"O you who have believed, do not consume one another's wealth unjustly but only [in lawful] business by mutual consent."
— Holy Qur'an, 4:29

Allah ﷻ has permitted believers to acquire earning and wealth by lawful means through consensual agreements. In Islam, there are different types of binding agreements such as musharakah, mudarabah, etc. by which business is transacted. It is unlawful for Muslims to consume the wealth of another believer by unjust means.

Introduction

Wealth is one of the immeasurable blessings Allah ﷻ bestows on human beings. For Muslims, when earned through halal means it becomes a source of divine mercy and leads one to a spiritual path that encourages acts of obedience, piety and charitable works and protects the believers from evil.

For many Canadian Muslims, halal and haram is usually restricted to food. However, the concept of halal and haram should not be confined to things like pork, alcohol and gambling only, but also to all other aspects of human existence such as our earning, lifestyle and business. If our earning is not free from haram activities and sources then everything we consume becomes haram. To not live by this fundamental precept in Islam, whether by ignorance or by complacency, has a profound effect upon the acceptance of our prayers and our ultimate state in akhira (our afterlife).

Misconceptions

The basic meaning of halal is lawful. Commodities and services permitted by Shariah (Islamic Law) are considered halal. In the Islamic terminology, halal refers to any physical goods and services we are allowed to use and take benefit from. Most goods and services are halal except for a few which are declared haram or unlawful in the Holy Qur'ān.

The Messenger of Allah ﷺ said: "It is obligatory on every Muslim to seek what is halal." (Majma Az-Zawaid, 10:291) and "Seeking of a halal earning is fardh (obligatory) after the fardh salah." (Sunan al-Baihaqi, 6:126)

Consequences of Unlawful Earning

The Messenger of Allah ﷺ said: "The person who earns unlawfully and then spends for his needs, he will be deprived of blessings. If he gives something in charity, his act will not be accepted. When he leaves his wealth as inheritance, then it will lead him to Hell." (Musnad Ahmad)

Regarding the questioning on the Day of Judgement, the Messenger of Allah ﷺ said: "Man's feet will not move on the Day of judgment before he will be asked about his life; how did he consume it, his knowledge; what did he do with it, his wealth; how did he earn it and how did he spend it, and about his body; how did he wear it out." (At-Tirmidhi, 2341)

Virtues of Halal Earning

Abu Said (RA) reports that the Messenger of Allah ﷺ once said: "The person who earns halal and then he uses it for himself or gives it to someone or clothes someone, then this act will become a cause of purity for him." (Sahih Ibn Hibban)

Conclusion

Unfortunately, the time has come when a person does not care whether his money is earned by halal or haram means. Once a Muslim becomes cognisant of the importance of halal earnings it is incumbent on him or her to avoid haram sources of income.

For Muslims, one of the most critical aspects of applying Shariah to income is to ensure that all income sources are halal. Islamic investment and finance place huge importance in ensuring that income from businesses and investment are halal based on principles enshrined in the Holy Qur'an and Sunnah.

Written by: Shabbir Khan CPA, Munaf Solaiman MSc