Financial Guidance in Surah al-Baqarah

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The Quran begins with the prayer for guidance (Surah al-Fateha). Believers recite it daily in every contact prayer (الصَّلَاةَ). Immediately after Surah al-Fateha is Surah al-Baqarah, which begins with the statement that it is a guidance for the mutaqqin ( لِلْمُتَّقِينَ). The mutaqqin are those who ward off /protect themselves from something harmful, i.e. they are conscious of their duty to Allah, and therefore they strive to keep their duty to Allah, so that He saves them from The Fire of Hell. Among the salient characteristics of the mutaqqin is that they spend (يُنْفِقُونَ) from what they have been given. 

Surah al-Baqarah is the longest surah in The Quran consisting of 40 ruku, which contain a total of 286 ayaat. It begins with the idea of spending, mentions spending in context across the surah, and then towards the end dedicates five ruku on financial matters: three on infaq, one on riba, and one on how to contract debts.   

To learn the financial guidance in Surah al-Baqarah, the following is a study of the key words (أَنْفِقُوا (Spend) ; الْمَالَ (Wealth) ; الزَّكَاةَ (Zakat  (tax));  الرِّبَا (Riba (usury / interest)); دَيْنٍ (Debt) ) across the surah.

 

أَنْفِقُوا (Spend)  

Search result for trilateral root nūn fā qāf (ن ف ق) : https://corpus.quran.com/qurandictionary.jsp?q=nfq#(2:3:8). Notice that spending and hypocrisy share the same root words, and are opposed to each other. The Believer spends, while the hypocrite withholds. Some key learnings with ayat number:  

Q2:3 the mutaqqin spend from what We have provided them 

Q2:195 spend in the cause of Allah (context fighting to establish Deen)  

Q2:215 they ask what they should spend: say that which you spend of good (مَا أَنْفَقْتُمْ مِنْ خَيْرٍ) should go to: parents, near kindred / those close to you, orphans, needy, and the wayfarer. 

Q2:219 they ask what they should spend: say, whatever is superfluous / left after meeting your needs 

Q2:254 O ye who believe! spend of that wherewith We have provided you ere a day come when there will be no trafficking, nor friendship, nor intercession. The disbelievers, they are the wrong-doers (This ayat precedes the famous Ayat-ul-Kursi) 

The three ruku on spending (35-37) begin from ayat 261 through 273 of Surah al-Baqarah (translation: Pickthall: 

2:261  The likeness of those who spend their wealth in Allah's way is as the likeness of a grain which groweth seven ears, in every ear a hundred grains. Allah giveth increase manifold to whom He will. Allah is All-Embracing, All-Knowing

2:262  Those who spend their wealth for the cause of Allah and afterward make not reproach and injury to follow that which they have spent; their reward is with their Lord, and there shall no fear come upon them, neither shall they grieve

2:263  A kind word with forgiveness is better than almsgiving followed by injury. Allah is Absolute, Clement

2:264  O ye who believe! Render not vain your almsgiving by reproach and injury, like him who spendeth his wealth only to be seen of men and believeth not in Allah and the Last Day. His likeness is as the likeness of a rock whereon is dust of earth; a rainstorm smiteth it, leaving it smooth and bare. They have no control of aught of that which they have gained. Allah guideth not the disbelieving folk

2:265  And the likeness of those who spend their wealth in search of Allah's pleasure, and for the strengthening of their souls, is as the likeness of a garden on a height. The rainstorm smiteth it and it bringeth forth its fruit twofold. And if the rainstorm smite it not, then the shower. Allah is Seer of what ye do

2:266  Would any of you like to have a garden of palm-trees and vines, with rivers flowing underneath it, with all kinds of fruit for him therein; and old age hath stricken him and he hath feeble offspring; and a fiery whirlwind striketh it and it is (all) consumed by fire. Thus Allah maketh plain His revelations unto you, in order that ye may give thought

2:267  O ye who believe! Spend of the good things which ye have earned, and of that which We bring forth from the earth for you, and seek not the bad (with intent) to spend thereof (in charity) when ye would not take it for yourselves save with disdain; and know that Allah is Absolute, Owner of Praise

2:268  The devil promiseth you destitution and enjoineth on you lewdness. But Allah promiseth you forgiveness from Himself with bounty. Allah is All-Embracing, All-knowing

2:269  He giveth wisdom unto whom He will, and he unto whom wisdom is given, he truly hath received abundant good. But none remember except men of understanding

2:270  Whatever alms ye spend or vow ye vow, lo! Allah knoweth it. Wrong-doers have no helpers

