The Message of Allah SWT on Riba: Far-Reaching Meanings and Hidden Wisdom

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.