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For other uses, see Riba (disambiguation).

Riba (Arabic: ربا ,الرباribā or al-ribā, IPA: [ˈrɪbæː]) can be roughly translated as "Usury", or unjust, exploitive gains made in trade or business. Riba is mentioned and condemned in several different verses in the Qur'an (3:130, 4:161, 30:39 and perhaps most commonly in 2:275-280) It is also mentioned in many hadith, and considered a major sin in Islamic economic jurisprudence (fiqh).

While Muslims agree that Riba is prohibited, there is disagreement over what it is.[1] It is often, but not always, equated with interest on loans, but is also applied to a variety of commercial transactions.[2] Most Islamic jurists describe two kinds of Riba:[3]

  • Riba an-nasiya: Riba or excess charged for a loans in cash or kind.[4]
  • Riba al-Fadl: the simultaneous exchange of unequal quantities or qualities of a given commodity.[5]

Etymology and definitions[edit]

The word was used by the Arabs prior to Islam to refer to an increase. In classical Islamic jurisprudence the definition of riba was "surplus value without counterpart."

Definitions of Riba include:

  • unjustified increment in borrowing or lending money, paid in kind or in money above the amount of loan, as a condition imposed by the lender or voluntarily by the borrower. Riba defined in this way is called in Fiqh riba al-duyun (debt usury).[6]
  • an increase in a particular item. The word is derived from a root meaning increase or growth.[7]
  • non-equality in an exchange. This can be different results from the exchange of nonequivalent quantities or from the presence of a risk in which the other contractual party does not share.[8]
  • interest or usurious interest. Historically Islamic legal scholars have interpreted the Quran as "prohibiting any loan contract that specifies a fixed return to the lender" on the grounds that it provides "unearned profit to the lender" and imposes "an unfair obligation on the borrower." In the modern era most Muslim countries allow moderate interest rates (some banning compound interest), while Islamists and revivalists" preach that all interest is socially unjust and should be banned;[9]
  • interest. Banned in Islam but evaded by legal subterfuges (known as hila, pl. hiyal) where, for example, a money lender buys something and later sell it back for a greater amount. In contrast Islamic banks charge fees or make the account holder share in the profits and losses of the bank;[10]
  • "all interest, regardless of form, context, or magnitude"[11]
  • "Any excess on the principal sum of loan irrespective of the amount, purpose and duration of the loan."[12]
  • not any bank interest, but interest charged where the economically strong/rich exploit the economically poor and/or vulnerable.[13]
  • "exorbitant interest charges"[11]

Most Islamic jurists (Fuqaha) describe different kinds of Riba:[3]

  • Riba an-nasiya: Riba on Credit Transaction, when two items of same kinds are exchanged but one or both parties delays delivery or payment and pays interest, (i.e. excess monetary compensation in the form of a predetermined percentage amount or percentage).
  • Riba al-Fadl: the simultaneous exchange of unequal quantities or qualities of a given commodity.[5]
  • Riba an-jahiliya: usury practiced in pre-Islamic Arabia referred to in Quran 3:130 where inerest rates were high enough to "double and redouble" that which the borrower owed.[14]


John Esposito describes riba as a pre-Islamic practice in Arabia "that doubled a debt if the borrower defaulted and redoubled it if the borrower defaulted again".[9] It was held responsible for enslaving some destitute Arab borrowers.[11]

According to a conservative source (Youssouf Fofanaa), "some jurists saw riba forbidden early in Mecca, some in the year 2 AH and some after the opening of Mecca, but the majority agreed on its prohibition".[15] Other sources, such as the Encyclopedia of Islam and the Muslim World, state that early Muslims disagreed on whether all or only exorbitant rates of interest could be considered riba, and thus declared forbidden, but the broader definition won out with a consensus of Muslim jurists holding that any loan that involved an increase in repayments was forbidden.[11] One particular jurist (al-Jassas, d.981, who is criticized by Modernists)[14][16][17]) is credited with establishing the orthodox definition of riba -- "stipulat[ing] excess [payment] in a loan or debt", (i.e. interest on debt). [18]

Some (Timur Kuran) attribute the basis of religious condemnation of interest on loans to the widespread practice in the ancient world of selling loan defaulters into slavery and often shipping them to foreign lands. Among other monotheist Abrahamic religions, the Jewish Torah prohibited lending at interest among other Jews and collecting interest from the poor. The prohibition against interest in early Christianity made no exceptions. Centuries before Islam, Christian theologians condemned interest as an instrument of avarice.[19]

