Re: Riba; Why Ijma Is Essential

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• Others perceive divine guidance as outdated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:

1. Prohibition of Riba

2. Emphasis on genuine trading and real economic activity

3. 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.