2:271  If ye publish your almsgiving, it is well, but if ye hide it and give it to the poor, it will be better for you, and will atone for some of your ill-deeds. Allah is Informed of what ye do

2:272  The guiding of them is not thy duty (O Muhammad), but Allah guideth whom He will. And whatsoever good thing ye spend, it is for yourselves, when ye spend not save in search of Allah's Countenance; and whatsoever good thing ye spend, it will be repaid to you in full, and ye will not be wronged

2:273  (Alms are) for the poor who are straitened for the cause of Allah, who cannot travel in the land (for trade). The unthinking man accounteth them wealthy because of their restraint. Thou shalt know them by their mark: They do not beg of men with importunity. And whatsoever good thing ye spend, lo! Allah knoweth it

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الْمَالَ (Wealth)  

Search result for trilateral root nūn mīm wāw lām (م و ل) : https://corpus.quran.com/qurandictionary.jsp?q=mwl#(2:177:20) Some key learning with ayat number: 

Q2:155 we will definitely be tested in our wealth, among other things 

Q2:177 attaining birr (state of pristine purity) involves spending wealth, in spite of love for it, on 'those the near relatives, and the orphans, and the needy, and (of) the wayfarer, and those who ask, and in freeing the necks (slaves)' ... 'pay zakat', ...  

Q2:188 last ayat of the ruku on fasting commands that one should not eat up one's own wealth vainly, nor use it to bribe authorities so as to consume others' wealth sinfully   

Q2:247 when Allah appointed Talut (Saul) as their King, the Bani Israel debated his appointment, as he had less wealth than them. Their Prophet informed them that Allah chooses whom He Wills, and had increased him in knowledge and physique. 

Q2:261 the first ayat of the three ruku on spending describes spending in Allah's way through the example of a grain which grows seven ears of grain, each with one hundred grains, Allah giving manifold increase to whom He Wills (as reward in the Hereafter)  

Q2:262 this manifold reward comes with the pre and post clauses

• they spend for the cause of Allah 
• they do not follow their spending with reminders of their generosity, nor with taunts, insults, harm, injury ( ثُمَّ لَا يُتْبِعُونَ مَا أَنْفَقُوا مَنًّا وَلَا أَذًى ) 

Q2:264 clearly warns against rendering charity spending void by reminders and injury ( لَا تُبْطِلُوا صَدَقَاتِكُمْ بِالْمَنِّ وَالْأَذَىٰ ) 

Q2:265 presents the example of those who spend to please Allah, and to strengthen their nafs, is like a garden on a height, which does well whether it is struck by heavy rainstorms, or receives just light showers  

Q2:274 those who spend from their wealth, night and day, secretly and openly, their reward is with their Lord, and they will neither fear nor grieve (on the Day of Recompense) 

Q2:279 warning from Allah and His Messenger of War against those who consume Riba: leave Riba and you can keep your principal amount, neither wronging nor being wronged  

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الزَّكَاةَ (Zakat  (tax))  

Search result for trilateral root zāy kāf wāw (ز ك و) : https://corpus.quran.com/qurandictionary.jsp?q=zkw#(2:177:35) Though generally translated in terms of purity, it actually means increase or growth, as made clear in Q9:103 

Purity is associated with the body, while growth is associated with the Nafs. A bit on it at the bottom of a prior post: The Same Religion (الدِّينِ). 

Q2:43 after narrating the story of Adam (Q2:30-39), Q2:40 onwards addresses the Bani Israel, ... ; Q2:43 also exhorts them to establish worship, pay zakat, and bow with those who bow.  

Q2:83 the covenant with Bani Israel, which included the payment of zakat 

Q2:110 the believers are being commanded to: establish prayer, pay zakat, and they are being assured that whatever good they send on for their nafs, they will find it with Allah. He beholds everything they do. 

Q2:129 Abraham's prayer that Allah raise a messenger from among them (people of Makkah) who would 'shall recite unto them Thy revelations, and shall instruct them in the Scripture and in wisdom and shall make them grow.'. ... 

Q2:151 the ayat just before ends with '... Fear them not, but fear Me! - and so that I may complete My grace upon you, and that ye may be guided', and then Q2:151 reads: 'Even as We have sent unto you a messenger from among you, who reciteth unto you Our revelations and causeth you to grow, and teacheth you the Scripture and wisdom, and teacheth you that which ye knew not.' 