Historically, while the Islamic states followed classical jurisprudence in prohibiting an increase in repayments on loans (interest), the giving and taking of interest continued in Muslim society "at times through the use of legal ruses (hiyal), often more or less openly."[11] According to scholar Timur Kuran "In the sixteenth century, an Ottoman sultan limited the annual rate of interest to 11.5% throughout the empire, though only on transactions that satisfied the letter of the ban through stratagems; this order was duly ratified by a legal opinion (fetva)."[20] One common "stratagem" to circumvent of the ban on interest in the Ottoman era was known as istiglal and involved the borrower selling his house to a lender and immediately leasing it back. The proceeds of the sale served as the loan, the rent of the lease served as interest payment.[21]

This prohibition was reconsidered by Islamic Modernists starting in the late 19th century in reaction to the rise of European power and influence during the Ages of "Enlightenment", "Discovery" and colonialism. In the late 20th century (mid-1970s) however, Islamic revivalists/Islamists/activists have worked to define interest as riba, to enjoin Muslims to lend and borrow at "Islamic Banks" that avoided fixed rates, and to mobilize to pressure governments to ban the charging of interest. In 1976, King Abdulaziz University in Jeddah organized the First International Conference on Islamic Economics in Makkah. At the conference, "several hundred Muslim intellectuals, Shari'ah scholars and economists unequivocally declared ... that all forms of interest [were] riba".[22]


Quran and prohibition[edit]

The Qur'an deals with riba in 12 verses, the word appearing eight times in total, three times in 2:275, and once in 2:276, 2:278, 3:130, 4:161 and 30:39.[23] The Mekkan verse in Surah Ar-Rum was the first to be revealed on the topic:

And whatever Riba you give so that it may increase in the wealth of the people, it does not increase with God (Quran 30:39)

The other Medinan verses:

And because of their charging Riba while they were prohibited from it (Quran 4:161)

Those who believe do not eat up Riba doubled and redoubled (Quran 3:129-130)

يَا أَيُّهَا الَّذِينَ آمَنُواْ لاَ تَأْكُلُواْ الرِّبَا أَضْعَافًا مُّضَاعَفَةً وَاتَّقُواْ اللّهَ لَعَلَّكُمْ تُفْلِحُونَ

Culminating with the verses in Surah Baqarah:
Those who benefit from interest shall be raised like those who have been driven to madness by the touch of the Devil; this is because they say: "Trade is like interest" while God has permitted trade and forbidden interest…God deprives interest of all blessings but blesses charity.... O believers, fear God, and give up the interest that remains outstanding if you are believers. If you do not do so, then be sure of being at war with God and His messenger. But, if you repent, you can have your principal.... (Quran 2:275-280)

ذَٰلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا ۗ وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا

Jurists do not consider the first two verses as clear prohibitive verses on the matter, whereas the latter two have been understood to prohibit Muslims from riba.[15]

Tabari quotes a number of Tabi'een, who state the verse from Surah al-Rum refers to a gift whereas al-Jawzi quotes Hasan al-Basri as stating it refers to riba.[24] Either way, there is insufficient indication from this verse that riba is prohibited, if it does indeed refer to riba.

The second verse refers to the Jews and their taking of riba, which leaves it unclear if such a prohibition applies to the Muslims.[15]

The next verse is seen by many as prohibiting riba, including Ibn Hajar al-Asqalani (a medieval Shafiite Sunni scholar of Islam).[25] However it appears that recourse to some traditions relating to Amr ibn Aqyash are required for the prohibition as the verse itself could be interpreted as expressing a preference against interest.[15]

The verses from Surah Baqarah are seen as categorically forbidding riba. The backdrop to these verses was the dispute between Banu Thaqif and Banu Amr ibn al-Mughirah over riba due on loans between them. As such, the jurists historically agreed on the prohibition of riba from these verses and termed it riba al-nasia, distinguishing it from the interest in exchanging like goods in different quantities, mentioned in a number of narrations, riba al-fadl.[15]

Conservative scholar Mohammad Nejatullah Siddiqi, interprets Quranic verses (2: 275-280) to mean that riba is not only "categorically prohibited" and "unjust" (zulm), but is defined as any payment "over and above the principal" of a loan. [23] Modernist Mohammad Omar Farooq argues that the Quran condemns Riba but does not define it.[26] Raquib Zaman note that the only figures or only definition for riba given in the quran are "doubling and quadrupling (the sum lent)" in Quran 3:129-130.[14]

Hadith and prohibition[edit]

Riba is mentioned in a number of hadith (the body of reports of the teachings, deeds and sayings of the Islamic prophet Muhammad),[27] most notably in Muhammad's farewell sermon, where he is reported to have said:

