Foreword and about the author
Foreword
A number of people often wonder whether Islam has also, like some other major religions, prohibited interest. They also wonder whether there is any solid socio-economic rationale behind this prohibition and whether it is feasible for Muslims to establish a financial system without interest in the modern times when the conditions seem to have changed drastically from the Prophet’s days. Dr. Chapra has tried to answer these questions in three brief papers written in a simple style to make them easily understandable by even the layman. Those who desire a more elaborate answer may wish to read the extensive literature produced on the subject by him and other scholars during the last quarter century.
These papers were first published during the year 2001 in three different issues of the monthly Ahlan was Sahlan, which is the in-flight magazine of the Saudi Arabian Airlines. They are highly appreciated because of the convincing manner in which they throw light on an important aspect of Islamic teachings. The Islamic Da’wah Movement, therefore requested Dr. Chapra to revise and update them for publication in the form of a booklet. He kindly acceded to our request and did the needful.
Dr. Chapra (born 1933), now a Saudi citizen, is presently serving as Research Advisor at the Islamic Research and Training Institute (IRTI) of the Islamic Development Bank (IDB). Before joining IRTI in November 1999, he worked at the Saudi Arabia Monetary Agency (SAMA), from where he retired as Senior Economic Advisor after a long service of 35 years. He has also taught in the United States at the Universities of Wisconsin and Kentucky and worked in Pakistan at the Institute of Development Economic and the Islamic Research Institute. He has made seminal contributions to Islamic Economics and Finance over more than three decades in the form of 10 books and monographs and more than 70 papers and book reviews. Consequently, he has received a number of awards, including the Islamic Development Bank Award for Islamic Economics and the King Faysal International Award for Islamic Studies, both in 1990.
I take this opportunity to extend my grateful thanks to Sh. Muhammad Rashid for the secretarial assistance provided by him in the preparation of the papers.
Dr. Ebrahim Dada
National Executive Director
Islamic Da’wah Movement of Southern Africa (IDM)
Durban, South Africa
About the author
DR. MUHAMMAD UMER CHAPRA is presently serving as a Research Advisor at the Islamic Research and Training Institute (IRTI) of the Islamic Development Bank (IDB). Before joining IRTI he served as the Senior Economic Advisor to the Saudi Arabian Monetary Agency (SAMA). Dr. Chapra has published widely on Islamic Economics and Finance and is justly regarded as one of the pioneers of this subject. His most outstanding and widely acclaimed contributions have been towards a Just Monetary System (1985) and Islam and the Economic Challenge (1992). For his valuable contributions to the subject, he received the prestigious King Faysal International Award for Islamic Studies and the Islamic Development Bank Award for Islamic Economic, both in 1990.