After 4 months I found a new job and started charging cards, but since that day interest has entered my life and to this day I am not able to eliminate this interest waste. Many years ago, I had read a word of the Prophet (peace and blessings of Allah be upon him), which meant that a sin is great for Muslims, but as soon as it begins to do so, it becomes small. (This is only the meaning and not the translation). After paying interest for many months, this became part of my monthly expenses. This led me to convince myself to take out a personal bank loan to build my house in my country and a car loan, given that I am already in the interest trap. (I was at the lower level of my Eman and far from my Lord.) Later, I received more cards and started spending them without a payment plan. I spent a lot of off-budget time on my wedding (on jewelry and shopping) and brought my wife here to Dubai, which was not possible without these cards. Contrary to the above provisions, Article 76 of the Commercial Code of the United Arab Emirates of 1993 provides that a creditor may fix interest in a commercial loan agreement. If he does not set the interest rate, the market rate does not exceed 12%. Again, there is a presumption in favour of the creditor to claim interest, even if he does not provide for it in the contract. M.O. Farooq defends the fairness of a “fixed” return, and asks whether lenders do not “lease the purchasing power of their capital for the term of the loan and the interest due as a form of rent, much like any landlord, rental agency or other temporary supplier of something of value. M.A.
Khan asks why fixed rent and fixed wages are not equally unfair, although they are not forbidden by orthodox scholars. (While some Islamist thinkers have promoted the idea that “worker-owned companies would express the spirit of Islam better” than conventional ones,[note 39] there is no movement to limit companies to employee participation payments, or even much debate on the subject.)  Farooq notes that in the modern world, banks compete with other lenders and are subject to government regulation. There are predatory loans – from payday lenders and those who lend at high and variable interest rates. These “may be covered by riba and thus Islamically prohibited” but this is hardly the same as the explanation of any riba interest. According to Western understanding, the idea of a bank that doesn`t charge interest is quite shocking – although a bank that doesn`t pay interest probably shocks few people these days! But Islamic banks are still banks, which means they are also trying to make profits for their investors. It`s just done differently. The court stated: The collection of interest is prohibited by Sharia law, but Article 2 of the Constitution does not have retroactive effect and, therefore, Article 226 remained in force and was not affected by the amendment. Article 2 of the Constitution has not directly made Sharia law the general law of the country and does not apply directly. But it imposed an obligation on lawmakers to observe and apply Sharia law in any future legislation. 10 Most Muslims and most “non-Muslim observers of the Islamic world” believe that interest on loans (including bonds, bank deposits, etc.) is prohibited by Islam.  (These loans – or the banks that grant them – are sometimes called ribawi, i.e.
riba carriers.)    This “orthodox” position [note 32] is supported by an “abundant and overwhelming” scientific literature.  Islamic bodies that have declared interest in being riba include the First International Conference on Islamic Economy (1976), the Fiqh Academy of the Organization of Islamic Cooperation (1986), the Research Council of Al-Azhar University (1965), and the Federal Sharia Court of Pakistan in a 1991 decision.  Scholars and authors who have stated that there is a religious consensus (ijma) on this topic include Abul A`la Maududi (1903-79), Yusuf al-Qaradawi, Wahbah al-Zuhayli, Tariq Talib al-Anjari, Thanvir Ahmed, Mabid al-Jarhi, M.N. Siddiqi, Munawar Iqbal, and Imran Ahsan Khan Nyazee.  In the discipline of Islamic economics, the prohibition of interest on loans in the name of the prohibition of Riba has been called “the most important objective” of this field.  Another observer (M.A. Khan) reported a “consensus” among Muslim economists that Islamic financing of business transactions is “not free” but has a different “cost” than interest.  (Charitable, interest-free, and yieldless loans are known in Islam as Qardhul Hasan.) M.A. Khan responds that the damage caused by interest cannot be as serious because interest-based financing is “deeply rooted” in developed OECD countries, where per capita income is quite high and the percentage of poor people is relatively low.  M.O. Farooq notes that countries that have gone in a “meaningless” direction are “hardly examples of greater economic stability.”  Although they require that the interest be used for “religiously meritorious purposes.” First, the Egyptian Civil Code and the Arabic codes, which have been closely modelled on the Egyptian Civil Code, according to which the collection of interest is declared legal by the competent civil code, whether in civil or commercial matters.
One of the pioneers of Islamic banking, Mohammad Najatuallah Siddiqui, proposed a two-tier Mudarabah model as the basis for a riba-free bank. The bank would act as a key partner in the mudarabah accounts with the depositor on one side and the entrepreneur on the other.  (Another pioneer, Taqi Uthmani, called Mudarabah and another form of Musharakah benefit-sharing, the “real and ideal financing instruments of Sharia law.”)  This model would be complemented by a number of fixed-rate models – mark-up (murabaha), leasing (ijara), cash advances for the purchase of agricultural products (salam) and cash advances for asset production (istisna`), etc. In practice, fixed-return models, particularly the Murabaha model, have become industry commodities rather than complements because they are very similar to interest-based financing models. The assets under management under these products far exceed those of “profit-sharing modes” such as Mudarabah and Musharakah.  Islam forbids interest, but at the same time commands legitimate and fair trade and legitimate wealth creation. It does not restrict contractual and commercial freedom as long as they respect the general principles of Sharia. Islamic banking is still in its infancy, and its future depends on its ability to find new ways to trade and invest.20 Yet fewer than one in 10 Americans.