"God has forbidden you to take Riba, therefore all riba obligation shall henceforth be waived. Your capital, however, is yours to keep. You will neither inflict nor suffer inequity. God has judged that there shall be no riba and that all the riba due to `Abbas ibn `Abd al Muttalib shall henceforth be waived.".[28]

Several narrators including Jabir[29] Abdul Rahman ibn Abdullah ibn Masoud[30] Abdullah[31] say that

Muhammad cursed the accepter of usury and its payer, and one who records it, and the two witnesses, saying: They are all equal.[29][31] (Abdullah, however, could not swear to the cursing of the 'And the writer and the two witnesses[31])

Examples of hadith denouncing what jurists call Riba al-Fadl include:

Narrated Abu: We used to be given mixed dates (from the booty) and used to sell (barter) two Sas (of those dates) for one Sa (of good dates). The Prophet said (to us), "No (bartering of) two Sas for one Sa nor two Dirhams for one Dirham is permissible", (as that is a kind of usury). (See Hadith No. 405).[32]

Narrated 'Umar bin Al-Khattab: God's Apostle said, "The bartering of gold for silver is Riba, (usury), except if it is from hand to hand and equal in amount, and wheat grain for wheat grain is usury except if it is from hand to hand and equal in amount, and dates for dates is usury except if it is from hand to hand and equal in amount, and barley for barley is usury except if it is from hand to hand and equal in amount.".[33]

Narrated Ibn 'Umar: Muhammad said, "The selling of wheat for wheat is Riba (usury) except if it is handed from hand to hand and equal in amount. Similarly the selling of barley for barley, is Riba except if it is from hand to hand and equal in amount, and dates for dates is usury except if it is from hand to hand and equal in amount.[34]

Narrated AbuHurayrah: Muhammad said: If anyone makes two transactions combined in one bargain, he should have the lesser of the two or it will involve usury.[35]

The gravity of committing riba is reported to have been described by Abu Huraira:

Narrated Abu Huraira: The Prophet said, "Avoid the seven great destructive sins." The people inquire, "O God's Apostle! What are they? "He said, " To associate others in worship along with God, to practice sorcery, to kill the life which God has forbidden except for a just cause, (according to Islamic law), to eat up Riba (usury), to eat up an orphan's wealth, to give back to the enemy to flee from the battlefield at the time of fighting, and to accuse chaste women who never even think of anything touching chastity and are good believers." [36]

أخرج البخاري ومسلم وأبو داود والنسائي عن أبي هريرة رضي الله عنه أن رسول الله صلى الله عليه وسلم قال اجتنبوا السبع الموبقات , قيل يا رسول الله وما هن ؟ قال الشرك بالله , والسحر , وقتل النفس التي حرم الله إلا بالحق , وأكل مال اليتيم , وأكل الربا , والتولي يوم الزحف , وقذف المحصنات الغافلات المؤمنات

According to Sunan Ibn Majah, the Islamic prophet Muhammad declared the practice of riba worse than "a man committing zina (fornication) with his own mother".[37]


A prohibition of interest on loans in the name of prohibiting riba, has been called "the most salient objective of Islamic economics."[38]

Interest as riba[edit]

Besides revealed scripture, a number of Islamist/revivalist academics have attempted to provide arguments for the prohibition of interest on loans. Ismail Ozsoy defines interest as riba and as "an unearned or unequally distributed income." In arguing that no matter what the rate of interest, the knowledge and the consent of the two parties, both the paying and the receiving of interest are sinful and unjust because the interest rate is "fixed at the very beginning, but it is impossible to predict the outcome of the business at which the loan is used, profit or loss, or how much either would be." Ozsoy states that his argument is supported by Quran 2:275-280 and particularly the phrase, "deal not unjustly and ye shall not be dealt with unjustly"[39]

Mohammad Nejatullah Siddiqi argues that prohibition of interest is prohibition of (some kinds of) exploitation. In matters of consumption loans, those who have wealth should assist those without. In productive loans, a guaranteed return on capital is unjust and sharing of profits between entrepreneur and financier is just.[40]

Taji al-Din argues that charging interest on loans restricts the circulation of wealth to those who already have it, since lenders do not provide loans to those who are unable to repay them. This is forbidden by the Quran and results in an increase the divide between the rich and poor.

