In this condition, the store owner ought to pay the price of the old gold jewelry first, and then the seller of that old jewelry, after receiving the payment, is free to choose: if he wish, he may buy new jewelry from the store where he had sold his old gold, or from another store. And if he wish to buy from the same store, he may use the money he received or money from another source to pay the gold he boght. This practice meant for a muslim not to involve in the forbidden usury, that is by selling the lower quality of usury commodity with a similar stuff which has better quality, by adding something on one of it. It is based  on a hadith narrated by al Bukhari and Muslim, – may Allah have mercy on them both- below:
< class=”arab”>
أن رسول الله صلّى الله عليه وسلّم استعمل رجلا على خيبر، فجاءه بتمر جنيب، فقال له رسول الله صلّى الله عليه وسلّم: (أكلُّ تمر خيبر هكذا؟) فقال: لا، والله يا رسول الله، إنا لنأخذ الصاع من هذا، بالصاعين، والصاعين بالثلاثة، فقال رسول الله صلّى الله عليه وسلّم: (فلا تفعل، بع الجمع-أي التمر الذي أقل من ذلك- بالدراهم، ثم ابتع بالدراهم جنيبا)

“That the Messenger of Allah -peace and prayer of Allah be upon him- ever appointed a man to become his employee in Khaibar. One day he came to him bringing the best quality dates, so the Messenger of Allah -peace and prayer of Allah be upon him- asked him: “Are all dates of Khaibar similar to these dates?”. He replied, “No, indeed, by Allah, O Messenger of Allah, indeed we bought a part of this date with two parts (of other kind of date), and two parts with three parts.” Then the Messenger of Allah -peace and prayer of Allah be upon him- said: “Do not do it, sell the ordinary dates- he meant the lower quality dates- with dirham, and then buy the best quality dates using that dirham.”

And guidance is with Allah, may peace and prayer always be upon Prophet Muhammad, his family, and his companion.

Source: “Majmu’ Fatawa al Lajnah ad Da’imah”, 13/466, no. 1974)

Question:

What runs today in gold trading is: one came to me (the gold store owner,-ed) bringing the jewelry that he/she has long worn, and he/she intended to exchange it with a newer gold jewelry, so what I did was: I bought the old jewelry first, with a lower price from the new jewelry’s price, since it costed me some money to reproduce it. After that, I handed the money to him in cash. After he received his money, I weighted the new gold jewelry he wished according to the current price applied in the market -which is more expensive than the price of the old jewelry- , and for information, we didn’t stipulate him to buy new jewelry from our store, it was up to him, if he wanted to buy it from me or from another seller. Please give me explanation about the validity of such transaction.

Answer:

The case you’ve mentioned in the question, that is you bought the gold and then handed the money to it’s seller, then in turn you sold new jewelry to him with current price market without any stipulation beforehand is alright (allowed). Because your obligation is to give the price of the jewelry he sold to you in cash. After that, he is free to choose, if he likes, he may buy a new jewelry from you, and he should pay it in cash. It is alright for you if the money you gave him became a part of money that he paid to you, because selling gold with silver or with any currency is illegal, unless it is done in cash.

And guidance is with Allah, may peace and prayer always be upon Prophet Muhammad, his family, and his companion.

Author: Ustadz Dr. Muhammad Arifin Badri -may Allah preserve him-
Article of www.syaria.com

Starting to Invest using Illegal Money

Starting to Invest using Illegal Money

Question:

” I am working abroad as an accountant who is responsible to write down the number of interest asked by bank from the company where I am currently working. Eventually, I knew that my profession is an illegal profession since I am a writer of usury transaction. Now I’d like to go back to my country to start a new life with my family, but all of my wealth come from that illegal income. What should I do? Some people advise me to spend all my wealth in social activities and I shouldn’t use it at all. While some of them advise me to truly repent to Allah and I am allowed to start a business with it, and spend lots in charities work. For your information,I don’t have any possession and capital but that wealth. What should I do to start my new life?

starting to invest

Answer:

Working as an officer whose duty is to write down data of client who propose an usury transaction, as an usury accountant, writing various letters to support the usury transaction or the like that support the usury transaction is a forbidden profession because it is a form of aiding each other in sin and enmity.

