1. Islam prohibits Riba (interest/usury) based on several Quranic verses that warn of severe punishment for those who consume or deal in Riba. 2. The Quran clarifies that trade is permitted but Riba is forbidden, and distinguishes between the two. 3. Hadith further emphasize the prohibition and consider even small amounts of knowingly consumed Riba to be graver than major sins in God's sight.

1. BUSSINES MISCONDUCT- RIBA
NURUL AANIS FATIHAH
QUTRATUN NADA 1125050
NOOR SAKINAH 1127424
NUR BASIRAH 1122752

2. Definition of Business and Business Misconduct
 Allah describes people who attain successs as
those who are “inviting to all that is good
(khayr), enjoining what is right (ma;ruf) and
forbidding what is wrong (munkar). This will
help Muslim community who are in business
avoid the possibilities of corruption or
problem in future.

3.  In an Islamic context the most term most
closely related to ethics while doing business
based on the Qur‟an is khuluq.
 The Qur‟an also uses a whole array of terms
to describe the concept that is khayr
(goodness), birr (righteousness) , qist
(equity), adl (equilibrium and justice), haqq
(truth and right), maaruf (known and
approved) and taqwa (piety).
 Absolute honesty in business and commerce
is really an Islamic concept.

4.  Prophet Muhammad (PBUH) who, on the one
hand, urged his followers to adopt trade as
their profession
 On the other hand, exhorted them to observe
truthfulness and honesty in their business
transactions.
 Accordig to Imam al-Ghazali
◦ to adopt trade as a profession or to set up his
own business should first acquire a thorough
understanding of the rules of business
transactions codified in the Islamic Shari'ah.

5.  Importance of fairness in business as stated in
the al-Quran:
"And, O my people, give full measure and
weight justly, and defraud not men of their
things, and act not corruptly in the land
making mischief. What remains with Allah is
better for you, if you are believers" (Hud 11:
85-86).
 Business should be based on the fundamental
principle of "Ta'auanu ala birri wa't-taqwa"
(mutual co-operation for the cause of
goodness or piety).

6.  Prohibited business in Islamic way. That is
◦ Monopoly business
◦ Speculative business basd on selfish interest.
◦ Interest transactions.
◦ Transactions similar (in nature) to gambling
◦ Munabadha and Mulamasa.
Forbidden interest or in Islamic word Ribaa.
In Surah al-Baqarah:275
“ But Allah has permitted trading and
forbidden interest ( Ribaa)”

7. Meaning:
According to Hazrat Shah Waliullah Dehlvi, riba is a loan with the
condition that the borrower will return to the lender more than the
quantity borrowed.
In the Quran has mentioned several times about riba, for example:
“If the creditor received a goat as mortgage from the debtor, the
creditor may use its milk to the extent he has spent in providing
fodder to the goat. However, if the milk is more than the price of
the fodder, the excess is riba,”

8. Type of riba:
1)
- The term Nasi‟a means „postpone‟ or „wait‟.
- Riba al-Nasi‟a is equal to the interest charge on loans. In
other word, this type of riba is an advance of a positive rate
of return on a loan as a reward for waiting the borrower to
pay the debt.
2)
- Unlawful in the exchange of two counter-values where the
excess is measurable through weight or measure.
- Eg: excess taken in exchange of specific commodities(Al
amwal Ur Ribawiyyah) which are homogeneous
Narrated from Umar, The Prophet said: “ The selling of wheat
for wheat is riba except if its handed from hand to hand and
equal in amount. Similarly with barley and dates”
(bukhari1985, h.2026)

9. According to Imam Abu Hanifa on Riba-al-Fadl
• commodities must have two commo
characteristics
 Weight
 Volume
According to Imam Shafi on Riba-al-Fadl
• commodities must have two common
characteristics
 be a medium of exchange
 be edible

10. 1) Conventional banking
Money
BANK CLIENT
Money+Money(Interest)
2) Islamic banking
Goods& CLIENT
BANK
services
Money

11.  Differences between :
conventional Islamic
Is based on interest. Is based on profit or rent
Deals in money or papers. Deals in assets.
Actively participates in
Does not involve itself in trade
trade, production and
and business
valid services through
valid contracts.

