By Muhammad Rizwan-ul Haque Founding Chairman, Dawood Family Takaful | CEO of an Investment Bank | Director of a TrustOriginally published: September 27, 2016 Introduction The verses of the Qur’an are the ultimate source of guidance for humanity. We recite them repeatedly, yet often fail to reflect deeply on their meanings or fully submit to their commandments. The message is clear, but are we truly listening? Knowledge and Responsibility We consider ourselves fortunate to have acquired education and professional expertise. However, knowledge brings responsibility. When Allah (SWT) gives a command, especially in matters of ethics and justice, ignoring it becomes a serious moral failure. Allah (SWT) says: “It is He who made the sun a shining light and the moon a derived light and determined for it phases that you may know the number of years and account [of time]. Allah has not created this except in truth. He details the signs for people who know.”(Surah Yunus, 10:5) These signs are meant for people of knowledge, not merely to admire, but to understand and act upon. Signs for Those Who Reflect and Fear We easily recognize worldly signs: a smile of approval, a word of praise, or a gesture of disappointment. Yet we often ignore the greater signs, the signs of accountability before Allah (SWT). “Indeed, in the alternation of night and day and in what Allah has created in the heavens and the earth are signs for a people who fear Him.”(Surah Yunus, 10:6) The Qur’an repeatedly reminds us that we will return to our Creator. However, the attractions of this temporary world distract us from that certainty. “Indeed, those who do not expect to meet Us and are satisfied with the life of this world and feel secure therein, and those who are heedless of Our signs…”(Surah Yunus, 10:7) The Issue of Riba The Qur’an clearly distinguishes between lawful trade and forbidden Riba (interest). While sale and purchase are permitted, Riba is prohibited. Yet modern financial systems, including many institutions labeled as “Islamic”, continue to rely heavily on interest rate benchmarks in banking, corporate, individual, and government transactions. When concerns are raised that such practices: Incorporate an element linked to interest, and Undermine socioeconomic justice, The response is often defensive rather than reflective. The Words of the Qur’an Cannot Be Altered Allah (SWT) warns: “And when Our clear verses are recited to them, those who do not expect to meet Us say, ‘Bring us a Qur’an other than this or change it.’ Say, ‘It is not for me to change it of my own accord. I only follow what is revealed to me. Indeed, I fear, if I should disobey my Lord, the punishment of a tremendous Day.’”(Surah Yunus, 10:15) Divine guidance is not subject to modification to suit contemporary preferences. A Modern Theory Under Scrutiny The contemporary framework of Islamic banking and finance, developed roughly over the past five decades, is a human effort. Like all human constructs, it must be evaluated in light of divine guidance. If any aspect conflicts with the clear message of the Qur’an and Sunnah, it requires reassessment. Allah (SWT) further reminds: “Say, ‘If Allah had willed, I would not have recited it to you, nor would He have made it known to you. I had already remained among you a lifetime before it. Then will you not reason?’”(Surah Yunus, 10:16) A Question of Accountability In promoting financial systems that rely on interest benchmarks while claiming compliance, what are we ultimately achieving? Are we advancing justice and real economic activity or merely securing worldly gains? “So who is more unjust than one who invents a lie about Allah or denies His signs? Indeed, the criminals will not succeed.”(Surah Yunus, 10:17) A Powerful Reminder Allah (SWT) gives an example: “The example of worldly life is like rain which We have sent down from the sky that the vegetation of the earth absorbs from which men and livestock eat until when the earth has taken on its adornment and is beautified, and its people suppose that they have capability over it, there comes to it Our command by night or by day, and We make it as a harvest, as if it had not flourished yesterday. Thus do We explain in detail the signs for a people who reflect.”(Surah Yunus, 10:24) Worldly systems, no matter how sophisticated, are temporary. Accountability before Allah (SWT) is permanent. Conclusion For Shariah advisors and Islamic bankers, the signs are clear. Knowledge demands integrity. Authority requires responsibility. Divine commands cannot be adjusted to accommodate financial models. True success lies not in institutional labels, but in sincere adherence to the Qur’an and Sunnah. Reflection, humility, and willingness to reassess are essential so that we may stand accountable before Allah (SWT) without excuse.

