What is fiqh muamalah? In Islam, fiqh muamalah is the knowledge that governs all socio-economic aspects of Muslims.
In other words, fiqh muamalah regulates trading in Islam as well as borrowing practices in accordance with sharia law.
To better understand fiqh muamalah, its legal basis, and applications, let’s go through the following explanation.
What Is Fiqh Muamalah?
This term consists of two words: fiqh and muamalah. In Arabic, fiqh means "understanding," while muamalah means "transaction" or "interaction."
From a terminological perspective, fiqh refers to Islamic legal sciences derived from textual evidence, while muamalah refers to Allah Subhanahu wa Ta'ala’s rules regarding human interactions to fulfill material needs.
Essentially, fiqh muamalah is a branch of Islamic knowledge that regulates all socio-economic interactions among humans.
In Islam, this branch governs all types of economic transactions, including buying and selling, borrowing, leasing, trade partnerships, safekeeping, debt, inheritance, wills, alimony, deposits, pre-orders, and collections.
Furthermore, fiqh muamalah is divided into two parts. The first is al-muamalah al-madiyah, which regulates the material aspects, including permissibility, value, and ownership eligibility.
The second is al-muamalah al-adabiyah, which regulates legal conduct boundaries of humans toward material objects.
From the above explanation, it is clear that fiqh muamalah plays a crucial role in ensuring that socio-economic activities align with Islamic law.
Legal Basis of Fiqh Muamalah
Like other Islamic rulings, fiqh muamalah is founded upon the principles of the Qur’an, hadith, ijma (scholarly consensus), and qiyas (analogy).
Hadiths provide further guidance on conducting transactions in line with Islamic teachings. For instance, one narration states:
"The Messenger of Allah (peace be upon him) cursed the one who consumes riba, the one who pays it, the one who records it, and its two witnesses. He said: ‘They are all equal.’" (Muslim: 1598)
Additionally, ijma and qiyas serve as secondary legal sources.
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Ijma refers to the consensus of scholars on fiqh muamalah issues not explicitly addressed in the Qur’an and hadith.
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Qiyas refers to analogical reasoning applied to modern socio-economic problems by comparing them to past cases with similar rulings.
For example, scholars use ijma and/or qiyas to determine rulings on digital financial transactions.
Principles of Fiqh Muamalah
Understanding what fiqh muamalah is not enough; its practice must follow certain principles. The fundamental principles are:
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Halal: Transactions must have good intentions, and the traded goods or services must not involve haram elements such as alcohol.
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Mubah (Permissible): All transactions are allowed unless explicitly prohibited by Islamic texts.
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Voluntary: Economic activities must be carried out without coercion.
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Beneficial: Actions should bring benefit and help avoid harm within society.
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Fair: Rules must uphold justice and avoid oppression.
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Saddu Al-Dzari’ah: Prohibition of anything that may lead to harm.
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Prohibition of Ihtikar: Ban on monopolies or hoarding goods to manipulate prices.
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Prohibition of Gharar: Ban on unjust or invalid acquisition of wealth.
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Prohibition of Maisir: Ban on gambling or transactions that benefit only one party unfairly.
Application of Fiqh Muamalah in Daily Life
With proper understanding, fiqh muamalah can be applied directly in daily life. Examples include:
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Buying and Selling: Must be honest, with halal products and mutually agreed prices without fraud.
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Investment: Must comply with sharia principles, such as musharakah (partnership) and mudharabah (profit-sharing), without interest or excessive speculation.
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Work Contracts: Must clearly outline the rights and obligations of both employees and employers, including fair wages.
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Borrowing: Loans must be free of interest, with repayment terms and amounts clearly agreed upon from the beginning.
As seen in the examples above, financing is an important consideration for sharia-based businesses.
You can utilize Sharia Financing services through the Sharia Business Unit of BFI Finance (BFI Finance Syariah). These services provide financing based on Islamic contracts.
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