2023 E-Learning - Basic Shariah Principle of Muamalat Islam PDF

Basic Shariah Principle of
Muamalat Islam
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Basic Shariah Principle Of Muamalat Islam
Content
Understanding of Ruling Values in

Fiqh & Usul Fiqh
Islam and Shariah Islam
Qawaid Fiqhiyah Objectives of

Sources of Shariah
(Fiqh Maxims) Shariah
Fiqh Muamalat
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Learning Objective
The Program is designed to:
• Equip agents with understanding of Shariah and its components

• Equip agents with 5 main objectives of Shariah
• Assist agents to understand the various types of rulings under
Shariah
• Assist agents to differentiate various sources of Shariah
• Introduce agents with 5 major Fiqh Maxims
• Equip agents with understanding on Fiqh Muamalat and prohibitions
in muamalat contract
Understanding
of Islam and
Shariah
Understanding of Islam & Shariah
• Islam means submission to the will of God and obedience to His
law
• It covers every aspects of life
ISLAM
AQIDAH SHARIAH SHARIAH

(Faith and belief) (Practices & Activities) (Moralities & Ethnic)
Fiqh Fiqh Fiqh

Fiqh JINAYAT
IBADAT MUALAMAT MUNAKAHAT
POLITIC ECONOMICS SOCIAL

Understanding of Islam & Shariah
DEFINITION OF SHARIAH
• Literally means path or way to a watering place in the desert
• Shariah literally also means to prescribe or ordain, law and a straight road
or path
• Technically meaning:
– As a path of religion and the various aspects of laws (al-ahkam) which Allah
provides His servants, i.e. human
– A complete code of belief and code of conduct, laws and a way of life prescribed
by Allah to mankind
– Guidance, commands, prohibitions and other principles that god has addressed
to mankind pertaining to their belief and conduct in this world and salvation in
the hereafter.
Fiqh &
Usul Fiqh
Fiqh & Usul Fiqh
DEFINITION OF FIQH
• Literally means a true understanding and comprehension (al-fahm)
• As example of this is found in the Qur’an in the Dua of Prophet Musa (AS)
when he ask Allah SWT to remove the impediment from his speech so that
Paraoh and his people could understand him better.
“and loosen the knot from my tongue. That they may

understand my speech” (Surah Taha, verses 27-28)
• Technically means the knowledge of the laws of Shariah, relating to men’s

act and that have been derived from specific sources and evidences.
Fiqh & Usul Fiqh
CLASSIFICATION OF FIQH
Categories of Description/Remarks
Fiqh
Fiqh Ibadat Ibadat is a collective term for everything which Allah loves and is pleased with from
among the sayings and inward and outward actions.
Fiqh Ibadat covers rulings governing the relationship from man to God. Example: solat,
zakat, fasting and hajj.
Fiqh Muamalat refers to man to man activities with including economic transaction.
Muamalat Fiqh Muamalat covers rulings governing the commercial and non commercial
transaction, exchange, contracts and agreements with regards to their financial rights
and obligation towards each other.
Example: Bay’, hibah, waqf, etc..
Fiqh Munakahat is marriage between a man and a woman which permits sexual intercourse
between them.
Munakahat
Fiqh Munakahat covers rulings pertaining to family law, law of marriage & divorce and
law of inheritance.
Fiqh Jinayat refers to any prohibited act that may cause harm to one’s religion, soul, intellect,
honor and wealth.
Jinayat
Fiqh Jinayat covers rulings on prescribed punishments,
Fiqh & Usul Fiqh
INTRODUCTION TO USUL FIQH
• Usul Fiqh means the principle by the use of which the mujtahid
(jurist) derived the legal rules (ahkam) of conduct from the specified
sources.
• A body of principles of interpretation by the help of which the

mujtahid is able to derive the law from the detailed sources in the
Quran, Sunnah, Ijma’ and Qiyas.
• Ahkam means the rulings that is deduced from the different sources
of Fiqh concerning the action by a morally responsible person.
Ruling Values
in Islam
Ruling Values in Islam
RULING VALUES
• Locution or communication from the Lawgiver addressed to the mukallaf
(accountable person) which consists of a demand or of an option.
• The acts of a person must be done according to Islamic commandments. They

show how performing or abstaining from certain actions can be categorized as
being obligatory or recommended in Islamic law.
• These commandments are classified as follows:

