Lesson 1: Introduction and Revealed Guidance Navigation
From the course at Islamic Finance Guru – Messenger’s Money Morals
Why we (IFSG) are doing this?
Imagine if the prophet ﷺ was still alive today facing the financial environment we live in. What would he have done and how would he have reacted?
That’s the question the teacher in the course Messenger’s Money Morals, Mufti Faraz Adam, started with. Coincidentally, these questions and inspiration came when he was in the blessed mosque of the prophet ﷺ, Masjid An-Nabawi. The course is unique in a way that it tries to envision how the prophet ﷺ would face the contemporary financial world through the lens of the six canonical books of Ahadith (sayings, actions and approvals of the prophet ﷺ), known as Kutubu sitta (Arabic: الكتب السته). While the course is nearing completion (more than 100 lessons), and it might be a significant investment for students who want to learn Islamic Finance, we figured that this could benefit our community in one way or another. Ultimately, this is just a small effort to bring the beautiful message of Islam from our beloved prophet ﷺ to our community and the world.
If you are reading this, then know that while this is the first lesson, and an article notes will never do justice to the two hours of sharing by Mufti Faraz Adam, we seek your dua that Allah forgives our sins and allow us to do more contributions in the space of Islamic Finance and Fiqh Muamalat. We also seek your advice and feedback as we improve our small contributions day by day. Now let’s start:
Sources of Shariah in Islamic Finance
Many question where Islamic finance comes from, and whether all aspects of the Islamic finance industry is reflective of the guidance given by the sources of Shariah. To understand this, one must first understand the meaning of Shariah. The definition of Shariah linguistically, as described by Mufti Faraz Adam, is a path to a source of water. Meanwhile, Shariah may technically be defined as Islam’s legal code. However, why is Shariah called ‘Shariah’? Moreover, what is the connection between the linguistic and technical definition of Shariah? Mufti Faraz explained that Shariah is like a path to spiritual living and life growth. For instance, given a situation where one was in a desert, and the only available resource is water. Water would then be the most valuable resource and without it there would be no chance of survival. This path is viewed as Shariah and the water is the means to survival and growth.
The sources of Shariah consist of three aspects namely; the Qur’an, Sunnah, and Ijma’. The Qur’an is the holy book of Islam, whereas the Sunnah refers to the sayings and practices of the Prophet ﷺ and the companions of the Prophet ﷺ. Ijma’ or a consensus, is an agreement made by all jurists at a certain time.
What do Islamic Finance Scholars Look at?
In Islamic finance, scholars look for references in the books of Fiqh. Fiqh refers to codifications of the Shariah sources and extracting the rules. There are four schools of Islamic law which are Hanafi, Maliki, Shafi’i, and Hanbali. These schools are codifications or a methodology of purification, and coherent interpretations of the principles of the Qur’an and Sunnah.
Engaging with the Qur’an and Sunnah
Sunnah is defined as a clear path. From a technical perspective, Sunnah refers to everything that is from the narrative of the Prophet ﷺ and his companions. The actions, and sayings of the Prophet ﷺ and his companions are valuable and were used by jurists in understanding the practices of the Prophet ﷺ. From the view of the scholars of fiqh, the Qur’an and Sunnah mirror each other. This indicates that many actions of the Prophet ﷺ were mentioned in the Qur’an, and what the Qur’an has mentioned were also performed by the Prophet ﷺ.
Sunnah from a Transmission Perspective
- Verbal Sunnah: Sayings of the Prophet ﷺ.
- Physical Sunnah: Consists of the deeds, physical practices, and actions of the Prophet ﷺ.
- Tacitly Approved Sunnah: This refers to the acts and sayings of the companions which the Prophet ﷺ came to know of and of which he approved either through silence or express approval.
Different Practices of the Prophet ﷺ.
There are various practices of the Prophet ﷺ, from the practcies that formed part of the legal Islamic law to the practices that were specific to the Prophet ﷺ. For existence, in medication, the Prophet ﷺ practiced the use of honey, black seed oil, and dates for health. The Prophet ﷺ was very knowledgeable and intelligent, and every practice of the Prophet ﷺ has some guidance from it.