Mawdudi believes the charging interest on loans causes an imbalance between production and consumption, by the transferring of purchasing power from those with a propensity to consume to those with a propensity to invest. This transfer of income increases production and decreases consumption which (somehow) increases prices of consumer goods, reinforcing this process and (Maududi believes) results in economic evils such as stagnation, depression, monopoly and ultimately imperialism. Eliminating return on capital with interest-free loans along with zakat, and profit-share would restore this balance. The focus shifts to the entrepreneur whose activity becomes the only source of income along with wages, giving him the upper hand in society. Siddiqi and Ganameh cite the hadith of "income devolved on liability" in this context.[41]

Ibn Rushd argued the rationale relates to the possibilities of cheating that exists in riba, which is clearly visible in riba fadl.[42][page needed] Other arguments that some writers[who?] try to extract from indications on the divine texts include the rationale being corruption, unjust acquisition of property rights, destruction, and a detrimental personality.

Hameedullah believes interest is unjust because the borrower bears risk and the lender does not.[43] The Islamic principle is for a reward, there must be some liability incurred; otherwise, a return is prohibited.

Permitting "bank interest"[edit]

While most Muslims and "non-Muslim observers of the Islamic world" believe that interest on loans is forbidden by Islam,[44] not all Muslims believe that all interest is riba. Doubters of the connection between contemporary "bank interest" and riba include modern jurists, such as Muhammad Abduh, Rashid Rida, Mahmud Shaltut, Syed Ahmad Khan, Fazl al-Rahman, Muhammad Sayyid Tantawy and Yusuf al-Qaradawi.[45] The earlier jurists legitimized interest for awqaf and state that investment schemes during the late period of the Ottoman rule. They were the first to introduce the notion that riba al-nasia was permitted.

Muhammad Akram Khan describes the Modernist interpretation of riba being that of the money lending found in the Makkan society where the Quran was revealed which was very different from and much more problematic than contemporary bank lending. Riba an-jahiliya involved high interest rates charged by rich money lenders to poor borrowers for purposes of consumption,[46] and lead to the accumulation of large debts and often financial slavery. The loans most prevalent in contemporary society are commercial loans for investment not consumption, transacted between sophisticated parties, offering/paying low interest rates set in a competitive and regulated market.[47] Another source (Encyclopedia of Islam and the Muslim World) gives a similar description stating critics of Islamic economics, including Islamic Modernists, believe riba is distinguished from ordinary interest, that "the goal of eradicating interest is both misguided and unfeasible," because interest is "indispensable to any complex economy", competitive financial markets "limit interest charges" and bankruptcy laws now exist "to protect borrowers against the horrors once produced by riba."[11] According to Turkish American economist and Islamic Studies scholar Timur Kuran, "As far as is known, no Muslim polity has had a genuinely interest-free economy."[48]

Writers such as Fazl al-Rahman argue that an interest rate serves as a price for financing, regulating demand for it by borrowers. If this finance cost (interest rate) is taken to zero, finance markets will be faced with limited supply and infinite demand. How would credit be allocated?[49] This problem would not apply to profit-share, cost-plus basis, or leasing of financing.

They also advanced rational economic arguments that market rate interest is not riba because it serves the public interest (Maslaha) by allowing for efficient allocation of resources, economic development. [50] Most of these arguments have been criticized by Islamic revivalist writers, including Siddiqi, Zarqa, Khan & Mirakhor and Chapra, a good case in point being the published Supreme Court of Pakistan Judgement on the matter.[51]Riba The Qur'an states:[52] Mohammad Omar Farooq argues that the Quran does not define riba and contrary to traditionalists and activists claims, hadith commonly-cited to define riba as interest are not unambiguous.[26] While riba as interest has the support of a majority of scholars it does not have a consensus (ijma)[53]

Islamic Modernist scholar such as Fazlur Rahman Malik,[54] Muhammad Asad,[55] Sa'id al-Najjar,[56] Sayyid Tantawi,[57] differ from traditionalists in arguing that riba can not just be the charging interest on loans no matter how low, but must involve exploitation of the needy. As a result many of these scholars differentiate between various forms of interest charges advocating the lawfulness of some and rejecting others.[58]

Dr Abd-al-Munim Al-Nimr, an ex-minister of 'Awqaf in Egypt, argued in Al-Ahram newspaper (June 1, 1989) that riba must involve harm to the debtor and thus banking interest with its low interest rates cannot be considered riba.[57] In May 1991 the mufti of Egypt, Dr. Muhammad Sayyid Tantawy issued several fatawa permitting bank interest. Tantawy argued that there is nothing in the Quran or Hadith that prohibits the pre-fixing of the rate of return, as long as it occurs with the mutual consent of the parties.[57][59] Since it makes little sense to suggest that modest saving account holders are exploiting sophisticated multi-billion dollar banks that pay them the interest on their accounts, banking interest cannot be considered riba.[57] Rather it is more likely that savers have an advantage since "determination of the profit in advance is done for the sake of the owner of the capital (that is the depositor) and is done to prevent a dispute between him and the bank."[57]

