Case Study: Is Islamic Home Financing in USA Halal?

In the Name of Allah, the Entirely Merciful, the Especially Merciful.

All praise is due to Allah, Al-'Alim (The All-Knowing)

 "And whatever you lay out as usury, so that it may increase in the property of men, it shall not increase with Allah; and whatever you give in charity, desiring Allah's pleasure-- it is these (persons) that shall get manifold." (Quran 30:39)

Several years ago, I was sitting outside the masjid and waiting for iftar, and one of the brother engaged with me in a conversation about Islamic finance in USA, and how it is just another name for interest (riba). According to my knowledge at that time, structure of the loan was similar, but terms made it halal. So, I suggested him to take the islamic loan, if it is the same, and have faith in the scholars who have passed the fatwa. From that day, my secondary interest, beside fiqh in general, has been to learn about Islamic Finance in modern age. How can we buy a home without having the full amount in cash?

Some say that one shouldn't buy a home, if they don't have cash, because they shouldn't desire things that they can not afford. Others say that if we don't understand the difference, there is no difference between conventional loan and Islamic loan. Both are extreme views and does not need any further attention here. We should be able to pursue our dreams in this world using halal methods, but at the same time, we should strive to go towards less doubtfull, and Allah knows best. Specially, when a believer says that Islamic loans looks the same, so they can not be halal, without understanding the fatwah of the scholars, they are playing with fire. Even if the scholar is wrong, one is obliged to followed them, unless one has a indisputable proof from Quran and Sunnah.

"...they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest..." (Quran 2:275)

So, purpose of this article is to share the knowledge I have gathered in last 3 years with everyone, and not to ask anyone to sell their homes immediately, due to their loans are not completely halal. As always, we will start with the golden principle of Islam, which makes everything in this world and in our imagination permissible, unless it violates any rules of Sharia. So, all business transactions and loan terms are permissible, unless there is a defect which invalidates that transaction. In USA, there are two major types of home financing Ijara (Lease to Purchase), and Musharaka Mutanaqasa (Declining Partnership). I will be showing how these are halal theoretically, and how practical implementations in USA could put doubts in them, and how they can be improved.

Main reason for establishing these Islamic Financing Institution is to provide a halal alternative in USA to interest based loans. Of course, Alternative to interest is trade, and we need to see if these profit based Islamic financing transaction qualify as trades, or do they fall short of the basic requirements. So, what are the basic requirements for a profit based Islamic financial transaction to be trade and not Riba(Interest). Saif ul Azhar explains the requirements as the concept of 'Iwad (Equal Countervalue) in the following way, and many of the early and modern scholars like Imam Ghazali agree with these criteria. 'Iwad means to take risk, have liability, and make effort to earn the halal profit from the trade.

"I need to make this point clear to prevent undue confusion. For example, when the polytheists in the city of Mecca say, "Trade is like riba..." and the Quran detested it by saying "Allah allows trade (al-bay') but prohibits riba," the former, i.e., al-bay' implies the existence of 'iwad, or equal countervalue in the transaction. When the requirement of 'iwad is fulfilled in trading (al-bay'), it brings along the sense of equity and justice into business transaction, that rendered it superior to an interest-bearing system"  (page 30 Saiful Azhar - IBF)

First, in Ijara (Lease to Purchase) financing, the home is owned by a trust. Then, the customer sign a lease agreement with the trust, where they pay the rent and separate on-account payment towards buying the home. Trust holds the title and maintain the property taxes. At the end of 30 years the Trust transfers the title to customer. This is completely halal, as the customer doesn't own the title directly, and buys the home slowly.  Following are the issues with the implementation of this in USA ( based on my own home financing).

1) Financier should bring halal funds and not have conventional loan at the back to finance their share of the funds. Also, customer can not be asked to sign a mortgage with any of the investors of the financier ( usually conventional bank will require that). This is completely unacceptable in Islam, and defeats the purpose.

2) Customer should not be a full trustee on the trust, but the lease agreement should be structured to protect their right as usually the case with leasing to purchase contracts. This is a very common transaction in USA. Giving customer part ownership is unacceptable.

3) If the home is sold before the customer purchase the property, the profit of the sale should be divided according to the share of funds paid so far by the customer. This is to keep the intention of the transaction as honest. It is unjust to give full profits to a lessee for a property owned by someone else. Imaging your tenant asking for that.

Second, in Musharaka Mutanaqasah (Declining Partnership) financing, the home is bought as a partnership between a sub-corporation of financier and the customer according to their share of the funds. After the purchase, the customer is allowed to live in the property as a privilege, and in return they pay rent. They also pay a small amount to buy back the share from the financier. After 30 years, the customer owns 100% of the partnership, and hence owns the home completely. This is completely halal, as the home is purchased as partnership and there is no loan. It is also allowed to purchase the share of other partners, and pay the partner compensation of exclusive use rights. Following are the issues with this type of implementation (based on case study of a home in Windermere, FL area, proof documents are available upon request).

1) Although the property is purchased as partnership, the financier does not appear on the title. According to the fatwa, this is done to provide the customer the conveniences they usually have with conventional loans. Ownership only exist on a contract that is never recorded in the county, which means legally it is not a true ownership in partnership. Scholars seems to allow it, because Islam recognized signed contract as a legal bind. However, that allowance is only in the cases, where local laws allow it, and we are required to follow the laws of the land where we live in. In this case, scholars need to require both partners to be on the title. According to the requirement of 'Iwad (Equal countervalue), we have to take the risk, liability, and effort of partnership, to reap the benefits of this being an Islamic transaction. This is completely unacceptable.

