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FIQH 201 - Fiqhul Muamalaates



These were notes done by a few students. Please forgive our mistakes and remember us in your duas.
Any correction can be sent to Ummhajer@gmail.com Jazakalahukhairan

Module 1 - Islamic trade transactions .......................................................................................................... 5
Module 2 - Prohibited trade transactions..................................................................................................... 6
Conditions of trade transactions .............................................................................................................. 8
Questions: ................................................................................................................................................. 9
Module 3 - Invalid conditions ....................................................................................................................... 9
Options in Trade transactions ................................................................................................................. 10
Module 4 - Disposal of a Purchased commodity before receipt and rescinding bargains ......................... 12
Riba ......................................................................................................................................................... 13
The wisdom behind prohibiting riba ....................................................................................................... 14
Module 5 - Riba ........................................................................................................................................... 15
Module 6 - Selling Assets ............................................................................................................................ 17
Selling Fruits ............................................................................................................................................ 18
Module 7 - Blighted fruits: rulings .............................................................................................................. 19
The Salam - Sale of Payment in Advance ................................................................................................ 21
Loaning and Loans................................................................................................................................... 24
Module 8 - Mortgage .................................................................................................................................. 25
Guarantee, surety ship, transference of debts, commissioning ............................................................. 25
Guarantee ............................................................................................................................................... 28
Surety-ship - Kafalah ............................................................................................................................... 29
Transference of debts (Hawalah)............................................................................................................ 29
Commissioning - Wakalah ....................................................................................................................... 30
Module 9 - Commissioning Wakalah ........................................................................................................ 31
Conditions on validity of commissioning, interdiction ........................................................................... 31
Interdiction al hajr................................................................................................................................ 33
Module 10 - Interdiction cont .................................................................................................................... 35
Module 11- Conciliation.............................................................................................................................. 36
Neighborhood and roadways.................................................................................................................. 36
Neighbourhoods & Roadways ................................................................................................................ 39
Module 12 - Pre-emption............................................................................................................................ 40
Partnership, kinds of partnership, cooperative partnership, speculative partnership, reputable
partners, manual and comprehensive partnerships............................................................................... 40

Partnerships ............................................................................................................................................ 41
Module 13 - Sharecropping and Renting .................................................................................................... 44
Renting things and hiring people services .............................................................................................. 46
Module 14 - Renting ................................................................................................................................... 47
Competition (Sabq) ................................................................................................................................. 49
Lending something for use Ariyah ....................................................................................................... 50
Module 15 - Usurpation .............................................................................................................................. 51
Damage and damages ............................................................................................................................. 54
Module 16 - Damage and damages cont ................................................................................................... 54
Trusts....................................................................................................................................................... 55
Reclamation of wasteland ...................................................................................................................... 56
Job wages (Jaalah)page 206 pfd ............................................................................................................ 58
Finding lost objects - Luqatah ..................................................................................................................... 59
Foundlings ................................................................................................................................................... 62
Endowment (waqf) ..................................................................................................................................... 63
Waqf cont................................................................................................................................................... 65
Gift and Donation........................................................................................................................................ 66
Module 21 ................................................................................................................................................... 67
Dealings between Muslims and Non-Muslims in Trade Transactions ........................................................ 67
Things haram to sell to Non-Believers ........................................................................................................ 69

Al-Mushaf/The Quran ..................................................................................................................... 69


Selling weapons to Non-Muslims.................................................................................................... 70


Dealing with Non-Muslims in Riba .................................................................................................. 70

Module 22 - Dealings with Non-Muslims.................................................................................................... 73

Ruling on Buying/Selling Dogs ................................................................................................................ 73
Ruling on Buying/Selling of Cats ............................................................................................................. 75
Ruling on Selling /Buying Monkeys ......................................................................................................... 76
Selling something to Non-Muslims which they use for the purpose of their Religion, .......................... 76
Possession of Non-Muslims properties while residing in a Non-Islamic State ...................................... 76
Converts to Islam .................................................................................................................................... 77
What about wealth acquired through haram means that involves interest, earned through dealing
in liquor? ............................................................................................................................................. 78

Module 23 - Dealing with Non-Muslims ..................................................................................................... 78

Module 24 ................................................................................................................................................... 86
Module 25 ................................................................................................................................................... 92
The Mudharabah model (profit-sharing) ................................................................................................ 95
Principles (Taken from Wikipedia) ................................................................................................... 101
Module 26 ................................................................................................................................................. 102
Module 27 Video part a ............................................................................................................................ 109
Modern Issues of Islamic Jurisprudence by Dr.Wahab Al-Zuhaili ..................................................... 111
Module 28 ................................................................................................................................................. 116
Module 29 ................................................................................................................................................. 124
Module 30 Video Part a ........................................................................................................................... 129

Assalamu alaikum
Bismislahir Rahman nir Raheem
These notes were done by a few students.
Sr. Rafia Haniff-Cleofas, Naeema Halim and Bibi Hakh
InshaAllah you will find it helpful.
Please forgive our mistakes and remember us in your duas
Was Salaam

Module 1 - Islamic trade transactions



Its permissibility.

If both parties speak the truth and talk of the defects if any - then their transactions will be
If the lies the blessings in transaction will be destroyed
The liar blessings will be destroyed if both lied then both blessings will be destroyed
A. Allah permitted trade and forbade ribaa
B. Because people needs are interdependent
1. Have to pay money to get a car
Way transactions are validated:
A. Verbal Formula - negotiate with the seller done verbally
B. Actual formula fixed , go in and buy no negotiation (this is what we do mostly on a
daily basis in regular stores, market, groceries etc. the price is fixed we buy, pay and
go no verbal declaration
C. Combination fixed, go in and negotiate

Ways of exchange
Seller gives verbal acceptance and buyer takes the commodity without saying anything
Buyer declares acceptance and the seller give him the commodity buyer honesty to pay could
be on credit etc.
Neither seller nor buyer speaks of the price

Conditions related to the buyer and the seller

A. Transactions valid only by mutual consent
1. Transactions by compulsion not valid forced someone to do s.t they dont want
2. For example when he declared bankrupt, he is forced to sell his goods to pay
B. Person must be free, reached the age of puberty, legally accountable, sane

3. Its ok to send your 6yr old son to buy bread in the corner shop
C. Being the owner of commodity unless acting on behalf of owner

1. P (s) said, Do not sell what you do not own

3. Stock exchange may be issues
4. Only allowed to sell what you have cant sell what is out of stock

Conditions related to the commodity

A. Commodity the thing that exchange hands, the thing for which money is given or
B. The commodity must be halal

1. Fathulbari -

2. Allowed to feed your dogs with the dead animals, but not allowed to benefit from it
but not to sell/transactions
3. Scholars differed in intoxicants for consuming purposes is haram, those used for
medicine scholars differed (less than 1 %)
C. The trade transactions must be available when the transaction is concluded
1. Like a runaway camel, slave
2. Cant sell something taken by force unless ....

D. The Price and commodity must be known to the seller and the buyer

Module 2 - Prohibited trade transactions

Prohibited trade transactions, conditions of trade transactions, valid conditions


A. It cause them to miss obligatory salah
B. If it cause any harm to others
C. To trade when the adhan is called for jumuah (for those who Jumah is wajib)

D. As a matter of fact any adhan for salah

E. Commerce and sale should not distract from salah

Seven kinds of people when Allah will cover them with the shade of Allah a servant of Allah whose
heart is attached to the masjid - Our hearts has to be attached to the masjid
1. Some pple pray in masjid but heart in business.
2. Try to be in masjid physically and spiritually
3. When we die, we want to come back to duniya to devote our live to Allah, but
the answer is, no!
4. We should plan our activities/business around the masjid
F. Illegal to sell anything that leads to disobey Allah
1. Like to sell fruit juices to make intoxicants

2. Like selling weapons to kill Muslims, for jihad its ok

G. Cancel the sale of one another

Unless he ask you to act on his behalf

3. The price will be cheaper if there is no broker
H. Sale of inah
1. Scenario 1:
Example of inah: where on paper - person A sells a commodity on credit to person B
for $20,000. Person B then sells back to the same commodity to Person A for
$15,000 cash. Person B then pays back the credit (loan) on an instalment basis.

There is no exchange of goods. Reason for doing so -> person B is in need of cash.
This transaction is haram its like one type of riba, and a fraud.
2. Scenario 2:
Not an example of inah: Where a person goes to the store and buys a car for
$50,000 on credit. He receives the car. He then decides to sell the car for cash on
the free market. He gets $30, 000 cash. He uses the cash as he likes, in the
meantime, paying his monthly instalments for the car. Why not inah?
a) He was in possession of the car exchange of goods
b) There was no prior agreement with salesman to re-sell the car
c) It was sold on the free market, not to the company he bought the car from

Sahabas had farms

Hadith of Abu Darda wanting to erect fence on his farm but there was a tree in the
Summary Prohibited trade transactions
If it causes you to miss your obligatory Salaah
If it causes harm to anyone
At the time of Jumah or any Adhan
If it distract from prayer
Leads to disobedience of Allah (selling alcohol, pig products etc)
Cancel the sale of one another
Inah this is a form of riba

Conditions of trade transactions


Muslims must keep to the conditions they make

Two kinds of valid conditions:
A. Conditions that ensure surety deposits
1. So as to make the seller free from worry
2. Another example delaying the payment
B. Condition is stipulated that one of the two parties benefit after the sale of

1. I will sell you this house, but I need to live it in for the next 3 months
2. Hadith of Jabir:


1. Would collateral be considered an example of surety under valid

2. How far can you go with bargaining? How low can you go?

Module 3 - Invalid conditions

Conditions of trade transactions, invalid conditions

There are 2 types of invalid conditions

A. Nullifies the contract
1. When another contract is stipulated in it
2. Example when seller makes a condition that buyer must make him a partner in
business, lend him some money, rent his house,
B. Does not nullify contact, but the stipulation is null and void
1. Example when buyer makes stipulation that he will return it if he make loss
2. Or seller states that buyer must not resell
3. Stipulation is invalid, because once the buyer buys it it is his property and can do
what he likes with it
C. Proof:

2. Incident of Bareera wala given to the person who has freed (emancipator). Bahira
and Mugith were two slaves, two sahaba, married. She was emancipated by Aisha
(r) she bought and freed her. At the time of buying her, the seller makes the
condition that he will be the wali. P(s) no, the wali goes to the one frees her. Mughit
had deep love for Baheera but Baheera had deep hatred for him. After she was
freed, she wanted a divorce. When it comes to the heart dont have control of the
a. Islam is a practical religion try to reconcile
b. Rights given to women she had the right to choose
c. Muhabbah will come after the marriage the sunnah

Options in Trade transactions


Islam is a lenient religion, gives ease to us in all aspects of our lives

Eight types of options
A. Option 1 - during the session (majlis)
1. Both parties have the choice to confirm or cancel the deal as long as they did not
conclude / parted ways

3. Not permitted for one party to hasten leave the room, to prevent the other from
reconsidering the deal
B. Option 2 - of stipulation
1. Both parties can stipulate during or after the contract a reasonable amt of time is
given to consider the contract
2. If both parties agree to this condition, then they have the right to agree or cancel
the contract during this period
3. Proof:
a. Hadith :
b. Quran:
C. Option 3- in case of deception
1. If the buyer/seller is deceived due to the misjudgement of the sale, he has the right
to cancel the deal
2. Proof:

3. Three cases where misjudgement/deception is applicable:

a. A stranger buys/sell commodity where a person meets him before he enters
the market and pay less for his goods. He has the right to cancel the transaction

b. Through a fake bidder (najsh) he bids on goods to increase the price not to
buy. It involves fraud and deception.


The seller lies about the price that he bought the commodity for. He inflates
the price so much, that it is so far from the original cost of the commodity.
Where the mark-up is 100 500%, then they offer sale with discounts

ii. Proof: P (s) said, Do not outbid in a sale in order to ensnare others
c. Gullible buyer


Another example of this is when merchants come together to conspire

against a new merchant make him sell his goods for less. This is not only
deception but injustice. The new merchant has the right to cancel the deal
and recover his goods
Let everyone compete in an open market
D. Option 4 - in case of Cheating
There are 2 types of cheating in transactions:
concealing the defects,
displaying the commodity beautifully to raise the price
Sharia allows the buyer to cancel the deal - he did not know of its quality
An example of this type of cheating is not milking the cows so they seem fat to
the buyer


Muslim trader must tell the truth abt the commodity truth = blessings, lie =
blessings destroyed
E. Option 5 in case of defect
1. Buyer has the option to cancel the deal if the defect was concealed from you
2. If not concealed, then buyer cannot complain
F. Option 6 in case of false price
1. This applies in 4 cases allowed to cancel the deal
a. When the seller claims that he will sell for the same price he got it for
in reality its more or less
b. When one claims that they will make buyer a partner in business and
find out later that the capital seller put in the business is less

c. When seller claims that he will make only a small profit, in reality he is
making more
d. When the seller claims that he will sell for lesser price he got it for
buyer finds out its lesser than actual price

G. Option 7 in case of difference

If they differ of goods, price or quality and have no proof, then must swear by Allah that
he tells the truth. Either one can cancel the deal if not satisfied with the others oath
H. Option 8 in case of Quality change
Time elapse since the deal was closed there was change in quality of goods -> buyer
has the right to cancel or go ahead with the deal.

Module 4 - Disposal of a Purchased commodity before receipt and

rescinding bargains

Rulings of Lawful disposal of commodity before receiving it

A. Invalid to sell a purchased commodity before receiving it even tho its measured,
weighed, or counted Imams agreed on this
2. IbnAbass mufasiroon -> foodstuffs refers to any other merchandise that was
B. Not allowed to sell what you dont have authentic view if you know that someone is
interested in a commodity u go out any buy then approach the buyer this ok


Legal receipt of goods

A. ShFawzan goods differs according to their kind
1. Every kind has its own valid receipt
2. If goods are measured weighed and counted -> their receipt must be trough that
means provided that the goods are taken to place of the buyer
3. Hadith of Abdullah ibn Omar riding young camel, the camel is always going in
front, competing with the other camels,. Ps) asked to buy the camel, Omar did not
want to sell. P (s) insisted. Sold to P (s) who then took the camel and give it to
Abdullah ibn Omar (now no one can tell you what to do with the camel)
Differences of the scholars from this hadith:

Note: The transaction did not physically change hands. Some scholars are of
the opinion than buyer need to possess commodity before reselling refers
only to foodstuffs.
Interpretation by the scholars from this hadith: 7 opinions

Need to possess it before can sell it in regards to - Special kinds of food

dates, sultana, etc where riba can happen
Any kind of food not in position cant resell
Only food that can be measured and weighed
Anything that Can move from place to place - land or house dont apply
On each and everything u buy
Only where any things can be measured and weight (not only food)
In any formed that can be measured, weighed or counted
B. One of the standard that has been set by the Islamic Jurisprudence Ways of taking
1. Give the money its in the bank belong to them then its considered an exchange
of money
2. Muraabaha interested in buying something but cant afford it- you buy it from
them, they give you so many yrs to pay off
3. Send an agent to receive the goods on your behalf
4. Goods transfer to your name
5. Possession - goes back the way of that culture, providing it does not contradict


Very serious matter a grave warning


B. Riba is not accepted in Islam, except from a man who is dying when pig meat and
alcohol become halal
C. Jews deal with interest even tho prohibited in their book

E. Disbeliever means being exceedingly ungrateful to Allah, a sinner, disobey Allah
F. Allah does not like the person who deals with riba sinning disbeliever means Allah
call person dealing with interest/ riba a disbeliever.

G. Repent from riba must give back the interest in charity, only principal belongs to you
H. Regarded as one of the greatest destructive sins
I. Allah curse the one who accepts riba, the one who pays it, the one who records it and
the 2 witness


Riba is worst than gambling. Why? Because usurer take from the poor injustice

The wisdom behind prohibiting riba


Riba consumes peoples wealth unjustly

Riba hurts those in need make it difficult for them to pay back loans
Riba prevents good deeds like qardahassana (goodly loan), kindness
Riba result in laziness for the usurer who makes money off the poor and has no need to

Module 5 - Riba

Meaning of Riba
A. Linguistically means increase
B. Shaira meaning usury, interest


Types of Riba
A. RibanNasiah delay usury of payment - When you borrow money, they charge you
money in excess
B. Ribalfadl selling of an item for the same on the spot in excess (charge you more for the
same item)
RibanNasiah delayed usury
A. Increasing the debt of the insolvent person owes another person money to be paid at
a certain time, if cannot repay, they charge you a rate 10% more to pay back for a
longer time to repay.
1. Creditor prolongs the debt
2. Results in excessive increase in debts
3. If someone is in hardship then give them time to pay:


5. Its prohibited for the creditor to increase the debt if the borrower is unable to
B. 2nd type of RibanNasiah
1. Selling goods for the same type but In excess
2. And delaying the date of delivery

RabalFadl Excess Usury

A. Selling an item for another of the same type but in excess, i.e selling 1kg of gold for 1.2
kg of gold
B. This type of selling is prohibited in weight or measure for six items gold, silver, wheat,
barley, salt and dates.
C. Proof: Hadeeth in Imam Ahmad and Imam Muslim

D. Gold for gold must be equal in carat and weight

E. In Saudi they take your gold give you cash in hand, you can buy from them or from
elsewhere. They know its haram to tell u to buy from them they must give u the cash
for the gold they received.

F. Prohibition for the payment for an item of unequal amt. Or money can be used for these
G. Paper money then you give value for value like asking for change for a $50 note u
get back $50 but in different denominations
H. Sh. Uthaimeen if the money is in note form or in silver form the value differs it is
allowed to sell it for higher (example of using coins for payphone in hajj)
I. Wheat, barley, dates and salt -> measure, weigh(wazan) these are also edible
J. Similar foods take the same ruling rice, flour, lentils
K. Sh. IbnTaimiyyah

L. Permissible to sell one item for the other must be done on the spot

M. Random weight and random measure is NOT allowed for example you give him dates
in measure (3 cups) in return for dates weighed (3 kilos) -> not equal

Importance to be acquainted with the rulings of riba

A. If you dont know ask the people of knowledge
B. Important to think about how u gain ur wealth dont imitate others, do ur HW

D. Most common form of riba to delay the repayment of loan and charge interest
Jahiliyah times

Dangers of Riba
A. Allah says

1. Allah address if you should be believers means that its not proper for believer to
deal with interest Allah connect it with iman
2. Fear Allah means those dealing with riba, dont fear Allah
3. Give up what remains due means that a command from Allah, so who deals with
riba disobey Allah this is a command from Allah
4. If dont give up wage war against Allah and His Messenger
5. If u repent u have ur principal, u do no wrong

Another example of usurious transaction innah

A. Where you buy something on credit then sells it back to the seller for a lesser price
B. This is done to get cash in hand

C. Jaiz is allowed u need cash, buy car on credit, got car in your name, then resell car on
auction (free market) for less

Precautions of riba

A. Riba is a major sin

B. Riba destroys wealth
C. Wipes off blessings

Module 6 - Selling Assets


A. Includes houses, land, trees
B. Whatever is related to the assets -> buyer
C. Whatever remains -> seller
D. Islam sharia settle these matters


A. Examples
1. u buy a car, spare tire, tools to change it, stero, /tvset for these extras must agree
on it
2. computer few legal programs but when u buy it the programs are not in it
3. building materials better but not suitable - > better to get it written


A. Includes the roof, walls, land its on& those attached to the house , electrical systems,
water, custom (urf) etc.
B. Auxiliary, complementary, installations attached/detached to sold item
C. Objects detached from the house -> not included in the sale: buried treasure, fire logs in
back yard, furniture


A. Whatever is on the land is included in the sale
B. which will last for a period trees and buildings
C. Garden includes trees, land, walls, buildings
D. Land with plants harvested once - >wheat and barley - > belong to seller
E. Land with plants that frequently picked/cut -> belongs to buyer, coz it part of the land
F. At time of sale any plants to be harvested -> seller
G. If there is a condition in contact that both parties agree upon it must be honoured
H. Date palms pollinated date palm -> belong for seller


I. Same applies to other fruits like grapes, prommegates, mulberry

A. Complete
B. Refer to Allah and His Rasool if there is a dispute

Selling Fruits

Impermissible to sell the fruits on the trees before ripeness appear

A. P (s) forbade the selling of fruits until they are ripe free from blight
B. Forbade both buyer and seller from such a sale
C. Why the buyer? Not to waste his money
D. When P (s) was asked about ripeness they get red or yellow

E. Wisdom behind this fruit must be fully grown, no disease

F. If the fruit becomes ripe, must be harvested within a week, both buyer and seller knows
this, but buyer returns a month later to harvest he lost his right due to his negligence

G. Forbid selling ears of corn until they r white and save from blight
H. Wisdom of this:
1. Not wasting the money of buyer
2. Not to cause conflict

If these fruits are sold with the trees or sold in their present condition (before ripeness), this
becomes permissible in three cases:
1. If you are selling the trees and the unripe fruits are on them this is ok ->sold as one
2. Its ok to sell the unripe fruits before ripe or full-grown to the owner of the land of fruits.
Although this is valid its a debateable issue among the scholars since they fall under
the category of prohibited in the hadith (prohibited to sell unripe fruits)
3. Its ok to sell fruits and plants (ears of corn) before their ripeness and full growth on th
condition that they are picked or cut immediately after the sale - > buyer can make use
of them
If there will be no use of them after cut -> selling them is impermissible -> this leads
to waste of money and property

IbnuTaimiyyahsaid :

In other words plants that r frequently cut are not included in the hadith prohibition

Module 7 - Blighted fruits: rulings


Blight refers to any plant disease affecting fruits and vegetables resulting in their destruction
E. Natural or human disasters
F. Fruits may be sold when they are almost ripe
G. Divine blights beyond human control -> wind, heat, drought, coldness, rain, locus


A. Buyer could not collect fruits before afflicted -> buyer allowed to take whatever amt of
money he had paid for those blighted fruits
B. Due to Hadith
C. This means blighted fruits belong to seller and buyer takes whatever price he (buyer)
has paid for them
D. If all fruits are blighted -> all the money is returned to buyer
E. If some fruits are blighted -> then the amount he paid = to value for the blighted fruits
are returned
F. This also applies when the sale has concluded before the ripeness of the fruit or
afterwards due to Hadith:

A Muslim is one who other Muslims are safe from his hands and tongue
G. You have rights on others, others have rights on you
H. If the blighted fruits are a small amount and cannot be determined -> the buyer takes
I. When fruits drop to the ground or birds eat from them -> not considered blighted fruits,
as long as it is less than 1/3 of the quantity
J. Preponderant opinion that it should be determined by the common custom of the
pple. b/c a deciding a certain amount requires proof

Fruits damaged by divine blight

H. According to the scholars - > seller is responsible, b/c seller sell fruits on the tree by
leaving to buyer
I. Fruits are not actually handed over - > as if seller did not give him those fruits from the


Fruits damaged by humans

A. Such as a fire (wilfully done)
B. Buyer given a choice b/ween 2 things:
1. Cancel the sale and return his money
2. Concluding the sale, ask the person who caused the damage to give compensation


Fruits not to be sold until almost ripe

A. Ripeness varies for grapes -> when they taste sweet
B. P (s) forbade the sale of grapes until they become black (ripen)
C. Apples, pomegranates, watermelon, etc -> ripe when fit for eating
D. Grains ready -> when fully grown and white
E. P (s) says that grains are ready to be sold when fully grown and hard

The Salam - Sale of Payment in Advance


A. Payment in Advance and delaying the receipt of the sold item.
B. Scholars agree that:

D. This kind of transaction is permissible based on:

E. Ibn Abbas the best in Quran among the sahabas


A. Proof from hadith

Specified measure, specified weight and for a specified period

B. Why people need salam?
1. Seller needs the money immediately (to build the airplane)
2. Buyer need cheap commodities
3. Example of airplane pay in advance -> cheaper option


A. Must have definite properties - Properties of the sold items must not undergo any
changes. not valid on items like leather, jewellery, utensils and purses
B. The kind and class of the sold item must be defined
1. For example, if the item is wheat then it must state that and the kind of wheat
must be defined (eg. If rice should say it if it basmati, white, brown etc.)
2. The class if the class of wheat is salamuni it must be defined

C. Sold item must be specified quantity, weight or measure - If the quantity of the sold
item not specific becomes difficult to be exact

D. There must be a specified period for receiving the goods this period must be known
to both parties

E. The item sold must be available (in season) at the time of delivery,
1. If not salam is not valid
2. Cannot pay for ripe dates and grapes in advance for it to be delivered in winter
when these crops are not available at this time
3. The buyer may choose to wait until the fruits are available, or may ask for annulling
the contract and ask for his money back

F. The price of the item must be paid fully in advance at the time of concluding the

Imam Shafi:
Salam not valid except when:
1. Price is paid in advance
2. Before the two parties leave the place where they concluded the transaction
3. If not paid before they leave -> selling a debt for debt

G. The sold item is not specific, i.e. a specific tree or a certain house
1. This will be a liability (debt) on the seller
2. Becoz the tree or house may get damaged before delivery, - you can describe the
details of what you want (eg. A house with 4 bedrooms, brick exterior, with garage
etc. or in the case of a tree an apple tree but specified what type of apple green,
mackintosh, gala, that is so many years old (number) etc.)
3. Delivery of the item must be where the contact of the salam was concluded
4. Place of delivery must be mentioned in contract
Difference of opinion with the scholars regarding:
1. Difference between selling something you dont own (some scholars say this is not allowed)
example: a seller sells some clothes that are not in his possession the buyer pays full amount.
The seller then go and purchase the clothes and deliver it in few days (almost immediate
delivery) scholars say this is selling what you do not own and they differ on this whether it is
allowed or not
2. And salam |(delivered after years) as opposed to in a few days
Shaykhul Islam ibnTaimiyyah he said a delayed delivery (in the case of salam) is allowed then an almost
immediate delivery (few hours or days) must be permissible.
The Hadith Dont sell what you dont have refers to something that is difficult or almost impossible
for the seller to get
Question: At what point does difference between selling something that you do not own turns into
salam? Is it a matter of one month, six months or one year?

