Islamic Finance – it’s been evolving very rapidly into the finance world, Alhamdulillah. Scholars and professionals are pushing this to the forefront and in the past 1-2 decades it has exploded to great heights. It’s also an area that the average Muslim knows very little about, mainly due to the lack of education/knowledge. Some common questions are: Why is riba/interest/usury prohibited in Islam and the other Abrahamic faiths? What makes Islamic finance different than conventional finance?
I have been in the finance industry since 2002 and in Islamic Finance since 2006. At first I also had the same questions and just couldn’t get my head wrapped around it – especially since I was indulged in the “conventional interest” finance way of things. However I knew our mighty Creator – ALLAH SWT – prohibits certain actions/dealings, etc. for very particular reasons.
Scholars say that a Muslim/person involved in riba/interest/usury commits the second most severe sin in Islam. ALLAH SWT and his messenger have condemned the use of riba/interest/usury.
So I’ll leave you with these few thoughts and questions to ponder over. I hope to continue (by the will of ALLAH SWT) to expound on this very important subject in Islam in the light of the Noble Quran and the Sunnah of our beloved Messenger Prophet Muhammad SAW.
Amer Gohar is an Area Manager for a prominent Islamic Bank in the USA and will be writing about the various aspects of Islamic Finance. Readers may post their queries as comments.