By Muhammad Rizwan-ul Haque Founding Chairman, Dawood Family Takaful | CEO of an Investment Bank | Director of a TrustOriginally published: September 29, 2016 Introduction For centuries, capitalism dominated much of the global economic system. In 1848, Karl Marx challenged this dominance through his book The Communist Manifesto, presenting an alternative ideology in open revolt against prevailing structures. During the first half of the twentieth century, many countries adopted communism. However, by the end of the century, most had abandoned it, with only a few nations continuing to follow that framework. This historical shift raises an important question: do man-made theories eventually lose validity? The Limits of Man-Made Theories Throughout history, human beings have attempted to formulate theories and systems in pursuit of excellence, reform, or control. Sometimes these efforts were driven by genuine concern for justice; at other times, by self-interest. Regardless of intention, man-made theories are inherently limited by human understanding and context. As circumstances change, these theories are often revised, rejected, or replaced. The Question of Riba in Modern Finance The contemporary handling of Riba (interest), particularly through financial engineering and benchmarking Islamic financial products against conventional interest rates, is argued to be a man-made construct that does not fully align with the principles of the Qur’an and Sunnah. By pegging transactions to prevailing interest rates, such practices risk functioning merely as extensions of capitalist structures rather than offering a genuine alternative. Even if the initial intention was noble, practical experience suggests that reliance on interest benchmarks may discourage real economic activity and undermine socioeconomic justice. The resulting inequalities can contribute to broader social and economic instability. The Supremacy of the Qur’an and Sunnah Given these concerns, it becomes necessary to revisit the issue of Riba directly in light of the Qur’an and Sunnah. While human theories may evolve or become obsolete, divine guidance remains constant and supreme. The Qur’an states: “And those who hold fast to the Book and establish prayer — indeed, We will not allow to be lost the reward of the righteous.”(Surah Al-A‘raf, 7:170) This verse emphasizes adherence to divine revelation as the ultimate safeguard. A Universal Covenant Allah (SWT) reminds humanity: “And [mention] when your Lord took from the children of Adam — from their loins — their descendants and made them testify concerning themselves, ‘Am I not your Lord?’ They said, ‘Yes, we testify.’ — lest you should say on the Day of Resurrection, ‘Indeed, we were unaware of this.’”(Surah Al-A‘raf, 7:172) This verse underscores that humanity cannot claim ignorance of divine guidance. Why This Message Must Be Repeated The reminder regarding Riba and adherence to divine injunctions is not merely theological; it is ethical and societal. Revisiting the original message ensures that individuals and institutions cannot later claim they were unaware of the divine command. Conclusion Man-made theories, interpretations, and even scholarly opinions (fatwas) may lose relevance over time, especially if they conflict with divine revelation. The Qur’an and Sunnah remain the ultimate and unchanging sources of guidance. In cases of disagreement between human reasoning and divine instruction, there should be no ambiguity: the message of Allah (SWT) and the teachings of Prophet Muhammad ﷺ take precedence. It is our responsibility to ensure that this message is understood and implemented, so that we have no excuse before our Creator.

By Muhammad Rizwan-ul Haque Published: May 2, 2017 Introduction At best, we can only make a modest effort to share the true message of Islam with our families, friends, colleagues, and wider communities, including through social media. Whatever little good we can do is only possible through the guidance and mercy of Allah (SWT). However, in our pursuit of understanding Islamic teachings, it is important to reflect on our intellectual humility, especially when compared to the towering scholarship of the Four Great Imams of Islamic jurisprudence. The Supremacy of the Qur’an and Sunnah The ultimate and authentic sources of guidance in Islam are the Qur’an and the Sunnah of the Prophet Muhammad ﷺ. All other interpretations, opinions, and legal verdicts (fatwas) are secondary and subject to review. With time, human reasoning may evolve, and scholarly opinions may be reassessed. The Four Great Imams themselves emphasized that their rulings were not absolute; rather, they were efforts to interpret divine guidance. Their humility sets a powerful example for all who seek knowledge today. Imam Ash-Shafi‘i (RA) Al-Shafi‘i stated: “If I say something, then compare it to the Book of Allah and the Sunnah of His Messenger. If it agrees with them, then accept it; and if it goes against them, then reject it and throw my saying against the wall.”(Reported in An-Nawawi, al-Majmoo’ 1/63) This statement reflects profound humility and reinforces that no scholar’s opinion supersedes divine revelation. Imam Malik (RA) Malik ibn Anas said: “Indeed, I am only a human. I can be correct, and I can make mistakes. So examine my opinion: whatever agrees with the Book and the Sunnah, accept it; and whatever does not, then leave it.”(Jami‘ Bayan al-‘Ilm, 1/775) His words clearly affirm that the Qur’an and Sunnah remain the sole and authentic standards of judgment. Imam Abu Hanifa (RA) Abu Hanifa advised one of his students: “Do not write down everything you hear from me, for I may hold one opinion today and leave it tomorrow; and hold another tomorrow and leave it the day after.”(Reported by ‘Abbaas and ad-Dooree in at-Taareekh by Ibn Mu‘een, vol. 6, p. 88) This demonstrates intellectual openness and recognition that human understanding evolves with time. Imam Ahmad ibn Hanbal (RA) Ahmad ibn Hanbal stated: “Do not follow my opinion, nor that of Malik, nor Shafi‘i, nor Awzaa‘i, nor Thawri. Rather, take from where they took.” Meaning: return to the sources, the Qur’an and Sunnah. A Lesson in Humility and Methodology If such towering scholars of Islamic jurisprudence cautioned against blind following, then what is our stature in comparison to theirs? Their guidance makes it clear that no individual or institution can legitimize something that is in clear contradiction to the Qur’an and Sunnah. Conclusion In light of this principle, Riba (interest) cannot be justified in any form, including indirect usage for benchmarking purposes in Islamic banking and finance, if it clearly violates divine injunctions. There is no precedent that Prophet Muhammad ﷺ used prevailing interest rates to benchmark business transactions. If the Four Great Imams themselves subordinated their opinions to the Qur’an and Sunnah, then intellectual integrity demands that we do the same.

