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com
 Editorial
Islamic civilization is not a thing of the past without any link with the present.
Rather, Islamic civilization is the fruit of the culture, history, thought, inven-
tiveness and originality of a people, who have never and will never cease to
offer it as a gift to mankind.

This dynamic role for civilization in our era, is exactly the practical role of civili-
zation that was spelt out by Ibn Khaldoun in the eighth century A.H. In his Mu-
qaddima, we find him making the link, with total clarity, between civilization,
theoretical and applied science, the latter of which we today call technology.
As Ibn Khaldoun expresses it, civilization is "God's secret way for man to gain
knowledge of theoretical and applied science".

Ibn Khaldoun attributes the blossoming of civilization, in those Islamic regions

where it blossomed in the eighth century A.H., to the presence of "a significant
deposit of theoretical and applied science". He gives the example of contem-
porary Egypt, which he describes as "the mother of the world, the sanctuary of
Islam and the spring of theoretical and applied science".

As we all know, Ibn Khaldoun is a powerful mind, acutely perceptive, and sharp
of wit, and the expression which he coins here, "the spring of theoretical and
applied science", is very exact. It is true that civilization is the spring of theo-
retical and applied science, and it is natural for springs to bubble up, gush
forth and spread out. Islamic civilization is continuous, with its roots going
Alberto Di Gennaro back uninterrupted into history, and its message continuing into the future.
Chairman & Publisher Islamic civilization has a distinctive character, springing from the doctrine of
tawhid. It springs from the message of Islam, and draws its special characteris-
tics and unique features from the spirit of this generous religion.

In Islamic civilization is embodied a wisdom which has kept it from extrava-

gance. Islamic civilization does not deify Nature, but respects it and lives in
harmony with it. By contrast, contemporary materialist civilization gives abso-
lute value to the created world, while being unable to read the signs of God in
it, stripping it of any sacredness, and ending up by destroying its balance.

The impetus to rebuild the edifice of Islamic civilization so that it can resume
its historic role and continue its benevolent contribution to mankind, can only
spring from firmly rooted doctrine, a deep conviction of the necessity of intel-
lectual renewal according to true principles, and the necessity of undertaking a
process of self-criticism, so as to be able to see the ways in which we can
guide civilization aright, and to discover what effective actions the present era
demands of us.

There is no way of reviving Islamic civilization, except by taking over the

means required to release it, in awareness, open-mindedness and responsibil-
ity, following the guidelines of the fixed stars of our civilization, the factors
working for change in the present, and the possibilities for the future. The con-
ditions for all this are continuous scientific excellence, uninterrupted techno-
logical development, and continuously radiant cultural and artistic creativity.
All this must be accompanied by self-aware guidance of social and political life
on the basis of principles of truth, justice, equality, participation and coexis-
tence.

SFMagazine 11 1
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5
Contents

SFMagazine 11 | 2010 1 Editorial

4 Contents

Islamic Real Estate

7 Thom Polson
A more effective way to in-
vest in property

Sharia Scholars
10 Muhammad Zubair Usmani
The Concept of Musharakah
14 Beata Paxford
Sharia Boards
16 Ezry Fahmy
Shari’ah Scholars as an In-
dipendent Director : a Pro-
posal

4 SFMagazine 11
18

Focus on Pakistan Sharia principles and rules

18 Muhammad Taqi Usmani 32 Abu Shariq

Islamization of Laws in Zakah a priority for poor

Pakistan and needy
Islamic financial rules Islamic Culture
24 Mohammad Delwar Hossain 36 Ibn Khaldun
Al-Quard al-Hasan a Prati- Islamic Architecture
cal Approach
40 The future of Islamic archi-
International Relationships tecture
29 Louis Baeck 42 The Mosque of Al-Azhar
Islamic views on globaliza-
tion

SFMagazine 11 5
 Islamic Real Estate

In recent years we have seen property investments in the Arabia become

highly speculative and increasing in price. Much of this has been due to the
buying and continual of reselling of properties that have not been completed.
Particularly in the United Arab Emirates this has built up a speculative bubble
that took away actual property values to ones that was inflated and unsustain-
able. An investment such as this is highly dangerous and illiquid if you are the
final buyer in the chain. What happens if the property is never completed or
delayed for years such Hydra Properties projects in Abu Dhabi? Thankfully in
places such as Saudi Arabia, the speculative bubble was never fully embraced,
as so much of their property is purpose built or purchased for habitation.

For an investor or group to buy an office or residential building is a large under-

taking. Not just in terms of the capital needed for the purchase, but also the
costs of operations and maintenance. One must also think of whether they are
going to sell off the units or rent them out. A clear problem of selling is that is a
onetime only fee that doesn’t not reflect changes in the economy or demands,
once a sale is final, no more profit can be gained from the tenant. Yes, some
fees will flow from the tenants to cover building maintenance, but not enough
to enhance the builders overall profit.

This scenario will undoubtedly lead the owner or group to consider renting the
units. This is of course a much more stable and
long term way to recoup the investment though

A more effective continual rental payments although there is the

risk of illiquidity if the building owner is in need of
capital. Being a building owner though presents a

way to invest range of costs that have to be covered through

the tenements rental payments. Those being the
advertising and leasing available space, the main-

in property
tenance and cleaning of the premises, and of
course insurance. When we add up all these
costs, what will the owners income really be, and
more importantly will it remain constant or fluctu-
By Thom Polson ate from month to month?

This idea of rental space has applications not only

to the tenant, but also the economy and financial
system. This is because it is a rent producing asset, by where the cash flows
can be commoditized for a mass of investors. Real Estate Investment Trusts
have been used throughout the world as a way to deal with the costs of prop-
erty ownership. They can be for commercial, industrial, retail, residential, and
even medical or hospitality space. By having a mass of investors whether it is
for an individual office building or thousands of units spread across hundred
properties the principles will remain the same. For tax purposes a REIT will de-
vote 90% of its income to its investors through yearly dividend payments. But
as well this structure is designed to a listed tradable security just as a stock is.
There is also the ability to create REIT funds that act just as mutual fund does,
by investing in range REITs throughout specific a region or even defined prop-
erty types to gain returns from a much wider base.

