The Qur’an offers guidance on ethical business practices and financial dealings.
40 GUIDES TO EARNING HALAL INCOME IN ISLAM
1. TRADE (TIJARAH)
– Engaging in trade is encouraged, provided it is done fairly and without fraud.
– “O you who have believed, do not consume one another’s wealth unjustly but only [in lawful] business by mutual consent.” (Qur’an 4:29)
2. HONEST LABOUR
– Working with your hands or using your skills to earn a living is recommended.
– “It is He who made the earth tame for you—so walk among its slopes and eat of His provision.” (Qur’an 67:15)
3. FARMING AND AGRICULTURE
– Farming, tending animals, and agricultural work are honorable professions.
– “He is the One who produces gardens… and olives, and pomegranates, similar and dissimilar. Eat of its fruit when it yields.” (Qur’an 6:141)
4. INVESTMENT IN HALAL VENTURES
– Investing in permissible businesses and ventures is encouraged, provided the income is lawful.
– “And when the prayer has been concluded, disperse within the land and seek the bounty of Allah.” (Qur’an 62:10)
5. AVOIDING USURY (RIBA)
– Earning through interest (usury) is strictly prohibited in Islam.
– “Allah has permitted trade and has forbidden interest.” (Qur’an 2:275)
6. PARTNERSHIPS (SHIRKAH)
– Forming partnerships for business is permissible and encouraged if done with transparency and mutual agreement.
– The Qur’an praises fairness and partnership in business dealings.
7. RENTING PROPERTY (IJARAH)
– Renting out property or resources is permissible as a form of earning.
– “There is no blame upon you if you seek the bounty of your Lord [during Hajj].” (Qur’an 2:198)
8. HIRING AND EMPLOYMENT
– Hiring labor and compensating them fairly is a just way of earning.
– “Give full measure when you measure and weigh with an even balance.” (Qur’an 17:35)
9. TRUST AND HONESTY IN BUSINESS
– Honesty in trade and commerce is a key principle.
– “Give full measure, and do not be of those who cause loss.” (Qur’an 26:181)
10. CHARITY (SADAQAH)
– While not a way to earn income directly, giving in charity brings barakah (blessing) to one’s wealth.
– “The example of those who spend their wealth in the way of Allah is like a seed… it gives seven ears, in every ear a hundred grains.” (Qur’an 2:261)
11. INHERITANCE
– Inheritance is an Islamic way of transferring wealth, detailed in the Qur’an.
– “Allah instructs you concerning your children…” (Qur’an 4:11)
12. AVOIDING GAMBLING (MAYSIR)
– Income generated from gambling or games of chance is prohibited.
– “O you who have believed, indeed, intoxicants, gambling… are but defilement from the work of Satan.” (Qur’an 5:90)
13. ZAKAT (OBLIGATORY CHARITY)
– Zakat is mandatory charity given from one’s earnings to purify wealth.
– “Take, [O Muhammad], from their wealth a charity by which you purify them.” (Qur’an 9:103)
14. CRAFTSMANSHIP
– Earning through skilled labor, such as carpentry or craftsmanship, is considered honorable.
15. HALAL PROFESSIONS
– Choosing lawful (halal) professions in areas like teaching, medicine, or public service is encouraged.
16. MERCHANDISING
– Engaging in buying and selling lawful goods is permissible and encouraged, provided fairness is maintained.
17. TITHES AND LEVIES (TAXES)
– In the early Islamic state, collecting taxes to support communal needs was seen as lawful income for the state.
18. BARTERING
– Trading goods without money, through barter, is permissible.
19. LOANS WITHOUT INTEREST
– Lending money without charging interest is allowed, though profit from this loan is not permitted unless it’s an investment.
20. TRADE ACROSS BORDERS
– The Qur’an speaks about caravans and trade routes, encouraging lawful international trade.
21. AVOIDING DECEPTION IN WEIGHTS AND MEASURES
– Deception in business is condemned, especially in the use of false weights and measures.
– “Woe to those who give less [than due].” (Qur’an 83:1)
22. CONSULTATION IN BUSINESS (SHURA)
– Mutual consultation (Shura) in decision-making regarding financial matters is encouraged.
23. AVOIDING HOARDING
– Hoarding wealth without circulation is discouraged.
– “Those who hoard gold and silver and do not spend it in the way of Allah…” (Qur’an 9:34)
24. PROVIDING SERVICES
– Offering services in exchange for fair compensation is permissible.
25. ENTREPRENEURSHIP
– The Qur’an encourages seeking out new opportunities and enterprises that are halal (lawful).
26. AVOIDING BRIBERY (RISHWA)
– Income derived through bribery is prohibited.
– “And do not consume one another’s wealth unjustly or send it [in bribery] to the rulers…” (Qur’an 2:188)
27. FAIRNESS IN EMPLOYMENT
– Being fair in the wages and treatment of employees is emphasized in the Qur’an.
28. AGRICULTURAL DEVELOPMENT
– Improving agricultural methods and productivity is a form of earning that benefits society.
29. EXPLORING THE EARTH’S RESOURCES
– Seeking out and utilizing the earth’s natural resources for lawful income is mentioned.
– “He it is Who made the earth subservient to you, so traverse in its tracks and eat of the sustenance which He provides.” (Qur’an 67:15)
30. AVOIDING EXPLOITATION
– Exploiting others for personal gain, especially in financial dealings, is prohibited.
31. BUSINESS CONTRACTS
– Written contracts are recommended for clarity in financial transactions.
– “O you who have believed, when you contract a debt for a specified term, write it down.” (Qur’an 2:282)
32. DEBT MANAGEMENT
– The Qur’an encourages the fair and responsible management of debts.
33. USE OF FAMILY WEALTH
– Supporting family through lawful income is a form of sustenance encouraged in the Qur’an.
34. VOLUNTEERING TIME
– Offering time for community development can lead to communal benefit, which indirectly supports income generation.
35. NATURAL RESOURCES
– Using resources like water, minerals, and energy sources for lawful income is permissible.
36. GIFT GIVING
– Accepting gifts as a form of appreciation or reward, if done with sincerity, is acceptable.
37. ANIMAL HUSBANDRY
– Raising and selling livestock is an encouraged and traditional form of income.
38. AVOIDING SPECULATION
– Engaging in high-risk speculation, especially in financial markets, is discouraged.
39. GOOD CONDUCT IN TRADE
– Ethical conduct in all forms of trade and commerce is praised.
– “And fulfill every commitment. Indeed, the commitment is ever [that about which one will be] questioned.” (Qur’an 17:34)
40. HALAL CONSUMPTION
– While earning, ensuring that both the sources of income and the manner of consumption are lawful and ethical.
These principles provide a framework for lawful income generation in Islam, as inspired by Qur’anic guidance.
Compiled by:
Suleiman, Abdulmalik King
Project Director, AMDC