Think of summarizing all the commerce related prohibitions in Islam into minimum keywords, what would they be?
dishonesty?
injustice?
monopolies?
greed?
But how do you define these terms in measurable criteria? Can we distill them under more-objectively defined practices so they cannot be applied arbitrarily or subjectively?
That’s one question that puzzled scholars of the High Middle Ages, i.e., 12th-14th centuries. This was the time of crusades, when Muslims were on a downhill trajectory — albeit not in Spain — whereas Europe was witnessing high population growth as well as economic, cultural, and political advancements. Against this backdrop, it made sense for them to explore the rationale behind Islamic commercial regulations.
And they did.
Here’s a brief of what each of them found.
Ibn Rushd, the grandson (d. 1198) a.k.a Averroes
boiled it all down to FOUR prohibited elements:
1. merchandise being haram e.g. pork.
2. ribā (usually translated as ‘usury’ or ‘interest’ but much broader)
3. gharar (translated as ‘speculation’ or ‘excessive uncertainty’ but is a technical term with well-defined parameters)
4. conditions stipulating ribā and/or gharar.
Ibn al-Arabi (d. 1240 C.E.):
enumerated fifty-six prohibited sales mentioned in hadith and concluded that the rationale behind them all are three: ribā, bāṭil (unfair) and/or gharar. Since gharar is prohibited because of being bāṭil, this leaves us with only two reasons, ribā and bāṭil.
Ibn Qayyim (d. 1350 C.E.)
concludes that the most fundamental principle to uphold in all contracts is fairness (ʿadl). He then explains how all prohibited sales fall under either ribā or maysir (gamble).
Ibn Taymiyya (d. 1328 C.E.)
reiterates the same as Ibn Qayyim. ribā and maysir.
Conclusion?
If we were to look at principles — and not at tangible or specific elements such as merchandise being haram or the seller being insane etc —, the two foundational prohibitions upon which the entire building of Islamic commercial regulations stands are interest (ribā) and excessive uncertainty (gharar).
So what?
So we need to work on eliminating these elements from our system. Unfortunately, with the fall of the Bretton Woods in the early 1970s and the unleashed mammoth of financialization that followed, the same two elements have become the primary mechanisms on which the modern financial industry operates.
But how can we change the system? it’s rigged from the start.
We can. By learning, discussing n spreading awareness. By introducing incremental changes in our thinking and actions. Starting with ourselves, our families and our communities. By joining forces with ppl who’re sounding the alarm n working to expose the dangers of interest n speculation. You can find them easily, in the library, on linkedin, x and book clubs, etc. Follow them. Support them.
Final thought. and perhaps the most important one. The 2 evils of riba (interest) and maysir (gambling) in all its manifestations are not Muslim problems, but everybody’s problems. Economic problems facing humanity at large. And many non-economic problems can also be traced back to them. So combating them is goal worth living for. And it all starts with a tiny step:
Sincere intention.
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Refs:
- Ibn Rushd, Abu al-Walid. Bidāyat Al-Mujtahid w Nihāyat al-Muqtaṣid. 4 vols. Dar al-Hadith, Cairo, 2004. 3/145.
- Ibn Qayyim. Iʿlām Al-Muwaqqiʿīn ʿan Rabb al-ʿĀlamīn. Dar Ibn Al-Jawzi, 2002. 3/170.