Loaning and Loans

If someone take a loan and dont pay it back he will not be able to enter paradise



Lending is a good deed -> it relieves Muslim from hardship

A. Borrowing is not detestable
B. P (s) borrowed
Loan must be legal
A. Must be from someone who is allowed (i.e. not use orphan money)
B. The amount of the loan must be known
C. A liability to the receiver
D. Must return it as soon as he can afford it without delay
Prohibited for the lender to increase the amt of loan ->riiba
A. Any benefit (profit, gift, utility) to the lender -> consider riba
C. You should not accept the gift, it must be returned

E. The intention is to relieving the debt of the needy person without gaining any

F. Allah will bless his money


Returning the loan

B. Must pay back loan without delay
C. Pay back as soon as you can afford to

Module 8 - Mortgage
Guarantee, surety ship, transference of debts, commissioning

A. Refers to security for debt against an article of equal or more value
B. Is permissible by Quran and sunnah and concensus of scholars:
1. Quran: 2:283

2. Sunnah: When the P (s) died his armour was mortgaged with a Jew business man
Bukhari& Muslim
a. Armour was taken for grain food for his family
b. Some people are of the opinion that the P (s) did not do this:
If he wanted food sahabas will give him easily
Need his armour for battle
c. This hadith is authentic, sahih, sound
d. P (s) was generous give away to needy ones , also has honour and dignity
e. This took place when he was on his death bed
3. Scholars agree:
a. that mortgage is permissible on journeys unanimously
b. that mortgage is permissible in residence - majority
4. Wisdom behind mortgage to keep property & protect them against loss

Proof for permissibility:

A. Quran:

B. This permissibility is a mercy from Allah




The details of the contract:

A. The amount, quality, and description of collateral must be known
B. The debtor must be legally permitted to contract. He must:
1. Possess the collateral
2. Have permission to deal with it
C. The debtor is allowed to mortgage his own property for the debt of another
D. The collateral must be valid for selling in case of non-fulfillment
E. Permissible to include the collateral in or after concluding the contract, based on 2:283

F. Allah made a stipulation of the collateral a substitute for writing the contract of debt
1. Written after debt comes into effect
2. Obligatory to be settled by the debtor
G. The collateral must be given by the debtor
H. The creditor does not have to accept the collateral and is allowed to cancel the contract
b/c he alone has a right to claim it
I. It is permissible for the debtor to mortgage his share of property b/c he is allowed to
sell his share to pay back his debt
J. It is permissible to mortgage the purchased article for its price -> liability on debtor
For example:Buys a house/car on credit/cash but the price is not yet paid allowed to
mortgage it to pay its price to the seller.
Disposing of collateral
A. Neither debtor nor creditor is permitted to dispose colateral exceptafter getting
permission of the other
B. If eithe one disposes collateral ->he cause a loss to the other:
1. If debtor disposes of collateral w/out cr. Permission -> he deprives him from
securing the deal
2. If creditor disposes of collateral -> he will be disposing a property that does not
belong to him
Making use of the collateral
A. It must be according to what both parties agree on
B. So, if they agree on renting or concluding any other transactions it will be permissible
C. But if they do not agree to make use of collateral collateral is suspended until
D. Debtor must be able to maintain and keep the collateral:
1. watering, pollinating and treating the trees
2. this is done for benefit of collateral

E. the earnings from collateral -> animal:

1. fatter, can do work
2. offspring
3. wool or whatever is gotten from it
are considered part of the collateral can be sold with collateral for the debt
F. same rule applies to crops of mortgaged land
G. Any damages -> compensation to be joined to collateral b/c its a substitute for part
of it
H. If the collateral is an animal:


If the collateral is damaged:

A. If part is damaged the rest is considered collateral for the whole debt
B. If debtor pays back part of the debt no part to collateral is redeemed until debtor pays
in full
C. When debt is due must pay back in full, whether he gives collateral or not



The guarantor
I. Is the one who takes on the responsibility of the debtor. He guarantee the debt of
another person
J. Guarantee is permissible under Quran, sunnah and consensus of scholars (unanimously)
Surah yusuf: reward of a camels loan
K. P (s) said
L. The interests and the needs of the people necessitates a guarantor -> cooperation in
piety and righteousness to relieve Muslims in need


Conditions of guarantee
A. The guarantor must be legally able to dispose of his assets -> b/c its a financial
B. So a child/mentally disabled person is not able to be a guarantor
C. The guarantor must take on this responsibility willingly, if not, the guarantee is invalid
D. Since liability is a voluntary declaration to fulfill an obligation -> guarantees consent is
obligatory -> like a financial donation
E. Impermissible to take compensation for being a guarantor any gain on a loan = riba
F. The guarantor must pay the debt when the time is due (if not paid by the guaranteed
G. After guarantor pays debt, he is allowed to take that same amount of money from the
guaranteed person not more -> since it was to show leniency to him
H. Guarantee is valid when guarantor gives his consent
I. Creditor has the right to ask guarantor or guaranteed person for his money both of
them are liable (Majority of scholars opinion)
1. Some scholars -> should ask debtor first, if unable to pay -> then ask guarantor
2. Guarantor is legally subsidiary to debtor
J. Guarantor is not absolved from the debt until the liability of the debtor is discharged

III. Number of guarantors

A. Permissible to have more than one guarantors whether they claim liability for the whole or
part of debt
B. Responsibility for each guarantor not absolved until responsibilities of all of them are
discharged/ or when debtor pays back the debt
C. Not necessary for the for guarantor to know the debtor nor creditor to make guarantee valid
D. Guarantor can make his intentions known to the creditor

Amount of debt
A. Permissible to guarantee a known or unknown amt (if it is known later)

B. The camel load is not known at first, later its known after loaded


Dont understand this

Surety-ship - Kafalah

A. Ones Commitment to present the debtor to the creditor bring the person to pay

Absolved if person dies

Transference of debts (Hawalah)


A. Should agree when transfer debt from a rich person
B. A leniency
C. Selling debt for debt not allowed
1. IbnuQayyim differs on this its a kind of paying back debts, not selling


Legal conditions:
A. First
1. Must have approval from the substitute debtor
2. Debts must be under liability of substitute debtor
B. Second


Debt must be identical to transferred debt in kind dirhams for dirhams

Must be equal in regards to description
Must have the same time for due dates, whether paid in cash/credit
Its meant to be - leniency not a profit

C. Three:
1. Consent of original debtor is necessary
2. Consent of creditor not necessary to transfer debt to rich person

Commissioning - Wakalah

A. When you appoint someone to act on your behalf
B. Permissible according to Quran, sunnah and consensus of the scholars
1. Quran

2. Hadith:


Commission is valid:

Module 9 - Commissioning Wakalah

Conditions on validity of commissioning, interdiction

C. When you appoint someone to act on your behalf
D. Permissible according to Quran, sunnah and consensus of the scholars
4. Quran

5. Hadith:


Conditions of Commission:
A. Confirmed by permission in statement (I permit you to do so and so)
B. Can accept commissioning instantaneously or delay it
Proof: P (s) representatives deferred their acceptance when asked by P (s)
C. It can be timed or conditioned (i.e. for one month or when the lease is over, sell the
D. The authorizer must designate a specific person to be his representative
E. Commission is void -> if authorizer appoints someone he does not know


Matters in which commissioning is permissible

A. Concluding or cancelling all kinds of contracts
1. Examples of concluding transactions:
a. Selling
b. Buying
c. Lending loans
d. Speculating
2. Examples of cancelling transactions:
a. Divorce

b. Khulla
c. Emancipation
d. Cancellation of sales
B. In some acts of worship:
1. Distribution of zakah and charity
2. Fulfillment of vows, expiation
3. Hajj and umrah
C. However not permissible in individual act of worship:
1. Salah
2. Fasting
3. Wudo/ghusl
D. In investigating and executing the hudood of Allah


The authorized person cannot designate another to act on his behalf except:
a. Permission
b. Noble position
c. Unable to do it
d. Cannot do it

A. Must authorize a trustworthy person

B. Both parties can cancel at any time

Matters nullifying commissioning:

A. By cancellation, death, mental incapacity -> to either parties
B. If authorizer discharges the representative
C. When either parties are interdicted of legal capacity


When commissioning becomes possible


Whoever has the authority to disposed can authorize or be authorized

Who has no legal authority to dispose cannot do so
A representative should not buy or sell from himself to avoid suspicion
Not permitted to buy/sell from his son, father or wife favouritism only with


Actions related to the authorizer and the representative

A. The authorizer must fulfill some legal commitments with regard to transactions
delivering the price, receiving the purchased, cancelling for defects, asking for his rights
B. Representative - Deliver the purchased item -


Commitments of the representative

A. He is accountable
B. Not liable for things lost or damaged as long as he does was not negligent
C. Liable for what is lost/damaged if he was negligent

Interdiction al hajr


A. Preventing someone from disposing their property
B. Interdiction is to protect the properties and rights of people
C. Its legalized on ones who should be prevented from disposing their properties
D. Proof that its legal:

1. Allah has decree interdiction for the weak-minded and the orphans
2. Both are to be given back their property when they become of sound judgement
Interdiction 2 types
A. 1st type
1. To safeguard others share in property of the interdicted person
2. Insolvent person for safeguarding the share of creditors
3. Safeguarding the share of heirs in their inheritance
4. Imposed on sick person to prevent them from bequeathing more than 1/3 of his
B. 2 type:
1. Imposed on person for his own benefit in case he should waste/destroy property
2. Applies to minor, weak-minded and insane

Ayah applies to the guardians of the property of women, children, orphans, weakminded, insane persons lest they should waste them

Interdiction for safeguarding the share of others

A. Bankrupt person whose property when sold not able to cover debts lest he should
cause harm to creditors
B. Insolvent debtor should be granted a grace period by the creditors

C. Regarding the favour of granting ease

D. But its better to discharge the debtor from this debt

E. As for the debtor who can settle his debt no need to interdict him. However if
creditors ask him to pay he should

F. When a wealthy indebted person delays paying his debt cause injustice to creditor
G. IbnTaimiyyah: scholars agree on this

H. If debtor insists on not repaying -> those in authority intervene sell his property and pay
his debts



Four rulings on interdicted person

A. 1st ruling
1. His debts are to be paid from property before being interdicted
2. Whatever property comes to him money from legacy, compensation, gift,
inheritance, -> must use this to pay creditor
3. Deny the right of disposing his property the rights of the creditors are due on h is

Module 10 - Interdiction cont


Four rulings on interdicted person

B. 1st ruling
4. His debts are to be paid from property before being interdicted
5. Whatever property comes to him money from legacy, compensation, gift,
inheritance, -> must use this to pay creditor
6. Deny the right of disposing his property the rights of the creditors are due on h is
property not allowed to take out loan
7. Just before declare bankruptcy, some pple change the title to his family and try to
sell off property and hide the money Allah sees everything you do.
8. Imam IbnulQayyim :
a. The creditors right must be paid from the debtors entire property
b. Those in authority should interdict the debtor
c. if the creditors money were not paid from the debtors entire property, those in
authority have no right to interdict him. - > like case of person on deathbed ->
not allowed to dispose of his property
C. 2 ruling:
1. When a creditor finds a piece of merchandise he has sold/loaned/rented to a
bankrupt person before interdiction -> creditor is allowed to take it back
2. Proof:

There are 6 conditions for taking back money (and the like) from a bankrupt
a. The bankrupt person must be alive:

b. The bankrupt person owes the whole price if the owner is paid part of the
price -> not allowed to take back property
c. The bankrupt person has the very property (he took from the owner). If

Owner finds only part of it -> not allowed to take back -> since he only found
part of it


D. The 3rd ruling

E. The 4th ruling:

Interdiction ends:
1. A child when he / she become mature reaches puberty and has sound judgement
2. Insane person when he regains sanity and has sound judgement
3. Weak minded person comes to his senses and becomes reasonable in financial transaction
Guardianship of the financial affairs of any such three kinds of person (child, insane person and the weak
minded person) is carried out during their interdiction by the person father who is just and of sound

Module 11- Conciliation

Neighborhood and roadways


A. Conciliation is an agreement on the basis of which settlement is reached between two

disputing parties
B. Greatest useful contract
C. Ok to lie if needed to make settlement
D. Conciliation is legalized according to the Quran, Sunnah and consensus of scholars
1. Quran and settlement is best An-Nisa:128



4. Hadith Bukhari& Muslim



A. When you try to reconciliation intention first to please Allah then the people. So must
judge by Q & S
B. Peacemaking the rights of people
C. Peace making the rights of Allah must be adhered to the hudood must be followed
Types of consiliation:


Conciliation of Acknowledgement two types

A. Conciliation between two parties to return the very type of object of disagreement
1. For example ackn. Owing a debt or sum of money which is in your possession
2. Both parties then agree to conciliate when indebted part pays part of the debt &
the creditor relinquishes the rest
3. This kind of conciliation happens when the creditor forgives part of the debt and
takes the rest.
4. This type of conciliation is valid unless the acknowledgement is stipulated, for
a. The debtor says he ackn owing money to the creditor provided that the debtor
gives him so and so
b. Or the creditor may release the debtor from the debt stipulating that the debtor
gives him a certain thing
c. Conciliation in this manner is invalid -> Creditor has right to ask for all his rights
d. For this type of conciliation to be valid -> debtor cannot refuse to give creditor
what he owes him -> in case there is no conciliation -> act of consuming ones
wealth unjustly
e. The creditor must be of those who donation is valid- What he gives must belong
to him legally (he cannot give the money of an orphan to the debtor as a
f. Hadith of Jabir P (s) asked the creditors to grant ease to Jabir, they didnt. P (s)
made dua for Jabir at the harvest time - > the Baraka increased and he was able
to pay off debt
B. Conciliation between two parties for returning a thing other than the object of

1. When someone ackn that he owns a person a debt or an object ->

2. Both agree that the creditor take an object as compensation for a different one
3. If conciliation is to return money for money an exchange whose rulings are
applied in this transaction
4. If conciliation to give back an object in return for money -> will be considered
selling rulings are to be applied in this transaction
5. If conciliation -> for establishing a benefit, for ex. When the creditor hires a place
belonging to the debtor -> renting - > whose ruling are to be applied
6. If conciliation to give back money for the disputed object -> considered selling

Conciliation of Denial
A. When debtor is ignorant of the claimed object
B. Respondent asks claimer to relinquish his claim and to arrange conciliation -> in which
the claimer will get money paid on the spot or deferred
C. Conciliation is valid accord to hadith:

D. The benefits of this type of conciliation

1. Which the debtor gains
2. Avoid legal proceedings, just take oath before judge
3. For creditor -

E. In conciliation of denial
1. The claimer is regarded as selling the claimed object ->
2. since he believes he takes compensation for his money
3. he must abide in what he believes
4. if respondent had bought the claimed object from the claimer - > ruling on selling
a. right to return sold items if faulty
b. right for pre-emption if applicable - one person has the right to buy something
more than the others, this right is preemption

Neighbourhoods & Roadways

Hadith of Abu Darda why dont you sell me this palm tree and you get my entire farm for a tree of

To allow water to pass through the land/ house top of neighbour:


For compensation -> valid

Compensation for service while land/housetop still belongs to owner -> renting
If neighbour wants to possess the land/housetop -> selling
If neighbour in need of passage through land for compensation/conciliation ->permissible since
its necessary

For The rest of the notes -> read the book

Module 12 - Pre-emption
Partnership, kinds of partnership, cooperative partnership, speculative
partnership, reputable partners, manual and comprehensive partnerships

Allah ordained pre-emption to prevent wrong doings in a partnership

A. Pre-emption is to give a specific person first chance at buying something the right to
purchase something before others
1. For example, if a partner wants to sell his half of the business his co-partner has
first dips over anyone else
2. Or if a person is selling a house, garden the neighbour or co-owner has the first
right to buy it
B. is stated in the sunnah
C. Benefits of pre-emption (IbnQayyim)
1. Buyer prevents harm caused to him by p/ship
2. Seller is paid due right- price, therefore not harmed
3. Protects the buyer from sharing the p/ship with a strange party
D. Fraudulent ways to deny a person pre-emption is wrong. Imam Ahmad said:

E. Property should be sold at price agreed upon by both parties

1. Normal standard price
2. Cannot over price the product other person harmed
F. Pre-emption not necessary in certain circumstances

G. Pre-emption is valid on immovable properties land, real estate, not on furniture,

animals, etc.
H. Impermissible for partner to sell his share to other than his counterpart unless he
informs him


IbnulQayyim -> partner has no right to pre-empt a sold property if he was asked
permission before the sale and showed no interest
Majority of scholars -> permission does not nullify the right to pre-empt


Proof of p/ship:

K. P/ship with disbeliever:

1. Power of control to believer
2. Avoid riba
L. P/ship 2 sections:
1. p/ship in properties real estate
2. p/ship in contracts running the business, sharing in capital and work, or just work,


Inan (cooperative p/ship)

A. Description:
1. Equality b/ween partners -> in capital and labour
2. Equal participation
3. Equal capital for business is given
4. May work together to invest
5. Or one who run the business -> takes more profit
B. Capital
1. Better to put down money instead of merchandise
2. Some scholars say merchandise is not permissible as capital, b/c:
a. The merchandise may go up
b. While that of the other partner may not go up
c. One share the increase in partners wealth
3. Other scholars says merchandise is acceptable as capital
a. Dispose freely of funds
b. They share whatever they earn
C. Conditions of p/ship:
1. Ratio of profit must be stated whether 1/3 or 2/3
2. If not specified can lead to fitna/ corruption


Mudarabah (Speculative p/ship)

A. Definition
1. Giving money to others to trade in return for a share in the profits

3. This p/ship is permissible was practised in the time of the P (s)

4. Wealth can only be developed or invested in trade and transactions

B. Who is a speculator?
C. According to IbnuQayyium:

D. Conditions
1. Profits of speculator must be specified up front
2. Whatever agreed upon must be abided upon
3. Set a certain period of time for this p/ship (i.e. 1 yr)
4. Speculator cannot work for another investor at the same time without permission
a. If he does, then the profit is divided b/ween him and 1st investor according to their
previously stated contract
b. This is so b/c effort exhorted for the 2nd investor should have been for the 1st
5. Not allowed to spend from capital petty expenses (travel) unless agreed upon

Reputable partnership

B. Same condition as inan p/ship given the same rulings


Manual p/ship

B. Conditions
1. If one partner is ill -> appoint another person to take his place
2. If one partner makes an agreement the rest of partners should agree

3. All are equally to whatever in brought to p/ship (Saad brought two prisioners, while the
others nothing)
4. Permissible for partners to share in ownership; one partner animal as taxi, another
tools and another labour -> they all share in the profits

Comprehensive P/ships

Module 13 - Sharecropping and Renting


A. Muzaraah and Musaqah 2 systems for conducting agri transactions
B. Person may have a number of trees but cant attend to or use them vs
C. A person who have capacity to work but does not own trees nor land
D. Sharecropping share in crops in return for labour




Legal evidence for Musaqa and Muzaraah


Ruling of Musaqaah
A. The fruits from the trees should be edible
B. Islamically acceptable cannot be mariwana
C. Sharecropping portion must be stated specified portion of produce
D. Must be a portion of the produce, not the beginning amount
E. If certain amt of money is specified invalid
F. But if you are hiring a person to do the work its different
G. Cannot be from specified trees loss/gain to one
H. Binding contract- cannot cancel
I. For a specified period of time


Rulings on Muzaraah
A. Giving seeds to the sharecropper is not a condition for the validity of muzaraah
1. Was based on analogy corrupted analogy
2. Capital in speculative p/ship goes back to owner
3. The seeds do not go back to the owner its used
B. P (s) granted the Jews, the land of Khaybar on the condition that they give half of the
produce to the Muslims -> no mention of seeds
C. Must have a specified share for the sharecropper/landowner from the harvest
D. Ibnu qayyim muzaraah further away from harm
1. tenancy (hired person owner bears the loss if there is a disaster)
2. share cropping loss and gain is shared
E. Invalid:

1. To specify a certain weight of the crop

2. For l/owner to stiipulate that he will take an amt of crop = to seeds provided, then
share the rest - > b/c land may not yeild this amt.
F. Renting land for gold n silver
1. Rafi said no harm in it
2. Yes P(s) prohibited it lead to harm - > if to rent for yeild of specific portion -> no
3. Ibn Munthir -

Renting things and hiring people services

Module 14 - Renting

The duties of the Lessor and the lesee


Renting (Ijara) binding contract

Regarded as sale judgements of sale applies
Cannot cancel lease except with consent of each other
However if defect appears which lessee was not informed of before signing the contract
right to cancel
F. The lessor must hand over object of rent to lessee enable him to use it
G. If lessor prevents lesee from using it partly or for the whole time - no right to receive rent
for that time

H. If lessor rented but did not collect rent for a period of time full rent is due from lessee ->
contract binding

III. Wages.
A. Pay the wages immediately after the work. P (s) said:


From the beginning agree with the price, the work



Competition (Sabq)
Pg 172 pdf

Competition is good
A. In good deeds
B. In certain sports
C. In business
D. Races and contests races between animals,
E. Contests archery, shooting

F. Horse-racing
G. IbnTaimiyyah said:

Any competition that benefits the religion is permissible

Sports for health and fitness - ok

For competition 1 permissible to receive a prize

For competition 2 Not permissible to receive a prize

Lending something for use Ariyah

Pg. 178 pdf
II. Definition

C. Does not include eatables, or articles which will be consumed


Module 15 - Usurpation


B. Proof:


Usurped wealth:
A. Could be real estate
B. Or movable property
C. Consequences:

Father dies and leaves the house to eldest son. Islamically is does not belong to him. He
must distribute it accordingly to sharia
2nd Issue of divorce
Law of land : property is divided 50%
Islamically : property should go to the one who owns the property
In both situations usurped wealth should be returned back.
D. A person may have 2 face in this world, but 2 tongues in the hereafter, 2 tongues of the
For naema and
If talking is silver, silence is gold

All dealings with the usurped object is invalid

If the 3rd part knows that the property is usurped he is liable
However, if unaware, -> the 1st usurper takes responsibility
Not allowed to buy stolen property

Damage and damages

Pg 188 pdf
Story when food was sent to Aisha (r ) house, she threw it and the vessel broke. The P (s) returned a
vessel from Aishas house to the other wifes house.

