Why do you need to know the basics of Islamic finance as a Muslim? The answer to this question may surprise you. However, it is important for us to know at least the basics of Islamic finance as it plays an important role in our daily lives. In today’s world, a basic sense of Islamic finance principles is essential for two fundamental reasons.
One is you, as a practicing Muslim, do not want to make a decision that involves riba or interest in any shape. The other is related to the day-to-day issues you have to handle as a professional, as a father, and as a small business owner. You need to balance your budget, buy a home, pay for your children’s education and save at least some money for emergency purposes.
In sha Allah, in the coming months, The Halal Times is going to start publishing the basics of Islamic finance for general readers. But, for now, let us see why it is important to get a basic idea of the subject matter if we want to spend our lives according to the injunctions of Islam.
Why Basic Understanding of Islamic Finance?
There are quite a few reasons for that. We live in a modern world where our economic life is increasingly becoming more and more complex. Our banks and other financial institutions offer us a myriad choices of financial products such as mortgage loans, credit cards, investment opportunities, etc. Unfortunately, in most cases, we have no clue as to what these products are and whether they are shariah-compliant.
Some financial companies try to rip their customers by offering seemingly attractive deals which often prove as scams at later stages. Your credit scores and your complex billing agreement with your telecom and other utility companies;- all these are various examples of when we need to have a basic sense of what is going on before making an important financial decision. These decisions may affect our lives in important ways.
For Muslims living in majority non-Muslim countries, securing mortgage loans is an important step in their lives. In the same way, The COVID-19 pandemic and the resulting financial misery all over the world have already engulfed countless Muslims almost everywhere.
Financial literacy should be a regular part of the curriculum across the board for Muslims and others. But, it looks somewhat patchy among most Muslims. The Halal Times aims to help ease the burden by offering short definitions of basic Islamic finance and its applications in our lives.
If you would like to know the basics of Islamic Finance which is vital for your daily life as a Muslim, please send us an email message at [email protected] stating your desire to know the fundamentals of Islamic finance.