There are many terminologies prevalent in the financial world of today, yet these concepts were addressed by Islamic law more than a thousand years ago. The Quran, Hadith and books of jurisprudence are rich with financial schemes, instruments and products far beyond what is present today.
Did you know?
- The Quran has 35 verses relating to finance and economics.
- Revelation of the Quran concluded with verse 2:281 warning traders in business and economics.
- Verse 2:282 is the longest verse in the Quran and it is regarding finance and economics.
- The most celebrated compendium of Hadith in the Muslim world, Sahih Al Bukhari, contains 113 chapters on finance.
- 471 Hadith are devoted to finance and economics.
- Hidayah is a famous manual of jurisprudence. It contains 24 intricate and complex chapters addressing: forward exchange contracts, cash sales, credit sales, spot sales, currency exchange, collateral, partnerships, leasing, endowments, laws of succession and more.
Among the Sahaba were those who were affluent. They were expert investors and had diverse investment portfolios. They spearheaded mass imports and exports, hiring, securitizing their investments, dealing in collaterals, standing as guarantors, currency trading, investing in joint commercial enterprises and other profitable schemes. They were transacting in the millions.
Abdur Rahman ibn Auf radhiallahu anhu once imported 700 camels laden with goods. He once gave 40,000 gold coins and 40,000 silver coins in charity equivalent to over R73 million.
Zubair radhiallahu anhu had an estate equaling a staggering 52,200,000 silver coins. That is equivalent to over R124 million. The value of these amounts 1,400 years ago was even more.
Islamic law has the solutions to today’s financial crisis. It has a natural elasticity to recognize new financial concepts and instruments.
Article adapted from Darul Iftaa, Issue 47. www.daruliftaa.net