2) Although the financier owns majority of the property, they do not take any responsibility of the property. If roof leaks, or taxes are not paid on time, they are not liable. This is exactly the unjust relationship conventional banks have with their investment. They provide cash, and collect rent on the cash. Since they are not collecting rent on the property, they usually don't get involved in the day to day operation. Islamic financier are not renting money, but renting the property, so they need to take responsibility. This is completely unacceptable. Financier should manage the property, or pay someone to do that. Just waiting idly to collect rent is dangerous, as per the following hadith.

From Usamah ibn Zayd : The Prophet, , said: "There is no riba except in Nasiyah [waiting]." (Bukhari, Kitab al-Buyu', Bab Bay' al-dinari bi al-dinar nasa'an; also Muslim and Musnad Ahmad)

3) Customer is allowed to take tax break available for Mortgage Interest for the rent they pay. That is completely unacceptable. If the intention of the rent is to pay the partner for the use of the property, it need to be disclosed as such to the government. Deception to allow a convenience to the customer that they have with conventional loans is not allowed in Islam. This is completely unacceptable. There is a reason IRS provides this break only for interest, and not for rent payments. We can't have it both ways. Customer should not use this, even if they are provided, because of the following verse.

"O those who believe fear Allah and give up what still remains of the Riba if you are believers. But if you do not, then listen to the declaration of war from Allah and His Messenger. And if you repent, yours is your principal. ..., then everybody shall be paid, in full, what he has earned. And they shall not be wronged." (Quran 2:278-281)

4) If the home is sold before the customer owns 100% of the property, the profit of the sale should be divided according to the share of partnership. This is to keep the intention of the transaction as honest. It is unjust to give 100% profits to one of the partners. Financier play a trick to make this happen. They will allow the customer to buy their partnership first, and then let them sell as 100% owner to gain the profit, but since the customer has no money to do that, they execute the contracts simultaneously to avoid this paradox. This is completely unacceptable. Financier should benefit from the profit or take the loss according to their ownership, because they claimed that they owned it to make this transaction halal. If they back out from that claim, then only Allah knows what comes of the whole transaction.

"... Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums)." (Quran 2:279)

"And be afraid of the Day when you shall be brought back to Allâh. Then every person shall be paid what he earned, and they shall not be dealt with unjustly." (Quran 2:281)

Yes, these restrictions will reduce the benefit to the customer compare with conventional loan, and make the financing less competitive against conventional loans, but there is a reason Allah called Riba unjust (profit), and if the benefits to parties are similar in both transaction structures, then there is no justice. If it does not attract most Muslims, so be it, because those Muslims may not be ready to understand the benefit they will receive in hereafter, by giving up rights, which are unjustly entitled to them in an interest based loans. In essence, Lease-to-Purchase, and Declining Partnership financing is completely halal, if implemented according to the intention of that type of transaction, and not a restructured debt loan on deferred payments with profit, which is the definition of interest based loans.

According to my little knowledge, these implementations of the halal alternatives are not 100% compliant with Sharia requirements yet. Scholars have singed on to this as halal, according to their understanding. So for people, who are not able to determine these defects, they should continue choosing halal options over conventional. For people who already have a conventional loan, or these pseudo Islamic loans, they should not oppress their families by selling their property immediately, but find a transition plan. For people who can buy on cash, go right ahead, but please do not discourage people from halal financing, as it may lead to extreme hardship, and destruction of their faith in Islam. Reducing great harm with minor harm is one of the principle of Islam.

Next step for me is to reach out to the scholars, and seek out their opinions on these apparent defects. Find out, if they understood the details in USA, when they signed the fatwa, and if they conitnously montior these facilities. For this purpose, I will be travelling to Chicago, inshAllah, for the Islamic Economic Conference. I will share what I learn when I comeback, God Willing.

If any of you have more information that removes these defects or explain how they are not, please feel free to forward it. As I mention, I also have one of these type of financing on my home, and that is my primary purpose of this research. I would continue the research, and see what else I can find out.

I would like to end this with the hadith that Muhammad ibn Ismail Al-Bukhari started his collection with. Basically, it comes down to the intention of the person and the transaction, and if the intention is pure, business will come and homes will be bought. Bending the rules to the extent that they reaches boundaries of prohibited areas is not a wise business plan. Let us keep striving for halal.

Umar ibn al-Khattab relates that he heard the Messenger of Allah, say, "Verily actions are by intentions, and for every person is what he intended...." (Agreed upon)


JazakAllahu Khairin

A struggling homeowner
AbuArman Jumani

Racial Pride: Why Iblis did not repent?

In the Name of Allah, the Entirely Merciful, the Especially Merciful.

All praise is due to Allah, Al-Qaadir (The Capable)

"And We have certainly created you, [O Mankind], and given you [human] form. Then We said to the angels, "Prostrate to Adam"; so they prostrated, except for Iblees. He was not of those who prostrated.[ Allah ] said, "What prevented you from prostrating when I commanded you?" [Satan] said, "I am better than him. You created me from fire and created him from clay." " (Quran 7:11-12)

"And Adam disobeyed his Lord and erred.Then his Lord chose him and turned to him in forgiveness and guided [him]." (Quran 20:121-122)

Recently, I observed the pride among some Muslims, who boasted their race, language, country, unique circumstances etc. They would claim that they were born in a family of scholars, and hence have some magical  knowledge flowing through their blood. They would claim that they were born to family of the Prophet (PBUH), which makes them superior than others. They would claim that they are following a madhab that is superior than others. They would claim that their customs are above the commands of God. I hear them, and wonder, what Iblis did to deserve the disgrace no creature ever receive from Allah.

Iblis, was the best among his race of Jinn, who were the custodian of earth, and creature of higher status before humans.He had earned the status in eyes of Allah so much so that Allah allowed him to dwell among the Angels, and in the presence of Allah. When Allah commanded him to prostrate a seemingly inferior creature, he refused, because he couldn't surrender his pride to the will of Allah. On top of that, he did not repent, because he didn't see his mistake in refusing it.