As REITs are easily tradable in the market they have wide reaching implica-
tions, as with most real estate investments access to liquidity is a major con-
cern that an investor has to deal with. This is especially true when one thinks
of the billions of Dollars that were invested in Middle East Private Equity over
the last few years for real estate development, especially as these placements
will take years until the investors are able to redeem their shares. This brings
to light the importance of the property itself when investing in real estate. Yes
investing in real estate development is important, but may take years for those

SFMagazine 11 7
properties to produce a profit. While when dealing with
REITs, they are based upon already built and inhabited
properties.
Much like a Sukuk the dividend payments will come from
the cash flows, but nonetheless the REIT investor is also
an owner of the property(s). In terms of Islamic investing
this is a very crucial point. There are so few products
available to us that can provide for a dependable income
payment without being involved with Riba. Sukuk has
been the natural tool to deal with this as it is a Sharia-
complaint way to spread ownership of an asset and re-
ceive a fee from another’s use of it. Although unfortu-
nately as important as this product is, it is not allowed in
some jurisdictions and is not an efficient tool for the retail
investor to partake in. This is because of the costs of su-
kuk ownership is very high, as a single share may amount
to more than $100,000. However, this was not always the
case as the minimum buy in for the 2003 Qatar Global
Sukuk was only 10% of today’s average.
For this kind of Islamic quasi-fixed income investment
system to flourish there has to be a more affordable way
for the retail investor to become involved. The costs of
Sukuk have risen mainly due to the complexity, time, and
number of participants it takes to structure the transac-
tion. However, the costs of participation in a REIT are left
up to the market to decide as they are in essence listed
equities and one can trade as many shares as they wish,
when they want. Although at the moment for GCC inves-
tors there are no listed REITs, Islamic or conventional on
exchanges such as Tadawul in Saudi Arabia. However
there is no basis for preventing ownership in foreign
REITs. There are a number of Islamic REITs available in
8 SFMagazine 11
Malaysia and Singapore. The newest and most notable
product is from AXA Management in Singapore that has
recently launched an Islamic REIT that uses 164,000
square meters of residential and hospitality properties in
Qatar as its asset base.
This investment vehicle could become very important in
the sphere of Islamic investing as will become evident.
The principle reasons are that the yearly dividend can
either be taken as a cash payment or reinvested, increas-
ing ones ownership percentage as the years go by. This is
very important because when an investor does decide to
take the dividend as an income payment it will be linked
to the economy and not as a set payment derived from
Sukuk. As well Sukuk generally are short term that range
in life from 5-10 years. When this time is up, the investor
will have to find a new place to invest. And what if there is
no Sukuk at the time that meets their criteria? However
with a REIT, this is a perpetual income stream because as
long there are renters, there will be owners. This is be-
cause the dividend payment is based upon the REITs in-
come, profitability and inflation rate. There are some key
reasons for this as income is derived from renters and the
fewer vacancies a property has the more profit it will re-
ceive. Also the more the REIT takes care of its properties
through regular maintenance and refurbishments are
ways to keep occupancy high increase rents over time.
The economy and inflation are key factors as well, be-
cause as the economy expands, people’s incomes go up
meaning that the cost of living should rise at the same
pace. Although REITs can also achieve growth from the
negative effects of the financial system, as unfortunate as
it when an economy turns people may lose their homes
as was seen in the United States and England over the
past few years. The scenario put higher demands on the
need for rental housing; thus occupancy rates and the
REITs income grew. All of these factors are reasons to
think of why this easily developable Sharia-compliant
product falls into the category of a buy and hold asset
There is clear evidence from the United States, which
have had REITs since the 1960s. When rates of return
under the buy and hold mentality are computed, REITs
have a favored advantage over other fixed income vehi-
cles. A study from the Journal of Real Estate Finance and
Economics found that from 1990-1996 average yearly
returns were 4.9% for Treasury Bills, 11.2% for the S&P
Market Portfolio, and 14.2% for REITs. But more impor-
tantly if we widen the time frame, The National Associa-
tion of REITs in Washington, DC found that from 1972 to
2008 average annual dividends amounted to 8.3% of
one’s total holding. For example if $50,000 was invested
the payout would be $4,150; however this would undoubt-
edly rise as the investor’s holdings increased over the
years and or the economy expanded. But as well the Na-
tional Association of REITs found that the average annual
total returns (dividends + capital gains) were 11.2%. If we
think logically about the future, that as people are living
longer, their retirements could easily last 30 years and
will undoubtedly need an income from investments that
matches inflation of which a REIT can provide for.
However when we bring the focus back to the GCC, we
have to consider the population as a very important factor
in the growth of residential Islamic REITs. Not just in the
need for individuals to invest in them, but from a REITs
operational sense there is the obvious need for renters to
complete the system. Yes the expatriates in many of
these countries are a dependable base to fill up rental
units, but in all realties a good portion of GCC society will
need rental units as well. The majority of the population is
under 30 years old, the price of single family homes for
ownership has gone up considerably, and the cities can-
not expand outward forever. As with other countries and
cities that have grown; the villa has been replaced by
multi-family properties as the dominant practice of con-
struction. Not just because of the lower costs, but from
the practicality of it all. It takes much more time and
space to construct 100 villas, than it does to build a single
high rise tower. And as well once a high rise is completed
the natural conduit for ownership in many parts of the
world is not the sole investor, but a REIT with thousands
of like minded investors behind them.
Sharia-compliance is of course the primary factor that has
to be worked through for this discussion to really take
hold. Would the rules for a Malaysian Islamic REIT hold up
in the GCC? A Malaysian Islamic REITs says that no more
than 20% of the total rented space and income can be
derived from haram actives. For example if a 1,000
square meter supermarket was the asset base, up to 200
square meters could be used for the sale of alcohol or
pork. Now while these products are not sold in the major-
ity of the GCC, what factors would be in play? If the asset
base was an office building, could a conventional financial
firm take up to 20% of the space and rental income or
would it be 5%? As 5% of income is generally the maxi-
mum a company, under GCC Sharia-compliance can at-
tain from haram activities in order for compliance to be
had. From this sense is real estate, different from equi-
ties? As well if it were it were in the form of an Islamic
REIT fund, which invests in various REIT operators. Would
Sharia-compliance be achieved by passing a known set of
qualitative and quantitative screens as is already the case
when constructing an Islamic mutual fund? I do not know,
but these are real questions that need to be answered
before a GCC wide Islamic REIT industry could take hold.
However, as there will mostly likely be a massive need for
rental units in the future; this asset class could prove to
be one of the most vital for building a more credible and
effective way for Islamic inclined investors to profit from
real estate.
Thom Polson
Islamic Banking Expert
Graduate from Bangor University in the
United Kingdom in September with a Mas-
ters in Islamic Banking & Finance. He is a
graduate of the Institute of Islamic Banking
& Insurance in London and Franklin College
Switzerland. He is area of expertise is in the
field of Islamic mutual funds
SFMagazine 11 9
 Sharia Scholars

Musharakah means relationship established under a contract by the mutual

consent of the parties for sharing of profits and losses,arising from a joint en-
terprise or venture.

• Investments come from all partners/shareholders hereinafter referred to as

partners.
• Profits shall be distributed in the proportion mutually agreed in the contract.

The existence of Muta’aqideen(Partners):

• Capability of Partners: Must be sane & mature and be able of entering into a
contract. The contract must take place with free consent of the parties with-
out any fraud or misrepresentation.
If one or more partners choose to become non-working or silent partners.
The ratio of their profit cannot exceed the ratio which their capital invest-
ment bears so the total capital investment in Musharakah.

The basic rules and Features of Musharakah

• It is not allowed to fix a lump sum amount for any of the partners,or any
rate of profit tied up with his capital. A manage-

The Concept of ment fee however, can be paid to the partner

managing the Musharakah provided the agree-
ment for the payment of such fee is independent

Musharakah
of the Musharakah agreement.
• Losses are shared by all partners in proportion
to their capital.
• All assets of Musharakah are jointly owned in
proportion to the capital of each partner.
By Muhammad Zubair Usmani • All partners must contribute their capital in
terms of money or species at an agreed valuation.
• Share capital in a Musharakah can be contrib-
uted either in cash or in the form of commodities.
In the latter case, the market value of the com-
modities shall determine the share of the partner
in the capital.
• The presence of the commodity: This means the price and commodity itself.
• The rate of profit sharing should be determined: The share of each partner
in the profit earned should be identified at the time of the contract. If how-
ever, the ratio is not determined before hand the contract becomes void
(Fasid).
Therefore identifying the profit share is necessary.

