Islamic Finance

Fundamentals
Complete Deen must be adopted

in the whole life

( Madar e Nijat)
Imaniyat and Amal e Saleh
Diagram..
please look it, at separate
attached word doc.(success
diagram)
Financial activities are necessary
for the human beings.( prophets

Importance of financial
activities
i) More sensitive ( Azmaish)
ii) Haqooq ullah + Haqooq al Ibaad
iii) Ibadat is not acceptable due to
unfair (Haram) financial transactions
Hadith e Ibn Umer (r.a) .. Ten
Dirham cloth price one Dirham
Haram dont accept any prayer
..

Basis for financial matters

Wellbeing of the human beings and

to serve them. ()
Justice (Adal)
Honesty and transparency
Carefulness and Cooperation

Means all aspects of our life must be

covered in the light of Shariah

requirements / all things in totality/
balanced life.
Life of Sahabah (R. A)
Sympathy and mutual cooperation
Preparation for the hereafter
(Akhirah)
Dua of Holy prophet (sallalallah e
wasalam) and Sahabah (R.A)

General principles of contracts in the

Quran & Sunnah
Acts and deeds of individuals:
Ibadaat ( ((devotional Acts ) . . . In detail .....
Muamalat ((( transections) . . . In general
term . . . .
Imam ibn Taymiyyah says:
The acts and deeds of individuals are of two types:
i) Ibadat, whereby their religiousness is improved . .
. . Shriah establishes that devotional acts are
sanctioned by express injunctions of the Shariah.
Thus what is not commanded cannot be made
obligatory.

ii) Adat ([ )transactions], which they need

in their
worldly matters.. . As for transactions, the
principle governing them would be
permissibility and absence of prohibition. So
nothing can be prohibited unless it is
proscribed by Allah and His Messenger.

General frame work . So different

people at
different places and in different times my
seek guidance. The lawgiver conceded the
right to Muslim Jurist ( )to frame specific
rules for Muamalat, which may be deemed
necessary under prevailing circumstances.
This methodology of Shariah provides
people a reasonable degree of liberty in their
dealings with each other and entering into
contracts and transactions.

Keeping such treatment of the Muamalat

in Islamic law under consideration the broad
principles can be elaborated as follows:
1. Free mutual consent:

Essential elements to launch a new

business
1) Intent of business ( Niyyah)
pleasing of Allah (S W T) by transforming
our business into an act of worship . . . . .
..
2) Salah al Hajah ( pray Nawafil and
make Dua from Allah (S W T)
3) Be conscious about following things
a) personal ability, skills and experience

b) Family back ground

c) Personal interest
d) Current environment
e) Estimation of available resources
4) Consult with experts( Shariah and
professionals ) also called Istisharah
5) Istikhrah ( consult with Allah (S W
T)

6) Tawakkul on Allah (S W T)
7) Persistency and hopefulness

Essential attributes for a Muslim

Entrepreneur
1) Strong believe on Allah ( S W
T)Iman e Kamil
means fear of Allah (Taqwa)
hadith , Ibn e Abbas (R.A) .
Said.if u care about commands of
Allah u will find Allah with ur self
..if whole mankind wants to hurt
yourself but Allah does not intend
itNOT.

2) Tawakkul and Rada bil Qada (please

with the will of God)
Hazrat Ali said if people make their
strong believe on Taqdeer (Allah) there
will be no tension remaining in their
life.
3) Avoid from disobay
Hazrat Soban (R.A) Human being is
depraved from Rizq due to his sins..