Now, one should wonder that Iblis must have been obeying Allah's command for a very long time to be in a high status with Allah, so why he couldn't just obey another, and surrender his pride. Well, sometimes pride and customs become the reason for existence and breaking them could be seen as losing all the respect. It is easy to read these verses and explain their meaning, but it is hard to do what Iblis didn't do, which is to admit that Allah's command is right, and anything contradicts it is wrong.

On the other hand, Adam and Hawwa, disobeyed Allah as well, but they did it in absence of any such emotions, and hence when they realize the punishment, they surrendered and repented, because they knew that Allah's command is above everything we possess and love. If we are not ready to give in to the Haqq ( the absoluteness of Allah's Command), we are not on the winning side.

In Iblis, we have an example for us. We can be the highest ranking scholar, or the best of the worshiper, but if we refuse a command of Allah because it contradicts our culture, or office status, or status quo, we are following the path that Iblis paved with his example. He was not an evil entity, until his racial pride became more beloved to him than his Creator's command. It was definitely an awkward command to prostrate a seemingly weak being, and he refused, although his belief in Allah was much stronger than any human being, since we have not seen the world that he saw.

It does not matter what the command is that we are disobeying. It could be shaving beard, in fear of Employer, or not wearing hijab, in fear of bullying. It could be participating in the tradition of Milad, in fear of taunts from family. It could be not standing up to justice, in fear losing facilities from the person in charge. It could be not reminding a brother, in fear of losing social connections.It could be disobeying parents, in fear of wife. It could be not practicing Islam, in fear of being called religious. If we disobey Allah, to avoid embarrassment, we are putting ourselves ahead of our Creator. What went through Iblis mind before he refused? He must have known what Allah's reaction will be. After the reaction, he stood firm, so what was motivating him. Any of us can fall into this, and some of us are motivated by this firm notion of being better.

I seek refuge in Allah from Shaytan, the one who was disgraced. We should examine our lives, and make corrections, if we are not obeying any of Allah's command, even if it is very awkward. It is not the sheer quantity of our deeds that will take us to paradise, but Allah's approval of our sincerity.

Without his forgiveness, there is no peace,
 a single disobedience, we lose it all.
Oh believers! this world is not what it seems,
pride in the world, will ruin it all.

JazakAllahuKhairin

A repenting sinner.
AbuArman Jumani

Shura (Consultation): Islamic Method for Western Countries

In the Name of Allah, the Entirely Merciful, the Especially Merciful.

(Following is a paper I wrote for Islamic Management course, and like to share.)

Organization:            Islamic Center of Windermere

Vision:            Establish a practicing Muslim community in Windermere inviting Non-Muslims to Islam.

Mission:         Provide a platform for Muslims, and Non-Muslims to learn, share, and socialize to bring them closer to the path to success in this life and success in hereafter.

Objectives:    1) Establish Islamic, fair, and inclusive administrative system.

                        2) Make the facilities accessible to all, regardless of age, gender, religion, language, and ethnicity, without breaking any laws established by Quran and Sunnah.

                        3) Encourage Muslims to practice Islam (in worship, and in other matters), and introduce Non-Muslims to Islam with accuracy, sincerity, and wisdom.

“And those who have responded to their lord and established prayer and whose affair is [determined by] consultation among themselves, and from what We have provided them, they spend.” ( Quran 42:38)

Every action of our lives should seek guidance from the message and the life of Prophet Muhammad (PBUH), and building the local Masjid or establishing an Islamic Organization shouldn’t be different. In addition, building a Masjid in a non-Muslim country has been proven to be a very difficult task, because it takes a lot of effort to bring Muslims from different background together, and because it takes wisdom to get approval from the local community and government where non-Muslim residents are usually cynical about the prospect of Islamic Organization in their area.

Islam provides a solution for this in a form of the practice of shura (consultation). In any organization, there is always one person who leads the organization named as Ameer, President, or CEO. However, the Prophet (PBUH) taught us that the leader should not make major decisions without consulting with a group of individuals who represent different opinion that may exist in the community or organization, which he is leading. In this light, let us look at how this method can be practiced in an Islamic organization existing in a non-Islamic country.

Prophet (PBUH) reported to have said “It is I who invited you to this discussion, and you have insisted on going out. So be fearful to Allah and patient at misfortune. And look at what Allah has commanded you and do it.” (Muhammad Al-Ghazali, Fiqh-us-Seerah, p 280, who quoted from ibn Kathir as a narration from Mursi ibn ‘Aqabah as Mu’addal)            

One of the most important reason and advantage of shura is to bring different group and philosophies together and support the decision that would be made. This aspect of shura cannot be emphasized enough. If the matter is discussed openly, and all opinions have heard, it removes any possibility of descent on the basis of minority opinion not being considered. Moreover, it provides the manager or leader to gauge the level of support from a specific group. Prophet (PBUH) used this method very wisely to unite Muhajireen and Ansaar during the time of big decisions. He also showed them that he is willing to accept their opinion even if he didn’t agree with them. During the battle of Uhud, Makkan army was on their way to attack Medina, and the Prophet (PBUH) took consultation, where Ansaar wanted to meet the forces outside the city, and the better option was to stay and fight them inside the city due to low numbers of Muslims. Many leading companions supported his opinion of staying within the city. However, he chose the advice of young masses from Ansaar because he saw that they will be more motivated to fight in open. So, one of the most important aspect of making consultation is the unity that comes out of it because everyone feels inclusive and valued. As a word of caution that the leader should accept the opinions of minority sometimes, when it doesn’t go against Islamic principles to keep the integrity of the process of consultation.