Distribution of Profit

The proportion of profit to be distributed between the partners must be

agreed upon at the time of effecting the contract. If no such proportion has
been determined. The contract is not valid in Shari’ah.

The ratio of profit for each partner must be determined in proportion to the
actual profit accrued to the business, and not in proportion to the capital
invested by him. It is not allowed to fix a lump sum amount for any one of
the partners, or any rate of profit tied up with his investment.

If A and B enter into a partnership and it is agreed between them that A

shall be given Rs. 10,000/- per month as his share in the profit, and the rest
will go to B, the partnership is invalid. Similarly, if it is agreed between

10 SFMagazine 11
 them that A will get 15% of his investment, the con-
tract is not valid. The correct basis for distribution
would be an agreed percentages of the actual profit
accrued to the business.
OBSERVATIONS
If a lump sum amount or a certain percentage of the in-
vestment has been agreed for any one of the partners, it
must be expressly mentioned in the agreement that it will
be subject to the final settlement at the end of the term,
meaning thereby that any amount so drawn by any part-
ner shall be treated as on account payment and will be
adjusted to the actual profit he may deserve at the end of
the term.
But if no profit is actually earned or is less than antici-
pated, the amount drawn by the partner shall have to be
returned.
However, if a partner has put an express condition in the
agreement that he will never work for the Musharakah
and will remain a sleeping partner throughout the term of
Musharakha, then his share of profit cannot be more than
the ratio of his investment.
Sharing of loss
In the case of a loss, all the Muslim jurists are unanimous
on the point that each partner shall suffer the loss exactly
according to the ratio of investment. Therefore, if a part-
ner have invested 40% of the capital, he must suffer 40%
of the loss, not more, not less, and any condition to the
contrary shall render the contract invalid. There is a com-
plete consensus of jurists on this principle.
Profit is based on the agreement of the parties, but
loss is always subject to the ratio of investment.
Termination of Musharakah
Musharakah is deemed to be terminated in any one of the
following events:
1. Every partner has a right to terminate the Mushara-
kah at any time after giving his partner a notice to
this effect, whereby the Musharakah will come to an
end.
In this case, if the assets of the musharakah are in
cash form, all of them will be distributed pro rata
between the partners. But if the assets are not liqui-
dated, the partners may agree either on the liquida-
tion of the assets, or on their distribution or partition
between the partners as they are.
IN CASE OF A DISPUTE
If there is a dispute between the partners in this matter
i.e. one partner seeks liquidation while the other wants
partition or distribution of the non-liquid assets them-
SFMagazine 11 11
 musharakah.

3. If any one of the partners becomes insane or other-

wise becomes incapable of effecting commercial
transactions, the musharakah stands terminated.

Termination of Musharakah without closing the

business

If one of the partners wants termination of the mushara-

kah, while the other partner or partners like to continue
with the business, this purpose can be achieved by mu-
tual agreement. The partners who want to run the busi-
ness may purchase the share of the partner who wants to
terminate his partnership, because the termination of
musharakah with one partner does not imply its termina-
tion between the other partners.

However, in this case, the price of the share of the leaving

partner must be determined by mutual consent, and if
there is a dispute about the valuation of the share and the
partners do not arrive at an agreed price, the leaving
partner may compel other partners on the liquidation or
on the distribution of the assets themselves.

selves,the latter shall be preferred, because after the ter-

mination of musharakah, all the assets are in the joint
ownership of the partners, and a co-owner has a right to
seek partition or separation, and no one can compel him
on liquidation. However, if the assets are such that they
cannot be separated or partitioned, such as machinery,
then they shall be sold and the sale-proceeds shall be
distributed.

2. If any one of the partners dies during the mushara-

kah, the contract of musharakah with him stands
terminated. His heirs in this case, will have the op-
tion either to draw the share of the deceased from
the business, or to continue with the contract of

Muhammad Zubair Usmani

Mufti Muhammad Zubair Usmani completed
his Doctorate in Islamic Finance from Kara-
chi University. He is also the Fazil Takhassus
(specialist of Islamic Fiqh and Fatawa) from
Jamia Uloom Karachi and is also a research
scholar and teacher. He is also working as
Shariah Advisor at Muslim Commercial Bank
since july 2000.

12 SFMagazine 11
 Sharia Scholars

Islamic finance & banking has successfully settled in Europe. That is a fact.
However, if you happen to talk with someone about the idea, you will usually
hear the answer: “Yes, interest free banking”. And what has to be emphasized
is that Islamic banking & finance is not only related to the prohibition of riba,
but it has a whole spectrum of issues worth knowing. One of such is the ques-
tion of Sharia boards – the advisory body of all Islamic financial institutions.

The presence of the Sharia board is a sine qua non condition of the existence
of an Islamic financial institution. A Sharia Board consists of experts or scholars
trained, as its very name suggests, in Sharia. Their first role is to provide ad-
vice to the Board of Directors in matters connected with religious Islamic law.
The members of the Sharia board are also responsible for compliance checks of
transactions held by the institution the board advises for. The rule has it that
an Islamic finance institution (Islamic banks included) has to make sure that all
the transactions are compliant with Sharia and can therefore be called Islamic.
Banks and other financial companies that intend to embark on the Islamic ven-
ture, are obligated to employ a Sharia board. In traditionally Islamic countries,
this issue is not a problem, as there would be plenty of access to scholars. Nev-
ertheless, in Europe, finding and keeping a reliable and credible Sharia body
might cause some legal and management issues.

First of all, availability. Experts in Islamic finance point out that the European
market does not boast a large number of Sharia
scholars to chose from. This is why many Islamic
firms literally share members of a Sharia board.
The question arises as to whether one and same
expert can provide unbiased advice for competing

Sharia Boards firms. Islamic institutions, it has to be underlined

here, are not charity organizations, they are des-
tined to compete and woo clients, often using
various marketing techniques. Furthermore, insti-
By Beata Paxford tutions may differ in terms of goals, targets and
scope of business. Hence, economists and law-
yers specialising in Islamic finance ask if such a
solution provides for a healthy and trustworthy
standard. Of course, it might be said that the
members of the Sharia board sitting in various
firms are objective and independent, but still the issue remains. Likewise, some
financial institutions want the members of their bodies to sign an anti-
competition agreement, requiring them not to work for a competitive institu-
tion for some period of time. For Islamic finance firms, that could turn out to be
disastrous. There are only a few respected experts in Sharia and from what can
be seen, there is a long way to go before new ones appear on the scene.

