Islam in Business Essay Example | Topics and Well Written Essays - 3000 words

Islam in Business - Essay Example Fiqh muamalt is the study of financial and economic transactions from an Islamic outlook which is a branch of Islamic jurisprudence that is related with commerce and residual economic activities. For Islamic economic concepts, Arabic phrases are employed and shariah compliant financial products are very popular in the Islamic business circle. Shariah offers guiding norms for day-to-day living for a Muslim but following the same is a matter of belief and conscience and not of enforcement by governments. In the majority of the Islamic nations, Islamic banking is only a matter of preference and the only Muslim country in the World, i.e. Iran has made rules that all banks must adhere with fiqh muamalt under Usury Free Banking Law that was introduced in 1983. Fatwa refers to the rulings given by Shariah scholars and these are given through reasoning by scholars and endeavoring to apply fiqh to present financial and economic transactions and this process is known as ijtihad and in real pra ctice, this needs interpretation of contractual deeds concerning financial transactions and economic activities and making sure that it is unfailing with shariah. (Wilson 177). This research essay dwells into how Islamic practices apply in business, economics and banking (commercialism, profiteering, loans & interest, partnerships, etc) and how Islam dictates one conducts oneself in business in a detailed manner. Islam and Business Muslims are permitted to engross in trade and business as long as it is lawful and not detrimental to either society or the economy. Islam also permits to acquire wealth through business and however, a Muslim should not have any pride in his wealth. Further, in Islam, greed and miserliness are regarded as sins. A Muslim is considered to be only a temporary guardian of any wealth that he acquires as all wealth is the belongings of Allah. Islam expects that business is run on the moral principle, and it shuns fraud, dishonesty, misrepresentation and deceit in business. Dealing in illegal goods (haram) is prohibited in Islam. Islam also prohibits lotteries. Gambling and business linked with distribution and sale of alcohol. The following are some of the prohibited business activities under Islam. Price manipulation Price gouging and Hoarding by artificially reducing supply of products, especially food products. Government price control initiatives except in some unavoidable scenarios. Interference in the free markets Buying stolen property Cultivating plants like hashish and poppy and raising pigs. Business profits that are generated through halal (legal) business activities are permitted and not any haram (illegal) business activities. A Muslim is needed to respect his business debts. (Khan 1999). The fundamental principle is that Muslims are permitted to purchase whatever he needs like products that Allah has allowed from both Muslims and kaafirs. It is to be noted that Allah himself purchased products from the Jews. However, if a Mu slim avoids purchasing goods from another Muslim for no good reason like bad products, high prices or deceit goods , then that will be considered as harram. Doing business with Kaffirs mean reducing business with the Muslim and thereby obstructing Muslims to sell their products or to make the success in their business efforts. (Abdul -Rahman 7). The one who proscribes the goods of the Kuffaar mean that they are waging an endless war with the Islam, intending thereby to manifest the truth