ISNA Statement on the Inclusion of Women in Masjids

Women treatment in the Masajid is a very critical issue, and requires an open discussion. Recently ISNA, the largest Muslim organization, weighed in on this subject, and I like to share it with everyone. 

After all it was just an ijtihad that ejected women from main hall and halted the Sunnah, and ijtihad can restore that Sunnah. Even in Medina, women share the main prayer hall with a barrier in the middle, but in some prominent masajid, women are isolated to enclosed spaces, away from main hall or floor above. 

Please read it with open mind, as I also don't agree with everything they say, but enough to agree that women should be represented on the Shura boards, and share the main hall with a flexible partition, at the least.

 

Jazakallah Khairin

AbuArman Jumani

ISNA Statement on the Inclusion of Women in Masjids

In the name of Allah Most Compassionate Most Merciful

We, the undersigned Muslim scholars, leaders, organizations and concerned Muslims, voice our strong commitment to uphold and realize the Prophetic ideal of masjids being open and inclusive of women.  Striving to realize the Prophetic model, we call upon all masjids to ensure that (1) women are welcomed as an integral part of masjids and encouraged to attend, (2) women have a prayer space in the main musalla which is behind the lines of men but not behind a full barrier that disconnects women from the main musalla and prevents them from seeing the imam; and (3) women actively participate in the decision-making process of the masjid, best realized by having women on the governing bodies of masjids.

The defining principle underlying this call is Allah’s description of the ideal relationship of men and women in the Muslim community:

The believing men and the believing women are awliya’ (supporters, helpers, protectors, patrons) of one another: they (both) enjoin what is known to be good and forbid what is known to be bad; they establish salah and pay zakah; and they obey Allah and His Messenger.  These are the ones on whom Allah will bestow mercy—indeed Allah is exalted in power, wise (9:71).

This verse clearly sets the general principle that believing men and women support one another in the great mission of Islam—striving for good, opposing evil, and establishing the pillars of salah and zakah.  Thus Muslim men and women are partners in establishing the faithful Muslim community—both are needed, both are essential.  There are also many other Qur’anic verses (e.g. 9:18, 7:31) which establish the general principle that it is the believing Muslims—men and women—who maintain and frequent the masjids.[1]

1. Masjids Should be Welcoming to Women
The active presence of women in the masjid during the time of the Prophet Muhammad    is clearly evidenced in numerous hadith.  Hadith confirm that in the Prophet’s masjid women prayed salah regularly,[2] attended Jum’ah Prayer,[3] made optional prayer (nawafil),[4] did i’tikaf in the masjid during Ramadan,[5] and met in the masjid.[6]  The Prophet   demonstrated the welcoming nature of his masjid, for example, by shortening prayers when children started crying.[7]  To help facilitate a healthy environment and avoid fitnah (temptation), the Messenger of Allah   instructed both men and women to dress properly, lower their gaze and guard their modesty.  Women received an additional instruction not to wear perfume when attending the masjid.[8]

The general guideline was set by Prophet Muhammad    when he ordered that women be allowed to freely attend the masjid: “If the wife of anyone of you asks permission to attend the masjid, he should not prevent her.”[9]  When Ibn Umar’s son, Bilal, responded to this hadith by saying “We will prevent them,” Ibn Umar harshly reprimanded his son for the audacity of opposing the explicit instruction of the Prophet   .[10] 

Thus we call on all our masjids to be welcoming to women—such that their experience at the masjid be uplifting and not demeaning.  To realize the ideal of being welcoming to women, masjids should (a) ensure that women’s accommodations are comfortable, clean and well-lit; (b) support and facilitate women’s activities and groups; and (c) proclaim clearly on the minbar and by other means that women are an integral part of the masjid. 