By Muhammad Rizwan-ul Haque Founding Chairman, Dawood Family Takaful | CEO of an Investment Bank | Director of a Trust Originally published: June 21, 2018 Introduction The Qur’an repeatedly draws attention to human behavior, highlighting not only our strengths but also our weaknesses. Surah At-Tauba presents powerful verses that reflect the character of humanity in general, and Muslims in particular, especially when it comes to promises made to Allah (SWT). A Forgotten Promise These verses appear especially relevant to the people of Pakistan, a nation created after immense sacrifice with the intention of living according to Islamic principles. The demand for a separate homeland was rooted in the desire to practice Islam freely. Sadly, over time, those collective promises and heartfelt prayers have been largely forgotten. A Covenant with Allah Allah (SWT) states in Surah At-Tauba: “And among them are those who made a covenant with Allah, saying: ‘If He gives us from His bounty, we will surely give charity and be among the righteous.’”(Surah At-Tauba, 9:75) This verse reflects a familiar pattern: promises made in times of hardship, conditional upon divine assistance. Promises and Prayers Many of us pledged that if Allah answered our prayers, through prosperity, independence, or success, we would support the poor and live righteously. However, once blessings were granted, worldly desires often took precedence over spiritual commitments. Turning Away After Receiving Blessings Allah (SWT) further warns: “But when He gave them from His bounty, they became miserly with it and turned away, refusing.”(Surah At-Tauba, 9:76) This verse captures the tragic shift from gratitude to neglect, from commitment to indifference. Consequences of Broken Promises As a result of this behavior, Allah (SWT) describes a severe spiritual consequence: “So He penalized them with hypocrisy in their hearts until the Day they meet Him, because they failed Allah in what they promised Him and because they used to lie.”(Surah At-Tauba, 9:77) Disunity, internal conflict, and moral decline are not accidental, they are outcomes of broken promises and collective hypocrisy. A Crisis of Character Today, many individuals in positions of power demonstrate dishonesty and a lack of trustworthiness. Although constitutional provisions state that no law should contradict the Qur’an and Sunnah, Shariah principles are frequently violated. This contradiction between belief and practice is a clear manifestation of hypocrisy. Allah Knows What Is Hidden The Qur’an reminds us: “Do they not know that Allah knows what they conceal and what they whisper, and that Allah is the Knower of all that is unseen?”(Surah At-Tauba, 9:78) No justification, secrecy, or political maneuvering can hide intentions from Allah (SWT). Islamic Institutions and Moral Compromise Institutions such as Islamic councils and Shariat courts are well aware of these realities. However, many have compromised their moral authority in exchange for worldly benefits; power, influence, privileges, and luxury. By doing so, they fail to serve the true cause of Islam and fall short of their responsibility to uphold justice and truth. Conclusion Surah At-Tauba serves as a powerful reminder that promises to Allah (SWT) are not symbolic, they are binding. Prosperity without gratitude, power without justice, and faith without action lead only to hypocrisy and decline. True revival begins when individuals and institutions alike return sincerely to their commitments to Allah, in belief and in practice.

By Muhammad Rizwan-ul Haque Founding Chairman, Dawood Family Takaful | CEO of an Investment Bank | Director of a Trust Originally published: August 12, 2015 Introduction The concept of lawmaking dates back thousands of years to ancient Greek aristocracies. However, these early laws largely served the interests of the elite, leaving the lower classes marginalized. As a result, ethics, morals, and values became tools through which the oppressed sought justice and demanded their rights. Why Are Laws Necessary? Laws are essential to regulate human behavior. In the absence of rules and regulations, it would be impossible for a ruler to govern a state, a CEO to manage an organization, or even a head of a household to maintain order. Laws provide structure, discipline, and accountability at every level of society. The Primary Lesson of Islam: Equality and Justice Islam establishes an exceptionally high standard of equality and justice. This principle is clearly reflected in the teachings of the Qur’an and Sunnah. Equality: In the Farewell Sermon delivered on the 9th of Dhul-Hijjah, 10 A.H., Prophet Muhammad ﷺ declared: “All mankind is from Adam and Eve. An Arab has no superiority over a non-Arab, nor does a non-Arab have superiority over an Arab. A white has no superiority over a black, nor a black over a white; except by piety and good deeds.” Justice: When a woman from the Makhzum tribe committed theft, and intercession was sought, the Prophet ﷺ rejected any favoritism and stated: “The nations before you were destroyed because they used to spare the influential when they committed crimes and punish the weak. By Allah, if Fatima, the daughter of Muhammad, were to steal, I would cut off her hand.” This establishes that justice in Islam applies equally to all, regardless of status or lineage. Rules and Guidelines: A Divine Necessity Just as every machine requires a manual, humanity requires guidance. Along with human creation, Allah (SWT) sent divine guidance through the Qur’an, and Prophet Muhammad ﷺ left behind his Sunnah. These two sources provide not only moral direction but also clear rules, boundaries, and obligations. A society must be built upon equality and justice. Without these foundations, socioeconomic injustice emerges, giving rise to social evils that are visible across the world today. Absolute Power Corrupts Absolutely History repeatedly shows that when individuals or groups accumulate unchecked power, they tend to create laws that serve their own interests while ignoring justice. Such power can legitimize inhumane practices under the guise of legality. Past examples, such as racial segregation laws, remind us that legality does not always equate to morality. Interest (Riba) and Economic Imbalance Modern economic systems permit interest-based transactions, allowing capital to carry a guaranteed price. Capitalists can leverage borrowed money, and governments rely on debt to finance deficits. These practices make it extremely difficult to achieve social harmony or address systemic issues such as inflation, poverty, unemployment, and low productivity. Guidance from the Qur’an and Sunnah Allah (SWT) has granted human beings free will; however, freedom without divine guidance often leads to exploitation. Those in authority may impose immoral or unnatural systems, but such freedom does not result in balanced or harmonious societies. True success, both worldly and spiritual, lies in aligning political, social, and economic systems with divine guidance. Our Collective Responsibility It is our responsibility to explore and implement the systems prescribed in the Qur’an and Hadith. Without doing so, humanity risks remaining misguided despite material progress. In business and economics, removing exploitation and ensuring equal opportunity are essential for societal balance, so that wealth does not remain concentrated among the powerful while the poor continue to multiply. While welfare and charity play an important role, they cannot provide long-term solutions to socioeconomic injustice. Sustainable change requires systemic reform, particularly the elimination of interest and the promotion of real economic activity. When all members of society become stakeholders rather than debtors, equality and justice can truly prevail. Conclusion A just and harmonious society cannot be achieved through man-made laws alone. Only systems grounded in the Qur’an and Sunnah can ensure lasting equality, justice, and economic balance—principles that benefit not just individuals, but humanity as a whole.