The Prophet ﷺ’s Opinion in Worldly Matters
The Prophet ﷺ’s advice consisted of advice on Islamic matters and his perspective on worldly matters. The narration of the Prophet ﷺ consists of two types. First, the narration pertains to convey the message (risala). This narration comes from Allah and the Prophet ﷺ has to follow and deliver the message. Secondly, is the narration that does not pertain to conveying the message. This refers to the Prophet ﷺ’s personal views as a human, which do not come from Allah SWT.
Types of Alignment with the Sunnah
- Sunan al-Huda: This refers to something practiced ritually. For instance, reciting the prayers during sujud three times rather than once.
- Sunan al-Zawa’id: Habitual practices of the Prophet ﷺ. For example, the way the Prophet ﷺ slept and the way he ate his food.
- Sunan Nizamiyyah: This refers to policy-making directives for large matters at a macro level. For example, when the Prophet ﷺ moved to Madinah, one of the first things he did was to search for a place to establish a market so that people could trade. Apart from that, he also made a peace treaty with the Jewish tribes. These actions refer to the Prophet ﷺ thinking strategically from a macro-perspective.
- Sunan Hayatiyyah: These refer to things that are natural in life which is beyond the Prophet ﷺ’s control. For instance, the day and time the Prophet ﷺ passed away, and having a certain amount of grey hair which the Prophet ﷺ had. Many people were happy to be able to reflect on the life of the Prophet ﷺ.
Introduction to Hadith
The components of the hadith consist of the Chain of narration (Sanad) and the text (Matn). An example of a complete hadith would be:
- Sanad: “Narrated by: Anas bin Malik, Abdul Aziz bin Suhaib, and Abdul Warith bin Sa’eed, Prophet ﷺ Muhammad said…”
- Matn: “None of you have true faith until I am more beloved to him than his father, his children, and all of mankind.”
In a chain of narration, the saying of the hadith is first stated by the Prophet ﷺ, which is received by a narrator, and passed on to multiple narrators, which finally forms the text (matn) of the hadith. The hadith is classified into the number of narrators. The first is Mutawatir (continuously recurrent), which means a report that is made by number of people. Second, Mashhur is reported by one, two, or more companions from the Prophet ﷺ. The third is the Ahad (solitary hadith) which is also known as Khabar al-Wahid. This refers to a saying that a single person reports. In terms of authenticity of the hadith, it is categorized into four different levels which are, Sahih (authentic), Hasan (sound), Da’if (weak), and Mawdhu’ (forged and fabricated). These authenticities in hadith may also differ in the different schools of thought.
Islamic Finance Guide
The principles of Islamic finance are derived from the principles of the Qur’an and Sunnah. It uses a principles-based approach to matters of business and transactions. The Qur’an has mentioned the key prohibitions such as Riba (usury) and Qimar (gambling), whereas the Sunnah covers things such as the practices, governance, and guidance in the economy.
Conclusion
The first lesson, “Introduction and Revealed Guidance Navigation,” establishes the foundation of Shariah and its sources, which are essential for Islamic finance. Shariah, symbolizing a path to spiritual growth, is derived from the Qur’an, Sunnah, and Ijma’. Islamic finance scholars refer to Fiqh, encompassing the four schools of Islamic law—Hanafi, Maliki, Shafi’i, and Hanbali—to extract Shariah rules. The Sunnah, including the verbal, physical, and tacitly approved practices of the Prophet Muhammad ﷺ, provides comprehensive legal and habitual guidance.
Understanding these foundations is crucial because it ensures that Islamic finance aligns with Shariah values of fairness, justice, and moral integrity. By adhering to ethical business practices and prohibiting harmful activities such as Riba (usury) and Qimar (gambling), Islamic finance not only upholds the principles of Islam but also promotes a sustainable and just economic system that benefits individuals and communities.
Written by: Nafisah Yusra Abdul Rahim