The hadith that “the best prayer of a woman is in her house,”[11] cannot be taken as a general guideline, because the great female companions, including the Prophet’s wives, prayed in the Prophet’s masjid.  If the hadith was supposed to apply to all women, the wives of the Prophet    and the female companions would not have gone to the masjid.  The best understanding of this hadith, therefore, is that an allowance exists for some women to pray at home depending on their circumstances (such as Umm Humaid who was instructed to pray in her home)[12], but it cannot be interpreted as a ruling for all women at all times. 

In the same vein, Sayyidah Aishah’s remarks that “had the Prophet known what women were innovating, he would have forbidden them from attending the masjid,”[13] cannot be taken as a general guideline, altering the Prophet’s practice of including women in the masjid, because speculation of what the Prophet   might have intended cannot be used as a proof.[14]  Sayyidah Aishah in fact did not explicitly say, women should be prevented from attending the masjid, and it is known that the Rightly-Guided Caliphs did not prevent women, and that women continued to attend the masjid during the time of the Rightly-Guided Caliphs.  This hadith in fact confirms the general principle that women are allowed to attend the masjid as long as they fulfill the instructions of dressing properly and avoiding perfume.

The underlying concern in these hadith and the opinion of many scholars is the avoidance of fitnah (temptation).   However, in the American context, where society in many cases pulls Muslims away from Islam and where women and men have many choices of where to go and how to spend their time, the best choice to avoid fitnah for everyone is to spend more time in the masjid where they will hopefully become better Muslims and lend a hand to growing the Muslim community.  When masjids provide women full access to prayers, activities and the decision-making process, the entire community will ultimately benefit.

2. Women Should Have Prayer Space in the Main Musalla without Barriers
The masjid of Prophet Muhammad  and the masjids during the time of the Four Rightly-Guided Caliphs did not have a barrier separating men and women.  Men prayed in the front lines, children in the middle, and women behind the children.  All the schools of Islamic Law, Sunni and Shi’ah, agree on this point.  So why should we adopt any other ideal?  When women are in the main musalla, they are naturally more attentive, more engaged and thus better able to fulfill their function as awliya’—supporters and contributors to establishing the Muslim community.

Some Muslims argue that the barrier is necessary to guard against fitnah (temptation).  However the Prophet never stated that a women’s presence in the mosque in and of itself is a source of fitnah.  The instruction to men to avoid fitna is to lower their gaze; not to put a physical barrier that blocks women from the main musalla.  The benefit in the rule of having women engaged in the masjid outweighed some hypothetical possibility of fitnah.

We call upon masjids to ensure that women have access to the main musalla to perform salah, listen to the Jum’ah khutbah or attend and participate in lectures or discussions.  This should be in addition to any separate area that currently exists for women.  Recognizing that the architecture of some masjids may make it difficult to find a barrier-free space for women in the main musalla, especially for Jum’ah, masjids still have the duty to find a solution to realize the sunnah of including women in the main musalla.

3. Women Should Participate in the Masjid Decision-Making Process
Allah gave the general command to the Prophet  and the Muslims to conduct their affairs by shura, and necessarily shura includes women.[15]  Being partners in establishing Islam, the voice of women must be present in the deliberations of the Muslim community.  The Prophet  did not have a formal shura process, but he did set the example of consulting with all segments of the Muslim community, including women.  Masjids in North America, however, do have formal decision-making mechanisms, and it is, therefore, incumbent that women participate in all processes of formal shura, including serving on the governing bodies of masjids.  Also from an American legal standpoint and a best practice perspective, masjid boards should be representative and gender inclusive.  In addition masjids are encouraged to create positions of official authority and influence for women, whereby the community at large can benefit from their talents, expertise, moral example and experience.

We call upon all Muslims—in particular masjids—to sign this statement and then work to make our masjids more inclusive of women.  Please sign onto this Statement by going to: http://www.isna.net/isna-statement.html

This statement was initially prepared by ISNA’s Task Force for Women-Friendly Masjids (a part of ISNA’s Masjid Development Committee), and then modified with the input of the Fiqh Council of North America and many other Islamic scholars.