If due to negligence or not that result in harm or damage to others is liable

Module 16 - Damage and damages cont



Many examples of carelessness directly responsible

A. Holes dug in the streets
B. Blocks and obstacles on street
C. Blocking street using them as if the own them parking as they like
Incur financial liability
A. If your dog bites another person, cause damage
B. If someone digs a well in courtyard
1. Responsible for any damage caused
2. Obliged to keep the well safe from others to cause any injury
3. Considered a transgressor if leave well unprotected
C. Swimming pool in backyard
1. If child drowns responsible
D. If cattle cause damage in night the owner of is responsible for it
1. However in day time not liable for peoples property its known that cows graze
in the day
2. Conventional wisdom that the owners of property should guard their property
against these cattles


E. If an animal is led or ridden

1. Owner only responsible for damages of the front organs mouth, forelegs
2. Proof:


F. Can kill human being or animal in self defence not liable to pay back
G. No compensation for damages for haram stuff crosses, wine containers, musical
1. commendable to destroy haram stuff
2. Proof hadith of Umar take knife to destroy wine containers in market of

Pg 194 pdf

A. Deputing someone for the voluntary preservation of something Sharia meaning
1. Trust property the trustee is entrusted with
2. Safekeeping w/out recompense
3. Great reward for this
B. Conditions:
1. Maturity
2. Sanity
3. Puberty
C. Not sure if he capable to take care of trust detestable to be entrusted


A. If the trust is damaged while in care of trustee who has not misused it -> not
financially responsible
B. Trust is regarded as property of trustee



Must secure the trust like his own property

Once agreed -> Obligated to keep the trust
If the trust is an animal must give it food -> foddering is an obligation
Permissible for trustee to leave trust with whoever he usually entrust his property to
like wife, servant, accountant
H. If trustee leave trust with stranger ->he is liable for damages
I. Unless there is a compelling reason - > on death bed -> not liable for damages
J. If trustee is worried abt trust and wants to travel -> give it back to owner or his deputy
1. If cant find owner -> take with him on journey, if not able to do so,
2. Then entrust to ruler (person in authority) substitute for owner in absence
3. Proof: when P (s) migrated to Madina, he left his trusts with Umm Ayman, and
commanded Ali to return it to its owners
4. If dying -> entrust to ruler
K. Abusing a trust -> trustee becomes liable for damage
L. Trustee supposed to be honest:
1. We believe what he says
2. If he says that trust was damaged w/out misusing it -> then we believe

3. Trustee is innocent until proven lying

4. If trustee claims that trust was damaged by fire must bring proof
5. If trustee delays in returning the trust to owner he must compensate owner for it
-> b/c its prohibited to do so

Reclamation of wasteland

A. A land which is not reserved for utilities or possessed by a legally protected owner.
B. This definition excludes 2 kinds of lands:

C. If a wasteland is reclaimed by someone, it belongs to him

D. Proof: Hadith narrated by Imam Ahmad:

E. Exceptions to wasteland:
1. Haram Makkah - > Mina- rituals of Hajj
2. Arafat
F. Fakihs differ in the conditions that required to make reclamation of wastelands


Conditions - Wastelands can be legally possessed by some ways:

A. 1st - If it is surrounded by an invulnerable wall solid wall
1. Proof:

B. 2nd If he digs a well and gets water from it. No water -> w/land does not belong to him
C. 3rd If a person supplies w/land with water from well or river, as long as water is more
useful than wall
D. 4th If the w/land is flooded -> cause it to be infertile and a person drains the water ->
reclaim the w/land
E. Common convention of the country must be followed
F. If a person is given w/land, he does not own it until he reclaims it (see 4 conditions
above) - it can be taken away from him, reallocated to someone else who is able to
reclaim it.
G. If a river, valley passes through someones land, it is permissible to irrigate the 1st land
by allowing ones ankle height (4 inches) to flow in land, then pass on to the next and so
H. Proof for this :


If water is owned by landowner - > s/b divided with the others

K. Imam of the Muslims must protect pasture for camels for charity, horses for jihad, etc

Job wages (Jaalah)page 206 pfd


A. the wage given to someone for help or work done fixed amount of money for work
done (not necessarily for work by hours but work done by contract for a specific job)
B. Permissibility in Quran

Story of Yusuf pple from far away comes for grains the brothers came. Father did not
want to send Bin Yamin. Yusuf wanted to keep him. The vessel was found in Bin Yamins
load. Whoever found it will get a camels load (wage)
C. Jaalah is like a contract -> paint your house for $1,000
D. Wage given for doing rukya (see hadith on pg 207)

A. If a person perform work a specified wage he earned it
B. Agreement is validated by performance of work
C. If a group of people do the work the wage is divided up
D. Work without wage stipulated considered task w/out employers permission -> no
E. If wage is stipulated after the work is started worker gets paid for work after the
agreement (proportional)
F. Giving wages is a permissible agreement
G. Both parties are entitled to cancel it
H. If worker cancel it he deserves no wage drops his right
I. If employer cancel it after the worker starts the job, employer must pay for the work
done so far
J. Giving wages is different from hiring people services - ijarah


Differences between jaala and ijarah

Jaalah (job wages)

Specifying the service not a condition for

validity of hiring
Does not specify time period for task to be
Ok to stipulate task and period of job
One is not obliged to perform the task
Do not specify a specific person - validity of

Ijarah (hiring service)

Specifying the service a condition for

validity of hiring
Validity of agreement stipulates the period
of work must be specified
Worker receives payment when job is done
Obliged to perform the service
Specifying the worker condition of hiring

Two parties can cancel w/out permission of

each other

Binding contract neither party can cancel

unless mutually agreed upon

Exceptions to work w/out stipulating wage

A. A broker, or porter
B. If someone rescue another ones property from damage flood, fire, etc

Finding lost objects - Luqatah


A. Luqatah refers to any lost property, excluding animals, found by someone
B. Islam enjoin on safekeeping of ones property


Three kinds of lost property

A. An Insignificant object
1. Object that pple dont care abt
2. Example whip, loaf of bread, fruit, stick
3. If found permissible to use immediately w/out advertising
4. Proof: hadith of Jabir
B. Animals safe from small predators
1. These are animals that can defend themselves against small wild beasts
2. Example big animals like camels, horses, cows, mules, birds (flying)
3. Prohibited to pick up these animals as lost
4. Proof: P (s) enjoins Muslims to leave these animals to survive by themselves

5. Same ruling applies to large objects

C. Money, belongings and small animals
1. These small animals cannot fend for themselves
2. Permissible for person to pick it up if they are trustworthy fall under three

a. Proof:
c. Better to take it or else the wolf would eat it.
You can eat it, sell it and give the money to the owner
Owner has the right to take it back before it is eaten


3. Must advertise for 1 year

4. Person who claims it must describe in detail the lost article
5. If correctly described then give to person
6. But if not correctly described its impermissible to give
7. If no one identifies it then you can utilize it after one year
8. If owner comes after 1 yr and describes it correctly must be given to him

1. Trustworthy satan will not tempt you to take it for yourself

2. Know the description
3. Announce it every day for the first week then according to the custom (prohibited to announce
inside the masjid)
4. Person describes it correctly you are obligated to give it to him. You should not make it difficult.
If you get any profit from that article you must give that back to owner as well. Wrong
description impermissible to give to that person
5. Owner does not come within a year the finder can take it and use it. But he has to know its
description so if owner comes after that he can give it to him (once he describes it correctly)
temporary ownership belongs to finder until owner comes
6. If lost object in Haram can never be owned by finder. Continuous public announcement.
7. Finds an animal which the owner releases it (left animal in dessert due it its inability to walk or
to keep it) the finder owns it.

8. Child or foolish person finds an item guardian is responsible to announce it and try to finds its
owner. If he leaves it with the child and it gets damaged guardian is responsible.
9. Person picks up an article and puts it back in the same place he is legally responsible for it

Prohibited to announce inside the masjid, outside the masjid is ok

4th if claimant describe correctly must give to him, w/out oath



A. a foundling is a baby deserted or abandoned by his parents or who is lost from them,
and whose parentage is unknown in both cases.

B. If found, take him, support and provide lodging for him -> collective duty
C. If not done -> sin on all Muslim community
D. To pick up a foundling -> akin to saving a life




A lost child -> freed freed is considered the norm, slavery an exception
Whatever money is found with baby -> considered his -> to be used on him
If no money on him, the guardian get financial help from the Islamic treasury
Guardian is liable for his b/feeding -> if Baitul Mal unable to pay, then guardian pays
Leaving a foundling -> result in death, taking him in and spending on him -> kind of
hospitality shown to guests
Religion of baby if found in Islamic country -> consider Muslim, if found where
majority of pple are disbelievers -> then disbeliever
Prohibited for Muslim baby to have disbeliever guardian
Likewise not practical for Bedouin to be guardian -> they move from place to place
When foundling dies/killed his inheritance/blood money is given to Baital Mal
1. as long as there is no kids to inherit from him
2. if he has a wife she gets of the inheritance
If heirless foundling is premeditated killed,
1. The Imam is legally the guardian
2. He has the right to choose retaliation or blood money
If foundling is premeditatedly assaulted injured, he has the right to retaliate /pardon
when he reach puberty
If the parents returns to claim the child he must be returned to them it is for
foundling own good to know his own lineage
1. Must prove that the child is his
2. Decision taken to genealogist - DNA of today

Endowment (waqf)

A. Endowment refers to the retention of any property that can be benefitted from, by
suspending disposal of it and dedicating its revenues to public use as an act of charity.
B. Examples houses, shops, gardens , etc. can be given in charity
C. Endowment is desirable in Islam -> pious act, brings man near to Allah
D. Umar (r ) said :



A. Donor of waqf:
1. Free
2. Adult
3. Sane person
4. Not qualified: child, insane, weak minded person or slave



Conditions for the validity for establishing an endowment

A. Donor must be legally qualified to manage his own property
B. Endowed object must be identifiable article which is utilizable and non consumable
C. Endowed object must be specified -> do not say one of my houses specify which one
D. Must be something beneficial -> a means of getting closer to Allah ->
1. Example - masjids, books, houses,
2. Endowing something to support kith and kin




3. Invalid to be made for anything related to disbelievers temples, books of unbelief

4. Providing water and food for custodian of certain graves
If the endowment is made to a specific person his ownership must be legally valid
1. Because endowment is like an ownership
2. The receiver must be able to possess property
An endowment must be fulfilled once its made
1. Invalid to be temporary/suspended except if endowment is conditional upon
donors death
2. Valid for donor to say, when I die, my house will be endowment for the poor
If endowment is made conditional after death - > must be given from 1/3 of his wealth
endowments take the same ruling as bequests
It is obligatory to fulfill the conditions of the endowment as long as it does not go
against the Quran and Sunnah
Endowment to children are divided equally unlike like a will
What you inherit becomes yours whereas in an endowment you continue to benefit
from it. No one inherits an endowment.

1. If a Muslim finds a disbeliever baby how does he raise him? Does he take him to church?
Dont we have a responsibility to raise him Muslim due to the hadith, each child is born on the
2. A baby was conceive as a result of zinna, the non-Muslim father wanted him to be aborted, the
Muslim mother decided not to but wanted to give him away to a Muslim family. The child is now
3 years old, living with the Muslim family and the parents are nowhere to be found. Will he be
considered a foundling?
3. When an adopted son (foundling) makes dua for his parents - does the adopted parents get a
share in the duas since they are the ones who brought him up in Islam?
4. Does an endowment have to be self- sustaining ? Please explain the criteria for a project to be
an endowment?
5. Permanent, continuous, people benefit from it,

Waqf cont

Waqf for sons only

A. When donor says, I make this endowment for my sons refer to sons only
B. Not to daughters
C. sons refer to male children
D. However if donor makes waqf for a tribe (banu) it includes males and females


Waqf to group
A. For a limited group of people members specified -> divide equally


B. Group but members not specified + not limited ->do not have to divide equally
C. Permissible to make waqf restricted to some of them -> accord to priority order
Conditions of waqf
A. It is binding - impermissible to cancel
B. Eternal contract
C. Becomes obligatory to fulfill once they are made
D. Cannot be sold nor transferred unless its benefits completely vanish
1. Endowed house collapses the profit cannot pay expenses
2. Endowed land -> becomes infertile its yield cannot afford reclamation
3. Endowed mosque -> damaged spend money to buy another mosque
E. If process are more than enough surplus given in charity keeping surplus decrease its

Gift and Donation


A. A gift refers to a donation of a specific amount of property given by a person legally
qualified to manage his own property.
B. The P (s) used to give and receive gifts
C. A recommended act of sunnah


E. This chain of hadeeth is weak according to ShAlalbani


A. Once gift is given cannot take it back
B. If gift is not yet given can take back as in the case of Abu Bakr and Aisha (r)
C. Allowed for creditor to give up debt as a gift to debtor
D. A parent must give gifts equally to all children
E. Invalid to make gift dependent on future condition
F. Prohibited to take back a gift

Except for parent

F. You and your property belongs to your father a son cannot claim debts from his
G. A gift should not be rejected

Module 21
Dealings between Muslims and Non-Muslims in Trade Transactions

Trade between Muslims and Non-Muslims is allowed

A. Proof from Quran:Surah Al-Imran Verse #75:
And among the people of the scripture is he who,if you entrust a great
amount [of wealth],he will return it to you,and among them is he who ,if you
entrust him with a [single] silver coin, he will not return it to you, unless you
are constantly standing over him[demanding it]That is because they say,
"There is no blame upon us concerning the unlearned." And they speak
untruth about Allah while they know [it].
B. Some People of the Book - can be very much entrusted and will be honest
and will honour us, whereas others will not be.
C. So from this we learn that it is something which is within the acceptable
range,or acceptable kinds of dealings which we are allowed to do with them.
D. Proof from sunnah: In a hadith narrated in SahihBukhari and Al-Nasai by
Ayesha that
The Prophet once bought some food from a Jew and he mortgaged his shield
with this man till he would pay him.
This is proof that the Prophet (s) died while still this shield was there as a
guarantee that he would pay.Now some people believe that it cannot
happen but it did happen,as it is authentically narrated in SahiBukhari .
E. Also in SahiBukhari,Abdul Rahman bin AbiBakr narrates that

One day we were with the prophet, a Mushrik passed by,and he got sheep
which he was taking. Rasool Allah bought a sheep from him.
F. This clearly shows that it is very much permissible in Islam to do business
with Non-Muslims
G. Proof from acts of the Sahaba,we have one incident of Abdul Rahman bin
He wrote to UmmayyaibnatKhalaf ,while migrating, you take care of my
wealth and family in Makkah and I will do the same for you in Madinah.
H. Proof from Ijma of the scholars ,that it is very much acceptable and allowed.
As even some scholars say that and we all agree to this, that when it comes
to the worldly matters of business, trade transactions, farming etc Nonbelievers are better than believers. After all they devote their whole heart
totally to their worldly gain, whereas a Muslim is not supposed to do that
much, although he is supposed to work hard but he knows that one day he
has to pass away from this world to the one in the hereafter, which is waiting
for us, regardless of whether we believe it or not, or whether we are a
believer or a non-believer, we all have to face the consequences ,be it
paradise or hell. Now we all want to go to paradise ,that is why though we
devote our time to this world .Allah(SWT) says and do not forget your share
of this world
In SurahAl- Takathur,
Competition in [worldly] increase diverts you.Until you visit the graveyards.
May Allah show us the true path and make it easy for us and make millions of these NonMuslims into Muslims. Amen
While we know that we are allowed to deal with Non-Muslims ,we know that we are supposed
to buy or sell through them but the regulation differ in certain ways .This is also the case
amongst Muslims ,i.e contracts, permission ,it has to be halal and coming from Quran and
Surah Maryam Verse#??
Jibrael said that and we angel descend not except by the order of your Lord. To him belongs
that before us and that behind us and what is in between. And never is your Lord forgetful.

So Allah (SAWT) never forgets anything.

Also we learn from this verse that Allah has made things halal and haram .
Abu Darda quotes from the prophet , Whatever Allah has made haram it is haram and
whatever he has made halal it is halal and
what Allah did not mention ,then indeed it is mercy for us, a leeway for us .So Allah has
allowed us to have such dealings.
Allah could have made trade with Non-Muslims haram, imagine if that were the case it
would have been so difficult .

1. KitabAl-Bioou

Al-Biyoou , pluralof Al Baiya

It means Exchange of wealth in cash or in means through a barter or modern transaction

Things haram to sell to Non-Believers

1. Al-Mushaf/The Quran
The scholars by consensus agree that it is haram to sell a Quran to Non-Muslims for fear
of them ridiculing it, belittling it, abusing it, or burning it.
Module 21 Video part a1

And we remember that recently they have been successful in burning the Quran, and creating
fitnah amongst the Muslims.
The Prophet has not allowed us to touch the Quran unless we are pure and clean, and we know
that the Non Believers are both physically and spiritually considered to be impure.
In a hadeeth from SahiBukhari and Muslim in which the Prophet (SAW)

Prohibited travelling with the Quran in the land of the enemy for fear that it may come in
the hands of the enemy and they may do things which is unacceptable in Islam
This hadeeth has been narrated in many other places like Bukhari& Muslim and Abu Dawood,
AL- Tabarranifilkabeer,IbnMajah, Muwatta etc.
It does not mean that we as Muslims are living in a non-Islamic country are not allowed to keep
the Quran , yes we are allowed ,the restriction is only for the place of war and if we fear as
such. Allah knows best
What If the sale of Quran does take place?

Jamhoor view is that This transaction is invalid.

Also some scholars view that transaction is valid in itself but are supposed to force the nonbeliever to sell the Quran back to Muslims.

Also here we are talking about the original full text of Arabic, but if it translated in some other
language without Arabic text in it, they may take it or read it .Allah knows best.

2. Selling weapons to Non-Muslims

We know that since the beginning of the world with the first killing of Abel by his
brother Cain, the fighting/killing has since then continued

The Quranic verse in which the angels said:

Oh Allah are you creating something who is going to shed blood, and we are enough to
worship and glorify you
Allah replied,I know what you dont
So we know that this fighting will continue amongst humans
That is why the scholars have consensus that we are not allowed to sell weapons to nonMuslims, Dimmee (non Muslim residing in an Islamic state), but if they are in their own land,
own country, we are not allowed to sell weapons to them.

3. Dealing with Non-Muslims in Riba

Some unauthentic fatwas going around which allow buying a house on Riba.
Another fatwah, it is ok for Muslims to deal with non-Muslims in riba.for.eg It is ok for a
Muslim living in non-Islamic state to mortgage a house based on Riba.

P (s) said Be careful you people present your case s to me, maybe some of you and are
better in presenting your cases ,I am only a human being if is pass a verdict in one of your
favours that does not belong to you, I am giving you a piece of hell fire.
Allah has made transactions (selling/buying) halal, and Allah has made Riba haram.
Also Rasool Allah (SAW) cursed one who eats usury, one who acts as an agent on the behalf
of those who deal in it , one who witnesses it and those who write it on their behalf ,each
one of them are cursed ,all of them are equal in it

Consensus of Scholars that Riba is haram.

Next Question:What about dealing in interest with those people who live in
Non-Islamic state?

Majority of Ummah scholars except a few, are not part of this ,that Riba is haram be it
little or more,

There is no difference in this case in an Islamic or a non Islamic state for the proof
from Quran and Sunnah ,it did not distinguish between these two ,so
whatever is haram in an Islamic state or in a non Islamic state, regardless of whether
this dealing is between two Muslims or between a Muslim or a Non-Muslim
This is the correct view of Imam Shafi, Malik, Ahmad, Awzai, AbuYusaf(student of Imam
Abu Hanifa) and Hanbal school of thought.

They have taken the stance from various references of Quran and hadith.
Dealing in interest is haram
To give up what remains of the interest
Hadeeth: Keep away from the seven major sins, One of them is Riba

Because all these references are general, irrespective of whether one is in an Islamic or a nonIslamic state.

View of those scholars who think it is OK to deal in Riba with Non Muslims

Imam Abu Hanifa, his student Muhammad , At Thawri, Alnakhri and some of the other
Hanabila scholars
There is no Riba between Muslims and people living in a non-Islamic state, esp. in the
time of war.
Scholars have differed, whether it every country, where there are Muslims or is it only in
the place of war

Their proof they take is from the following two hadith

1. There is no Riba between a Muslim and a Non-Muslim and a Non-Islamic state

Response: It is weak not sahih and not sound cannot be taken as a daleel
Even if we consider it for the sake of argument, it means that Riba is not allowed,
not that there is no Riba.
2. Hadith of Jabir ibnAbdullah ,The prophet said during farewell sermon, months before
he passed away
All the Riba of the days of ignorance are abolished and invalid, and no body is
allowed to deal with it. He mentioned his clan esp. His uncle Abbas bin Muttalib, who
used to deal with riba, I make all these contracts invalid. Then he ordered that You
take what originally belonged to you and what was charged as extra is not allowed to
be taken.
Abbas accepted Islam years before in Fathah Makkah. Scholars say that he went back to
Makkah and he was dealing with non Muslims in riba which means that it is something
which is allowed otherwise he would not have done it.

Response: No proof that Abbas was dealing with it.

Even if we agree that he did it, there might be great possibility that he was unaware of
the ruling, otherwise he would not have done it.