12.  Economics-serious impact both to the society
and the country development. -misuse the
national wealth lead to inflation, increasing
the goods costs and imbalance economics
development. -country does not have enough
fund, so the other alternative is borrow some
money from the rich, money borrowed needs
to return back with additional amount.

13.  Riba can create havoc and chaos in peoples it
selves as the money taken by the givers will
make ones‟ rich easily without effort.
-Riba can lead to the disruption of responsibility
among the people. -lead the laziness of load
of efforts in earning income.
-slow down the development of business and
lead immoral act. - make
them drop their responsibility toward justice and
being a selfish. -arrogant and hard heartedness.
These kinds of attitude are riak and takbur which
are not a healthy lifestyle.

14.  The gap between rich and poor people,
increasing poverty, and lack of basic need.
- occur to insecure between people in a
country, when peoples are forced in need
money they tend to do everything bad. Or
in other words, the poor will not have
chances or their chances to move in a
better life are in slow progressing and
create stresses on them. -
riba makes the poor in disadvantages and
suffered, so they will lost or need to let go
some good opportunity.

15.  -not have a healthy competence as they got
money or their salary covered by riba more than
the profit they obtain. -used to get more
money on riba, then they do not have to work
hard and have a great competence with each
other, while at the same time they oppressing the
peoples around them which rely on them to live
their lives. -create a bad
image on a huge community and also the
nationality. But the most importance is in
religious aspect. -riba act can reduce the
interest of peoples in having a deal with this kind
of matter and distort the development of a
country.

16.  In religious matter, God can give punishment
on peoples who practice riba in no time
during life time and also in hereafter.
-riba is haram and it is a sin. -need
to repent on Him. -Allah is the
law giver, and He has the right to curse
anybody involving in riba.

17.  This happens when peoples giving away the
property or money for some purposes. People
tend to give and take riba when dealing with
business for example.

19. 1. Save our world from more
wars and famines.
2. Creating a just system.
3. Use the interest based system
on condition.

20. 1. Clarify why Islam prohibits Riba?
2. Quranic explainations.
 “O you who have believed, do not consume
interest, doubled and multiplied, but fear God
that you may be successful. And fear the Fire,
which has been prepared for the
disbelievers.” (Quran 3:130-131)

21.  “Those who consume interest cannot stand [on
the Day of Resurrection] except as one stands
who is being beaten by Satan into insanity. That
is because they say, trade is [just] like interest.‟
But God has permitted trade and has forbidden
interest. So whoever has received an admonition
from his Lord and desists may have what is past,
and his affair rests with God. But whoever returns
[to dealing in interest or usury]?those are the
companions of the Fire; they will abide eternally
therein. God destroys interest and gives increase
for charities. And God does not like every sinning
disbeliever.” (Quran 2:275-276)

22.  “O you who have believed, fear God and give
up what remains [due to you] of interest, if
you should be believers. And if you do not,
then be informed of a war [against you] from
God and His Messenger. But if you repent,
you may have your principal?[thus] you do no
wrong [to others], nor are you wronged.”
(Quran 2:278-279)

23.  “Avoid the seven destructive sins: associating
partners with God, sorcery, killing a soul
which God has forbidden- except through
due course of the law, devouring interest,
devouring the wealth of orphans, fleeing
when the armies meet, and slandering chaste,
believing, innocent women.” (al-Bukhari and
Muslim)

24.  “One coin of interest that is knowingly
consumed by a person is worse in God‟s sight
than thirty-six acts of illegal sexual
intercourse.” (al-Tabarani and al-Hakim)