BLOG OF KNOWLEDGE (Shari'ah, Law, Islamic Finance and Muslim News)
Shari'ah, Law, Islamic Finance and Muslim News
Monthly Archives: August 2009
August 18, 2009
DR. ZULKIFLI HASAN
Best Wishes for Holy Month of Ramadhan al-Mubarak
Assalamualaikum,
Dear Readers,
On the arrival of this blessed month,Ramadhan al-Mubarak I would like to extend my best wishes to all my weblog readers a blessing and spiritually fruitful month. May Allah gives His blessings and forgiveness upon all of us. May this Ramadhan al-Mubarak brings us good health, happiness, peace and more important iman and taqwa.
Happy Ramadhan al-Mubarak

Best Regards

ZULKIFLI HASAN

DURHAM UNIVERSITY
Dubai, United Arab Emirates
Islamic finance news
Leave a comment
August 14, 2009
DR. ZULKIFLI HASAN
Registration of Shari’ah Advisers Guidelines by the Securities Commission of Malaysia
Assalamualaikum,
Dear Readers,
Since I received numerous feedbacks from my previous weblog post on Malaysian Regulators Simplifies Shariah Advisers Rule, I attach herewith full version of the Shari’ah Advisers Guidelines issued by the Securities Commission of Malaysia for reference.
Shari’ah Advisers Guidelines
Best Regards

ZULKIFLI HASAN

DURHAM UNIVERSITY
Liverpool Stadium, UK
Islamic finance news
Leave a comment
August 11, 2009
DR. ZULKIFLI HASAN
Malaysian regulator simplifies syariah advisers rule
Available at:
http://www.themalaysianinsider.com/index.php/business/34729-malaysian-regulator-simplifies-syariah-advisers-rule
Malaysia’s capital market regulator has issued guidelines to simplify the registration of religious experts who advise on Islamic financial products and services. Under the rules which take effect today, syariah advisers who meet the eligibility and appointment criteria stated in the guidelines can advise on all Islamic products regulated by the Securities Commission, the regulator said in a statement.
Previously, syariah advisers had to fulfil the eligibility and appointment criteria contained in the individual rules relating to Islamic products such as unit trust funds, the Securities Commission said. The Registration of Syariah Advisers guidelines apply to local and foreign religious experts, the Securities Commission said. The full guidelines are on the Securities Commission’s website at
http://www.sc.com.my
. — Reuters
Best Regards

ZULKIFLI HASAN

DURHAM UNIVERSITY
With Dr. Nagaoka Shinsuke, Kyoto University.
Islamic finance news
3 Comments
August 8, 2009
DR. ZULKIFLI HASAN
Constructive and Positive Suggestions Rather Than Negative Criticism
Quoted from Professor El Gamal Available at
http://elgamal.blogspot.com/
Rebooting Islamic Finance: It’s Time
I have been very critical of Islamic finance as it has evolved since the 1970s: an inefficient part of the international financial system that served no purpose except line the pockets of lawyers and experts. Now that the tools of structured finance have been proven to be as much a disaster as others and I had warned, perhaps participants in this industry – many of whom are sincere, I am sure – will hopefully abandon their response to my critiques: “what is wrong with SPVs, that is how all finance is done with success.”
Perhaps now is the time to switch from negative criticism to positive suggestions of how to do things differently. This is not an area where I believe in keeping ideas to oneself until one publishes them or makes some money in consulting fees for proprietary structures. Also, it is an area where open discourse may help to improve upon proposals. So, here we go, starting with possible innovations in microfinance structures that I hope to start investigating experimentally this summer.
Notes: This is what Islamic finance waiting for. Criticism is much welcome but constructive criticism with positive suggestions are much more needed in the industry. I believe that Islamic finance industry is now in the new phase of its development towards a new direction. If the Prophet SAW migrated (hijrah) to Medina for the sake of Allah, Islamic finance shall also do the same. Hijrah from concentrating on Shari’ah-compliant instruments towards Shari’ah-based products. Hijrah from maximising Shareholder-value towards stakeholder-value with maqasid Shari’ah and social justice as the paramount consideration. It is time for Hijrah. Hijrah!!!!!!
Best Regards

ZULKIFLI HASAN

DURHAM UNIVERSITY
Osaka Castle (Built in 1583 by Toyotomi Hideyoshi), Osaka, Japan.
Islamic finance news
3 Comments
August 5, 2009
DR. ZULKIFLI HASAN
World’s First Shari’ah-law Compliant Legal Firm
By Joshua Scott,Rashida Yosufzai Available at:
http://asia.legalbusinessonline.com/news/breaking-news/worlds-first-shariah-law-compliant-firm-launched/36240
United Arab Emirates-based law firm Agha & Shamshi is believed to be the first firm in compliance with Islamic law, a move which the firm’s founding partner, Oliver Agha, said is motivated by principle and philosophy. “The vision is to create a firm that lives true to the principles of Islamic finance, which means having an ethically based law firm that ensures it is practicing law. Also, not engaging in activities that are impermissible under the shariah,” Agha said in a radio interview with talk show FM station, Dubai Eye. But just how does a firm operate in compliance with shariah principles? Agha said that Agha & Shamshi abstains from investing the funds at its disposal in conventional instruments. More significantly, the firm turns away clients and legal work that does not comply with Islamic principles, like those in the casino or interest-lending businesses.
“We have had to turn work away,” Agha said. “We have had to say ‘no’ to conventional finance work. Large banks asked us to represent them on conventional transactions, which in my past life would have been fantastic. We have had to say ‘no’ to dispute resolution matters that entailed pursuing a debt with interest. So these are the sort of things that we have had to decline because we’re sticking to our principles.” Agha said that even with having to turn away work as a result of its shariah-compliance policy, there is still more than enough on offer. “We believe that in this region there ought to be enough business to allow a small firm like ours to get by,” he said. “Let’s not forget that a huge amount of law has nothing to do with interest-bearing debt. You have projects, construction and EPC contracts, energy projects, and project finance done through Islamic financing. There is a lot that we can keep busy with and we will be able to do that.”
Agha also made headlines late last year, after walking away from a top position as DLA Piper’s head of Islamic Finance. In January, he opened his own firm and formed an alliance with US firm Pillsbury, citing the “right cultural and strategic fit” between the two businesses. At the time, Agha had intended to develop his firm “based on ethical Islamic principles.” But this is not the only legal business to have signalled interest in structuring itself along shariah-law lines. In late July 2009, UK firm Norton Rose highlighted the importance of Islamic finance to its long-term Gulf strategy, and strongly implied that a similar model may be on the cards. “The spread of Islamic finance and principles in international business is set to continue,” said Middle East international managing partner and head of finance, Campbell Steedman. “An understanding of Islamic culture and the development of shariah-compliant products throughout all our practice areas will be an essential part of both our development and the development of the market, in the years ahead.”
Best Regards

ZULKIFLI HASAN
Kyoto, Japan
Islamic finance news
1 Comment
Post navigation
Newer posts →
AUTHOR
DR. ZULKIFLI HASAN
Menu
Welcome to My Blog of Knowledge

About Me

Professional Background

My Journal

My Selected Publication

My Course Outline

My Lecture Note

My Recommended Reading

My Statute

My Case Report

My Guideline

My Idea

My Thought

My ‘Quest for Meaning’

My Activity

My Conference

My Corporate Governance Network

My Distance Learning

My E-Fatwa

My E-Lecture Series

My Guidance

My Hyperlink

My Key Terms and Concepts

Islamic Science University of Malaysia

Archives

My Movie
Search
Al-Baqarah, 2:275
Calendar
August 2009

M

T

W

T

F

S

S

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31
« Jul
Sep »
Academic
Centre for Islamic Area Studies at Kyoto University

Durham Islamic Finance Programme

Harvard University Islamic Finance Project

IIUM Institute of Islamic Banking and Finance

INCEIF

International Institute of Islamic Economics

International Shari'ah Research Academy for Islamic Finance

MIHE
Blogroll
Abdullah Saeed

Mahmud El-Gamal

Mohammad Obaidullah

Monzer Kahf

Muhammad Nejatullah Siddiqi

Muhammad Umer Chapra

Sheikh Ahmad Raysuni

Sheikh Imran Hossein

Sheikh Muhammad Afifi Al Akiti

Sheikh Muhammad Said Ramadhan al-Buthi

Sheikh Muqbil Haadee

Sheikh Salman Audah

Sheikh Tariq Ramadan

Sheikh Wahbah al-Zuhayli

Sheikh Yusuf al-Qaradawi

Syed Hossein Nasr

Zakir Naik
Higher Education
Association of African Universities

Consortium for North American Higher Education Collaboration

Education International

Higher Education in Malaysia

UNESCO

University and College Union
Institutional Infrastructure for Islamic Finance
Accounting and Auditing Organization for Islamic Financial Insitutions