قال الله تعالى: ( وَتَعَاوَنُوا عَلَى الْبِرِّ وَالتَّقْوَى وَلا تَعَاوَنُوا عَلَى الأِثْمِ وَالْعُدْوَانِ وَاتَّقُوا اللَّهَ إِنَّ اللَّهَ شَدِيدُ الْعِقَابِ ) المائدة/2 ،

Allah decreed, which can be translated as, “rather, help one another in acts of righteousness and piety, and do not help one another in sin and transgression. Fear Allah: Surely Allah is severe in retribution.” (Q.S. Al-Maidah/The Table Spread:2)

The Prophet cursed those who consumed usury, it’s client, it’s writer, and both of it’s witnesses. The Prophet said, “They are all the same.” (Narrated by Muslim in hadith no. 1598, from the narration of Jabir)
Continue Reading

Reselling the Purchased Item

Reselling the Purchased Item

Reselling the Purchased Item

عن ابْنَ عُمَرَ – رضى الله عنهما – يَقُولُ قَالَ النَّبِىُّ – صلى الله عليه وسلم –  مَنِ ابْتَاعَ طَعَامًا فَلاَ يَبِعْهُ حَتَّى يَقْبِضَهُ

From Ibn ‘Umar -may Allah be pleased with them both-, the Prophet -peace and prayer of Allah be upon him- said: “He who buys foodstuff should not sell it till he has received it.”  (Narrated by Bukhari in hadith no. 2133, and Muslim, in hadith no. 3922)

Prohibition of selling the purchased item until it is received, from the seller to the buyer, not only applied in foodstuffs such as rice and wheat, but in all traded items.

عَنِ ابْنِ عُمَرَ قَالَ ابْتَعْتُ زَيْتًا فِى السُّوقِ فَلَمَّا اسْتَوْجَبْتُهُ لِنَفْسِى لَقِيَنِى رَجُلٌ فَأَعْطَانِى بِهِ رِبْحًا حَسَنًا فَأَرَدْتُ أَنْ أَضْرِبَ عَلَى يَدِهِ فَأَخَذَ رَجُلٌ مِنْ خَلْفِى بِذِرَاعِى فَالْتَفَتُّ فَإِذَا زَيْدُ بْنُ ثَابِتٍ فَقَالَ لاَ تَبِعْهُ حَيْثُ ابْتَعْتَهُ حَتَّى تَحُوزَهُ إِلَى رَحْلِكَ فَإِنَّ رَسُولَ اللَّهِ -صلى الله عليه وسلم- نَهَى أَنْ تُبَاعَ السِّلَعُ حَيْثُ تُبْتَاعُ حَتَّى يَحُوزَهَا التُّجَّارُ إِلَى رِحَالِهِمْ

From Ibn ‘Umar, he said: “I bought some olive oil in the marketplace, and when it came into my possession I was met by a man who offered me a good profit for it, and I wanted to make a deal with him, but a man behind me took hold of my arm. I turned around and saw that it was Zaid bin Thâbit. He said: `Do not sell it where you bought it until you take it to your place, for the Messenger of Allah -peace and prayer of Allah be upon him-  forbade selling merchandise where it were bought, before the merchants moved them to their places.” (Narrated by Abu Daud in hadith no. 3501; the status is good)

“Sila” which means ‘merchandise’, comprises merchandise in the form of foodstuffs or other forms. Thus, this hadith is an indication that the prohibition of selling of wholesale goods until it is received from the first seller is not applied merely in foodstuffs, but also in all merchandises.

Selling items which already being sold but not yet handed is included in the following hadith:

عن عبد اللَّهِ بْنَ عَمْرٍو قَالَ قَالَ رَسُولُ اللَّهِ -صلى الله عليه وسلم- : وَلاَ رِبْحُ مَا لَمْ تَضْمَنْ

From Abdullah Ibn ‘Amr, the Messenger of Allah -peace and prayer of Allah be upon him- said: “It is not lawful gains without any responsibility to bear the loss.” (Narrated by Abu Daud, in hadith no. 3506; the status is good)

When the items were stored in the place of the first seller, all risk of damages became his responsibility. Thus, when we resold those items, and the delivery became the responsibility of the first seller, then we are free from responsibility of damage that might occur at the place of the first seller or during the delivery process. Hence, the profit we obtained is a profit without responsibility to bear the possible loss. Whereas the parameter of the real form of a handover process is an unwritten, various types of agreement of the society, that depends on the traded items.

Ibn Hajar said, “Shafi’i detailed the real forms of handover. If the merchandise could be handed by hand, such as money and clothes, then the real form of it’s handling is by giving and taking it by hand.

As for the items that could not be moved, such as house, land, and fruits on the tree, then the form of it’s handover is by takhliah (emptying the place, that is letting the buyer to use the item he has bought, -ed).

