Historical Background :Muamalat &

Economic activities at the time of

Prophet’s Muhammad s.a.w.
1.Islam emphasize two aspects of life – worldly
and hereafter
2.Mecca peoples or Quraishi well known as a
caravan traders of commercial community.
Allah describe them, “For the covenants of
the Quraish,they covenant to travel in winter
and in summer, Let them worship(adore) the
lord of this house, who has fed them against
against hunger, and secured them from fear
(of danger) (al-Quraish 1-4)
What’s are another economic activities had
been done by the Quraish ???
 Eventhough they are known as civilized people in
trade but unfortunately, they are bias and unjust.
Meccan people divide into two group :
Rich merchants and poor people, trap into
economic slave
3.One of the muamalat practice among them are
half al-fudhul. Ahlaf’s was then to protect the
business monopoly & fudul’s was to maintain the
virtue, protect the poor & break the monopoly.
Ahlaf had surplus of capital & fudul suffered the
fund.
4.Prophet muhammad not only face the mentality
of shirk but economic monopoly.
• Prophet encourage his followers to work hard
and become strong (economically).”The strong
Muslim is better than the weak”. As well as
our prophet encourage involve in business,
“nine out of ten Allah’s bounties could be
found in trade”.
6. Muslim’s people under persecution and they face economic
boycott by Ahlaf within 3 years.It’s example the rich merchants to
extend their monopoly. Allah described the story Abu Lahab..

Perished be the two hands of Aby-Lahab and he is

already perished.
His wealth and what he earned availed him not.
Now he enters into a blazing fire.
And his wife too, carrier of firewood.
There is a rope of palm fibre in her neck.

7. After 13 years in Mecca Prophet migrate to Yastrib

(Medina).In Mecca Prophet struggle with monopolists, while
in Medina he faced another monopoly, ie monopoly of Land
Lord.
8. Most of Medinese are peasant & farmers. They disunity – Aus
,Khazraj, Jews – Quraizah, al-Nadir , Qainuqa’
 and Qainuqa’.Christian in Najran, agrarian.
They were not dominants in trade,so they
were easily for prophet to introduce new
reform in trade.
9.Islam developed together with the trade
activities by the Muslim. So, the reform
introduced by the prophet directly referred to
the revelation of Al-Quran. All negative values
keep avoid as directed in Quran such as…
 monopolists, gambling, hoarding, riba’.
Abu Lahab as a chief of monopolists. Allah
condemns monopoly of fund & capital. Allah
declare war to the riba’ activities.
10.Allah promises good return for proper
capital investment(2:261), al-Humazah 1-4,
Allah condemns who make rival between the
rich man in acquisition of wealth (al-takatsur
1-8) Allah’s trustee of his wealth(al-Hadid 7-
10)
Among the Land reform introduce by the
prophet to achieve social justice include the
restructuring of land ownership scheme,
introduce waqaf, joint plantation, kharaj & tax
or zakat, land leasing and the scheme of
succession(faraid). Land reform, directive in
surah al Hasyr.
• Prophet’s Muhammad saw keep the blue print
regarding the conceptual thinking of economic &
laid down the principles how to implement it.
• Among the important concept are, property & it
relationship to Allah & man, its development,
acquisition, disposal , circulation, ownership,
riba’, the concept of charity, contract, etc
• He is also outline & established some of the
institution such as Baitul al-mal, waqaf, zakah,
tax, jizyah, kharaj, inheritance,will, etc…
 Definition Fiqh muamalat
• Word muamalah encompasses all the hukm
(ruling) & ordainment of the shariah in the
wordly affairs of humans among themselves.
• Ibn ‘Abidin stated, ‘The components of
muamalah are divided into five, wealth
exchange, marriage affairs, juristic affairs,
inheritance affairs & amanah (trust)
• Majority fiqh scholars, FM specify it to the
ahkam (ruling) pertaining to the wealth only.
 Fundamental principles of FM
• One of the principle, to achieve well being to
the community
• Evidence : ‘the prices had spiked during the
time of the prophet saw, so the people said, O
the messenger of Allah, fix prices for us,
thereupon Prophet said, Verily Allah is the one
who fixes prices, who withholds, who give
lavishly & provides & I hope that when I meet
Allah, none of you will have any claim on me
for an injustice regarding blood or property’.
 2nd principle
• Upholding justice…
at the time of tabiin, Said bin Musayyab
permits to set the ceiling price to protect the
buyers. The previous is to protect the sellers.