For a European market, an Islamic financial firm would need a Sharia board
that knows the religious law, economy and the characteristics of continental
financial and banking services. For a Sharia scholar trained in another country
on a different continent, a more lax European approach to Sharia may seem
unacceptable. For instance, derivative based transactions that are used in
Europe can be considered haram in more conservative Islamic environment.
Bodies like the Islamic Finance Services Board or AAOIFI are working hard to
provide a unified set of guidelines for Islamic institutions around the world, but
there is still a long way to go. Luckily, recently European universities (mainly in
the UK) have developed MBA courses in Islamic finance & banking aiming at
educating more professionals in Sharia-oriented business. However, we have to
wait a couple of years to assess whether the specialists with the MBA diploma
in Islamic finance will prove efficient and well prepared for the job.

The other issue worth considering is the independence of the Sharia board.
Usually, the members of the Sharia board are employed by an Islamic institu-

14 SFMagazine 11
tion. According to European law, they have to work on the
grounds of an employment contract under the supervision
of an employer. In financial institutions, the Board of Di-
rectors (or the Management Board as it is sometimes
called or le directoire in French) is the main authority of
the firm. The Board decides on the strategy of the firm,
the salaries, the investments and lay offs and other like-
wise issues. In an Islamic financial institution, ideally and
theoretically, the Sharia Board is a completely independ-
ent body that provides fatwas on Sharia compliance. Nei-
ther the Board of Directors nor the Supervisory Board can
influence the fatwas issued by the Sharia board. Gener-
ally, the employment contract as such excludes independ-
ence because there exists subordination between the em-
ployee and the principal. In terms of the Sharia board,
such solution would be not acceptable, as the employed
members of the Sharia board could be stripped of their
independence in a compliance check.
In respect of the independence of the Sharia board, there
is also a question of potential legal problems related to
this body. As mentioned previously, financial institutions
(if they act as joint stock companies, plc, limited liability
companies etc.) are required to have two bodies – that is,
the managing Board of Directors and a Supervisory Board.
The members of each of the bodies are either appointed
by the shareholders or by another body. Their roles are
usually specifically stipulated in the relevant legal codes.
Both bodies have different roles in the company. In terms
of the Sharia board, it is difficult to place their role among
these bodies. The role of the Sharia board is mostly simi-
lar to the role of the Supervisory Board. However, the
members of the Sharia board do not often possess the
required economical and legal knowledge to read compli-
cated financial statements and to assess the work of the
Board of Directors.
Hence, those shaping the Islamic finance industry have
much on their plate in respect of the Sharia board. In the
author’s view, the members of the Sharia board should
excel both in Islamic law and economics. They should go
on a special course or even studies to gain the required
knowledge of e.g. bank management, specific legal issues
in a given jurisdiction, the ability to value and understand
financial transactions and their aim. The Sharia board can
no longer remain archaic in terms of the modern manage-
ment of a financial firm. As for their independence, the
best solution would be to either appoint members of the
Beata Paxford
Is a senior lawyer for a renowned Polish law
firm. She is a PhD candidate in the Chair of
Banking Law at Warsaw University. Her PhD
dissertation is devoted to Islamic banking.
SFMagazine 11 15
 Sharia Scholars

1.0 Shari’ah scholars in IFIs

Malaysian rules and regulations have spelled out several provisions in relation
to the establishment of Shari’ ah Advisory Committee (SAC) in the Islamic fi-
nancial institutions in Malaysia. The existence of Shari’ah Advisory Committee
(SAC) or Shari’ah Supervisory Board (SSB) is one of the most important govern-
ance mechanisms of an Islamic Financial Institution (IFI) to ensure the Islamic
Financial Institutions (IFIs) are compliance with Shari’ah.
It is important for the SSB to understand their roles and responsibilities as well
as the process of how an SSB should reviews the performance of a given IFIs.
The roles and responsibilities of the SSB of IFIs as define by the AAOIFI con-
notes a greater duty of not only endorsing and approving the Bank’s products
but ensuring its compliance through directing, supervising and importantly
reviewing its operations. This actually has no difference than what define by
IBA 1983 whereby the function of the Shari’ah committee is more than just an
advisory role on the bank’s operation1. Thus the SSB are considered to be re-
sponsible in most aspects of the bank’s operational.
The Shari’ah scholars who act as advisors grounded in endorsement of all prod-
ucts and services of their respective IFIs, without whom the compliance of the
product to the Shari’ah would be questionable2. This critical role is indiscrimi-
nate to all financial products, be it banking, takaful, capital markets, wealth
management and so forth. According to AAOIFI standard, Shari’ah advisers can
be defined primarily as "specialized

Shari’ah Scholars jurists, particularly in fiqh muamalah

and Islamic finance, entrusted with
the duty of directing, reviewing and
supervising the activities related to

as an Independent Islamic finance to ensure they are in

compliance with Shari’ ah rules and
principles. The views of the Shari’ah
adviser shall be binding in the specific

Director: A Proposal area of supervision".

1.1 Role and responsibilities of
Shari’ah scholars
By Ezry Fahmy
As what explained above whereby the
roles and responsibilities of the
Shari’ah scholars as SSB in respective IFIs has a lot to do with ensuring the
operational side of IFIs are Shari’ah compliance. Therefore, indirectly the
Shari’ah advisor control what do’s and don’ts in the IFIs operational sides and
their authority in approving products and services more or less determine the
path of the IFIs in terms of growth and sustainability. Consequently, there
should be no chance for conflict of interest between the Shari’ ah advisor and
the IFIs!
Another question mark that we feel important to raise is whether the endorse-
ment in the yearly annual report where the Shari’ah advisor claims that “we
hereby confirm that all the business activities fulfill the Shari’ah requirement”.
Personally, we have a doubt; because it lacks the criteria of being independent.
Our premise is that, the Shari’ah officer/advisor works in the organization, paid
by the organization and where the one who approves the many products of-
fered by the bank. Therefore, it does not seem right to have people from inside
to make such claim. Even the financial reports are being validated by an exter-
nal auditor.
2.0 Comprehend the position of Independent director and Shari’ah
Scholars
Analyzing such statement above indirectly questioning why it is in the first
place there is a need of independent director especially for Shari’ah scholars?
As what explained above whereby the roles and responsibilities of the Shari’ah
scholars as SAC in respective IFIs has a lot to do with ensuring the operational
side of IFIs are Shari’ah compliance. Therefore, indirectly the Shari’ah advisor