General Council of Islamic Banks and Financial Institutions

International Islamic Financial Market

Islamic Development Bank

Islamic Financial Services Board

Islamic International Rating Agency

Islamic Research and Training Institute

Liquidity Management Centre
Islamic Finance Worldwide
Islamic Finance in Germany

Islamic Finance Indonesia

Islamic Finance Turkey
Muslim Activist
Fethullah Gulen

Hamza Tzortzis

Hamza Yusuf

Lauren Booth

Yahia Abdul Rahman

Yvonne Ridley
Muslim Da'wah Movement
ABIM Negeri Sembilan

Islamic Society of North America

Minda Madani

Muslim Brotherhood

Muslim Council of Britain

Muslim Student Association of Japan

Swiss Muslim Society
My Hobby
Muslim Soccer Blog

Ulama Nusantara
My Malaysia
Centre for Policy Initiative

Centre for Public Policy Studies

Institute of Strategic and International Studies

Malaysian Institute of Economic Research

Socio-Economic and Environmental Research Institute
My Usrah
ABIM

Baytulkifli

Hanif's Family

Malaysian Durham Scholars

MISG
Website on Islamic Finance
Al Huda

Al Sukuk

Global Islamic Finance Centre

Invest Halal

Islamic Business Research Centre

Islamic Finance

Islamic Finance Asia

Islamic Finance Blogspot

Islamic Finance Information Service

Islamic Finance Resources

Muslim Investor

Muslim Net

My Professional Group Directory

Opalesque Islamic Finance

Westlaw Business Islamic Finance
Categories
Islamic finance news

Muslims News

My Publication

My recent publication

My Story

My Thought

News

Palestine

Poem
Blog Subscriptions
Enter your email address to follow this blog and receive notifications of new posts by email.
Email Address:
Sign me up!
Blog Stats
565,904 hits
Recent Comments
DR. ZULKIFLI HASAN on
FIQH JIHAD ASAS MEMAHAMI KRISI…

Muhammad Khaliff on
FIQH JIHAD ASAS MEMAHAMI KRISI…

asma
on
Islamic finance: Attractive fo…

brosafwan
on
Islamic body goes global to fi…

Siti on
Guru Sebagai Murabbi, Mudarris…

Hasnan Daud (HD)
on
Tajdid and Mujaddid

asma on
IMF endorses Islamic finance,…

DR. ZULKIFLI HASAN on
Letter from Yusuf al Qaradawi…

Aiman Achim
on
Letter from Yusuf al Qaradawi…

Aiman Achim
on
Letter from Yusuf al Qaradawi…
Top Clicks
islamonline.net/servlet/S…

zulkiflihasan.files.wordp…

zulkiflihasan.files.wordp…

zulkiflihasan.files.wordp…

zulkiflihasan.files.wordp…
Top Posts
Guru Sebagai Murabbi, Mudarris, Mualim, Muaddib Dan Mursyid “Selamat Hari Guru”

MEMAHAMI KONSEP “SUMPAH” DALAM ISLAM

Tajdid and Mujaddid

Top 100 Companies of the Muslim World: 2010 DS100 Ranking

MEMAHAMI ISU ISLAMOFOBIA: ANTARA PERSEPSI DAN REALITI
Archives
February 2018

June 2017

February 2017

January 2017

December 2016

October 2016

September 2016

July 2016

June 2016

April 2016

February 2016

January 2016

December 2015

November 2015

October 2015

September 2015

August 2015

July 2015

June 2015

May 2015

April 2015

February 2015

January 2015

December 2014

November 2014

October 2014

September 2014

August 2014

July 2014

June 2014

May 2014

April 2014

March 2014

February 2014

January 2014

December 2013

November 2013

October 2013

September 2013

August 2013

July 2013

June 2013

May 2013

April 2013

March 2013

February 2013

January 2013

December 2012

November 2012

October 2012

September 2012

August 2012

July 2012

June 2012

May 2012

April 2012

March 2012

February 2012

January 2012

December 2011

November 2011

October 2011

September 2011

August 2011

July 2011

June 2011

May 2011

April 2011

March 2011

February 2011

January 2011

December 2010

November 2010

October 2010

September 2010

August 2010

July 2010

June 2010

May 2010

April 2010

March 2010

February 2010

January 2010

December 2009

November 2009

October 2009

September 2009

August 2009

July 2009

June 2009

May 2009

April 2009

March 2009

February 2009

January 2009

December 2008

November 2008

October 2008

September 2008

August 2008

July 2008

June 2008
Categories
Islamic finance news
Muslims News
My Publication
My recent publication
My Story
My Thought
News
Palestine
Poem
Create a free website or blog at WordPress.com.
Cookie Policy
Follow

Following

BLOG OF KNOWLEDGE (Shari'ah, Law, Islamic Finance and Muslim News)

Join 235 other followers

												Sign me up

Already have a WordPress.com account?
Log in now.
BLOG OF KNOWLEDGE (Shari'ah, Law, Islamic Finance and Muslim News)

Customize

Follow

Following

Sign up

Log in

Report this content

View site in Reader

Manage subscriptions

Collapse this bar


A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

1

A MUSLIM RESPONSE
TO THE ATTACK ON
AMERICA

IMRAN N. HOSEIN

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

2

“Be not weary and faint-hearted, crying for peace, when you should be uppermost: for

Allah is with you, and will never allow your effort to be in vain.”
(Qur’an: Muhammad: - 47:35)

“He who forsakes his home in the cause of Allah, finds in the earth many a refuge,
wide and spacious: should he die as a refugee from home for Allah and His

Messenger, his reward becomes due and sure with Allah: and Allah is Oft-Forgiving,
Most Merciful.”

(Qur’an: An-Nisa: -4:100)

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

3

PREFACE

I have followed with indescribable pain the cowardly American terrorist attacks on

those Muslims of Afghanistan who took a stand for Islam and who were entirely

innocent of the September 11th terrorist attack on America.  America has consistently

followed the same policy of ruthless merciless oppression from the time of the

extermination of the indigenous American-Indian peoples and the enslavement of the

African people in the Americas to the absolutely shameless support for the relentless

oppression of the State of Israel in the Holy Land.  Only those who are completely

blind and totally corrupted in respect of their capacity for understanding can fail to

see the above.

 It was cowardly because the godless enemy is too terrified to ever fight a Muslim on

a level battleground.  That enemy fights his cowardly battles from the safety of

fighter aircrafts, helicopter gun ships, massive bombs, guided missiles, etc., far up in

the sky. But Allah Most High will surely bring us that day, Insha Allah, when we will

be able to face the enemy on the ground on a level battleground.  Amin!   Until that

day comes we must continue our struggle to defend ourselves and to resist oppression

while showing utmost patience and while holding on to faith. The struggle must

continue regardless of the price we have to pay.

The Taliban were in a situation comparable to the 12 year old Palestinian Muslim boy

who confronts US-made Israeli tanks with a stone in his hand.  It is he who today has

inherited the sacred legacy of Prophet David (s).  Neither were the Taliban defeated

by America, nor by the Northern ‘Yankee’ Alliance with which Iran is still

comfortable. And the young boys who fight with stones in the Holy Land can never

be defeated. Rather, the Taliban withdrew their forces in such a way as would allow

them safety from cowardly fighter aircraft and missiles.  And so these soldiers of

Allah live to fight ‘another’ day in the struggle to respond to oppression in the Holy

Land.  We salute them!

Muslims have absolutely no interest whatsoever in waging any war with America or

with any other country in today’s dominant western civilization.  The only war we

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

4

have to wage is the one that will eventually liberate the Holy Land.  Indeed that war

will never end until the prophesy of Prophet Muhammad (s) is fulfilled which will

witness a Muslim army emerging out of Khorasan and marching triumphantly to

Jerusalem!  All those who read this book, and who are Muslims, should have the

desire in their hearts to be a part of that army.

This book salutes the memory of every Muslim who died in Afghanistan in

consequence of cowardly British, American and Israeli terrorism.  The blood and

tears of our valiant sons who were killed in Afghanistan, and who will now be killed

elsewhere, or who will be imprisoned in the prisons of the dominant godless world

order, will not be in vain.  Rather it will fertilize the resolve and matchless spirit of

millions and millions of Muslims (particularly Muslim youth) elsewhere who will

now respond to this awesome shameless naked oppression by committing themselves

and their sons and grandsons to that armed Islamic struggle that will eventually

liberate the Holy Land.  This ‘dark night’ will hardly last another fifty years before

the sunshine surely returns, Insha Allah, and Truth triumphs for the last time over

falsehood.  At that time Islam would rule the world from Jerusalem.  My latest book,

‘Jerusalem in the Qur’an’, which is soon to be printed, was written to inspire such

Muslim youth.  I pray that Allah Most High will send those who will translate that

book into every language spoken by Muslims so that it may reach all such Muslim

youth.  Amin!

