The Quranic principle of spending Allah says in the Quran: ويسألونك ماذا ينفقون قل العفو “They ask you what they should spend. Say: what is beyond your needs.” (Surah Baqarah, 2:219) This ayah gives us a clear principle about spending, charity and responsibility. The Companions asked Prophet Muhammad (peace be upon him) what they should…
A simple guide to working out your zakat Checklist identify the date you first reached nisab (your zakat start date) one lunar year later, total your zakatable assets (cash, gold/silver, shares as applicable, business inventory as applicable) subtract immediate debts that are actually due (and apply your chosen view on longer-term debts consistently) if you…
Where we are in the series We started this series, Seeking Halal Earnings, a while ago now, a few months back. We began with the book of Imam Muhammad ibn al-Hasan, the student of Abu Hanifah, and the one to whom the Hanafi school is indebted, because he recorded the Hanafi madhhab of Abu Hanifah….
As we continue this journey through the main principles of Islam relating to halal earnings, we are still focusing on seeking the lawful, on its etiquettes, its conditions, and its finer details. Alhamdulillah, this topic sits at the heart of a believer’s life, and it touches every interaction, every transaction, and every choice that brings…
Introduction to Mudaraba In this section, we will explore the contract of mudaraba, following the sequence of Imam al-Ghazali, in his renowned work Ihya Ulum al-Din, particularly in the section about al-kasb (earning). Imam al-Ghazali divided earning into six common contracts that people frequently use in business transactions. We have already discussed most of them,…
Continuing the series, Seeking the Halal, the Ijarah contract is the fifth type of contract, based on Imam al-Ghazali’s categorisation in Ihya’ ‘Ulum al-Din, in Kitab al-Kasb (The Book of Lawful Earning). Imam al-Ghazali divided the subject of earnings into six main types of contracts, around which most forms of trade and business revolve. We have…
Istisnaʿ is a sale contract where a buyer (the mustasniʿ) requests a manufacturer or seller (saniʿ) to produce or construct a specific item according to agreed specifications, for an agreed price and delivery time. In the previous session, we mentioned that the salam contract originally began in an agricultural society. Farmers usually lacked cash…
Core Principles Justice and fairness are the foundation of Islamic financial dealings. Riba is prohibited because it perpetuates oppression and exploitation. Money is a medium of exchange, not a commodity to be sold for profit. Trade involves risk and effort; charging for money itself without value addition is forbidden. Islam promotes economic balance, not extremes…
Foundations of halal earning: contracts in Islamic transactions On the subject of halal earning (al-kasb al-halal), we started by exploring one of the earliest works on the topic, written by Muhammad ibn al-Hasan al-Shaybani, a prominent student of Imam Abu Hanifah. He was a mujtahid in his own right and wrote a short yet…
Halal income Halal earning refers to how to earn your living in a way that pleases Allah. It also includes how to avoid falling into haram, doubtful matters, disliked things, or areas that are grey and uncertain. In the previous session, we mentioned the work of Imam Muhammad ibn al-Hasan, the student of Abu Hanifah….
Seeking halal income Earning a ḥalāl living, which is called al-kasb in Arabic, is a very important topic related to everyone’s business transactions, dealings, sales, and so on. It’s essential to understand what is permissible, what is not, the boundaries, the details, and so forth. As I mentioned last time, the first to write on…
We’re surrounded by activities that may seem harmless – buying a lottery ticket or playing arcade games to win prizes. These may appear to be just fun and games, but how should a Muslim approach these forms of entertainment? Gambling is clearly prohibited in Islam Allah ﷻ says in the Qur’an: “O you who believe!…
Ayah 122 of Surat at-Tawbah is a very important ayah and a major point of reference for scholars. ۞وَمَا كَانَ ٱلۡمُؤۡمِنُونَ لِيَنفِرُواْ كَآفَّةٗۚ فَلَوۡلَا نَفَرَ مِن كُلِّ فِرۡقَةٖ مِّنۡهُمۡ طَآئِفَةٞ لِّيَتَفَقَّهُواْ فِي ٱلدِّينِ وَلِيُنذِرُواْ قَوۡمَهُمۡ إِذَا رَجَعُوٓاْ إِلَيۡهِمۡ لَعَلَّهُمۡ يَحۡذَرُونَ, It is not necessary for the believers to march forth all at once. Only a party from each group should march forth, leaving the rest to gain religious knowledge then enlighten their people…
Khaula Al-Ansanya (may Allah be pleased with her)* narrated that Allah’s Messenger (peace be upon him) said: وَعَنْ خَوْلَةَ اَلْأَنْصَارِيَّةَ -رَضِيَ اَللَّهُ عَنْهَا- قَالَتْ: قَالَ رَسُولُ اَللَّهِ - صلى الله عليه وسلم -{ إِنَّ رِجَالاً يتخوَّضون فِي مَالِ اَللَّهِ بِغَيْرِ حَقٍّ, فَلَهُمْ اَلنَّارُ يَوْمَ اَلْقِيَامَةِ } أَخْرَجَهُ اَلْبُخَارِيُّ “Some men wrongfully acquire (and spend) from…
Spend Allah Almighty says in the Quran: Those who spend their wealth by night and day, secretly and openly, have their reward with their Lord; on them shall come no fear nor shall they grieve. (2:275) This description of the Ummah of Muhammad (peace be on him) is those who work 24/7 spending and supporting…