16 SFMagazine 11
control what do’s and don’ts in the IFIs operational sides
and their authority in approving products and services
more or less determine the path of the IFIs in terms of
growth and sustainability. Consequently, there should be
no chance for conflict of interest between the Shari’ah
advisor and the IFIs!
But currently, majority IFIs in the Islamic finance industry
appointed the Shari’ah scholars and pays them as advisor
for the IFIs. Therefore, there is a direct relationship be-
tween the Shari’ah advisor and the IFIs their working with.
This kind of relationship reflects that the Shari’ah Advi-
sory Committee (SAC) as not totally independent as what
the bankers ought to be. Especially when such issues rise
when in some cases like products and services by Malay-
sia’s IFIs, which are often, deemed not Shari’ah complaint
in the more austere Gulf. These kind of issues being used
by the critics as they called ‘Fatwa Shopping’ where the
bankers phone up a Shari’ah scholar that are willing to
give them a Fatwa to seal of approval, confirming the
product is Shari’ah compliant by offer them a sum of
money. Such claim analogically may be viewed as a glass
of water with half empty or half filled. But on the other
side, this kind of case will happen as long as the Shari ’ ah
scholars are ‘attached’ with the respective IFIs.
3.0 Independent director in IFIs
The idea of having one of Sha ri’ ah scholar as independ-
ent director in IFIs mainly because to ensure there are
sound policies, procedures and effective and efficient
monitoring systems with proper checks and balances can
be done especially regards to Shari’ah matters in IFIs op-
erational process. An independent director can be ex-
plained as:
a) not been employed by the Company
b) not, and is not affiliated with a company that is an ad-
visor or consultant to the Company
c) not affiliated with a significant customer or supplier of
the Company
d) no personal service contracts with the Company
e) not affiliated with a non-profit organization that re-
ceives significant funding from the Company
f) not employed as an executive of another company
where any of the Company's executives serve on that
company's board of directors
g) not a member of the immediate family of an individual
who is, or has been during the past five years, employed
by the Company
h) not a controlling person of the Company
In simple words, an independent director is one who is
independent of management and free from any business
or other relationship that could interfere with the exercise
of independent judgment or the ability to act in the best
interests of a listed company6. The purpose of identifying
and appointing independent directors especially the
Shari’ah scholar is to ensure that the board includes di-
rectors who can effectively exercise their best judgment
for the exclusive benefit of the IFIs, judgment that is not
clouded by real or perceived conflicts of interest.
In IFIs case, the business operational processes represent
Islamic business organization, it portrays the image of
Islam, thus any actions or decisions have direct and indi-
rect impact towards the teachings and religion of Islam.
By having a Shari’ah scholar in as the independent direc-
tor, the Shari’ah scholar can help the board to provides
expertise and guidance on conformance to the Shari’ah
principles in all matters of the IFI business operations.
Having a Shari’ah background person in the board of di-
rector and being independent will give good impression to
the public. A Shari’ah scholar is a person with good repu-
tation and character as well as possesses the necessary
qualifications and expertise, particularly in fiqh muamalah
and Islamic jurisprudence, and has experience and/or ex-
posure in Islamic finance brings greater confidence from
the public towards the IFIs.
Stakeholder may feel relief if the independent director
plays their important role as part of corporate govern-
ance: automatically maintaining public trust and confi-
dence in the banking business.
4.0 Governance Framework: The way forward
Moreover, effective governance framework requires in-
volvement of all stakeholders, namely, the board, senior
management, and Shari’ah advisors that properly struc-
tured and complement each other in providing check and
balances mechanism that strengthens the corporate gov-
ernance practices. A committed and knowledgeable board
is a cornerstone to an effective corporate governance
system. Therefore having a Shari’ah scholar on board
would help the IFIs via the necessary skills and experi-
ence towards achieving the IFI’s goals. This will eventually
lead to a sound corporate governance practices that later
on will contributes to situation where risk taking activities
and prudence practices are appropriately balanced in the
interest of stakeholders.
Besides that, an independent director comprises of
Shari’ah scholar even only one of them being selected
should be seen from a brighter side, this is when the role
of the Shari’ah scholar as the Shari’ah Advisory Commit-
tee (SAC) as well as role as part of the boards can be
strengthen when the Shari’ah scholar could fully utilize
knowledge that he possess about market and industry. A
dynamic mix of competent and diverse skill sets coupled
with an appropriate tone at the top of practicing and pro-
moting legal-ethical compliance and professional conduct
are necessary ingredients for an effectively governed
board.
To conclude, the appointment of Shari’ah scholar as an
independent director will enhance the effectiveness of the
board as the oversight body to oversee what the manage-
ment does. Hence it will also help the company not only
be independent according to the legislative but also inde-
pendent in thought and action especially regarding the
Shari’ah matters which are the back bone of the industry.
Ezry Fahmy
Graduated from International Islamic University Mala-
ysia (IIUM) with a B. Econs.(Hons) in Islamic Economics
and Finance qualification, currently he is pursuing
Charted Islamic Finance Profesional (CIFP) program at
the International Centre for Education in Islamic Finan-
ce (INCEIF). He is now attach with one of the Islamic
bank in Malaysia under Shariah and Product Develo-
pment Division and has written various articles on
Islamic Banking and Shariah issues.
SFMagazine 11 17
 Focus on Pakistan

Ever since the creation of Pakistan, the issue of Islamization has been a subject
of debate both within and outside the country. Islamization of laws is an impor-
tant element of the overall concept of Islamization in the country, and this as-
pect generated great discussion and deliberations in 1979 when the govern-
ment introduced Hudud Laws (Ordinances).

An objective study of the views and response to the Ordinances indicates the
existence of three opinions. There are people who think that since hudud are
prescribed in the Qur’an and Sunnah, one cannot think of changing or amend-
ing them. Some are opposed to the very idea of Islamization, so they call for a
total repeal of the Ordinances.

The third group consists of those who support the idea of Islamization and, in
fact, consider it Pakistan’s raison d’etre, but feel that the Ordinances might be
in need of review and amendments, even though the hudud are certainly di-
vinely ordained. They are of the view that, surely, it is the Qur’an and Sunnah
that prescribe hudud, but their translation into laws is a human effort that
needs continuous review to adjust to the demands of changing times. This
analysis, with its focus on the Hudud Ordinances, seeks to help in creating an
understanding of the entire debate on Islamization of laws in Pakistan. The task
is onerous, delicate and complex. Underscoring the importance of implementa-
tion of Islamic laws, and refuting the allegations of opponents, the article also
identifies some of the areas in the Hudud Ordi-
nances, specially the Hudde Zina Ordinance, that
are in need of reform.

The country has been in the grip of a raging de-

Islamization of bate on the issue of the Hudud Laws ever since

they were introduced in 1979. There are some
who ask for complete repeal of these laws, others

Laws in Pakistan
who insist on keeping them as they are, and a
third group calling for amending and reforming
these laws to make them more responsive to hu-
man and social conditions.
By Muhammad Taqi Usmani
Presented here is a dispassionate analysis of
these, so-called ‘controversial,’ laws for a better
understanding of the actual situation.

The analysis is divided into three parts. The first part discusses briefly the im-
portance of the injunctions of Islamic Shari’ah; the second part addresses the
questions and doubts that are raised, furiously and frequently, about the
Hudud Laws; and the last part focuses on those aspects that, to this scribe, are
in need of review, amendment and reform.

Hudud and their Place in Shari’ah

As far as the importance of Shari’ah injunctions is concerned, it does not need

to be impressed upon Muslims for the simple reason that when they profess
the kalima, confirming the oneness of Allah and the prophethood of Muham-
mad ‫( ﺻﻠﻰ ﷲ ﻋﻠﻴﻪ وﺳﻠﻢ‬peace be upon him), they proclaim that they will observe
Allah’s commands by following the example of the Prophet Muhammad ‫ﺻﻠﻰ ﷲ‬
‫ ﻋﻠﻴﻪ وﺳﻠﻢ‬in all walks of life. Needless to say, these commands and teachings
are not confined to acts of worship (ibadah) but cover all aspects of life –
including criminal law of which the Hudud Laws are a part.