The terrorist attack on America constituted a turning point in history as significant as

that moment in the summer of 1914 when another terrorist attack launched the First

World War.  I believe that those who are hell-bent on eventually ruling the whole

world are responsible for both terrorist attacks, and that the Israeli Mossad and its

allies acted on their behalf in planning and executing the attack of September 11th.

The terrorist attack and the ensuing so-called war on ‘terrorism’ that it provoked, was

designed to make the world a safer place for the Jews and for the State of Israel.  The

true terrorists who attacked America on that day know who they are, and Allah Most

High also Knows who they are.  We pray to Allah Most High to expose them, and to

punish them.  Amin!

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

5

The ruling British/American/Jewish world order is now more openly at war with

Islam than ever before.  This is because they are approaching the climax of their

more-than-a-thousand-year war.   ‘Jerusalem in the Qur’an’ makes an attempt to

explain this war against Islam, and to anticipate what lies ahead for that world order,

for Muslims, and for the State of Israel.

The most dangerous and obnoxious of all creatures on the face of the earth today, or

the most evil people beneath the sky, are those scholars of Islam or Muslim leaders

who were totally deceived by the September 11th act of terrorism and who responded

to it by blaming Arabs and Muslims for the attack and by extending patriotic support

to Britain/USA/Israel in their war against Islamic Afghanistan.  Usama bin Ladin and

the Taliban regime in Afghanistan were completely innocent of that September 11th

attack.  The war against them on this account is manifestly unjust.  Such misguided

Islamic scholars and leaders ought to be universally condemned.

I responded to the September 11th attack days later by praying to Allah Most High in

an Islamic Center in Queens, New York, to punish those responsible for the attack

with the greatest possible punishment, and with a punishment that would continue

until the Last Day.  All those who were present in the Masjid joined me in the prayer.

Having done that I now invite the Jews to make a similar prayer.

Imran N. Hosein

Kuala Lumpur,

Malaysia.

December 2001

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

6

WHO HAS BENEFITTED FROM THE ATTACK

ON AMERICA?

It is unlikely that a European Jew in Britain, or USA, or in the Holy Land, would

want to read this little book. After all he has more important things to do – like

pursuing a relentless effort that will culminate in him ruling the world from

Jerusalem. In order to achieve this goal he will have to enslave all of mankind (i.e.,

gentile humanity) in grinding political and economic oppression. He pursues this goal

‘by hook or by crook’ since he does not consider non-Jews (i.e., gentiles) to be a

people entitled to the same standard of justice and morality to which Jews are entitled

(when they interact with fellow Jews).  The Qur’an refers to this Jewish ethical

double standard, and contempt for those who are not Jews, in the following passage:

 “Among the People of the Book (i.e., Jews) are some who, if entrusted with a hoard

of gold, will (readily) pay it back; others, who, if entrusted with a single silver coin,

will not repay it unless you constantly stood (over them demanding the return of your

money).  (This is because) they say: There is no call on us (to keep faith) with these

gentiles. But they tell a lie against Allah, and (well) they know it.”

(Qur’an, ale ‘Imran, 3:75)

We quote the Qur’an because Allah Most High has Himself asked that we wage a

mighty struggle against the disbelievers while using the Qur’an:

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

7

“Therefore pay no heed to the disbelievers, but, rather, (use the Qur’an to) wage a

mighty struggle against them.”

(Qur’an, al-Furqan, 25:52)

The European Jew has already almost achieved the goal of political and economic

enslavement of mankind.  When he does finally achieve it, and there is nothing that

suggests that he would not achieve it, it would appear to him to validate his Jewish

claim to truth. It is, of course, another matter altogether that ‘terrorism’, oppression,

and deceit are totally incompatible with the true morality that forms the foundation of

the religion of Abraham (s).  But the spiritual blindness of the Jew who first rejected

the true Messiah, and then Prophet Muhammad (s), has made him incapable of

recognizing this elementary truth.  In consequence of that ‘internal’, ‘spiritual’

blindness the Jew is being led into the hell- fire.  The Qur’an confirms the link

between the two:

“We have surely condemned to the Hellfire huge numbers of human beings as well as

Jinn. (Why so?)  They have hearts but they cannot understand (since their hearts are

dead). (Similarly) they have eyes but they cannot see (because they are internally

blind), and ears but they cannot hear (because they are internally deaf). Such people

are like cattle.  Rather, they are more misguided: for they are the ones who are truly

heedless (of the Signs of Allah, Most High).”

(Qur’an, al-‘Araf, 7:179)

The Jew would be surprised to learn that those who study the Qur’an and the

teachings of Prophet Muhammad (s), are aware not only of his plans and his goals but

also of the awesome deception that he employs in his relentless efforts to achieve

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

8

those goals.  The reality is that while the present may be quite bleak for Muslims, the

future belongs to Islam and, as the saying goes: ‘He who laughs last, laughs best’!

Therein lies the difference between appearance and reality.

It has not escaped the attention of Muslims that the only beneficiary of the September

11th attack on America was the Jewish State of Israel.  This book is certainly not

‘jumping to a conclusion’ when it recognizes the Israeli Mossad and other allied

Jewish groups (such as Jews working in the US government) as the prime suspect

responsible for planning and executing that attack.  Rather, the book arrives at that

conclusion on the basis of a dispassionate examination of the benefits that Israel, and

only Israel, has derived from the attack.  What are those benefits?

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

9

FIRST BENEFIT TO ISRAEL:  PUBLIC RELATIONS

BONANZA

Firstly, Ariel Sharon’s coldly calculated and manifestly provocative visit to al-Aqsa

Masjid in Jerusalem in September 2000 deliberately provoked another gruesome and

bloody chapter of Israeli oppression in the Holy Land and another chapter of defiant

Arab Muslim resistance to that oppression. After Sharon’s visit and until the

September 11th attack on America one year later, the world witnessed a constant

Israeli effort to escalate the flames of war while deceptively adopting the pose of the

aggrieved party.  The world recognized Israeli oppression and this resulted in a public

relations disaster for Israel when the whole world (except CNN and its sisters) united

in condemnation of Israel at the Durban World Conference on Racism held in South

Africa in August/September 2001.

The September 11th attack on America resulted, however, in such a complete and

instantaneous reversal of Israel’s public relations disaster that Arabs and Muslims

suddenly found themselves confronted with their own public relations disaster far

worse than Israel’s. Television really came of age on September 11th when television

stations around the world shamelessly joined American TV in a media Crusade that

used War on Terrorism as a euphemism for War on Islam. The fact that Arabs and

Muslims were innocent of the September 11th attack on America merely added salt to

their wounds.

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

10

SECOND BENEFIT TO ISRAEL :  PAVING THE WAY

FOR THE GREAT WAR THAT WOULD VALIDATE

ISRAELI TRUTH

Secondly, the reversal of the public relations disaster also allowed Israel, now ‘off the

hook’, to merrily continue pursuing its policy of deliberate provocation and constant

escalation of the bloody conflict against Arabs and Muslims without any significant

impediment, not even from the US Government.  That was no mean achievement.

Israel’s long-term strategy, in its war against Islam, the Qur’an, and the Arabian

Prophet who was the last of the Prophets (i.e., Muhammad – peace be upon him), is to

deliver a spectacular demonstration of what would appear to validate the ‘truth’ of

the Torah (and Bible) and, hence, ‘falsehood’ of the Qur’an.  Such a demonstration

would not only demoralize many ignorant Muslims but would also convince Jews that

they still remain the ‘chosen people’.  They would be convinced that the return of the

‘golden age’ of Judaism when the Messiah would rule the world from the throne of

David (s) is about to be realized.  In fact this book explains that subject. Such a

‘validation’ of ‘Torah’ truth would be achieved through a sudden and dazzling Israeli

war that would target the entire region around the Holy Land.  This was the reason for

Sharon’s coldly calculated act of provocation.  That war, which is about to take place

even as we write this book, would result in such an expansion of the territory of the

Jewish State as would fulfill the declaration of the Torah (and Bible) that the

boundaries of the Holy Land (hence Israel) stretch from “the river of Egypt (the

Nile?) to the river Euphrates (in Iraq)”.

It is now clear that the purpose of the Gulf war of 1991 was to so cripple Iraq as

would permit Israel to swallow it effortlessly some ten years later.  That goal has

clearly been achieved.  Iraq is ready for the plucking.  It is also clear that the purpose

of what certainly appears to have been a Mossad attack on America on September

11th was to provoke USA into such a war, ‘helter-skelter’, against so many States in

the region as would facilitate Israel’s big war of expansion.  The US war was also

supposed to provide Israel with the opportunity to neutralize Pakistan’s nuclear

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

11

weapons capacity and Iran’s missile capacity, the marriage of which still constitutes

the only significant remaining obstacle that prevents Israel from launching its

spectacular war of territorial expansion.