Q2:174 the ayaat just before instruct to eat from the good things Allah has provided, and to render thanks (by sharing?), and list the only four things that Allah has prohibited from eating; and then Q2:174 reads: 'Lo! those who hide aught of the Scripture which Allah hath revealed and purchase a small gain therewith, they eat into their bellies nothing else than fire. Allah will not speak to them on the Day of Resurrection, nor will He make them grow. Theirs will be a painful doom.'

Q2:177 lists the beliefs and actions that help attain birr (state of pristine purity): among them is spending wealth on 'those the near relatives, and the orphans, and the needy, and (of) the wayfarer, and those who ask, and in freeing the necks (slaves)', establishing prayer, and the payment of zakat 

Q2:232 there is greater purity and growth for couples to choose to remain married when they complete the waiting period of their intention to divorce, and so they should not be prevented if they make this choice  

Q2:277 the ayat just before is about usury not growing with Allah; then Q2:277 gives glad tidings to those who believe, do acts of reform, establish prayer, and pay zakat, that their reward is with their Lord, and on them shall be neither fear nor grief (on the Day of Judgement)  

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 الرِّبَا (Riba (usury / interest)) 

Search result for trilateral root rā bā wāw (ر ب و) : https://corpus.quran.com/qurandictionary.jsp?q=rbw#(2:275:3)  Notice that the root also implies increase, swelling up, exceed, ...we can observe it in the use of the root  (ر ب و) twice in Q2:276 (ٱلرِّبَوٰا۟  ||  يُرْبِى):  

Riba is essentially a flow of wealth from the poor to the rich. The last ayat of the third ruku on spending explains that spending is for the poor who don't beg. Then, the ruku on Riba (38) begins from ayat 274 through 281of Surah al-Baqarah: 

2:273  (Alms are) for the poor who are straitened for the cause of Allah, who cannot travel in the land (for trade). The unthinking man accounteth them wealthy because of their restraint. Thou shalt know them by their mark: They do not beg of men with importunity. And whatsoever good thing ye spend, lo! Allah knoweth it

2:274  Those who spend their wealth by night and day, by stealth and openly, verily their reward is with their Lord, and their shall no fear come upon them neither shall they grieve

2:275  Those who swallow usury cannot rise up save as he ariseth whom the devil hath prostrated by (his) touch. That is because they say: Trade is just like usury; whereas Allah permitteth trading and forbiddeth usury. He unto whom an admonition from his Lord cometh, and (he) refraineth (in obedience thereto), he shall keep (the profits of) that which is past, and his affair (henceforth) is with Allah. As for him who returneth (to usury) - Such are rightful owners of the Fire. They will abide therein

2:276  Allah hath blighted usury and made almsgiving fruitful. Allah loveth not the impious and guilty

2:277  Lo! those who believe and do good works and establish worship and pay the poor-due, their reward is with their Lord and there shall no fear come upon them neither shall they grieve

2:278  O ye who believe! Observe your duty to Allah, and give up what remaineth (due to you) from usury, if ye are (in truth) believers

2:279  And if ye do not, then be warned of war (against you) from Allah and His messenger. And if ye repent, then ye have your principal (without interest). Wrong not, and ye shall not be wronged

2:280  And if the debtor is in straitened circumstances, then (let there be) postponement to (the time of) ease; and that ye remit the debt as almsgiving would be better for you if ye did but know

2:281  And guard yourselves against a day in which ye will be brought back to Allah. Then every soul will be paid in full that which it hath earned, and they will not be wronged 

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Usury makes the rich richer, and increases poverty in general. Spending on the poor improves their purchasing power, which benefits the economy as a whole. Muslims need to not only spend on the poor, but also give up usury, both on the personal and on the national level. Ideally, the interest-based banking system should be done away with, and replaced with the financial system decreed by Allah. We have to begin somewhere: an alternate solution to avoid interest-based loans in: A Muslim Financial System. 

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دَيْنٍ (Debt) 

Search result for trilateral root dāl yā nūn (د ي ن) : https://corpus.quran.com/qurandictionary.jsp?q=dyn#(2:282:6). Notice that Deen (دِين) and Dayn (دَيْن) share the same root words. We believe that on the Day of Deen we will be recompensed for all that we spend in this world. After providing guidance for spending and the warnings against usury, ruku 39 instructs us regarding contracting debt. It consists of only two ayaat: 282 and 283 of Surah al-Baqarah. Ayat 282 is the longest ayat in The Quran: 

