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(In!the!Name!of!Allaah,!the!Most!Beneficent,!and!the!Most!Merciful)!

! If!you!notice!any!mistakes!in!these!notes!then!inshallaah!tell!me!off!and!give!me! naseeha!via!email!at:!mohammednajmul@gmail.com!! ! Class:!The!Financial!Times;!Your!dos!and!don’ts!in!finance!from!an!Islamic! perspective! Delivered!by:!Sheikh!Haitham!al<Haddad!&!Ustadh!Tarek!el!Dilwany! Date!&!Time:!!Saturday!28th!&!Sunday!29th!May!2011!9am!<!7:00pm!(both!days)! Venue:!University!of!East!London,!West!Building! Organised!by:!Sabeel! Contents!! 1.0!Introduction! 2.0!Transactions!in!Islam! 3.!0!Sale!Contracts! 4.!0!Riba! 5.0!Gharar! 6.0!Conclusion! ! !! ! ! ! ! ! ! ! ! !

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! 1.1!Introduction!&!aims!of!the!course:! ! • Make!it!easy!to!understand!Islamic!finance!and!show!it!is!not!difficult,!and! in!reality!it!is!very!easy.! ! • One!of!the!biggest!problems!in!relation!to!courses!on!Islamic!finance!is! the!fact!they!start!small,!explaining!concepts,!and!then!when!we!onto!the! product!itself,!we!forget!about!the!consequences!of!these!concepts.! • Islamic!finance!tends!to!be!studied!in!isolation!away!from!Fiqh!(Islamic! jurisprudence)!in!reality;!you!have!to!have!a!solid!background!in! jurisprudence!when!studying!Islamic!Finance.! ! • Islamic!Finance!is!on!a!micro!level;!it!deals!with!specific!elements!not! overarching!features.!! ! • Islamic!Economics!is!on!a!macro!level,!it!more!holistic!and!encompassing.! ! • Thus,!in!simple!terms!finance!=!micro,!economics!=!macro.!! ! • The!Economy!is!the!overall!picture!of!ins!and!outs.!! ! • Islamic!finance,!gives!us!the!tools/products,!to!achieve!balance!for! wellbeing!of!society.!!! ! • When!we!talk!about!Economics,!we!have!to!consider!other!elements!e.g.! politics!etc.,!that!interfere!with!it.! ! • People!tend!to!mix!Fiqh!of!transactions!with!Islamic!finance.!Fiqh!of! transactions!gives!basic!elements!of!the!do’s!and!don’ts!in!Islamic!finance.!! ! • We!use!the!rules!from!Fiqh!(Islamic!jurisprudence)!to!build!products.! ! • Islamic!finance!is!NOT!everything.!We!have!to!understand!STRUCTURE! before!studying!it.!STRUCTURE!in!terms!of!what!are!we!going!to!study.! By!this,!we!mean!we!need!to!look!at!the!overall!picture!before!going!into! the!detail,!to!help!understand!how!everything!is!considered!on!a!holistic! level.!! ! • Basic!definitions>!FINANCE:!I!give!you!something,!you!give!me!something! in!return,!and!this!is!A!FORM!OF!TRANSACTION.!Transaction!can!take! many!forms.!EXCHANGE!is!the!core!concept!we!focus!on.!This!exchange! can!lead!to!consequences!or!have!different!forms.!! ! ! ! ! !

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! TYPES!OF!EXCHANGE!e.g.!rent!a!house!in!exchange!for!money,!or! weapons!to!Iraq!for!taking!Oil!(not!always!ethical!exchanges).!These!are! bilateral!exchanges,!two!parties,!and!direct!exchange.!There!is!also! CHARITY!to!consider,!is!this!a!transaction?!Nothing!in!return.!Finally! LOANS!–!GUARANTEE,!how!is!this!defined?! EXCHANGING!may!sometimes!be!prohibited!–!why?!Because!the! transaction!was!not!just,!this!element!of!injustice!is!prohibited!in! transactions.!Riba!is!prohibited!as!transaction!related!to!it!leads!to! injustice.!! IMPORTANT:!If!we!understand!the!following!two!concepts,!we!will! understand!Islamic!finance.!1)!What!constitutes!Riba?!2)!What!constitutes! injustice?! MAIN!THING:!Exchange!–!what!make!a!legitimate!exchange?!Need!to! understand!this!and!identify!Riba!and!injustice.!

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! • ! • ! 1.2!OverXriding!aims!of!Islamic!Economics! ! To!reach!inner!circle!of!Fiqh!of!transactions,!we!have!to!go!via!Islamic!Economics! and!Islamic!Finance.! ! • The!CENTRAL!PRINCIPLE!is!that!THIS!LIFE!IS!A!TEST.!We!may!take!this! point!for!granted.!However,!it!is!very!important!to!REMEMBER!this!point! when!studying!this!topic.!We!must!remember!that!this!life!is!not!lasting! forever.!Properties!around!us!may!be!part!of!this!test.!If!we!do!not!live!as! rich!individuals,!this!may!also!be!part!of!that!test,!and!similarly,!if!a! person!is!poor!it!doesn’t!mean!Islamic!finance!doesn’t!work.!It!is!not!a! failure!if!we!are!not!rich.! ! • Aim!of!the!economy:!Balance!between!in/out!to!improve!wellbeing!in! society>>>If!it!improves!wellbeing,!it!doesn’t!bring!peace!and!happiness.! Therefore,!it!doesn’t!enable!us!to!achieve!everything!as!a!human!being.! Thus,!the!economy!is!not!the!SOLE!factor!as!it!improves!wellbeing!but! fails!to!make!one!happy!or!peaceful!–!It!has!failed.!Thus,!we!should!know! our!ultimate!aim!is!NOT!to!improve!wellbeing!but!to!have!tranquility!and! peace!>!materialistic!wellbeing!is!just!an!element!NOT!a!full!factor.!For! example,!you!can!be!very!rich!but!unhappy!and!poor!but!happy.! Therefore,!it’s!not!only!about!material!wellbeing.!! ! • Also,!if!we!think!of!products!in!isolation!e.g.!insurance!in!isolation!it!is! very!easy!to!fall!into!a!trap.!An!analogy!is!that!to!hygiene,!e.g.!you!open! doors!with!tissue!due!to!the!possibility!of!urine!being!on!it.!In!isolation! this!has!reason!behind!it.!However,!on!a!macro!level!this!is!unfeasible,! where!do!you!draw!the!line?!Don’t!shake!hands?!Similarly,!with!! !

