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4.8 The implications of Muslim laws on riba and gambling when living in a capitalist society
Capitalism – The economic system adopted by most western governments
Riba - Any form of borrowing or lending money at interest
Riba is charging interest on a loan. It is forbidden in Islam as it takes money from the poor and gives it to the rich. This is against all
the principles of the ummah and zakah and can cause difficulties in a society that has an interest-based, capitalist economy.
Western banks work on the principle of lending money at interest to people who wish to buy houses or start businesses. The banks
also have credit cards that allow people to buy things and pay for them over a period of time but with interest, so in all cases more
is paid for the object than its original value. This means that the banks make money at the expense of the borrower and that is
forbidden in Islam.
In Islam, if someone is in need, then it is a duty of the ummah to ensure that the need is met. If money is lent to another, then a
reasonable amount of time must be allowed for it o be paid back as well as no interest being charged. Part of being a community of
believers is to share one’s wealth and not exploit (take advantage) others or cause them to fall into more debt.
‘If the debtor is in difficulty, grant him time till it is easy for him to repay. But if you remit it by way of charity, that is
best for if only you knew.’ (Surah 2:280)
Muslim scholars have spent some time looking at these issues so that Allah’s commands can be followed in a capitalist society. An
example would be for Muslims to participate in one the shared equity schemes for house purchase, where a person buys a house
in partnership with a bank or building society and gradually, through paying a set sum of money, each year owns more of the
house. Many banks in the UK now offer Islamic bank accounts which do not involve interest.
Gambling
In Islam, Muslims are taught to follow Allah’s commands for earning a living honestly through hard work and caring financially for
the family and the community. Gambling makes a person dependent on chance or luck and takes them away from productive effort.
Gambling wastes money that could be spent on the family and Allah has said that nobody should have what they have not earned.
Also, gambling is addictive and can cause many problems for families and society and very few people win in the long run.
Therefore, all forms of gambling – staking money on card games; horse racing; gambling machines; the lottery and so on – are
forbidden in Islam. For Muslims, winning something through gambling is the same as taking something illegally from another
because you have not worked for it yourself.
‘O you who believe! Intoxicants and gambling, (dedication of) stones, and (divination by) arrows, are an abomination – of
Satan’s handiwork: eschew such (abomination) that you may prosper. Satan’s plan is (but) to incite enmity and hatred
between you, with intoxicants and gambling, and hinder you from the remembrance of Allah and from prayer: will you not then
abstain?’ (Surah 5:93-94)
What are the implications of these laws for Muslims?
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It can be difficult to buy property, yet renting often seems simply to make a landlord rich for not much work.
If using a credit card, the full amount should be paid off at the end of the month so that no interest is paid.
Those with any spare money should give interest-free loans to anyone in need.
Saving money should only be done in an ethically based investment.
Money gained through the exploitation of others should be given to charity.
Summary
Both riba and gambling are forbidden in the Qur’an as wealth gained without honest work is considered exploitation of other people.
Money is a gift from Allah and must be used for the benefit of humanity.
Exam Questions
* (c) Explain why Muslim laws on gambling are important in a Western society.
(8)
(d) “Islamic laws about riba do not work in a capitalist society.” In your answer you should refer to Islam.
(i) Do you agree? Give reasons for your opinion.
(ii) Explain why some people may disagree with you.
(3)
(3)
* (c) Explain why Muslim laws on gambling are important in a Western society.
(8)
Gambling is recognised as a serious problem in western society and many people become addicted to it and waste
money that could be spent on charitable causes.
Gambling is a symptom of the craving for wealth which is an example of shirk and nothing must get in the way of
Allah’s rightful place as the first and most important influence in a Muslim’s life.
Muslims need firm guidance about how to avoid gambling as it makes a person dependent on chance or luck and
takes them away from productive effort. Gambling wastes money that could benefit the family.
Muslims are taught to follow Allah’s commands for earning a living honestly through hard work and the Muslim
prohibition of gambling is an important part of the straight path of Islam.
(d) “Islamic laws about riba do not work in a capitalist society.” In your answer you should refer to Islam.
(i) Do you agree? Give reasons for your opinion.
(3)
Yes:
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The economic principles of capitalist and Islamic societies are different. Capitalism is based around the
principle of charging interest on loans which is forbidden in Islam.
It is very difficult to keep to the strict code about riba when society is organised on the basis of lending and
borrowing with interest. If a Muslim wishes to borrow money and the local Islamic community cannot raise the
funds to support him/her then they may have no option but turn to the banks.
Only in a society guided by Shari’ah is it possible to observe rules about riba.
(ii) Explain why some people may disagree with you.
(3)
No:
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Muslims are finding ways of co-existing in capitalist societies without using interest e.g. shared equity
schemes and many banks in the UK now offer Islamic bank accounts which do not involve interest.
Islamic laws are universal and can work anywhere
It is not necessary to have interest to borrow or lend and it is a Muslim’s duty to share one’s wealth and not
exploit others or cause them to fall into more debt.