By Muhammad Rizwan-ul-Haque Founding Chairman, Dawood Family Takaful | CEO of an Investment Bank | Director of a Trust Originally published: May 8, 2019 Introduction The Constitution of the Islamic Republic of Pakistan clearly states that no law may be enacted if it is repugnant to the Quran and Sunnah. In light of this constitutional mandate, it becomes essential to reflect on whether Pakistan has truly operated in the right direction during the past four to five decades, particularly with respect to Riba  (interest). This discussion draws attention to relevant constitutional provisions to create awareness and encourage an honest assessment of our legislative and economic trajectory. Constitutional Framework The Constitution explicitly empowers both citizens and courts to challenge any law that contradicts Islamic injunctions. This provision reflects the foundational intent of Pakistan as an Islamic state, where governance is meant to align with divine guidance. Powers of the Federal Shariat Court Article 203D of the Constitution grants the Federal Shariat Court authority to examine laws, either on its own motion or through petitions filed by citizens or governments, to determine whether they are repugnant to the injunctions of Islam as laid down in the Quran and Sunnah. This provision not only empowers the judiciary but also places responsibility upon citizens to actively safeguard Islamic principles within the legal framework. The Pending Petition on Riba It is deeply concerning that the petition regarding Riba  has remained pending since 1999, over two decades without a final verdict. Hearings are repeatedly adjourned, often occurring only a few times a year, without meaningful resolution. This prolonged delay raises serious questions about collective will. Despite calling Pakistan an Islamic Republic and establishing Islamic councils and Islamic banking institutions, we continue to operate within an interest-based economic system. Superficial reforms, cosmetic changes, or document-based models of “Islamic finance” cannot resolve deep-rooted economic issues. Relying on international loans, restructuring old debts, or maintaining the status quo merely entrenches the country further into a debt trap. Without aligning our economic system with the true spirit of Islamic teachings, genuine reform remains unattainable. Responsibility of the Legislature Beyond the judiciary, the Constitution places a clear obligation on Parliament to ensure that both new and existing laws conform to the injunctions of Islam. Article 227 explicitly states that no law shall be enacted that contradicts the Quran and Sunnah, and all existing laws must be brought into conformity. Unfortunately, legislative priorities often appear driven by short-term political gains rather than long-term moral and economic reform. Islamic Provisions in the Constitution Articles 227–231 provide a comprehensive Islamic framework intended to guide governance and lawmaking. While institutions such as the Council of Islamic Ideology exist, either a lack of capacity or a reluctance to confront systemic violations has limited their effectiveness. If these provisions were implemented sincerely; both in letter and spirit, they could lead to meaningful transformation and help Pakistan function as a truly Islamic society. Why Have We Lagged Behind? One fundamental reason for this stagnation is the absence of objective Quranic education alongside modern sciences from an early age. Had this balance been achieved, it could have shaped stronger moral character and social responsibility. Today, Quran and Sunnah are often dismissed as outdated or labeled as dogmatic by intellectual circles. At the same time, some religious scholars, whether due to ignorance or vested interests, hesitate to advocate for systems genuinely rooted in Islamic principles. Ironically, the Constitution itself fully supports governance based on Islamic injunctions. Path to Societal Transformation The Quran and Sunnah offer clear guidance capable of addressing modern economic, social, and political challenges. The real barrier is not the absence of solutions but a deficiency in faith ( imaan ) and conviction to implement them. Allah SWT reminds us in Surah Aal-e-Imran: “Do they seek a religion other than that of Allah, while all that is in the heavens and the earth submits to Him, willingly or unwillingly, and to Him they shall be returned?” (3:83) “Whoever seeks a religion other than Islam, it will never be accepted from him, and in the Hereafter he will be among the losers.” (3:85) Conclusion Pakistan possesses both constitutional authority and divine guidance to reform its economic and legal systems. What is required is the courage and sincerity to move beyond superficial measures and align governance with the principles of equality, justice, and accountability taught by Islam.

