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Philosophy and Fundamentals of Sharī’ah for Islamic Finance
SHA0011
Sharī’ah Requirements in Mu‘āmalāt

Diagram 18 : Sharī’ah Requirements in Mu‘āmalāt

Prohibitions
1. Ribā

2. Gharar, i.e. ambiguity or uncertainty

3. Maysir, i.e. anything that involves betting
4. Producing and selling non-halal goods i.e. pork, liquor, etc

5. Facilitate Sharī’ah non-compliance activities, i.e. selling of grape to
wine producer

Prohibition of Ribā

Ribā in Arabic literally means an increase, expansion or growth. In Islamic
jurisprudence it refers to unjustified increase in the eye of Sharī’ah but not
every increase. Contrary to the general understanding, ribā is not narrowly
confined to premium that must be paid by the borrower to the lender, instead
it refers to any benefits arise out of a loan contract or transaction that
involves usurious (ribawi) items.