3. Moreover they state that a wealth of a Non-Muslim living in an non- Islamic state esp.
which is at war with Muslims is Mubah is allowed for Muslims to take.
Even the wealth of a Muslim in a Non Islamic state is mubah for Muslims to take.
(According to Imam Abu Hanifa)
It is the Consensus of Scholars,and it is obvious that it is all haram.We are not allowed to
take the wealth of a Muslim but in a rightful manner.
4. Also they state that Abu Bakr, he gambled with Mushrikeen that Romans will
overcome the Persians. Mentioned on the Quran in the years 3-9 .
This happened after the HIjrah and Abu Bakr dealt with them after that.
Abu Bakr did this before it became haram.
5. The daleel they use:
a. This hadith is weak not sound -> means not allowed to use as daleel
b. For the sake of argument if the hadith was sound, then it would mean no riba- La
c. IbnAbass - No proof that after he became Muslim was not dealing with it. Coz if he
knows, he would not be doing it
d. Abu Bakr it was not haram at that time
Response:-It was not haram at that time
It is ok to have halal business with Non -Muslims
Selling Quran to Non-Muslims is Haram(Arabic copy)
Selling weapons to Non-Muslims in an Islamic or Non_Islamic state is haram??
What is haram in an Islamic state is also haram in a Non-Islamic state like Riba,
Liquor, other haram products
Muslims are not allowed to deal in Riba with Muslims or Non-Muslims in a Non
Islamic state (DarulHarb)

Module 22 - Dealings with Non-Muslims



Are we allowed to interact with Non-Muslims or not?

A. We are responsible for ourselves, first and foremost.
B. Each one of us is as an individual a shepherd and is responsible for our own flock.
C. On the Day of Judgment, each one of us will be saying nafsiand nafsi.
D. Each one of us is responsible to get ourselves to Jannah.
E. if your belief and, deen is being jeopardized in the company of non-Muslims then
better to stay away from them.
F. But if we feel that by interacting more, we can actually bring them closer to
Islam, so then there is no harm in it.
Dealing with Animals

Ruling on Buying/Selling Dogs

1. The majority of the scholars are of the view that is HARAM to buy and sell
A. Keeping a Dog at home
1. A person who keeps a dog as a pet, everyday his reward equal to 2 Qiraat is
taken away.
2. One Qiraat is a very big amount so, we should avoid anything that results in
decreasing our rewards.
3. There are certain kinds of dogs which we are allowed to keep; (hunting,
guiding dog and a grazing dog) the restriction is only for pet dogs
B. View of Imam Hanifa& Malik
1. Hanafi View: Hanafi scholars are of the view that it is allowed in general to
buy and sell dogs.
2. Maliki View: Some of the Maliki scholars are of the view that one is allowed
to sell dogs to those people who want to eat it.
a. This is their opinion which has been clearly stated in the Book Bidatil
Mujtahid liIbnRushd Volume II page 126
b. So according to them it is permissible to have a flourishing business
involving buying or selling of dogs.
3. But, we know that this is not actually the case, as no such permission has
been granted to us in Islam. We shall learn this now.
C. Ahadeeth prohibiting Selling of Dogs
1. P(SAW) prohibited selling of dogs in various ahadeeth, such as the hadith
narrated in Bukhari in which AbiJuhaifa(R.A) said that the

Prophet (SAW) prohibited the price of the dog

meaning that one cannot sell a dog and make money out of it.
2. Also in another hadeeth narrated by Bukhari and Muslim, which states that
Prophet prohibited the price of the dog, and the money offered due to
Zina, and that made out of soothsaying ,i.e a person involved in sooth
saying and charging money for it,(can be practicing shirk depending on
what he is saying/conveying to people) and the money spent on it is also
3. Also in AbiDawood narrated by Abdullah ibn Abbas
The Prophet prohibited the price of the dog. So if a person comes and asks
you the price of the dog, then fill his hands in which he is asking for money
with DUST. [sahih]
D. Scholars View
1. Imam Nawawi states in Sharah Muslim,
That the price of the dog is the worst of the earnings that you can take and
it is HARAM and we should not deal in that at all
2. And this is the view of the majority of scholars.
3. Though Abu Hanifa said that
It is allowed to deal(buy/sell) in other dogs in which there is benefit ,like
guarding, hunting ,grazing dogs etc. and due to that if somebody harms your
dog or kills it ,then he has to bear the cost of that damage
4. The Jumhoor i.e. majority of the scholars are of the view that it is HARAM to
have any such dealing irrespective of the benefit, so there is no need to pay
any compensation in case of damage to the dog. And Allah knows best.
So from this we learn that Islam has given answers to every minor detail, even when it comes to
a dog.
Now from the above mentioned references from Bukhari, Muslim, AbiDawood, it is clear that
dealing in any kind of dogs is haram.
4. View of Other Scholars allowing Selling/Buying of Dogs other than PET

For e.g. Grazing dogs, hunting dogs, Guard dogs.

They have taken the hadith which is narrated in An-Nasai from Jabir Ibn Abdullah,
He (SAW) prohibited the price of the dog and the cat, except that those dogs which are used
for hunting.

Since this hunting dog also means a dog which is of benefit. On this basis, they have
concluded that guard and grazing dogs are also included. However,
The point of conflict here is that although the first part of the hadeeth is Sahih, later is weak
The second part Except the dog used for hunting, this part of hadeeth is weak, as
reported by scholars like Al-Nisai who state that it is Munkir, meaning it is totally
From this we conclude that since the above hadeeth has fallen apart so scholars who base
their view on the above mentioned hadeeth, their view cannot be accepted as well.

Module 22 Video part a2.

Issue: What about if a person really needs a dog for hunting, guarding, grazing?
He is in dire need of a dog, and he cannot get it unless he buys it .Now he has to buy it, as there
is no other option. Is he allowed to buy It.?The answer is yes, he can, if he cannot find a free
dog, he will not be sinful, and the person who is selling is sinful in this case.
It is similar to the case of Bribery, if a person has to bribe someone to get a work done which is
not possible otherwise, he will not be sinful, and rather the person who is asking for bribery is
Although it needs clarification but, it is the normal fatwa, and the correct one as well and Allah
knows best. Sheikh ul Islam IbnBaaz and Uthameen are also of the same view.

Ruling on Buying/Selling of Cats

Scholars have differed on this. A hadeeth narrated from Sahi Muslim and other places, narrated
by AbiZubair,
I asked Jabir about the price of the money attached to cats buying and selling. He said that
Prophet (SAW) prohibited and restricted that.
Jumhoor (majority of the scholars) are of the view that the prohibition here means Tanzih
(detestable) but most correct opinion is that it is also haram, because of the word Naha o
Zajra. Of course one can keep a cat as a pet, but buying and selling is not allowed. Here the
same applies as in applies in case of dogs.

However we know that cats are goods in catching mice, so if we really need a cat to catch mice
and not as a pet, for example a house which has many mice, and there is no other way one can
get a free cat, then it is allowed to buy one. So it is allowed to buy cats if you need them to
catch the mice. Although there are other ways to catch mice and rats, but sometimes it may
not be easy and Allah knows best.

Ruling on Selling /Buying Monkeys

IbnAbdur narrates that
I do not know of anyone who has allowed selling/buying of moneys,
Which means it is not allowed.
So we conclude that buying and selling:

Selling something to Non-Muslims which they use for the purpose of their

Pictures of Jesus Christ, VirginMary, and Statues

This is all haram and we should avoid dealing in such things at all costs. Also scholars are
of the view, that if we know that a non-Muslim is buying timber from us to be used for
making a cross, that too is haram and not permissible.
Some of the Hanafi scholars are of the view, that if someone even gives a water melon
to non-Muslims in one of their festivals to show respect to their festival, it becomes
Kufr, for e.g. exchanging gifts on Christmas. As far as a statue is concerned where we
break it into pieces, so the pieces can be used for something else, then it is permissible.

Possession of Non-Muslims properties while residing in a Non-Islamic State

What are we allowed to eat, take or use from Non-Muslims. Are we allowed to take and
use their wealth, just because they are non-Muslims and we can do whatever they can.
The strongest and Sahi opinion is that we are not allowed to consume anything
belonging to anyone regardless of their religion, unless legally granted to us.
Social welfare systems in western countries like USA, UK, and New Zealand etc. Where
each citizen qualifies for such support from Govt. provided we meet their conditions like
resident etc. and provided that we do not cheat them.

Sometimes companies issue client/customer cards, which at times also offer discounts to
holders of the card. We have the farmers card in New Zealand, for bedding, clothing etc.

Then we have the credit cards, in which we buy things on credit, without interest. Some of the
scholars of the view that it is not allowed, while some modern scholars believe that it is ok
because we are not dealing in interest, and simply benefiting from it. Based on this we conclude
that it is ok to deal with such cards, provided it does not deal in interest. But one should make
sure that we pay before it is overdue, otherwise we shall be legally bound to pay interest.
Module 22 Video part a3.

Converts to Islam
1. What about those people who have converted, have haram things with them like
intoxicants, bacon left in the deep freezer etc.
2. Or someone who just became Muslim today, and yesterday he bought bacon worth $500 or
more. Or someone who was involved in such a haram business of bacon meat. or shop of
wine etc.
3. Is he allowed to get rid of these things by selling them ,since they were with him when he
was not a Muslim,
4. Or she /he are not allowed to dispose it immediately
Hadeeth in this regard is as follows in Sahi Muslim
A man came to the Prophet(SAW) and gave him m a full pack of intoxicant. The
Prophet(SAW)replied, Dont you know that it is haram. He replied No I did not know that.
There was a smart Sahabi present there and with the intention of giving benefit to his
brother, he whispered something in his ear. Prophet asked him what have you said in his
ear? He replied that I have told him to sell it, since we cannot drink it, why dont we sell it
to those who can drink it.At this the Prophet replied that
The one who has prohibited drinking it, has also prohibited selling it.
So the lid of the bottle was opened and the intoxicant was thrown out of it meaning it was
discarded. Basically it means that they were not allowed to use it, or sell it in any way.
Also the hadith narrated in Bukhari by Ayesha
The Prophet (SAW) prohibited any form of trade and transactions in intoxicants.
Also another hadith in Bukhari and Muslim
Verily, Allah has made it illegal to sell liquor, intoxicants, and dead flesh and the kinzeer
(swine flesh)and also Al-Isnam (statues)

Now the question arises that what about when a person becomes a Muslim, he has a barrel of
liquor; statues, dead flesh etc.? Of course none is legally allowed out of this. He cannot sell
bacon, nor sell statues unless broken into pieces for to be used otherwise. Liquor cannot be
used unless converted into some other form
What about wealth acquired through haram means that involves interest, earned through
dealing in liquor?

History of Sahaba we do not find give us a single daleel/proof that, when the Sahaba converted
to Islam, the prophet hired a neutral auditor for checking of their accounts, to check their
money sources. whether it came from halal or haram means. That is why it is an established
fact that Islam forgives us for whatever we did before converting to this deenso anything in
our hands which was there before conversion to Islam ( in the case of business transactions
only).,will be ours.
But anything in waiting, which one has not taken yet but the deal was done before converting
to Islam, one cannot keep it. We see from example of the prophet (SAW), that when he
announced Riba to be haram, he made it very clear that all those present dealings which
various people had with his uncle Abbas involving Riba were abolished. Meaning that after
announcement of Riba to be haram, no one was allowed to have any Riba dealing .
1. Selling/Buying of Animals(dogs, cats, monkeys).all haram
2. Possession of Property of Non-Muslims in their land. Not allowed unless granted
3. Use of Credit Cards/other client cardsallowed as long as Riba free
4. New Converts to Islam issues (issue of disposal of liquor, bacon etc.dispose all. Not
allowed to use
5. New Muslims wealth that was created out of Riba..History of prophet, where Sahaba
after being converted, did the prophet find the sources of their wealth, no neutral
auditor to estimate their source of wealth. Never took place. So Islam has no issues
with wealth already achieved through Riba will belong to that person, but any present
dealings will be cancelled.

Module 23 - Dealing with Non-Muslims


Al-Ijarah (Renting) Services

A. Hiring Services of a Non-Muslim by a Muslim for a Particular Job

a. Renting Definition - Give something to somebody, person

takes it and benefit from it and return it back for a price
We need to rent things on a daily basis. Can we have a rent a car
business in some Un-Islamic country from Non-Muslims?
Ruling: You may hire a Non-Muslim for any services you may need
We know from the Seerah of the prophet, during his migration, he was
accompanied by Abu Bakr, they instead of going straight went through
Taif and on the way they hid in cave Thor, they hired the services of
Abdullah Ibn Uraiqat (a Mushrik), yet he was a very good professional so
was hired for the job to get them to Madinah with more safety by the
permission of Allah (SWT).
B. Scholars differ whether Abdullah ibnUraiqat became a Muslim or not
C. The prophet (s) took advantage of the means available to him for his
safe arrival in Madinah.
D. A Jew boy used to be a servant to the Prophet in Madinah, although
there were so many Sahaba around him, who were more than willing
to do anything for him. (Hadeeth in Bukhari)
E. When he got sick, prophet went to him and invited him to Islam, The
boy asked his father, who told him Obey the command Abu
Qasim(Nick name of Rasool Allah)So he gave the boy shahada.
F. This all shows that it is permissible in Islam to hire a Non-Muslim for
any particular job by a Muslim

Hiring Services of a Muslim by a Non-Muslim for a Particular Job

A. Scholars have differed here.
The Quran says
The most beloved to Allah the one who has the most high status in
the eyes of Allah is the one who is the most pious

So naturally, the status which a Muslim enjoys cannot be earned by a

Non-Muslim, irrespective of his wealth. We know from the examples of
Pharaoh, Qaura (Qaroon) etc. they were all rich and what happened to
The respect given by Allah is based on spiritual devotion to Allah. That is
why the scholars have differed that he who is so near to Allah should
not give his services to someone who displeases Allah.
B. Hadeeth by Imam Ahmad in Musnad
Ali(R.a) rented himself out to a Jew to feed water in his palm tree
gardens for a payment in dates (ibn Hajr says its chain is good)
That is why the scholars have agreed that it is allowed
However they have differed in the details.
C. The following Jobs are Allowed
1. White collar jobs
2. Respectable jobs
3. Jobs of dignity
That does not mean that a Muslim is not allowed to do a less paid job or
that they are haram unless it is haram, because even a white collar job
can be haram. It only means that Muslims should not belittle themselves
by committing such contracts like sweeping floor, cleaning toilets,
garbage disposal etc.
So respectable professions like Engineering, medical, nursing are
Many of our brothers and sisters residing Non-Islamic countries are
bound to do some low level jobs due to certain circumstances, so if they
do not do it, they will be jobless that is why we do not term these jobs
haram but it is preferable not to do go for these jobs.
Also Quran states

There is this status of elevation, the respect reserved for Allah, His
messenger and the believers
That is why the scholars have their reservations over Muslims working
for Non-Muslims in jobs that are not of noble nature.


Is it Allowed for a Believer to hire himself to a Non-Muslim in Haram

A. For.eg Involved in a building contract for building a church
B. Carrying intoxicants from one place to another\
C. Selling/delivering dead flesh or Khinzeer(bacon)
D. Dealing interest on their behalf, working in a bank , working as a loan
E. Jamhoor View - Haram
Other Scholars View that it is allowed, although very weak.
Imam Malik was asked Is it Ok for a Muslim, hired by a Non-Muslim to
carry intoxicant on his behalf.
He stated that this type of contract is invalid and he is not even allowed
to get any compensation (wages) for that. Also this is a narration from
Imam Ahmad.
Ibnul Qasim in AlMudawwana ,if a shepherd takes care of pigs, whatever
they have agreed upon, is to be taken from the owner and given in
sadaqah, the person is not be received any cent from it, in addition he
may also be punished .
Imam Ahmad was asked: Is it Ok for a Muslim to make a grave for the
He said NO
And the same applies to churches.

Extra Discussion: A Fatwah from a a Mufti in Egypt ,who said that it is ok for a
Muslim to give donation to Christians to build their church.
Not an academic fatwah, but a political fatwah, died recently, he was the same
Imam, who went to a girls school and forced a girl wearing niqab to take it off,
arguing that it just cultural nothing to do with Islam. Anybody with the minimum
understanding of the deen, can tell that Niqab is there in Quran and Sunnah. It is
not explicitly mentioned in the Quran , but we have hadeeth in which Asmabint
Abu Bakr she narrates that
When during Hajj, we used to put our niqab on our faces , while we were during
hajj, as soon as men would come.
So from this we conclude that Niqab was not only for the wives of the prophet (as
some people believe)but it is also incumbent upon every Muslim woman.
Module 23 Video part a 3
So not every Fatwah needs to be blindly followed until it has been analyzed
So we are not allowed to hire/give our services/skills in whichever way possible
to a Muslim /Non-Muslim where haram is committed. That men as that we are
not allowed to work in conventional banks. We have the hadith of Jabir in which
Also Rasool Allah (SAW) cursed one who eats usury, one who acts as an agent on the behalf
of those who deal in it , one who witnesses it ,and those who write it on their behalf ,each
one of them is cursed ,all of them are the same
Least of the sins of Riba is like getting married to ones own mother
Who among us wants to be married to ones mother?

View of Imam Abu Hanifa

Majority of Scholars agree this .However Imam Abu Hanifa, believes that it is allowed for a
Muslim to carry intoxicants, dead flesh and other haram stuff for a Non-Muslim. We know that
this opinion is not right, because based on this ruling of Imam Abu Hanifas, then we are also
allowed to work in conventional banks, or make churches, which is not the case. Anyone who

has some self respect, self-dignity will never for himself dream of contributing towards
promotion and revival of their wrong practices of Non-Muslims and displeasing Allah at the
same time.
From this example we learn a very important lesson which is that ,
Each and every one, you take from them and leave that what is wrong, apart from
RasoolAllah.(SAW) because he used to say everything by Wahi (revelation),and if anything
about which he did not know, he would wait till it came to be known through Allah, and if he
made a mistake in his judgment, it would be corrected by Allah (SAW).That is why Imam Abu
Hanifa said
If a hadith is Sahih, that is my Madhab Imam Abu Hanifa
So those people who call themselves Hanafi, either they are Hanafi in the true sense ,because
they are following exactly what the Imam said which is that they follow the above mentioned
hadeeth, and verify the hadeeth ,if it is Sahi ,they believe it ,if not they do not take it.
Or they are the ones who claim to be Hanafis which infact they are not. Reason being its very
rare to find such persons, who are so strict in following one imam and that all imams are Sahi.
For when it comes to the issue of buying house on interest, one cannot find any person claiming
to be a Hanafi, while at the same time dealing with interest, or involved in making churches etc.
Also one will never come across a Hanafi ,who has got property worth Millions of dollars
overseas, in a Non-Islamic country, when the Muslims they go and capture the land, based on
Imam Abu Hanifas verdict ,he is supposed to give all of it to the Muslims, basically he will get
nothing from that property. Will any one claiming to be a Hanafi be willing to do that? This is
the time when they will try to find the true ruling through Quran and Sunnah., rather than
believing blindly in the Imam. This means that even the ones claiming to be true hanafis are
only following him in what suits them. This is the wisdom of following pure Quran and the
Sunnah,rather than following one single Imam based on ones background culture.
Also Allah (SWT) has said that
Do not help each other in transgression and sins
So one should keep away from Riba, building Churches etc.
However the scholars are of the view that ,if one is forced to work somewhere due to the
circumstances ,for e.g if one is working in a restaurant which serves both haram and halal
stuff, and one cannot even find a reasonable low paid job even after trying hard

Then one should only deal with it up to the extent that you need keep away from serving
haram stuff, liquor, khinzeer etc. and try to do more things which are more halal even in that
environment, till one finds a better job.
This was the fatwah of the FiqhCouncil whose head office based in Saudia Arabia.
So a Muslim can get hired by non-Muslims for offering his services/skills as long as it is not
haram, and it is not harming the Muslims, and no humiliation and shame is involved part of
the job.
Also no weapons use, where Muslims in Non-Islamic countries armies go and fight against
Module 23 Video Part b


Renting out Properties to Non-Believers for Haram Use

For example houses, offices, farm etc .where sins will be committed, for e.g a
farm where they will grow Marijuana or make a liquor factory there on the farm,
or a church, dancing hall etc Etc etc.
All this is Haram!
View of Imam Abu Hanifa
We have statements from Imam Abu Hanifa and. his statements that it is allowed,
but majority of the scholars believe that it is haram.


Renting a Property to a Non-Believer for Living/Residence

What if we rent out to a Non-Believer, where they live and do all sorts of haram
stuff, listen to music, drink wine, worship of other Gods etc.
This case is different. Since, the house was simply rented out to live. Anything
extra which the tenant does and is part and parcel of, we are not responsible for
whatever haram he does. We have not given the property for building a temple,
liquor factory. For we also know that even if we rent out those properties to a
Muslims, they might not be practicing Muslims and may indulge in similar haram


Hiring a Non-Muslim to teach the Muslim Children

Naturally we know that in an Islamic country, it is better to hire a Muslim, as they

are more suitable .but when we are in a Non-Islamic state, what will be the
Majority of the scholars say that it is Ok, provided there is no other option
available, and also the parents follow find out if everything is taught properly OK.
Because there is still the danger of leaving the children in their hands, they might
be teaching the children haram stuff.
As the saying goes that
Prevention of corruption is given the priority than any other benefit gained
The benefit here is that the children will learn, while the corruption is that the
children might be taught haram stuff, shirk, their morality and dignity may be
negatively affected.
Public school have to deal with music lessons, Easter, Christmas, Halloween
Corruption may take away the fate of our children, and we may suffer it
throughout our lives. So it is better to send our children to Islamic schools. It is
not haram but better to have Muslim teachers.
Proof that its ok for non Muslim to teach Muslim kids
After the Battle of Badr, the prisoners of war were given ten Muslim children to
teach how learn and write in order to be freed

Hiring a Non-Muslim for Writing the Quran

Even today in the age of computers, all the Quran we have today, the original is
always written, before it is copied and printed. It is re-checked by various
scholars, word by word, dot by dot, letter by letter before it is approved.
Jamhoor View: - Not allowed, due to the nature of their physical and spiritual
impurity, they are not supposed to handle this noble job, and this is the authentic

There are other scholars who think it is allowed, but not authentic
However, when it comes to using modern facilities like computer, printing etc.
then it is ok to hire their services.