By Muhammad Rizwan-ul Haque Founding Chairman, Dawood Family Takaful | CEO of an Investment Bank | Director of a Trust Originally published: August 21, 2015 Introduction Ijma  is an Arabic term that refers to consensus or collective agreement. Within Islamic jurisprudence, it broadly signifies the consensus of the earliest generations of Muslims, particularly the first three generations, or, in a wider sense, the agreement of qualified jurists and scholars across the Muslim world. While there are multiple schools of thought within Islamic jurisprudence, Ijma  serves as a unifying principle, ensuring that interpretations remain anchored to the authentic understanding of Islam rather than fragmented opinions. Quranic Guidance on Consensus Allah SWT, in His divine wisdom, has already addressed the need for unity and clarity in matters of faith. In Surah Al-Hajj (verses 52–55) , Allah SWT highlights that throughout history, Satan has attempted to distort divine messages, leading some people astray. These verses emphasize that when truth becomes clear, believers are obligated to accept and follow it, while those who reject it remain in doubt. This divine warning underscores the importance of relying on collective scholarly consensus rather than isolated or self-serving interpretations. Surah An-Nisa and the Foundation of Ijma Allah SWT states in Surah An-Nisa, verse 115 : “And whoever opposes the Messenger after guidance has become clear to him and follows a path other than that of the believers, We shall leave him to what he has chosen and admit him into Hell; what an evil destination.” Imam Al-Shafi‘i is widely believed to have identified this verse as a foundational proof for the legitimacy and necessity of Ijma , after an extensive study of the Quran. Why Ijma Is So Important Islam is not merely a religion, it is a complete way of life, offering guidance on every aspect of human existence. Unfortunately, today we face several challenges: Some have distanced themselves from direct guidance of the Quran and Sunnah Others perceive divine guidance as outdated Religion is often restricted solely to religious scholars The role of interdisciplinary expertise is overlooked Just as every professional field requires specialists, Islamic guidance also requires scholars who continuously engage with divine sources while understanding contemporary realities. Human Limitations and the Need for Collective Wisdom No single scholar, regardless of sincerity or competence, can fully master every domain of life, such as economics, finance, medicine, governance, law, inheritance, or social systems. This limitation makes collective scholarly effort essential. Without Ijma , gaps in knowledge, lack of awareness, vulnerability to external influence, compromises, and vested interests give rise to sectarianism (firqabandi)  and persistent disputes, fragmenting the Muslim Ummah. Ijma as a Means to Unity and Progress To manage differences and move forward in an ever-changing world, emphasis on Ijma  must remain paramount. It allows the Ummah to adapt responsibly while remaining faithful to the message of Allah SWT. Riba and the Need for Ijma The subject of Riba  cannot be examined in isolation. A meaningful understanding requires engagement with: Economic principles Economic objectives such as productivity, balanced growth, job creation, poverty reduction, and inflation control Despite continuous efforts by economists worldwide, prevailing economic models, through trial and error, have failed to deliver lasting justice or stability. The Divine Solution to Economic Challenges Allah SWT has presented a remarkably simple and profound solution: Prohibition of Riba Emphasis on genuine trading and real economic activity Ensuring equality and justice in society If economies are built upon these principles, the major economic challenges facing humanity can be resolved, In Shaa Allah , without excessive complexity. Recognizing Past Efforts It is essential to acknowledge and respect the pioneering efforts of earlier scholars and practitioners of Islamic finance. Without their contributions, current discussions would not have reached this advanced stage. However, practical experience has revealed that modern Islamic banking and finance, in many respects, mirrors the conventional system, yielding similar outcomes and limitations. Conclusion Both conventional and current Islamic banking frameworks have proven insufficient in delivering meaningful economic reform. True improvement requires a fresh direction, one rooted in Ijma  and guided strictly by the Quran and Sunnah, rather than the procedures of existing economic systems. Only through collective agreement, sincere reflection, and divine guidance can a just and balanced economic system emerge. Indeed, Allah SWT knows best.

By Muhammad Rizwan-ul Haque Founding Chairman, Dawood Family Takaful | CEO of an Investment Bank | Director of a Trust Originally published: June 29, 2015 Introduction The central objective behind Allah SWT’s message on Riba  is the eradication of exploitation and the establishment of balance and equilibrium within society. Islam does not merely prohibit Riba in isolation; rather, it presents a comprehensive framework aimed at ensuring justice, fairness, and socioeconomic harmony. Direct Guidance from Quran & Sunnah To truly understand the wisdom behind the prohibition of Riba, it is essential to seek guidance directly from the Quran and Sunnah . Without this foundation, we risk being influenced by modern theories of Islamic Banking and Finance, many of which are only a few decades old and remain experimental in nature. A Timeless Divine Lesson The prohibition of Riba is not a recent concept. It was revealed thousands of years ago, with its final and complete message conveyed more than 1,500 years ago. This alone highlights its timeless relevance and its critical importance in shaping a just economic order. Limitations of Islamic Banking & Finance Despite decades of trial and error, modern Islamic Banking and Finance (IB&F) models have struggled to deliver the outcomes envisioned by Islamic economics. While the terminology may differ, many practices continue to mirror conventional systems in substance rather than spirit. The Issue of Benchmarking One of the most concerning practices is the benchmarking of Islamic financial transactions to prevailing interest rates . This linkage, regardless of how it is framed contractually, continues to replicate the very essence of Riba and therefore contradicts the core objective of Islamic finance. Same Causes, Same Outcomes Because the foundational causes, such as exploitation, concentration of wealth, and indifference toward the economically vulnerable—remain unaddressed, the results are also the same. Socioeconomic injustice continues to persist, reinforcing why Allah SWT has emphasized trading  and prohibited Riba. Trading as Real Economic Activity Islam promotes genuine trade and business activity , which leads to real economic output. Such activity engages all segments of society: farmers, laborers, workers, and small entrepreneurs, thereby distributing wealth more equitably and creating meaningful employment. The Menace of Riba-Based Transactions In contrast, interest-based and artificially structured “Islamic” transactions often involve massive paper contracts executed in corporate offices, with no tangible economic activity on the ground. Billions may circulate, yet farmers and laborers see no employment or benefit. Unemployment and Inflation These practices result in rising unemployment among lower-income groups, while the money supply continues to expand through interest-based mechanisms. This imbalance fuels inflation , steadily increasing the cost of living without a corresponding rise in productivity. Low Productivity and Rising Poverty As profits are generated primarily through financial instruments rather than real production, productivity declines. The combined effects of unemployment, inflation, and low output place immense pressure on vulnerable communities, leading to increased poverty. Social Consequences Persistent economic stress inevitably gives rise to social evils. When people are unable to meet basic needs through dignified work, societal harmony begins to erode. Charity Is Not a Substitute for Justice While zakat, charity, and sadaqah are vital pillars of Islam, they are not substitutes for a just economic system. A healthy and capable youth population seeks honorable employment, not long-term dependency. Sustainable justice comes through opportunity, not perpetual charity. Exploitation Embedded in Interest-Based Systems The exploitation inherent in interest-based capitalism continues to push economies into cycles of recession and inequality. This systemic flaw is precisely what Islam seeks to eliminate. An Immaculate Economic System How remarkable it is that Allah SWT has provided a system capable of addressing major economic challenges: unemployment, inflation, poverty, low productivity, and social instability, through a single, powerful principle: the prohibition of Riba and the promotion of real trade . Our Collective Responsibility It is our responsibility to resist flawed economic practices and strive to rediscover an immaculate path guided by the Quran and Sunnah. Without this effort, societies will continue to face recurring economic crises and injustice. May Allah SWT guide us all toward understanding and implementing this divine wisdom (Aameen).