That goal has not as yet been achieved because the ‘highjacked’ aircraft that was

supposed to crash into Air Force One (or the White House), to kill the US President,

and to force USA into that major war, crashed instead in Pennsylvania.  The Mossad

and its allies had not calculated for some passengers on that fourth aircraft receiving

calls on their cellular phones.  Those calls may have caused electronic interference

with the aircraft operating systems (regardless of whether those systems were remote

controlled or auto controlled or manual), and may have caused the crash.  It is also

possible that passengers attacked the ‘highjackers’ and that the crash was caused by

the ensuing struggle. And so the US war now has to be pursued incrementally.

Israel can still profit, however, from the brilliant transfer of power that was first

achieved in Pakistan, a transfer that replaced a civilian regime with a military one.

Only a military regime (and certainly not a civilian regime) could have taken the

decision to support USA in its war on Islamic Afghanistan.  It was therefore

necessary to first put a military government in place in Pakistan before the attack on

America on September 11th could take place.  The Pakistan military that seized power

from Prime Minister Nawaaz Shareef in circumstances appearing to be conspiratorial,

had no alternative but to bow to the American demand for support in the war on

Afghanistan’s Taliban government.  A refusal of that American demand would have

cost the Pakistan military the cover that they needed in order to keep up the pretence

that there was no conspiracy involved in their assumption of power. Once the

Pakistan Government consented to support USA in its war against Afghanistan’s

Taliban government the trap was set.  Saddam Hussain walked into such a trap 10

years ago.  The Pakistan military walked into a similar trap 10 years later.

This book anticipates that the US/UK-led alliance will wage a protracted war in

Afghanistan and elsewhere for the express purpose, among other things, of provoking

a civil war in Pakistan.  If and when elements in the Pakistan armed forces eventually

revolt and join popular forces opposed to the Government’s policy of support for

USA, and civil war breaks out in Pakistan, such would be the cue for USA to lead its

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

12

international coalition in an attack on Pakistan’s nuclear plants where the nuclear

weapons are produced.  If this opportunity does not present itself they probably have

a number of alternatives through which to achieve this objective. In fact, USA and its

allies may very well go on to transform Pakistan into another Turkey or Iraq, or to

preside over the (further) break-up of Pakistan.  Israel and India may or may not have

to participate directly in that attack on Pakistan’s nuclear plant, but Israel and India

will surely be involved in the strategic planning of the attack.  As soon as Pakistan’s

nuclear power is destroyed Israel will launch her big war of territorial expansion and

India will be free to dismantle the State of Pakistan.

If elementary intelligence were supported by minimal internal intuitive spiritual

insight, (something that is in amazingly short supply in the western civilization which

now rules the world), it would allow one to recognize the Israeli Mossad and its allies

as the prime suspect responsible for the absolutely brilliant planning and execution of

the diabolical attack on America.  Indeed if Usama bin Ladin and his small al-Qaidah

group of fighters could have successfully planned and executed such a stunning attack

that stingingly humiliated the ‘Ruling State’ in the world then ‘a cow could also jump

over the moon’!

Muslims should also pay heed to the stern warning of the Qur’an ‘not to accept at

face value news which comes from a manifestly sinful source lest one unwittingly

harms another and lives to regret it’:

 “ O ye who believe! If a sinful person comes to you with any news, ascertain the

truth, lest ye harm people unwittingly, and afterwards become full of regret for what

ye have done.”

(Qur’an, al-Hujurat, 49:6)

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

13

A modern secular western civilization and its carbon copies around the world who

accuse Usama bin Ladin of responsibility for the attack on America, and provide no

evidence of this to the public, can hardly escape from being recognized as ‘sinful’. On

the other hand Usama bin Ladin, who worships the true God of Abraham, has

emphatically denied responsibility for the attack.  Prophet Muhammad (s) has defined

a Muslim as “one from whose tongue and hand other Muslims are safe”.  It is the

duty of all true believers to accept as truth Usama bin Ladin’s denial of responsibility

for the attack until and unless there is clear and valid evidence that demonstrates that

he is not speaking the truth.  Praise be to Allah that Muslims (other than some one-

eyed Islamic scholars) have overwhelmingly rejected the fabricated evidence that has

so far surfaced!

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

14

THIRD BENEFIT: PAVING THE WAY FOR ISRAEL TO

BECOME THE ‘RULING STATE’ IN THE WORLD

The careful study of the Qur’an and the Ahadith of Prophet Muhammad (s) which we

have undertaken in our book, ‘Jerusalem in the Qur’an’, makes it clear that the

supreme Israeli goal, which was clearly the major objective of the September 11th

attack on America, was to pave the way for Israel to replace USA as the ‘Ruling

State’ in the world.  The ‘true’ Messiah is supposed to rule the world from the throne

of David (i.e., Israel and Jerusalem).  In order for the ‘false’ Messiah or Anti-Christ

(i.e. Dajjal) to convince the Jews of his credentials (as Messiah) he would thus have

to do the same.  He would thus have to:

i. Liberate the Holy Land of non-Jewish rule,

ii. Bring the Jews back to the Holy Land to reclaim it in the name of

Judaism,

iii. Establish a State of Israel and convince the Jews that it is the Israel

of David (s),

iv. Cause that Israel to become the Ruling State in the world,

v. Appear himself in person in order to rule the world from

Jerusalem.

This book directs attention to the fact that (i- iii) above have already been achieved,

while (iv) is about to be achieved, and (v) may not take long to occur.

In fact the world now stands at a moment in time quite similar to that moment in the

summer of 1914 when another brilliantly planned act of terrorism (the assassination

of the Arch Duke Franz Ferdinand of Austria-Hungary) resulted in a big war which

brought Britain, the ‘Ruling State’ to its knees, and allowed USA to replace Britain as

the new ‘Ruling State’ in the world.  That war also delivered to the Jews the Balfour

Declaration and, with it, the return of the Jews to the Holy Land and the

establishment of the State of Israel. Western secular civilization was so spiritually

blind at that time that it could not see that it was ‘led by the nose’ into a First World

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

15

War that killed millions of Europeans. Tha t civilization, which could not recognize

those who were responsible for the act of terrorism in 1914, is today similarly

incapable of recognizing that the same people are responsible for the September 11th

attack on America!

Clearly USA, the ‘Ruling State’, cannot be brought to its knees other than through a

collapse of the US economy and the US dollar. That is precisely what could have

occurred had President Bush been assassinated. The continuing threats to USA, even

as we write, and after the whole world has ganged-up against Islam, the Qur’an, and

Prophet Muhammad (s), and even after the US war on Usama and his men, indicates

that the Jewish effort to bring about the collapse of the US economy and the US

dollar is still being actively pursued.

Henry Ford, the famous American industrialist who manufactured Ford motorcars

warned America of this danger as early as 1919-20. After the First World War, he

realized the havoc being wrought by Jewish international financiers.  He

commissioned the most intelligent researchers to make a thorough study of the

international Jew and published their findings in 1919-20 in the ‘Dearborn

Independent’, the official organ of the Ford Motor Company. It was later published as

a book entitled, ‘The International Jew’.  It has recently been reprinted in Malaysia

and is widely available at local bookstores.

The American economy has not as yet collapsed but the writing is on the wall that it

is under attack by enemies who are embedded within the system itself.  If and when

the US economy does collapse, and if and when Israel also succeeds in establishing

its military dominance and control over the whole region and in dramatically

expanding the territory of the State in defiance of the whole world, Israel would then

succeed USA as the ‘Ruling State’ in the world. When that happens the world would

be greatly surprised, but the true followers of the Arabian Prophet (s) would not be

surprised at all!

It is Islam that describes the destiny that would then await Jerusalem, a destiny that

would eventually witness Islam re-emerging as the ‘Ruling State’ in the world.  That

moment of triumph for Islam would come when a Muslim army emerges from

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

16

Khorasan and, in the process of destroying the State of Israel, liberates the Holy

Land:

“Abu Hurairah reported that the Prophet (s) said: Black banners shall emerge from

Khorasan (i.e. area which now includes Afghanistan, NW Pakistan, NE Iran, Central

Asia north of Afghanistan etc.), and no force will be able to stop them until they are

inserted in Aelia (Jerusalem).”

(Sunan Tirmidhi)

This hadith of the blessed Prophet makes it abundantly clear that Jerusalem will be

liberated through an armed Islamic struggle.  Indeed the Prophet (s) went on to order

Muslims to join that army “even if they have to crawl over ice” (i.e., even if they

have to defy the godless governments and their world government in the UN which

today control the world and which are hell-bent on obstructing Muslims from obeying

such commands of the Prophet (s)).

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

17

THE MUSLIM RESPONSE TO THE ATTACK ON

ISLAM

The ultimate Muslim response to the ‘attack on America’, an attack which has been

cynically exploited to savagely attack Islam and Muslims while hiding behind the

curtain of ‘terrorism’, is to rededicate themselves to remain faithful to Allah Most

High and his Messenger regardless of the price they may have to pay for doing so!

