NEWSLETTER ISSUE #1 RAMADHAN / SHAWWAL 1440 | MAY / JUNE 2019 RIBA AND THE ISLAMIC SOLUTION In the economic and commercial methodology and procedure fol- is interest. Using end results to justify world, the biggest challenge facing lowed in the Islamic Finance system the method(s) adopted was the phi- Muslims in this era and time is to is most important and crucial. A step losophy of the polytheist of Makkah. bring their businesses in harmony missed can cause the whole transac- They said, and inconformity with the dictates tion to be un-Islamic. We are bound of Shari‘ah. It is a well-known fact to follow the Shariah and cannot that interest is Haram (forbidden). question the wisdom behind such There are many warnings both in rulings. Our obligation is to submit “...That is because they said, “Sale is just like the Qur’aan and Ahadith. Allah Ta’ala to the ordains of Allah and His Rasul. interest.” Whereas, Allah has made sale per- says: Consider the following Hadith: missible and prohibited interest“ (Surah Baqarah) It is clear from the above, the kuffār A Sahabi brought high quality dates used to deal in interest and justify it from Khaibar to Rasulullah (Sallalla- by saying the excess in interest is just hu alayhi wasallam). Rasulullah (Sal- like profit in sale. As Muslims, we can- “O you who believe, fear Allah and give up lallahu alayhi wasallam) asked, “Are not accept interest to be like profit. what still remains of riba (interest), if you are all the dates of Khaibar like these?” believers. But if you do not (give it up), then The Sahabi replied in the negative listen to the declaration of war from Allah If present-day Islamic Banks are able and said, “We take one saa’ (a meas- and His Messenger….”(Surah Baqarah) to save the public from interest by urement for dry items) of high quali- structuring contracts which are in ty dates for two saa’ of inferior dates. WHAT IS THE ALTERNATIVE? conformity to the laws of Shariah, Rasulullah (Sallallahu alayhi wasal- then whether or not their end results lam) said, “Don’t do this. Rather, sell In an environment where the entire are the same as Conventional Banks, your two saa’ of inferior dates for a financial system is based on interest, their efforts will be noteworthy and few silver coins. Then buy the high it is a daunting task to structure the acceptable. Of course, the contracts quality dates with the same coins.” financial institutions on an interest must not have ribā’, gharar, and oth- free basis. Moreover, eradicating in- er non-Islamic elements hidden be- Apparently, there is no difference be- terest does not necessarily mean hind a string of words. Furthermore, tween the two transactions; the end that one cannot be profitable and the contracts should not be a mere result is the same. The Sahabi would thus not earn any returns on invest- theory, but should be implemented still end up with one saa’ of high ments and financial services. The appropriately as well. quality dates and the other with two alternative to the conventional in- saa’ of inferior dates. However, in the terest system of financing is Islamic first transaction, the Sahabi was in- SERVICES OF THE DARUL IFTAA Finance. Various modes of Islamic volved in interest (Like-items which - Issuing of Fatawa (Decrees pertaining to Shar’i Finance have been designed to over- matters). are weighed or measured in vol- come various financial challenges ume cannot be sold in excess). Ra- - Answering queries of Deen received from across like musharakah, mudharabah, mu- the globe. sulullah (Sallallahu alayhi wasallam) rabahah, ijarah, salam, istisna’ etc. - Islamic Finance. saved the Sahabi from interest by - Mediation and Settlement of Disputes. proposing two separate purchase/ However, one should be cognisant of - Annulment of Marriages [faskh]. sale agreements. Excess in a pur- the fact that whilst the end result of chase/sale agreement is called profit. - Islamic wills and inheritance and Trusts. Islamic Finance and the conventional Whereas, excess in like-items which - Publication of Islamic Literature, Posters and banking may be the same, that does are weighed or measured in volume Islamic calendars. not make the ruling the same. The DARUL IFTAA - LIMBE, MALAWI | PO BOX 5085 | MOB: + 265 997 941 870 | EMAIL: [email protected] Q& A Mailto: [email protected] WhatsApp: + 265 997 94 18 70 comes an irrevocable divorce. If he marriage. If the second husband Q. Please explain the 3 types of di- therefore wishes to take her back then divorces her or passes away, vorces and laws related to them (after the Iddah period has lapsed), she may then