Gharar
Gharar (
Definitions, fiqh
According to Sami Al-Suwailem, "researchers in Islamic finance" do not agree on the "precise meaning" of gharar,
The
Similarly, the
The
To the Islamic scholar Al-Qarafi, gharar is "that which has a pleasant appearance and a hated essence".[8]
Among modern scholars of Islam, Mustafa Al-Zarqa has written that "Gharar is the sale of probable items whose existence or characteristics are not certain, due to the risky nature that makes the trade similar to gambling."[6] Sami al-Suwailem, has used Game Theory to try and reach a more exact, measurable definition of Gharar, defining it as "a zero-sum game with unequal payoffs".[9]
Scripture
While the word gharar is not specifically mentioned in the Quran, two verses (2:188;[10] 4:29[11]) are thought to refer to it.[7][12]
There are "numerous hadiths" forbidding gharar sales according to the Academy for International Modern Studies. In one, Ahmad and Ibn Majah narrated on the authority of Abu-Said al-Khudriy that:[13]
The Prophet (pbuh) has forbidden the purchase of the unborn animal in the mother's womb, the sale of the milk in the udder without measurement, the purchase of spoils of war prior to their distribution, the purchase of charities prior to their receipt, and the purchase of the catch of a diver.
Varieties
In
- Gharar fahish ("excess" gharar) (also gharar-e-kathir, "too much" gharar)ahadith
- Gharar yasir ("light" gharar) (also gharar qalil, "nominal" gharar) refers to small or trivial amounts of gharar which are tolerated (halal).[5][7]
When not prohibited
Four conditions where gharar is not invalidated are:[14][15][16]
- in the aforementioned gharar yasir;
- where the contract is "unilateral or charitable" (al tabarru'at) so that the other party to the contract is not exploited, such as a gift or bequest;
- where there is a "public need for the transaction or contract" (maslahah, for example in the Islamic finance instruments of bay' al salam and istisna`);
- where risk (ghurm) "inherent in productive economic activities".
While both gharar and riba (Usury) are negative elements in Islamic economics, there is much less material available about gharar in the literature of Islamic economics and finance than there is on riba,[5] and "ghara is considered to be of less significance than Riba." According to Muhammad Ayub, "a consensus" among Islamic scholars has emerged in the recent past "regarding its extent rendering any transaction valid or void". While the slightest involvement of Riba makes a transaction non-Shariah-compliant, some degree of Gharar" is acceptable.[17]
Insurance and Takaful
Orthodox Islamic scholars argue that commercial insurance (as opposed to social or cooperative insurance) contains gharar and is haram (forbidden). In its place takaful or cooperative insurance "built on principles of voluntary contribution and mutual cooperation" has been proposed. [18]
Khatar
Khatar (خطر) is a kind of gharar that occurs when the "liability of any of the parties to a commutative contract is, or becomes, uncertain or contingent on some unforeseen/uncontrollable event", according to the Islamic Investment and Finance website.[19]
See also
References
- ^ "Glossary of Financial Terms". Institute of Islamic Banking and Insurance. Archived from the original on 10 September 2016. Retrieved 29 August 2016.
- ^ "INTRODUCTION TO ISLAMIC FINANCE" (PDF). p. 1.3. Retrieved 30 August 2016.
- ^ Qazi, M.A. (1979). A Concise Dictionary of Islamic Terms. Lahore: Kazi Publications. p. 15.
- ^ Ahmed, Naeem (November 2012). "A Discussion on Gharar in the light of Maqasid Al Shariah". .researchgate.net. Retrieved 30 August 2016.
- ^ ISBN 9780470687710. Retrieved 30 August 2016.
- ^ a b c d e f AL-SUWAILEM, SAMI. "TOWARDS AN OBJECTIVE MEASURE OF GHARAR IN EXCHANGE" (PDF). Islamic Economic Studies. 7 (1, (October 1999), 2, (April 2000)): 61–102. Archived from the original (PDF) on 16 August 2017. Retrieved 1 August 2016.
- ^ a b c d e f Uddin, Md Akther (13 October 2015). "Principles of Islamic Finance: Prohibition of Riba, Gharar and Maysir" (PDF). MPRA. Munich Personal RePEc Archive. p. 4. Retrieved 30 August 2016.
- ^ "Gharar". Islamic Banker. Retrieved 29 August 2016.
- ^ AL-SUWAILEM, SAMI. "TOWARDS AN OBJECTIVE MEASURE OF GHARAR IN EXCHANGE" (PDF). Islamic Economic Studies. 7 (1, (October 1999), 2, (April 2000)): 61–102. Archived from the original (PDF) on 16 August 2017. Retrieved 1 August 2016.
- ^ Quran 2:188
- ^ Quran 4:29
- ^ "Gharar (risk and uncertainty)". Islamic finance. 23 January 2013. Retrieved 30 August 2016.
- ^ "Prohibition of Gharar in Islam" (PDF). AIMS-UK Islamic Banking and Finance. Retrieved 31 August 2016.
- ISBN 9780521864145. Archived from the original(PDF) on 2018-04-03. Retrieved 2017-03-10.
- ISBN 9780521864145. Archived from the original(PDF) on 2018-04-03. Retrieved 2017-03-10.
- ISBN 9780521864145. Archived from the original(PDF) on 2018-04-03. Retrieved 2017-03-10.
- ^ ALI, MOHSIN (20 November 2011). [[url forbidden by wikipedia] http:// islamic financial systems1 .blogspot.com/2013/09/islamic-finance-within-trading.html "ISLAMIC FINANCE WITHIN TRADING FRAMEWORK 4.1.2"]. Islamic Financial Systems. Retrieved 10 March 2017.
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value (help) - ISBN 9780521864145. Archived from the original(PDF) on 2018-04-03. Retrieved 2017-03-10.
- ^ "Islamic Finance. Q&A: What Is the Difference Between Gharar and Khatar?". Investment & Finance. 21 August 2014. Retrieved 30 August 2016.