- Wajib
- Mandub
- Haram
- Makruh
- Mubah
RULING VALUES
1. Wajib (obligatory)
• Wajib is defined as a demand of the Lawgiver (Allah) for the commission of an

act by making it binding and assigning any blame for its omission.
• For example, Allah says in the Holy Qur’an in surah an Nur, verse 56, about
fulfilling the obligations of solat and zakat.
“And establish prayer and give zakah and obey the Messenger –
that you may receive mercy” (Surah an Nur, v.56)
RULING VALUES
2. Mandub (recommended)
• Mandub is defined as a demand of the Lawgiver (Allah) for the commission of

an act without making it binding and without assigning any blame for its
omission.
• For example, Allah says in the Holy Qur’an in surah al Baqarah verses 282
about recoding of a debt.
“O ye who believe, when you enter into a transaction involving a

dayn (debt), write it down” (Surah al Baqarah, v.282)
RULING VALUES
3. Haram (Prohibited)
• Haram is defined as a one which omission is required by the Lawgiver (Allah) in

binding and certain terms
• For example, the misappropriation of another’s wealth. Allah says in the Holy
Qur’an in surah al-Baqarah verses 275:
“But Allah has permitted trade and has forbidden interest

(Surah al - Baqarah, v.275)
RULING VALUES
4. Makruh (reprehensible or disapproved)
• Makruh is defined as one which omission is demanded by the lawgiver in non-

binding terms.
• For example, Allah says in the Holy Qur’an in surah al-Jumuah verse 9, a
reprehensible act indulging trade at the time of the Friday congregational prayer.
“O you who believed, when (the adhan) is called for the prayer on the
day of Jumu’ah Friday), the proceed to the remembrance of Allah and
leave trade. That is better for you, if you only knew”
(Surah al – Jumuah, v. 9)
RULING VALUES
5. Mubah (Permissible)
• Mubah is defined as one in which the Lawgiver (Allah) has granted a choice of
commission and omission, without blame or praise for omission or commission.
“And when Moses prayed for water for his people, so We said,
“Strike with your staff the stone.” And there gushed forth from it
twelve springs. And every people knew its watering place.
“Eat and drink from the provision of Allah, and do not commit abuse
on the earth, spreading corruption.” (Surah al – Baqarah, v.60)
Qawaid
Fiqhiyah
(Fiqh Maxims)
Basic Shariah Principle of Muamalat Islam
Qawaid Fiqhiyah (Fiqh Maxims)
INTRODUCTION TO QAWAID FIQHIYAH

• Definition of Qawaid Fiqhiyah or Fiqh Maxims:
 Literally – a general rule which applies of all its related particulars.
 Technical – The general principle of Fiqh in a concise legal form, embodying the
broad issues of the provision of Islamic law that are incorporated within its scope.
• Function – mainly to facilitate jurists and practitioners in their courses to find the law;
diverse and scattered divisions can be unified under one concept
• Origin of Fiqh Maxims – Qur’an, Sunnah and Ijtihad
Al-Umuru Bi
Maqasidiha
‘Urf Al-Yaqin la
(Customary Yuzai bi Al-
Practice) 5 Major Shak
Fiqh
Maxims
Al- Mashaqqah
Al-Darar Yuzal
Tajlib Al Taysir
5 Major Fiqh Maxims (al-Qawaid al-Kubra)
1. Al-Umuru Bi Maqasidiha
Meaning: Matters are determined by intention
Description : Legal consequences and validity of the conducts of human

including the sayings are very much dependent on the underlying
intention of the doer
2. Al-Yaqin la Yuzai bi Al-Shak

Meaning: Certainty cannot be overruled by doubt
Description : A fact established with certainty remains intact until another fact
established with certain displaces it. Mere doubt not set certainty
aside
3. Al- Mashaqqah Tajlib Al Taysir

Meaning: Harship begets facility
Description : This maxim related to necessity which if not met may cause
severe hardship and chaos and lead to loss of life or a state of
need which if unsatisfied may cause serious difficulty. In such
circumstances, the Shariah offers exceptions (leniency) to the rule
4. Al-Darar Yuzal
Meaning : Harm is to be eliminated
Description : A maxim to prevent the harm and its consequences in compensations