They do so when they devote their lives to preparing for that armed struggle through

which the Holy Land will be liberated and Islam will reemerge triumphant in the

world.  This is what the Qur’an has to say about that armed struggle.

It was the second Shaban in Madina when Allah subhanahu wa t’alah sent down the

revelation concerning Qital (fighting). The British Prime Minister, the American

President and the Israeli Prime Minister may have difficulty in digesting the

following verses of the Qur’an. But in the context of the British/American/Israeli

attack on Muslims we must redirect the attention of all Muslims to what Allah Most

High has said concerning fighting.

1. He has made it obligatory. It is Shirk for a government, or for the United

Nations, to outlaw that which Allah has commanded.  It is also Shirk for anyone to

accept as illegal that which Allah has commanded:

“Fighting is prescribed upon you although you dislike it. But it is possible that ye

dislike a thing that has benefit for you, and that you desire a thing (not having to

fight) that is evil for you. And it is Allah (and not the godless Euro-Jews and Euro-

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

18

Christians who now control the world) Who truly knows (what is beneficial and what

is harmful for you) and you know not.”

(Qur’an, al-Baqarah, 2:216)

2.   The Muslim must fight to defend himself when he is attacked:

“Fight in the cause of Allah those who fight you (the godless Euro-Jews and Euro-

Christians who now control the world are doing precisely that), but do not transgress

limits; for Allah loves not transgressors.”

(Qur’an, al-Baqarah, 2:190)

3. Fighting is supposed to result in the establishment of a world free from

oppression and injustice, and such is possible only when Allah's Din (i.e., Islam) is

established on earth:

“And fight them on until there is no more tumult or oppression, and there prevail

justice and faith in Allah; but if they cease (fighting you) let there be no hostility

except to those who practice oppression.”

(Qur’an, al-Baqarah, 2:193)

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

19

4. Allah has made it obligatory for Muslims to fight to liberate those of the

oppressed who are themselves crying out for help and for liberation from

oppression:

“And why should ye not fight in the cause of Allah and of those who, being weak, are

ill-treated (and oppressed)? Men, women, and children, whose cry is: "Our Lord!

Rescue us from this town whose people are oppressors; and raise for us from Thee

one who will protect (us); and raise for us from Thee one who will help (us)!”

(Qur’an, al-Nisa, 4:75)

[There is no town on the face of the earth today in which there is more oppression

than Jerusalem.]

Allah Most High goes on to recall the Jewish reluctance to fight.  He then warns of

the dire consequences of such reluctance:

 “Hast thou not turned thy vision to those who were told to hold back their hands

(from fight) but establish regular prayers and spend in regular Charity? When (at

length) the order for fighting was issued to them, behold! a section of them feared

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

20

men as, or even more than, they should have feared Allah; they said: Our Lord! why

hast Thou ordered us to fight? Wouldst Thou not grant us respite to our (natural)

term, near (enough)? Say: Short is the enjoyment of this world: the Hereafter is the

best for those who do right; never will ye be dealt with unjustly in the very least!”

(Qur’an, al-Nisa, 4:77)

5. A Muslim is not allowed to fight other than under the command of a Muslim

and other than in accordance with Allah’s law as it pertains to fighting.  Those who

fight under any other command or law would be fighting under an evil command:

“Those who believe fight in the cause of Allah, and those who reject Faith fight in the

cause of Evil: so fight ye against the friends of Satan: feeble indeed is the cunning of

Satan.”

(Qur’an, al-Nisa, 4:76)

6. Nor should a Muslim refrain from fighting because of fear of death:

"Wherever ye are, death will find you out, even if ye are in towers built up strong and

high! If some good befalls them, they say:  This is from Allah; but if evil, they say:

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

21

This is from thee (O Prophet)!  Say:  All things are from Allah!  But what hath come

to these people, that they fail to understand a single fact?”

 (Qur’an, al-Nisa, 4:78)

7. The disbelievers are going to fight the believers with terrible rage and fury.  A

respite will come from Allah if the believers rouse themselves to take steps to respond

to the disbelievers:

“Then fight in Allah’s cause, thou art held responsible only for thyself, and rouse the

Believers. It may be that Allah will restrain the fury of the Unbelievers; for Allah is

the strongest in might and in punishment.”

(Qur’an, al-Nisa, 4:84)

8. The best Muslims are those who rouse themselves and fight in Allah’s way.

They are decidedly superior to those who ‘sit at home’:

“Not equal are those Believers who sit (at home) and receive no hurt, and those who

strive and fight in the cause of Allah with their goods and their persons. Allah hath

granted a grade higher to those who strive and fight with their goods and persons

than to those who sit (at home). Unto all (in Faith) hath Allah promised good: but

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

22

those who strive and fight hath He distinguished above those who sit (at home) by a

special reward.”

(Qur’an, al-Nisa, 4:95)

9. There will be some who will offer as an excuse for their non-participation in

fighting the plea that they were helpless in this matter.  For example they would argue

that they lived under governments that did not allow them to fight in Allah’s cause.

But such excuses would not save such Muslims from the hell- fire since they would be

asked: ‘Was Allah’s earth not wide enough that they could have migrated to another

place in which they would have had the freedom to fight?’:

"When angels take the souls of those who die in sin against their souls, they say:  In

what (plight) were ye?  They reply:  Weak and oppressed were we in the earth.  They

say:  Was not the earth of Allah spacious enough for you to move yourselves away

(from evil)?  Such men will find their abode in Hell, what an evil refuge!

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

23

 Except those who are (really) weak and oppressed, men, women, and children who

have no means in their power, nor (a guide-post) to direct their way.

For these, there is hope that Allah will forgive: for Allah doth blot out (sins) and

forgive again and again.

 He who forsakes his home in the cause of Allah, finds in the earth many a refuge,

wide and spacious: should he die as a refugee from home for Allah and His

Messenger, his reward becomes due and sure with Allah: and Allah is Oft-Forgiving,

Most Merciful.”

(Quran: al-Nisa : -4:97-100)

END

A MUSLIM RESPONSE TO THE ATTACK ON AMERICA

24

ABOUT THE AUTHOR

The writer is an Islamic scholar and writer who was born in the Caribbean island of

Trinidad and was based in New York until the September attack on America. He

studied Islam at the Aleemiyah Institute of Islamic Studies, Karachi, Pakistan, under

the guidance of the distinguished Islamic scholar and Sufi Shaykh, Maulana Dr.

Muhammad Fazlur Rahman Ansari (ra). He also studied Philosophy at Karachi

University, and International Relations at the University of the West Indies and at the

Graduate Institute of International Studies, Geneva.  He has emerged as a prolific

writer with many published works to his credit. Among them are his pioneering work

in Comparative Religion entitled: ‘Islam and Buddhism in the Modern World’ which

was written in 1971 when he was 29 years of age.  Since then he has written more

than a dozen books including two books on Riba.  He travels extensively and

continuously while serving the mission of Islam. He has served as a khateeb

delivering Friday sermons at the United Nations headquarters in Manhattan, NY, for

the last ten years.

Website: http://www.onejamaat.com

Email address: ihosein@onejamaat.com


INTERNATIONAL COMMODITIES AND THE (SHARI’AH) GUIDELINES ON

DEALING WITH THEM

Prepared by

Prof. Dr. Hamzah bin Husain Al-Fa’ru Al-Sharif

General-Director of Baitulkhibrah al-‘Alami

29th Al-Baraka Symposium on Islamic Economics

Hilton, Jeddah

6 - 7 Ramadan 1429 AH (According to Ummu al-Qura), corresponding to 6 - 7

September 2008

It is clear that due to great demand from Muslim and non-Muslim countries all

over the world, Islamic finance is growing. Globally, there are around 280 Islamic

banks. Besides that, there are 300 conventional banks that offer Islamic financial

products through independent branches or windows. In March 2008, the total

number of Islamic funds has reached 500 and is expected to be reach 1,000 by

2010. Furthermore, the assets of Islamic banks amounts to USD520 billion. With

growth of between 15 – 20% per annum, the assets and deposits of Islamic

banks are expected to reach USD1 trillion by 2012.

There are many Islamic investment companies which vary in size, from small to

large business entities. Besides that, the Islamic capital market is growing and

this growth is evidenced in the following:

1. The rapid growth of Islamic insurance and reinsurance companies; and

2. Several capital markets have declared that they will adopt the Shari’ah in

their operations.

In light of the abovementioned developments, there is a clear indication of the

significance of the Islamic capital market in general and Islamic banking in

particular. Moreover, we must pursue to improve Islamic banking and to control it

by way of Islamic regulations, in order to:

1. Achieve the objective of Islamic banking;

2. Achieve the hopes of the ummah, which rely on Islamic banking, in terms

of the elimination of riba (usury) and prohibited gains;

3. Remove inconveniences for those who deal with Islamic banks; and

4. Achieve better community development.

Islamic banks and investment Islamic companies seek to achieve two main goals,

as follows:

1. Investing and increasing their assets through legal ways, so as to maintain

these assets and obtain sufficient profits; and

2. Meet the needs of their clients, in terms of finding investment channels

that enable the clients to increase their properties (value and quantity) and

to enable them to fulfill their needs by using methods and financial

instruments that are Shari’ah-compliant.