Practice of shura, before making decisions, ensures that due diligence is done, and decision was made after being informed from all perspectives. Usually, the Islamic shura is setup to represent each group from the community, as was the practice of the Prophet (PBUH) and the Caliphs after him. A representative from each tribe was chosen, and ranking companions were chosen who were wise and provided different way of thinking. One such incident is recorded in the seerah of the Prophet (PBUH). When the overwhelming enemy force surrounded Medina to finish off Islam, a shura was done, where Salam Al-Farsi shared a unique technique from Persia where a ditch is dug to prevent the army to cross a certain area, and the Prophet (PBUH) accepted his suggestion, which lead to Islam survive until today (According to Muhammad Al-Ghazali Fiqh-us-Seerah p 324). So, Allah allowed this to happen to teach us the correct method of management, where a consultation is done before major decision by the leader is made, and where the leader accept the better suggestion even if it is from a minority group.

It is reported that Umar (RA) also consulted with, women, such as Layla aka AshShifa bint Abdullah  on many occasions, and gave preference to her opinion due to her level of knowledge and wisdom, which shows us that women can be part of this process. In fact, nowadays, women have shown to go toe to toe with men on seeking knowledge and skills, and it becomes compulsory to have a women representative, in the case of building an Islamic Organization in non-Islamic countries, where women converts are high, and women rights issues are in forefront. (Economy Conference, Jeddah Feb 8, 2008). This practice will provide the perspective from women to the board and to the leader of the community, which is the most common short fall in the Islamic organization in non-Muslims countries leading to frustration and alienation.

Umar reported to have said "O people, whoever among you sees any crookedness in me, let him straighten it." A man stood up and said: "By Allah, if we see any crookedness in you we will straighten it with our swords." Umar said: "Praise be to Allah Who has put in this ummah people who will straighten the crookedness of Umar with their swords." [Dr Muhammad as-Sallabi, 'Umar ibn al-Khattab, His life and Times,' vol. 1, p. 213]

Another big advantage of shura is to make the leader of the community humble and more aware of the will of the people. Most often, an Imam becomes disconnected from issues within the community, or attain aloft attitude, and his decision may be according to Islam, but not appropriate for the populous he serve and manage. Having shura with others bring him to humility and show him that he is not above reproach from the people. We can see this from an event during the Caliphate of Umar, when he announced that if anyone finds him crooked in his affair, they should correct him with their hands, and a person told him that he will use sword to correct Umar if necessary. After hearing that, Umar became happy and said that it is a blessing to have people who don’t hesitate to correct their leaders if they deviate. So, if the shura is done properly, the leader or Imam will get the feedback on how his decisions are perceived within the community, and it will provide him opportunity to correct any deviations within his administration. Although this is not the direct purpose of the shura, it is nevertheless an important advantage.

In essence, Islamic organizations like other organizations are led by a single person and not by a shura council, but it is imperative for that leader to establish a shura council or board who can advise him on major decisions. This practice will make the decisions more informed, increase the unity within the organization, and keep the leader connected and grounded. In western countries, this practice of shura also becomes critical as Muslims from different part of the world are present, and there are differences that exist among them. If the decisions are made after discussion and consultation, the outcome is agreed upon or at the least understood. So, it is an obligation of Islamic organization in west to setup shura for the Imam or the President to prevent any disunity, ill-informed decision, or bias administration. May Allah bless any decision that is done with consultation.

JazakAllahuKhairin
A Student of Knowledge
AbuArman Jumani

 

References

·         Al-Quran

·         Dr Muhammad as-Sallabi, 'Umar ibn al-Khattab, His life and Times,' vol. 1, p. 213

·         Muhammad Al-Ghazali, Fiqh-us-Seerah, p 280, International Islamic Publishing House

·         "Muslim Heritage in the Knowledge-Economy Conference in Jeddah". http://muslimheritage.com/topics/default.cfm?ArticleID=854. MuslimHeritage.com. 8 February 2008. Retrieved 2013-09-08.

What’s Wrong with Current Global Economy

In the Name of Allah, the Entirely Merciful, the Especially Merciful

Following is the draft of a speech I recently gave. Just wanted to share.

Current Global Economy has gone through a rough period in recent years, and a lot of wealth was lost due to that. As Muslims, and citizens of this world, we should think and ponder over the reason behind this turmoil, and how it can be improved. Allah says in the Quran.

“You are the best of peoples ever raised up for mankind” (Quran 3:110)

Instead of pointing figures, and finding someone to blame, we should be the source of solutions and benefits for the humanity. So, let us analyze this problem that the whole world is suffering from.

1. First, we should understand how Global Economy interconnects all the countries into one marketplace.
2. Second, we should understand the flaws in the current Economic system due to deviation from Islam.
3. Lastly, we should discuss ways Islam can help heal the Global Economy and provide a long term sustainable economy.

Interconnected Global Economy

A community or a country always has a goal to be self sufficient, and they do everything in their power to have recourses to be independent of foreign dependency. However, it is a very difficult, if not impossible goal to achieve, because there will be some resources that will be required and not available locally to meet the needs. This creates a need of trading and mutually beneficial transactions, where one entity provides the goods that the other needs and vice versa. Since it is natural, and necessity, Allah has made trade halal, as He says.

“…Allah has permitted trade and has forbidden interest..” (Quran 2:275)

For most of the human history Economy was local, because the system was closed within an area, and the impact of foreign economies was not felt in most nations. Of course, there was trade with foreign lands, but most economies were not dependent on each other. There were some exceptions like trading between Makkah and Syria and Yemen, during the time of the Prophet (PBUH). All this changed when global financial institutions were established, and modern currency system connected the economies and countries. Today, world economies are so much interdependent on each other that any change in economic outlook in one country can impact a country thousands of miles away. 