and punishment. It is one of the tools and standards at the disposal of
jurists for their legal judgement on current issues
5. Al-’Addah Muhakkamah
Meaning : Custom is an arbiter/can be the basis of judgement
Description : Custom which is most widely prevalent and operative whether speech
or conduct provided it does not contravene the general rulings of
Shariah is authoritative in certain cases where there is no direct text
provided
Sources of
Shariah
Sources of Shariah
SOURCES OF SHARIAH – PRIMARY SOURCES
There are four primary sources of Shariah which are as follows:
1. The Al-Quran
- Literally: reading or recitation
- Technically: Quran is the speech of Allah (s.w.t) sent down upon the last
Prophet Muhammad (p.b.u.h), in its precise meaning and precise wording,
transmitted to us by numerous persons (tawatur), both verbally and in writing
2. Sunnah
- Literally: Clear path or beaten track
- Technically: Sunnah refers to all that is narrated from the Prophet (p.b.u.h)
including his actions, sayings and whatever he has tacitly approved
Sources of Shariah
SOURCES OF SHARIAH – PRIMARY SOURCES
3. Ijma’
- Literally: determination and agreement upon something
- Technically: Consensus of the mujtahidin of the Muslim community of any
period following the demise of Prophet Muhammad (p.b.u.h) on matter
related to Shariah.
4. Qiyas
- Literally: measuring the length, weight or quality of something/comparison
between two things
- Technically: the extension of Shariah value from the original case, to a new
case, because the latter has the same effective cause (‘illah) as the former.
Sources of Shariah
SOURCES OF SHARIAH – SECONDARY SOURCES
The following are the secondary sources of Shariah:
1. Maslahah Mursalah (Public Interest)

- Maslahah mursalah refers to unrestricted public interest which consists of
consideration which secure a benefit or prevent harm
- Examples: to issue currencies, to establish takaful and Islamic banking
2. ‘Urf (Customary Practice)

- Literally: means custom or known
- Technically: Recurring practices which are acceptable to people of sound
nature
Sources of Shariah
SOURCES OF SHARIAH – SECONDARY SOURCES
3. Istishab
- Literally: means companionship
- Technically: Continuation of that which is proven and the negation of that
which had not existed due to lack of evidence.
4. Istihsan
- Literally: to consider something as good
- Technically: a legal principle which authorized departure from an established
precedent in favour of a different ruling for a reason stronger than the one
which is obtained in the precedent
Objective of
Shariah
Objective of Shariah
OBJECTIVE OF SHARIAH – MAQASID SHARIAH

The Muslim Scholars have classified the entire range of maqasid into three levels in
a descending order to importance, beginning with darurriyat, followed by hajiyat and
then tahsiniyyat.
Classification
Description/remarks
(basic necessities)
Things whose realization is essential for the community
both collectively and individually, the social of the
Daruriyyat community will not function properly if there is any defect in these
things.
For examples: life and death
Supporting needs and interests required in order to have smooth life.
Hajiyyat For examples: removing hardships
The complementary comprises what leads to the
perfection of the community’s condition and social order so
Tahsiniyyat that it leads a peaceful life.
For examples : having different type of car
Definition of Maqasid Shariah:

It is the purpose and wisdom behind the enactment of all or most of the
Shariah ruling. This definition is more related to the general objective of
Shariah. Those overall principles that guide the enactment of Islamic law in
their totality
 Primary objective of Shariah is providing benefit to the people in their affairs

of this world and the hereafter.
This objective can be achieved through the protection of the following:

Protection of:
Religion Life Intellect Lineage Property
Protection of Religion (Ad Deen)

• Religion is the most important value which must be protected
• Religion or Deen is God’s law and guidance for human being
Truly, the religion with Allah is Islam. Those who were given the Scripture (Jews and
Christians) did not differ except, out mutual jealousy, after knowledge had come to them.
And whoever disbelieves in the Ayah (proofs, evidence, verses, signs, revelations, etc) of
Allah then surely, Allah is Swift in calling to account.
(Surah Aali’ Imran, v.19)
• The pillars of Islam are five

- Shahadah, Prayer, Fasting, Zakat, Hajj
Protection of Life (An Nafs)

• Protecting life is obligatory to individual and societies
• Example; Obligation to consume what life need to survive such as food, drink,
medicine, clothing and place of residence.
“He has only forbidden to you dead animals, blood, the flesh of swine, and that which has
been dedicated to other than Allah. But whoever is forced (by necessity), neither desiring
(it) nor ransgressing (its limit), there is no sin upon him. Indeed, Allah is Forgiving and
Merciful.” (Surah al Baqarah, v.173)
Protection of Lineage (An Nasab)

• Islam is very concerned about dignity of a person & emphasized the importance
of protecting dignity.
• Islam promotes marriage and prohibits adultery to protect lineage
“And do not approach unlawful sexual intercourse. Indeed, it is ever an immorality

and evil as a way” (Surah al Isra, v.32)
Protection of Intellect (An ‘Aql)