As for items that usually being moved from a place to another, such as woods, grains, and animals, are handed by moving the items to a place outside the authority of the seller. (See: “Fathul Bari”, fifth book, page 598-599, published by Dar Ath Thaibah, Riyadh, third edition, 1431 H)

Author: Ustadz Aris Munandar, M.P.I
Article of www.syaria.com

Selling and buying transaction mixed with Debt

Selling and buying transaction mixed with Debt

Selling and buying transaction mixed with Debt

عن عَبْد اللَّهِ بْنَ عَمْرٍو قَالَ قَالَ رَسُولُ اللَّهِ -صلى الله عليه وسلم-  لاَ يَحِلُّ سَلَفٌ وَبَيْعٌ وَلاَ شَرْطَانِ فِى بَيْعٍ وَلاَ رِبْحُ مَا لَمْ تَضْمَنْ وَلاَ بَيْعُ مَا لَيْسَ عِنْدَكَ

‘Abdullah bin ‘Amr   said: ‘The Messenger of Allah -peace and prayer of Allah be upon him- said: “It is not permissible to transact a loan combined with a sale, or to stipulate two conditions in one transaction, or to make a profit on something that you do not posses, or to sell something that is not with you.” (Narrated by Abu Daud, in hadith no. 3506; the status is good).

In the above hadith, we found several transactions prohibited by the Prophet -peace and prayer of Allah be upon him-, among which is a transaction of loan combined with a sale.

The meaning of that transaction is, selling of goods with stipulation that the buyer should give a loan to the seller. For example: One said to us, “Sell your book to me, and I’ll lend you money IDR 100.000,-”

Such transaction is illegal due to two reasons:

In this case, there is transaction of loan that yield benefit to the loan giver, that is buying the book, which of course sold with abnormal price.

It is included in the prohibition of the Prophet -peace and prayer of Allah be upon him-, “…. It is not permissible to transact a loan combined with a sale…”

Included in that prohibition the following case: One gave me a loan of IDR 1 million, by requiring that I should buy his cellular phone with the price of IDR 1 million, while the normal price of the cell phone is IDR 800.000. Hence, on the due period, I must hand him over IDR 2 millions.

In this case, the man handed me IDR 1 million, and goods valued IDR 800.000, and he took from me money of IDR 2 millions, and this is an evident usury! If I didn’t want to buy the goods he offered, he wouldn’t gave me any loan. Me too, if I didn’t get any loan, I wouldn’t want to buy the goods.

Author: Ustadz Aris Munandar, M.P.I
Article of www.syaria.com

6 Interesting Points Regarding Rulers

6 Interesting Points Regarding Rulers

1. People Follow Their Leader

Ibn Jarir cited the words of Ali Ibn Muhammad al Madini who said, “According to the citizen of Sham, Al Walid Ibn Abdul Malik was the best of their rulers. He was the one who built mosques in Damascus city, gave the needy among his people financial aids, paid salary to the lepers, and who said to them, ” Do not beg”. He endowed servant to each who suffered from paralysis, and guide to the blinds.

When he ruled, he conquered many countries of disbeliever. He sent all his sons in every battle with The Roman. He succeeded to conquer India, Spain, and other non Arabic countries. His troops even had stepped their feet in China and other countries.

However, one day, when he passed by a vegetable sellers, he took a bunch of vegetable with his hand and asked the seller, “How much is it?”. The seller replied, “so and so”. Then he said, “Add the vegetables, for you take too much profit from such price.”

The experts in history said that the obsession of al Walid Ibn Abdul Malik was to build things, and so was his people. If a man at their time met his friend, he would ask, “What have you build today? What building have you set on your land?”

While the obsession of his brother, caliph Sulaiman Ibn Abdul Malik was women, so as his people. When a man of them met his friend, the first thing he asked would be, “How many times have you married? How many slave girls that you’ve sleep with?”

Some people said, “People will follow the religion or the obedience of their ruler. If the ruler likes to drink alcohol, it will be a lot of liquor circulating in the community. ”

If the ruler has deviant sexual orientation such as being a homosexual, then that is the condition of his people. If the ruler is stingy and greedy, so as his nation. But if the ruler is generous and has good social awareness, then his people’s condition will be similar. If the ruler is greedy and oppressive, so as his people.

If a ruler is a religious, pious man, who are fond of doing goods, then so as his people. The influence of such rulers could be found in several times, on certain ruler (See: “Bidayah wan Nihayah”, by Ibnu Katsir 9:186)

2. The Murji’ah and The Ruler

People told Raqba ibn Mashqalah about some cults, and he said, “Rafidha is a group of people who use lies as their indication. While the Murji’ites follows the religion (majority) of their ruler. I think that Zaidiyya is a cult created by women (due to it’s depravity, -ed). About Mu’tazila, by Allah, in my view, I do not go to my garden and then go home but they, the people of Mu’tazilite, have repented of their false beliefs (because it is an obvious apostasy, -ed).
Continue Reading

Copyright © 2017. Powered by WordPress & Romangie Theme.