For example, if USA companies’ profits decline, impact can be felt in Singapore.

Also, the current economic system, by and large, is based on capitalist philosophy, which is based on motivating participants to maximize their share, and avoid any transaction that will render a loss or reduction in profits. In the absence of Allah’s guidance, this is seemingly the best strategy, and the strategy is Greed. In addition, the measurement of wealth is based on currencies, which in some cases is arbitrarily created and destroyed. In fact, currency can be an acceptable representation of wealth, if it is based on the true wealth, which is the natural resource. 

After 1971, however, when the collapse of the Bretton Woods agreement meant that the link between dollar and gold was severed, that is no longer the case. So, now, all the economies are interconnected through the currencies and convenient methods of trading, which are not prohibited in Islam or a bad thing at all. In essence the global economy is a blessing, and provided a lot benefits to all of us.

Flaws in Current Economic System

Although global trading and interconnected economies are not against principles of Islam, underlying greed, unfair economic environment, and Riba based financial system has turned this blessing into a curse. Greed is the opposite of charity, and wealth has been accumulated with few and most is impoverished.  It seems intelligent to increase the profits regardless of the welfare of the community as a whole. 

For example, in the years between 2000 and 2007, banks gave loans to anyone who wanted to sign up for it, and that loan was traded multiple times as a commodity, although it has not yet collected. It is interesting to note here that Islam prohibits the trading of debt because collecting it in cases of default becomes complicated. Amazing isn’t it how Islam appeals to the logic when not blinded by greed. Greed indeed blinded the investors, and homeowners, and even the government from regulating it. Economy was inflated unfairly to lure people to invest their life earnings. Interest based loans expected more money in exchange of money, and then the trading of the loan as increased Riba to satisfy the Greed and unfair economic practices.

This situation kept building up and every Riba based transaction was accumulated with another layer of Riba based transaction between investors. All experts agree that collapse of 2008 was caused by the US housing bubble and the bubble has burst by unsustainable interest based profits not materializing, and hence stressing the insurance companies to accommodate the losses, whose capital, in turn, was invested in the same Riba based market. So, when the bluff was called, and demand was made to pay the losses, the financial sector went into a panic mode, and the whole world felt the shock waves. 

Trillions of US Dollars were lost. Millions of people lost billions of their savings. Losses caused layoffs and homeowners defaulted on more loans and the cycle continue to spiral the economy towards oblivion, until the US government stepped in and start printing money which was also based on the interest based loans from foreign countries, who in turn depend upon the same US dollar for their wealth. So this vicious cycle continues till today in different sectors.

Islam as a Solution

As you can see that current global economy is based on Greed, unfair economic environment, and Riba based financial system. Islam on the other hand provides economic principles based on earnings combined with charity to purify it, fair trading policies to protect all parties, and Riba free transactions which guarantee the sustainable growth based on natural resources and shared sacrifices. Allah says

“And whatever you give for interest to increase within the wealth of people will not increase with Allah . But what you give in zakah, desiring the countenance of Allah - those are the multipliers.” (Quran 30:39)

Making reasonable profit is one of the goals of any trade, but making the profits the sole purpose of life is unIslamic. Any economy should be based on mutual benefit and welfare and not selfish greed, and safe guard should be in place to prevent greed from taking priority over the right of the poor and needy. Also, if the wealth does not flow through the whole system, poor will become poorer and rich will become richer until the system will collapse, because the rich depends upon the poor population to pay for the profits.

“Woe unto every greedy, arrogant, one who hath gathered wealth (of this world) and arranged it. He thinketh that his wealth will render him immortal. Nay, but verily he will be flung into the Consuming One.” (Quran 104:1-4)

Islam demands that trade transactions are fair, and does not deprive any party unreasonably, so any transactions that lead to unbalanced economic system or undue stress, or victimizes people should be prohibited. Following are some of the evidences from the Quran and Sunnah providing the fair principles.

"Do not devour your property among yourselves falsely except that it be trading by your mutual consent" (Quran 4:29)

"Give a full measure when you measure out and weigh with a fair balance" (Quran 17:35).

Narrated Abdullah ibn Umar: Allah's Apostle said, "He who buys foodstuff should not sell it till he is satisfied with the measure with which he has bought it. (Bukhari Book of Sales and Trade)

Also, Islam prohibits Riba, which will be the best way to prevent the issues that current economic systems are suffering from. Practically, Riba based growth is not sustainable and even non-Muslims begin to see the flaws in the Riba based financial system, which is like a balloon being pumped, and it is a matter of time before it bursts.

“O ye who believe! Devour not usury, doubling and quadrupling (the sum lent). Observe your duty to Allah, that ye may be successful.”  (Quran 3:130)        

“And of their taking usury when they were forbidden it, and of their devouring people's wealth by false pretences, We have prepared for those of them who disbelieve a painful doom.” (Quran 4:61)

Ironically, this is the way American financial experts have explained the boom and bust cycles in USA economy, which is caused by building up of growth in one sector due to promised return of more money on money lent, but the system collapses when money runs out to provide interest payments. Since the Global Economy is based on US Economy, the same cycle repeats globally. On the other hand, UK markets are adopting Islamic compliance investments to avoid high risk high profit Riba based investments.

Conclusion
All in all, we are blessed as Muslims to have the solutions for human problems with us in the Quran and Sunnah, and we should share with others and help implement in the society, so greed can turn into earnings purified by charity, dubious deals turn into fair transactions, and false promise of more money for money turns into reasonable risk based profit sharing. We should not be observers but the leaders in Global Economy and turn it into blessing from Allah and beneficial for the humanity. InshAllah!

Power Point Presentation can be found here.

JazakAllah Khairin
AbuArman Jumani

Moon Sighting: A Tragedy in Slow Motion.