Endorsed by the following:
ISNA’s Task Force for Women-Friendly Masjids
Atiya Aftab
Aisha Al-Adawiya
Ihsan Bagby
Hind Makki
Sarah Sayeed, Chair

Fiqh Council of North America

Dr. Muzammil Siddiqi, Chairman                                 Dr. Zainab Alwani, Vice Chairman                               Dr. Zulfiqar Ali Shah, Executive Director                                   Dr. Mohamad A. El Sheikh                                               Dr. Jamal Badawi                                                                   Shaikh Abdool Rahman Khan                                         Shaikh Muhammad Nur Abdullah                               Dr. Deina Abdelkader

Dr. Muneer Fareed Imam Yahya Hendi Dr. Yusuf Z. Kavakci Dr. Muhammad Qatanani Imam Hassan Qazwini Dr. Ali Suleiman Ali Dr. Muddassir H. Siddiqui Dr. Ihsan Bagby

Initial List of Scholars of Islam Who Have Endorsed this Statement (in alphabetical order)

Tamara Gray Abdullah Ali Hamid Sherman Jackson Mohamed Magid Ingrid Mattson Yasir Qadhi Suhaib Webb

Feryal Salem Omar Shahin Zaid Shakir Omar Suleiman Jihad Turk Asifa Quraishi-Landes                                                         Reima Yosif

A Guide for Practicing Muslims to Finance Home in USA.

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 riba, 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)

Alhamdulilah, my studies at Islamic Online University came to an end with the submission of my thesis, and I would like to share my research with everyone. It is a long paper, but contains alot of good information that is hard to find otherwise.

Hopefully, it provides help and guidance for practicing Muslims in USA while they consider purchasing home.

I urge everyone, who is thinking about buying a home, to read this paper and follow the referred scholarly work to educate themselves before making any decision. Please share with others if you find helpful.

Following is the direct link for the paper.

https://onedrive.live.com/redir?resid=D9F57ADA93F241F9!2867&authkey=!AKdPx4zZ-vgdemk&ithint=file%2cpdf

JazakAllahu Khairin

A student of knowledge
AbuArman Jumani

Conclusion: 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 riba, 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)

As I mentioned in my previous article, search for more knowledge on Islamic Finance took me to Chicago in June. After a week of enjoying the beautiful weather and tasty food, I finally made my way to the conference. Did I mention Sabri Nihari? Wow, I have never tasted food like that before. Alhamdulilah. Anyways, it was pretty well organized, but audience was thin. My goal was to confirm or deny the conclusions that I reached on the Islamic Home Financing in USA, and was not sure if there would be enough information to do that. Specifically, I went to see Shaikh Mudassir Siddiqui, who seems to have a very balanced view on this. Another person was Khalid Elsayed, the CEO of Guidance Residential, who can provide some insight into how a financial company owner view Islamic Home Financing.

As the conference progressed, I observed so many different aspect of Islamic Financing. There were seasonal bankers, career Scholar-cum-Consultants, theorists, pure businessmen, Jewish brokers etc. Finally, I get to hear Mudassir Siddiqui, and ask him direct questions, and of course Khalid Elsayed from Guidance. In order to keep this short and concise, let me present you the conclusion and some supporting evidences. Most of the videos, contracts, and white papers can be presented upon request. If you wish to know full details, please contact me offline at ajumani@hotmail.com.

Khalid Elsayed seemed sincere, and seemed like a very good businessman who is willing to, at some extent, take the loss to provide halal home financing for Muslims in USA. However, he was very focused on the profit and potential of the industry. Although it is understandable, this driving force for profit, and market share is making it very difficult to establish proper Islamic financing products that comply with Islamic Sharia.