By Muhammad Rizwan-ul-Haque Founding Chairman, Dawood Family Takaful | CEO of an Investment Bank | Director of a Trust Originally published: June 24, 2015 What Is Islam? A recently converted acquaintance was once asked by his friends, “What is Islam?” His response was simple yet profound: “Islam is simplicity, but with discipline.” This statement captures the essence of Islam—clear guidance rooted in wisdom, where every command of Allah SWT carries purpose, foresight, and long-term benefit , even if it may appear rigid or difficult at first glance. Divine Commands and Their Deeper Objectives Allah SWT’s commands are never arbitrary. Each instruction carries far-reaching objectives  that serve both individual and societal well-being. For example, the instruction to keep trousers above the ankle is not merely symbolic—it ensures cleanliness, dignity, and readiness for prayer. Such guidance teaches us that obedience in Islam is deeply connected to discipline, purity, and awareness . Similarly, the prohibition of Riba is not limited to financial mechanics; it is meant to protect humanity from systemic injustice, exploitation, and moral decay . Foresight in Islamic Leadership A powerful example of Islamic foresight is found in the advice of Khalifa Omar Farooq (R.A.) . When a newly appointed governor sought his counsel, Hazrat Omar (R.A.) reminded him: Never act as if you possess divine knowledge, the future is known only to Allah . Never claim infallibility, all humans err; only Prophets are free from error . If a mistake is made, acknowledge it with humility . This wisdom reflects the Islamic principle of accountability, a cornerstone of justice that applies equally to governance, economics, and social responsibility. Riba and the Islamic Economic Vision Through Quranic verses on Riba, Allah SWT guides humanity toward an immaculate economic system , one that promotes harmony, balance, and fairness within society. Islam does not merely prohibit interest; it redefines economic purpose , shifting focus from profit maximization to socioeconomic justice and ethical trade . The aim is to prevent wealth from circulating only among the privileged while burdening the vulnerable. Why Documentation Alone Is Not Enough It is a grave misconception to assume that minor structural changes, rebranded contracts, or altered terminology can transform a forbidden system into a lawful one. Merely redesigning documents or renaming transactions does not change the essence of conventional banking , which remains rooted in interest-based exploitation. Such superficial steps neither fulfill the objectives of Shariah nor achieve the far-reaching economic goals envisioned by Islam. The Illusion of Superficial Compliance Today, Islamic banking is widely accepted across the world, yet in many cases, nothing substantial has changed  except terminology and documentation. This creates a dangerous illusion, one that falsely reassures consciences without addressing the underlying injustice. True Islamic economics demands real economic activity, risk-sharing, fairness, and compassion , not cosmetic adjustments. Understanding Economic Hardship Through a Humane Lens Those living in relatively privileged environments often fail to comprehend the harsh realities of unemployment, poverty, inflation, and debt traps . Without experiencing these struggles, it becomes easy to overlook how deeply interest-based systems suffocate the vulnerable. Islam encourages us to adopt a humane approach , to engage with those suffering economic hardship and to reflect deeply on Quranic teachings of equality and justice. Only then can we appreciate that Allah SWT is guiding us toward genuine socioeconomic reform , not symbolic compliance. The Need for a Fresh Start The time has come for professionals, economists, and religious scholars to rethink and rebuild  the Islamic economic system from its foundations. This requires: Sincere reflection on the Qur’an and Sunnah Honest acknowledgment of existing shortcomings Collective effort to design systems rooted in justice, transparency, and real economic value Only through such a fresh and sincere beginning  can the true objectives of Islamic economics be realized. Final Reflection The message of Allah SWT regarding Riba carries meanings far deeper than financial prohibition. It is a call for justice, balance, humility, and responsibility , values without which no society can thrive. May Allah SWT guide us all toward understanding these truths and enable us to walk the rightful path with sincerity and wisdom.