Al-Ijarah (Renting) Services

Hiring Services of a Non-Muslim by a Muslim for a particular Job-Allowed
Hiring Services of a Muslim by a Non-Muslim for a Particular Job-Allowed
Is it Allowed for a Believer to hire himself to a Non-Muslim in Haram
things?-Not allowed
Renting out Properties to Non-Muslims for haram use like liquor factories,
dancing halls etc. Not Allowed
Renting Out Property to Non-Muslims for normal living-Allowed
Hiring a Non-Muslim to teach the Muslim Children Allowed. ,but Muslim
teachers/schools are preferable
Hiring a Non-Muslim for Writing the QuranNot Allowed

1. Are you allowed to run a hotel where it is possible that sins may be
committed haram movies, zina?
Module 24
1. Is it OK for Muslims to hire Non-Muslims to make a Masjid for them?
We know that it is one of the righteous acts through which we get near to Allah.
Verse of Surah Tauba: The ones who really stand up to maintain a masjid, are the ones who believe in
Allah and hereafter.
So from this verse we see that basically, it is the duty of the Muslims and an honour to be received by a
Muslim. Due to which the scholars have differed on this issue.
Hanafi, Maliki, Hanbali View: - Not allowed for a Kafir to come and make a Masjid by himself
Proof: Based on Quranic verse

It is not permissible for a Mushrik to come and maintain the houses of Allah
AL-Jassas said that from that it is clear that for a non-believer, they are not allowed to enter the houses
of Allah, and to take the responsibility of running it and do the day to day administration or anything
similar to that.
View of Some of the Hanbali scholars: As far as previous verse is concerned, it is that they used to take
dignity from that action of cleaning and taking care of the mosque (Masjid Haram) and thus trying to
gain respect for themselves.
Some scholars say that the ban is only for Masjid Haram
It looks like it is best not to get their services, but if it is difficult to find one(for e.g in an aUn-Islamic
state, Muslim professionals are hard to find),then its ok. Allah knows best.

2. Al-Jaalah: Job Wages

It is a certain amount of incentive in the form of wages to be given in return for a righteous deed.
3. Al-Wakala: Commissioning
One gives responsibility of something to someone, and commissions a person to take responsibility of
something and then there is a contract between the two parties on a certain amount of acceptable
ScholarsView : Have agreed that it is allowed for a Non-Muslim to commission a Non-Muslim to do
something on his behalf, and vice versa.
What are those things in which a Muslim can be commissioned for?
They are basically all those things which we have taken so far

AL-Hawala-Transference of debts
AL-Mudaraba-Speculative partnerships
Al-Juala-Job Wages
AL-Musaqah-Special contract of taking care of agricultural land(watering,irrigation)
Ijarah-Renting ,

Qard in loan departments and not in Un-Islamic way

Many Others

What are those things in which a Non-Muslim can be commissioned?

Divorce: Scholars have differed that he is not allowed to go one behalf of a Muslim to go to his
wife and divorce on his behalf, not even allowed for a Muslim. But he cannot even deliver the
message considering the nobility of the act (religious). Scholars have differed, so its best not to
commission him for that.
Kafalah-Surety.-Scholars have agreed that it is allowed, provided that the loan taken is through
halal means. Allowed for Muslims and non-Muslims.
Pre-emption-If your partner, neighbor, he wants to sell a property, then the other partner has
the first right to buy it for you. But what about two partners, one of them is Non-Muslim,
scholars have differed. Some say no, majority say yes it is allowed, which is the better view. Also
if a Muslim has to receive the royalty of pre-emption, where you practice the right of buying the
house of your partner as the first person, it is allowed. The prophet did not differentiate this
right between a Muslim and non-Muslim and said that it is ok for any form of
o Hanbila scholars view: that it is not allowed to practice pre-emption with non-Muslim
o Proof:-There is no right for pre-emption for a non-Muslim, narrated by DarulQutni but
o Qiyas:-also not applicable and contradict Sahih hadeeth
o Pre-emption only applies where there is going to be a direct form of harm if a person
sells without informing his partner, neighbor, but if there is no harm then he can be just
like any other client and customer.

Module 25 Video part a 2

4. Can we take Loan from Non-Muslims ??(Halal Means:No interest)
Hukm:-Yes we can.
1. Hadith narrated in Sahih Bukhari and other places
When Jabir IbnAbdullah, his father died in the battle of Uhud, he owed a huge amount of loan,
and Jabir was struggling to pay back - It was about 30Wasq
1 Wasq-60 Saa
1Saa-4 armfuls equal to 2-3 kg
So 3 kg*ply by 60 -180 kg

180*30= 5,400 kg ,so huge amount of dates, which he owed to a Jew businessman, So he went
to the prophet, and he made a special dua ,the baraka was given, and the loan was paid ,and
still some dates were left. So we see that taking loan from Jews was and is allowed.
2. When the Prophet died, he had given his shield as mortgage to a Jew, to buy food for his
But if taking loans from makes you getting under your influence, makes you more friendly to
them, and you cannot defend your deen ,if they say bad about Islam, then its better to stay
away from such practice.
5. Can we entrust them?
Hukm: Yes we can
Proof:-Surah Al-Imran :Verse 75

And among the people of the scripture is he who, if you entrust a great amount [of
wealth], he will return it to you, and among them is he who, if you entrust him with a
[single] silver coin, he will not return it to you, unless you are constantly standing over
him[demanding it]That is because they say, "There is no blame upon us concerning
the unlearned." And they speak untruth about Allah while they know [it].
So it is permissible.
We also see that Abu Talib used to defend his nephew, our beloved prophet, and so in this way, the
prophet entrusted him.
6. What about if you want to borrow something from Non-Muslims?

Social form of support: Lending and Borrowing where no instant reward is there, just a help to ones
neighbour, employee, colleague
Scholars say it is ok, provided that thing is halal.

7. What about the wealth of Muslims who reside in Non-Islamic States?

Esp. in the case when Muslims invade the territory, what will happen to the land owned by Muslims
residing there.

When Muslims are at war with a Non-Muslim state, and they win the war, and conquer the land.
They find other Muslims residing there.
Majority of the scholars believe the property of Muslims is protected and safe by Allah, so not to be
considered as booty of war, nobody has the right to take it, be it non-Muslim or non-Muslims
View of Imam Malik,Shafi, Ahmad ibnHanbal and their students also Muhamamd and Tahawi
students of Abu Hanifa ->Muslims property cannot be booty of war
I have been ordered to go and fight for the sake of Allah to spread the deen and defend the
honour and dignity u of Islam till people say : there is not deity worthy of worship except Allah,
and once a person says that then his wealth and he himself all are protected and safe. Nobody
can touch it and take it, but only to its due right such as blood for blood etc. The reckoning of that
person is now taken by Allah and Allah knows what is to be done by Him
More Proof:
The incident of BanuQuraiza
Saalaba and Usaid were from this tribe, and they accepted Islam after the prophet had surrounded
the tribe, and their wealth was not taken from them.
Story of Khalid IbnWalid
Once he was sent by Prophet to Bani Juzaima. He invited them to Islam. They accepted Islam but
due to the difference in dialect, they did not know which word to use
Should have said
Aslamna: We have become Muslims
Sabaayna:-We are out of one deen and entered your deen.

So he ended up killing few of the tribe. As he thought that they were out of the deen of Islam.
When the prophet was told about this, he sought refuge for Khalid from Allah. Then he sent Ali to
give them their blood money and pay their money back, since they were Muslims and they were in a
Non-Islamic state. Narrated by SahiBukhari
If people they accept in the Un-Islamic state, then whatever wealth belongs to them, will be
their s and will not be taken from them.
This was the practice of Umar during his Khilafa.
Imam Abu Hanifas View :-Whatever ,if you enter a non-Islamic state in war, and you find Muslims
there, whatever wealth which is not permanent, such as cash, jewellery, gold etc will belong to the

Muslim, but permanent wealth, like property, house, business, farm, etc will belong to the Islamic
Very unfortunate that it is the view of Imam Abu Hanifa, as he says that the person is protected for
his personal self only, so the permission granted by Islam is only for himself and not for his property
which is not part of his body.
So a person who claims to be a Hanafi loses all his wealth apart from cash, but we know that its not
an authentic view
Maliki view: All property of Muslims in an Un-Islamic state even cash, is booty of war for Muslims
based on the hadeeth
If the polytheists give a piece of land to a Muslim, it will not belong to him
Proof from AbuHanifa & Malik:-weak and based on their intellect not from Quran and Sunnah.
Also as per Abu Hanifa,
There is no more migration for a Muslim, and it has been abrogated
i.e a Muslim is not allowed to migrate from non-Islamic to an Islamic country, in addition if a state is
at war with Islamic state the Muslims lose all their wealth. If their country is invaded by Muslims,
also this view is leading a person to think that Jihad is only meant to collect booty.
At the same time the Muslims if they request support, it become Wajib for Muslims elsewhere to
help them.
Such as this verse of Surah Anfal Verse 72
Module 24 Video part b

Indeed, those who have believed and emigrated and fought with their wealth and lives in
the cause of Allah and those who gave shelter and aided - they are allies of one another. But
those who believed and did not emigrate - for you there is no guardianship of them until they
emigrate. And if they seek help of you for the religion, then you must help, except against a
people between yourselves and whom is a treaty. And Allah is Seeing of what you do.
So basically according to view of Abu Hanifa and Maliki, the person inviting the Muslims to
Jihad, he is according to his view inviting them to take away his wealth, but we know that he
is not inviting the Muslims to destruct him, but rather construct that country. So we see that
how when we follow the Imams blindly, how it contradicts the verse of Allah. So this is the wrong
view. So blind following is wrong. People might call themselves Hanafi , Shafi, Malki,etc. while
performing prayers acts but when it comes to such a problem which relates to their wealth being

taken away, they will never follow Imam Abu Hanifa here, as nobody wants to be deprived of his life
2 things from Abu Haneefas view:
1. It is wrong
2. Blind following can lead you to contradict the Quran (loose his wealth)

Is it OK for Muslims to hire Non-Muslims to make a Masjid for them?

o It looks like it is best not to get their services, but if it is difficult to find one(for e.g in an
a Un-Islamic state, Muslim professionals are hard to find),then its ok. Allah knows best.
Al-Jaalah:Job Wages:Allowed
Can we entrust them? Yes we can
What about if you want to borrow something from Non-Muslims r borrow them something?
Aallowed provided if it is halal
What about the wealth of Muslims who reside in Non-Islamic States?: Not allowed to take

Module 25
Module 25 Video part a
Whenever we use the word Insurance, our mind naturally goes towards conventional insurance
practiced all over the world. In Islam, they have come to another term for insurance, which
applies more to the Islamic logical terms which is Al-Takaful .
Islamic Insurance:Al-Takaful
This subject was never taught in BAIS courses before; as scholars were of the view that
conventional insurance cannot be Islamic. So here, we want to discuss how to have an Islamic
Insurance. Is there a substitute for conventional insurance? That is what we will study IA.
Historically: Islamic concept of Takaful was introduced about 30 years ago. Started in Malaysia,
in 1984, but must have been developed years before. So the concept is fairly new. However, it
did not bring anything new. The concept was already there in the Quran and Sunnah, it is just a
matter of how to understand it and make it happen, and they did an excellent job, those who
initiated it.
Definition: Takaful-means to help and support each other, and to give a joint guarantee and
support for others.

Proof from Quran and Sunnah

Supporting each other, helping each other was there in the Pre-Islamic days as well, so the
concept is more than 1400 years old. Like blood money, we know that in the pre-Islamic days
whenever one tribe hurt the other tribe, the whole tribe would compensate on behalf of that
individual for damages done, and this is exactly what Takaful is.
Module 25 Video Part b 1
The essence of insurance is a special support in the time of need and duress, such as the Arab
custom of blood money. Based on that the Muslim Jurists conclude that , it is not in conflict with
the Shariah.
It existed before Islam in the form of blood money, and also in the example of Khalid Ibn
Waleed(the word of Allah) the story of Bani Juzaima(mentioned in Module 24)
Evidence of this in the days of the Prophet - Incidence with Khalid bin Waleed
Once he was sent by Prophet to BaniJuzaima. He invited them to Islam. They accepted Islam
but due to the difference in dialect, they did not know which word to use. Should have said
Aslamna: We have become Muslims
Sabaayna:-We are out of one deen and entered your deen. (Meaning we have become
Normally it means to go from one religion to another religion meaning they did not want to
become Muslims, but here in this case due to the difference in dialect, they meant that they
had gone from another religion into Islam. So he ended up killing few men of the tribe. As
he thought that they were out of the deen of Islam. When the prophet was told about this, he
sought refuge for Khalid from Allah. Then he sent Ali to give them their blood money and
pay their money back, since they were Muslims and they were in a Non-Islamic state.
Narrated by Sahih Bukhari
Muslim Jurists have acknowledged that the basis of shared responsibility in the system
of Al-Aqila (paying back of blood money) as practiced by Muslims in the era of Makkah and
Madinah by the Muhajiroon and Ansaar is all for us to see and is very much valid in Islam,
and the prophet agreed to that. In the view of the above as well as the real need of insurance
covered in many issues, we all agree as per the Quranic verse
The one who fears Allah (SWT) the way he should, Allah will provide for him at the
time he needs, and provide sustenance to him
The one who puts his affairs in the hands of Allah, then that is enough
So we all believe in these things, and these verses do not contradict with Islamic Insurance.

In Kuwait they call Islamic insurance AlTaawun

Benefits:-Muslim Jurists have concluded that it has to be based on the principles of


On this basis, the Islamic system of insurance embodies the elements of shared responsibility,
joint indemnity, common interest, solidarity etc.
Unlike conventional insurance where indemnity and profits are not shared, causes of disaster
are not shared. You pay and you receive nothing.
As per the Jurists, concepts of Insurance are acceptable in Islam. Have common interests, equal
grounds etc
Rules and Regulations

Policy Holders will cooperate among themselves and share common goals
Every policy holder will pay his subscription to assist those who need it. It falls under the
donation contract which is intended to divide losses and spread liability according to the
community pooling system.
The element of uncertainty will be eliminated, so far as the subscription and
compensation is concerned. It does not aim at deriving advantage at the cost of other
It is not like conventional insurance system, where a person who may be paying in a
smart way and then goes to insurance and gets millions of dollars whereas others get
Examples:-Natural Disasters, earth quakes in Christ Church New Zealand with
losses amounting to billions of dollars and insurance companies were the first ones
to close their doors to help out - this is not ok in an Islamic system
Differences between Takaful and conventional Insurance:
In Arabic it means joint guarantee or a pact amongst some members, where more than
one person jointly guarantees against loss or damage that afflicts against any of us
as defined in the pact.
Should a certain member suffer any disaster; he will receive a certain sum of money
/financial benefit to help him make for the loss. It is exactly like conventional insurance,
once you lodge a complaint you will receive some form of assistance ,after being verified
through the system , and all formalities and legalities, whether it is a honest claim or not.

It is almost similar to Islamic Takaaful system, depending on the company; in Malaysia

there are more than one companies. After it is approved, and depending on the type of
scheme in which you were a member, you shall be paid.
The basic purpose of Takaful is to pay for a defined loss from a defined fund, each
member of the group pours effort to support the needy.
But as an insurance system, we have to confine to the operation of takaful within the
private sector. In insurance, we go and pay the money to the insurance company who
consider that money as part of their profit.
In case of life insurance, it is all considered as their profit for e.g $300,000 (which they
receive in due time) and they write it as part of their asset.
Whereas in Islamic system, the only amount which is received in cash is considered as
asset for that takaful company

If you are facing the crisis, the conventional insurance Co. will pay you, but you are no
partner, just a client, they will invest it anywhere halal or haram as their interest is to
make money from money.
But is Islam , the wakeel/agent who is taking money from you will ensure that everything
is done the Islamic way; under the board of the scholars of Shariah.
Module 25 Video part b 2

Thus we know that the transactional aspect of the Takaful must be Islamic in order to
ensure its compliance with the Shariah. So after joining the takaful company, the money
we have paid is invested somewhere through Mudarabah.
The Mudharabah model (profit-sharing)
According to this principle the al-Mudharib (Takaful operator) accepts payment of the Takaful
installments or Takaful contributions (premiums, known as ra's-ul-mal) from investors or
providers of capital or funds (Takaful participants), acting as sahib-ul-mal. The contract specifies
how the profits (or surplus) from the operations of the Takaful is to be shared in accordance with
the principle of al-mudharabah between the participants (as providers of capital) and the
takaful operator. The sharing of such profit may be in a ratio of 50:50, 60:40, 70:30 and so forth,
as mutually agreed between the contracting parties.
When you join you become a partner in the company.

In order to eliminate the element of uncertainty in the Takaful contract, the concept of tabarru
("to donate, contribute, or give away") is incorporated. Relating to this concept, a participant
agrees to relinquish (as tabarru) a certain proportion of his Takaful installments (or
contributions) that he agrees or undertakes to pay, should any of his fellow participants suffer a
defined loss. This agreement enables him to fulfill his obligation of mutual help and joint
In essence, tabarru enables participants to perform their deeds in assisting fellow participants
who might suffer a loss or damage due to a catastrophe or disaster. The sharing of profit (or
surplus) that may emerge from the operations of a Takaful is made only after the obligation of
assisting the fellow participants has been fulfilled. It is imperative, therefore, for a Takaful
operator to maintain adequate assets of the defined funds under its care, whilst striving prudently
to ensure the funds are sufficiently protected against over-exposure. Therefore, the provision of
insurance coverage in conformity with Shariah is based on the Islamic principles of al-Takaful
and al-Mudharabah.
My notes
Join the company and invest your money in it. The investor gets some money and then the profit
comes back to the original account to be shared.
Two accounts
Participant account and participant special accounts

Part of the money is donation and part invested

Part of money considered at tabarruh donation this is incorporated into the account.
In conventional insurance you pay and may never benefit from it unless you get in an accident
In Islam part of money go towards the payment and part invested
The invested part will gain profit and this will come back to you if you have not claimed
If you claimed then you may or may not get back benefit from the invested. (there are different
When enter the system enter with the concept of donation and to help each other
When concept of contribution in it the issue of ambiguity is eliminated.
Conventional insurance one pays and other benefits. One benefit and the other looses.

Two accounts
Participant Account(PA)
Participant Special Account (PSA)

Part of the money which we give is considered as Tabarruh(donation) and part of the
money is invested
In order to eliminate the element of uncertainty in the Takaful contract known as ambiguity or
Gharar, the concept of Tabarruh/Donation/give away/ is incorporated in it ,because in the

insurance company you give money and you never had a car accident etc. ,no money will be
paid back to you for your car in this case, here the ambiguity is that one suffers because one has
been continuing paying money and one does not benefit from the money at all.
Whereas a person who pays $50,000 to insure his car and somehow he managed to get it stolen,
he would claim and get the amount and get out of the system. Or he may make a genuine claim,
and the $50,000 as the car premium, maybe he pays in 20-30 year, which he may never do.
But Islamic system is different. Here we pay the premium for car. Part of that goes in Tabarruh
which will be used to pay any indemnity claims, and part of it is invested. Whatever is invested,
one will get a return from it end of the year, or whichever way the company operates. Once your
scheme expires after any limited time that one has allocated, the profit plus original money will
come back to you, even if one has not claimed.
If one has claimed, it varies from scheme to scheme. In some schemes, for those who have
claimed or not claimed everybody will receive the same, in some those who have claimed will
not receive anything and those who have not will get it, or those who have not claimed will
receive full and those who have claimed, that will be deducted from their amount ,and the
surplus will be paid, or in some other cases the surplus will be used to build a Masjid or some
part of the surplus will be used (2-3 %).So there are many kinds of schemes one can choose
Whereas in conventional insurance this is not the case.
So this is the difference. So in Tabarruh system, even if you do not claim ,and another person
claims ,and you only receive your part when the term expires ,and the other person may receive
more from the Tabarru, the donations which one is giving , on the concept of donation, solidarity
amongst the group.
Concept of donation eliminates the issue of ambiguity/alghairaat in order for Takaful to work,
where one benefits and the other loses ,or one pays and the other benefits ,or one keeps on
paying and the other keeps on claiming .
Now from where do we get this concept?
What one has given as Tabarruh and Investment can one take it back?
1. Hadith Proof:-The word Al-Nahar, Imam Bukhari has used this term as a chapter, the
sahabas whenever they used to travel, for jihad, dawa etc. they would gather and pool in
all their food and put it in one basket and control from one place there.
Module 25 Video part b 3

Now one Sahabi could be skinny and have less appetite, other may eat more, but everybody
used to eat from the same place. At the end of the journey, the leftovers used to be taken and
divided equally among those who were part of the Nahr or re-used again for another journey.
Scholars say it is exactly or almost like a Takaful. Some may have used less or some more,
but everybody contributed.
In the concept of Takaful, everybody contributes in the scheme in which one is
,many schemes many types ,and end of the day ,i.e at the end of the scheme, people
will be using the surplus on yearly basis or after the scheme finishes ,while others will
be claiming because of indemnity, so some get more and some less.

2. Another Proof: Hadiya:Gift

How can you give Hadiya and take it back
See the topic of giving gifts, we have already studied
Abu Bakr had given certain portion of dates from his farm, to his daughter Ayesha .When he was
about to die, he told her, that he wished that she had claimed it, but since she had not claimed the
gift, he is going to take it back, and it shall be divided after his death among all his children as
per the Islamic law among his heirs. So it was a Tabarruh he had given her, so he took it back.
So from this it is clear, that after Tabarruh,it can be taken back, if it has not been claimed. So
whatever has been in the PA and PSA, and unclaimed can be taken back. So the acceptance of
this is based on this .Islamic insurance on all these proofs of hadith, blood money and examples
of sahaba.
So in relation to this,the participants shall agree to relinquish as Taburrah certain proportion of
his Takaful installment/contributions ,that he agrees or undertakes to pay, thus enabling him to
fulfill his obligation of mutual help and guarantee should any of his fellow participants suffer a
loss. All the conditions will be written in the document before signing of the contract.
The essence of Tabarruh enables the participants to perform their deeds sincerely, assisting
fellow participants who might suffer a loss or damage to due to some catastrophe. After all the
main purpose of the Takaful is to be there with the person at the time of need /catastrophe strike.
The sharing of profit/surplus, is made only after the obligations to the fellow participants
has been fulfilled .It is imperative for the Takaful operator to maintain adequate assets of the
defined funds under its care , while he is continuously striving to ensure that funds are
sufficiently protected against undue over exposure.
Also in essence therefore, we know that the provision of insurance cover as a form of business in
conformity with Shariah is based on the Islamic principles of Al-Takaful and AL-Mudarabah.

So we simply have to deposit money like in a bank, and forget about it and we can trust them
that it will be taken care of. Also like in a business ,where we go an invest and rest is taken care
of. It works exactly like that.
Types of Takaful Businesses

Family Takaful Business

General Takaful Business
Also Takaful can be on something particular /small/big/expensive/domestic/commercial
stuff for business

Family Takaful Business

It is designed to save the requirements of both individual and corporate sector.

Long term saving and investment program.
Apart from the chance of enjoying the investment profit, it also provides mutual financial
assistance among its participants
Enable an individual to participate in the Takaful business ,with the following objectives
To save regularly for a fixed period , with the view of creating a kind of
retirement ./ long term contingency fund.(So you are not only supporting a
fellow brother /sister ,but above all ,you are supporting yourself.)
To invest with the view of any profit in a way acceptable to Shariah
,which in turn will lead to further savings.(You can easily go and invest in
a company in a Mudarabah /Musharika basis as a business man and make
millions out of that, but the other way is the Takaful, where you might not
be making as much money as the former case ,but the mental satisfaction
achieved out of the help /guarantee given to each and every member ,the
feeling one gets is something amazing.
To avail of cover in the form of mutual financial aid from payment of
Takaful benefit ,should a participant die before maturity of his Takaful
plan, meaning if a person dies before maturity of his Takaful plan, his
family will still be paid from whatever is due to him.