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! Insurance,!where!do!you!stop?!Where’s!the!line?!Insuring!everything,! even!insuring!pets!! ! ! • • ! ! ! • 8:28;!Fitnah!–!trial!–!test!–!real!reward!is!with!Allaah!s.w.t! ! BREAK! ! Discussion!Point:!Is!pursing!to!be!rich!permissible?! ! • Depends!on!intention:!1)!To!please!Allaah!s.w.t!more!e.g.!to!give!more! sadaqah!etc.!2)!Give!sadaqah!so!it’ll!protect!you!against!the!fire!(action! intercede!on!Day!of!Judgment).!These!things/intention!for!this!is! praiseworthy.!! ! • What!about!rich,!just!to!be!rich?!Permissible!but!remember!you!will!be! questioned!about!it.! ! • Does!this!mean!we!live!as!poor!people?!No!–!fulfill!basic!needs!and!satisfy! yourself!not!to!look!at!what!others!have.!Use!money!and!wealth!to! establish!deen!of!Allaah!s.w.t.! ! • The!credit!crunch!arose!as!a!result!of!greed.!Prophet!s.a.s!said,!“This!life!is! sweet!and!greed”.!You!taste!its!sweetness,!like!it!and!keep!wanting!more.! E.g.!expensive!watch!–!expensive!car!–!expensive!hotels!etc.!Everyone! likes!these!things;!it’s!in!human!nature.!One!thing!leads!to!another!–!never! stops.!Have!£1!million,!and!want!another!£1!million.! ! • Work!for!the!right!intention.!Spend!time!in!maximizing!return!in!the! hereafter.!!Wealth!–!establish!the!deen!of!Allaah!sw.t!in!yourself!and!in! others.!If!you!follow!tis!concept!you!will!not!be!greedy.!There!is!no!point! where!greed!stops!it!continues!to!expand.!It!can!lead!us!to!not!be!satisfied! with!halal!means,!and!then!lead!to!haram.!Muslims,!don’t!jump!into!haram! straight!away,!instead,!he’ll!start!jumping!into!doubtful!matters!and!then! do!some!small!haram.!! ! ! • • The!problem!is!there!is!no!contentment!–!There!is!no!belief!in!Allaah!s.w.t! The!SECOND!PRINCIPLE!after!knowing!this!life!is!a!test,!is!to!believe!that! Islam!provides!us!with!ALL!the!necessary!tools!to!pass!the!test.!If!it! doesn’t!Islam!fails!–!This!is!impossible.!Everything!around!us!is!a!test.!! 57:7;!Trustees!NOT!owners! 6:165;!To!see!how!we!spend!it!–!money!we!have!is!just!a!loan!from!Allaah! s.w.t!and!it!is!given!and!taken.!

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! 1.3!The!Nature!of!Islamic!Finance! ! • It!is!impossible!to!implement!part!of!the!Islamic!system!fully!in!isolation! from!other!parts.!This!creates!problems.!! ! • Take!hudood!(punishment),!many!people!criticize!it,!because!they!talk! about!it!in!a!western!context,!and!don’t!understand!it.!It!needs!to!be!put!in! its!right!context!e.g.!some!may!say!in!relation!to!the!issue!of!capital! punishment!that!capital!punishment!does!not!work!in!America!etc.! However,!it’s!not!just!about!capital!punishment!it’s!about!the!ethical,! social!and!ritual!elements!too.!These!all!need!to!be!establish,!all!are! needed!for!it!to!work!to!its!maximum!potential.!! ! • ANALOGY:!Car!–!engine!put!in!its!places!with!all!other!parts!of!the!car! works,!however,!in!isolation!it!doesn’t,!but!we!do!not!dispute!that!the! engine!does!not!work,!only!that!it!works!in!a!certain!context.!Similarly,! one!piece!of!a!mosaic!may!look!ugly,!just!a!piece!of!broken!glass,!but!when! it’s!put!together,!it!looks!beautiful.!! ! • Deferred!payments,!is!one!of!the!biggest!problems!in!finance!–!mortgage! e.g.!subprime!in!America.!! ! • What!is!the!solution?!Does!Islam!provide!a!solution?!–!Implement!it!from! the!beginning;!don’t!just!implement!law!when!a!law!is!broken.!! ! • Concerning!deferred!payments!–!surah!baqarah:!280!–!Allow!more!time! until!they!can!pay.!However,!the!banks!will!not!allow!more!time!or!wipe!it! out!–!bank!is!here!for!business.!Who!says!Islamic!banks!should!not!give! charity?!Islamic!banks!not!to!make!business.! ! • Some!may!say!if!this!is!implemented,!everyone!will!ask!for!longer!or!a! wipe!out.!This!is!why!it!is!imperative!to!establish!the!right!social!and! ethical!framework.!If!this!is!not!there,!then!this!solution!will!not!work!–! we!don’t!have!the!right!context.!People!who!don’t!fear!Allaah!s.w.t!and!the! Day!of!Judgment!will!abuse!it.!! ! • We!cannot!enjoy!Islamic!finance!in!a!non<Islamic!context.!We!might!enjoy! a!little!bit,!but!not!feasible!as!a!whole.!Cannot!function!fully!in!a!non< Islamic!context.!! ! • Some!people!assume!that!Islamic!finance!is!only!concerned!with!the! prohibition!of!Riba!(interest).!However,!this!is!wrong,!Riba!is!just!one! element.!! ! ! ! !