4) Gaining of necessary Sharaih

knowledge about his field
(profession)
a) famous Hadtih e
Mubarikah.Gaining of
knowledge is necessary for every
Muslim
b) Imam shafi says there is two
types of knowledge
i) Faraz e kifayah ii) Faraz

Awareness is the first step

Holy prophet (sallalallah ale

wasallam) used to teach every

body all necessary relevant
commands to his related
field..
Act of Hazrat Umer (R.A) ..
Act of Imam Malik.
According to Imam Shafi and Imam
Gazali there is a consensus that, it

5) Abid .
i) Ayah (al Noor)
ii) Ayah ( al jumuaa)
iii) Ahadiths ..
iv) Masnoon Aamal
6) Purification of the Mall (Zakah)
Hadith, Hazrat Hasan (R.A).said
safe your Mall by paying Zakah

7) Use of Sadqa. Hdith, Qaes (R.A)

. Said purify your mall by
sadqa due to unreasonable talking
. Swearing etc.
8) Courtesy (politeness) in buying
and selling
Hadith. Incident of man who
used to relief to the people .
Jabrael asked him ..
9) Truthfulness (famous hadith.)

Avoiding from the following things:

i) Interfering . while the both

parties are agree to do the transaction
(soum ala soum akheeh)
ii) Don't buy the goods before coming
in the market (Talaqq e Rukban)
iii) Dont sale which you have no
possession
iv) Dont sale the defected goods

v) Advance payment (Baiana) must be

return in case of cancelation of contract
vi) Dont deceit (fraud) to others in any
way
Hadith Ibn Abbas put him in
that grave(snake).. His wife told he
.. Wheat with barley
vii) avoid from doubtful matters
viii) dont buy and sale stolen goods

ix)Dont delay in payment with out any

reason
Hadith..
x) Sale of Mujazafatan (sale of goods without
exact measure)
Hadith
xi) Avoiding from hording
xii) Be careful about Masnoon Duas at the
time of entrance in the market.

Marketing
1) Removing all traces of obscenity and
promotional material(print or electronic)
Obscenity is forbidden in Islam.
Ayah (alNoor) .
It may cover brochures and leaflets,
calendars and diaries, newspapers ads and
TV commercials etc.

2) Deceits and false promotion.

ayah ( Hood), Ahadiths
avoiding to project the image of your
product/ services untruthfully.
Practicing fair and transparent marketing
and sales strategies that may not harm
people.
Imaging (false presentation of) a
characteristic that does not exist, it is an
unethical and unlawful act.

Please ensure trustworthiness in the

following.
a) quality of product
b) quality of service
c) features/functions
d) quality and quantity of ingredients
e) quality of operation
f) misleading packaging material etc

Avoiding to convert wants into needs.

Try to reduce marketing expenses as much

as possible.
Avoiding from Israaf and use marketing
only for product introduction, in this way
customer can buy the product as a ease
way.

Basic rules for the selection of

product
Product does not fall in the category of

Haram.
It must not be harmful for the human
being.
It must not be leaded to any traces of
obscenity.
It must not be made for pomp and show
only.
It must be covered all types of social and
individual public rights.

Four steps for the use of

product.
Essential needs
Comforts
Beautification
Pomp and show

Explanation:
The last one(pomp and show)
is not permissible/Haram.

Rules for the earning of

profit.
To earn Profit by trading is permissible.
There are some basic rules (ethics) that

must not be ignored as Justice(Adal),

Honesty and transparency, Carefulness and
Cooperation, wellbeing of the human
beings and to serve them.
Three types of profit.
i) permissible
ii) not permissible
iii) different opinion among the jurist..

There is not exact limit to earn the profit, it

may be different on the basis of place, time,

supply and demand factors.(OIC)
Hadith.
i) Hazrat Uorwa (R.A) earn double profit by
sale goat
ii) Hazrat hakim bin Hizam also..
iii) Hazrat Zubair bin Awam (R.A) bought a
land in
koufa170,000it is
sold..1600,000 .. 900% profit.

Yes, it is persuaded by Shariah to earn less

(reasonable) profit and make easiness/

leniency for the customer.
Explanation:
In particular circumstances
government can issue its specific rate
schedule to save the social rights of the
public.

Fundamentals for the Halal

profits
Avoiding from the Riba
Avoiding from the element of hording.
Avoiding from the Ghaban e Kaseer (a lot of

difference from the market price)

Khayar e Shart can be used to avoid the
fraud.
Hadirh e khayar.
Avoiding from the deceits and false
swearing
Show the market price for the customer

Haqooq e Mujarrdah
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