Shkh Mudassir told a story from Dubai that clarified everything for me. Dubai has been the center of Islamic Financing experiments for decades. During the financial boom of early 2000s, many businesses were financed based on Islamic Financial contracts like Murabaha (Deferred Sale), and Musharaka (Partnership), and one of them was a Shopping Mall in Dubai. When the market took a downturn in 2008, Dubai economy was hit specially hard, and this Shopping Mall suffered. Owner was not able to make the monthly "Profit" payments, which were suppose to be rent to the supposedly partner in profit/loss. This is a very common structure of Islamic Financing where the financing cost is recovered by collecting rent on the property from the client, but in order to remove the responsibility and the liability from the Islamic Financial Institution, only the client's name is put on the Title, which makes the transaction, essentially a debt transaction, since the only claim of money remain is in a form of a loan. In fact, there is a contract of partnership or sale that is kept off the books which suppose to make this "Halal", since bank seemingly sharing the liability.

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)

However, when the matter came to the court for judgement, Bank's attorney argued that this was a case of secured debt financing, and the Bank is not liable for the property and the owner is responsible for the full amount financed, because Islamic Bank are still banks whose main concern is money and not the property. Of course, the owner insisted that he is just renting the property from his partner, according to the signed Islamic partnership contract, and willing to surrender the property to the Bank. Shaikh Mudassir was part of the judge tribunal, and carefully looked at all the documentation. Judgement was given in the favor of the Bank, because the contract based on profit/loss partnership was not the driving factor, and the true intention of the transaction was to provide financing. In fact, all the details of the end transaction were identical for a interest based transaction, and Bank was not responsible or liable for the property involved, since property was clearly owned by the client. Based on these evidences, owner was held liable for the full amount, and the supplement agreement that made the transaction halal was set aside, because it conflicted with practices of common law.

Shkh Mudassir and several consultants, in the conference, explained that all Islamic financing transaction contains a conflict of jurisprudence authority, because the transaction is recorded as debt transaction with no evidence of sharing loss/profit is published to the local authorities. So, when the matter comes to be adjudicated, in case of default, there is no way to proof that the financing institution has any share in the property, unless the conventional law recognize the Islamic Contract which Islamic Scholars recognize. In other words, Bank's attorney will never admit to sharing risk and hence relieving the minor partner from majority of the burden, and official document will support the case of this being a pure debt transaction. I have a video recording for this back and forth, if anyone interested.

"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)

So, it is clear that if Islamic Home financing transactions are not clearly identified as true Partnership or Rental agreement, it is just a debt transaction with profit collected on financing provided to the client who can not afford on their own. We can not have it both ways. We can not base the transaction on Declining Partnership and Rental agreement to make it halal, and at the same time, relieve Islamic financial institution from the responsibility of being the co-owner of the property. And, we can certainly not allow the homeowner to profit from the equity 100% when it is sold, as Islamic financial Institution should share the profit according to the ownership at the time of sale. That is what makes Islamic Home Financing halal, and deviation from it makes the transaction invalid.

So, does that mean, there is no halal way to finance a home, without dealing in Riba in current financial framework? No, Declining Partnership (Musharaka Mutanaqisa), Lease to Purchase (Ijara), Sleeping Partnership (Mudaraba) are all 100% halal transactions, but the Islamic financial institutions in USA have chosen to structure their contracts in a way that it renders the transaction into a simple interest based loan. If a Islamic financial institution chose to put their name on the title, responsible for maintenance, liable for loss, and share the equity in the house, then Alhamdulilah there will be no doubt whatsoever. Of course, most of us have weak faith, and we are willing to practice Islam as long as it is convenient. So, if we don't get our tax break, or have full ownership, or full equity profit like we do with conventional loans, we will find another Islamic Financial Institution who does with a fatwa from the same scholars.