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Islamic!finance!includes!both!proactive!measures!and!preventative! measures.! Proactive!in!regards!to!Zakat!(charity!which!is!compulsory)!–!some!may! say!how!is!it!charity!if!it!is!compulsory.!It!is!such!because!we!must!look! out!for!others.!! In!Surah!Baqarah!261<274,!Allaah!s.w.t!speaks!about!charity!before!he! speaks!about!the!prohibition!of!Riba.!After!some!ayat,!there!is!mention!of! Riba!and!its!prohibition;!however,!the!ayats!on!charity!are!longer.!What! does!this!mean?!In!simple!terms,!if!charity!were!done!properly,!Riba! would!not!exist.!The!fundamental!element!is!to!establish!charity!this!is! the!foundation!and!cornerstone.!! The!prohibition!of!Riba!came!in!three!stages!1)!Riba!is!said!to!be! considered!as!bad!2)!Avoid!multiple!Riba!3)!Full!prohibition!of!Riba.!! There!are!different!types!of!charity.!Exploration!of!the!waqf!(trusts)! A!waqf!is!a!perpetual!endowment,!set!up!via!donations!e.g.!buy!a!building! that!can!neither!be!sold!or!bought!but!is!used!for!a!specific!purpose.!An! example!is!of!the!waqf’s!that!existed!in!Saudi!for!the!people!that!would! perform!umrah.!There!would!be!hotels!designated!for!specific! nationalities!and!they!had!access!to!the!hotel!for!free.! Many!Islamic!establishments!survive!via!waqf’s,!such!as!Al<Azhar!which! was!established!via!a!waqf,!which!stipulated!so!many!things!from!salary,! clothes!etc.!all!the!way!to!how!many!sweets!the!teachers!get.!It!is!amazing! to!see!the!waqf’s!in!some!countries!where!there!is!a!waqf!for!everything.! There!should!be!more!waqf’s!to!strengthen!the!Islamic!community!and! look!after!the!poor.!If!a!person!is!looked!after!or!taken!into!a!waqf,!is!it! going!to!make!him!beg!or!borrow!money!etc.,!no,!because!the!waqf! provides!many!things.!! In!relation!to!the!preventative!measures,!Riba!is!not!the!only!one,!there! are!others!such!as,!cheating!legal,!business!and!smart!cheating,!monopoly,! gambling,!ambiguity!and!reduce!debits.!Thus,!these!are!the!things!that! have!preventative!elements!attached!to!them.!! BREAK! ! ! ! ! ! ! ! !

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2.0!Transactions! ! • Aqd!–!contract:!Binding!agreements,!of!two!or!more!parties.!There!are! also!financial!and!non<financial!transactions!e.g.!marriage,!treaties,!and! employment.!Contemporary!scholars!considered!the!legal!theory! regarding!aqd!in!Islam!in!relation!to!a!holistic!viewpoint.! ! • Promise=!different!–!why?!1)!It!can!be!only!one!way,!in!that!you!give!but! don’t!get!anything!back.!This!is!the!main!difference.!It!also!isn’t!legally! binding.! ! • Breaking!a!promise<!It!is!not!legally!binding.!However,!it!is!not!allowed!to! break!it!in!the!shariah,!doing!so!is!haram.!We!need!to!consider!the!ethical! viewpoint,!as!if!we!establish!then!breaking!a!promise!is!morally!incorrect! too.!! ! • A!number!of!definitions!arise!from!the!different!types!of!exchanges.!! ! 2.1.3X2.1.4!Wealth!and!property! ! • We!must!note!that!all!property!in!the!world!is!merely!a!loan!from!Allaah! s.w.t! ! • Mal!=!wealth! ! • Wealth!in!Islam:!It!is!created!by!Allaah!s.w.t;!it!is!the!property!of!Allaah! s.w.t.!Humans!have!a!right!to!property!as!delegated!by!Allaah!s.w.t.! ! • Now!we!will!consider!some!ideologies!that!consider!wealth.!Communism! and!Capitalism.!! ! • Communism:!Justice!is!equality.!For!justice,!everyone!has!to!have!equal! wages.!The!wage!should!not!be!equal!to!the!type!of!occupation,!but!based! on!need!NOT!effort.!However,!in!such!a!system,!there!is!no!incentive!to! put!in!effort,!why!put!in!more!if!sweeper!gets!same!as!doctor!–!doesn’t! make!sense.! ! • Capitalism:!Individuals!free!to!make!as!much!money!as!they!want.!They! have!the!freedom,!to!earn!as!much!as!possible.!! ! • Islam!has!the!best!solution…obviously.!! ! • How!does!Islam!have!the!best!solution?!It!allows!freedom,!without! infringing!on!others!(freedom!limited),!and!it!is!offset!via! responsibilities>>charity!&!brotherhood.! ! ! !

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Classification!of!properties! ! • Classification!of!fungibility!–!All!are!the!same!–!homogeneous.! ! • Classification!of!non<fungible!–!Heterogeneous.! ! • Fungible:!Example;!two!of!the!exact!same!cups.!I!give!you!one,!and!then! we!put!it!besides!another!cup!–!exactly!the!same.!We!cannot!tell!which! cup!is!which.!Similarly,!with!£10,!you!can!give!me!£10!back,!but!it!may!not! be!the!exact,!very!same!£10!note!I!gave!you.! ! • Non<fungible:!Example;!You!take!my!car,!is!it!acceptable!to!take!my!car! and!return!to!me!any!car?!No,!because!I!would!be!able!to!tell,!my!care!is! unique,!thus!it!is!non<fungible.!! ! • CONSIDER:!If!the!person!is!a!rich!person,!and!has!£100,000.!However,!he! steals!£1,000!wanting!to!buy!a!mac.!He!comes!to!PC!World!to!buy!a!mac,! however!as!a!seller,!I!can’t!differentiate!between!the!halal/haram!money,! thus!you!can!take!money!as!a!seller.!However,!when!there!is!no!doubt! some!of!the!money!he!gives!you!is!haram!–!you!cannot!accept/take!this.!! ! • Non<fungible!items!–!Haraam!travels!with!the!item.!For!example,!a!stolen! laptop!has!haram!attached!to!the!actual!laptop!itself.!Therefore,!if!we! know,!it!is!stolen,!we!cannot!take!it,!even!if!it!is!taken!in!a!halal!way!via! someone!exchanging!it!with!us!and!we!were!not!the!ones!who!stole!it,! because!the!item!still!belongs!to!the!owner.!! ! • Fungible!items!<!£100!taken!in!haram!way!–!liable.!Haraam!is!linked!to!the! person,!unless!his!liability!is!not!sufficient!to!cover!costs.!Haraam!is! attached!to!the!extra!money!he!cannot!cover!from!his!own!money!e.g.!he! stole!£100!but!only!has!£70!of!his!own!money,!the!haram!will!be!attached! to!£30!because,!this!amount!greater!than!what!he!has!the!ability!to!cover! from!his!£70.!! ! • The!fungible!can!be!Riba!based;!the!non<fungible!is!non<Riba!based.!! ! 2.2!Classification!of!transactions! ! • Bilateral!–!sales!of!a!good!in!return!of!money.!E.g.!like!everyday!exchange! of!money!for!a!commodity.! ! • Unilateral!–!One<way!transaction.!E.g.!gift,!waqf!or!sadaqah! ! ! ! ! ! !

