Some information about the prohibition of riba.

1. EBB 10303|ISLAMIC ECONOMICS
“THE PROHIBITION OF RIBA IN THE MUSLIM COUNTRIES”
STUDENT NAME ID NUMBER
NORDIYANA BINTI SHOKIF 62211215051
NUR HANIM BINTI MAHADZIR 62211114553
MUHAMMAD HANIF BIN SAHUL HAMID 62211114615
WAN MUHAMMAD FARED BIN WAN AIZHAM 62214215248
SHAIK ISMETH BAQIR BIN SHAIK BADUSHA 62211114532

2. INTRODUCTION
Riba
-Arabic word:Raba
-Bring several of meanings
i. expand (Al-Nuwuw)
ii.increase (Al-Irtifa)
iii.grow ( Al-uluw)
iv.excess (Al-Ziyadah)
-Literally: additional value
-Sharia: - premium
- paid by the borrower to the lender along

3. 3
TYPES OF RIBA
Riba Al Fadl
• *exchange surplus(barter)
Riba Nasiah
• *arises in loan transactions (on the basis of
future repayment of more than the principal)
as well as sale transactions (on the basis of
deferred price).

4. HARAM
i) Already mention in the Quran
-Holy Qur’an in verse 2:275
‫ب ا‬َ‫ۚ ا‬ ‫ر‬ِّ ‫ال‬ ‫م‬َ‫ۚ ا‬ ‫ر‬َّ‫م‬ ‫ح‬َ‫ۚ ا‬ ‫و‬َ‫ۚ ا‬ ‫ع‬َ‫ۚ ا‬ ‫ي‬ْ‫َع‬ ‫ب‬َ‫ۚ ا‬ ‫ل‬ْ‫َع‬ ‫ا‬ ‫ه‬ُ ‫لا‬ ‫ل‬َّ‫م‬ ‫ال‬ ‫ل‬َّ‫م‬ ‫ح‬َ‫ۚ ا‬ ‫أ‬َ‫ۚ ا‬ ‫و‬َ‫ۚ ا‬ ۚ
“Allah has permitted trade and has forbidden
riba”.
•ii) Become a burden to any individual who are involve in this
prohibited element
•iii) Increased the amount of debt
•Iv) Suffer depression
PROBLEM STATEMENT

5. Greed & Selfishness
i. Gap between the rich & the poor
ii. Encourage monopoly
iii. Gives harm to people
iv. Wealthy people must pay zakat and giving charity

6. Effect Economy Growth
•Inflation
•Bankruptcy
•According to al-Qaradawi:
“The strict prohibition of interest in Islam is a result
of its deep concern for the moral, social and
economic welfare of mankind”
•Limited needs & wants

7. OBJECTIVE OF STUDY
To examine the prohibition of riba in Muslim
countries
To propose Muslim countries which are free from
riba
To investigate the effect to the economic because
of element Riba

8. PROHIBITION OF RIBA IN AL-QURAN
12/27/15
• Compare riba with
Zakat
• Praising Zakat, but
not Riba
• Attaching the
practice of Riba
with the Jews
• Consider the
practice as an
injustice
• Prohibition the
practice of
charging double &
multiple riba
• Conclusively
prohibiting all forms
of riba
• Any excess over
the capital is
disallowed

9. RIBA IN THE SUNNAH
12/27/15
“From Jabir b. Abdullah said: The Prophet
cursed the receiver and the payer of riba’,
the one who records it and the two
witnesses to the transaction: they are a like
in guilt”

10. MISCONCEPTION OF RIBA
1. Modern day interest is
not riba
Argument: Interest is based
on the premise “money is a
commodity”
2. There is no differences
between interest and profit
Argument: Bank interest
resembles profit in
Murabaha
3. Riba is allowed under
Dharura (Necessity)
Argument: Under Dharura,
the haram is permissible.

11. REASON FOR PROHIBITION OF RIBA
Riba will corrupt the society
• Happens due to people who has right & power
Riba cause injustice and exploitation
• Problems due to the greed & selfishness parties
Ultimate effect to the negative growth of economic
Clear burden on the borrower
• Cause negative effect on production & inflation
• Eg: Greece
• Obliged to repay the principle and interest charge

12. ALTERNATIVE SOLUTION OF RIBA
Giving/Organizing a Qard al-Hassan loan.
Developing an Islamic Banking in the country
Apply the Islamic Economic System

13. CONCLUSION
Impact of riba
increase the
rate crime
Increase
gap
between
rich and
poor
Economic
inflation
• Totally prohibited by Allah because
Riba’ will give harms to the people
large
• Implemented many banks that inline
with shariah compliance which is
Islamic bank.
• Change the Bay Inah contract to
Tawarruq contract
• We should strongly avoided and
rejected it from practicing on our daily
lives.