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

In essence, Guidance Residential, LaRiba, Ijara Loans, University Financials, Devon Bank, etc. are all structuring their transactions to avoid owning or being liable for the homes, and have individual fatwa for each exception. There is a fatwa to provide a 1098 form. There is a fatwa to not have the financing institution name on the title (based on a signed contract which is never recorded in the official records, and will not be held up during foreclosure). There is a fatwa on selling the home back to the client for $1 after he sells the home ( of course he can't sell the home until the financing institution removes the mortgage, so both are done simultaneously to deceive the government). There is a fatwa for financing company to not be liable for insurance, taxes, and maintenance. So, at the end, what you have is a homeowner owning the home that was financed with Cash, and paying back more in cash with a mortgage being the only connection to the financing institution. In order to keep it Halal, homeowner should give up the equity share, and financing institution should give up profit from rent unless they take liability.

"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)

This is a harsh example, but it brings the point across, as the above verse of the Quran is even harsher. These transactions are similar to making a Mutta (temporary marriage) halal by approving parts of it. For example, a traveler comes to a new town, finds a woman, and proposes a temporary marriage, and they both announce it, and do proper Nikkah. When the husband is returning home, he gives a proper divorce, and pays the dowry. We can certainly get fatwa for each individual aspect of this temporary marriage, and these individual actions are definitely halal, but is the marriage as a whole Halal? Of course not, because both husband and wife knew that this is a temporary marriage and dowry was agreed accordingly. So, the intention was not to marry each other for indefinite term, but intention was to provide companion ship for the man during his trip. Similarly, the intention behind all the Islamic home financing transaction is to finance the home without any liability or responsibility for the financing institution, and no profit sharing in equity, and full rights to foreclose on the property as 100% debt default. There is a famous saying in politics that "It is the economy. Stupid!". Similarly here, "It is the intention. Stupid!"

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)

Ironically, some scholars in Saudi Arabia allow this type of Nikkah for foreign travelers, but Mufti Taqi Uthmani and other scholars have , rightfully, criticized it due to the intention and the contract as a whole not being Islamic, However, Mufti Taqi Uthmani and others have signed on to the Islamic Home financing contracts which follows the same pattern. Not sure, if they are not aware of the local laws in USA of ownership and partnership, or some other reason. Interestingly, I have a recent article from Mufti Taqi Uthmani, where he admits the above faults in these home financing contracts and encourages Americans to come up with alternatives, which I truly admire. What I don't understand is that why he doesn't pressures the US companies into putting their name on the title with the threat of revoking the fatwa. That is something I would like to ask him InshAllah, when I see him. following is the link to his recent article.

http://www.muftitaqiusmani.com/index.php?option=com_content&view=article&id=5:looking-for-new-steps-in-islamic-finance&catid=12:economics&Itemid=15

Of course, this is only a refutation of the fatwa of the scholars, and business practices of Islamic Financial Institutes, but if one is in a need to buy a home, they should try their best to chose the best among these Islamic companies. This is not my opinion, but opinion of renown scholars of USA as the link below show. With my research and concurred by following fatwa, Guidance Residential is the best company in USA for Islamic home financing with the best contract and scalable solutions, only if they can correct the above faults. As you can see in the opinion of the scholars issued after a recent conference in Houston below. All the companies' contract are defective, including Guidance Residential, and only allowed in a need, but there is a stacking order, and as practicing Muslims we should " leave whats doubtful towards what is not doubtful", meaning that it is toward things without doubt, but not necessarily abandoning everything with a fraction of doubt, and cause harm to the family and the society, which is sometimes the misinterpretation of this hadith. In this case, one should not force their families to live in rent, if it harms them, if they can make use of these Islamic loans, as the basic purpose of Islam is to ease our life, unless one is very strong. May Allah give us strength to practice Islam even when it is not convenient.

And Allah knows best.

http://www.amjaonline.org/en/articles/entry/amja-resident-fatwa-committee-resolution-about-islamic-home-financing-companies-in-the-us


JazakAllahu Khairin

A student of knowledge.
AbuArman Jumani

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