Business and Islam

Business and Islam

by Helmi AJ – 7 Dec 2020

When Emmanuel Macron – the French President – declared that Islam is a religion in crisis all over the world on 2 October 2020, he distilled the perception that many people have all over the world about Islam. They see Islam as the primary opposing force to the progressive advance of modernity and equate Islam with terrorism.

Islam to them is backward and unsuitable for humanity. A set of ancient rules that shackle freedom and scientific thought. Muslims are looked at as resisting prosperity and focused merely on what happens in the afterlife – on jihad. To many people, Muslims have little value for life and would readily give up theirs for a cause unworthy of the civil-minded.

Nothing can be further from the truth.

Even if we take only one facet of humanity – our livelihood and the economy – we find Islam not only encouraging material pursuits but also prepares Muslims with knowledge and guidance for day-to-day success.

Islam has from the very beginning pushed Muslims to work and to indulge in business.

Muhammad – who Muslims believe to be God’s final messenger – had many friends and relatives who were wealthy. One of the richest people at the time was Abdul Rahman Bin Auf who rebuilt his business empire after the exodus from Mecca left him destitute. His friend, father-in-law and successor – Abu Bakar – was also a prominent businessman.

Muhammad himself was not unfamiliar with business as he accompanied his uncle on business trips from a very young age. Later in life, he was married to a merchantwoman – Khadijah Binti Khuwaylid – for 25 years.

Khadijah is revered as the Mother of Believers and her generosity and self-sacrifice were a significant part of her character. She readily helped the poor, the sick and disabled, and widows and orphans. She sent gifts for poor couples who wanted to marry. Her charity was made possible because of her vast fortune.

Khadijah was born to an important and wealthy family. She was bright and hardworking. Her father was a merchant and when he died, she took over the family business. She became very successful in her own right.

Her trade caravans were said to have equalled all the other merchants’ caravans combined whenever they gathered prior to travelling to Syria in the summer or to Yemen in the winter. She did not travel with the caravans. Instead, she had many workers and one of them was Muhammad.

She handpicked her agents who oversaw her caravans, negotiated deals in other cities and managed the large sums of money during each trip. For one the trips to Syria, she needed to hire an agent. Many men sought the position but were turned down.

The bar she set appeared too high for anyone. Obviously, trustworthiness was paramount in her mind when choosing someone in whose hands she would leave the caravan with all the valuable merchandise and money.

Most people would not be able to resist absconding with her property. Even in those times, money-related crimes were commonplace. You can learn more about modern-day money laundering and predicate offences in NVLC108 Pocketbook AMLCFT.

Khadijah had become aware of Muhammad who has been working for her. He was clearly a very diligent and honest man. She consulted Abu Talib Bin Muttalib – Muhammad’s uncle – before hiring Muhammad to manage the caravan. She placed her servant with the travelling party to observe and to report to her.

When the caravan returned, Khadijah learnt of its overwhelming success. The servant reported that Muhammad had been so honourable in his dealings such that profits were double what was originally expected. That experience earned Muhammad honorific titles such as the Truthful and the Trustworthy.

Khadijah continued to keep Muhammad in her employment. Her business grew as her merchandise found ready markets in the north and in the south amongst buyers concerned with avoiding being cheated and with the quality of the products.

While Muhammad and his family lived simply, there was no injunction for anyone to restrict themselves to the same lifestyle. People were allowed to have and to display luxury. These were gifts from God entrusted to them. They should neither be flaunted for out of arrogance nor to be wasted.

Muslims were encouraged to seek wealth because it enables them to:

1. give charity to the needy

2. support larger families that strengthen the population

3. pay taxes that go towards building schools, wells, transportation networks and other infrastructure

4. invest in researching science and philosophy

5. build a formidable army for defence

There is also no distinction between a man and a woman in business. Either could be successful depending on their effort. What separates them is how honourable they conduct their trade and how they spend their wealth.

Despite the prejudices of many people in the world towards Islam and Muslims, one area whose growth signify a remarkable global acceptance of its precepts is Islamic finance. This fastest growing area of finance is certainly proof that Islam is not only not in crisis but serves as a global solution for the economy. For more information on Islamic finance, you can take our course NVIF107 Fundamentals of Shariah-Compliant Finance.