INTRODUCTION TO ISLAM

TIJARA (Trade and Commerce)

1. Wealth and property

a) Islamic teachings on the acquisition of wealth
✓ You should acquire your wealth through legal means.
✓ Use the wealth you acquire to please Allah (SWT) through giving of zakat, Sadaqat, assisting the needy among other useful ways. Do not use the wealth extravagantly.
✓ All transactions involving trade should transparent.
✓You should not exploit or take advantage of the customer or other business parties for his own gains.
✓You should honour agreements and contracts in a business transaction.
✓ Have trust in Allah (SWT) as the provider and sustainer such trust should lead one to working hard and keeping his performance at its best while fearing Allah (SWT) in the acquisition of wealth.
✓ While transacting business there should be mutual consent between the parties.
✓ Mutual respect and consideration for others is a virtue that should be observed during acquisition of wealth.
✓ Agreements between parties, involving future obligations should be recorded.
✓ Practice justice, honesty, and fairness between each other regardless of race, faith, creed, ethnic background, or any other differences.
✓ Be considerate and take into account the interest of the others in the acquisition of wealth. Do not engage in activities that may bring harm to the community or the environment.

b) Sources of earning

i) Legitimate sources of earning
1. Trade activities on lawful commodities
Islam has permitted all legal trade. However, a Muslim should follow the Islamic teachings while carrying out his business. We shall look at the lawful and unlawful act in trade later in this chapter. You should make reasonable profit during trading activities.
2. Agricultural activities
Agriculture consists of arable activities which are mainly concerned with growing of crops or keeping livestock for subsistence and commercial purposes.
3. Employment activities
A Muslim can earn his or her income through legal employment. It is the provision of human expertise and services in exchange for money. This may include; service industry like teaching, hotelier or working in production industries or institutions among others. Through this employment, when may earn salaries, wages, or commissions.
4. Investment e.g. house rent on commercial house, business premises, rates on land and income from rented equipment e.g. hiring of tends, farm plantations among others.

ii) Illegitimate earnings
Such earnings are haram, and a Muslim is prohibited from consuming. The sources of such earnings are as:
i. Hoarding of goods.
ii. Smuggling goods or transacting business in black market.
iii. Dealing in harmful and expired products.
iv. Money or capital obtained through gambling or games of chances. Islam teaches one to earn through his own sweat, yet the process of gambling involves earning without striving. Easy money or money without work is prohibited in Islam.
v. Engaging in products that are haram like narcotics, intoxicants, pork, and other prohibited products.
vi. Selling items that are legal while one is certain that they will be used for illegally e.g. drugs (knowing that they are going to be abused), weapons and fruits (knowing that they will be used to make intoxicants).
vii. Mediation and brokerage of goods that are haram e.g. wholesalers and commission agents in businesses that are haram.
viii. Rent and rates from properties leased to haram businesses e.g. brothels, bars, casinos, night clubs among others.
ix. Utilities that offer services that are haram e.g. lodges from where adultery, fornication and other prohibited activities are carried out.
x. Child trafficking, slavery, conman ship and any other way that is suppressive to human dignity.
xi. Acquiring property through fraud or devious means.
xii. Exploiting the weak by taking advantage of their weakness to enrich oneself e.g. exploiting widows, orphans, divorcees, physically or mentally impaired persons among others.
xiii. Sale of animals that are haram according to the Qur’an and hadith. However when a halal animal dies before it is slaughtered a Muslim is allowed to use its parts such as; skins, horns, and bones e.g. for industrial purposes.
xiv. Illegal farming like the cultivation of bhang.
xv. Trade on stolen, looted, and vandalized properties or items.
xvi. Any kind of business transaction involving uncertainty. The Sharia forbids transactions involving unspecified quantities and acceptance of money where there is uncertainty e.g. acceptance of money for fish in the river or a bird in the air. However if the level of uncertainty is minimal, the transaction is allowed. It should also be noted that Islam allows payment on goods to be delivered at a later date when the measurements are known.
xvii. Acquiring money through usury (interest).