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''Muamalat'' (also ''muʿāmalāt,'' ar, , literally "transactions" TBE, "CHAPTER A1, INTRODUCTION TO ISLAMIC MUAMALAT", 2012: p.6 or "dealings") is a part of
Islam Islam (; ar, ۘالِإسلَام, , ) is an Abrahamic monotheistic religion centred primarily around the Quran, a religious text considered by Muslims to be the direct word of God (or '' Allah'') as it was revealed to Muhammad, the ...
ic jurisprudence, or ''
fiqh ''Fiqh'' (; ar, فقه ) is Islamic jurisprudence. Muhammad-> Companions-> Followers-> Fiqh. The commands and prohibitions chosen by God were revealed through the agency of the Prophet in both the Quran and the Sunnah (words, deeds, and e ...
''. Sources agree that ''muamalat'' includes Islamic "rulings governing commercial transactions" and Majallah al-Ahkam al-Adliyyah). JALIL, et. al., ''FOUR INTRODUCTORY THEORIES OF FIQH MUAMALAT'': p.8 However, other sources (Oxford Islamic Studies Online, Brian Kettell, and Wahbah al-Zuhayli’) give it a broader definition including civil acts and in general all aspects of fiqh that are not '' Ibadat'' (acts of ritual worship such as prayer or fasting). (See organizational chart of the structure of Islam below in "Principles" section.) Chik, ''Shariah in Islamic Finance'': p.5 Lee, "Islamic Banking Law", 2015: p.29 ''Mu'amalat'' provides much of the basis for
Islamic economics Islamic economics ( ar, الاقتصاد الإسلامي) refers to the knowledge of economics or economic activities and processes in terms of Islamic principles and teachings. Islam has a set of special moral norms and values about individua ...
, and the instruments of Islamic financing, and deals not only with Islamic legality but also social and economic repercussions and the rationale of its prohibitions (according to Monzer Kahf). Even a broad definition of Muamalat does not deal with ''all'' aspects of property and money in Islam, as ''
zakat Zakat ( ar, زكاة; , "that which purifies", also Zakat al-mal , "zakat on wealth", or Zakah) is a form of almsgiving, often collected by the Muslim Ummah. It is considered in Islam as a religious obligation, and by Quranic ranking, is ...
'' — compulsory alms giving that is one of the
five pillars of Islam The Five Pillars of Islam (' ; also ' "pillars of the religion") are fundamental practices in Islam, considered to be obligatory acts of worship for all Muslims. They are summarized in the famous hadith of Gabriel. The Sunni and Shia agree o ...
— is part of '' Ibadat'' division of ''fiqh''.


Definitions

*commercial and civil acts or dealings under Islamic law, (Oxford Islamic Studies Online); *what involves acts of interaction and exchange of sureties and sales (Oxford Dictionary of Islam); *“the knowledge of Shariah rulings that relates to the practical aspects of a mukallaf (an accountable Muslim, i.e. an adult and mentally competent) in the area of business and financial dealings and derived from its detailed evidences.” (Abdullaah Jalil, Asharaf Mohd Ramli, Syahidawati Shahwan. Based on the definition of fiqh established by the founder of the
Shafi'i The Shafii ( ar, شَافِعِي, translit=Shāfiʿī, also spelled Shafei) school, also known as Madhhab al-Shāfiʿī, is one of the four major traditional schools of religious law (madhhab) in the Sunnī branch of Islam. It was founded by ...
school of fiqh, Al-Shafi‘i (204 AH)) JALIL, et. al., ''FOUR INTRODUCTORY THEORIES OF FIQH MUAMALAT'': p.6 *all engagements that take place in business, ("corporate sharia elite" according to Patricia Sloane-White); *Islamic jurisprudence of transactions, and the principles upon which Islamic finance is based (M.R. Ab`Aziz); also the study of "the legal framework within which economic transactions are conducted in an Islamic society" and that "determines their contracts" (Monzer Kahf); *that aspect of Islamic jurisprudence that deals with civil obligations, (Jamal J. Nasir); *"any form of mutual dealings held between men to solve their everyday needs, especially in matters relating to trade and commerce"; also "a social relationship which consists of various economic and non-economic activities." (''Takaful Basic Examination'' of Islamic Banking and Finance Institute of Malaysia). According to at least one author (Monzer Kahf), ''Mu'amalat'' "sets terms and conditions of conduct for economic and financial relationships in the
Islamic economy Islamic economics ( ar, الاقتصاد الإسلامي) refers to the knowledge of economics or economic activities and processes in terms of Islamic principles and teachings. Islam has a set of special moral norms and values about individua ...
" and provides the "grounds on which new instruments" of Islamic financing are developed. It also extends beyond discussions of Islamic legality "to the social and economic repercussions of alternative legal forms of economic or financial relationship and analyze the rationale behinds icit." Kahf, "Relevance definition and methodology of Islamic Economics": p.46


Principles

According to Hosein Askar, Zamir Iqbal, and Abbas Mirakhor, a "significant subset" of muamalat "defines the conduct of economic activities" within the economic system, which "ultimately lays down the rules for commercial, financial and banking system."


