It is indeed a tragedy, that for decades many Muslim governments and so called Muslim scholars, imbued with western ideas, found serious weakness in Islamic principles dealing with trade and commerce. They believe that without the taking and giving of interest the whole economy will be paralysed, since it is the pivot around which the banking system in our capitalistic economy revolves.

The failure of Muslims to implement the beautiful, sound, tested and proven economic principles, which are a combination of both material and spiritual values, gave ammunition to those who advocated and promoted un-Islamic economic plans. The architects to these capitalistic, communistic or socialistic systems boldly claimed that Islam does not have a solution to modern day problems in the complex world of trade and commerce.

Islam only prohibited interest, the sale of a limited number of such items which cause harm to an individual or society and certain types of transactions. Islam, however, encouraged trade and considered it the best of professions provided it is not propelled by greed and fuelled by exploitation like present day economics. Islam does not encourage an economy which causes the enrichment of a few and brings misery and destruction upon the majority.

The scholarly articles on the basic features of Murabaha and Leasing, by Justice Moulana Muhammad Taqi Usmani, the world renowned jurist and an expert on both Islamic law and contemporary issues, gives comprehensive guidelines in particular to Islamic Banks which are now springing up all over the world and generally to all Muslims.

Alhamdulillah, these banks are disproving the contention that the Islamic Laws of commerce are antiquated and cannot succeed in inviting investments in a bank which does not guarantee a fixed return. These Islamic Banks are proving that the Islamic principles of "Mudarabah", "Shirkat", "Murabaha" etc are universal and for all ages. However, what is important is that the individuals or banking institutions must observe, comply with and fulfill the conditions necessary to male the transactions permissible and Islamically valid. If the conditions are not met the profits will not be valid - a concern which the author expresses in his introduction.

I wish to congratulate Al Baraka Bank for bringing out this publication and pray that the Islamic banks will play their much needed vital role in the community. May Allah Ta'ala protect such institutions from indulging in or transacting any business which could lead to increased profits but which Shariah condemns as impure or Haraam.


Brief Notes on The basic features of murabaha and leasing in the light of the Shariah.

Prepared By:
Mufti Muhammad Taqi Usmani

This is an edited version of the paper presented by the author in the First Seminar on the Shariah Audit of Murabahs held by Darul-Uloom Karachi in collaboration with Husain Shah Rahman (Chartered Accountants) in the auditorium of Masjid al-Bait-al-Mukarram in the month of October 1991. This booklet has been published with the consent of the author.

Page last updated: 2022-01-19