Concept of Maqasid Al-Syariah In directly meaning Maqasid Al-Syariah can be define as the objectives of Islamic law. However‚ in linguistic meaning Maqasid is define as follow‚ a goal or as an inspiration meanwhile Al-Syariah is define as the law that God reveal to Muhammad involving all aspects of life such as family institution‚ in finance or it can say the way of a Muslims live their life. In together term Maqasid Al-Syariah carriers the meaning based on its constituent part
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Capitalism a. Theories of economics regarding interest a.i. Waiting theory a.ii. Liquidity preference theory a.iii. Taking risk theory a.iv. Scarcity of capital a.v. Productivity theory 13. Two kinds of Riba in Islam a. Riba-Al-Jahiliah or Riba-Al-Quran. b. Riba-Al-Sunnah or Riba-Al-Fazal. c. Hazrat Omar Quotation. 14. Scholar names Economical system There are three economical systems in the world. 1. Capitalist system or Market economic ( America‚ England
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Riba‚ Interest and Six Hadiths: Do We Have a Definition or a Conundrum? Dr. Mohammad Omar Farooq Associate Professor of Economics and Finance Upper Iowa University June 2006 [Draft; Feedback welcome] [pic]The Readers are highly encouraged to read another of my essays "Islamic Law and the Use and Abuse of Hadith" before this one to better follow and appreciate this essay. NOTE for fellow Muslims:
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elements that have to be avoided by all Muslim in any financial transaction they made. They are Riba‚ Gharar‚ and Maisir. Sadly these three elements are still practiced in most modern conventional transaction. In fact some Muslim still enjoy engaging with them for certain reason. Some of them don’t understand that what they’re doing is wrong. For example‚ they heard about Riba‚ but they don’t get the concept of Riba or why is it prohibited. But some people‚ they know that they are doing the wrong thing‚
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1) Evaluate modus operandi of Syariah - compiant instruments below : Al Wadiah Saving Account Wadi’ah is a safe custody contract (akad) . There are two forms of Wadi’ahYadAmanah (Trustee Safe Custody) and YadDhamanah (Guaranteed Safe Custody). Originally‚ Wadi’ahYadAmanah where the custodian has the duty to protect the property by not mixing or pooling the properties or money under his custody‚ not using the properties and not charging and fees for safe custody. If he failed any of the above
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concept of time value of money is a key to the door or riba which is prohibited in Islam. However‚ some scholars are of the opinion that time value of money is a concept valid in Islamic economics. What are your opinions on this issue? DISCUSSION: Islam prohibits riba because riba deprives justice and discourage people from undertaking real economic activities. Profit earned from money that is loaned to debtor is considered as interest or usury. Riba gives a picture that money itself can earn profit
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(conventional) or “investing-collaborators” (Islamic). Interest-free banking is inferred as a sub-model; the conventional banking is considered as an “inflation-free” sub-example of the common model. These differences make possible one to wipe out riba from the method without recurring to radical evaluations‚ and still have an entirely executable method attuned with the conventional one. Successively‚ this characteristic creates the new method easy to empathize and to explicate‚ and hence easy to
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It is Riba-free system ( Riba means interest) which ensures the abolition of profit-sharing from the whole financial system. Islamic Finance System (IFS) can be categorized with absence of ‚ Interest based transactions Interest based financial institution Unethical and doubtful transactions Companies’ stocks involved in unlawful activities Market manipulation And so on and so forth. Islamic Financial System is opposite of Conventional financial System i.e system which is based on interest/Riba. The
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industry is a direct response to the growing awareness amongst Muslim regarding the need of alternative financial products and services that is complied with the teaching of Islam. To be specifically‚ the demand is based on the avoidance of the element of Riba which is widely and fundamentally practiced in the conventional banking industry. The attempt by the Islamic banking and finance industry had so far been successful and it could be witnessed by the launching of wide range of Shariah compliant financial
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and new debt amounts to riba. It may be noted that the conventional system of time-based compounding of debt clearly falls in this category. (Obaidullah‚ 2005) In Islamic bank‚ real asset is a product and money is just a medium of exchange. Profit on exchange of goods and services are the basis for earning profit. So‚ they not charge interest (riba). Literally‚ riba means increase or addition‚ expansion and growth. Riba is prohibited in Islam. In the other words‚ riba refers to an increase
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