Abdulla Galadari - Inner Meanings of Islamic Finance: Understanding the Theory behind All Theories

Version 1

      Publication Details (including relevant citation   information):

      Galadari, A. (2011) "Inner Meanings of Islamic Finance:   Understanding the Theory behind All Theories," Proceedings of the   5th IIUM International Accounting Conference, 12 - 13   July, Kuala Lumpur, Malaysia.

      Abstract:

      For many centuries,   there have been many interpretations of the rules in Islamic   Finance. With the modern banking system, more challenges have   arisen throughout the world, especially with globalisation.   Reasons behind Islamic Finance have been studied within the   disciplines of philosophy and ethics of the financial system.   However this paper looks into deeper mysteries of Islamic Finance   and shows how Islamic Shari‘ah for commerce mirrors how Allah   deals with humanity. The longest verse in the Qur’an is known as   the verse of the loan (āyat al-dayn) [Qur’an 2:282].   This verse is analysed to understand how commercial contracts   permitted between people is mirroring the commercial contract   Allah makes with humanity, according to the Qur’an.

     

      Usury occurs from   loans with a fixed period of time (ila ajalin musamma).   The Qur’an also states that human souls are also loaned from   Allah for a fixed period of time. Also, the Qur’an states that   Allah buys from the believers their souls in return for   heaven.

     

      This paper looks at   how the Islamic rules of commerce and finance is exactly   mirroring how Allah deals with the souls of human beings, which   are loaned to them for a fixed period of time, and then sold back   to Allah. It shows what usury (riba) really means and   why only Allah is allowed to deal with usury, since even in   semantics, the word for usury (riba) and Lord   (rabb) in Arabic come from the exact same root.   Similarly the word for loan (dayn), religion   (dīn), and Judgment Day (Yawm al-Dīn) also come   from the exact same root. It also delves into the inner meanings   why during the call of prayer on Friday, commerce is prohibited   in the Qur’an.

     

      This paper uses a   unique method of esoteric exegesis (ta’wīl) of the   Qur’an to understand the beauty of its eloquence and how the   rules of commercial contracts in the Qur’an is exactly the   commercial deal that Allah makes with the souls. Once the deeper   and spiritual meanings of the rules are understood, then   understanding rules of commercial contracts between people   becomes plainly clear.

      Address (URL): http://sites.google.com/site/yourheartspeaks/Galadari_Riba_web.pdf