In August 22, 1997 Shaykh Nasr Farid Wasil also declared bank interest permissible provided the money was invested in halal avenues. He stated, "there is no such thing as an Islamic or non-Islamic bank. So let us stop this controversy about bank interest."[57][60][61]

Modernists interpreters of riba on the India-Pakistan subcontinent include: Ja'afar Shah Phulwarai (1959),[62] Tamanna Imadi (1965), Rafiullah Shihab (1966), Yaqub Shah (1967), Abdul Ghafur Muslim (1974), Syed Ahmad (1977), Aqdas Ali Kazmi (1992), and Abdullah Saeed (1995, 1996).[57]

One critic of the campaign against "the curse of interest" in Pakistan, lawyer and Islamic scholar Kemal A. Faruki, complained that much time and energy were spent on "learned discussions on riba" and "doubtful distinctions between `interest` and `guaranteed profits,`" in the Western-style banking system, while a far more serious problem affecting the poor was ignored:

usury perpetrated on the illiterate and the poor by soodkhuris (lit. `devourers of usury`). These officially registered moneylenders under the Moneylenders Act are permitted to lend at not more than 1% below the State Bank rate. In fact they are Mafia-like individuals who charge interest as high as 60% per annum collected ruthlessly in monthly installments and refuse to accept repayment of the principal sum indefinitely. Their tactics include intimidation and force.[63]


Further information: Islamic banking

In its campaign against Riba in the 1980s the regime of General Muhammad Zia ul-Haq replacing interest-bearing savings accounts with PLS (profit-loss sharing) instruments in Pakistan's state banks. The government also introduced and encouraged such banks to adopt financing schemes based upon the principles of mudaraba and or musharaka.[64]

  • Murabaha is a practice in which the "lender" (usually a bank) purchases, in its own name, goods that the borrower (usually an importer or trader) wants, and then sells the goods to him at an agreed mark-up. This mark-up is interest by a different name, and serves as a semantic work-around. The technique is used for financing trade, but because the bank takes title to the goods, and is therefore engaged in buying and selling, its profit derives from a real service and entails a degree, albeit minimal, of risk.[64]
  • Musharaka is a practice in which the "lender" (usually a bank) enters into a partnership with the borrower/client in which both share the equity capital—and perhaps even management—of a project or deal, and both share in the profits or losses according to their equity shareholding.[64]

Critics claim that Islamic banks have "found it impractical to obey their own charters" and that they have "disguised interest under a variety of charges".[11]

Benefits of alternatives[edit]

Islamists writers, have asserted that contrary to what non-Islamist economists maintain, banning interest would not mean a collapse of savings but greater stability, efficiency, development etc.

Muhammad Siddiqi states that replacing fixed rates with profit-sharing would make the financial system more stable, more entrepreneurial, and that savings would not collapse without interest because savings are a function of income and desire for interest is minor.[65] Mannan argues that replacing interest with profit and loss sharing job creation and economic vitality would be in line with the cooperative norm of the Quran.[66] Mawdudi states that interest payment holds back production that is socially useful but generates a small return.[citation needed]

Another alleged deficiency of interest on loans is that it "lends itself to speculation" as lenders seek higher interest rates (allegedly) borrowing at low interest rates to lend at higher ones thus (allegedly) disrupt "trade cycles" and interfer w/economic planning which would be remedied by banning interest charges.[67]

Financial intermediation[edit]

To deal with the problem of zero interest creating unlimited demand for investment that is limited in supply, activists such as Siddiqi suggest a two-tier mudarabah model as the basis of a riba-free banking system. This involves the bank acting as the capital partner in a back-to-back mudarabah contract with the depositor on one side and the entrepreneur on the other side. This model can be supplemented by a number of fixed-return models (like Ijara, Istisna, Murabaha etc.). In practice the murabaha model is the bank's favourite, as it bears results most similar to the interest-based finance models.

However, it has been criticised as not following the possession by bank/seller requirements and risks taken by the financier are non-existent (being insured or guarantees provided by the customer). Additionally, Khattab has criticised the whole two-tier mudarabah system as having no basis in Islamic law, as there are no instances where the mudharib passed funds onto another mudharib, and as such is questionable.

Banks have demand deposits in the nature of loans to the bank and investment deposits. Some offer guaranteed savings accounts with permission to use the funds and a discretionary reward to the depositor as in the case of the Bank Islam Malaysia Berhad. Initially, demand deposit accounts were more common, but over time, most accounts are now investment accounts, which reflects the confidence of depositors in the ability of banks to generate a return.[68] Islamic banking operations are successfully operating in many Muslim countries, including Pakistan, Bangladesh, Malaysia, Iran, Sudan, Turkey and Bahrain.

