THE PROHIBITION OF RIBA’, GHARAR AND MAYSIR AND OTHER ELEMENTS IN ISLAMIC ECONOMICS.

THE PROHIBITION OF RIBA’, GHARAR AND MAYSIR AND OTHER ELEMENTS IN ISLAMIC ECONOMICS.

1. MAYSIR

   • MEANING
     • a way of easily obtaining something without any effort
   • TERMS
     • applies to all activities in which a person wins or loses mere chance.
   • CONSEQUENCES
     • Gives rise to hostility & hatred
     • Enmity between the winner and the losers
   • EXAMPLE
     • Betting on horsesrasing
     • Lotteries

2. JAHALA

   • MEANING
     • Ignorance
       • to a sale
         • sale became defective
   • MAY LEAD
     • to gharar
       • if the obeject of sale / price was unknown to the buyers.
         • sale not invalid

3. GHARAR

   • MEANING
     • deceive
     • lure
     • cheat
   • HOW IT OCCUR
     • When the subject matter itself is unknown unless :
       • The buyer has the option to choose the subject matter
       • The parties to the transaction select the subject matter by mutual consent
       • The subject matter is one of many things of the same kind and value
     • When the specification are unknown:
       • The goods are described in an ambiguous way
       • The goods are simply pointed out
       • An option to choose the goods is provided
   • EXAMPLE
     • Sale of an unborn camel’s baby still in the mother’s womb
     • Sale of fish caught in one throw of a net

4. RIBA'

   • MEANING
     • unsound (fasid) transaction
     • unlawful elements
   • RIBA' IN DEBTS : Riba al-duyun / al-jaliyy /al-quran / al-Jahiliyyah / al-Nasiah
     • An increase for the repayment deferment / postponement in contract of loan / debt
   • RIBA' IN SALES : Riba al-buyu' / al-khafiyy / al-sunnah
     • 1 ) Riba al-Fadl
       • Inequality of quantity between the (ribaw) counter values.
     • 2 ) Riba al- Nasi'ah
       • Deferment of one of the (ribawi) counter values which share the common 'illah