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Philosophy and Fundamentals of Sharī’ah for Islamic Finance
SHA0011

Simply put, majority of the scholars agreed that the list of ribawi items
stipulated in the Ḥadīth are extendable to other items that share similar effective
causes except they differ on what constitute these effective cause.

Effective Cause of Ribawi Items

Diagram 20 : Ribawi Materials

Rules of Exchange of Ribawi Items

Ribawi items • Items must be of the same measurement
of the same (weight or number of units)
kind of the
same basis • Payment /delivery must be on cash terms

Ribawi items measurement (weight or number
of units) is allowed
kinds of the
same basis

Ribawi items of
• No rules are imposed

basis

Diagram 21 : Rules of Exchange of Ribawi Materials

Wisdom of the Prohibition of Ribā

1. Ribā Impairs Social Justice

Ribā violates the principles of justice and equity (al-‘adl wa al-ihsān) in
financial transaction because profit of one party is guaranteed without
giving any due regards to the other party except for the borrowed
money. On the contrary, loan in Islām is considered as gratuitous-based
contract because the creditor is absolutely prohibited from taking
any advantage out of the loan on his favour except for the returning
of the principal borrowed.