In the Name of Allah, the Entirely Merciful, the Especially Merciful.

All praise is due to Allah, the All Knowing.

"Verily, We have sent it down in the Night of Al-Qadr. And what will make you know what the Night of Al-Qadr is. The Night of Al-Qadr is better than a thousand months. Therein descend the angels and the Ruh by their Lord's permission with every matter. There is peace until the appearance of dawn. "(Quran 97)

[Following is fictitious dialogue between two Angels, and only Allah knows the knowledge of unseen.]

As the sun set on the horizon, the Angels started to descend, and brought with them the commands of Allah for the rest of the year to be implemented. Also, they brought huge packets of blessings and tranquility.

Angel# 1:   "Hello, AsSalamuAlaykum brother."

Angel# 2:   "WaAlaykumAsSalam brother. Your voice is very crisp and clear. Did you get the new heaven mobile?"

Angel# 1:   "Yeah, my supervisor put in a good word for me to get me the upgrade. All glory belongs to Allah"
                  "Brother, I am here at east part of the town on my NOP (night of power) delivery, but the people are very few in the Masajid, and there is no sharbat (milk drink), or mithai (sweet). Did we got the schedule wrong? I know we are suppose to be flawless in implementing His commands."

Angle# 2:     "Oh No, No! they are following a different schedule, and calculated the night of 27th Ramadan as yesterday, so don't worry, and just make your delivery to whoever is praying. I am 20 miles away from you and they have 27th tonight, so I will be busy. You got the easy one!"

Angel# 1:    In the puzzling voice, " I don't understand this. How can two Muslim communities within 20 miles have different days of Ramadan? Don't they talk to each other? I am new to this, so please help me understand."

Angel# 2:    "Brother, I can't explain it to you, as Allah told us on the first day of their creation that he knows about them which we do not know. The humans have weakness in their ego and pride, and they will not accept other group as an authority, although they are in majority. They say that they can not deny their roots. It is funny though, because they all have the same root, and their differences are skin deep."

Angel# 1:    " So, does that mean they will celebrate Eid on different days?"

Angel# 2:    "Yes, most likely, as the larger group is basing it on calculating moon phases, whereas other still insisting on looking through their eyes."

Angel# 1:    "But, that is what our beloved Muhammad, peace and blessings be upon him told them right to look through their eyes?"

Angel# 2:    "Yes, Yes. He said that, but you have to understand that he also said to use phases of Sun to determine the time of Salah. However, once they perfected the science of determining time of day, they have calendars now which they follow. So, the idea is to know the time period, and not cling to the sunnah as obligation. Remember what our lord said "(They ask you (O Muhammad) about the crescents. Say, "These are signs to mark fixed periods of time for mankind" (Quran 2:189). The moon phases are created for them to know periods of time, and  when the knowledge was limited, certainty can be achieved by moon sighting, or counting 30 days.

Angel# 1:   "You are right brother. Humans are following the letter of the law, but not the spirit of the law, which was the original intent of the law giver. But, surely these communities within one city can unite on one method. Don't they talk to each other, or have meetings of leaders to share each other's opinion?"

Angel# 2:   "No, brother, because each of them have an organization, and they are committed to that organization, and some of them get paid, so their loyalty is with their organization. They collect money in the name of the organization, and they deal with their affairs in the name of that organization. Each organization has an agenda, which drives the decision, so it takes a lot of courage to stand up and question the authority, and their faith is weak right now, due to love of this world. But, some have modified their opinions to create unity by accepting global moon sighting, and may be it is a start."

Angel# 1:    "Wow! It is certainly a tragedy! A tragedy in slow motion. Every day the Muslims here wonder when is Eid, and whether their cousin on east side of town would be fasting during their Eid. These humans are certainly fools to allow this. But, Allah knows best."

                   "I feel bad for the people who were here last night thinking it was night or power, and I am here standing, but only a few to receive it. Anyways, let me wrap it up, and I will head to your area to get some milk and sweet. I love those things."

Angel# 2:     "Sure! Come on over. We are not humans. We can visit each other areas without invitation. We love each other for the sake of Allah, and don't have loyalties to any other organization except the Kingdom of Allah. I really miss Muhammad, peace and blessings be upon him, because if he was alive, he would have ordered them to drop the silliness and follow the most certain way. "Leave what has doubt for what has no doubt" is what he said, according to Hasan ibn Ali. See you in few minutes, and bring the left over blessings here, as there are a lot of folks here today."

Angel# 1:    "Yep, on my way. Almost done distributing in this area. All praise is due to Allah. Lord of the Mighty Throne."

JazakAllah Khairin

A Seeker of Certainty
AbuArman Jumani

Muslims: Are we the worst nation?

In the Name of Allah, the Entirely Merciful, the Especially Merciful.

All praise is due to Allah, the Best of Guide.

"If We had sent down this Qur'an upon a mountain, you would have seen it humbled and coming apart from fear of Allah . And these examples We present to the people that perhaps they will give thought." (59:21)

"If this is the case with a mountain which is hard and huge, that if it was made able to comprehend and understand this Qur'an, will feel humble and crumble from fear of Allah the Exalted, then what about you -- O mankind Why do your hearts not feel softness and humbleness from the fear of Allah, even though you understand Allah's command and comprehend His Book" (Tafsir ibn Kathir)

Month of Ramadan brings a wave of people towards masajid, who recite Quran, pray Salah, listen Quran in taraweeh, and other seemingly holy activities. Supposedly the Muslims are in a humble state while fasting, whereas if you poke them, they would smile and look down, and then if you slap them, they would say, "I am fasting". They supposed to be close to God, and reforming their ways for the rest of the year.