Based on research by Muhammad Rizwan-ul-Haque Founding Chairman, Dawood Family Takaful | CEO of an Investment Bank | Director of a Trust Original research dated: June 16, 2015 The content, analysis, Quranic references, and conclusions presented here are derived from his research and writings. Full credit for the intellectual work belongs to the author. 🔗 Original Source / Reference: https://www.linkedin.com/pulse/why-has-allah-swt-conveyed-message-riba-severe-tone-haque/ Introduction Riba is one of the most discussed and, unfortunately, misunderstood concepts in Islamic economics. Linguistically, the Arabic word Riba  refers to increase, excess, growth, elevation, or swelling . However, in its ethical and legal sense, Riba represents an unjust increase that leads to exploitation and imbalance within society. The Qur’an does not address Riba merely as a financial issue, but as a moral, social, and economic disorder  that disrupts justice and equality. A deeper understanding of Riba requires reflection upon multiple Quranic verses where the concept of increase ( Riba ) is discussed in different contexts. Riba in the Qur’an: Linguistic and Conceptual References The Qur’an uses the root of the word Riba  to describe growth and elevation , often in a neutral or positive physical sense. These references help us understand the linguistic meaning before addressing its prohibition in financial dealings. Allah says in Surah Al-Hajj (22:5)  that the earth “ swells and grows ” after rainfall, illustrating natural increase. Similarly, in Surah Al-Mu’minoon (23:50)  and Surah Al-Baqarah (2:265) , elevation and growth are used to describe fertile land blessed with productivity. These examples clarify that increase itself is not condemned , rather, it is the unjust and exploitative increase  that Islam forbids. Riba as a Moral and Economic Warning When the Qur’an discusses Riba in financial terms, the tone changes drastically. In Surah Al-Baqarah (2:276) , Allah states: “Allah destroys interest and increases charity.” This verse establishes a powerful contrast between Riba , which leads to spiritual and societal decay, and charity , which brings real growth and divine blessing. In Surah Ar-Rum (30:39) , Allah further clarifies that wealth gained through exploitative increase does not grow in His sight, while charity given sincerely multiplies in reward. The message is clear: true prosperity does not come from financial manipulation but from ethical conduct and generosity . Riba Al-Fadl and Clear Prohibitions The majority of Islamic jurists agree that Riba mentioned in the Qur’an and Hadith includes Riba Al-Fadl , meaning unjust excess or increase. Greater clarity on Riba related to loans, trade, and economic transactions is found in several Quranic passages, including: Surah Al-Baqarah (2:274–283) Surah Aal-e-Imran (3:130–132) Surah An-Nisa (4:160–161) Surah Ar-Rum (30:39) These verses clearly distinguish lawful trade  from Riba , while addressing the false justification often made by those who equate interest with business profit. Loans, Exploitation, and Social Injustice The Qur’an emphasizes that loans are meant to support those who are financially weak, not to exploit their vulnerability. Riba, on the other hand, enables individuals and institutions to profit from another person’s hardship, leading to widening inequality and injustice. Allah warns believers that Riba is so severe that it invites a declaration of war from Allah and His Messenger , a warning unmatched by most other prohibitions in Islam. Riba Across Abrahamic Faiths The prohibition of Riba is not exclusive to Islam. It is also strongly condemned in other Abrahamic faiths, reinforcing the idea that usury has always been recognized as a moral and social evil , regardless of time or civilization. A Recipe for Economic Disaster Those working in finance, banking, economics, and business can clearly witness the devastating impact of interest-based systems. Riba not only destroys individuals through debt but also destabilizes corporations and entire national economies, pushing them toward inequality, recession, and moral decline. Ignorance or Vested Interests? Despite clear Quranic guidance, many still argue that modern interest is different from Riba. Such arguments often stem from ignorance or vested interests , rather than sincere reflection. If confusion persists, the Qur’an urges believers to seek Allah’s guidance with humility and honesty. The Responsibility Lies With Us Islam provides comprehensive guidance for every aspect of life, including economics. The responsibility lies with us to recognize that interest is Riba , and that removing this curse is essential for restoring justice, balance, and harmony in society. True prosperity does not lie in multiplying wealth through exploitation, but in walking the path of ethical trade, charity, and accountability before Allah. Final Reflection May Allah SWT guide us all to understand the true nature of Riba and protect us from its harmful consequences. Only by abandoning Riba can societies achieve equity, justice, and sustainable economic balance . Aameen.

This article is based entirely on the original research and scholarly work of: Muhammad Rizwan-ul-Haque - Founding Chairman, Dawood Family Takaful, CEO of an Investment Bank and Director of a Trust The content, analysis, Quranic references, and conclusions presented here are derived from his research and writings. Full credit for the intellectual work belongs to the author. 🔗 Original Source / Reference: https://www.linkedin.com/pulse/mention-riba-interest-usury-religion-abrahamic-faiths-haque/ Introduction Riba is one of the most discussed and, unfortunately, misunderstood concepts in Islamic economics. Linguistically, the Arabic word Riba  refers to increase, excess, growth, elevation, or swelling . However, in its ethical and legal sense, Riba represents an unjust increase that leads to exploitation and imbalance within society. The Qur’an does not address Riba merely as a financial issue, but as a moral, social, and economic disorder  that disrupts justice and equality. A deeper understanding of Riba requires reflection upon multiple Quranic verses where the concept of increase ( Riba ) is discussed in different contexts. Riba in the Qur’an: Linguistic and Conceptual References The Qur’an uses the root of the word Riba  to describe growth and elevation , often in a neutral or positive physical sense. These references help us understand the linguistic meaning before addressing its prohibition in financial dealings. Surah-e-Haj, verse no. 5 (Extract): "it was freshened and swelled up and grew every beauteous pair: (22:5). Similarly, in Surah Al-Mu’minoon (23:50)  and Surah Al-Baqarah (2:265) , elevation and growth are used to describe fertile land blessed with productivity. These examples clarify that increase itself is not condemned , rather, it is the unjust and exploitative increase  that Islam forbids. Riba as a Moral and Economic Warning When the Qur’an discusses Riba in financial terms, the tone changes drastically. In Surah Al-Baqarah (2:276) , Allah states: “Allah destroys interest and increases charity and Allah loves not any ungrateful big sinner" (2:276) This verse establishes a powerful contrast between Riba , which leads to spiritual and societal decay, and charity , which brings real growth and divine blessing. In Surah Ar-Rum (30:39) , Allah further clarifies that wealth gained through exploitative increase does not grow in His