Verses 275 to 279 of Surah Al-Baqarah, which elucidate the rulings and consequences of riba (usury), hold a distinctive position in Islamic jurisprudence, economics, and ethics. These verses not only explicitly declare the prohibition of riba, but also, by distinguishing between riba and legitimate transactions, delineate the foundations of the Islamic economy. Riba, as a social and economic predicament, is considered by the Holy Quran not only an unproductive and detrimental act but also a criterion for assessing faith and adherence to divine commandments. This treatise, through a scientific and systematic approach, analyses these verses and integrates the contents of the lectures and exegetical analyses, aiming to present the juridical, social, and economic dimensions of riba in a comprehensive and refined manner for specialised audiences.
Riba, as one of the fundamental challenges of societies, is severely condemned in the Holy Quran. This phenomenon, due to the absence of productive interaction and its destructive impacts on the economy and social ethics, is viewed by Islam as a poison that disintegrates the body of society from within.
ٱلَّذِينَ يَأْكُلُونَ ٱلرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِي يَتَخَبَّطُهُ ٱلشَّيْطَٰنُ مِنَ ٱلْمَسِّ
Translation: Those who consume riba will not stand except as one whom Satan has confounded by [his] touch.
This verse, by likening the usurers to individuals afflicted by satanic madness, emphasises the profound moral and psychological deviation caused by riba. Riba is like a storm that disrupts the spiritual and social equilibrium of the individual, diverting him from the path of divine guidance.
One of the main themes of the discussed verses is the differentiation between riba and lawful transactions. The Holy Quran explicitly declares sale as permissible and riba as forbidden:
وَأَحَلَّ ٱللَّهُ ٱلۡبَيۡعَ وَحَرَّمَ ٱلرِّبَا
Translation: Allah has permitted trade and forbidden riba.
Sale, as a productive activity, is exchange of goods and services that adds real value to society. In contrast, riba, which merely involves the exchange of money for money accompanied by unlawful profit, creates no added value and exacerbates inflation and economic injustice.
Riba, owing to its unproductive and destructive nature, is considered by the Holy Quran not only a forbidden act but also a threat to the ethical and economic foundations of society. The distinction between riba and legitimate transactions, such as sale, underscores Islams emphasis on strengthening the real economy and avoiding unproductive activities.
One of the salient points in the verses is the emphasis on repentance from riba and the return to the principal capital.
فَإِنۡ تُبۡتُمۡ فَلَكُمۡ رُءُوسُ أَمۡوَٰلِكُمۡ لَا تَظۡلِمُونَ وَلَا تُظۡلَمُونَ
Translation: But if you repent, you shall have your principal capital; you shall not wrong nor be wronged.
This verse places justice at the heart of transactions and stresses that upon repentance from riba, the individual may retain their principal capital without oppressing others or being oppressed. This principle acts as a bridge that saves the person from the whirlpool of riba to the shore of justice and piety.
The Holy Quran emphatically likens the refusal to abandon riba to declaring war against Allah and His Messenger:
فَإِن لَّمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِّنَ ٱللَّهِ وَرَسُولِهِۦ
Translation: But if you do not, then be informed of war from Allah and His Messenger.
This expression indicates the gravity of the prohibition of riba. Riba is akin to an arrow targeting the heart of the Islamic society, generating injustice and economic destruction, thereby expelling the individual from the realm of faith. This declaration of war signifies withdrawal from divine obedience and positioning oneself in the stance of practical disbelief.
The verses link faith to the abandonment of riba:
وَإِن كُنتُم مُّؤْمِنِينَ
Translation: And if you are believers.
This conditional phrase manifests the deep connection between faith and compliance with divine rulings. Acceptance of the prohibition of riba signifies faith and commitment to Sharia, whereas disobedience leads to practical disbelief. This criterion transforms riba from a mere economic issue to a standard for measuring faith and piety.