Insurance operations, starting in Sudan in 1977, have now been successfully implemented in a number of countries from Malaysia to Jordan. The takaful mudarabah model is used, compensating premium-paying subscribers in case they incur losses or damages without any interest-based activities.

International finance[edit]

Countries are crippled with servicing both non governmental and foreign debt. Often, loans readily lend to governments regardless of the project as they know that there is NO guaranteed return on capital is available. This results in projects with low or no Return on investment receiving funding, with the lenders taking no responsibility or involvement in the project or the debtors as long as continuous payments are made, even if the debts are never settled. The resulting debt, which benefits neither the taxpayers who provided the capital or the government that received it, leads to limited spending on developing their infrastructure and human capital as large amounts of future revenue are spent on debt servicing.

Accounting concept of interest[edit]

Some writers argue for an accounting concept of interest to evaluate projects and investments. As a tool for comparing projects with countries where the interest rate is operated, however, it is argued that it is hard to see why a profit rate cannot be used.

Others argue the need of a bank rate for monetary policy. Siddiqi suggests two variables that can alternatively be used: mark-up in sales with deferred payment and ratios used in sharing modes of finance. These ratios can be used to manipulate the rates of profit. They can be determined through market forces or set by governments in public interest, as is legislated in Sudan and Pakistan.

Substitute for riba[edit]

Economic modeling in an Islamic context looks to find alternative variables and parameters. For instance, many of the key models in modern economic theory have interest (riba) as a key element. According to one author, Tobin's q could replace Interest (I).[69]

See also[edit]