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! 2.2.2!Validity!of!financial!transactions! ! • Invalid!contracts,!have!no!legal!weight!and!therefore!have!no!legal! consequences.!! ! • Fasid!and!Batil!contracts.!Hanafis!adopt!Fasid!contracts.! ! • Fasid:!Contract!carried!out!incorrectly.!What!should!be!done?!In!a!fasid! contract,!they!say!just!CHANGE!IT!instead!of!breaking!it!altogether.! Example:!Sheikh!Haitham!gives!Mohammed!Najmul!£10!but!Mohammed! Najmul!gives!Sheikh!Haitham!£13!back.!The!Sheikh,!would!look!at!this! and!say!oh!no,!this!is!wrong!brother;!you!have!given!me!£3!more.! According!to!a!fasid!contract,!rather!than!break!the!contract,!Sheikh! Haitham!will!merely!give!me!back!the!£3!and!finished.!! ! • Batil:!A!Batil!contract!states!when!a!contract!is!carried!out!incorrectly!as! in!the!case!of!above!when!Sheikh!Haitham!gave!me!£10!and!I!gave!him! £13!back,!according!to!a!batil!contract!the!whole!contract!is!invalid.!! ! 2.2.3!According!to!purpose! ! • Many!purposes!for!transactions,!five!categories!are.!1)!Ownership!e.g.! renting!your!hose!etc.!2)!Partnership!3)!Security!4)!Agency!and!Trust!5)! Others!–!Brief!point.! ! BREAK! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !

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3.0!Sales!Contracts! ! • Any!contract!is!valid,!unless!there!is!a!problem!with!it.!! ! • Principle:!Everything!is!halal!unless!otherwise!stipulated!in!dunya! matters!–!why?!Allows!production!of!new!things.! ! • However,!in!acts!of!ibaadah!every!action!is!not!allowed!unless!stated!as! halal!in!shariah!–!not!allowed!to!invent!things.! ! • There!are!four!conditions!a!financial!transaction!must!satisfy! ! • 1)!Conditions!of!conclusion!2)!conditions!of!validity!3)!conditions!of! execution!4)!conditions!of!bindings.! ! • The!main!type!is!validity.!These!conditions!are!there!for!justice!and! remove!possibility!of!disputes.!! ! • Elements!of!a!transaction:!Consideration!(price),!commodity!(product),! parties!(people!who!are!buying/selling),!exchange,!and!finally!acceptance! and!agreement.!! ! • There!are!THREE!PILLARS!of!contracts.!1)!Counter!parties,!2)!subject! matter!3)!The!form/format! ! • Counter!parties:!Have!to!be!satisfied!it!was!carried!out!with!full!consent.! The!contractor!should!be!sane,!above!a!certain!age,!and!have!free!will.! ! • Subject!matter:!Ownership!has!to!be!made!crystal!clear.!Should!be!of!halal! benefit,!owned!by!the!counter!party,!can!be!delivered!on!time.! ! • Form/format:!Format!of!payment/delivery!etc.!Unity!f!trading!of!sale! session,!deferment!in!delivery!and!permanent!exchange!of!possessions.!! ! Riba! ! • Riba!is!based!on!what!you!exchange!–!the!value!of!the!counter!value!–! items!you!exchange!and!you!get!more!back,!this!is!Riba.!! ! • Riba!is!very!connected!to!type!of!commodity!and!type/way!of!exchange.! ! • Which!commodities?!Certain!items!(will!see!a!little!bit!later).!! ! • The!type!of!commodity!(product/item)!and!the!way/type!of!exchange!are! both!elements!that!interfere!or!both!constitute!in!Riba.!The!Riba!is! connected!to!counter!values.!! !

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4.0!Riba! ! 4.1!The!prohibition!of!Riba! ! • The!prohibition!of!Riba!came!in!three!stages.!1)!Discourages!Riba!2)! Prohibit!multiple!Riba!3)!clear!prohibition!of!Riba! ! • They!were!so!involved,!they!in!it,!it!talk!time!to!come!out.!! ! • Riba!is!a!very!grave!sin.!Some!people!say!it!is!a!“necessity”.!!However,!we! ask!them!who!permitted!zina.!! ! • According!Imam!Malik;!Riba!is!worse!than!alcohol.!! ! • Some!say!Riba!occurs!as!a!result!of!injustice,!and!that!without!injustice! Riba!would!not!exist.!! ! • There!is!nothing!that!is!prohibited!for!us!in!Islam!that!doesn’t!have! benefits!for!us!in!this!world!–!dunya.!Thus!we!can!say!we!don’t!avoid!Riba! solely!for!the!hereafter,!but!also!because!of!its!benefits!in!this!world!too.! ! • Riba!is!a!counter!productive!financial!activity.!! ! END!OF!DAY!ONE!OF!SEMINAR! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !

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DAY!TWO!OF!SEMINAR! ! 4.2!Definition!of!Riba! !! • Technical!side!–!focusing!on!Riba.!! ! • The!most!crucial!thing!to!keep!in!mind!when!we!study!finance!is!that! there!are!two!main!areas!that!are!problematic.!! ! • These!two!problems!are!1)!Riba!and!2)!gharar!–!ambiguity.! ! • If!these!two!problems!are!avoided,!then!circa!80%!of!what!we!do!in! finance!is!on!the!safe!side.! ! • Recapping!on!what!we!have!previously!said,!finance!is!based!on! transactions,!which!is!exchange,!thus,!why!we!covered!exchange!in!detail.!! ! • We!have!established!a!flow,!linking!all!the!different!elements!together.!! ! • We!started!by!showing!the!foundation!of!Islamic!Economy,!before!moving! into!Islamic!finance!and!striking!the!heart!of!it,!which!is!exchange.!! ! • We!didn’t!dwell!on!sales,!as!this!is!a!vast!subject,!however,!we!discussed! the!key!points!in!relation!to!it.!! ! • We!are!now!moving!to!the!main!alarming!area,!which!is!concerned!with! Riba.! ! • Thus,!it!is!important!to!always!remember!this!flow!in!what!we!have! studied!and!keep!it!mind!all!the!other!elements!and!understand!how!they! are!all!connected.!! ! • We!revisit!the!definition!of!a!contract!here:!“Binding!agreement!between! two!or!more!parties!to!exchange”.!! • There!are!three!pillars!1)!two!parties!2)!counter!values!3)!Type!of! exchange.! ! • Type!of!exchange!should!be!permanent!and!NOT!temporary.! ! • At!times!it!can!be!difficult!to!see!who!is!the!buyer!and!seller!e.g.!exchange! £50!for!$100,!who!is!buyer/seller!–!doesn’t!matter!in!this!case!if!we!can’t! tell,!as!to!both!they!are!the!buyer,!and!according!to!both!the!other!is!the! seller.! ! • A!promise!to!sell!has!the!ability!to!be!void.!! ! !

