Commercial transaction

It is said that the Classical books of fiqh are ordered in the sequence in which you will need the information that corresponds with what stage of life you are in. In example before you pray you need taharah and Taharah is the first chapter of the book, after tarah you need to preform your 5 daily salat then after salah you will need to give or receive zakat considering most of the world is poor currently and historically its likely you would be in need of receiving zakat and knowing its rules are a benefit for the giver and recipient. once you have money for zakat you have money for hajj then you can be married or possibly divorced in which you will need to have knowledge of fiances in order sustain your wives and children life then eventually dying and needing your inheritance distributed. In this we can see how the books of fiqh are ordered in accordance to the order in which you will need the information although some fiqh books are in slightly different order, how amazing it is to know that this was the education of the Muslims who would learn these books in their youth, at young ages they were mature and ready for life.

A valid commercial transaction has 3 requirements

• 1. A statement from the seller and the buyer which announces the ratification of the transaction. An example would be saying “I have sold it to you” and he responds “I have bought it” or an equivalent action that indicates mutual consent. Its not the exact words that are needed but rather transferring a meaning to consenting to the transaction which both comprehend. It is haram for the seller to change the items after being sold without consent (if you wanted to buy Iphone 15 and you paid then he switches to iphone 14 afterwards)
• 2. The validity of the 2 parties who are conducting the exchange. They need to be legally capable meaning they have proper mental faculties someone who is mumayaz, who can understand he is being addressed verbally and can reply appropriately. If someone does not have this state due to being a youth or insane or intoxicated then they cannot legally make a transaction without a proxy. Sheikh sharnubi says imam shafi and abu hanifa says such a man can make a transaction  
• 3. The thing which is transacted has 5 conditions (object of the transaction, what is being bought and sold)

There 5 conditions of what is being sold are as follows

• 1. Taharah, it is something ritually pure, you cannot sell something that is not ritually pure such as pork or alcohol or feces or something that is contaminated with filth which makes it damaging to your health and even a unlawful transaction provided you have a choice in the matter (in a time of poverty it would not be haram but highly not recommended). Sheikh sharnubi mentions if that what you sell that is dirty can be made to be clean such as a dirty thobe it can be sold if having the assurance that it can be made clean once it is washed but if it cannot be made pure once more then its haram to sell such a item as well as it being false advertisement.
• 2. It should be of lawful utility meaning something that is useful being sold. If you were to sell a riding horse that is close to death that would be haram to sell as he is useless for his general purpose as he cannot be ridden for travel or Jihad, horse is haram to be eaten and haram to be sold if its near its death as its useless unless the person who is buying is aware that it is near its death and perhaps he wants to own a horse despite its poor health but is haram if the defect in the beast is not stipulated
• 3. You must have the capacity to delivered what is being sold, what you sell must be in your possesion. You cannot sell a runaway slave or a camel that has been already sold or a fish that is in the water or selling bees which are in the air as the buyer has no guarantee that the product would be delivered. If you were to buy a plot of land in the metaverse perhaps it is halal because you own that plot of meta land despite it not being physical its something you have access too in the digital space which is essentially a arrangements of pixels on the screen or purchasing software. Another modern example is selling futures which means your a selling the future profits of a company which has a undetermined outcome and its not currently in hand Allahu a’lam
• 4. The price and quantity are aware of and are agreed upon. If one of the two people do not know the price then it’s a invalid transaction, buying a chunk of rock and you don’t know what minerals are in it as you cannot determine composition of the rock and if not stipulated that is a valueless rock being sold this is incorrect. In modern example is a loot chest in a video game in which you cannot determine its final value nor its outcome nor can its outcome be influenced which is essentially gambling its its purest form whereas stocks you can influence its outcome separating it from gambling. A simpler example is selling someone “a lot” of fruit to someone in which it does not specify its exact amount is invalid, the proper way is to specify its exact weight not leaving it ambiguous example “I am selling 1kg of fruit.”
• 5. The thing being sold is not specifically prohibited in the religion, In example the buying and selling of dogs has been made haram by the messenger and the services of the astrologist.  You are allowed to own dogs but forbidden to sell dogs, you cant sell what is prohibited to be sold.