  1. ^ Siddiqi, Mohammad Nejatullah (1 January 2004, (8 Zul-Qa'dah, 1424H)). Riba, Bank Interest and the Rationale of its Prohibition. Islamic Research and Training Institute/Islamic Development Bank. p. 13. Retrieved 13 February 2015. Muslims have always agreed that Riba is prohibited. What constitutes Riba, has, however, been a subject evoking deliberation and debate over the centuries that followed divine revelation.  Check date values in: |date= (help)
  2. ^ Eisenberg, David. Islamic Finance: Law and Practice. Oxford University Press. p. 2.62. Retrieved 22 March 2015. 
  3. ^ a b Razi, Mohammad (May 2008). "Riba in Islam". Learn Deen. p. 19. Retrieved 4 February 2015. 
  4. ^ Siddiqi, Riba, Bank Interest, 2004: p.54
  5. ^ a b "Islamic Finance". Investment and Finance. Mar 24, 2013. Retrieved 4 February 2015. 
  6. ^ Ahmad, Abdel-Rahman Yousri. "Riba, Its Economic Rationale and Implications". Institute of Islamic Banking and Insurance. Retrieved 23 January 2015. 
  7. ^ "129458: Definition of riba and ruling on work that helps with riba". Islam Question and Answer. Retrieved 23 January 2015. 
  8. ^ Roy, Olivier. The Failure of Political Islam. Harvard University Press. p. 219. 
  9. ^ a b Esposito, John L. (2003). The Oxford Dictionary of Islam. Oxford University Press. pp. 265–6. 
  10. ^ Adamec, Ludwig W. (2001). Historical Dictionary of Islam. Scarecrow Press, Inc. pp. 136–7. ISBN 0-8108-3962-8. 
  11. ^ a b c d e f g Martin, Richard C., ed. (2004). "Riba". Encyclopedia of Islam and the Muslim World. Macmillan Reference USA. pp. 596–7. ISBN 0-02-865912-0. 
  12. ^ Khan, Muhammad Akram (2013). What Is Wrong with Islamic Economics?: Analysing the Present State and .. Edward Elgar Publishing. p. 142. Retrieved 25 March 2015. 
  13. ^ Saeed, Abdullah. Islamic Banking and Interest: A Study of the Prohibition of Riba and Its ... Brill. pp. 41–43. Retrieved 26 January 2015. 
  14. ^ a b c Zaman, Raqiub. "Riba and Interest in Islamic Banking: an Historical Review". In Ariff, Mohamed; Iqbal, Munawar. The Foundations of Islamic Banking: Theory, Practice and Education. Edward Elgar Publishing. p. 223. Retrieved 27 March 2015. 
  15. ^ a b c d e Research and Development. 3alim activities. YOUSSOUF FOFANA.
  16. ^ Farooq, Mohammad Omar (2007). "Stipulation of Excess in Understanding and Misunderstanding Riba: The Al-Jassas Link". Arab Law Quarterly, (Social Science Research Network) 21,: 285–316,. Retrieved 27 March 2015. A critical examination of the subject shows that pre-Jassas discourse about riba did not include stipulated excess as an essential condition and al-Jassas’ changing of the conditions in defining riba is not corroborated by the textual evidences he used. 
  17. ^ Zaman, Raqiub. "Riba and Interest in Islamic Banking: an Historical Review". In Ariff, Mohamed; Iqbal, Munawar. The Foundations of Islamic Banking: Theory, Practice and Education. Edward Elgar Publishing. p. 223. Retrieved 27 March 2015. Those who equate riba with interest seek support from al-Jassas, who claimed that pre-Islamic Arabia practiced a form of riba where money was lent at a predetermined sum over the principal amount. However, there is no historical evidence to suggest that riba al-jahiliya also consisted of transactions that were similar to modern loans on interest. 
  18. ^ Al-Jassas, A.R. [d.981] (no date), Ahkam al-Quran, V.I. Istanbul, Turkey, 1916, p.465
  19. ^ Kuran, Timur (2011). The Long Divergence: How Islamic Law Held Back the Middle East. Princeton University Press. p. 146. Retrieved 30 March 2015. 
  20. ^ Kuran, The Long Divergence, 2011: p.148
  21. ^ Kuran, The Long Divergence, 2011: p.152
  22. ^ Khan, Muhammad Akram (2013). What Is Wrong with Islamic Economics?: Analysing the Present State and ... Edward Elgar Publishing. 
  23. ^ a b Siddiqi, Riba, Bank Interest, 2004: p.35
  24. ^ Usmani, M T, The Historic Judgment on Interest Delivered in the Supreme Court of Pakistan, Idaratul-Ma'arif, Karachi, Pakistan, p. 21
  25. ^ Ibid pp. 23-24
  26. ^ a b Farooq, Mohammad Omar (December 27, 2009). "Riba, Interest and Six Hadiths: Do We Have a Definition or a Conundrum?". Review of Islamic Economics,. 13, No. 1, pp. 105-141, 2009 (1): 105–141,. Retrieved 26 March 2015. 
  27. ^ Sahih Bukhari. "Volume 3, Book 034 "Sales and Trade"". Usc.edu. Retrieved 2012-11-19. 
  28. ^ Last Sermon of Muhammad given on 10 Dul-hajj 10 hijra, mentioned in all book of Hadith. Sahih Bukhari mentions parts of it. Musnad Imam Ahmed recorded the longest and complete speech.
    أَلَا إِنَّ كُلَّ رِبًا كَانَ فِي الْجَاهِلِيَّةِ، مَوْضُوعٌ عَنْكُمْ كُلُّهُ، لَكُمْ رُؤُوسُ أَمْوَالِكُم لَا تَظْلِمُونَ وَلَاتُظْلَمُونَ، وَأَوَّلُ رِبًا مَوْضُوعٍ، رِبَا الْعَبَّاسِ بْنِ عَبْدِالْمُطَّلِبِ مَوْضُوعٌ كُلُّه
