Gharar and Uncertainty

in Shari'ah Finance

Group 3:
Muhammad Aqshal Regiansyah
Muhammad Daffa Rahadian
 Background

• In economic practice there are things that cannot be separated, namely the existence of risk, in
this case risk, because it always contains uncertainty.

• In the concept of Islamic finance it is known as hazard, in this case the three are very closely re-
lated, where risk = uncertainty = ghrarar.

• In economic transactions, uncertainty is very close, because in all transactions a predictive deci-
sion is required from each business actor, and this decision has advantages and disadvantages.
BUSINESS DECISION SELECTION PROCESS

Three theories about uncertain decision making,

namely:
natural factors, action decision makers, and
the consequences of the action

These three factors are felt to neglect one im-

portant factor as well, namely the choice in mak-
ing
a decision.
PASSIVE RISK AND RESPONSIVE RISK

• Responsive risk
• Passive risk (uncon- (controlled risk)
trolled risk)
such as the game of skill,
which allows a probability
Like the game of change, distribution of the out-
which only relies on luck
come with a logical causal-
ity relationship.
Responsibility for risk

The real difference between the two is that there is responsibility for risk re-
sponsiveness, responsibility for the ability to implement these uncertain re-
sults.

This is allowed because of an act that contains value, this is not an act of
taking risks but as a responsibility in a productive business besides the exis-
tence of a risk.
The scope of attention to the sphere of influence

 Those who do not focus on the factors affecting them will become reactive to external factors.

 Whereas someone who is proactive, he can focus on the sphere of influence and not consider
outside factors to totally determine his benefit.

 Its aim is to maximize its sphere of influence and minimize attention to external factors.
Cause and Ethical Relationships

one focuses on causes rather than on uncertain results, then one

will treat causes in an unsuitable way. If there is no uncertainty
about the consequences of behavior, then ethics and morals will not
be.
How to identify the causes of a risky
event
In order to identify the relationship of events that occur by chance, Al-Suwailem
provides several references as follows:

• the emphatic statement from al-qur’an

• Experimental Evidence
• some social norms
• personal guesswork
Uncertainty and causality

Factors controlling the likelihood of an

outcome are uncertain and require a
cause.
LUCKY AND GHARAR

• Muslim scholars can call the hope of getting the desired result or goal on the basis of belief
in luck is tamani.

• But when that hope is combined with a cause (couse) that is not dangerous (not prohibited),
then it is called a king. 'Tamani memorat one ignores causes and natural factors (causality).
And rely on luck alone.
LUCKY AND ZERO-SUM SIZE
There are contracts that contain the same gharars as zero-sum games, so it
can be said that this is a game of chance. From this point of view, it can be
said that luck is part of the game that gives profit and also part of gharary
which is not justified in Islamic economic behavior. Transaction / investment
behavior that contains ein-loss elements with a certain amount can be used
as a reference to determine whether the transaction contains gharar or not.
Risk, uncertainty, and risk-return parity

In Surah Al'araf verse 188 and Surat Lukman verse 34 it states that there is uncertainty regarding
something in the future and people cannot know for sure what they will try to do tomorrow or
what they will get.
In decision-making theory, a condition can be divided into 4 types:
• uncertain conditions that at least meet the two conditions, namely there
is a proper action and the probability value of each event is unknown.

• A risky condition that takes place in any of the following

• A definite condition that occurs with the following indicators: the chosen
alternative has only one consequence (outcome)

• Conflict conditions (competition) which are described when the interests

of two or more decision makers conflict with each other and they com-
pete with each other rationally, carefully and aim to win the competition.
KIND OF GHARAR TRANSACTIONS
• Buy and sell the Hashah way
• Buying and selling "dive guesses" (Dharbatul Ghawwash)
• Buying and selling Nitaj
• Buying and selling Mulamasah
• Buying and selling Munazabah
• Buying and selling Muhaqalah
• Buying and selling Muzabanah
• Buying and selling Mukhadharah
• Buy and sell fleece
• Buying and selling solid milk
• Buying and selling Habalul Habalah
THANK YOU