Understanding Islamic Law: Shariah, Fiqh, and Muamalat
1.Define and explain the following: Shariah, Fiqh and Muamalat? Describe the relationship between them?
Shariah is the Islamic law, which is
Based on the teachings of Quran and traditions of the prophet (Sunnah) that
Prescribe religious and secular duties and set penalties for law breaking.
Fiqh
Is the knowledge and understanding of Shariah law, relating to men’s act that
Has been derived from specific sources and evidences.
Muamalat are mainly acts
That involve interaction and exchange among people such as sales, but should be
Performed under the Islamic law. The relationship between those three is that
fiqh is mainly derived from shariah specifically Quran and Sunnah, and muamalat
Is considered to be one of the components of fiqh.
2.What are the differences between Shariah and Fiqh? Explain
First, shariah is God-given and it Includes all human beliefs, activities and actions, it consist of three Components: Aqidah, Akhlaq, and Muamalat. It’s derived from two primary sources Quran and Sunnah, it’s fixed and unchangeable, it lay down the basic Principles, and finally it’s generalized. Fiqh is humanly acquired, it deals With legal ruling and acts, it consist of five components: Ibadah, Munakahat, Muamalat, Uqubat, and international relations. The laws are derived from Shariah to cover situations that are not treated in the shariah law. Some Components are fixed and some might change according to the circumstances. It’s More specific and detailed, and finally explains how shariah should be applied.
3.Compare and contrast Islamic Law and Man-made Law?
Islamic law is derived from two sources The Quran and Sunnah, it’s created by God so it’s characterized by perfection, Faultless, and justice. The principles and fundamentals are fixed and not Subjected to any change or alteration. It covers past, present, and future. The Scope of Islamic law has an extensive and comprehensive coverage to the human Conduct. Finally it’s enduring, durable and everlasting in this nature and it Has indestructible features of adaptability. Man-made law system is based on human traditions, customs, experience, And experiments. It’s created by mankind, so it represents imperfection, Deficiencies, flaws, and shortcomings. The rulings are open to modifications And alteration over time. Applicable to certain, time and place. It covers past And present, but not the future. It has specific rules that govern the social, Economic, and political affairs of nation. It has three classifications, which Are: public law, international law, and private law. Finally it’s only suitable For certain time and place.
4.List and explain the components of Fiqh?
Fiqh has two main components, the first
One is Ibadat; which is the relationship between man and god, it includes act
Of worship such as: praying and fasting. Moreover it can be made up of
Permissible, forbidden, recommended, not recommended, and obligatory. The
Second part is Adat; which is the relationship of men between themselves. Those
Customs or practices can be divided into five parts: first is the Munakahat,
Which is related to family law, such as marriage and divorce. Second is the
Muamalat which is basically the commercial law, and law of property and
contract.
Third is the Uqubat which represent the criminal law, penalties, and
Procedures. Fourth is Siyasah syariyyah, which represents the constitutional
Law and the administration of the state. Fifth is the international law, which
Is the relationship between governments and nations.
5.What is Barter trade system? Why is it Problematic generally? Why Islam is against barter system?
A barter system is a system where people Exchange goods and services for other goods and services in return. Problems in A barter system are: first lack of coincidence of wants, second lack of a Standard unit of account, third impossibility of subdivision, fourth it has Lack of information, fifth is that the production of large and costly goods is No feasible, and finally difficulty in storing wealth. Barter system is not Encouraged in Islam because it’s the least efficient and practical method for Exchanging goods, in other words hardness in matching needs in addition to time Consuming. Moreover justice and fairness are difficult to achieve in such a System.
6.List and explain the types of contract?
Contract represent an agreement between
To people in a legally and binding accepted manner.
Contracts are classified as
Follow: first contract of exchange/ transfer of property is a situation where
The ownership of goods can be transferred or exchange commodities for another,
Or for money, example is Bay al Salam and Bay al Istisna’. Second is the
Contract of security, which is mainly about protecting the interest of the
Parties, and securing debts for their owners and guarantying creditors of debt
Owing to them, example is Kafalah, Rahn, and Hiwalah. Third is the contract of
Partnership, where two or more parties join a business together providing their
Skills, management, capital, profit and loss sharing, example: Mudharabah
(trust financing), and Musharakah (P&LS). Fourth is the contract of safe
Custody, where an investor deposits his money or property for either
Safekeeping or investment, example Wadiah. Fifth are contracts pertaining to
Utilization of usufruct, which is transferring the right from the owner to the
User to use the usufruct of a property for or without a consideration, example:
Ijarah, Isti’jar, Qard. The last type of contracts are contracts pertaining to
Work or service, where one of the contracting parties is requested to do a work
Whether with consideration or not, example: Wakalah, Jualah, Istisna’.
8.What is the opinion of Sheikh Yusuf Talal DeLorenzo regarding hedge Funds?
Sheikh Yusuf warn people on investing in Black boxes, which are non-shariah compliant investments in a Shariah compliant Structure, such as the hedge funds notes that distributed by Dubai Islamic Bank, where he stated that he has his own hedge fund platform that is Completely compliant.
9.What is El-Gamal opinion with regard to Islamic finance product? How does it differ from Sheikh DeLorenzo?
Mahmoud Amin thinks that Islamic institutions are selling Overpriced products to the people, and people don’t really understand the Structure, its just something that is applied on them without having knowledge, So thinks that instead of paying money to those firms and religious scholars, Its better to take this money and give it to charities. However Sheikh Yusuf Disagrees, where the Islamic finance has been arranged for institutional and High net worth investors, who are also considered to be knowledgeable Investors.