marry her first hus- he can only do so after renewing band after having observed the Id- A: According to Shariah, there are the Nikah. dah (of divorce or death, depend- three types of divorces: ing what the case may be). Talaaq-e-Raj’ee (revocable divorce). TALAAQ-E-BAAIN: Talaaq-e-Baain (irrevocable di- Talaaq-e-Baain is an irrevocable Q: Person A gives person B $100,000 vorce). divorce where the husband uses as he needs them for business. Per- Talaaq-e-Mughalladhah (perma- ambiguous words or phrases to son A tells him to take the money, nently irrevocable divorce). divorce his wife. For example, the but I will be entitled to a profit of husband tells his wife “Pack your 25% of the capital. I will also bear TALAAQ-E-RAJ’EE: bags and get out” or “You are no any losses incurred in the business, Talaaq-e-Raj’ee is a type of divorce more my wife” or “Go to your fa- is this allowed? i.e., he buys goods wherein the husband divorces his ther’s house”. Talaaq-e-Baain will and sells for $300,000, then Person wife in express and explicit terms. ONLY take effect if the husband A will only take $25,000 and the For example, he says “I divorce had the intention of divorce whilst rest ($175,000) Person B will take. you”, or “You are divorced”. The di- uttering these or similar state- If this is not permissible, please vorce takes place irrespective of the ments. provide a reason. husband having intention or no in- tention or jokingly. Once the husband issues his wife A: The transaction in reference is one or two Talaaq-e-Baain, she not permissible. The profit percent- Once the husband utters such types has to sit in Iddah. If the husband age share should be from the actual of words, the wife becomes divorced wishes to take back his wife, he profits accrued and not that of the and she has to sit in Iddah (waiting may do so only after renewing the capital. It is probable that Person B period) for three menstrual cycles Nikah. The Iddah will be same as (the Mudharib) may make a prof- if she experiences menses or three explained above in Talaaq-e-Raj’ee. it of $25,000 only and therefore be months if she does not experience left with nothing. This has the po- menses or child birth if she has con- TALAAQ-E-MUGHALLADHAH: tential of dispute as the Mudharib’s ceived. If the husband wishes to re- Talaaq-e-Mughallazah is when the (Person B’s) efforts may go in vain. voke his divorce (provided that he husband issues three divorces to [Shaami; 648/5 – Fikr] has not given her 2 divorces prior his wife (whether Talaaq-e-Raj’ee to this), he may do so during the or Talaaq-e-Baain). Once the hus- PS: “Mudharabah” is a special kind Iddah period. The husband may re- band issues his wife three divorces, of partnership where one partner voke his divorce by verbally taking she becomes permanently Haraam gives money to another for invest- her back for example, he says to her, upon him. She cannot marry him ing it in a commercial enterprise. “I take you back” etc. or by being until after the Halaalah process. The investment comes from the intimate with her, for example; kiss- first partner who is called “Rabb- ing or having intercourse with her. Halaalah is where the wife after ul- mal”, while the management If the husband does not revoke the observing the Iddah (as explained and work is an exclusive respon- divorce as explained above during above in Talaaq-e-Raj’ee), marries sibility of the other, who is called the Iddah period, the divorce be- another man and consummates the “Mudharib”. “THE BEST AMONG you ARE THOSE WHO GIVE THE BEST treatment to THEIR WIVES.” [TIRMIDHI] amount of Zakaat will then be de- contact the Darul Iftaa for a copy of Q: Is it permissible for a woman ducted from this value. Thereafter, the Islamic will. to have a treatment whereby they 2.5% of the remainder will be Za- perm/Curl the eyelashes, similarly kaat for the third year. Q: If one misses a few rakats of how they relax the hair to make it taraweeh, and then he prays witr straight or perm the hair. This is The same method will follow for with the jammah in the masjid. Can not permanent but only temporary. the rest of the years. [Ibid; 275, Al he make those rakats of taraweeh Asl: 82/8 – Idaratul Qur’an] up after the witr, on his own? A: It is permitted for a woman to perm/curl eyelashes and hair for To calculate Zakaat on jewellery, A: If a person missed few rakats of the husband on condition that it is one should first determine the car- Taraweeh, he should join the Imam water permeable and does not con- at of the gold / silver, thereafter one in witr and make up the missed tain Haram or impure elements.