Discussed about the fundamental of Islamic Business, theory,concept, contract, philosophy and instruments of Islamic Business

1. BPMS1013 Theory & Practice of Islamic Business 1

2. “This day, I have perfected your religion for you, completed My
Favour upon you, and have chosen for you Islam as your
religion”.
(al-Ma’idah :3)
Pada hari ini telah Kusempurnakan untuk kamu agamamu, dan
telah Ku-cukupkan kepadamu nikmat-Ku, dan telah Ku-ridhai
Islam itu jadi agama bagimu. Maka barang siapa terpaksa
karena kelaparan tanpa sengaja berbuat dosa, sesungguhnya
Allah Maha Pengampun lagi Maha Penyayang.
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3. INTRODUCTION
Islamic overview in Malaysia
 Muslims continue to be appreciated and become the basis in
everyday life.
 Islamic values ​​continue to be accepted at the public, private, and
pluralistic society as the useful life for the good of all in Malaysia
 Islam continues to be accepted as the official religion of the country
Meaning of Islam..
 The name of the religion is Islam, which comes from an Arabic root
meaning “peace” and “submission”.
 Islam teaches that one can only find peaces in one’s life by
submitting to Almighty God (Allah) in heart, soul, and deed. (tunduk
dan patuh kpd perintah Allah dlm mencapai kebahagiaan hidup)
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4. cont…..
 Islam which was revealed more that one thousand and
four hundred years ago, concists of a full system of life
that is compatible to human being of all ages.
 The revelation from Allah and the teachings of Prohet
Muhammad (s.a.w) are not confined only to the belief and
moral systems, but also include the law that is suitable to
be implemented to mankind.
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5. BASIC CONCEPTS OF ISLAMIC
TEACHING
 Faith (akidah)
- the word aqidah from arabic – aqada, yaqidu, aqdan or
aqidatan
 Law (syariah)
- law is the Islamic guideline life
- includes two items = Mahdhah and Ghairi Mahdhah
- have five pillars of islam
• Ethic (akhlaq)
- Attitude, character, behaviour, etc..
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6. The Shari’ah
The word Shari’ah is was defined by al-Qurtubi:
 Literally:
 The road to the watering place, the straight path to be followed.
 Technically:
 The canon law of Islam, all the different commandments of Allah
to mankind.
Some scholars defined this word as the injunctions revealed to
the Prophet (s.a.w) of Allah related to law or belief. In addition to
the above definition, some scholars confined Shari’ah to its
linguistic meaning by saying that this word means, following
strictly the injunctions of Allah or the way of Islam (din).
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7. Component of Shari’ah
 The Shari’ah which contains all the different
commandments of Allah to mankind can be divided
into three fields.
1. Al- ahkam al- I’tiqadiyyah
(sanctions relating to beliefs)- Aqidah
2. Al- ahkam al- akhlaqiyyah
(sanctions relating to moral and ethics)- Akhlaq
3. Al- ahkam al- ‘amaliyyah
(sanctions relating to the sayings and doings of the individuals
and his relations with others which is also called fiqh)- Fiqh
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8. Ethics
- from the perspective of Islam, the word is a syndrome with moral ethics. the
word "moral" is derived from the Arabic plural of the word "character" which
means nature, honor, religion
- Five Of Islamic Law
i) prescribed (wajib)
-an act which when done get the reward and when left to get sin
ii) Recommended (sunat)
-an act which when done get a reward and when left not getting sin
iii) Permissible (harus)
-an act done or omitted when the same is not a reward or sin
iv) Disliked (makruh)
-an act which when ditinggalakan reward and when done do not get sin
v) Unlawful (haram)
-an act which when left rewarded and when done get sin
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9. Needs and desires of humans
according to Islamic perspective
 Daruriyyat
- necessities (eg : eat,drink,house)
 Hajiyyat
-convieniences, moderate ( eg : car,house)
 Tahsiniyyat (Kamaliyyah)
-refinements (eg : comfortable, branded)
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10. Fundamental philosophy business
of Islamic
Islam bring peace to people
We peace and source of peace to others
Human right – justice and a guidelines of morality
Productive work and efficiency
Wealth must moral and ethical standards
Eg: Permissible and Prohibited (Halal and Haram)
Based on Shariah(Islamic law), defined by the
Maslahah(public interest)
Objectives Islamic law - religion, life, reason,
descendants and property.
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11. Business and Maqasid Syariah
 Maqasid Syariah in Arabic word = objectives of the
Islamic law
 Protecting the benefits and good towards human beings
 Protecting interest of people against harm
 3 categories of Maqasid Syariah are:
1. The essential (Daruriyyat)- Necessities
2. The complementary (Hajiyyat)-Convenience
3. The embellishments (Tahsiniyyat)-Refinement
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12. Principle of Islamic in business
 Keenness to Earn Legitimate (Halal)Earnings
 Trade through Mutual Consent
 Truthfulness in Business Transactions
 Trustworthiness in Business Transactions
 Generosity and Leniency in Business Transactions
 Honouring and fulfilling Business Obligation
 Fair Treatment of Workers
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13. The Importance of Islamic
Business
 Islam recognizes business as to fulfill human’s nature of
collecting treasures. Example , Allah says in Surah Al-Baqarah
2:198 : "There is no sin for you to find a gift (provision of
business outcomes) from the Lord.“
 Business as the media of spreading Islam.
 Islam support buy and sell.
Example in Surah Al Baqarah 2:275: “Allah S.W.T. legalize
the sale and prohibits usury. “
"But please have a witness when you are buying and selling.“
 Many Hadith Rasulullah s.a.w also related to the business:
"Business man who is honest and trustworthy will be together
with the Prophet, the saints and the martyrs."
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14. Business and Nabi Muhammad
S.A.W
 People in Arab City (hadari) is good in trading.
 Nabi Muhammad was born of aristocracy and Arab
Quraish / Quraysh.
 He take care of goats and also been works as property
keeper.
 When the age of 20, he receive capital from Saidatina
Khadijah in mudarabah way (profit sharing)
 He is patient, trustworthy, forward-looking . Thus, cause
he become a successful business man
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15. Conclusion
- spiritual as a human and muslim,
consistent with the worship based on
Islamic Source : Quran and Sunnah.
- Physical, safety first the body.
- Mental, always increase the knowledge.
- Family caring with family
- Job /task, committed in a daily life.
If you miss one aspect above, your life
and business can be fail.
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16. Reference
 Al-Quran al- Karim
 Dr. Mohamad Akram Laldin, (2007)” A Mini Guide to
Shari’ah & Legal Maxims”. CERT Publication
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17. 1. What meanings of Islam in our life?
2. How the basic concepts of Islamic
teaching?
3. How the Maqasid Syariah bring to
the business?
4. Are the effectiveness principles
impact the Islamic business?
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18. 1) Global Muslim Unity
Eg: Iraq, Palestine , Afghanistan (Muslim Countries)
- critical condition (illiteracy rate, poverty rate and
unemployment rate are high)
- political and economic uncertainty brings suffering among
the people of the nations.
- based on the history, Muslims are everythings for excellence
and achieve stability in all aspects of life.
- According Prophet Muhammad, created a united and strong
ummah (community) through concept of mu’akhat
(brotherhood) between Muslims of Madinah and Muslims
from Makkah. (concept of development of economic and
political system)
- the importance of knowledge (spiritual aspect with faith &
piety)
2) Development of the Islamic business
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19. Q & A
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20. Thank you….
Syukran Jazilan…
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