The thinkers within the Islamic banking industry realize that Islamic banking is

fairly recent, as it has only been in existence for the last 30 years. At the same

time, the Islamic banking industry has faced many difficulties, in terms of

operationalizing the theories of Islamic banking. Nevertheless, by the kindness of

Allah, Islamic banking has been able to uphold itself, so that it is now a truth that

cannot be denied by a fair person.

Yes, Islamic banking has faced and still faces such difficulties, as follows:

1. The idea of an Islamic financial system is quite new (especially if

compared to the conventional financial system);

2. Some are in doubt about the applicability of the implementation of Islamic

banking, and

3. Strong competition from conventional financial institutions.

Actually, conventional institutions enjoy stability, support and are widespread and

entrenched in the global financial system. On the other hand, Islamic banks

suffer from the lack of qualified staff. Furthermore, in many countries, Islamic

banks face legislative obstacles that prevent them from running smoothly and

growing, and gaining acceptance from the society.

However, Islamic banks have demonstrated their ability, in terms of overcoming

many obstacles, attracting many clients, and expanding and securing huge

amounts of assets. Essentially, these Islamic institutions and firms are

investment institutions with the aim to attain profit by means conducting a

business. Furthermore, these institutions do not aim to make money without

taking risks, which is prevalent in usury-based loans or money making methods

that are free from religious tenets. There is a need for legitimate controls to deal

with the actions of Islamic financial institutions, either with regard to the related

contracts or services, with the view of adhering to the Islamic rulings on property.

This is an real need, due to the following reasons:

1. Increase in the volume of liquidity in Islamic financial institutions, as a

result of an increase in their assets size;

2. Growth in the size of the market and its transactions; and

3. The lack of Islamic financial instruments.

Yes, it is true that Islamic financial institutions must obtain profits for their clients.

However, in order to do it, they must look for channels that are legal. Moreover,

those profits should benefit the society. However, under the impact of preceding

circumstances, Islamic financial institutions have resorted to using certain

products or instruments, either locally or at the international level, especially with

large investment institutions. One of these instruments is international

commodities, which are used extensively and is also the subject of this paper.

But before we go further; we should define the topic, so that we are clear about

alsela’ aldwoliyyah or international commodities.

Meaning of commodities (sela’)

Literal meaning

Sela’ is the plural of sela’h, which means commodities. Ibn Faris said, “The three

letters of the word (سلع) mean that something is fissured and opened. According

to Ibn Faris, sela’h (commodity) is something sold because it is not acquired for a

long time, i.e. not kept but traded (Mua’jm Maqaiyyes Alogha). Alfiyroz Abadi said

that sela’h constitute belongings and anything that is tradable. Actually, his

opinion is similar to Ibn Faris‟. The second word, aldwoliyyah, means

international.

Technical meaning

Sela’ are strategic commodities, such as minerals, grains, nourishments and

petroleum. These commodities are sold and traded wholesale in commodity

bourses. There are around 60 bourses that deal with 100 categorized

commodities. Some bourses deal with specific commodities1, while others deal

with only one type of commodity. Examples of such bourses are:

1. Bourse of Chicago for Grains (USA) - This is the first bourse in the world.

It was established in 1848;

2. Bourse Euronext (Paris) – This bourse specializes in foodstuff-related

commodities; and

3. Bourse of London for Minerals – This is the biggest bourse in the world.

Recently, Dubai established a commodities bourse that is located within the

Dubai International Financial Center (DIFC). The bourse is the first bourse that

deals with futures energy contracts in the Middle East. Apart from enabling

1
 Go back to (International Commodities and the Guidelines on Dealing with them) by Mohammed Abdl

Halim Umer. Research was submitted to the sixteenth session of International Fiqh Academy, which

assembled in Dubai from 30 Safer – 5 Rabie’ awal 1426 H.

traders to trade commodities, the said bourse also aims to fill the gap that exists

among the bourses of America and Europe.2

Importance of international commodities

International commodities trading are considered the main pillar of international

trading, as many contracts are concerned with such trading. These contracts

have become necessary for the execution of international commodities trading,

like contracts of insurance, transportation, agency, etc. International commodities

trading can play a positive role in improving the commodities trading sector. The

important aspects of international commodities trading are:

1. Knowing the trend of the commodity price for an adequate period of time;

2. Matching between the buyers and sellers, which helps to develop the

commercial exchanges;

3. Reducing the risks of sudden crisis and ensuring that one enters the

market at the precise time;

4. Keep enough liquid assets; and

5. Ensuring the existence of acceptable procedures to settle disputes.

Indicators of global interest in the commodities market

The daily trading volume in the commodities market goes beyond USD1.5 trillion.

For such a huge amount, there should be controls to regulate it and to minimize

disputes. On that matter, actually, disputes can happen anywhere, i.e. at the

location where purchases are made or elsewhere. Therefore, since the last

century, early attempts have been made to set up a legal framework for such

transactions, in which two agreements emerged:

2
 Dived Ralteg, the (CEO) of Dubai Center for Commodities and Minerals during an interview with

AlArabiya channel.

First - Agreement of Lahay 1964. It produced a unified law for the sale contracts

of international3 commodities. Several countries signed this agreement.

Second - Agreement of Lahay in the same year and on the same subject. Like

the previous agreement, only a few countries signed the second agreement.

These two agreements are binding for the signatory countries. As such, the laws

as per the agreement will be included in the laws of each country, according to

the constitutional procedures of each country. In addition to that, in Vienna on 11

April 1980, an agreement that supersedes the two earlier agreements was

signed. The agreement was prepared by the United Nations Commission on

International Trade Law (UNCITRAL). However, it only came into effect in 1988.

Many countries signed the agreement, with other countries invited to be parties

to it. In reality, this agreement does not need to be formalized by a decree. It is

self-executing and automatically becomes part of the law of any country4.

Introduction

In the introduction of the agreement, it is stated that the countries that are parties

to this agreement:

3
 International sales are not just characterized by the different nationalities that are parties to it. It may be

that the purchaser and seller are of the same nationality. But the consideration is with regard to different

places or the domiciles of the contracting parties. There are three criteria of international sale: 1. If the

commodity is moveable globally, when or after the contract is concluded. 2. Issuing offer and acceptance

in two different countries, even if those countries are not the contracting parties’ place of business. 3.

Handing over the commodity in a third country. However, it does not mean that the commodities should

be moved from one country to another, because the contracts may be executed in the future. Afterwards,

the contracting parties trade those contracts and settle them at the time of delivery of the commodities.

(International Commercial Contracts, Mahmud Samir Alsharqawi. Special Study for Contract of

International Sales, page 16).

4
 Interpretation of the agreement of the United Nations concerning the contract of international

commodities trading, provision 5,  page 10, 20, 24. Dr. Husam Aldin Alsagir.

1. Should focus on the common goals of the decisions that were made by

the General Assembly of the United Nations in its first session, which

relates to the effort of building a new international economic system;

2. Should emphasize on the development of international commerce that is

based on equality and mutual benefit. This would enhance global relations;

3. Consider adopting unified rules to govern international commodities

trading, which take into account the diversity of social and economic

systems. All of this would contribute towards removing the legal barriers

and support the development of international commerce.

Chapter one of the agreement

Clause 1 established the forms in which the rules of the agreement are to be

applied, as follows:

1. Application of the rules of the agreement on commodities purchase contracts,

among contracting parties that conduct their business in different countries -

a. When these countries are contracting countries; and

b. When rules of special international law is applied to the law of the

contracting country.

2. It does not matter if the business address of the contracting parties is not

mentioned in the contract (before or during the execution of the contract) or

in the preceding transactions among the said parties; and

3. The following is irrelevant in determining the application of this agreement:

Nationality of the contracting parties, their civil status, their commercial status

and the contract itself5.

Apart from this agreement, on 1 January 1995, the World Trade Organization

(WTO) was established. This organization replaced the General Agreement on

Tariffs and Trade (GATT), which was founded in 1947. WTO aims to liberalize

5
 Appendix of agreements of the United Nations relating to the international commodities trading

contracts, Dr. Husam Aldin Alsagir.

international trade by means of establishing an international commercial system

that is based on demand and supply. Furthermore, WTO aims to eliminate

international trade restrictions and obstacles. There are three main agreements

under the WTO, i.e. concerning the trade in commodities (first agreement), trade

in services (second agreement) and trade in intellectual property rights (third

agreement)6.

Sections of the international commodity markets

International commodities must fulfill the criteria that control the attributes of

commodity in the markets.