• Intellect is a great gift from Allah to mankind, to be utilized for good deeds.
• Example; obligation to acquiring knowledge
“And the believers should not all go out to fight. Of every troop of them, a party
only should go forth, that they (who are left behind) may gain sound knowledge in
religion, and that they may warn their folk when they return to them, so that they
may beware” (Surah at Tawbah, v.122)
Protection of Wealth (Al Mal)
• Islam promotes one acquire wealth through legitimate processes to avoid

injustice.
• Al Quran emphasizes:
“And do not consume one another’s wealth unjustly or send it (in bribery) to the
rules in order that (they might aid) you (to) consume a portion of the wealth of the
people in sin, while you know (it is unlawful)” (Surah al Baqarah, v.188)
Fiqh
Muamalat
Fiqh Muamalat
INTRODUCTION TO FIQH MUAMALAT
Definition:
• Muamalat refers to man to man activities with including economic transaction
• Fiqh Muamalat covers rulings governing the commercial and non commercial
transaction, exchange, contracts and agreements with regards to their financial
rights and obligation towards each other.
• Example: Bay’, hibah, waqf, etc.
Fiqh Muamalat
PROHIBITIONS IN MUAMALAT CONTRACT
5 CONDITIONS THAT LEAD TO INVALID CONTRACT / AQAD
Producing and selling impure goods;
Producing and selling goods that are of no use

therefore of no value;
Riba (usury or interest);
Gharar, i.e. ambiguity or uncertainty; and
Maisir (gambling), i.e. anything that involves betting
Fiqh Muamalat
• Islamic finance revolve around Shariah principles. The purpose

of the Shariah principles are:
• To ensure that the products are permissible

11. (halal); and
• To ensure that the trading is permissible and

2.
2 valid (halal and sahih)
Fiqh Muamalat
RIBA – usury or interest
Types of Riba
RIBA
RIBA
RIBA BUYU
DUYUN
RIBA NASI’AH @ RIBA JAHILIYYAH

RIBA FADHL RIBA QARD
RIBA YAD (no riba at the
(Exchange of ribawi (Imposed from the
(Payment of ribawi beginning, imposed
items of different in beginning)
items, but the trading after default)
weight, numbers)
is not immediate)
Fiqh Muamalat
RIBA – Types of Riba (example)
RIBA FADHL
 Exchange of 2g gold bullion with 1g bullion
• The difference in weight is considered riba
• Even though if the exchange occur in different carat
RIBA NASIAH
 Exchange of RM100 with $20 deferred in a week
• If there is any deferment on either currency, riba occurred
• Even though of the deferment is agreed upon by both points
RIBA DUYUN
 Borrowed RM10 with stipulation of any excess in kind or service
• If stipulated before contract, Riba Qard
• If stipulated after default, Riba Jahiliyyah
Fiqh Muamalat
GHARAR - Uncertainty
Types of Gharar
GHARAR
GHARAR FAHISH GHARAR YASIR

(MAJOR GHARAR) (MINOR GHARAR)
The major gharar causes

a contract to be invalid
Fiqh Muamalat
MAJOR GHARAR – TYPES
Gharar Fahish (Major)
Relating to Relating to Relating to Relating to

Buyer or Seller Asset Price Contract
- Buyer or seller is not - Asset or property - Price not - Contract is

capable of taking does not exist mentioned in conditioned (in
responsibility not of absolute amount sale)
majority age, or drunk - Asset or property
is not free from - Two prices in - Contract is not
- Buyer or seller is encumbrances or one contract, or expressed in an
prohibited from ibraa absolute and
disposing of his - Asset or property decisive
is not specific or - Mention of in
property; declared absolute amount language (with
bankrupt or prodigal not according to “shall”, “will” or
its specifications or percentage of
-Buyer or seller is selling price “agree to”)
coerced
Fiqh Muamalat
MINOR GHARAR – TYPES
Gharar Yasir (Minor)
In contracts involving
Minor gharar or minor minor gharar the gharar is
uncertainty is forgiven taken into consideration in
arriving at the price
Fiqh Muamalat
EXAMPLE OF GHARAR CASES
 Gharar due to non-existence of the exchanged counter values

• Known as settlement risk/counter-party risk
• Example – seller is not in a position to hand over the subject matter to the buyer
• “He who buys food grain should not sell it until he has taken possession of it”
 Gharar due to inadequacy or inaccuracy of information

• Arise due to non-disclosure of material information of the subject matter
• The prophet (p.b.u.h) prohibited the act of concealing information to deceive any party
• “He who deceives other people is not one of us”
 Gharar due to undue complexity of the contract