Usury/Interest/Riba

There are 2 types ربا الفضل و ربا النَساء

• 1. Returning more than you were loaned (Riba al fadhl)
• 2. A delay in money so being charged on a delay (Riba an nasa)

Selling less dirham for more dirham

It is not permissible to sell 2 dirhams for 3 dirhams of the same currency or 1 dirham for another dirham in another day or another hour. You are not producing value your just selling more for more money and is a form of riba. Similar even far worse to sell paper money a dollar or Euro for 2 dollars or 2 euros. All transactions like this are haram!

Why is Riba prohibited?

The philosophy of its prohibition is that it produces a widespread negative effect that we can clearly see in the modern 21 centry. Riba banking allows the rich to get richer and the poor to be stagnant in their position or poorer which creates a imbalance of wealth in the society. If you have money you will have a easier time to create new wealth making yourself richer with ease where as the poor are left to the mercy of the rich whom may not be beneficent.

Moore’s law in regards to tech, Riba’s law in regards to wealth

Moore’s law is a mathematical observation that the amount of transistors in tech will increase 2 times it self every 2 years making the rate of change of computing power effectively accelerate rapidly over times. I have coined a new phrase named Riba’s law and In regards to wealth I see a similarity to moores law in how wealth can only accelerate for those who have more of it over time and the Riba system perfectly allows hoarding of wealth. If you had $100 and you doubled you wealth each year in 10 years you would have $100,000 and if you doubled wealth for another years you would have $102,400,000 in only 20 years from doubling your wealth, with riba its possible to more than double your wealth yearly perhaps triple at the detriment of the common man whom in that 20 year who did not double his wealth even once!’

What does Islam say about this?

Islam does not support a large concentration of wealth to a few men who drains wealth from others (the majority of the world) and Islam is against the locking up of money in financial speculation in which there is not clear growth and that creates inflation in which money looses its value so not only did you not double your money once whatever you managed to save has lost its value effectively making you poorer despite not decreasing in the rate of work. This is one of the many reasons why most countries in the world are poor including Muslims lands as the money of the world is controlled by a few who are in a state of kufr whom do not good intentions in heart for the world.

Is it permissible to buy low and sell high?

It is halal to buy a product at a low price to sell it for a higher price at a later time or in a different locality such as buying shoes and selling them at a later time once their quantity become rare or buying fruits in one place cheaply and selling it in a different marketplace for a higher price in which the inhabitants are willing to spend more. You cannot omits (fail to mention) the problems and defects of a product you are selling you must disclose that before selling it to a potential buyer.  

The Muslim worlds current situation in regards to riba banking system

The banks of the world build their wealth on riba and Muslim countries are struggling to break free of such control, if a Muslim wants to break free from the current riba system they (Riba banking cartel) will work hard at destroying the non interest based system he seeks to implement as well as attacking the individual himself who calls to the Islamic shariah system which prohibits Riba!

The predatory and exploitation effect upon Muslims lands due to Riba

The failure of Muslim nations to break free from the Riba system has contributed to their military and economic weakness which creates brain drain (mass exodus of educated people seeking a better life) which contributes to them needing alliances with nations of kufr who in exchange for wealth they will request a reduction of Islam in society or imprisoning of great Islamic thinkers or perhaps even military jurisdiction to launch wars of aggression upon other Muslim nations whom have yet to kneel to the kufr system from your Islamic territory (Iraq war, Afghan war, banning of niqab in north Africa, occupation of west Africa and counter terror etc) you being tied to the nations of kufr or rather blackmailed by them makes it so you cannot easily refuse their offer least your own kingdom defaults upon its loans creating strife and uprising in your own land.

Is the current Islamic banking system the solution?

We see that currently most Islamic banks are not true Islamic finance as they keep riba in practice but call it by a different name such subscription fees but I think its possibly a slight improvement to the current riba system as it shows Muslims in mass have no forgotten the Riba is haram and Muslims are trying to implement something Islamic in place of a haram system!