These markets are divided into:

1. Urgent commodity markets - Markets in which the commodities are shown.

Actually, the commodities have specific characteristics, i.e. the

commodities are in hand or in existence in dedicated warehouses and are

capable of being shipped and transported. This market deals with actual

sold commodities. Usually, this is the main purpose of such markets.

Nevertheless, the conditions of one market might differ from the other, e.g.

the representative of the buyer will obtain the commodity in the presence

of the representative of the seller, according to the attributes defined; and

2. Futures commodity markets - In these markets, contracts are entered into

for commodities that are not yet in the warehouse but have exact

specifications. The contracts are distinct from the contracts in the urgent

markets, such as the contracts are not binding as the contracts in the

urgent markets. Furthermore, it is possible to withdraw from the contracts

through the payment of the difference in the price (as compensation for

the withdrawal).

6
 Wikipedia.

The two types of operations in the commodities markets are shown below:

a. Absolute operations, where the contracting parties are obligated to

execute the contracts at a specific time by (1) delivering the commodity

and receiving the money (2) clearance of two operations and (3) agreeing

to defer the contract to a later date; and

b. Conditional future operations, where one of the contracting parties has the

right to carry out or cancel the contract, according to precise conditions in

the markets. The main types of conditional contracts are:

 Future contract with conditional compensation - This contract entitles a

party to execute the deal or to withdraw from it, in exchange for a

compensation that is determined in advance. Usually, this right is given

to the purchaser;

 Future contracts with the condition of additional commodities: This right

is commonly given to the contracting parties to acquire more

commodities at the maturity date. The contract gives the buyer an

option to add more commodities to the contract. Whatever the case

may be, at the maturity date, the stipulations in the original contract

must be fulfilled. In addition, the contract also gives an option to the

vendor to sell more commodities, but at the same price that is stated in

the contract. Actually, the latter happens when the current price is less

than the contract price;

 Future contracts with conditional selection – This type of contract gives

an option to the parties to conclude the bargain at the time of

liquidation, either in their capacity as vendors or as purchasers. The

traders have the option to buy at highest price or to sell at the lowest

price; and

 Composite future contracts: These contracts are the combination of the

aforementioned contracts. Speculators prefer to resort to this kind of

contract. The most widely used composite future contracts are:

 Contract of urgent purchase in exchange of sale, with the condition

of compensation;

 BAT contract of purchase in exchange of sale, with the condition of

compensation;

 Contract of purchase with the condition of compensation, in

exchange of selling BAT; and

 Contract of purchase with the condition of compensation, in

exchange of selling with the condition of compensation7.

Practice of Islamic banks and companies in the commodities markets

The methods employed by Islamic financial institutions to execute commodities

trading can be segregated into two:

First: Investing some of their properties for the contracts of buying and selling

commodities. Profits are obtained from the differences between the purchase

and the sale price.

Second: Buying commodities from the commodities markets and then reselling

them to clients through the contract of murabahah on deferred installments basis.

For this type of commodities trading, some of the clients are willing to possess

the commodity. Thus, the commodity is delivered to him. On the other hand,

other clients do not want to possess the commodity. They only want to make a

profit from trading it. For the latter, the transaction will be structured along the

lines of a tawarruq contract. By using a certain mechanism, the commodity is

sold and the amount is deposited into the client‟s account. Essentially, the

mechanism is the subject matter of this paper. This mechanism is implemented

in steps, as follows:

1. The bank makes a deal with a broker for the bank (a) to purchase a

determined quantity of a specified commodity that exists in those markets

and (b) the purchase should be done during specific days of the week;

7
Dr. Prof. Mohammed Abdul Gaffar Alsharif. Practice of Islamic Investment Firms in the Global Market,

page 238-245, accessed on www.islamonline.com

http://www.islamonline.com/

2. The bank sells the commodity or part of it to their client on murabahah

bases. An agreed percentage of profit is added to the cost price. Finally,

the client pays the price on deferred installments basis, in accordance to

pre-arranged procedures (this step is theoretical and no actual sale has

happened);

3. The client, who has purchased the commodity/commodities appoints the

bank as an agent to act on his behalf, to sell the commodity/commodities

and collect the proceeds;

4. The bank informs the broker that the commodity has been sold to the

client;

5. The broker (who still has the commodity in his possession) sells the

commodity according to the bank‟s regulations. Once the sale is

concluded, the broker will confirm it (it is worth to note that in this step, the

bank is acting on behalf of the client when the bank asks the broker to sell

the commodity);

6. Once the bank gets the sale confirmation from the broker, the bank

deposits the sale proceeds into the client‟s account (in this step, the actual

sale happens and  it is deemed as reselling);

7. The fee for the broker is determined on the basis of a percentage of the

total sales proceeds. This is because the services he rendered is

considered as paid agency; and

8. At the end of the week, the bank returns the commodities, which have not

been sold to the broker, as per the deal between them. The broker is

obliged to buy back the commodities at the initial price, as per step 1.

Viewpoint of the Sharia’h

The International Islamic Fiqh Academy had discussed the prevailing practices in

the commodities markets during its seventh and sixteenth session. The Academy

judged that four methods are practised in these markets:

First method: The contract of buying and selling, which states that the commodity

will be delivered and the price would be paid immediately and simultaneously.

Furthermore, the seller owns the commodity or its security, which is the evidence

of his ownership of the commodity. This contract is permissible, as it fulfills the

conditions of a valid sale.

Second method: The contract of buying and selling, which states that the

commodity will be delivered and the price would be paid immediately, with the

guarantee of the market authority. This contract is permissible, as it fulfills the

conditions of a sale.

Third method: The contract of buying and selling, which states that (a) delivery of

a described commodity that is not in existence as yet will be made in the future,

(b) payment will be made at the time of delivery and (c) the contract will be

terminated, as soon as the commodity is delivered and payment has been made.

This contract is not permissible, due to the deferment of both delivery and price.

Nevertheless, this contract can be modified to fulfill the conditions of a salam

contract. It must be noted that one of the conditions of salam is that it is not

permissible to sell a commodity that is not owned.

Fourth method: The contract of buying and selling, which states that (a) delivery

of a described commodity that is not in existence as yet will be made in the future,

(b) payment will be made at the time of delivery and (c) the contract is silent on

the termination of the contract once delivery and payment is made. Instead, the

contract can be terminated by a counter contract. This contract is void.

If we scrutinize the judgement of the Academy on the above methods, we would

observe that in respect of the first method, the Academy permitted the contract.

Actually, this contract concerns the present transactions, where the seller has the

actual commodity or its securities. Moreover, the contract must fulfill the

conditions of a valid sale contract.

Furthermore, the Academy validated the second method, whereby the contract of

buying and selling is implied by the delivery of the commodity and payment made,

with the guarantee of the market authority. In fact, the second method is deemed

as a kind of spot sale. This type of sale is connected with the first method. As

regards to the third method, the Academy forbade it because the contract

stipulates the delivery of a described commodity in the future and payment would

be made at the time of delivery. Actually, the contract includes the deferment of

both the delivery and the price. This contract can be corrected if it fulfills the

conditions of salam that is payment is made in advance and the delivery of the

commodity is deferred.

In respect of the fourth method, it is similar to the third contract, in terms of the

deferment of delivery and payment, and the non-existence of a genuine sale.

This method is involves the trading of contracts and it does not look like salam

because there is no real ownership.

Despite of the clarity and importance of the Academy‟s judgements, the

Academy did not address some significant issues which were known to them at

that time. One of those things is conditional deferred contract8. One of the more

important contracts is contract with the condition of compensation. This condition

gives a right for the contracting parties to not execute the transaction at the

maturity date or cancel the contract. The second one is deferred contract with the

condition of additions, i.e. for the purchaser or seller to increase the quantity that

has been agreed upon. The third one is deferred contract with the condition of

selection for the buyer or seller at the time of liquidation.

These contracts are exploiting ignorance and ambiguity (gharar)9, and what is

construed as deferment of delivery. In fact, these contracts are unjust and eat the

property of the people. Furthermore, the contracts have excessive and massive

gharar that is enough to render such contracts as null and void. Moreover, gharar

leads to dispute and dissatisfaction, and may later lead to the oppressive

expropriation of the property of the people. The latter is prohibited in the Shari’ah,

as mentioned in the Qur‟an: “O you who believe! Eat not up your property among

yourselves unjustly.” (An-Nisa, verse 29) and the Prophet s.a.w. said, “No one

can take his Muslim brother‟s property, unless he agrees)10.

In addition, there is a fourth type of complex deferred contracts that have many

forms, some of which have been mentioned earlier. All those contracts are invalid

because they contain two contracts in one contract. The Academy was also silent

with regard to the use of derivatives in the deferred sale of commodities.