• Example – combining two sales in one contract
• This is why jurists required that hybrid contracts instruments like al-Ijarah thumma al
bay’ or istisna’ must be independent of each other
Fiqh Muamalat
MAISIR - GAMBLING
Definition – better or charging something that will be forfeited if one fails to obtain the
greater gain that one hopes for. In another word means gambling
Example:
 Casino games
 Electronic gaming such as Pachinko and Slot Machine
 Lotteries and Mahjong
 Conventional Insurance
 Profit or loss to insurer very much depends on chances which is closely associate with
claims level
Conclusion
CONCLUSION
• Shariah comprises of Aqidah, Akhlak and Fiqh

• The primary sources of Shariah are Qur’an, Sunnah, Ijma’ and qiyas
• All human interaction regarding material transaction are governed within Fiqh
Muamalat.
• There are other secondary sources of Shariah
• Maqasid Shariah is the objective of Shariah rulings
• Qawaid Fiqhiyyah are principles derived from primary sources
• Main objectives of Shariah is to protect religion, life, intellect, lineage and wealth
• Main prohibited elements in Muamalat are Riba, Gharar and Maisir.
Thank You
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Basic Shariah Principle of

Understanding of Ruling Values in

Qawaid Fiqhiyah Objectives of

The Program is designed to:

• Equip agents with understanding of Shariah and its components

AQIDAH SHARIAH SHARIAH

Fiqh Fiqh Fiqh

POLITIC ECONOMICS SOCIAL

“and loosen the knot from my tongue. That they may

• Technically means the knowledge of the laws of Shariah, relating to men’s

INTRODUCTION TO USUL FIQH

• A body of principles of interpretation by the help of which the

• The acts of a person must be done according to Islamic commandments. They

• These commandments are classified as follows:

• Wajib is defined as a demand of the Lawgiver (Allah) for the commission of an

• Mandub is defined as a demand of the Lawgiver (Allah) for the commission of

“O ye who believe, when you enter into a transaction involving a

• Haram is defined as a one which omission is required by the Lawgiver (Allah) in

“But Allah has permitted trade and has forbidden interest

4. Makruh (reprehensible or disapproved)

• Makruh is defined as one which omission is demanded by the lawgiver in non-

INTRODUCTION TO QAWAID FIQHIYAH

• Origin of Fiqh Maxims – Qur’an, Sunnah and Ijtihad

INTRODUCTION TO QAWAID FIQHIYAH

5 Major Fiqh Maxims (al-Qawaid al-Kubra)

Description : Legal consequences and validity of the conducts of human

2. Al-Yaqin la Yuzai bi Al-Shak

INTRODUCTION TO QAWAID FIQHIYAH

5 Major Fiqh Maxims (al-Qawaid al-Kubra)

3. Al- Mashaqqah Tajlib Al Taysir

INTRODUCTION TO QAWAID FIQHIYAH

5 Major Fiqh Maxims (al-Qawaid al-Kubra)

Description : A maxim to prevent the harm and its consequences in compensations

SOURCES OF SHARIAH – PRIMARY SOURCES

There are four primary sources of Shariah which are as follows:

SOURCES OF SHARIAH – PRIMARY SOURCES

SOURCES OF SHARIAH – SECONDARY SOURCES

The following are the secondary sources of Shariah:

1. Maslahah Mursalah (Public Interest)

2. ‘Urf (Customary Practice)

SOURCES OF SHARIAH – SECONDARY SOURCES

OBJECTIVE OF SHARIAH – MAQASID SHARIAH

OBJECTIVE OF SHARIAH – MAQASID SHARIAH

Definition of Maqasid Shariah:

 Primary objective of Shariah is providing benefit to the people in their affairs

This objective can be achieved through the protection of the following:

Religion Life Intellect Lineage Property

OBJECTIVE OF SHARIAH – MAQASID SHARIAH

Protection of Religion (Ad Deen)

• The pillars of Islam are five

OBJECTIVE OF SHARIAH – MAQASID SHARIAH

Protection of Life (An Nafs)

OBJECTIVE OF SHARIAH – MAQASID SHARIAH

Protection of Lineage (An Nasab)

“And do not approach unlawful sexual intercourse. Indeed, it is ever an immorality

OBJECTIVE OF SHARIAH – MAQASID SHARIAH

Protection of Intellect (An ‘Aql)

OBJECTIVE OF SHARIAH – MAQASID SHARIAH

Protection of Wealth (Al Mal)

• Islam promotes one acquire wealth through legitimate processes to avoid

INTRODUCTION TO FIQH MUAMALAT

• Muamalat refers to man to man activities with including economic transaction

• Example: Bay’, hibah, waqf, etc.