economic thought in the qur"àn and sunnah 51
when used in the Qur"àn, the word is used in a particular Qur"ànic
reference to the act of giving money at a fixed increase, which
is emphasised further by defining the word by the article ‘al’
meaning ‘the’. Hence, the verb ‘Yurabi’ and the noun Murabi"
to refer to the act of giving money at a fixed increase and the
person who does such an act, respectively. These words are used
in the Qur"àn specifically in this particular sense. The word Ribà
is not the only word that has become confined to a specific tech-
nical Qur"ànic usage; there are many others that have developed
in this manner. As in many sciences, including economics, words
can develop into having a dual capacity, one linguistic and the
other technical. Sharì"ah is no exception. It is not unusual to see
scholars differentiating between the two functional roles of the
word, one linguistic and another technical. The technical definition
of the word Ribà"as such is emphasised further in the following
Qur"ànic and Sunnah references.
- Qur"ànic reference: this is demonstrated in two main areas:
a. Verses 2:275–279 in which the rule, hence the definition, is
explicit, “... if you repent you have the right to your princi-
pal, Ru"aùs Amwalikum”. It follows that the principal or capi-
tal sums, Ru"aùs Amwalikum, is the only financial right which
the lender has over the borrower. This defines clearly the
meaning of Ribà, as the difference between the amount bor-
rowed, the principal, and the amount due to be paid back,
which includes the interest as it is called now.
b. The Qur"ànic distinction between trading and Ribà. Although
both, trading and lending at interest, Ribà, generate an ‘increase’
in capital, the former is permitted while the latter is forbid-
den, “God has permitted trading but has forbidden Ribà”
(Qur"àn, 2:275). If both, Ribà and trading generate increase
in capital and one is permitted while the other is prohibited,
they cannot be of the same nature. The difference lies in the
risk factor and the estimated balance between risk and gains
in the allocation of both to the involved parties. While par-
ties share both risk and gains in trading, risk lies solely on the
borrowers in Ribàoperations. In this sense, Ribà, distinguished
from profit in trading operations, is the interest as understood
today regardless of being excessive or otherwise.
3 .The Sunnah: these have also made it clear that Ribà is any