Module 25 Video part c

Any individual , depending on the countries ,places and the company, age
limitation before and after is all left to the companies to decide as per
their contracts.

Supplementary contract based in Islamic principle of Hiba , gift , kind of

endowment ,scholarship plan for higher plan of children of participants
Additional sub-contracts can be added to a family Takaful plan to provide
mutual benefits covering a wide range of tragedies.
For participation in various plans, they are required to pay their
installments regularly, weekly, monthly, yearly etc.
Each Takaful payment made by the participants and credited into the
family Takaful account fund and divided and Credited into two separate
accounts , the participants account (PA)and PSA (Participant Special
Person Dying before Maturity

PA Account: The total amount of the Takaful instalments paid by the

deceased participant from the date of inception of his Takaful plan to the
due date of payment of the instalment prior to his death, and his share of
the profit from the investment of instalments which have been credited to
his PA. So if a person dies, before his scheme matures, whatever amount
he has paid, say for example the plan matures in 30 years and he dies in 20
years, so whatever instalments he has given in that period, plus the profit
is still there for him, will be given to his family.
If person is alive while scheme matures

PSA Account:-The outstanding Takaful instalments which would have

been paid by the deceased participant, should he survive the period of the
plan, calculated from the date of debt to the date of maturity of the plan. If
a participant should leave until the date of maturity of his plan, the
benefits will be paid according to the following manner.
The total amount of Takaful instalments from his PA account, paid by
him during his tenure of participation and share of his profits will be
credited into his PA.
From his PSA, the net surplus allocated to the participant as shown
from the last evaluation of the PSA will be granted to him.

Takaful Payout when someone dies before maturity

he will receive whatever he has paid prior to his death from participant's account, and also his share of
profits from the investments which have been credited to the participant's account. From His special account
any outstanding takaful installments which would have been paid by the deceased participant should he
survive would be calculated from the date of death to the date of maturity of his takaful plan and also be

Invest 100,000
in takaaful

Dies at 50,
pd 60,000

Receive a total
of 100,000 +

Will pay ur family60,000 +



Will pay ur family40,000

(outstanding takaful invest)


If a Participant is Compelled to Surrender /Cancel His Participation before Maturity Date

of Family Takaful Plan

He shall be entitled to receive the surrender benefits.

The surrender benefits shall be the amount of balance shown in his PA
The proportion of his Takaful instalments which have been credited to his PSA as
Tabarruh, shall not be refunded to him
In addition there is this facility for the participant to part withdrawal his PA, gradually or
whatever way if needed.

Maturity of Takaful Plans

10, 30, 40 years etc.


Principles (Taken from Wikipedia)

The principles of takaful are as follows:

Policyholders cooperate among themselves for their common good.

Every policyholder pays his subscription to help those who need assistance.

Losses are divided and liabilities spread according to the community pooling system.
Uncertainty is eliminated concerning subscription and compensation.
It does not derive advantage at the cost of others.

Theoretically, takaful is perceived as cooperative or mutual insurance, where members

contribute a certain sum of money to a common pool. The purpose of this system is not profits,
but to uphold the principle of "bear ye one another's burden". Commercial insurance is strictly
disallowed for Muslims (as agreed upon by most contemporary scholars) because it contains the
following elements:

Al-Gharar (uncertainty)
Al-Maisir (gambling)
Riba (usury)

There are three models (and several variations) of how Takaful can be implemented:

Mudharabah model (profit-sharing)

Wakala model
A combination of both

Participants' Account

An account to credit a portion of contributions from the

participant for the purpose of investment/savings

Participants' Special Account

An account to credit a portion of contributions from the

participant for the purpose of tabarru

References :-

1. Video Lectures of Dr. Anwar

2. Wikipedia.com
3. http://www.takaful-malaysia.com

Module 26
Module 26 Video part a
Conventional Insurance Vs. Islamic Insurance/Takaful
1. Al-Gharar (uncertainty/ambiguity)
The takaful system has no ambiguity, whereas in conventional insurance.one person may pay
more and get nothing in return as benefit, whereas the other person may pay less and get more.

2. Al-Maisir (gambling)/Al-Kimaar(as mentioned by the teacher)

One is unsure how much one will benefit from it,whereas in Takaful ,no aspect of gambling is
3. Riba (usury)
The money in Takaful system,the money is given as Mudarabah(special Islamic system of
transaction),and as Tabarruh, so Riba,noGharar and no Kimaar init.
Commercial Insurance is Haram
Proof from Hadith:Reported by Abu Huraira
The Prophet(s)has prohibited any trade /transaction where there is gharar/ambiguity.
Example: Blighted fruits, which if get damaged due to natural disasters, the farmer if he already
has taken the money for his produce, and the harvester was not able to take it, then the farmer
has to give the money back to him. As per the hadith of the prophet
How can you take the money of your brother by ambiguity?
So it is a reminder for us that Islam considers the interest of both sides/parties. When there are
natural damages, somebody has to face the consequences; everybody cannot be always in the
winning situation. Islamically, we know that who should be on the winning /losing side.
4. Compensation Vs. Tawun
Conventional insurance is based on compensation, where Islamic insurance is based on
helping/Tawaun, supporting each other. (At taawun wa tabarun)
5. Ijma of Modern Day Scholars
Islamic Jurisprudence Council has verified it. They might differ in some minor details, but have
unanimously agreed on the system on the whole.
6. Company in Takaful acts as an Agent
In conventional insurances, the companies own the money we deposit; they become the legal
owner of our money, whereas in takaful system, whatever we pay and deposit in the PA/PSA
account is not owned by the company, because they act like an agent, not the owner. So in
Takaful, the money belongs to the participants.
7. Difference in Installments paid/un-paid

The conventional insurance companies become the legal owner of the installments whether paid
or still to be paid. i.e they enter that amount as their assets. Because they insure us on a certain
amount of money, so even if that amount is unpaid, it belongs to that company.
Whereas the company /agent in Takful system, owns nothing .Whatever amount is deposited, it
is the asset of the participant. On the other hand, in the conventional insurance co. one has
deposited a certain amount in a conventional insurance co. as life insurance ,which we know is
haram, and if one does not want to carry on with it, one cannot get the same back.
In Takaful, the participants get the profit of the money invested, whereas in conventional system,
the company invests somewhere else halal or haram and makes millions of money out of it. But
when a natural disaster occurs, where one needs these insurance companies to help what they
have promised, they are not be found. They are quick to take and slow to give.
8. Difference in Concept
Takafuls objective is to support the community, cooperation
Commercial Insurance: Goal is to make profits
9. The Participant and Insurer are one in takaful
Both the participant and the insurer in the Takaful system are the same persons, because he is
one who is participating as well as insuring it, as well as benefiting from it.
In the commercial system, one participates, and the company does not belong to the participant
even by one percent.
10. Takful System abides by the law of Islam/Shariah
Whereas the commercial insurance does not, they do not care about the deen, have their
own rules, and the system they incorporate is a mixture of both halal and haram.
Module 26 Video part b
Based on Cooperation, Donation
Far away from ambiguity, gambling, usury
Participant is part owner of the assets
there, and profits are returned to you, and
you gain from it and never loses,
regardless of whether one claims or not

Commercial Insurance
Based on Profiting
All these three are found
If one does not qualify to claim anytime,
one does not benefit at all. They take the
money and invest in all kinds of
haram/halal business, and nothing belongs
to the participant, except what one claims

Module 26 Video part c1?;/

Trading in Different Currencies

Shariah Ruling: Permissible, provided it is in compliance with the Islamic
ShariahLaw. Certain regulations which we have to follow, such as both parties must take
possession of the counter values before dispersing. Such possession either actual or
Actual:-If we are taking Riyals, we should take the dollars there and then.
Constructive:-Sometimes,we give in cash ,and receive in another place/country through
account in other currency.
The counter values of the same currency must be in equal amount, even if one is
in paper form and the other in coin form.
Sheikh Uthaymeens view, that paper currency is different from that of
silver/gold coin, whereas others view is that they are same.
The contract should not contain any conditional option.
The dealing in currency should not aim towards establishing a monopoly
position ,but only for the sake of the transaction ,and benefit of people
Shall not be carried out on the forward future markets but to be dealt as per the
days position
It is prohibited to enter into forward currency contracts. This rule applies whether
such contracts are affected through the exchange of differences, or not at the time
of transfer of debts.
It is prohibited to deal in forward currency markets, even if the purpose is
hedging to avoiding a loss of profit of a particular transaction.
It is permissible for the institution to hedge against future devaluation of the
currency, if it is followed in the following way
To execute back to back interest free loans using different
currencies without giving or receiving any extra benefit.
Where the exposure is in respect of an account payable to sale
goods on credit or Murabahah in the currency of the exposure.
Earthquake in Japan, March 2011:-Yen went up,(unlike going down),with the speculation that
the Japanese Govt. will encourage the local businessmen to take their money from overseas back
into Japan and control the market.
Possession of the Sale of Currencies

Has to be hand to hand ,just like exchange of gold, silver

Gold is to be paid for gold ,silver for silver ,wheat for wheat, barley for barley,
dates for dates, salt for salt ,but equal to equal ,like to like, and hand to hand.
Furthermore he said that
If these classes differ, then sell as you wish, if payment is made hand to hand.
Related by Abu Dawood and Muslim (See pg 41 of text)
If Riyal to Riyal-Like to Like and Equal to Equal
But if Riyal to Dollar:-Hand to Hand on whatever the rate of the day is. But has to
be received there and then

In Case of Same Currency

On this basis it has been a condition, that exchange of currencies of the same kind, that equality
in the amount as well as taking possession of the two counter values before the two contracting
parties depart the place of the closing of the contract. If it is not same currency, then it differs
Shariah Ruling:-A flourishing business, majority of scholars have allowed it
Constructive Possession: - (AlQabtHukmi)
When we deposit $1000 in a bank and the family gets in Rupees in some other country, e.g
Western Union.
Agencies:- Permissible ,to employ an agent to deal on ones behalf. The same rules apply.
Exchange of currencies is very important issue

We need different currencies for travelling abroad,Hajj etc.

Different countries have currencies which fluctuate due to certain reasons.
Call for one Islamic currency was given some 20-30 years back
We know that if the system one global currency all over the world, the crisis that erupts
due to the fluctuations in currency will end.
People benefitting from this currency business, taking other people money ..probably in
Unislamic way are not letting this happen ..
In wider perspective, the amount of benefit by having one currency is more than the
amount of benefit by not having one currency.

Module26 Video Part c2

Substitute for Money:Credit Cards

Debit Cards
Charge Cards

Credit Cards
Ruling on each one of them

Debit Cards
1. The simple cards that one receives from the bank where you deposit your cash, through
your business, wages, investment.
2. Another new system, a debit card which works like a credit card.
3. The card is issued to a customer having available funds in his account, from where one
can use the funds existing in our account.
4. The card does not expire with the depletion of funds, rather it expires after a certain
expiry date, mentioned on the card. PIN number or signing etc.
5. It can be used on any ATM machine.
6. The cards also confers on his holder the right to withdraw cash ,and also make payment
with a certain limit for the day provided one has that much money in the account.
7. Debit to customer account is immediate
8. No credit is provided to the customer.
9. However in some cases some credit is provided.
10. No charges for using this card.
11. However there can be sometimes charges, in case of using an ATM machine of other
banks, usually flat rate fee, but not in every bank, some may charge ,some may not, but
may do if one loses the card before the expiry date.
12. Also in case of a shared account, both parties may receive a separate card.
13. So in the debit card, one only uses what one has in the account.
14. Also the system may differ in some places.
15. Some banks may allow cash withdrawal only upto $800 but allow transactions through
card pay upto $2000 and some vice versa.

Charge Card
1. Provides a credit facility upto a certain time /upto a certain amount of credit.with the
options of re-payment.
2. Used for paying for goods and services.
3. The user has the option of payment, withdraw cash.
4. Does not provide revolving credit facility.
5. The card holder is obliged to make payments for the purchased goods, or services, by the
end of the prescribed period, following receipt of the statement by the institution issuing
the card.

6. So one is allowed to buy on credit, but when the statement is issued, one has to pay the
whole amount before the expiry date. (main difference between charge card and credit
7. This is where it differs from the credit card.
8. Credit card, one is allowed to defer payment, with late payment on interest.
9. Charge card holder is provided with credit facility but upto the due date, for the particular
10. If the card holder delays payment of the amount due, beyond the period of free credit, an
interest charge is imposed on the card holder, but none is imposed by the institution.
11. The institution does not agree with you that you will pay late, but there will be a charge
imposed, with penalties more than a credit card implies.
12. The institution issuing the card, does not charge the holder any commission for
purchases, but charges the place/party where one bought the goods from.
13. So the Institution issuing the card, bank in this case will pay the party accepting the card
14. So if A gives the card to B and B is purchasing goods from C using the card, A will pay
C, but then B will come back and pay back to A.
15. The institution issuing the card has a personal and direct right against the card holder tobe
re-imbursed for any payments made on ones behalf and retrieve it back.

Module 26 Video Part c 3

Credit Card
1. Provides a revolving credit facility within the credit period and limit determined by the
issuer of the card, also a means of payment.
2. The holder of the credit card is able to pay for purchase of goods, services and withdraw
cash within the approved credit limit.
3. When purchasing goods /services the card holder is given a free credit period, during
which the amount due is paid with no interest charges.
4. Allowed to defer payment with a certain amount of interest charged. When cash is
withdrawn, there is no free credit period. Meaning that if one withdraws cash then it has
to be from the cash already put in the credit card.???
5. But other companies give this service where one may withdraw cash and not be charged
for that free period.
Islamic View
Debit Card:-Permissible for Institutions to issue, as long as the card holder does not exceed the
balance limit and no interest is involved.
Charge Card:- Permissible for Institutions to issue on the following conditions

The card holder is not obliged to pay interest in the case of delayed payment.

If the institution obliges the card holder to deposit a sum of money as a guarantee, and
card holder is not allowed to use it, then it must be specified that the institution invests
the money on ones behalf, on the basis of Mudarabah and one gets the profit /loss from it
and shares with the institution.
The institution must stipulate that the card holder may not use the card for purposes
prohibited in Shariah, and the institution may cancel the card in such a case.

Credit Card:Normally scholars have this view that it is not allowed to provide a credit card That provided
interest bearing revolving credit facility whereby the card holder pays interest to allow to pay out
the debts in installment. We have Visa cards, charge cards. Normally it is viewed that charge
cards offer more benefit conventionally than credit cards. But sometimes we need to buy
something, it is not possible, fore,g buying online, getting hotel reservations etc.
Some places only accept credit cards. Rental cars at times only accept credit cards as a
In Saudia Arabia, they have Islamic Cards, but not everybody has access to such a facility
.Majority of the scholars totally reject the use of credit cards.
Dr.AnwarsView: Due to the requirements of today, if one has the real need and no other
substitute is available, as one also has to sign the agreement that if one is unable to pay ,one will
have to pay interest, knowing that one will never ever deal in interest, meaning one is being
forced to sign the deal just to get the card as a facility. In such a case it is OK.
Scholars View:-Credit cards result in overspending. So one ends up in paying interest. But
this is not a reason to call it haram .The card can be used in both ways halal and haram and Allah
knows best.

Module 27 Video part a

General Provisions of credit, charge and debit cards
Affiliation of the Issuing institution to membership of the International card
/regulatory org. is it ok or not? Because we find signs of regulatory org. at
back of the cards. For e.g Cirius, Maestro etc. meaning these are the
providers of this particular card
Islamically it is permissible for institutions to join memberships of
International Card Regulatory Org. provided that the institutions avoid any
infringements of Shariah that may be prescribed by those org.

It is also permissible for the institutions to pay membership fees /service

charges etc .to these org. as long as these do not include interest payments
even in an indirect way, even in the form of increase in service charges to
cater for the granted credit.
It is very obvious that this system cannot work without it ,so it is ok to have
membership of one or two such org. but not to get any interest.
Commission to the Card Issuer Payable by Merchants Accepting the Card:
Whenever we use a card(debit, charge, credit) in a shop, there is a certain
amount of fee charged most likely on these transactions. Is it Ok?
Ruling:-It is permissible for the issuing card institution to charge a
commission to the party accepting the card at a percentage of the
purchased price of the item/services purchased using the card. So it is not
only a fee but also a commission upto a percentage of the purchase.
Fee Charged by the Institution to the Card Holder: It is permissible for the
institution issuing the card to charge a membership fee/renewal
fee/replacement fee to the card holder.
Purchase of Gold /Silver/Other Currencies Using Credit Card: Permissible
to purchase all these using debit and charge card(what about credit
card?),in case where the issuing institution is able to settle the amount due
to the party accepting the card without any delay.
Cash Withdrawals Using Card: It is permissible for the card holder to
withdraw any amount of cash which is allowed as per the agreement
between the holder and the card company, which one will pay back later. It
is also permissible for the card issuing institution to charge a flat service fee
for cash withdrawal, and it should be for the service and not on the amount
of cash taken, like it should not be like interest, $1 for each $100
withdrawal, $2 for $200 and so on. It is haram. It should be a flat rate.
Privileges Granted by Card Issuing Parties: Not permitted for card issuing
authorities to give any such privileges to card holders which are prohibited
in Shariah for e.g free life insurance (conventional) in exchange for getting
a card from that institution. Also offers such as entrance to prohibited
places, things, beer, wine etc, entrance to haram places like brothels etc.
This is all haram. It is permissible to grant privileges that are not haram, like

special discounts air tickets, /car rentals, etc. In some chain hotels all over
the world, if you become a member, you get discounts on becoming their
valued member.
Module 27 Video part b1
Modern Issues of Islamic Jurisprudence by Dr.Wahab Al-Zuhaili

He has mentioned some of these new conditions in sale and purchase

agreements. There are 8 conditions which are known .The reason that
these conditions are new, because many were not known before, but were
introduced with the new technology now people use in modern business. It
will fall in three categories, either condition is void and sale is valid, sale
agreement is void but condition is valid, sale is ok and so is the condition
Eight conditions in Sale and Purchase Agreements:


Shart Adam Munaafasa

A. Condition between a seller and a buyer,
B. The seller setting the condition that:
1. After buying from him, buyer will be in any kind of competition with
the seller for that particular item bought,
2. Should not do the same business in the same locality ,city et
3. Otherwise the seller will lose a lot of money and the buyer agrees.
C. Is this type of business is allowed or not?
1. Allah has made sale /purchase transactions halal and any form of
Riba as haram
2. In Islam, when we buy something, it belongs to you in totality,
3. We are allowed to do anything with it with total freedom within
the limits of the Shariah.
D. Proof: The Prophet(SAW) said that: Leave the people alone, and let
each one of them benefit and sustain and get their provisions
through others
1. Meaning, when you buy/sell something, somebody benefits
from it including the seller and the buyer.
2. One will not buy anything which is going to harm oneself, like
intoxicants, cigarettes. Because it does no good but harm.

E. Based on this, once you sell something, you have got no right to
compel the buyer to act in certain way or have any reservations related
to the material bought.
F. The Ruling:
1. Majority of scholars have agreed that this type of transaction is not
2. The Shart(condition) is Fasiq , Unacceptable. Majority of scholars
apart from Hanbila have this view.
3. If he still wants to buy he has to re-condition it,
4. But Hanabila view is that condition is void but transaction is
acceptable, so he may carry on with the contract but condition is
unacceptable. As per the hadith, You should not harm yourself,
neither should you cause harm to others
5. So from this we see that applying this hadith in this form of
transaction, we find that this is exactly what is happening here.
6. A person ,if he buys something ,he buys it to benefit himself, but now
when he owns it and he cannot even use it the way he wants, then
whats the use of that thing for him??
Summary: So based on these ahadeeth, this kind of transaction is void, invalid,as
well as the condition is void, as per the view of majority of the scholars. Based on
the Hanabila view, the condition is void only, but the transaction is very much
valid. So we see that in both the views, the condition is void.


Deferred Payment in Instalments of Property

A. Condition:-Property will stand in the name of the seller till the full
payment is made.
B. Based on the transaction, which takes place when you buy something
and do not pay fully. O you who have believed, when you contract a
debt for a specified term, write it down. And let a scribe write [it]
between you in justice [2:282]
C. This type of transaction is allowed.

D. Proof: Hadeeth- two from Sahi Muslim and one from SahiBukhari
1. Ayesha (R.A) reported that the prophet(SAW)when he died, his shield
was mortgaged to a Jew businessman as a guarantee against 30 Sai
of dates, in one Riwayah, which shows that he bought the food but
did not pay him at that time.
2. Narrated by Ayesha in Bukhari andMuslim, that the prophet(SAW)
bought food from a Jew against deferred/delayed payment(Nasiyah)
and he had a shield from iron which he gave as a guarantee, till he
would come and pay and then take his shield away.(See the previous
lectures of FiqhMuamlaat)So this is acceptable in Islam.
E. The condition here is that the seller may state that unless the full
payment is made, the property (car for e.g ) is still under the ownership
of the seller.
F. Scholars here state that this type of transaction is not allowed, as per
Islamic transaction, if one buys something, one is the legal owner of
that, and may do anything with it.
G. So either one may take the whole property by paying fully, otherwise
such type of agreement between the buyer and seller is invalid.
H. So both the transaction and the condition is invalid.
Summary: If a condition is set that unless the buyer pays the full amount, the
seller will still be the owner of the property, the transaction as well the sale is
invalid (Batil).In spite of this, there are some Islamic countries where it is allowed,
as in the law of UAE. But we know that Islamically it is not the case. Allah knows

Experience when one Buys something and one has to try it - Buying
something on a trial basis
A. Condition:-Buyer has the option of returning, exchanging or fix the
problem of the item after a trial period.
B. Example: brand new cars, TV, etc. even 2nd hand items given 3 mth
C. Ruling:-Acceptable in Islam as sometimes, not even the owner knows
that some item has a defect.


Training to use the Facility that one has bought ,which the seller has to
provide the training
A. Condition:-The buyer asks for training to use a particular item,
machinery etc. Normally the manufacturer sometimes, provides
installation, sets up a manual and provides necessary training for the
buyer, sets up the machinery.
B. Ruling:-Allowed
C. Problem:-If the buyer asks for additional things, like asks the
manufacture to not only set up the machinery, but also provide training
to its employees/workers etc ,In this case it becomes a contract within a
contract .which is not allowed.
D. Hadeeth that the prophet(s) prohibited two sales in one contracts .So
one needs to have two contracts here, one for buying machine and
other for training. Since these machines are expensive, one needs to
have a proper written contract.


Any gain in extra profits, when the first buyer sells to another buyer ,the
profit is to be given to the first seller
A. For e.g if a seller sells an item for $12,000 and then gives this condition
that if the buyer further sells it for say much higher profit for $25,000,
the original seller, will get some chunk of that profit.
B. Ruling: This is totally haram. Not acceptable at all,
C. There is an element of Riba in it since the original seller will become
richer and richer in this case, while the middle man, the first buyer may
get little profit.
Opposite of Previous Condition
A. Here the first buyer sets a condition, that if he does not get a good profit
he will return the item to the seller.
B. Ruling: Totally unacceptable. Why should the seller bear the
responsibility if the buyer is incurring a loss?


