Islamic Finance

Fundamentals Complete Deen must be adopted in the whole life ( Madar e Nijat)Imaniyat and Amal e Saleh Diagram.. please look it, at separate attached word doc.(success diagram)Financial activities are necessary for the human beings.( prophets used to teach their Ummah about financial matters as well. Importance of financial activities i) More sensitive ( Azmaish) ii) Haqooq ullah + Haqooq al Ibaad iii) Ibadat is not acceptable due to unfair (Haram) financial transactions Hadith e Ibn Umer (r.a) .. Ten Dirham cloth price one Dirham Haram dont accept any prayer ..Basis for financial matters Wellbeing of the human beings and to serve them. ( )

Justice (Adal)Honesty and transparency Carefulness and Cooperation Means all aspects of our life must be covered in the light of Shariah requirements / all things in totality/ balanced life.Life of Sahabah (R. A)Sympathy and mutual cooperation Preparation for the hereafter (Akhirah) Dua of Holy prophet (sallalallah e wasalam) and Sahabah (R.A)General principles of contracts in theQuran & SunnahActs and deeds of individuals:Ibadaat ( ((devotional Acts ) . . . In detail .....Muamalat (( (transections) . . . In general term . . . .

Imam ibn Taymiyyah says:The acts and deeds of individuals are of two types: Ibadat, whereby their religiousness is improved . . . . Shriah establishes that devotional acts are sanctioned by express injunctions of the Shariah. Thus what is not commanded cannot be made obligatory. ii) Adat () [transactions], which they need in their worldly matters.. . As for transactions, the principle governing them would be permissibility and absence of prohibition. So nothing can be prohibited unless it is proscribed by Allah and His Messenger. General frame work . So different people at different places and in different times my seek guidance. The lawgiver conceded the right to Muslim Jurist () to frame specific rules for Muamalat, which may be deemed necessary under prevailing circumstances. This methodology of Shariah provides people a reasonable degree of liberty in their dealings with each other and entering into contracts and transactions.

Keeping such treatment of the Muamalat in Islamic law under consideration the broad principles can be elaborated as follows: 1. Free mutual consent:Essential elements to launch a new business 1) Intent of business ( Niyyah) pleasing of Allah (S W T) by transforming our business into an act of worship . . . . . . . 2) Salah al Hajah ( pray Nawafil and make Dua from Allah (S W T) 3) Be conscious about following things a) personal ability, skills and experience b) Family back ground c) Personal interest d) Current environment e) Estimation of available resources 4) Consult with experts( Shariah and professionals ) also called Istisharah 5) Istikhrah ( consult with Allah (S W T) 6) Tawakkul on Allah (S W T) 7) Persistency and hopefulnessEssential attributes for a Muslim Entrepreneur1) Strong believe on Allah ( S W T)Iman e Kamil means fear of Allah (Taqwa) hadith , Ibn e Abbas (R.A) . Said.if u care about commands of Allah u will find Allah with ur self ..if whole mankind wants to hurt yourself but Allah does not intend itNOT.2) Tawakkul and Rada bil Qada (please with the will of God) Hazrat Ali said if people make their strong believe on Taqdeer (Allah) there will be no tension remaining in their life.3) Avoid from disobay Hazrat Soban (R.A) Human being is depraved from Rizq due to his sins..

4) Gaining of necessary Sharaih knowledge about his field (profession) a) famous Hadtih e Mubarikah.Gaining of knowledge is necessary for every Muslim b) Imam shafi says there is two types of knowledge i) Faraz e kifayah ii) Faraz e Ayen ..Awareness is the first step Holy prophet (sallalallah ale wasallam) used to teach every body all necessary relevant commands to his related field..Act of Hazrat Umer (R.A) .. Act of Imam Malik.According to Imam Shafi and Imam Gazali there is a consensus that, it is not permissible to a person to deal in financial matters with out having sufficient knowledge. 5) Abid . i) Ayah (al Noor) ii) Ayah ( al jumuaa) iii) Ahadiths .. iv) Masnoon Aamal 6) Purification of the Mall (Zakah) Hadith, Hazrat Hasan (R.A).said safe your Mall by paying Zakah

7) Use of Sadqa. Hdith, Qaes (R.A). Said purify your mall by sadqa due to unreasonable talking . Swearing etc.8) Courtesy (politeness) in buying and selling Hadith. Incident of man who used to relief to the people . Jabrael asked him ..9) Truthfulness (famous hadith.)10) Iqalah ( return back policy) Avoiding from the following things: i) Interfering . while the both parties are agree to do the transaction (soum ala soum akheeh) ii) Don't buy the goods before coming in the market (Talaqq e Rukban) iii) Dont sale which you have no possession iv) Dont sale the defected goods v) Advance payment (Baiana) must be return in case of cancelation of contractvi) Dont deceit (fraud) to others in any way Hadith Ibn Abbas put him in that grave(snake).. His wife told he .. Wheat with barley vii) avoid from doubtful matters viii) dont buy and sale stolen goodsix)Dont delay in payment with out any reason Hadith..x) Sale of Mujazafatan (sale of goods without exact measure) Hadithxi) Avoiding from hordingxii) Be careful about Masnoon Duas at the time of entrance in the market. Marketing 1) Removing all traces of obscenity and promotional material(print or electronic)Obscenity is forbidden in Islam. Ayah (alNoor) . It may cover brochures and leaflets, calendars and diaries, newspapers ads and TV commercials etc.

2) Deceits and false promotion. ayah ( Hood), Ahadiths avoiding to project the image of your product/ services untruthfully. Practicing fair and transparent marketing and sales strategies that may not harm people.Imaging (false presentation of) a characteristic that does not exist, it is an unethical and unlawful act. Please ensure trustworthiness in the following. a) quality of product b) quality of service c) features/functions d) quality and quantity of ingredients e) quality of operation f) misleading packaging material etcAvoiding to convert wants into needs.Try to reduce marketing expenses as much as possible.Avoiding from Israaf and use marketing only for product introduction, in this way customer can buy the product as a ease way. Basic rules for the selection of product Product does not fall in the category of Haram. It must not be harmful for the human being.It must not be leaded to any traces of obscenity.It must not be made for pomp and show only.It must be covered all types of social and individual public rights. Four steps for the use of product. Essential needs Comforts BeautificationPomp and show Explanation: The last one(pomp and show) is not permissible/Haram.

Rules for the earning of profit.To earn Profit by trading is permissible.There are some basic rules (ethics) that must not be ignored as Justice(Adal), Honesty and transparency, Carefulness and Cooperation, wellbeing of the human beings and to serve them.Three types of profit. i) permissible ii) not permissible iii) different opinion among the jurist..

There is not exact limit to earn the profit, it may be different on the basis of place, time, supply and demand factors.(OIC) Hadith. i) Hazrat Uorwa (R.A) earn double profit by sale goat ii) Hazrat hakim bin Hizam also.. iii) Hazrat Zubair bin Awam (R.A) bought a land in koufa170,000it is sold..1600,000 .. 900% profit. Yes, it is persuaded by Shariah to earn less (reasonable) profit and make easiness/ leniency for the customer.Explanation: In particular circumstances government can issue its specific rate schedule to save the social rights of the public. Fundamentals for the Halal profits Avoiding from the RibaAvoiding from the element of hording.Avoiding from the Ghaban e Kaseer (a lot of difference from the market price) Khayar e Shart can be used to avoid the fraud. Hadirh e khayar.Avoiding from the deceits and false swearing Show the market price for the customer

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