summarize, review, and relate the hadith related to Islamic business and Islamic economic system

Review hadiths that relate to the Islamic Business(IB) and Islamic

No. hadtih Hadith Topics
Economics(IE)

The intentions is foundation in every actions. Therefore we should

always check our intentions before we do or say anything. We must
make sure that the action is for the sake of Allah so that it is
Actions are by accepted by Allah and that we will be rewarded for it. Again this
Hadith 1
intentions hadith can be relate to the IB and IE in terms of our intentions to do
business either in good purpose or for bad purpose same goes to IE.
All what we do must be intentionally sincere for Allah S.W,T and at
the end we granted reward and blessing from Him.

This hadith tell about five pillars of Islam, the beliefs that make up
Iman (including the belief of fate or qadar), the attainment of the
highest level of Iman which is Ihsan, the adab of seeking knowledge
and of teaching. In terms of practice by IB and IE, an entrepreneur
Hadith 2 Islam, Iman, Ihsan
need to understand the pillars of Islam, when the pillar is strong, so
the business will get blessing and right way to achieve Al-Falah, plus
the an entrepreneur have the Iman and Ihsan when practicing the IB
and IE and also have an ethics to seek knowledge and teaching.

This hadith refers to 5 pillars of Islam. It is a principles to all

individuals Muslim when he or she become a Muslims. To make sure
the IB and IE is comply to shariah, all the practice and the operation
either micro or macro level need to practice this 5 pillars or principle
Islam is Built Upon
Hadith 3 of Islam. All the Pillars of Islam have rulings, conditions and
Five
mannerisms (ahkam wa adab) applied to them. It is important that
we know these ahkam and adab and regularly remind ourselves,
especially before Ramadan or before performing the Hajj, so that we
perform the Pillars properly and according to the Shariah.

Deeds are by Their

Hadith 4
Final Actions

Rejection of Evil
Hadith 5 Deeds and
Innovations

Hadith 6 Protecting the Heart

The Religion is
Hadith 7 Naseehah (Sincere
Advice)

The Sanctity of a
Hadith 8
Muslim
 Obligations are
Hadith 9
According to Ability

Restricting Oneself to
Hadith 10
the Permissible

Being Cautious of the

Hadith 11
Doubtful

Leaving that Which

Hadith 12 Does Not Concern
You

Love for Your Brother

Hadith 13 What You Love for
Yourself

Prohibition of Blood
Hadith 14
of a Muslim

Hadith 15 Islamic Manners

The Forbiddance of
Hadith 16
Anger

Prescription of Ihsan
Hadith 17
(Perfection)

Follow Up a Bad Deed

Hadith 18
with a Good Deed

Be Mindful of Allah
Hadith 19 and Allah will Protect
You

Hadith 20 The Feeling of Shame

Say 'I believe in Allah'

Hadith 21
and then be Steadfast

Hadith 22 Entering Paradise

Hastening to Do
Hadith 23
Good

The Forbiddance of
Hadith 24
Oppression

Hadith 25 The Value of Charity

The Virtue of
Hadith 26 Reconciling between
People
 Righteousness is in
Hadith 27
Good Character

The Obligation of
Hadith 28
Following the Sunnah

Hadith 29 Means of Goodness

Do Not Neglect the

Hadith 30
Religious Obligations

The Reality of
Hadith 31
Asceticism

No Harming nor
Hadith 32
Reciprocating Harm

The Onus of Proof is

on the Claimant and
Hadith 33
The Taking of an
Oath is on the Denier

Changing Evil with

Hadith 34 the Hands, Speech,
and Heart

The Sanctity of the

Hadith 35
Muslim

The Virtue of
Gathering for the
Hadith 36
Remembrance of
Allah

The Grace of Allah

Hadith 37
and His Mercy

Attaining Nearness to
Hadith 38
Allah and His Love

Leniency for the One

who Errs, the One
Hadith 39
who Forgets, and the
One who is Forced

Be in This World As a
Hadith 40
Traveler

The World is the

Hadith 41 Means for Attaining
the Hereafter
 The Expanse of the
Hadith 42
Forgiveness of Allah

Entrepreneurship is a major part of Islamic Finance and Economics. There are several
successful Muslim entrepreneurs in the world today. Prophet Muhammad (P.B.U.H) and
his esteemed companions were businessmen of high caliber and strong morals. The
knowledge and wisdom that they imparted are the cornerstones of Islamic business
dealings today.

Unfortunately, with the passage of time, many Muslims have become corrupt, greedy
and conduct their businesses with dishonesty. Below we bring to you the timeless
wisdom and ethics that Islam encourages Muslims to adhere to while conducting
business:

 Faith(Taqwa) as the Major Framework

Muslim entrepreneurs must have faith in Allah (SWT) in order to prosper in their
businesses. Allah mentions in the Quran;

“O you who have believed, shall I guide you to a transaction that will save you from a
painful punishment? [It is that] you believe in Allah and His Messenger and strive in the
cause of Allah with your wealth and your lives. That is best for you, if you should
know.”(Al-Saff 61:10-11)
The reflection of the above verse is that a Muslim entrepreneur should have faith in
Allah and strive with his wealth to follow the path that Allah has ordained for him.

