INTRODUCTION TO FIQH MUAMALAT

CONTENTS:Overview of IslamMeaning of IslamMeaning of ShariahComponents of ShariahCharacteristics of ShariahSources of ShariahMeaning of FiqhCharacteristics of FiqhSources of Fiqh

Components of fiqhDifferences between Shariah and FiqhDifferences between Islamic Law and Man made law

BANKING &FINANCIALACTIVITIESPOLITICALACTIVITIESAQIDAH(Faith & Belief)IBADAH(Man-to God WorshipMUAMALAT(Man-to Man ActivitiesSHARIAH(Practices & ActivitiesAKHLAQ(Moralities & Ethics) ISLAMSOCIALACTIVITIESECONOMICACTIVITIESISLAM AND SHARIAH OVER VIEW

Islam is derived from the Arabic root "Salema": peace, purity, submission and obedience. In the religious sense, Islam means submission to the will of God and obedience to His law

SHARIAH

The root Arabic word of Shariah is the verb sharaa. The literal meaning of sharaa is to open upon a street, like to open a door upon a street.

From sharaa, comes mashraa which means the road to the watering place; the straight path to be followed

In legal term sharaa means to make or establish laws. From sharaa also comes Shariah which in legal term means laws relating to all aspects of human life established by Allah SWT for his servants.

It also refers to the sum total of Islamic laws which were revealed to the prophet Muhammad S.A.W. and which are recorded in the Quran as well as deducible from the prophets S.A.W. divinely guided life style

Laws relating to human life are divided into three, i.e. those relating to belief, those relating to deeds and those relating to ethics. Thus, in this meaning Shariah is another word for Islam.

Evidence of Shariaah in the Quran Surah al-Jathiyah (45:18)

Then We have put you (O Muhammad SAW) on a plain way of (Our) commandment, so follow you that, and follow no the desires of those who know not.

Surah al-Maidah ( 5: 48) and We have sent down to you (O Muhammad) the Book (al-Quran) in truth, confirming the Scripture that came before it and a trustworthy witness over it (old Scriptures). So judge between them by what Allah has revealed, and follow not their vain desires, diverging away from the truth that has come to you. To each among you, We have prescribed a law and a clear way

SOURCES OF SHARIAHThe Quran

The Sunnah or traditions of the Prophet SAW which can be in the forms of: - sunnah qawliyyah/hadith (sayings) - sunnah filiyyah - sunnah taqririyyah

COMPONENTS OF SHARIAHAqidah or belief and faith this is the foundation of the ShariahAkhlaq or morality and ethicsFiqh or legal rulings governing the acts of human beings (al-ahkam al-fiqhiyyah)

Aspects of aqidah and akhlaq are fixed and eternal for all time and societiesAspects of fiqh change and vary from one nation/ummah to the other.

Characteristics of ShariahShariah is God-givenBased on Divine revealationComprehensiveEmphasize on generalFixed and eternal

The importance of Shariah A guidance to mankind in performing business transactionsProvides regulation that are liable to put right all of mans activities and decisionTo safeguard the interest of all parties eg. By having contracts (ijab and qabul)All transactions must be legal based on ShariahIt is also a condition that the parties possess capacity where a person is qualified for acquiring rights and undertaking duties and responsibilities

DEFINITION OF FIQH

The laws governing human deeds are called Fiqh, i. The true understanding of what is intendedii. The science of deducing Islamic laws from evidence found in the sources of islamic law/ understanding the laws relating to human deeds derived from their respective particular evidences

Rasulullah SAW said: To whomsoever Allah wishes good, He gives the fiqh (true understanding) of the religion.

CHARACTERISTICS OF FIQHHumanly acquiredGives more detailed rulingsA result of deduction and analysis of the Shariah sourcesIs subject to change and modification

COMPONENTS OF FIQH

(i) Ibadat (rituals)(ii) Munakahat (marriage or family laws)(iii) Muamalat (commercial transactions)(iv) Jinayat (offences, crimes and punishments)ToharahInternational relations etc

From the above components of fiqh, muamalat or commercial transactions are the component most relevant to Islamic financial system

The basis or backbone of fiqh al-muamalat is contract (aqd) between the parties involved.

SOURCES OF FIQHPrimary sources:The Quran and Sunnah

Secondary sources:Ijma or consensus of the Muslim scholarsQiyas or analogy to extend the law provided in the Divine text to new or unprecedented cases when both the text and the new case share the same effective cause (illah)

Istihsan or juristic preference-to depart from the legal precedent due to a reason which is more appealing or just (equitable considerations)

Urf or customary practice recognising customary practices and usages which do not contradict the Quran and Sunnah as good and authoritative especially in resolving disputes

Maslahah or public interst considerations: to argue that what is good is lawful and what is lawful must be goodMaqasid al-Shariah or the consideration of the objectives and purposes of Islamic Law; recognizing the need to safeguard the five fundamentals of islamic law. i.e. life, religion, intellect, property and lineage, according to three priorities dharuriyyat (neccessities), hajiyat (general needs) and tahsiniyyat (complementary needs)

Objectives of Islamic Law are the protection of:1. faith2. life3. intellect4. posterity and5. PropertyThese objectives are of three levels, that is:1. dharuriyyat (life and death)2. hajiyyat (removing hardship), and3. tahsiniyyat (beutifying)

The Quran

Al-Quran is the words of Allah revealed to the Prophet Muhammad s.a.w in Arabic conveyed by the angel Jibrail.The authenticity of the Quran as revelation: Surah al-Nisa(4:163); Surah al-Najm (53):3 and 4; and Surah al-Araf (7): 203.It represented the blueprint for the Islamic way of life

Al-Quran consists of 114 Chapters (surahs) and about 6235 verses (ayats). Al-Quran is the miracle of Prophet Muhammad s.a.w.It is the proof of the prophethood of Muhammad s.a.w. It is a miracle in the following aspects :1. Its language is in clear and pure Arabic of thehighest standard. No one can surpass its linguisticexcellence.

2. It contains information and stories about peoples of the past.3. It foretells future events which really took place afterwards as foretold.4. it tells about realities of nature : the creation of life and the universe, the orbits of the earth, the sun, the moon and the stars; and the formation of clouds and rains.

5. It contains laws and rules on how to regulatepolitical, legal, economic, social and moralmatters in society.There are 350 legal verses (ayat ahkam) in the Quran:-140 verses concern ibadat-70 verses concern munakahat-70 verses concern muamalat

Examples:A) Dealings between Allah SWT and manThese are the religious rites which are not valid without correct intentions. (Surah al-Araf (7:85)-performing solat. Fasting etc

Dealings among men and other creationsThe laws which govern human activities such as:Family law- marriage, divorce and inheritanceTrade-business transactions, rental, contracts production, consumptionCriminal law- punishment, compensationEtc.

MUAMALATMuamalat is plural and the singular is muamalah.Muamalah is from the verb aamala literally meaning to interact. Muamalat means interactions or transactions.Commercial transactions are concluded through contracts which are permitted by the Shariah as evidenced by the Quran, the Sunnah and other sources of Islamic Law.