2:282  O ye who believe! When ye contract a debt for a fixed term, record it in writing. Let a scribe record it in writing between you in (terms of) equity. No scribe should refuse to write as Allah hath taught him, so let him write, and let him who incurreth the debt dictate, and let him observe his duty to Allah his Lord, and diminish naught thereof. But if he who oweth the debt is of low understanding, or weak, or unable himself to dictate, then let the guardian of his interests dictate in (terms of) equity. And call to witness, from among your men, two witnesses. And if two men be not (at hand) then a man and two women, of such as ye approve as witnesses, so that if the one erreth (through forgetfulness) the other will remember. And the witnesses must not refuse when they are summoned. Be not averse to writing down (the contract) whether it be small or great, with (record of) the term thereof. That is more equitable in the sight of Allah and more sure for testimony, and the best way of avoiding doubt between you; save only in the case when it is actual merchandise which ye transfer among yourselves from hand to hand. In that case it is no sin for you if ye write it not. And have witnesses when ye sell one to another, and let no harm be done to scribe or witness. If ye do (harm to them) lo! it is a sin in you. Observe your duty to Allah. Allah is teaching you. And Allah is knower of all things

2:283  If ye be on a journey and cannot find a scribe, then a pledge in hand (shall suffice). And if one of you entrusteth to another let him who is trusted deliver up that which is entrusted to him (according to the pact between them) and let him observe his duty to Allah his Lord. Hide not testimony. He who hideth it, verily his heart is sinful. Allah is Aware of what ye do 

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Earlier on in Surah al-Baqarah, we read about when Allah informed the angels that He was going to appoint a Khalifa for the Earth. The ayaat (Q2:230-239) briefly recount Adam's appointment and fall, and that Allah promises to send guidance, and whoever follows the guidance will neither fear nor grieve. 

In The Quran, Surah Ta Ha, we learn that Adam was under a covenant, so even though Iblis seduced both Adam and his wife, yet the blame of Adam's disobedience is placed on him. The Torah delves into the Genesis story in greater detail, and mentions how the serpent managed to make Adam's wife go astray. It seems that females are biologically more vulnerable, more prone to being led astray, and thus the directive to take two female witnesses in debt contracts in lieu of one male witness. For more on it, please read: Female recall. It seems that Allah compensates women's weakness by reducing their responsibility, allowing for two women to share the burden of testimony. Debts are too serious a matter, and it is crucial that justice is done. 

We have an appointment with Allah. The Day is called يَوْمِ الدِّينِ (Q1:4). We know from other ayaat of The Quran that everything we say and do is being recorded by honourable writers (Q82:11). Allah is teaching us how to maintain a proper record of whatever is owed to anyone, as well as what to do in exceptional situations when writing down the debt contract is not possible. 

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References & Links   

Screenshots of Quran ayaat from Quran.com 

English translation by: Pickthall  

Compare 50+ English translations at islamawakened.com 

Arabic text & root words search from corpus.quran.com  

A Muslim Financial System

The final instructions in Surah al-Baqarah include the warning against Riba (thirty-eighth ruku (ayaat 274-281)). The following are excerpts from that ruku: 

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Allah & His Messenger have declared a war against those who consume Riba. Those who believe therefore rightly worry about the financial system in their countries, where the modern banking system is well-entrenched in their economy, and thus, directly or indirectly, everyone is affected by the interest-based transactions. The lack of earnestness on part of the leadership to govern according to Divine Decrees makes matters worse. For example, Pakistan was created with the slogan: 

Pakistan became a sovereign state on Ramadan 27, 1366, (August 14, 1947). Its been over 77 lunar years, and almost 75 years according to the solar calendar. Pakistan declared itself an Islamic Republic in 1956. The Constitution of Pakistan requires all laws to be Shariah compliant. The Council of Islamic Ideology of Pakistan has submitted its report on riba-free economy. In spite of all this, the country continues to operate in the interest-based environment, internally and externally. On the external front, it is heavily indebted to lending organisations, and a large part of its budget goes into debt servicing. On the internal front, along with interest-based banks, another parallel islamic banking system has emerged, which has become widely popular. However, critics of the islamic banking say that its just a different method of book-keeping, while essentially they are also working the same way as interest-based banks. For the ordinary muslim, with little to no knowledge of technical matters, all this is very confusing, and discouraging, to say the least. How do they compete in the economic field without capital to invest? 