Reality is much different. Some can't understand what the Imam is saying in the taraweeh, because it is too fast. Some can't understand Arabic, and just looking for melody from the reciter, and they even demand for the most beautiful voice every year, as that would make a difference. Some who understand Arabic are not paying attention to the words and message, and it enters from one side and leave from another. And, every year, Muslims become more selfish, more temperamental, more ignorant to social injustice, and less aware of the bigger purpose of Islam.

As I sit and wait for iftar, I see people sneaking food from another plate, because they think they deserve more from everyone else who is assigned the same portion. If we visit a country populated by majority Muslims, it becomes a challenge to make an orderly queue, because they are unsure, if they will be able to get what is been given out, and the only way to make sure is to step forward and get it before the other brother receives it. Streets are filthy, and people throw trash on the road, without a care about who would pick it up. God forbid, if you cut anyone off by mistake. If you demand your right, as small as pension allocated to you, they would demand bribe, because supposedly their income is not enough to support their family. The list is so long that I could write for days, but I don't have that luxury right now.

Allah is stating very clearly that Quran if understood and followed would even make the stones tremble from fear of Allah, but our hearts have become harder than stone. Prophet Muhammad (PBUH) didn't just establish Salah, but he established the society that became attractive for Non-Muslims, and the society that protected everyone's rights. He sacrificed his family's convenience to serve the people around him. Quran suppose to make us a better human first and foremost, because praying taraweeh without Quran penetrating our heart is a superficial activity.

Muslims should be sacrificing their interests for others. They should be looking out for their neighbors, Muslims or Non-Muslims, and do everything that is asked from the neighborhood, and more.They should be imitating the Prophet (PBUH) in good character, and not the head covering that makes them look foreign. They should be learning the Quran, and implementing it, not memorizing it to repeat in Taraweeh.

Today, a Non-Muslim would most likely be a good citizen in a society then a Muslim. It should be the other way around. So, what is the cause of this inverse affect of Quran on us? Why are Muslims becoming the worst nation in the world? People don't trust us. Even the Muslims who visit masjid park their car wrong, because they are in a hurry.

Root of all the issue is selfishness. Muslims in general are looking after their own interest. When the right thing to do is a little inconvenient, they would avoid it altogether. Why should I properly dispose my trash, when it requires more effort? Why should I engage with my Non-Muslim friend in a polite conversation about Islam, when I can avoid it? Why should I participate in the neighborhood, if I can have more time for my family? Everything starts and ends with self interest.

Palestinians do not want to accept Israel, because it will decrease their land, regardless what it does to Muslims in general. Taliban want to make statement, regardless of the innocent Muslims they kill n the masajid. Saudis do not want to resist IMF, because it might decrease their wealth. Local Muslims does not want to allow women in the Masjid, because it will upset some of the donors. Several organizations do not want to accept the truth, because it will reduce their membership or support.

Everyone has an agenda, and everyone is looking after their interest. Everyone is a volunteer, and they come and go as their comfort allows. Imagine if the companions volunteer for the activities that the Prophet (PBUH) asked for, and looked at their schedule, and did not show up. Is practicing Islam volunteer or obligation? Yes, accepting Islam is volunteering, but once a person is a Muslim, everything ordered by Allah is an obligation, and all the agendas, and self interest is secondary.

That is why we are falling to the lowest level as a Nation, and we will be disgraced until we stop wasting our time in empty gestures, and hollow traditions, and put the interest of Islam ahead of our interest. Fasting will not affect us, unless we combine it with substantial change in our attitudes, and live according to the message of Quran.

Belief is not just accepting an idea as truth, but it is accepting that idea in truth. It is not enough to accept God as god, but we need to surrender to the will of God.

So, go to taraweeh or not go to taraweeh, but make Quran's message as priority in your life, and that is the true spirit of Ramadan.

JazakAllah Khairin

A struggling Muslim
AbuArman Jumani

Is Meat in the Supermarkets in USA Halal?

In the Name of Allah, the Entirely Merciful, the Especially Merciful.

All praise is due to Allah, the Perfectly Wise.

"The food of the People of the Scripture is lawful to you..." (Quran 5:5)

Recently, a question came up, which has been very controversial in the western countries. Someone asked if the meat that is sold in the supermarkets in USA halal for Muslims to eat. An answer was given to the question by quoting the above verse and a hadith from Sahih Bukhari, and declared that the meat from the supermarkets in USA is permissible to eat. At that time, I could hear the gasps and murmuring throughout the gathering. Some were nodding yes with excitement, some were frowned, and some amazed at the answer.

This opinion can be traced back to Yusuf Qaradawi, who argued that slaughter from the people of the book, doesn't have to comply with all conditions of Muslim Slaughter. He also claimed that as long as Christians consider the method of slaughter to be permissible, it is permissible for us to eat, and he has allowed Muslims to eat the meat that was originated and packed in "Chrisitian Countries". (The Lawful and The Prohibited in Islam by Yusuf Al-Qaradawi pg 59-62)

So, let us look at this issue and the evidences that has been presented to support the controversial opinion. According to the agreed upon principle, if the issue has been addressed in the time of the Prophet (PBUH), then we look at how the Prophet (PBUH) and his companions dealt with that issue, and follow the understanding of the first generation. In fact, the meat of people of the book was an issue during his time, and their attitude towards it is reflected in several ahadith. So, we should try to understand how the first generation, the best generation, understood the permissibility or prohibition of it.

First claim is that the meat of a Christian or a Jew, is permissible to eat for a Muslim. Well, the above command from Allah leaves no doubt in the matter in general. However, we have to understand this in the context of the Christians and Jews traditions at that time. So, if a Jew or a Christian brought meat to the Muslims in Madeena, they would have ate it, and without asking any questions, because the Christians would slaughter according to their religion. This is reflected in several ahadith and has been agreed upon by the scholars.