When you order someone to make something for you

A. First case:-He gives a quotation for the buyer. While doing the job, one
finds that cost of material goes down, the labour cost decreases, so one
gain more profit here.
B. Condition: Buyer states that, since the seller, person quoting, made
huge profit due to prices going down, and the seller has saved a lot than
expected, the seller should return that amount.
C. Ruling: It is not allowed. One has to agree to the cost from the beginning
and stick to it.
Opposite Case to Previous
A. When a contract is given to the manufacturer lets say to make an
airplane, and for some reason he is unable to build it on time and the
manufacturer demands extra cost now, this is not allowed.
B. Partnerships are allowed between them. But in case of seller and buyer
one price has to be agreed upon from the beginning.


The buyer is not allowed to re-sell an item or gift it without the sellers
A. Condition:-Not acceptable. Some scholars say it is unacceptable as
well as the sale but some say that sale is ok but not the condition


Seller makes this condition that You can buy what I am selling. The
amount I am charging is this much, but every time the profit goes up I will
charge you more , if the profit is less it and also when you lose, I have
nothing to do with it
A. One way traffic here as well, once the buyer has bought somethings it is
his, the seller has no right,
B. Ruling: It is not allowed.
The prophet said: Dealings of the Muslims are based on the
conditions which they make, but if there is a condition which makes
something haram into halal or something halal into haram, it is not

C. Case where certain condition is allowed:

1. Proof: Jabir ibn Abdillah sold a camel to the prophet (SAW) and they
were on the way, and he set the condition that, he wanted to ride it
back to Madinah. After that he will give it back to the prophet
2. Same case when you buy a car from someone and the seller asks to
use the car till he reaches his home. It is OK.
Help me to understand how profits from hotels can be use to maintain the masjid when there
are haram things going on in hotels (inappropriate movie channels, etc)
Answer: tv can be used for good or bad. Your intention is for good. If used inappropriately, does not
affect your income.

Module 28
Module 28 Video part a1

Multiple Q/A Session Regarding Transactions/Insurance/Working in Banks etc.

These questions have been forwarded to scholars and Al-LajnaAlDaima,council responsible for
answering questions that people ask .It is based in SaudiaArabia.Sh. IbnBaz(May Allah have Rahmah on
him) was once the head of it.
Main Question

What is the hukm in the issues where there is difference of opinion?

Option 1:-Should we take the view which looks most likely to be correct, where the daleel looks
to be more eminent?
Option2:-Should we do what is most easy to follow and easy to do?
Answer:-If there is a daleel Shariah(from Quran /Sunnah)where it gives us the choice to either
do the hard stuff or easy stuff.
Example of Fasting/Not Fasting while travelling:-Hadeeth of the prophet
It is not the act of righteousness to fast while you are travelling
Yet the prophet fasted while travelling, while at other times, he broke his fast while travelling,
which shows that it is acceptable.

On the basis of this, we see ,that the scholars have differed ,whether it is ok to break fast while
travelling ,or if one does fast ,whether it is acceptable or not. So here we are given a choice of
breaking fast while in the month of Ramadan while travelling. So it is better to take which is
easy in such cases, if given a choice.
This has been narrated of the prophet (SAW)
Whenever he was given a choice between one issue to be done in two ways, he would always
choose the easy one, unless there was disobedience of Allah in choosing that easy one. If it was,
he would be the most furthest away from that particular action,
From this it is obvious, that if you are given a choice, then you opt for what is easy. But if it a
matter of finding which daleel is most right ,or , the scholars have differed ,then if you have that
much of knowledge through which you can read the views of the scholars in a particular issue
and you find that it is ok ,then it is fine, if not then, you go and ask the scholars.
Allah says in the Quran
Go and ask people who are knowledgeable people (scholars), and they are going to
provide you with information, if you are among those who do not know
Then you should try to follow the scholars and if you still have doubts, choose the safest option,
instead of going for the easy one .Allah knows best
So this is the basis on which we start this Q/A session
Some old Nasiyah from Sh. IbnBaaz in his life time
He may have said this fatwah in the early part of his life, years back, lived in Saudia Arabia.
Unfortunately there is a lot advertisement in the local papers in Saudia Arabia.If this is
the situation of Saudia Arabia years back,then what would it may be now,if this is the
situation is Makkah /Madinah, what will it be like in other places away from Makkah and
Madinah.,if this is the situation where the flag itself carries LaIlahaIllAllahthen what
about the places where the flags have statues. If this is the situation where the majority
population is Muslims, then what about the places where Muslims are in minority.
Further he says
People are invited and cheated, to take part in interest dealing, loans from banks, become
partners, and invest in such banks which are haram.
Allah has warning for all this
Be careful, those who disobey the commands of Allah, that maybe trial and afflictions will
come or some severe punishments.

From this it is obvious not to take part in those kinds of banks or to promote in any way, which is
dealing in interest. It is all haram, and we should keep away from it. It is among the major sins,
and it angers Allah and RasoolUllah.
In the Quran
Oh Prophets eat from the food what is good and do righteousness, Indeed I am aware of
what you are doing
Also the prophet said narrated in Muslim
He mentions a man who is in travelling ,since its not easy to be way from ones family ,so
not easy totally dependent at the mercy of Allah .You have unkempt hair ,in the company
of strangers, and calling Allah, but your food, drinks, clothes are haram ,you are being
sustained with haram means ,then
How will your duwa be accepted?
We know most of us may have indulged in haram transactions, investments, in some part of our
lives, we should do Tauba.
Sheikh ibnBaz kept on giving advice .mentioning hadeeth as follows
Keep way from seven killers
Amongst one is Riba and other is eating wealth of orphans
Another narrated by Jabir ibn Abdullah
Allah curses the one, who eats usury, those who give, those who write it down and those
who bear the witness to it, they are all equal in the sin
So many hadith that the Shiekh quoted about Riba, and encouraged us to do Halal and to keep
away from things that are haram
Many un-Islamic fatawas from people who justify the interest, and make it look like halal. Make
them look attractive. So we should be very careful and should be educated to know what is halal
and what is haram.
Module 28 Video part a2
Q1.I work in Ahle Bank (Saudia Arabia) which deals in interest. I was forced to work in
the bank for 8 months as I could not find any other job. Although I was working there, it
was not a loan department, so no dealing in interest, but mostly current account side. Some
people say that my wages are haram and to work in that bank is haram, where as others

say that my wages are halal, since I am working to earn that wage, but working in the bank
is haram
Answer:-Sheikh and the Al-LajnaAlDaima council have the view that it is haram to work in any bank
that deals with interest. Because it is a place dealing with interest and you are working there, and
supporting it.
And do not support each other in activities which lead towards haram and acts of sinfulness.
Regardless of whatever you work over thee, be it just like a typist, clerk, bearing the witnesses or,
writing of accounts, or whatever all of them are haram, and you should not work there and get out of
that kind of work.
Q2.I have a son who owes 100,000 Saudi Riyals because of the marriage which he had, and he had to
spent some of that money in a car which he is using, and he entered in the bank as an employee
where he is getting certain amount of money as wages, and he needs that wages to pay off his loan
,and he could not get any other job
Answer:-You are not allowed to work in any conventional bank dealing with interest. Leave it
immediately and Allah will bless you with better opportunities.
Q3.I have got many places which are suitable to be hired by banks, commercial places etc. I have been
approached by Bank-AlWatni (National bank) for hiring my building. Is it allowed?
Answer:-Not allowed, since the bank is dealing in interest and it is haram to support them.
Q4.I used to have certain amount of shares in a company, way back 25 years ago that company got
bankrupt. After that I invested in Riyadh bank. Each share for 1000 Riyals and now each share is for
30,000 riyals. I need my money. Am I allowed to take my share, while the truth is that I was unaware
that the Co. invested the money in the bank?
Answer:-Take all that you will get from your share. The original amount plus the profit. Take the original
for yourself, while spend the profit obtained through haram means, in the way of Allah and do Tauba,
and InshaAllah Allah will help you and support you
And whoever fears Allah and put his affairs in His hands, Allah opens doors for him, and Allah is going
to sustain him from ways which he never may have thought.
Q5.Me and my brother disputed on something because of certain amount of shares being offered in
the market. I was of the view that it is haram, but my brother said that it is ok. Is it allowed to invest
in haram places? Also am I allowed to give him my name so he can use my name to invest in such
Answer:-Not allowed, neither to invest nor to give your name for investing in haram places.

Q6. I was working in a bank dealing in interest for six seven months. Some of my friends told me that I
am not allowed to work in a bank. Now I changed my job and joined Saudi Airlines. What about the
wages that I have earned during those months at work? Halal or haram to keep them? Do I have to do
sadqa of that money?
Answer:-You have changed the job, and now you are doing a job which is halal, and whatever you took
as wages is Ok, enough for you is to do Tauba.
Q7.I have got shares in Al-Jazeera bank(Middle East Bank). I have received profit ,which I usually spent
on my family ,whenever I received it . Now I want to sell my shares. One of the employees there has
told me that I can sell all the shares , and each share will be for 900 Riyals. But I have my doubts
whether it is allowed or not?
Answer:-Sell all your shares to the bank and take whatever they offer, then take for yourself the
amount which you invested originally ,and spend the rest in the path of Allah and do Tauba.
So we see that the questions may be different but the answers are more or less the same. which is to do
Module 28 Video part a3
Q8. Is it allowed for me to be an investor in some other companies, where they deal in shares.
Answer:-Those companies which do not deal in interest, then you are allowed to invest, but those who
deal in interest, then you are not allowed. But in case you are doubtful, where your money is being
invested, then it is better and safe to stay away from it. The Prophet said
Keep away from what you have doubts and incline to those which you do not have doubts in
Example:-In New Zealand, we find most of the companies, where its very difficult to determine whether
they are investing in halal areas or not. Kiwi Saver schemes, where each person who takes part in it, the
Govt. supports it. Part of the investment is taken, and also the company in which one is employed also
contributes as per some ratio, and then it is invested on your behalf somewhere, Allah knows best, and
then you get the money when you retire or even before that. But it is haram, because it is very difficult
to determine and find out where they are going to invest.
Riba and Haram things both not allowed.
You may be investing in a company which may have a factory which may be selling haram stuff etc.So
Riba itself is haram, and also investing in companies which do haram business like liquor factories, swine
farm. So Riba itself is haram and other forms of haram will come under the banner of haram .
Q9.There are companies which invite investors to invest, plus investing in Insurance Co. Is it allowed?

Answer:-It is allowed to invest in companies which do not deal in interest, if they deal in interest, then it
is haram. As for conventional insurance, it is also haram to invest, because of Gharar(ambiguity),Riba
Q10.Some of the companies you work for, they insure you for certain amount of treatments in the
hospital, for those who work in the companies and their families. For that these companies , pay the
hospitals to insure this treatment for their workers as follows
Your company is going to pay on your behalf as part of some package deal. Monthly they pay the
Hospital 100 Saudi Riyals /person, regardless of the amount of time you end up in the hospital. This is
the amount paid on your behalf and the hospital is going to treat you, give you medications, any form of
operation if needed ,based on the amounts the company is paying for you. We know that there are
times when that person may never go to the hospital, and at times he may go too many times, infact to
the extent that he may undergo an operation costing thousands /tens of thousands of Riyals. All of this
for 100 Riyals /month.
1. Is this medical Insurance acceptable in Islam or is there is something where there is
2. Does this fall in to a business called Al-Jala or not?
3. What kind of Tawun/medical insurance is allowed and which one is not?
Answer:-Since the company pays for its employees certain amount to the hospital for each individual
where the employees get free treatment. This is exactly likeAl-Tameen Al-tijariya
Almuharram/commercial insurance and it is haram, because of the ambiguity (gharar) associated with
it. Basically consuming wealth in haram way. This is unislamic and we should not do it.
As far as Takaful is concerned .It is ok and it is based on contribution and donation and it is ok.
Q11.What is the Islamic verdict on Tameen Al Saiha(Medical Insurance) in which you pay a certain
amount of wealth to a company and this company insures your treatment ?
Answer:-It is one of the types of commercial insurance, and it is haram, because of the gharar/ambiguity
attached to it.
Module 28 Video Part c
Q12.Insurance on Driving Licence/ Tameen Al-Rukhsat.Due to accident the company will bear upto 3
million riyals .One only has to pay 365 Riyals /year.
Answer:-It means the person will 3,650 Riyals in 10 years only ,double it in 20 years 7,000 Riyals ,40
years 15,000 ,80 years 30,0000 Riyals ,its very rare that he lives beyond that time,and for that he is
being insured for 3 million Riyals .This is haram as it is just like gambling (Maisir),and there are so
many proofs for that.Sh.Muhd.Saleh (May allah have mercy on him)answered it.
Q13. What is the Hukm for insurance for car accidents?

Answer:-Haram as it involves conventional insurance. Part of the Nasiha given was the hadith of the
prophet (SAW)
The person who refrains from something, for the sake of Allah ,Allah(SWT) will provide him a
substitute which is better for him.
Because a person may spend that much of money and may not be benefitting from it at all,where as
other people may benefit from it more than they may have paid for .
Module 28 Video part e
Q14.Special Cards/Membership Cards/similar to those issued by companies all over the world. What
about a customer /member of sucha card which offer discounts such as Teachers card. InSaudia
Arabia they offer the teachers card for a certain fee. Once we become a member, then we are eligible
to avail discounts at hospitals, hotels, other places which acknowledge such cards
Answer :-Not allowed since there is a fee attached with a card, that fee is not acceptable Islamically
,which involves ambiguity ,taking peoples money through Batil(fraud),which is not halal. These cards
should not be issued, neither are we allowed to be a member of such schemes.
Q15.I invested in ArajhiBank.I gave them 3,500 Riyals for 35 shares. Now the price of those shares is
50,000 Riyals. The company has been distributing the profits to the share holders. Is the profit ok or
Answer:-If you have invested in a company, which does not deal in interest, then you are allowed to
take your share, but if it is dealing in interest, then you are not allowed to invest in it, neither are you
allowed to take the extra profit.
Q16.Giving your name to somebody for investing purposes? Is it allowed? Like for collateral purposes.
Answer:-Not allowed. It is cheating
Q17.There are so many investment companies/banks who claim that are dealing with Shariah and
investing your money Islamically ,take your money and invest ,and then take some percent 10% of the
profit for themselves .Is it Islamic or not?
Answer:-Do not invest with banks (conventional) ,since they are found on Riba system. But if Islamic
banks offer some products which is halal, then there is no problem .It is allowed, if they take 10% out of
the profit.
Q18.Is it allowed for us to deposit our money in saving accounts /deposit term in banks /companies
Answer :-If they deal in interest, then not ,otherwise if they deal as per Islamic terms and objectives,
then it is allowed.
Q19. What about taking loans so that I can become a partner /investor in some companies?

Answer:-This question was asked from Sh.Uthaymeen .He says that

To take loans so that you can invest in the share is among the stupidest acts of a person.
Be it through interest or without interest, regardless of that, the one with interest is even worse. You do
not know whether you will gain any profit or not, then if not how will you give the money back to him.
So you only try to invest what you already have.
Allah says
For those people who are not able to afford means of getting married, then they should save their
chastity, and safe guard themselves in the way which is described in Shariah, till Allah(SWT) gives
them enough through which they can get married
From this it is clear, that Allah is not saying that those people who want to get married and they cannot
,they can go and take loans, though it is allowed ,and getting married is more important than getting
richer. Yet Allah did not tell this.
The prophet(SAW) said to those people who could not afford to get married
Oh young men,those who are able to afford the means of marriage should get married ,and those
who are not able to ,they should fast.
He did not say that they should take loans. Though, taking loans (QardHasna) at the time of need is
allowed. It is very encouraged as per the hadith
If a person gives twice in loans, it is equal to the same amount of charity given once
But only in the time of need, not because that you want to invest and get richer. You may lose it all, and
then you may find it difficult to pay it back. We all ,may have taken some loans in some part of lives, and
we know it keeps on bugging us till we pay it back, so its mentally and physically draining .The best
person is one who does not owe any money to anyone, he lives with so much pride in him/her. May
Allah bless us and gives us enough that we may survive upon, and do not need to take loans .It is a
blessing from Allah to those who manage to survive without taking any loans.

1. How can you use the interest to give as sadaqa, when Allah is good and only accepts that
which is good. Riba is haram. How can you give others haram?
2. For medical insurance is allowed how does takaful avoid ambiguity vs commercial
3. Please explain why membership cards are haram. You pay for a card knowing that you
will get discounts. So where exactly is the ambiguity? So COSTCO cards are haram?
4. Giving your name for collateral purposes in getting a loan is haram or not?

5. Please explain why the critics of sukuk feel that sukuk islike evading the restrictions on
Riba. Does sukukresults in a debt? We know that debt cannot be traded other than at face
value as debt and money cannot change value with passage of time. Is this why?
Interesting article on sukuk and the Dubai Debt

Module 29
Module 29 Video part a1
Multiple Q/A Session Regarding Transactions/Insurance/Working in Banks etc.Contd.
Q1.If a bank announces that it is an Islamic bank and deals in Islamic way, is it enough for
us to trust or should we verify it further?
Answer:-We should definitely verify, because there are too many people around claiming too
many things. We also know that it is not easy to verify for a layman, it may almost be
impossible. We may have to go through the Ulema/Mashiakh/scholars to guide us and provide us
with the necessary information.
Q2.To keep money in a commercial bank,is it allowed or not,with /without interest?
Answer:-When we keep money in the bank, we are promoting their system. Allah says that
And support each other in acts of righteousness and piety, and do not support each other
in activities which lead towards haram and acts of sinfulness.
On this basis ,keeping money in commercial banks is discouraged. Involving in the system of
Riba is definitely not acceptable, and if you do gain something then it is to be donated and tauba
to be done. While at the same time, it is allowed to keep the money in the bank (due to the fear of
it being stolen, if kept at home)but try to keep it in some Islamic bank if it is around your
locality. Allah knows best.
Q3. What about receiving our wages through these commercial banks dealing in interest?
Answer:-It is better to find an Islamic bank nearby to channel your wages ,but if not ,then it is
allowed to receive wages through a commercial bank.These are your wages ,and you are the one
who earned these and worked for these ,and it does not mean that if they are received through a
commercial bank,then they become full of interest/victim of interest.
Q4. Offers/Promotions in one of the Saudi Banks. We have a bank which will basically buy
anything for us we need, be it furniture, piece of land ,car etc. but the conditions are that
one has to have a job. I am working somewhere where I am continuously paid for, and also
my wages have to come through this bank and not any other bank, for a period of five

years or so, whenever the wages come, the bank will deduct a certain amount out of it,
before giving the rest of the amount for me to use. The way they operate is as such
I go to the bank and I tell them that I want to buy a car. They tell me to go to any
company/showroom and choose whichever car you want. Then bring an official paper from
that company/showroom, proving that the car which you want to buy is there, with the
indication of the price. What the bank will do, it will issue a cheque to that company, with a
letter mentioning that the car may be handed over to the carrier of this cheque, but in the
end ,if the car is for example 100,000 Riyals, the bank will add 7% charges to be paid every
year by the person buying the car. This is the amount the bank will charge for that service,
and I will have to pay the amount in instalments as deferred payments for the next 5 years.
So bank charges 130,000 Riyals for a car which they paid 100,000 Riyals for. Same
situation can be applied for purchase of land. Is this type of transaction allowed or not?
Answer:-This kind of dealing is not allowed, it is haram. In fact it is a loan given to you and then
charged more afterwards. Allah You should keep away from it, and the one who leaves
something for Allah, Allah says
And whoever fears Allah and put his affairs in His hands, Allah opens doors for him, and
Allah is going to sustain him from ways which he never may have thought.
We all have our own issues, expenses to bear , regarding our sons ,daughters, wives etcetc .But if
we go through the right/halal way, Allah will bless us and put barakah in it.
Q5.Question asked from Sh.Uthaymeen. Some of the companies, they deal like this that if
you need to buy something, car, etc. The bank will buy it for you, while it will increase on
the amount that you will pay?
Answer:-Sheikh has made it very clear, that it is a Heela(technique) which the bank uses, it just
buys that car and put it on the paper, meaning not actually buying ,and then later selling it to you.
There is a big Shubha(doubt) in it.So one should keep away from it, since it is a very dodgy kind
of transaction. Basically, what is happening here is that they are buying the good and then selling
the good to person at the same time for more price. We have in cases of Inah which is haram,
where a person buys a thing from someone on credit, and then sells it back to the same person at
a lesser amount. But Tabarruq is allowed, where you go and buy something, and then sell the
item in the open market for cash which is less, while you have bought it for instalments.
Basically that good/car belongs to you and you may do whatever with it. Also the condition that
the Property will stand in the name of the seller till the full payment is made. as per Islamic
transaction, if one buys something, one is the legal owner of that, and may do anything with it.
This is also haram.

Q6.A man came to me and said Give me 23,000 Riyals and after one year I will give you a
single cab Datsun car model 94(either the Question was asked 16 years back/brand new
car or the model of the car is old)Is it allowed?
Answer:-It is allowed for you to give a person some amount of money and then that person
gives you a commodity, here in this case it is a promised car. According to the promise, whatever
he has described the car to be it meets that standard. This type of transaction is allowed and it is a
form of Salam, where you pay in advance and receive the goods later. Salam is a sale whereby
the seller undertakes to supply some specific goods to the buyer at a future date in
exchange for an advanced price fully paid on the spot. Salam is beneficial to the seller,
because he receives the price in advance, and it is beneficial to the buyer also, because normally,
the price in Salam is usually lower than price in spot sales. The sahabas they came to the prophet
(SAW)and said
YaRasool Allah,we have difficulty sometimes when a tradesman will come and he will pay us
a certain amount of price for some dates ,which we will sell for cheap price, meaning that
normally if it came in the market they would sell it for say 5 or 10 Riyals/Kg,whereas if a trader
came to them and paid for the dates one year in advance they would sell it for 4 Riyals/kg at a
lesser price
Meaning that you need that cash but the trader ,may not be needing as much of the cash ,but the
product end of the year ,and also at a cheaper price so he can make more money.So the trader is
giving the money in advance for an item that he will receive later.This is allowed.
Q7.Buying of Foreign Currency(Dollars to Riyal) in the bank Shuthaimeen
Answer:-Allowed with the condition that it has to be exchanged there and then. The payment
has to received before you go away. So you go to the bank, for example give them
30,000Riyals and get 10,000 dollars in exchange there and then, after having completed all the
paper work of the bank. In Saudia $10,000 is not a big thing, there are road side money
exchangers, but in other countries like New Zealand, its not that easy, one will have to request
them earlier for such huge amount, since money exchanging business is in shops, behind the
doors, unlike in Saudia Arabia where the business is done on streets. But if you are not receiving
cash in hand, then it is not allowed.
Module 29 Video part a2

Q8.What about receiving a cheque instead of cash?

Answer:-Sheikh Uthaymeen is saying that it is not allowed, because it has the concept of
RibanNasiah(Riba due to delay in payment)because if you receive a cheque ,and you lose it
somehow, then you can go back and request for another cheque, so Riban Nasiah becomes
apparent in it. Though others may have different opinions, but Allah knows best.