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! • There!has!to!be!a!mutual!agreement!between!buyer!and!seller!that!if!the! seller!fails!to!deliver,!we!will!return!back!to!a!state!as!if!the!contract!did! not!occur!e.g.!I!will!get!my!money!back.! ! You!can!pay!and!then!have!the!good!delivered!or!visa!versa,!it!doesn’t! matter!as!long!as!the!possibility!of!dispute!isn’t!there!via!this!mutual! agreement!that!if!neither!is!received!then!we!go!back!to!our!initial!state.!

! RIBA% % • Riba!is!usury/interest.! ! • In!Christianity,!they!differentiated!between!interest!and!usury.!They! differentiated!it!by!considering!usury!as!unethical!and!interest!as!ethical.! ! • They!considered!usury!as!excessive!amount!of!interest.!However,!interest! as!small!amount.! ! • This!is!still!the!case!today,!where!excessive!interest!is!considered!to!be! usury!in!the!financial!world!(a!former!investment!banker!in!the!audience! confirmed!this!point)! ! • Two!main!elements!to!consider!1)!Nature!of!counter!values/objects!2)! The!way!you!exchange!them!–!These!are!the!two!things!that!define!Riba.! ! • Everything!in!the!world!is!either!a!Riba<based!item!or!a!non<Riba!based! item.!! ! • A!Riba!based!item!is!one!in!which!the!exchange!of!it,!might!be!subject!to! Riba.!This!is!known!as!a!ribawi!item.! ! • We!also!have!non<ribawi!items,!which!are!Riba<free.! ! • Ribawi!items!are!limited.!! ! • The!main!two<ribawi!items!are!Gold!&!Silver.!! ! • Four!other!ribawi!commodities!in!the!world!are!dates,!salt,!barley!and! wheat.!! ! • Some!may!ask!why!these!four,!are!ribawi.!There!is!a!discussion!around!it! –!Is!it!because!it’s!considered!as!staple!foods?!–!This!is!what! contemporary!western!scholars!say.!Are!other!foods!staple!foods?!Rice?! Some!say!no!country!in!the!world!can!live!without!at!least!one!of!them.! ! ! !

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Ibnul!Qayyim!rahimullah!said:!The!main!food!for!cattle!is!barley.! Whatever,!the!real!reason!–!There!must!be!wisdom!as!the!shariah!has! specified!it.!! Thus,!to!recap!the!ribawi!items!are!gold,!silver,!dates,!salt,!wheat!and! barley.!! Non<ribawi!items!are!everything!that!doesn’t!fall!under!the!category!of! ribawi!items.!E.g.!car,!sheep,!mobile!phones,!cars,!clothes!etc.! Can!ribawi!items!be!extended!to!other!items?!According!to!the!thahiri! (literal)!methodology!they!would!say,!“no,!it!cannot!be!extended”,! however,!the!sheikh!mentions!that!this!opinion!has!almost!become! completely!obsolete.!! The!majority!of!the!scholars!say!we!can!extend!these!ribawi!items!to! other!items.! According!to!the!thahiri!(literal)!methodology,!paper!money!is!not!ribawi! because!prophet!s.a.s!said!exchange!these!specific!things!–!prophet!s.a.s! said!“like!for!like,!hand!for!hand”,!thus!for!them!paper!money!is!not! ribawi.!! However,!this!view!has!almost!been!completely!abandoned.!! Why!did!the!prophet!s.a.s!stipulate!gold!and!silver!as!ribawi?!Because!it! was!the!medium!of!exchange!–!the!monetary!currency!at!that!time.!! Paper!money!today!is!equivalent!to!gold!and!silver!–!almost!all!the! scholars!have!adopted!this!opinion.!! What!about!cheques?!Cheques!are!also!considered!as!ribawi,!as!they!are!a! replacement!for!money!and!thus!like!gold!and!silver.! Paper!money!is!considered!to!be!gold/silver.!! Thus,!ribawi!items!can!be!extended!to!other!things!that!are!equivalent.!! It!doesn’t!matter,!who!you’re!giving!it!to,!what!matters!is!what!came!out! from!me!to!get!something!in!return.! If!you!give!money!IN!ORDER!to!get!anything!more,!that!is!RIBA.! ! !

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For!example,!if!you!transfer!money!to!another!country!and!don’t!pay!for! the!service!of!the!transfer,!that!is!Riba,!as!you!have!received!a!service!for! free!which!you!would!have!otherwise!had!to!pay,!so!this!is!an!addition!to! you!from!the!transaction,!which!constitutes!Riba.! ! Basic!rule:!Every!loan!that!brings!benefit!is!a!kind!of!Riba.! Some!may!say!that!quality!of!commodity!matters.!E.g.!I!want!to!buy!5kg!of! ajwa!dates!for!10kg!of!poor!quality!of!dates,!is!this!allowed?!I’m!giving! more!because!they’re!poor!quality.!In!short,!this!is!not!allowed.!! Prophet!s.a.s:!dates!for!dates!–!homogeneous,!equal!for!equal.!However,! whether!it’s!good!quality!or!bad!quality!not!included!in!discussion,!as!it! isn’t!mentioned!in!the!hadith.!This!applies!to!all!other!items.!! Say!I!want!to!exchange!an!old!gold!bracelet!for!a!new!gold!bracelet,!what! do!I!do?!I!have!two!options!1)!sell!old!one!for!cash!in!one!transaction!and! then!in!a!second!transaction!buy!the!new!bracelet!2)!Weigh!the!old!one! and!exchange!it!for!another!one!of!the!same!weight.! Money!for!money!=!problematic! Pay!money!>!get!a!product!and!money!=!RIBA! Pay!money>get!commodity!with!NO!money!=!NOT!RIBA! Pay!money>Get!some!money!back!with!no!commodity!–!NOT!RIBA! CASHBACK;!Example:!Buy!a!phone!–!pay!line!rental!and!get!cash!back! after!‘x’!months!–!Riba?!YES!why?!Because!commodity!and!money.! Solution!to!this!problem:!Deduct!this!cash!back!from!the!outset!of! contract!e.g.!say!cash!back!is!£80,!just!ask!to!pay!£220!with!no!cash!back! instead!of!£300!with!£80!cash!back.! See!Sheikh!Haitham’s!fatwa!on!cash!back! http://www.islamicawakening.com/viewarticle.php?articleID=1250! If!cash!back!is!on!the!spot!!Then!it!is!OK.! Same!ribawi!items!have!to!be!exchanged!like!for!like,!and!the!same!in! terms!of!equality!and!quantity.! Different!ribawi!items!–!dealings!done!on!the!spot.! Equality!in!non<ribawi!items!is!impossible.!There!is!no!reference!point.!!