The Academy also mentioned the legality of options (capital market), as laid

down during its seventh session, decision 63 (1/7):

The contracts of options are prohibited because the subject matter of the

contracts are not property or certain benefits. Furthermore, in options, if one

loses his financial rights, he will not get compensation for it. Hence, these

contracts are not permissible. Furthermore, the party who has the right of option

will tend to inflate his benefit, which leads to harm for the other party. Moreover,

most of these contracts do not fully fulfill the conditions of a valid sale and

contain the sale of debt to others who have nothing to do with the debt.

9
 It is proven that gharar is prohibited, as per the authentic tradition, which was narrated by Imam

Ahmad, Muslim and Tirmizi.

10
 Imam Ahmad Musnad, Vol. 5, page 72.

The decisions of the Academy have not been applied to the widely used

contracts of international commodities trading, i.e. the type which all Islamic

financial institutions use; it is called murabahah of international commodities.

The decisions and judgements of the Academy do not apply to this type of

transaction. Therefore, the decisions and judgements are relevant for the first

and second method, which concern the spot cash sale of the actual commodities.

Indeed, murabahah of international commodities are actually pre-arranged

between three parties, namely the buyer, the bank and the seller. Being pre-

arranged makes the contract a contract of tripartite ‘inah, which is not acceptable

to some scholars. In this type of transaction, the buyer does not intend to

possess the commodity, but to obtain liquidity that is going to be repaid at a

premium and on installments. Most of the time, the commodity reverts to the first

seller. Usually, the contracting parties conclude a contract for commodities that

are not moveable. Nevertheless, the aim of such contracts is to finance the buyer

and the role of the bank is to pay the price and obtain the profit on the price

which it has paid11.

Ibn Rushd in his book, Albayan wa Altahsil, in the chapter on salam, mentioned

that: someone asked Imam Malik about a person who sells a commodity to

another person on deferred basis. After the seller hands over the commodity to

the buyer, the buyer immediately sells the commodity to a third party, which is

present at the same meeting place. Then, the third party in turn sells the

commodity to the first seller. All of this takes place at one meeting place. Imam

Malik said this method of transacting is not good and he considered the third

party as a person that is used to legalize the sale between the first and the

second party.

11

 The rule of Tawarruq Munazum. Research submitted to the Academy of World Muslim League in its

nineteenth session. Dr. Abdul Allah Alsaedi.

What is the solution?

Islamic banks were and continue to be established for a noble purpose. Islamic

banks are the greatest achievement of contemporary Muslims. The success of

Islamic banks attracted the non-Muslims, as well as encouraging Muslims to

continue with this type of banking. The success enjoyed is the result of diligence

and hard work, and not mere ambitions.

It is feared that the Islamic banks follow the current practices (some of which are

not Shari’ah-compliant) to earn easy profits. In this regard, Islamic banks realize

that they are facing competition from conventional banks and that there are

prohibitions that must be avoided. If they slip into those prohibitions, they will lose

their credibility and the „element‟ that entitles them the gratification of Allah and

their clients. So, Islamic banks should adhere to the Shari’ah at all times. This,

however, that does not mean that Islamic banks have not been offering Islamic

financial products and practising Islamic finance. However, more efforts are

needed.

The rate of growth of Islamic banking and the variety of Islamic financial

institutions are increasing. Therefore, some efforts have been exerted to control

and develop the performance of Islamic banking. But those efforts are not

enough. As a consequence, some academic institutions and industry

personalities have been asked to find legitimate alternatives for the practices of

conventional banks, in order to enable Islamic financial institutions to achieve two

goals:

1. Investing funds according to Shari’ah principles; and

2. Develop the community.

In its eighth session, held in Brunei Darussalam from 1 - 7 Muharam 1414, the

International Islamic Fiqh Academy issued some resolutions with respect to the

problems confronting Islamic banks. The Academy stated in its fifth provision

from decision 76 (7/8) that a commercial commodity market for Muslim countries

should be established and be the alternative for the international commodity

market, which is full of violations of the Shari’ah. Provision six states that liquidity

surplus should be used to serve the development goals of the Islamic world, by

cooperating among Islamic banks to support shared funds and projects.

In its nineteenth session, held in Makkah from 22 to 27 Shawal 1428, the Fiqh

Academy of the Muslim World League urged Islamic financial institutions to avoid

usury in all its forms. Moreover, the Academy insists on the role of fiqh

academies and scientific organizations to guide the Islamic banks to achieve the

objectives of Islamic economics.

At the same time, it is fair for Islamic financial institutions to say that they face

many obstacles that may hinder their progress, such as lack of support from the

legislative and supervisory bodies, the non-existence of an Islamic capital market

and lack of cooperation among Islamic financial institutions12.

Apart from that, there two obstacles that are more serious, i.e. lack of external

legal supervision and insufficient financial instruments. These obstacles led to

the adoption of conventional products and practices by the Islamic financial

institutions and consequently, Islamic financial institutions became influenced by

conventional institutions.

We suggest a unique solution for those obstacles; nowadays, developed

countries spend 3% of their GDP on scientific research. This helps to propel their

development to greater heights. On the other hand, Islamic financial institutions

seem to care less about science-based research and development.

12

 Islamic Banks: Between Theory and Practice. Dr. Abdul Razzaq Alhiti, page 663-695.

In relation to this, it is a given that financial products are the backbone of Islamic

finance. However, these products cannot be developed without the proper

support. Thus, if the Islamic financial institutions allocate not more than 5% of

their profit to establish specialist organizations to improve the Islamic financial

industry, then that will certainly result in a quantum leap in the development of

the industry.

Islamic financial institutions are also requested to do their best in moving from

the advisory system (ifta’i) to the institutional system. This is because the

institutional system improves the performance and contributes to create new

leaders who are qualified to enhance the performance of Islamic financial

institutions. This is the right time for the concerned authorities to make a decision

that allows external legal authorities to supervise Islamic banks. Conversely, the

Islamic banks could initiate this step to affirm their credibility.

As a result, the confidence of clients will increase and everyone will be assured

that Islamic banks are on the right track. Additionally, Islamic banks should also

seek real investments to attain profit and develop the community. The real

investments should be made in Islamic countries, by using money, in small and

big schemes, with the aim of earning a massive return. Moreover, these

investments should create prosperity and progress for all Muslim communities. In

this regard, there are many useful schemes that are needed by Muslims at the

country level, as well as at the institutional and individual level. Therefore,

financing large schemes in those countries via suitable mechanisms for sharing

(musharakah), istisna’ and sukuk would prove to be productive and profitable.

Investing in companies in the industrial, agricultural, commercial and real estate

sector gives the opportunity to Islamic financial institutions to earn good revenues

and support those companies. Those companies in turn help to improve the

development of the economy and overall prosperity. In connection to this,

investments in the agricultural and poultry sector can be done through the

contract of salam and musharakah. There have been some success stories, such

as the ones experienced by Faisal Islamic Bank and Jordan Islamic Bank.

However, because of lack of government support and lack of cooperation among

Islamic financial institutions, the success attained by the said banks was not able

to favourably affect the market.

So, the potential is enormous. There are many areas that can be developed and

invested in, provided that there are specialist organizations to study such

opportunities using accurate scientific researches. Investing in this area and

scientific research will, without a doubt, fill the needs and contribute to the

capability of Muslims at the international markets; markets which do not care

about Muslims or the suitability of their practices from the Islamic point of view.

We sincerely hope that one day, we will see a high level of revival among the

Muslims. Until that day, I hereby provide some recommendations to control and

to correct the transactions of international commodities:

Firstly, the transactions should be in compliance with the decisions of fiqh

organizations and academies. One of the most important decisions is with

respect to spot sale. The best effort must be undertaken to adhere to the

conditions of a valid sale and making sure that the commodity is moveable and

can be owned.

Secondly, Islamic financial institutions should not engage in futures contracts

because those contracts are not Shari’ah-compliant.

Thirdly, Islamic financial institutions should try to use contracts that are legally

acceptable and not mere form, which is a prevalent element in the international

commodities contracts. The following must be observed:

a. The bank must possess the commodity before the actual sale takes place;

and

b. The first buyer should not be an agent (wakil). If he is one, then that

constitutes a trick to give the commodity back to him. The sale is then

considered as „inah.

Fourth, the Shari‟ah advisory councils of Islamic financial institutions should:

a. Audit the international commodities contracts of their principal institutions;

b. Set an appropriate framework to conclude such contracts; and

c. Recommend that their institutions reduce these contracts in their

investment portfolio.

Fifth, avoid non-compliant international commodities transactions by drawing up

conditions and specifications that are Shari’ah-compliant. That is not difficult to

do in the international market, provided that there is a pre-agreement among the

contracting parties, on the basis of freedom of contracting.

Sixth, these transactions should be subjected to more supervision and auditing,

and the markets should be visited to ensure that the commodities to be traded

really do exist.

Translated and edited by:

Khalil Mohammed Khalil and Mohammad Ashadi Mohd. Zaini (ashadi@isra.my)

mailto:ashadi@isra.my