sight, while charity given sincerely multiplies in reward. The message is clear: true prosperity does not come from financial manipulation but from ethical conduct and generosity . Riba Al-Fadl and Clear Prohibitions The majority of Islamic jurists agree that Riba mentioned in the Qur’an and Hadith includes Riba Al-Fadl , meaning unjust excess or increase. Greater clarity on Riba related to loans, trade, and economic transactions is found in several Quranic passages, including: Surah Al-Baqarah (2:274–283) Surah Aal-e-Imran (3:130–132) Surah An-Nisa (4:160–161) Surah Ar-Rum (30:39) These verses clearly distinguish lawful trade  from Riba , while addressing the false justification often made by those who equate interest with business profit. Loans, Exploitation, and Social Injustice The Qur’an emphasizes that loans are meant to support those who are financially weak, not to exploit their vulnerability. Riba, on the other hand, enables individuals and institutions to profit from another person’s hardship, leading to widening inequality and injustice. Allah warns believers that Riba is so severe that it invites a declaration of war from Allah and His Messenger , a warning unmatched by most other prohibitions in Islam. Riba Across Abrahamic Faiths The prohibition of Riba is not exclusive to Islam. It is also strongly condemned in other Abrahamic faiths, reinforcing the idea that usury has always been recognized as a moral and social evil , regardless of time or civilization. A Recipe for Economic Disaster Those working in finance, banking, economics, and business can clearly witness the devastating impact of interest-based systems. Riba not only destroys individuals through debt but also destabilizes corporations and entire national economies, pushing them toward inequality, recession, and moral decline. Ignorance or Vested Interests? Despite clear Quranic guidance, many still argue that modern interest is different from Riba. Such arguments often stem from ignorance or vested interests , rather than sincere reflection. If confusion persists, the Qur’an urges believers to seek Allah’s guidance with humility and honesty. The Responsibility Lies With Us Islam provides comprehensive guidance for every aspect of life, including economics. The responsibility lies with us to recognize that interest is Riba , and that removing this curse is essential for restoring justice, balance, and harmony in society. True prosperity does not lie in multiplying wealth through exploitation, but in walking the path of ethical trade, charity, and accountability before Allah. Final Reflection May Allah SWT guide us all to understand the true nature of Riba and protect us from its harmful consequences. Only by abandoning Riba can societies achieve equity, justice, and sustainable economic balance . Aameen.

Based on research by Muhammad Rizwan-ul-Haque Founding Chairman, Dawood Family Takaful | CEO of an Investment Bank | Director of a Trust Original research dated: July 10, 2018 Introduction In any society, a parliament is entrusted by the people to formulate laws that protect life, property, and basic rights. The common person places hope in legislation, believing it will ensure justice, provide socioeconomic relief, and shield society from corruption. Yet, more often than not, these expectations remain unmet, leading to frustration and disillusionment. This recurring disappointment highlights a fundamental issue: laws without justice fail to serve society , no matter how well-intentioned they may appear. Justice as the Equilibrium of Society Justice is the central force that maintains balance within a society. When justice is absent or selectively applied, equilibrium is disturbed. This imbalance gradually erodes peace, trust, and social cohesion, ultimately hindering socioeconomic development. Islam recognizes justice not merely as a moral virtue, but as a structural necessity  for societal stability. A Qur’anic Command for Absolute Justice Surah An-Nisa, verse 135, sets a powerful standard: “ 'O believers! Stand firmly for justice, giving witness for Allah, may be therein your own loss, or of your parents or of your relations . Against whom you be a witness, he be a rich or be a poor, in any case Allah has more power than anyone over them, therefore follow not passion lest you may be far away from justice ; and if you distort or turn your face, then Allah is aware of your doings ”   (Qur’an 4:13 5) This verse removes all ambiguity: Justice must prevail even at personal loss Social status, wealth, or relationships must not influence judgment Emotional bias and self-interest are enemies of justice What Is the Ultimate Remedy? It is a known fact that humans cannot provide relief to the masses on their own, as every soul has a vested interest. But if laws are formulate by taking guidance from commandments of Allah SWT, only then it will remain unbiased. The above verse has clearly pointed-out a few ills, which we experience in the society i.e. to appoint our near & dear ones to reign supreme without any opposition.  When laws are formulated by taking guidance from the commandments of Allah (SWT), they rise above personal, political, and economic biases. The verse explicitly warns against societal ills such as favoritism, nepotism, and the appointment of “near and dear ones” to positions of power without merit, an issue deeply familiar in many modern societies. Responsibility of the Legislature In an Islamic framework, law-making is not merely a political function; it is a moral responsibility . Governments and parliaments are obligated to formulate laws strictly in accordance with the Qur’an and Sunnah , ensuring justice and protection for the masses rather than privileging a select few. Qur’an and Sunnah as Immaculate Sources of Law The Qur’an and Sunnah serve as pure and immutable sources of guidance . Unlike man-made systems, they cannot be manipulated or reshaped to justify worldly gains. Their purpose is to establish fairness, accountability, and balance, values essential for peaceful coexistence. Raising Voice Against Injustice Islam does not encourage silence in the face of injustice. On the contrary, believers are instructed to raise their voices against wrongdoing  and continuously return to Qur’anic guidance whenever societies drift away from justice. Silence and compromise in the face of injustice only deepen societal fractures. Basic Ingredients of a Healthy Society For peace and harmony to prevail, certain foundational qualities must be present: Truthfulness Fair play Willingness to sacrifice personal or worldly benefits The absence of even one of these elements leads to imbalance, grievances, inequality, and eventually conflict. Immaculate Lawmaking and the Human Factor Even when laws are properly formulated, they can fail if not implemented sincerely. Therefore, Islamic law must not only be drafted correctly but also: Implemented in letter and spirit Executed with integrity Enforced to genuinely protect the general public The human factor, honesty, accountability, and fear of Allah, remains critical at every stage of governance. Conclusion Immaculate lawmaking is not merely about drafting legislation; it is about ensuring justice, trust, and accountability  at every level of society. When the right people are entrusted with authority and laws are shaped by Qur’an and Sunnah, peace and harmony naturally follow. Without justice, however, even the most elaborate legal systems fail to deliver stability or prosperity.