The ‘hudud’ are the penalties that the Qur’an and Sunnah of the Prophet have
prescribed for certain crimes. Notably, Islamic criminal law is quite lenient in
this matter in that it prescribes punishments for only a few crimes. For all other
crimes, there is no permanent prescription for specific punishments, and the

18 SFMagazine 11
task of imposing punishments has been left to the ruler
and the judge, i.e., the legislature and judiciary in modern
society. It is these institutions that can prescribe punish-
ments for different crimes according to the demands of
the time and prevailing conditions. These punishments
are called ‘tazir, ’while those prescribed in the Qur’an and
Sunnah are called ‘hudud.’
Theft, robbery, Zina (fornication, adultery and rape) false
accusation and drinking are crimes for which hudud have
been prescribed. In Pakistan, the Hudud laws were en-
forced in 1979 and the ordinances regarding these crimes
are commonly referred to as the Hudud Ordinance. Why
immutable punishments were prescribed for these par-
ticular crimes and not others, and why these too were not
left to the discretion of the legislature and the judiciary is
beyond this article’s purview. I would rather limit myself
to submitting that Divine Revelation insists on something
only where human intelligence is unable to move or vul-
nerable to mistake. So, the issue is settled with a direct
command contained in Revelation, instead of being left to
human intelligence. Whether one—an individual or a peo-
ple—understands the wisdom behind the command or
not, it is binding in all circumstances. In such situations,
compliance with the command accrues invisible yet not
totally imperceptible benefits, but the chain of cause and
effect remains beyond human discernment. Such is the
case with hudud, too, perhaps.
ment, and it is therefore not right to postpone their en-
forcement until the establishment of such an environ-
ment. Moreover, it must be appreciated that the estab-
lishment of a model Islamic society is an onerous task,
and it would be impossible to assess when a society had
become ‘sufficiently Islamic’ for enforcing hudud. The
model society that Islam seeks to establish is an ideal
that requires continuous and unflinching struggle to be
realized. Laws are made and enforced to curb evil and to
move the society closer to the ideal, and the Hudud Ordi-
nance seeks to serve this purpose.
The criticism that harsh punishments of death and lashing
are uncalled for in prevailing conditions, which consist of
too many temptations, offers no solution to the problem.
Instead of being scrapped altogether, the law should be
improved to effectively check the spread of evil from soci-
ety.
It is important to note that the Hudud Ordinances are not
‘static.’ It is for the courts to decide each case, keeping in
view specific details, the context in which the crime took
place, as well as the condition of the accused. In Shari’ah,
even a small plausible doubt suffices to annul hadd pun-
ishments. The importance of this condition can be gauged
from the fact that no accused has been awarded a hadd

This underscores the importance of enforcement of hudud

in an Islamic state. It is understandable that there can be
different views with respect to setting priorities in the
formidable task of transforming an entirely non-Islamic
legal system into an Islamic system. However, there can-
not be two views about the importance of enforcement of
hudud.

Hudud Laws and Islamization Debate in Pakistan

It is true that hudud laws are only one element of the Is-
lamic legal system; in other words, the Islamic legal sys-
tem is not solely about hudud. Besides legal means for
discipline, Islam also gives non-legal teachings for the
reform of society, which greatly help in curbing crimes.
This implies that an Islamic state cannot absolve itself of
its duties by just enforcing the hudud; it is also responsi-
ble for creating an atmosphere that discourages the inci-
dence of crime in the first place. However, this does not
provide sufficient grounds for the objection, sometimes
raised, that it is unjust to enforce Shari’ah laws consisting
of harsh punishments in a society where no other thing is
Islamic and where media is spreading waywardness in the
youth. Building on this objection, some even say that
unless all the sources that instigate violence and crime
are eliminated, and until a model Islamic society is estab-
lished, laws like the Hudud Ordinances should not be in-
troduced.

This objection is unreasonable. For one thing, there is no

doubt that the very enforcement of hudud in letter and
spirit plays a significant role in creating such an environ-