 Conduct Halal Business

Muslims are specifically required to conduct only those businesses which are
considered halal or acceptable according to the rules laid down by the Quran.
 Therefore, businesses which contain alcohol or any form of intoxicant and pork are
prohibited. Allah says:

“O ye people! eat of what is on earth, lawful and good; and do not follow the footsteps of
the evil one, for He is to you an avowed enemy. “(Al-Baqarah. 2: 168)
Earning halal income can be done via these ways; working for others, being self-
employed and employing others and ensuring that you are fair in all dealings.

 Keep Your Morals High

Practicing high moral values while conducting any business has been heavily
emphasized in the Quran and the hadith. Usury, dishonesty and all evil business
practices have been completely prohibited.

“But Allah hath permitted trade (bay) and forbidden usury (riba).” (Al-Baqarah 2:275)
The economic transaction of trade implies the existence of a business man, he should
conduct his dealings fairly.

 Trustworthiness
Prophet Muhammad (P.B.U.H) was a trustworthy individual and also encouraged his
companions to be the same. They conducted business in the most honest manner. The
following hadith is narrated by Hudhaifa that the Prophet said:

“Once a man died and was asked: “What did you use to say (or do) (in your life time)?”
He replied, “I was a business-man and used to give time to the rich to repay his debt
and (used to) deduct part of the debt of the poor.” So he was forgiven (his sins). Abu
Mas’ud said: “I heard the same (Hadith) from the Prophet”. (Sahih Bukhari. Volume 3,
Book 41: #576)
Furthermore, in another hadith, the Prophet is narrated to have said as follows:
“The truthful trustworthy merchant is with the Prophet (SAW) the True ones and the
martyrs (on the Day of Resurrection”. (Al-Tirmidhi. Book 14: #1213)
The above-mentioned rules are just a handful of the rules and requirements that a
Muslim entrepreneur has to abide by while making business transactions.

Ethical Guidelines for Muslims in Business

By Dr. Rafik Issa Beekun

Some general guidelines govern the Islamic code of ethics with relation to both one’s
daily life and business conduct. Muslims are required to behave Islamically in their
business dealings because Allah Himself is witness to their transactions:

In whatever business you may be, and whatever portion you may be reciting from the
Quran and whatever deed you (mankind) may be doing - We are Witnesses thereof
when you are deeply engrossed therein. (Quran-10:61).

Here are some key business principles that Muslims should follow.

• Be Honest and Truthful. Honesty and truthfulness are qualities which a Muslim
businessman should develop and practise himself. Truth, for example, has a self-
reinforcing effect. In a hadith reported in Sahih al Bukhari:

The Prophet (peace be upon him) said, “Truthfulness leads to righteousness, and
righteousness leads to Paradise. A man continues to tell the truth until he becomes a
truthful person. Falsehood leads to al fujur (i.e., wickedness, evil-doing), and al fujur
(wickedness) leads to the Hell Fire, and a man may continue to tell lies till he is
written before Allah, a liar.

Honesty is especially important for Muslim business persons. The need to make a
profit and the temptations to enhance the attributes of their product or service during a
sales pitch may distract them to exaggerate. This is why the Prophet said:

The merchants will be raised on the Day of Resurrection as evil-doers, except those
who fear Allah, are honest and speak the truth.

• Keep Your Word. In a hadith narrated by Abu Hurayrah, the Prophet is reported to
have said:
The Prophet (peace be upon him) said, “If you guarantee me six things on your part, I
shall guarantee you Paradise. Speak the truth when you talk, keep a promise when you
make it, when you are trusted with something, fulfill your trust, avoid sexual
immorality, lower your eyes, and restrain your hands from injustice.

• Love Allah More Than Your Trade. We must love Allah even if we have to sacrifice
everything else. Allah warns in the Qur’an,

Say, “If it be that your fathers, your sons, your brothers, your mates, or your kindred;
the wealth that you have gained; the commerce in which you fear a decline; or the
dwellings in which you delight - are dearer to you than Allah, or His Messenger, or
the striving in His cause - then wait until Allah brings about His Decision: and Allah
.guides not the rebellious. ( Quran-9:24).
• Be Humble in how You Conduct Your Life. Muslims must not lead a life of
extravagance, and must exhibit good-will in any transactions among themselves.

O you who believe! Eat not up your property among yourselves in vanities: but let
there be amongst you traffic and trade by mutual good-will: nor kill (or destroy)
yourselves: for verily Allah has been to you Most Merciful. ( Quran-4:29).

• Use Mutual Consultation in Your Affairs. In describing the characteristics of those

who will receive higher and more permanent gifts from Him, Allah stresses the
importance of consultation.

Those who hearken to their Lord: and establish regular prayer; who (conduct) their
affairs by mutual consultation, who spend out of what we bestow on them for
sustenance. (Quran-42:38).

• Do Not Deal in Fraud. Businessmen should avoid duplicity. They should treat others
in the same righteous and fair manner that they themselves would like to be treated.

Woe to those that deal in fraud those who when they have to receive by measure from
men exact full measure. But when they have to give by measure or weight to men give
less than due. Do they not think that they will be called to account? (Quran-83: 1-4).

• Do Not Bribe. Businessmen may sometimes be tempted to offer bribes or baqshish

in order to persuade another party to give them special favours or to allow them to get
away with dishonest practices. The practice of bribery is forbidden in Islam.

The Apostle of Allah (peace be upon him) cursed the one who bribes and the one who
takes bribes.

• Deal Justly. The general principle that applies across all transactions including those
pertaining to businesses is that of justice or adl. Allah emphasizes this point in the
Qur’an:

Deal not unjustly, and you shall not be dealt with unjustly. (Quran:2:279).