Alternate Solution 

To comply with Allah's prohibition on Riba, and to overcome the changing value of fiat currency, why not  peg the value of the loan to the rate of gold? Suppose someone borrows PKR 10 million. The lender would just have to check the the rate of gold on the day the loan is being taken, and book it simultaneously in terms of its value in gold and in the local currency. Since the transaction will be payable and recoverable in the national currency, thus there would be no need to worry about gold reserves. However, in such a transaction, the principal of the lender will be secured, unaffected by the time-value of money, and the borrower will not be overloaded with interest payments. Experts in the subject could work out how it would be feasible to apply this over short vs long term loans, etc. 

Such a system should naturally encourage people to borrow from such institutions, instead of interest-based banks. As the business of interest-based banks declines, they may choose to adopt this method, or take their business elsewhere. 

We either choose to willingly adopt a riba-free system, or we suffer and learn the hard way. Eventually, Allah's Deen, will be established, and replace all false systems with divinely-ordained systems:   

Notice of War by Allah and His Messenger 

Allah grants sustenance, and determines who is granted how much. The Quran exhorts believers to spend from what they have been given. 

Allah has decreed the system of Zakat, which essentially ensures a flow of wealth from the rich to the poor. 

Riba is a system which essentially ensures the flow of wealth from the poor to the rich. It leads to many financial and economic problems in society, eventually culminating in slavery. 

The prohibition on Riba is upon all believers of the Abrahamic faith. 

A week before his alleged crucification, Jesus عليه السلام took violent measures against the money changers and merchants. This event is famously known as the Cleansing of the Temple. To quote from Wikipedia [dated July 16, 2022]: 

A common interpretation is that Jesus was reacting to the practice of money changers routinely cheating the people, but Marvin L. Krier Mich observes that a good deal of money was stored at the temple, where it could be loaned by the wealthy to the poor who were in danger of losing their land to debt. The Temple establishment therefore co-operated with the aristocracy in the exploitation of the poor. One of the first acts of the First Jewish-Roman War was the burning of the debt records in the archives.    

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Surah al-Kahf begins with a warning of great violence from near Allah. Muslims and Christians believe that Jesus عليه السلام, the Messenger of Allah, will return during end times for the final Great War. It is believed that he will annihilate the Dajjal (the false messiah). When the false messiah and his systems are destroyed, then the Deen of Allah will prevail over all other deens. 

Debt-ridden economies, and other existential crises, are increasingly challenging humanity's will to trust Allah. Surah al-Hajj combines the false promises of technology and wealth in one example: 

Allah’s creations and the systems Allah has created are far superior to anything humans can come up with. It’s in our best interest to adopt an interest-free financial system. 

Related Posts 

Jesus (عليه السلام) – Ascension & Return 

Detailed Guidance in Surah alKahf  

Purchase with Your Leaf 

The Prophesy 

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Hired for Khilafat

[Al-Quran 33:35, Translation: Dr. Mustafa Khattab]: 

People ask why The Quran speaks to men, and why does it only describe the rewards they will get in the Hereafter. They also object that it doesn't detail the reward that women can expect in the Gardens of Eternity. Why are the details of the rewards for women not been spelled out? 

In business communication meetings, the employer invites the relevant employees to communicate whatever they need to be informed about, so that they are able to perform their jobs well. Generally, their families are not invited to the business communication meetings. 

The Bible, Genesis 1 26-28, informs us that Allah created humans (men and women) in His Image to rule over all living creatures. Genesis 2 7 informs us about the creation of the man who came to be known as Adam. It also mentions the creation of his wife especially for him (Genesis 2 20-23), as his help meet. Genesis 3 narrates the Fall of Adam, and the Divine Decree that Adam will rule over his wife (Genesis 3 16). 

The Quran also describes two creation stories: the general one, and the Adam one. It informs us that Adam was specifically created for the Khilafat of the Earth (Q2:30). It speaks of the covenant taken from Adam (Q20:115) and all the prophets (Q33:7). It holds Adam responsible for his Fall, as the covenant had been taken from Adam (Q20:121). The Quran contains an entire surah titled An-Nisa` (Women), containing some detailed instructions regarding women, requiring humans to keep their duty regarding Allah, and the womb. Men are made in charge of women (Q4:34). It also mentions the danger they are in from Satan (Q4:119). 

The Quran addresses the men because they have been hired to rule according to the khilafat of the earth role that Adam was created for. They have roles and responsibilities that they must fulfil. Their renumeration package is also spelled out in detail.  

They have been blessed with a family in this world, and in the Hereafter also they are promised reunification with the righteous among their families: 

Related Posts 

The Devils among The Angels, & The Khilafat of Adam  

The Covenant & Its Ratification 

Humans: Extinct & Extant 

Guarding the Womb 

The Creation & Emergence of Species