SFMagazine 11 19
punishment since 1979; all of those convicted were given
‘tazir’ punishments. This underlines the reasoning that,
instead of waiting for society to become Islamic (as if this
would come about by some stroke of magic!) before en-
forcing Islamic laws, the wise course would be to continue
with Islamization of laws as a step towards Islamizing so-
ciety.
Before proceeding further, it needs to be realized that
whereas the laws ordained by Allah and His Prophet are
sacred, and there is no room for doubts about it, when
these laws are codified, that code of law represents hu-
man effort, which is not infallible, but susceptible to mis-
take. The drafting of any law is a very delicate undertak-
ing. All possible situations have to be kept in mind and
provided for in words. Since human intelligence, being
limited, cannot visualize all kinds of circumstances in ad-
vance, there is always a possibility of flaws and weak-
nesses in any piece of law. The Hudud Ordinances are no
exception. They might suffer from weak drafting. They
might contain some aspects that are in need of review
and improvement. Without changing the injunctions of
Shari’ah, as commanded by Allah and enforced by His
Prophet, the process of change and improvement in its
implementation can theoretically go on forever, as indeed
it should. Of course, this process should be guided by ob-
jective critique and not hostility.
It is unfortunate that polarization has kept the doors shut
for such an objective approach.
Whenever a proposal concerning some issue is raised at
the political level, people get divided into two camps:
while one fails to see any good in it and calls for its total
20 SFMagazine 11
repeal, the other fails to notice any flaw in it and deems it
heretical to even think about amending it. This is what is
happening in the case of the Hudud Ordinances also.
There is a group that, instead of undertaking a critical
analysis, is raising unfounded objections against the
Hudud Ordinances. These people, many of whom are in
fact against the very concept of enforcement of any Is-
lamic injunction as a law, are not ready to accept any-
thing less than its annulment. They represent the secular
mind that holds that religion is a private matter between
man and his God, and it should not interfere in the affairs
of the state. An added factor that has lent stiffness to
their opposition to Hudud laws is that these laws top the
list of Islamic injunctions that are the target of many cir-
cles in the West as well.5 Thus, they can be expected to
oppose the Ordinances tooth and nail, no matter how
flawless they become or how pristine a shape they as-
sume.
The dilemma facing these people is that they cannot
openly say in a Muslim society, as Pakistan’s is, that Is-
lamic laws are not acceptable to them. So they adopt an
‘indirect’ approach. Instead of raising objections against
Islam or its legal system, they find fault with the man-
made drafted laws. In the case of the Hudud Ordinances,
they have deemed it most useful to term them anti-
women. This is how they try to raise the concerns of the
international community and solicit its support for their
political ends.
Harshness of the Hadd Punishments:
Much hue and cry has been raised against the harshness
of the hadd punishments. In any action, it is human psy-
chology to compare prospects of profit against possibili-
ties of loss, and opportunities against dangers. If the pros-
pects of profit are greater than the danger of loss, one
goes ahead; if not, one refrains from the undertaking. In
committing crimes, similarly, one is lured by a tempta-
tion, but deterred by the prospect of punishment. If, in
one’s reckoning, the pleasure of the crime exceeds the
pains of punishment, one may commit it; but if the deter-
rence is greater than the urge, one would be more likely
to refrain. Shari’ah has prescribed punishments keeping
in view this human psyche and nature. The more heinous
the crime, the harsher is the punishment, so that the soci-
ety is purged of wicked and depraved elements.
As for the ‘brutality’ of the punishment of stoning to death
(Hadd punishment for adultery and rape), it should be
realized that it is, in fact, a kind of death sentence. In nu-
merous laws around the world, many crimes incur a death
sentence, which might be administered through various
forms, such as hanging, decapitation, gas chamber, elec-
tric shocks, injection, bullet-fire or stoning. The methods
are different but the punishment is the same. It is there-
fore not so relevant to debate that a bullet kills instantly
and with greater efficacy, while stoning protracts the inci-
dence of death. At times a bullet does not hit the right
mark and death is delayed, while a stone hits its point
and results in instant death.
In any case, the argument that death should be swift goes
against the purpose of this punishment: without its
‘torment’ and gravity, the sentence of death would lose
much of its meaning. This is borne out by the fact that
people are not afraid of death as much as they are of un-
dergoing the agony of death.
Aside from plain logic, if those who are worried about the
death sentence for adultery consult the statistics, they
would know that cases of death on account of adultery
are fewer than half of the deaths in other cases. While no
one can condone the killing in the name of honour, the
current situation in our society is that when a man finds
his wife or sister or daughter in a ‘compromising relation-
ship’ with someone, he himself kills her along with the
paramour. At times, the methods employed for the mur-
der of the wrongdoer are even more drastic and severe
than stoning to death. So, the punishment of stoning to
death is a pragmatic realization of the actual situation
and a measure to rectify it, along with providing a better
system for the elimination of crimes.
Similarly, to say that the punishment of lashes (Hadd pun-
ishment for fornication, drinking and false accusation) is
against human dignity is itself against the dictates and
demands of respect for humanity. If a person ignores his
or her own dignity and impinges on others’, why shouldn’t
there be a punishment that forces him or her to correct
this behavior? To punish one or two for their wrongdoing
in order to deter other criminal-minded elements and to
protect the rest is better than letting criminals get away
with their crimes and morally harm the social fabric.
Discriminatory against women:
It is said that the Hudud Ordinances are discriminatory to
women, that they have made women victims of all kinds
of injustices, and that they have been handed down pun-
ishments for wrongs they have not committed.6 This view
has been repeated ad nauseam until even neutral ele-
ments have become suspicious about the purpose of the
Ordinances. There is one clause in the Zina Ordinance –
clause 8(b) about women’s witness – on account of which
it can be said that it discriminates between men and
women. Yet, not a single woman has ever been punished
on the basis of this clause, nor has it made any significant
difference in practical terms. This issue is discussed later
in this article, but what needs to be stressed here is that
the allegation of discrimination against women is totally
baseless with respect to the other clauses of this Ordi-
nance. This allegation is levelled without studying the
laws and their implications, and amounts to giving such
meanings to the laws, just to oppose it, that are not even
intended. This has led to ridiculous situations. The follow-
ing two examples expose the true depth of such allega-
tions.
The Qazf Ordinance is one of the Hudud Laws.7‘Qazf’
means levelling a false accusation in hadd cases. The in-
tent of the law is that if one is accused falsely of commit-
ting a crime liable to hadd, one can seek punishment from
the court against the false accuser. While Shari’ah has
declared such crime highly serious, it has prescribed a
punishment of 80 lashes for it. The Qazf Ordinance is
there to enforce this punishment. Clause 8(a) states who
can file a complaint of Qazf: If the person in respect of
whom the Qazf has been committed is alive, that person
or any person authorized by him…
It is the use of ‘him’ here that has become the bone of
contention. It is an established rule of law that the mascu-
line pronoun is inclusive of both men and women. This is
the situation with most of the laws of the world. But, since
this Ordinance had to be condemned as anti-women, its
opponents picked the issue of a pronoun to claim that it
SFMagazine 11 21

allows only men to file complaints.
If such allegations come from some ignorant people -
those who do not understand legal language - their other-
wise baseless protests are understandable. But, surpris-
ingly, this objection was raised by the National Commis-
sion on the Status of Women, which was appointed to
review the Ordinances and included legal experts. Its
comment on section 8(a) of the Qazf Ordinance is:
It is obvious from the wording used in this clause that the
drafters of this law overlooked and completely ignored
women… excluding the term ‘her’ means that it is only a
man against whom Qazf is committed is eligible to file a
complaint.8
This was done to indicate that the Ordinance is discrimi-
natory, allowing men to approach courts for redress
against false charges of illicit relations, but not women.
The blatant bias in this charge becomes even clearer
when one considers that Clause 2(b) of the Qazf Ordi-
nance says that Pakistan Penal Code is applicable to this
law – and Clause 8 of Pakistan Penal Code’s clearly states:
The person ‘he’ and its derivatives are used for any per-
son, whether male or female.
The second example of a baseless charge pertains to the
Zina Ordinance. Clause 5(1)(a) of the Zina Ordinance at-
tempts to define the crime of Zina in the following terms:
22 SFMagazine 11
Zina is liable to hadd if it is committed by a
man who is an adult and is not insane, with
a woman to whom he is not, and does not
suspect himself to be, married.
Here, the objection raised is that while the
word ‘adult’ has been used for a man, it
has not been used for a woman. The rea-
son, however, is clear. If a man who has
committed Zina is not an adult, hadd can-
not be imposed on him; but if an adult man
has committed the crime against a woman,
whether adult or not, hadd can be imposed
on him. Not setting the condition of being
‘adult’ for the woman ensures that hadd is
imposed on a man who has raped any
woman, whether she is an adult or a minor.
In this context, the recommendation of the
National Commission on the Status of
Women that, “As the term ‘adult’ has been
used for a man, it should also have been
used for a woman,” is strange indeed.9 It
means that the crime would be liable to
hadd only when an adult man has committed it against an
adult woman; if an adult man has committed the same
heinous crime against a minor girl, he would go scot-free.
Clearly, the existing definition of Zina and its hadd in the
Zina Ordinance ensures more rights for women than the
draft recommended by the Commission.
The above two examples amply expose the depth of alle-
gations, as well as the mindset, against the Hudud Ordi-
nances. A similar example occurs in the Report of the
Commission of Inquiry for Women,10 which says that dif-
ferent clauses of the Ordinances are used against women
and they are booked in false hadd cases for personal rea-
sons.
Some 80-90 percent of women prisoners are facing cases
under these Ordinances and languishing in jails. This is
factually wrong, as the statistics given below indicate.
Muhammad Taqi Usmani
Justice Muhammad Taqi Usmani, born in
Pakistan is a renowned figure in the field of
Shariah, particularly in Islamic Finance. He
currently holds advisory positions in a num-
ber of financial institutions practicing Islamic
Banking and Finance. Justice Muhammad
Taqi Usmani has vast experience in Islamic
Shariah, teaching various subjects on Islam
for 39 years.
 Islamic financial rules