Basic principles

According to Aznan Hasan, basic principles of muamalat, are that dealings and contracts in Islam ... *are permissible until evidence is given proving otherwise; *must be based on mutual consent; *must be in accordance with the maqasid (goals of) al shariah; *should facilitate the circulation of wealth and property; *should be transparent; *must observe justice and fair dealing.Aznan Hasan, ''Fundamentals of Shariah in Islamic Finance'', pp. 193-199, as cited in


Theories of Muamalat

According to Abdullaah Jalil, Asharaf Mohd Ramli, Syahidawati Shahwan there are four "theories" that underlie the framework of Mu'amalat dealings: JALIL, et. al., ''FOUR INTRODUCTORY THEORIES OF FIQH MUAMALAT'': p.16-7 #''Ahliyyah'' (Legal Capacity). Legal capacity refers to whether the person is of sound mind and old enough (puberty) to enter into a legal financial contract. #''Mal'' (Property) concerns the nature and types of property that the contract deal with. ##Property must exist at the time of transaction ##seller must be owner of the merchandise ##merchandise must be Islamically lawful ##must be of some use or value ##must be able to be delivered by the seller to the buyer ##the details of the merchandise must be known to both the seller and buyer #''Milkiyyah'' (Ownership), concerns the types, methods and scopes of ownership, that affect the relationship between the property and its owner in Islamic jurisprudence. #Aqd'' (Contract), describes the framework or structure of a contract in fiqh. Jalil, Ramli and Shahwan also note that the development of ''Mu'amalat'' rules is less strict than Ibadat''.


General Prohibitions

According to muamalat, contracts ... *should not involve the selling or buying of
alcohol Alcohol most commonly refers to: * Alcohol (chemistry), an organic compound in which a hydroxyl group is bound to a carbon atom * Alcohol (drug), an intoxicant found in alcoholic drinks Alcohol may also refer to: Chemicals * Ethanol, one of sev ...
or any other ''
haram ''Haram'' (; ar, حَرَام, , ) is an Arabic term meaning 'Forbidden'. This may refer to either something sacred to which access is not allowed to the people who are not in a state of purity or who are not initiated into the sacred knowle ...
'' substances. TBE, "CHAPTER A1, INTRODUCTION TO ISLAMIC MUAMALAT", 2012: p.8 *should not include any financial deal on the basis of usury (''
riba The Royal Institute of British Architects (RIBA) is a professional body for architects primarily in the United Kingdom, but also internationally, founded for the advancement of architecture under its royal charter granted in 1837, three supp ...
'') *should not involve gambling (''
maisir In Islam, gambling ( ar, ميسر, translit=maisîr, maysir, maisira or ''qimâr'') is absolutely forbidden ( ar, harām, script=Latn). ''Maisir'' is totally prohibited by Islamic law ('' shari'a'') on the grounds that "the agreement between p ...
'') *should not involves major uncertainty () (minor uncertainty is permissible).


Contracts

At least one source (a scholar identified as "Barbarti") defines (contract) as a “legal relationship created by the conjunction of two declarations, from which flow legal consequences with regard to the subject matter”. Chik, ''Shariah in Islamic Finance'': p.33 The essential elements of a contract are contracting parties (, a subject matter ''('Ma'aqud Alaih''), and a legally binding offer and acceptance (). They may be written, verbal or even indicated by signs (in the case of speechless person). Chik, ''Shariah in Islamic Finance'': p.34 Muamalat contracts are prominent in Islamic banking where they are "fundamental factors" that determine whether a "transaction is valid or not". Some contracts in ''Mu'amalat'' include: * Sale Contract; * Cost plus profit (''
murabahah ''Murabaḥah'', ''murabaḥa'', or ''murâbaḥah'' ( ar, مرابحة, derived from ''ribh'' ar, ربح, meaning profit) was originally a term of ''fiqh'' (Islamic jurisprudence) for a sales contract where the buyer and seller agree on the m ...
''); * Debt (''al-Qard''); * Hiring/leasing (''al-Ijarah''); * Lending (''al-I'arah''); * Agency (''wakalah''); * Mortgage (''al-Rahn''); * Partnership ('' Musharakah''); * Profit Sharing ('' Mudarabah'').Introduction to Fiqh Muamalat
Al-Madinah International University, page 2


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* * * * * * {{Islamic banking and finance Islamic banking Islamic practices Arabic words and phrases Islamic jurisprudence Islamic banking and finance terminology