Riba Types
1. RibanNasiah
It is taken from the word Nasah which means to delay. Here it relates to delay in
payment. This is further divided in two types.
First case , where a person is not able to pay back the loan in time, due to the
difficulties faced by him, so you give him one more year to pay back the loan
,while increasing the amount of interest. This is exactly what used to happen in
the days of Jahiliya/Ignorance, where people would lend out money and in case of
non-payment in time would increase the interest .This is haram.
It refers to selling the goods of the same type, but during buying and selling, you
delay the payment of one, or both of them are delayed. such as selling gold for
gold. You take the gold but the other person does not give you the gold, or both of
you agreed but did not bring the gold, or even gold for silver or silver for gold.
There are two categories, one is gold and silver, second is dates wheat, barley, salt
2. RibanFadl
Selling of an item for another item of the same type but in excess The extra which has to
be paid in one of the two. If you are selling gold to gold, you cannot increase the
amount .It has to be 50 gm-50 gm, however naturally if one is selling gold to silver, then
the weight will differ .Same applies for wheat wheat and barley barley.1kg barley for
1 kg of barley. If Wheat Barley then it will differ, but it has to be at the same time.
In different categories, like from gold to wheat, it may be tons of wheat for some weight
in gold in kg.It is also allowed to delay the receiving in this case, like in (Baye-Salam)
Salam transaction, or pay in instalments (deferred payment(AlBayeTaqseet)
Q9.I have a farm and registered/certified with the Govt. to produce as a farmer
produced very little amount of wheat, whereas my brother produced huge amount. I
sold my part of my contract to my brother for say 10,000 Riyals. Then my brother,
he took little bit of my wheat, then he went to his wheat and produced lots of wheat
under my name/certificate. Is it Ok to do that?
Answer:-Not allowed to take another persons name. As you are registered for yourself,
while your brother is not registered under your name You should be on your own and he
on his own. One product cannot be sold under the name of another persons product.
Example:- Nike shoes, maybe made in China, but on it is written that it is a product of
USA. It can technically mean, that it is made somewhere else, but the design/money is
coming from USA. The consumer, however has no idea where is the product coming

from? This is the way the people deceive. It may be made in Indonesia, and written as
product from UK, due to the business people being from UK. This is not correct
Unbreakable:-When they say an item is unbreakable, and it breaks so its deceiving
people. Titanic ship was being made, there was a technical mistake regarding the right
amount of iron used, the owners had given the guarantee that the ship was unsinkable, but
it hit the iceberg it broke, and sank in its maiden journey. Allah showed them that there is
no power above the power of Allah (SWT),we all know this but people tend to forget this
.We as Muslims should be humble and bow down to Allah and seek his forgiveness.
Q10. Commercial Competitions( Again a very old Question coming to the Mashaikhs
of Saudia Arabia which shows that if this were the situation of the place at that time, a
place which is considered among the best of the Islamic countries, where Makkah and
Madinah, the two holy places are situated ,what will be the situation now? The place ,the
memory of which we all cherish ,when you enter Alharam ,when you go there and pray
behind the imam, his voice echoing through thousands of microphones, there is no other
feeling better than that, when you bow down in prostration, and when you know these
type of things happening there!, its so difficult to digest ,but this is what is happening
Module 29 Video part a3
Q10.There are certain amount of competitions where people are encouraged to go
and buy goods from people and they use it as a competition .Names like Musa
BaqaAsharookhi ?? Musa Baqaa Rasha TIjaraya..
Answer:-Not allowed, just like a lottery /gambling system prevalent in western countries
like UK, USA, Canada etc.
Allah (SWT)says
Oh..those who believe in Allah ,all these kinds of things ,gambling ,intoxicants
,throwing lots ,ways of Jahiliya, worshipping of idols,, all this is part of what the
Shaitaan is promoting and whispering ,and victimizing people through, keep away
from the,. maybe you will become among the winners.
Example:-Some of the shop keepers they attract customers and give vouchers to buyers.
On purchases, the names of the buyers are cast in the lottery, and winners are given huge
prizes. This is all ambiguity, gambling, generates hatred amongst people, as the ones who
win they rejoice, while those who lose develop enmity towards them, and can lead to
fights and at times even murders due to this rivalry. So it is Haram.
However, having said that, it is allowed to attract customers, through deals and discounts
(30%, 50% etc.) .As in this way, every customer who walks in your shop, will have the
same opportunity with the same benefit. This is OK.

Q11.There are certain companies /banks which have this offer that if you open an
account with them to keep your money there and use it as your bank, there will be
lottery, by picking u of lots.
Answer:-It is haram, because they take your money, and invest it in haram places, and
through Riba /interest whatever they make out of that, they put up as prizes. It is
gambling as some win while others do not.
Q12.I went to a shop to buy milk for my children, and the sales person said to me
that We have got a special kind of milk, which if you buy, you will receive cash,
starting from one Riyal and can be up to 500 Riyals So hearing about this cash
prize ,I ended up buying 4packs of milk, because I wanted to get that prize, so I
found one Riyal each in two of those 4 packs, in the third one I found 10 Riyals ,and
in the fourth one I found 500 Riyals. So is that money halal for me, and if not what
am I supposed to do with this money? And if it haram, please try to do something
about it, so that the common people become victim of such things. Please guide us.
Answer:-You are not allowed to put any form of cash in the merchandise which you
are selling, so some will receive, and others will not. Or any other form of gifts ,which
may be in some and not in others, through that you attract people to your shops for sale,
and also harm the fair competition ,and others may lose money because of that, while
you make money through haram ways. This is not allowed, there is ambiguity, gharar
in it, where some people benefit, whereas others do not, so it is not an equal chance for
everyone. Either you return the cash prize back to the owners if you are able to with
ease, or else give it in the path of Allah(SWT) for the needy and the poor.
We do know that sometimes in western countries, when we buy something, we do not
buy that thing to get any cash prize, but when you buy you find that you have won
something, in some scholars view, you should in such a case give the money to needy
people. Some others scholars view is that, since it was not your intention to buy it for
cash, you can keep it for yourself. But in the case of the question posted, the person made
his intention clear that he bought the milk packet because of cash, so in this case it is
haram money, so either you should give it back or spend in charity.
Q13.Buying newspapers, because of those competitions which are there, and there is
a cash money involved in that. Answer:- One should not buy these papers, because of
all the haram stuff present there. They do this to promote other things which are haram.

Module 30 Video Part a

Stock Market/Selling Buying of Shares:
Is it Ok to invest/deal in conventional and commercial stock market?

Answer:-While there is no prohibition Islamically related to any kind of halal investment in

halal companies, where there is some expected return as profits. After all we all try to make
money out of money, it is all that simple. You have to have money in order to survive in this
dunya .So there is nothing wrong with that .But what about this system of stock exchange and
the likes?
When you invest in a company you expect to gain profit, at the same time, you are prepared to
bear the risk of losses as well. However the problem with the stock exchange is that the shares
that we buy ,most of the time the value of these shares does not reflect the actual worth of the
company and how well it is doing in real terms ,but it is dependent on speculation ,thus
becoming a form of gambling. Now, we all know that the stocks go down by just an incident
that has happened (natural calamity etc.) or even by word of mouth .One starts to wonder, that
how come something worth $1000 /kg is now being sold for mere $10!!
Reason:-In stock exchange, this is not the real price, neither it is the real exchange of items
taking place from hand to hand. It is speculation which can make a gain and loss within a day
and night. No wonder, even so many of the non-Muslims have called openly more than once,
after deep recessions which have taken place many times, not only the one which happened few
years back but many recessions in which people have lost millions of dollars. Real examples of
people having billions of dinars, due to stock market crashes now they have almost nothing left.
It is unbelievable because we know that in real terms, and with real money, this usually does not
happen. Now we are not saying that people might have not bought the shares, he may have
bought ,and then due to speculation ,it rose to a high price, and then after recession the value got
reduced to very low ,where this fake money was in existence ,which is basically what the stock
exchange is all about. So this is all gambling.
So the Islamic laws governing economics are designed to ensure that all contracting parties know
with certainty and the factors involved in the deal and the outcome of it. Not that we do not know
what the real price may be, any simple speculation and the price may go rocket high and vice
versa. That is why there is a lot of issue with stock exchange.
According to the council of Fiqh, the head office of which is in SaudiaArabia, the verdict given
as regards stock exchange is as follows. After studying about stock exchange, and knowing the
details about the way they operate, the people dealing in it have come out with certain

Positives:-As far as the positive side is concerned, this market is always open, where the
buys and sellers can meet and buy continuously. Sales like credit /debit /cash sales, also selling
of shares, bonds, merchandise etc.

Very easy way through which people can finance other companies.

Productions can be financed and commercial arrears/areas?? /governmental sides also

Among those venues where it becomes easy to sell, due to the open timings unlike
normal office timings

Prices of commodities /shares/bonds, although they may be speculative.

Negatives:-Based on speculation, not real prices, because the real exchange does not
take place, and we know Islamically, a buyer has to actually receive the good at the time
of payment.
The seller in most of the cases is selling what he does not even own in many cases. He
first sells then he goes and buys that item later for the buyer. Sometimes they sell

shares/bonds which they do not own, and they show that they are owners, then they
speculate and sell them at a higher price or something similar to them. So once they are
successful in selling the share, they may go in the market and try to find it ,and then
transfer it to the buyer. Sometimes it may change hands from one hand to another hand
continuously maybe two/three times, such that there may be actually six/seven people
between the real seller and the real buyer.
The major share holders in a particular merchandise /company play a game of
monopoly and freeze the assets, and not only that but also shares and bonds are also
frozen for them to benefit from that in a bigger way.
There are many ways to know that these stock exchanges are very dangerous and unacceptable
such as
Reasons:1. There are certain people who control it for their own benefit, and they will never regret
killing anyone who comes in front of them to buy or sell.
2. Also they may speculate all the lies around the market in order to have favour for
themselves. For example the major shareholders all of a sudden put lots of shares in the
market, due to which the price of shares goes down, because no one can buy so many
shares in a such a short time. So the value of the share goes down say from $10,000 to
$1000 .So the small share holders/business men may fear that they may lose their share
money ,so they end up selling their shares in the market quickly to get away from it.
Once they also sell their shares, along with the major share holders who have already sold
their shares, the number of shares will increase further in the market, so now price of the
shares will go down further. At this point ,the big share holders will come and buy those
shares again ,and once they start to buy these shares , then as the demand increases the
prices will go up again, maybe higher than what it was in the beginning .So this is the
way they manipulate and make money.
3. Due to the above mentioned difficulties, many people called for the closure of this
system, and we know that if a system is built on un-islamic terms, then definitely such
issues will take place.
Solution:-Scholars of the Fiqh council, after having studied the positives and negatives of this
system have arrived at the following solutions.
The main theme for the whole market of stock exchange is the continuous flow of
buying and selling. Though it is good and beneficial, but those who benefit from it by
buying and selling and cheating others, so it is kind of gamble de to the ambiguity in it.
When buying and selling takes place Islamically, a person has to receive the item what he
buys. The prophet said Do not sell what you do not own, whereas here in the stock
market, they sell what they do not own.
Also the contracts which they sign, deferred payments, Riba based loans all is haram.
Many people lose their wealth within a day or night, due to this ambiguity and
speculation, so haram.
Allah states in the QuranThere is only one true path, which is the straight path, and that
is the path of the Quran and the Sunnah. so do not follow the path of the Satan
So stock exchange is totally haram.

Module 30 Video part b

Copyright Issues
We know we have got so many copyright issues today. Previously it was only for books (Islamic
and Non-Islamic) ,but now it involves computer software programs, DVDs, Islamic programs
etc. All these are copyright protected. So how should we deal with such issues, when we know
that many of us have softwares which we use in the computer, these softwares are all copyrighted
but we get the copy of that software without the original. The Mashaikh have been asked about
it, because some of these are so expensive that one has to pay at times thousands of dollars to get
that software. Now after one year, you change your computer, then you will have to buy another
program for that. So this scenario never finishes, and so there is a big issue about it. So let us see
what the scholars have to say boutit. Naturally, when it comes to copy right issues, the scholars
have differed in their opinions, between yes and no. If YES, upto what extent and similarly in
the case of NO. As some scholars say that it is a big NO. no copying is allowe ,while others have
allowed, saying that there is no copyright. Then there are some who have moderate views
between the two. Let us see some of the views and their reasoning why they have adopted that
view and what we can do about that.
Question was asked from The Permanent Committee for Islamic Research and Fataawa
inSaudia Arabia al-Lajnah ad-Daa'imah
Question:-I work in the computer department and one of the things which I do is that I copy the
software, so that I can work, and I do these without even buying the original program, meaning
that it is pirated copy which I use, while I know that there is a copy right warning on the
software which disallows us to copy the original software. So there is a copyright law which I
should not be violating. The program may belong to a Muslim or Non-Muslim. Am I allowed to
copy it or use it?
Answer:-You are not allowed to copy programs belonging to others to use it, without their prior
permission .The Prophet said
The Muslims are according to their conditions. Now the condition here has been made by
the owner of the program that you cannot use the program /software without his prior
You are not allowed to use the wealth /assets of anybody without them agreeing you to let
you use
From these and a number of other hadith ,we conclude that the original owner of the program
may have spent a lot of money ,work and input on that program, so who are we to violate their
law, and take pirated copies and use it. Thats why the scholars have said that regardless of
whether that software belongs to a Muslim or a Non-Muslim(not in war against the Muslims),we
are not allowed to make copies of their copies without their permission, or we should buy the
original ones. While we do know that with the high price of these softwares, its not easy. But this
is the view of the scholars, and we also know that all these softwares are now available to be
downloaded from the internet, after a certain payment.

Sh.Uthaymeen gave a more detailed version of this issue, when he was asked about this issue of
copyrights associated with computer programs /softwares ,when the companies issuing the
software do not allow the copying of their softwares without buying the original, and the Sheikh
was told that these companies play monopoly by keeping the price of these softwares
extremely high, and if they are copied ,they would then be sold at a cheaper price. The
program could be any like a Quran or a hadeeth related program. Sheikh replied that every
country has its own law. So if the Govt. is prohibiting to make pirated copies, then one is not
allowed to copy any such program. But if no such law exists in the country, then by copying a
particular program, you will not be sinful. As far as the copy right from the company is
concerned and no restriction is from the Govt. ,then if you are copying it for your own personal
use and not for making business /selling to others .then in that case it is OK.But if one is
making pirated copies for making business and selling to others ,it will harm others ,i.e the
original sellers and it should not be done.
Also when he was asked
Am I allowed to buy a particular pirated software for 50 Riyals, when the original is for 100
Riyals ?
Answer:-No, You should not do that without the prior permission of the original owner, or else
buy the original software.
So the Shiekh has allowed the copying of the software for personal use, but not allowed for
business use ,as well as not allowed to buy/sell it, if it is a copy and not the original. But if did
not know that the software that you bought was a copy, and not the original, then it is ok.
Sh. Jibreen, another great eminent scholar, when he was asked a question
Question:-We copy cassettes containing Islamic lectures etc. and we distribute these further
free of cost as gifts to other departments, general public, schools. The cassettes are
copyright protected .So are we allowed to distribute these cassettes?
sThey are not allowed to put these cassettes under copyright protection, because it is meant to
benefit the general public, and so should be copied and distributed .So it is ok. Now this is on
something particular i.e the cassettes. Now, it may be of the time, when the Mashiakh would give
lectures in mosques etc. and somebody would go and record it. Now these lectures are public,
and once delivered they become a public property, so if a person restricts such lectures to be
recorded, then there is an issue in it, because the Sheikh when he gave that lecture, it was meant
for the benefit of the people, so that is why the ruling given by the Sheikh that it is allowed to
copy such lectures and cassettes., and one should not make that type of material copy righted.
Copying of Books/Cassettes
Sheikh Sulaimanibn Nasir al-Ulwan, was asked about the copying of books/Cassettes and their
distribution, he said that this is a new kind of Masala ,there are people who say that there is no
right on it at all, some say that that is allowed to copy and distribute ,while some are in the
middle ,then he says that
The one who wants to copy a book/cassette, in order to do business with it, and there is a
copyright on it, then he should not do it. This is the Sahi/correct view ,because he is making

money by making copies out of the original ,and that is haram.It is also very fair, because a
person may have spent years working on a particular book, investing his time and money , to get
that book in the market, and after the publisher has spent so much of his money in publishing
that book, and some money person comes and buys the book and makes millions of copies out of
it, and then sells these at a much cheaper price in the market. This way, at times the publisher
may not even retrieve the original cost of publishing his book, so this does not look good.
Scholars have differed. What about if that is something for the sake of Dawah, or in a place
where it is difficult to get more copies of that book, material?
Scholars have ruled that under such circumstances it is ok. So from this we learn that we should
keep in mind the rights of others, so should try to buy the original, esp. if it is fair in price, and
not speculated price .Such as Islamic books which are usually sold at nominal price. Also there
are places like in jungles, where it is not possible at times to get so many original copies of
Islamic books, so copyright law cannot be practiced there. The priority here should be spreading
of Islam, rather than saving few dollars due to copyright. So there are cases where exceptions
have to be applied, but in normal circumstances, the copyright laws have to be followed. The
prophet said
You cannot be a perfect Momin, till you love for a fellow Muslim what you love for
Ofcourse, you do not like to cheated as well as not deprived of something that belongs to you
unfairly. Something on which you have spent your time, money and energy, be taken away from
you by unlawful means, this is not acceptable. So what one loves for oneself, one should love for
one's brothers and sisters as well. Now there is nothing wrong in making money out of Islamic
activities to sustain oneself, provided we know that it is not our sole aim/purpose. Now if we say,
that those who write books, they are not going to get anything of it, one may wonder how many
books will come in the market. The reason is that not everybody can afford to write a book
without incentive behind it.
We know that at times, the writers can write only one page in days. So this is the reason of
copyright and we should respect it

Module 30 Video part c

Arabic word, a plural, singular is Sakk, commonly used for Islamic equivalent to bonds ,
financial certificates .However as opposed to conventional bonds ,which merely confer the
ownership of debts, Sukuk grants the investor, a share of the asset, along with the
commensurate cash flows and also the risk of losing or gaining.
Types of Sukuk:
Investment Sukuk which includes sukuk of ownership of leased assets, ownership of
USUFRUCTS, ownerships of services, salam. While a conventional bond is a promise to repay
a loan, Sukuk constitutes partial ownership in a debt (SukukMurabaha), asset (Sukuk Al Ijara),

project (Sukuk Al Istisna), business (Sukuk Al Musharaka), or investment (Sukuk Al

Istithmar).Also investment in share cropping ,irrigation and agriculture partnerships.
Investment Sukuk:Certificates of equal value, representing undivided shares in ownership of tangible assets
USUFRUCTS and services Just like a big S building worth millions of dollars where there are
many, many shares. Substitute of bonds, but not speculative but real. Its is also a substitute of al
other kinds of haram investments.
Types of Investment Sukook
Certificates of ownership of leased assets
These are certificates of equal value, issued either by the owner of a leased asset, or, a tangible
asset to be leased by promise, or, they are issued by a financial intermediary acting on behalf of
the owner with the aim of selling the asset and recovering its value through subscription, so
that the holders of the certificates become owners of the asset.
Certificates of Ownership of USUFRUCTS
The USUFRUCTS meeting, such as leasing /renting a service which people use, but the actual
infrastructure/ asset stays there as it is without it being finishing There are divided into two kinds
1. Certificates of Equal Value Issued by the Owner of an Existing Asset, either on his own
or through a financial intermediary ,with the aim of leasing the asset, and receiving the
rental from the revenue of the subscription so that the USUFRUCTS of the assets passes
it to the ownership of the holders of the certificates.
2. Certificates of Equal Value Issued by the Owner of the USUFRUCTS of an Existing
Asset, either on his own or through a financial intermediary, with the aim of leasing the
USUFRUCTS, and receiving the rental from the revenue of the subscription so that the
holders of certificates become the owners of the Usufructs of the asset
There are so many other kinds.
So either a person holds a property in shared amount, or he holds the benefit of the property, all
of it or in shared amount .Such as a house or a big building which could be rented.
Certificates of Ownerships of Services of a Specified Party
These are certificates of equal value issued for the purpose of providing services through a
specified provider, such as educational benefits in a nominated university, and obtaining the
service charges in the form of subscription income, so that the holders of the certificates become
owners of the services.
Now there are people who are providing services for students to get educated in some place. So
due to these services, they sell the Sukook. So the owners i.e those who have invested, they are
partners in this service. Now they may have invested thousands of dollars (10 or 20,000) to set

up everything and then they start to provide the services. Income comes through these services
and part of this income will be divided among the owners of the Sukook, because they have
provided the service.
Certificates of Ownerships of Described Future Services
These are certificates of equal value issued for the purpose of providing future
assistance/services such as educational benefits of a university without naming the educational
instituition ,and obtaining the fee in the form of subscription income so that holders of the
certificates become owners of the services.

Certificates of Salam

Certificates of equal value issued for the purpose of mobilizing the Salam capital, so that the
goods to be delivered on the basis of Salam, come to be owned by the holders of the certificate.
Now we know that in the Salam transaction ,the payment comes first and the delivery come later,
maybe one or two years after the payment.
Istinsa Certificates
Certificates of equal value issued for the purpose of mobilizing the fund, to be employed for
the production of goods so that the goods produced become to be owned by the certificate
holders. The certificate is issued, the funds are collected and production takes place, whatever
produce comes out, the holders of the certificates, they are the legal owners of that product and
they can do with it whatever they want.
Morabaha Certificates
Certificates of equal value issued for the purpose of financing the purchase of goods through
Morabaha so that the certificate holders become the owners of the Morabah commodity. The
system of Morabaha is applied here, and these people who have invested in there through their
Sukook,will be the legal owners of this commodity.
Share Cropping Certificates /Mozara'aa
Certificates of equal value issued for the purpose of using the funds mobilized through
subscription for financng a project on the basis of Mozara'aa, so that the certificate holders
become the owners of the share of the crop according to the terms of the agreement. Now these
people are the owners of the Sukook,they invested in share cropping and then whatever was the
produce of that ,they become shareholders in this .
Musaqa'aa /Irrigation Certificates
Certificates of equal value issued for the purpose of using the funds mobilized through
subscription for the irrigation of fruit bearing trees, spending on them and caring for them on
the basis of Musaqa'aa contract, so that the certificate holders become the owners of the share of

the crop according to the terms of the agreement. So they take care of the crops, invest their
money in it, buy the Sukook and then they become share holders in that.
This is just part of the Sukook which is a big topic, however the doors are still open. In 2007,it
had reached 50 Billion until M. Taqi Usmani criticized it, terming some part of it to be UnIslamic ,so it went down ot 14 billion, but now it has risen up again to 500 Billion Riyals or
But we know that it is one of the future upcoming franchise/system, where Muslims are
benefitting in Middle East and in Asia, and in other places, where the Muslims are in abundance,
so they are using the system and buying Sukook e.g in Railway, road system, other mega
investments where developments are taking place, where one can go and buy Sukook, and then
one shares in the profits. If there is any loss, you share in the loss as well..and you become
part of the owners ,based on the contract made.
So Sukook can be bought for
a. services
b. future services
d. benefit of the rent etc etc.
Can you explain how sukuk is different from interest-bearing bonds, as they do not return to investors
more than a fixed percentage of the principal, based on interest rates, while guaranteeing the return of
investors' principal at maturity