Also, it is agreed upon that meat from Non-Muslims who are not people of the book is prohibited. No one contest this. There is no difference of opinion in this matter. This prohibition includes the people who do not believe in God, named Athiests, or people with undeclared faith.

If we look at the tafsir of this verse from the companions, we find that people of the book would slaughter their animal according to the rules given to them by their prophets, and say Allah's name on the slaughter. Permission from Allah here is to allow their meat although their beliefs are wrong, but their methods are correct, and they slaughter in the name of God.

"(The food of the People of the Scripture is lawful to you..) meaning, their slaughtered animals, as Ibn `Abbas, Abu Umamah, Mujahid, Sa`id bin Jubayr, `Ikrimah, `Ata', Al-Hasan, Makhul, Ibrahim An-Nakha`i, As-Suddi and Muqatil bin Hayyan stated. This ruling, that the slaughtered animals of the People of the Book are permissible for Muslims, is agreed on by the scholars, because the People of the Book believe that slaughtering for other than Allah is prohibited. They mention Allah's Name upon slaughtering their animals, even though they have deviant beliefs about Allah that do not befit His majesty" (ibn Kathir)

Some people don't agree with the understanding of the companions, and try to use their own understanding. They argue that method of slaughter doesn't matter, and is not intended by Allah in this verse. Although this understanding is against what the Prophet (PBUH) explained, let us assume it to be true for argument sake. So, if a meat is from the people of the book, it is permissible, regardless of how it was slaughtered.

Now, what is required from us is to determine what meat is from the people of the book, and what is not from them. This is where the biggest deviation is occurring in USA. Muslims in USA are generalizing this permission to the extent that, they start eating meat from Supermarkets. In the case of meat available in the supermarkets in USA, we have to evaluate if this meat is covered under the verse of the Quran above, at all. And, what we really are asking is if the meat in the supermarket is from Christians, because Jewish meat are sold separately as Kosher, so there is no matter of doubt on Jewish meat.

So, what is the meat of the Chrsitians? If a Christian is making the sale, does that make the meat halal? If a Christian is the owner of the supermarket, does that make the meat halal?  If the country is populated by mostly Christians, does that make all supermarkets meat halal? If the slaughterhouse owner is Christian, does that make the meat halal? If the worker in the slaughterhouse is Christian, does that make the meat halal? Of course not, because the meat is not a Christian meat that is sold in the supermarkets. It is from undeclared authority, and faith, which means it was prepared without any intention of it to be a Christian meat. USA is not a Christian country. Supermarkets are not Christian markets. Owners may or may not be Christian. Slaughterer may or may not be Christians. Worker may or may not be Christians. So, what differentiate that meat from meat sold in hindu markets in Orlando. Nothing! So, what is the foundation of calling it Christian meat? If one can not call it Christian meat, then it is prohibited, as agree upon.

After this point is clarified about undeclared nature of the meat in supermarkets, some argue that the Prophet (PBUH) allowed a group of Muslims to eat a meat about which they were not sure. This hadith is in Sahih Bukhari, and following is the english translation.

Aa'isha (may Allah be pleased with her) narrated "that some people said to the Prophet (peace be upon him) that a people come to them with meat which they do not know whether they have mentioned the name of Allah upon it or not. The Prophet replied "Mention the name of Allah upon it and eat it." ( Sahih Bukhari Book of Hunting and Slaguthering #415)

So, the claim is that the people were doubtful about the meat, and the Prophet(PBUH) told them to just eat it. When this is read in english as above, it does seems like a general allowance, but if one opens the original book compiled by Muhammad ibn Ismail Al Bukhair himself, there is more context to this hadith. Title given by the compiler of this hadith is "Baab Zabihaht-ul-A'raab wa Nahwihim" meaning "Chapter of slaughter of  Bedouins (new Muslim) and (the rulings) towards it". What this tells us that the group that provided the meat were new Muslims who may have forgot to say Allah's name when slaughter, but their intention was to slaughter according to their religion, which means that the companions of the Messenger had no doubt that the meat is from a Muslim, but they had a doubt about accuracy of the slaughter. Moreover, the assumption was that the meat is from a Muslim and is permitted. Prophet (PBUH) told them to not question these new Muslims about it and just say Allah's name and eat it. So, it is clear that the meat was known to be from a halal source to begin with and the Prophet(PBUH) was not addressing the question of the doubt of the source of the meat.

Hence, this hadith does not provide evidence to ignore the source of the meat whether it is from a Muslim, people of the book, or from Atheist, and can not be used to permit meat from the supermarket in USA, since the source of the meat is undeclared or unknown to begin with. A christian has to present the meat to us as slaughtered according to Christianity for it to be halal, but all meat sold in USA can not be considered Christian meat or meat from the people of the book.

On the other hand, there are confirmed source of Jewish meat that can be permitted with this hadith, because some Jews may not follow the correct method, but if one does not have enough information, they are allowed to eat it. For example, if presented a kosher option, one may chose that.

On the whole, one can not differentiate between Atheist meat, Christian meat or Hindu meat in USA, and permitting any meat within USA on the basis that it is a land of Christians, or owned by Christians, or severed by Christians is not acceptable.

If a person reading this article is a true believer, and will abandon for the sake of Allah if the truth comes forward, I urge them to stop buying from supermarkets in USA, as it is not the meat from the people of the book, even if you relax the understanding of ibn Abbas, whose understanding of Quran was second only to the Prophet (PBUH).

There are Zabihah Halal markets all over the USA now, and the similar meat is available there. So, please buy from that source, which is "tayyib" (pure).

If someone has another evidence that makes the meat permissible, please provide it, so it can be reviewed.

And Allah Knows best.

JazakAllah Khairin
A Student of Knowledge
AbuArman Jumani