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For!non<ribawi!items,!it!is!very!flexible!in!terms!of!amount!and!time.! (Bartering!exchange).! Double!deferment!(where!both!paying!and!receiving!product!is!delayed)! classically!speaking!is!not!allowed.! Don’t!think!of!it!literally!–!There!may!be!some!transactions!that!have!legal! consequences!e.g.!a!company!may!go!bust!and!then!cause!someone!not!to! want!to!buy!the!product!at!the!later!date>>consequences.! However,!a!promise!is!different,!it!has!no!consequences.!!When!scholars! said!double!deferment!was!not!allowed,!they!said!this!when!there!were! legal!consequences.!! Delays!–!pg.59.!! Pay!now!–!product!later/product!now!–!pay!later.!Can!this!be!done?! Yes!–!If!1)!delivered!on!time!2)!No!change!on!product!and!most!crucially! 3)!No!possibility!for!any!dispute!(This!is!the!key!element!to!keep!in!mind).! Allowed!to!give!one!and!defer!the!other!one!in!shariah!e.g.!pay!now!and! defer!delivery!of!product!or!get!product!and!defer!payment.!However,!the! conditions!of!the!sale!contract!have!to!be!met,!like!a!normal!sale! transaction.!!Sometimes,!more!conditions!may!have!to!be!specified!e.g.!in! the!case!of!dates!(fruit).!! Example;!To!do!a!transaction!of!dates!earlier!e.g.!pays!£200!and!gets!dates! a!month!later.!–!There!are!some!conditions;!such!as!specifying!qualities!of! the!commodity!we!are!going!to!receive!–!providing!there!is!no!possibility! of!dispute.!This!is!why!the!scholars!did!not!allow!deferment!for!dates! without!conditions!being!stipulated!as!dates!may!go!bad!etc.!! Thus,!when!there!is!a!deferment!in!a!transaction!you!must!consider!all!the! possibilities!of!disputes!and!specify!conditions!in!the!sales!contract!to! avoid!these!disputes.!! ! ! ! ! ! ! ! ! Bay!‘al!Salam/Bay!‘al!Salaf!was!a!contract!for!deferred!delivery!that!was! originally!sanctioned!during!the!time!of!the!Prophet!s.a.s,!to!facilitate!the! trading!activities!of!farmers!who!were!awaiting!the!harvest!of!crops.!In! more!modern!times!it!has!also!been!applied!to!the!production!of!raw! materials!and!fungible!goods!in!general.!! ! !

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Main!specifications!to!remove!dispute!were!to!specify!quantity!with! weight!and!volume!and!the!time!of!delivery.!! ! ! ! ! ! The!scholars!said!if!the!quality!can!be!a!source!of!dispute,!then!you!should! specify!the!quality.!! Most!contemporary!scholars!accepted!this!to!be!applied!to!other! commodities.!!! ! ! ! ! ! ! ! ! ! We!have!looked!at!the!delay!in!deferment!of!a!product.! ! ! ! ! ! We!will!now!examine!the!opposite!case!of!receiving!the!product!first!and! paying!later.!This!is!known!as!Al<Istisna’! ! ! ! ! ! ! The!conditions!for!this!are!the!following.!1)!Time!2)!Get!rid!of!ambiguity! 3)!where?!–!Specify!4)!Avoid!possibility!of!dispute.! ! ! ! ! Instalments!<!Bay!‘al!Taqsif.!<!Buy!now,!pay!later.!This!has!the!same! conditions!as!the!conditions!of!transactions!–!and!included!the!key!point! of!avoiding!possibility!of!dispute.!! ! ! ! ! ! ! ! ! Double!deferment!–!delay!both!paying!for!product!and!receiving!product.! Double!deferment!in!ribawi!for!ribawi!exchanging!of!products!is!NOT! allowed.! Double!deferment,!in!non<ribawi!for!non<ribawi!products.!If!it!is!a! promise,!with!no!legal!consequences,!it!is!just!a!promise,!then!it!is!OK!–! provided!there!are!no!legal!binding!consequences.!! However,!it!should!be!noted!it!is!a!sin!to!break!promises,!therefore!it!is! not!recommended!to!break!it.! However,!if!it!is!a!contract!of!double!deferment,!then!this!is!NOT!allowed,! why?!Because!the!value!can!change.!There!is!a!potential!for!dispute!etc.! Apple!may!crash!and!I!now!no!longer!want!to!buy!the!IPhone!etc.!Thus!it! is!NOT!allowed!to!defer!both.!! The!RIBA!MATRIX!

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The!exchange!for!ribawi!items!for!ribawi!items!has!to!be!done!on!the!spot.!! Sarf!–!Ribawi!for!ribawi!–!in!this!case,!monetary!ribawi!for!monetary! ribawi!usually.!This!transaction!must!be!done!on!the!spot!–!NO! DEFERMENT.!! ! ! ! ! ! ! ! ! ! However,!exchanging!gold!for!silver!does!not!have!to!be!equal!in!terms!of! the!quantities!of!counter!values!e.g.!like!for!like,!but!must!be!done!on!the! spot,!hand!to!hand.! !