  29. ^ a b Sahih Muslim, Book 010, Number 3881
  30. ^ (Sunan Abi Dawoud: 3543, hadith Hasan1)
  31. ^ a b c (Sahih Muslim: 4176)
  32. ^ Sahih Bukhari, Volume 3, Book 034, Number 294
  33. ^ Sahih Bukhari, Volume 3, Book 034, Number 344
  34. ^ Sahih Bukhari, Volume 3, Book 034, Number 379
  35. ^ Sunan Abu Daud, Book 23, Number 3454
  36. ^ (Sahih Muslim: 272)
  37. ^ Abod (Sheikh), Ghazali Sheikh; Omar (Syed.) (1992). An Introduction to Islamic finance. Quill Publishers,. p. 381. Retrieved 25 March 2015. 
  38. ^ Kuran, Islam and Mammon, 2004: p.x
  39. ^ Ozsoy, Ismail, Faiz ve Problemleri (Interest and Its Problems), Nil Publications, Izmir, 1994, p. 50. ISBN 975-7455-94-6
  40. ^ Siddiqi, Mohammad Nejatullah, Muslim Economic Thinking: A Survey Of Contemporary Literature, The Islamic Foundation, Leicester, 2007, p. 63
  41. ^ Siddiqi, Mohammad Nejatullah, Muslim Economic Thinking: A Survey Of Contemporary Literature, The Islamic Foundation, Leicester, 2007, p. 63-4
  42. ^ Ibn Rushd, The Distinguished Jurist's Primer, Garnet Publishing Ltd, Lebanon
  43. ^ Siddiqi, Mohammad Nejatullah, Muslim Economic Thinking: A Survey Of Contemporary Literature, The Islamic Foundation, Leicester, 2007, p. 64
  44. ^ Kuran, Timur (2004). Islam and Mammon: The Economic Predicaments of Islamism. Princeton University Press. p. ix. Retrieved 25 March 2015. Islam, readily agree that avoiding interest is among the constraints Islam places on economic behavior, if not its most important economic requirement. Likewise, non-Muslim observers of the Islamic world generally take it for granted that to shun interest is a basic Islamic requirement. 
  45. ^ Siddiqi, Riba, Bank Interest, 2004: p.55-56
  46. ^ see also: Kuran, Timur (2011). The Long Divergence: How Islamic Law Held Back the Middle East. Princeton University Press. p. 146. Retrieved 30 March 2015. In the overwhelmingly agrarian economies of antiquity, loans for production or commerce were uncommon, and governments rarely borrowed. The main purpose for borrowing was to meet personal subsistence needs. 
  47. ^ Khan, Muhammad Akram (2013). What Is Wrong with Islamic Economics?: Analysing the Present State and ... Edward Elgar Publishing. p. 178. Retrieved 26 March 2015. 
  48. ^ Kuran, The Long Divergence, 2011: p.147
  49. ^ Al-Rahman, F, Riba and Interest, Islamic Studies, Karachi, pp. 37-38
  50. ^ Siddiqi, Riba, Bank Interest, 2004: p.57
  51. ^ Usmani, M T, The Historic Judgement on Interest Delivered in the Supreme Court of Pakistan, Idaratul-Ma'arif, Karachi, Pakistan
  52. ^ "Riba in Islam". Learndeen.com. 2008-05-29. Retrieved 2012-11-20. 
  53. ^ Toward Defining and Understanding Riba by Dr. Mohammad Omar Farooq, January 2007
  54. ^ Rahman, Fazluer, (1964) "Riba and Interest" Islamic Studies, 3 (1), 1-43 (1964)
  55. ^ Asad, Muhammad,The Message of the Qur'an, Gibraltar, 1984, pp.61-62
  56. ^ Najjar, Sa'id al (1989) 'Si'r al-Fa'ida Yu'addi Wazifa Hayawiyya fi al-Nizam al-Iqtisadi al-Mu'asir,` in Salah Muntasir (ed), Arbah al-Bunuk, Cairo: Dar al-Ma'arif, 35-42
  57. ^ a b c d e f g Khan, Muhammad Akram (2013). What Is Wrong with Islamic Economics?: Analysing the Present State and .. Edward Elgar Publishing. p. 175. Retrieved 22 March 2015. 
  58. ^ Ahmad, Abu Umar Faruq. Developments in Islamic Banking Practice: The Experience of Bangladesh. Universal Publishers. p. 60. Retrieved 22 March 2015. 
  59. ^ Khalil, Emad H. 2006 "An overview of the Shariah prohibition of riba". In Interest in Islamic Economics: Understanding Riba, edited by Abdulkader Thomas. London: Routledge. p.83
  60. ^ Al-Ittihad (newspaper UAE), 22 August 1997
  61. ^ El-Gamal, Mahmoud A. 2000 A basic guide to contemporary Islamic banking and finance. Houston TX, p.39
  62. ^ Pulwari, M.J.S., ed. 1959 Commercial interest ki fiqhi hathaiyat
  63. ^ Faruki, Kemal A. (1983). "Islamic Resurgence: Prospects and Implications". In Esposito,, John L. Voices of Resurgent Islam. p. 289. 
  64. ^ a b c Hathaway Wilson Lee, Robert M., ed. (2006). ISLAMIZATION AND THE PAKISTANI ECONOMY. Woodrow Wison International Center for Scholars. Retrieved 19 January 2015. 
  65. ^ Siddiqi, Riba, Bank Interest, 2004: p.91-113
  66. ^ Haneef, Mohamed Aslam. Contemporary Islamic Economic Thought: A Selected Comparative Analysis. Alhoda UK. p. 20. Retrieved 25 March 2015. 
  67. ^ "HOW A PROHIBITION ON INTEREST (RIBA) WOULD AFFECT TRADE CYCLES AND ENTREPRENEURSHIP". islam.ru. islamonline.com. Retrieved 25 March 2015. 
  68. ^ Siddiqi, Riba, Bank Interest, 2004: p.66
  69. ^ Meinhaj Hussain (June 2010). "Economic Model". 2.0 


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