The Law (Shari’aa)
&Shari’aa has as its main goal the protection of the self, the family, the
assets and wealth, and the faith in the community.
&Shari’aa focuses on the intent and not the form. The real test is the
outcome.^1
&The main objective of Shari’aa is to maximize the benefits to the family
and the community at large while pushing away what is harmful.
&Shari’aa requires those who make edicts (fatwa) to be knowledgeable
of the faith, the community, and the local conditions and systems
where the edict is solicited and applied.
&Shari’aa states that if it (the Law) cannot be applied in full, that does
not give believers an excuse to abandon it completely without attempt-
ing to the best of one’s abilities to apply whatever is possible.^2
&Shari’aa does not allow the use of ruses (deceptive tricks,heelah)or
circumventive structures that look Shari’aa compliant but in fact ignore
the intent and spirit of Shari’aa.Money
&Money is a thing and is fungible, like an apple or a loaf of bread. Fungi-
bles cannot be rented because the minute they are given to another, they
become an ‘‘investment’’ that is entrusted with those who accept it.
&Money cannot be rented by paying a price for using it. In the past, the
payment of a price or the use of the money was calledusury; now it is
called aninterest rate.
&Money is a measuring device and is useful only if invested. It can
only be invested in a useful activity, such as the purchase of an asset,
a service, or a business. Money does not grow on its own if not used.
It must be invested in a productive activity that produces a useful
outcome.
&Money cannot be loaned, except in the form of a good loan to those
who need it. A loan is conceptually looked at as a bite (qard) out of the
assets of those who have a lot of money; it is to be given to the poor and
needy without expecting any increase.
&Money is a measuring tool that is used to measure the value of the
product or service produced by this economic activity. The success or
failure of that activity is measured by how much value—measured in
money—is produced by that asset. The concept ofreturn on investment
is a measurement of the success or failure of that investment.
&Money must be real money, and real money must be a base commodity.
It can be gold, silver, or a basic food staple. Paper (fiat) money can be
used as a convenient tool of exchange and trade, but it must be related228 THE ART OF ISLAMIC BANKING AND FINANCE