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The!quantities!of!the!counter!values!MUST!be!equal!and!like!for!like,!when! exchanging!the!same!ribawi!items.!E.g.!exchanging!gold!for!gold!–!must!be! exactly!the!same!quantities!–!same!thing!for!silver,!wheat,!dates,!barley! and!salt.!In!all!these!cases,!for!ribawi!items!when!you!are!exchanging!the! same!ones!e.g.!salt!for!salt,!dates!for!dates!–!MUST!be!the!same!quantity. ! ! The!key!rule!to!not!here!is!that!whenever!you!exchange!a!ribawi!item!for! another!ribawi!item!it!must!be!done!on!the!spot!and!not!deferred!and!in! the!case!of!the!exchanging!the!same!ribawi!items!–!they!need!to!be!equal! in!value!! ! ! ! ! ! ! ! ! ! ! For!example,!exchanging!£100!for!$200!has!to!be!spontaneous,!there!and! then!on!the!spot,!not!delayed!! ! ! ! ! ! ! ! ! When!we!exchange!non<ribawi!items!for!non<ribawi!items!–!we!have! freedom!in!terms!of!time!and!also!exchanging!quantities.!! ! ! ! Ribawi!for!non<ribawi!comprises!of!all!types!of!normal!sales!contracts,! which!have!already!been!mentioned.!!

MONEY!CREATION! • • • Watch!this!video:!http://www.youtube.com/watch?v=qIxhsF6JLEA! ! ! Before,!people!would!exchange!gold.!! ! ! ! ! ! ! ! However,!instead!of!carrying!gold,!and!having!the!risk!of!losing!it,!they! would!deposit!the!gold!and!use!receipts!instead,!to!purchase!things.!! ! ! Goldsmiths!kept!gold!and!had!confidence!that!not!everyone!in!the!world! would!use!money!at!the!same!time.!For!example,!say!they!have!10kg!of! gold!in!total,!how!will!anybody!know!which!specific!gold!belongs!to!them! –!they!wont.!! ! ! ! ! ! ! ! ! ! ! ! Thus,!this!led!to!money!lending.!For!example,!they!lent!3kg!of!gold!out!of! 10kg,!based!on!the!fact!that!not!everybody!will!come!and!take!their! money.!Now,!those!who!borrowed!that!money!will!pay!interest!and!that! way!the!moneylenders!get!more!money!and!use!it!to!lend!more!money! out.! ! ! ! ! ! ! ! ! ! ! ! Therefore,!they!have!created!this!extra!money!e.g.!3kg!out!of!nothing.! ! ! ! The!scholars!have!found!it!difficult!to!define!what!the!money!in!the!bank! is.! ! Is!it!a!trust!or!a!loan?!

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If!it!is!a!trust!then!it!cannot!be!lent,!and!the!bank!is!just!a!trustee!and!they! cannot!lend!it.!! ! ! ! ! ! ! ! ! ! ! However!if!it!is!a!loan,!like!banks!today,!it!is!adopting!a!non<Islamic!idea. ! ! In!Islamic!Fiqh,!they!defined!it!as!a!loan!and!not!a!trust.! ! ! ! ! Sheikh!Haitham:!This!was!one!of!the!biggest!faults!of!Islamic!Fiqh;!they! should!never!have!defined!it!as!a!loan!! BREAK!

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5.0!–!Gharar!(Tarek!el!Dilwany)!! • • • Gharar!is!deception/ambiguity! ! ! ! ! ! ! ! ! The!consequences!of!these!things!are!hidden.! ! ! ! ! ! ! Ibn!Taymiyyah:!Gharar!occurs!when!there!is!a!risk!taking!and!a!devouring! of!property!from!one!party!to!another.!! ! ! ! ! ! ! ! Quran!–!prohibited!gharar!the!same!time!as!it!prohibited!alcohol.!! ! ! Gharar!occurs!in!a!zero<!sum!game.!In!the!sense!that!it!does!not!add!value! e.g.!farming!is!value!added!as!it!yields!crop!and!creates!produces!and! therefore!adds!value,!however!gambling!doesn’t!add!anything.!!! ! ! According!to!secularists,!gambling!adds!value.! ! ! ! ! ! ! ! ! ! ! ! ! Zero!sum!game!–!A!gift!to!my!son!of!£100!does!not!have!any!gharar,! because!I’m!not!expecting!anything!in!return,!when!there!is!no! expectation,!there!is!no!gharar.!! ! ! ! ! ! ! ! However,!in!a!contract!of!exchange,!you!might!think!you’re!getting! something!e.g.!betting!=!win/lose!–!possibility!of!getting!something.!! It!is!considered!to!be!the!“trading!of!unbundled!risk”! ! ! ! ! With!ownership,!the!individual!carries!the!risks!of!loss,!as!well!as!the! rewards!of!profit.! ! ! ! ! ! ! ! ! ! ! ! ! In!Riba,!you!cannot!enjoy!the!reward!without!the!risk.! ! ! ! ! ! For!example;!insurance!–!split!risk!with!insurance!company!–!however,! you’re!gambling!on!risk!–!uncertainty!(gharar).!! ! ! ! ! ! ! ! Gambling!is!a!classic!case!of!gharar.!According!to!scholars,!insurance!=! gambling.!For!example!you!pay!£100!insurance,!and!if!your!house!burns! down!you’ll!get!£100,000.!You’re!gambling!on!your!house!burning!down,! otherwise!you’ve!lost!£100.!!! ! ! ! ! ! ! ! ! Gharar!also!occurs!when!there!is!uncertainty!over!deliverability.!! ! ! ! This!arises!in!a!modern!futures!contract!–!pay!now!–!delivery!later.!! ! ! ! Double!deference!is!not!allowed!–!delaying!both!paying!and!delivery!of! product.!! !

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However,!Hashim!Kamali!didn’t!believe!there!was!gharar!if!you!for! example!sold!wheat!now,!even!if!you!didn’t!own!it,!due!to!the! clearinghouse.!! ! ! ! ! ! ! ! ! ! ! ! ! The!clearing!house!is:! http://en.wikipedia.org/wiki/Clearing_house_(finance)!! ! ! ! According!to!Kamali,!the!clearinghouse!gets!rid!of!gharab!in!this!situation! and!therefore!it!is!allowed.!! ! ! ! ! ! ! Also,!as!we!covered!earlier,!this!is!allowed!with!some!conditions!as!seen! in!the!Bay’as!Salam/Salaf!agreement!to!pay!now!and!delver!later.!! ! ! ! ! Deliverability!–!what!do!we!define!this!as?!! ! ! ! ! ! ! Hanafi!madhab:!Believe!there!should!be!the!option!of!inspection!at!time!of! sale.! ! ! ! ! ! ! ! ! ! ! ! ! Other!schools!of!thought!–!accept!minor!gharar.!Imam!Shafi’!adds!some! principles.!! ! ! ! ! ! ! ! ! ! ! Minor!gharar!for!example,!is!when!I!buy!a!packet!of!maltesers;!I!don’t! know!if!every!single!malteaser!is!good.! ! ! ! ! ! ! Another!case!of!minor!gharar!is!all!you!can!eat!buffets! ! ! ! ! ! Case!study:!http://www.islam<qa.com/en/ref/91480/buffet! ! ! ! ! Betting!on!rising!house!prices!is!haram,!because!you!enjoy!rewards! without!ownership!of!the!house,!thus!this!involves!gharar.! ! ! ! If!I!know!house!prices!are!going!up!I!have!to!buy!the!house!and!enjoy!the! risks!and!rewards!via!ownership.!! ! ! ! ! ! ! ! However,!if!you!bet!on!a!house,!this!leads!to!the!creation!of!risk!–!an! increase!of!risk.!Whereas,!the!sale!of!a!house!from!one!person!to!another,! transfers!the!risk!to!the!owner.!The!owner!takes!the!whole!burden!of!risk. ! ! ! CFD!(house!betting)!risk!increases!for!both!–!contact!for!difference.!! ! ! ! Key!element:!No!ownership.! ! ! ! ! ! ! ! !