The rulings related to riba in the Holy Quran not only emphasise the prohibition of the act but also, by conditioning faith on abandoning riba, manifest the high status of this ruling within the Islamic system. Repentance from riba is a return to justice and piety, whereas insistence on it places the individual in opposition to Allah and His Messenger.
Mudarabah is one of the legitimate Islamic contracts based on partnership between the investor and the working agent. In this transaction, capital is provided by one party and labour by the other. This activity is like a sapling that, through the cooperation of both parties, bears fruit and adds real value to society.
Mudarabah, derived from the word "arb" meaning movement and activity, necessitates effort and market circulation. This characteristic differentiates it from riba, which lacks any external activity.
Murabaha is a contract wherein profit is realised through the buying and selling of goods. This form of transaction, due to its real and productive nature, is religiously permissible.
In murabaha, both parties (buyer and seller) benefit from profit. This transaction is like a flowing stream that irrigates the land of the economy and prevents the drought caused by riba.
Musaqat and muzaraah refer respectively to gardening based on irrigation and farming based on crop cultivation. These transactions are distinguished from riba due to their dependence on external factors such as water and soil.
Musaqat, derived from "saq" meaning irrigation, requires continuous watering, whereas muzaraah can be conducted rain-fed (without irrigation). These activities are like orchards which, through effort and care, yield economic and social fruits.
Legitimate transactions such as mudarabah, murabaha, and musaqat, due to their productive and interactive nature, stand in contrast to riba. These contracts, by generating added value and reinforcing the real economy, contribute to the well-being of the Islamic society.
Banks, as intermediary institutions, play a significant role in facilitating productive economic interactions. Unlike riba, which is merely the exchange of money for money, banks utilise public capital in productive activities such as mudarabah and trade, thereby creating added value.
Islamic banking is based on genuine and productive interactions. Banks use public capital to engage in activities such as mudarabah and murabaha, sharing the profits among investors. This feature differentiates Islamic banking from riba, which lacks any productive activity.
To prevent banking operations from transforming into riba, it is essential that banking regulations be formulated based on juridical principles. Bank profits must correspond to productive activities, avoiding unreasonable returns.
The government is responsible for providing the necessary infrastructure for productive economic interactions. Institutions such as the registry offices and commercial agencies act as pillars stabilising the Islamic economy. These entities, by facilitating transactions, prevent unproductive activities such as riba.
Islamic banking, by engaging in productive activities and enacting appropriate regulations, can function as an instrument for strengthening the Islamic economy. The governments role in organising these interactions is of paramount importance.
Some rulings issued in the economic domain have, due to insufficient knowledge of social and economic sciences, suffered from extremism and neglect. Religious sciences require integration with modern knowledge to issue precise rulings in areas such as economics.
Rulings on complex issues such as economics and banking require familiarity with relevant sciences. Without specialised knowledge, the issued rulings may lack the required precision and comprehensiveness.
Riba, due to the absence of social and productive interaction, results in inflation, injustice, and the destruction of the economic system. In contrast, productive interactions such as mudarabah and murabaha strengthen the economy and generate employment.
Juridical and social challenges in the economic domain necessitate reconsideration and the integration of religious sciences with modern knowledge. Riba, as a social threat, stands opposed to productive interactions, and avoidance thereof contributes to the health of the Islamic society.
Verses 275 to 279 of Surah Al-Baqarah, by elucidating the prohibition of riba and distinguishing it from legitimate transactions, outline the foundational principles of the Islamic economy. Riba is like a storm that threatens the ethical and economic foundations of society, whereas legitimate transactions such as mudarabah, murabaha, and musaqat are like orchards that, through effort and cooperation, bear the fruits of justice and piety. Islamic banking, if compliant with juridical principles, can act as a tool to strengthen the real economy. Nevertheless, issuing rulings in this field requires specialised knowledge in economic and social sciences to prevent extremism and neglect. These verses, by linking faith and practice, emphasise the significance of commitment to divine rulings and their impact on individual and societal well-being.
Supervised by Sadegh Khademi
