Sayyiduna Umar ibn al-Khattab said, "No one may trade in our markets unless they have learned their fiqh, for otherwise they will eat unlawfully interest (riba) whether they like it or not." During the course of each week, we engage in countless monetary transactions, both simple and complex. We may make decisions on how to invest our money, or perhaps make a purchase with a credit card online, lease property, apply for car insurance, or hire new employees. The above quote from Sayyiduna Umar illustrates the great importance of knowing the rulings related to all of these actions, so that we don’t unwittingly go against the commands of Allah.
Allah and His Messenger, peace and blessings be upon him, have emphasized that making one’s earnings and transactions halal is a religious duty as important as prayer and fasting. Modern Financial Transactions: Buying, Banking, and Investing the Halal Way provides indispensable instruction for ensuring that this is the case with your earnings and transactions. The course will help you to see your daily transactions through the lens of the Shariah and correct potentially invalid dealings.
The focus of this course is on the practical application of Shariah principles. The course will begin with an examination of these principles in relation to riba, sales, leasing, partnerships, agency, guaranty, and debt transfer. This will be followed by a study of the legal status of conventional bank transactions, including loans, deposits, money transfers, letters of credit, letters of guaranty, and credit cards. The course will then look at the Islamic alternatives for investments and financing through covering cost-plus sales, forward sales, commission to manufacture contracts, diminishing partnerships, leasing with a promise to sell, monetization, and insurance.
By the end of this course, you will be able to distinguish between riba and non-riba transactions and understand the relationship between riba and inflation. You will also learn the Shariah’s views on insurance. Finally, you will experience halal alternatives to unlawful modern contracts by learning about the main Shariah components of valid contracts and how to write simple contracts.
This course is perfect for the average person who wants to know how to make their everyday earnings and transactions halal. It is also important for people who want to know alternative solutions to conventional banking and investors who want to invest their money in a Shariah-compliant manner. Content is based on An Introduction to Islamic Finance by Mufti Muhammad Taqi Usmani, Meezan Bank's Guide to Islamic Banking by Dr. Muhammad Imran Ashraf Usmani, and Sharia' Standards by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).