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Wealth!transfer:!If!you!lose!or!win!the!bet,!you!cannot!control!what! happens!to!house!prices.!However,!you!can!change!or!redecorate!a!house! –!alter!it!and!thus!increase!its!value.!! ! ! ! ! ! ! ! ! ! Stocks!and!shares.!! ! ! ! ! ! ! ! ! ! Buy!a!share!in!a!company!–!you!share!in!the!assets!of!the!company.!Is!this! halal?!Yes,!because,!we!own!the!assets!–!risks/rewards!of!ownership.! However,!what!about!Internet!trading?!Why!is!this!not!allowed?!Grey! area.!Main!discrepancy!is!that!you!don’t!really!have!control!over!it!in!15! mins.!! ! ! ! ! ! ! ! ! ! ! ! In!this!current!system:!Everybody!can!gamble!with!double!deferment.!I! can!say!I’ll!pay!£100!million!and!you!can!that!you’re!able!to!deliver!10000! tonnes!of!wheat!–!gambling!–!might!not!be!able!to!pay!or!deliver!in!the! future!–!gambling!–!ambiguity!–!gharar.!!

ANSAR!FINANCE!GROUP!PRESENTATION!! Ansar!finance!gave!a!presentation!on!their!schemes!and!products.!More! information!here:!www.ansarfinance.com!and!www.islamic<finance.com! They!have!currently!closed!their!waiting!list!for!the!Islamic!mortgage,! however!are!looking!for!investors!inshallaah.!!! Sheikh!Haitham!on!mortgages:!http://www.islam21c.com/finance/211< islamic<mortgages<shariah<based<or<shariah<compliant! ! ! ! ! ! ! ! ! ! !

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6.0!Conclusions!and!Clarifying!Points! • • Sheikh!Haitham!clarified!some!points.! ! ! ! ! ! ! This!culture!of!credit!–!digital!spending!etc.!has!caused!us!to!spend!more! money.!! ! ! ! ! ! ! ! ! ! ! ! Some!may!say!why!do!we!have!to!separate!some!exchanges!into!two! transactions.! ! ! ! ! ! ! ! ! ! ! ! ! ! Dates!for!dates!of!a!greater!quantity?!What!is!the!solution?! ! ! ! ! Take!the!dates,!sell!them!and!then!use!the!money!from!this!to!buy!the! dates.!!! ! ! ! ! ! ! ! ! ! ! ! However,!if!someone!wants!to!be!clever,!they!would!say!that!all!that!is! happening!is!money!in/money!out,!so!why!not!just!omit!it?!Because!same! amount!of!money!in,!same!amount!of!money!out.!Why!do!we!go!through! the!hassle?! ! ! ! ! ! ! ! ! ! ! ! ! ! The!prophet!s.a.s!told!us!to!do!it!like!this.!What!is!this!difference!between! doing!it!like!this!instead!of!a!direct!exchange!of!dates!for!a!great!quantity! of!dates?!E.g.!10kg!of!ajwa!for!12!kg!of!poorer!dates!is!haram.!However! you!can!sell!the!10!kg!of!ajwa!dates!for!£100!and!once!the!£100!is!given,! the!other!person!will!buy!the!12kg!of!poorer!dates.!!What!is!the! difference?! ! ! ! ! ! ! ! ! ! ! The!first!form!is!haram!and!the!second!form!is!halal.!! ! ! ! ! ! Does!shariah!want!bureaucracy?!!Why!is!this!the!case?! ! ! ! ! ! ! Because,!two!separate!transactions!give!us!an!opportunity!to!think!about! the!second!transaction,!if!it!was!just!one!transaction,!there!is!no! opportunity!to!or!ability!to!break!the!transaction.! ! ! ! ! ! Today,!we!see!many!Islamic!banks,!combining!two!transactions!into!one.! For!example,!1)!you!sell!a!phone!to!the!bank!and!are!paid!£1000,!2)!you! then!buy!the!phone!back!from!the!bank!for!£1500.!The!combination!of!1)! and!2)!together!in!one!transaction!is!Riba.!! ! ! ! ! ! ! If!it!was!separate,!this!is!fine.!However,!no!bank!will!accept!this.!No!bank! will!accept!you!just!to!give!them!something!and!they!give!you!money!and! they!don’t!get!it!back.!! !

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Now!from!this!previous!example,!replace!the!mobile!phone!with!a!house.! 1)!House!bought!from!market!for!£x!and!2)!you!are!bound!to!buy!it!back! for!£y.!This!is!Riba;!they!have!combined!to!different!transactions!into!one.! This!is!why!they!are!haram.!! ! ! ! ! ! ! ! Ansar!finance!is!the!only!organisation!where!you!can!buy!it!back!for!its! actual!price.! ! ! ! ! ! ! ! ! ! ! N.B!You!should!bear!in!mind,!the!following!principle:!Am!I!being! given!money,!to!give!back!more!money?!! ! ! ! ! ! ! This!is!haraam,!however,!banks!are!based!on!making!profit!and!will! therefore!not!separate!the!transactions.!! ! ! ! ! ! ! ! We!need!community!projects!without!interest!on!making!money!out!of! money.!There!needs!to!be!a!different!ideology!with!the!interest!of!the! community!at!heart.!!

END!OF!SEMINAR! www.starofknowledge.wordpress.com! !