Islam allows loan as a form of social service among the rich to help the poor
and those who are in need of financial assistance. Loan in Islam may be ob-
tained in two ways: (i) Loan with condition of repayment, and (ii) gratuitous
loan without any compensation or gift. However, Islam does not recognize any
loan with interest for the benefit of the debtor. It only recognizes gratuitous
loan or better known as al-qard al-hasan. Such loans have not been uncommon
in human history among peers, friends and relatives. Kindness is encouraged in
Islam. The Prophet (s.a.s) is reported to have said:

the inmates of Paradise are of three types: one who wields authority and is just
and fair; one who is truthful and has been endowed with power to do good
deeds and the person who is merciful and kindhearted towards his relatives
and to every pious Muslim, and who does not stretch out of his hand in spite of
having a large family to support. [Sahih Muslim]

Definition of Qard al-Hasan

The word "qard" is derived from Arabic "qirad" which means 'to cut'. It is called
qard, as it cuts certain part of the lender's property by giving loan to the bor-
rower. Hasan is also an Arabic word, which originates from 'ihsan'. Ihsan means
kindness to others. So, hasan is an act which benefits persons other than those
from whom the act proceeds without
any obligation. The term al-qard al-
hasan means beneficial loan or be-
nevolent loan, gratuitous loan, inter-
est free loan, beautiful loan etc. M.

Al-Quard al-Hasan Umer Chapra has given the defini-

tion of qard al hasan as: "Qard al-
hasan is a loan which is returned at

a Pratical Approach the end of the agreed period without

any interest or share in the profit or
loss of the business." Therefore,
qard al-hasan is a kind of gratuitous
By Mohammad Delwar Hossain
loan given to the needy people for a
fixed period without requiring the
payment of interest or profit. The
receiver of qard al-hasan is only required to repay the original amount of the
loan.

Objectives of Qard al-Hasan

Islam emphasizes to make brotherhood among the Muslims. The main principle
of brotherhood is to care and share each other. Qard al-hasan being a gratui-
tous loan can help the fellow Muslim brothers who need money but they do not
have. Thus, qard al-hasan enhances brotherhood among the Muslims. The
main objectives of qard al-hasan are:

a. To help the needy fellow people.

b. To establish better relationship among poor and the rich.

c. The mobilization of wealth among all people in the society.

d. To perform a good deed that is encouraged and appreciated by the

Almighty Allah and His messenger.

e. To strengthen the national economy.

f. To facilitate the poor to create new jobs market and business ven-
tures by using their merits, skills and expertise.

g. To establish a caring society.

24 SFMagazine 11
 h. To eradicate unemployment problem from the
society.
i. It can be also a missionary work for daw'ah ac-
tivities by giving qard al-hasan to the non-
Muslims, who might be attracted by knowing the
beauty of Islam.
j. It can remove social and economical discrimina-
tion from the society, and
k. Finally, obviously there is a great reward in the
Hereafter for giving qard al-hasan.
Qard al-Hasan in Qur'an and Sunnah
In many places of the Holy Qur'an, Allah has mentioned
and encouraged His creature for qard al-hasan by assur-
ing better reward in this world and in the Hereafter. In the
Qur'an Allah says,
1. He who will give Allah qard al hasan, which Allah will
double into his credit and multiply many times. [Al-
Baqarah (2): 245]
2. If you give Allah qard al hasan. He will double it to
your credit and he will grant you forgiveness. [ Al-
Tagabun (64):17]
3. And give Allah qard al hasan. [ Al-Maidah (5): 12]
4. And give Allah qard al hasan, it will be increased
manifold to their credit. [ Al-Hadid (57): 18]
5. Who is he that will give Allah qard al hasan? For Al-
lah will increase it manifold to his credit. [Al-Hadid
(57):11]
6. Establish regular prayer and give regular charity and
give Allah qard al hasan---. [Al-Muzzammil (73): 20]
The sunnah of the Prophet (s.a.s) is also very clear on this
issue. It is reported that the Prophet (saw) said, "in the
night of the journey, I saw on the gate of heaven written,
'reward for sadakah is ten times and reward for qard al-
hasan is eighteen times'. So, I asked the angel, how is it
possible? The angel replied, "Because beggar who asked
had already had something but a loanee did not ask for
loan unless he was in need." [Ibn Hisham & Ibn Majah].
In another hadith reported by Abu Hurairah (R), the
Prophet (s.a.s) said, "whoever relieves a believer from a
difficulty in this world, Allah will relieve him from his diffi-
culty and Allah will facilitate him in this world and world
hereafter." [Muslim]
The above Qur'anic verses and ahadith directly and indi-
rectly encourage the Muslims to give qard al-hasan and
which will increase their credits in manifold and bring for-
giveness for them.
Rules regarding al-Qard al-Hasan Transaction:
Al-qard al-hasan, being a contract ('aqd) between two
parties requires same principles which are applicable for
other Islamic transactions. These principles are as follows:
a. Both parties should be legally (shari'ah) capable to
enter into the qard contract.
It is unanimously agreed by the four schools of law
that to enter into a contract, parties will be baligh,
'aqil and rashid (major with sound judgment). The
Mejelle has also incorporated the same principles. In
the holy Qur'an, Allah says, "Make trial of orphans
until they reach the age of marriage; if then
you find sound judgment in them, release their
property to them." [Al-Nisa (4): 6]. This verse
states that the age of marriage and the sound judg-
ment is the age of majority,
and thereby a major person
is capable to enter into any
transaction validly.
In a hadith, the Prophet
(s.a.s) said, "The pen is
raised for three groups (of
people) that is, they will not
be responsible for their ac-
tions: the insane until they
become sane, those who are
sleeping until they are
awaken, and the youth until
they reach pu-
berty." [Ahmad, Abu Daud
and al-Tirmidhi]

The above hadith makes it

clear that a person, who has
not attained the age of pu-
berty , may not be a respon-
sible party for al-qard al-
hasan transaction.

b. Ijab (offer) and qabul

(acceptance) of the qard
must be clearly made before
entering into the loan con-

SFMagazine 11 25
 tract
All four schools of thoughts agree upon that ijab and
qabul should be clearly indicated in the contract, oth-
erwise, the loan contract may create dispute in fu-
ture. In the loan agreement, there should have clear
expression, collation and conjunction of the ijab and
qabul between the parties.
c. The date of payment must be specified:
It is also agreed among the Muslim jurists that the
date of payment should be mentioned in the loan
agreement. If no date is specified, the transaction
may lead to ambiguity and dispute in future among
the lender and the borrower.
It was based on the loan agreement of the Prophet's
(s.a.s) companions. When the Prophet (s.a.s) mi-
grated to Madinah, he was informed that contracts of
salam were made without stating specified time or
amount, then the Prophet (s.a.s) said, "Whoever en-
ters into a contract of salam should specify the date
of delivery and the amount of subject matter."
d. The loan contract should be written down.
This ruling is based on a Qura'nic injunction. As Allah
(s.w.t) says; "O you who believe! when you deal
with each other in transactions involving fu-
ture obligations for a fixed period of time re-
duce them in writing." [Al-Baqarah (2): 282]
Muslim jurists, however, differ on this condition. Ma-
jority of the Muslim jurists opine that it is not obliga-
tory but strongly recommended. The reason given
by them is that if both parties agree not to write,
then it is no longer an obligation upon them to write
down. The wisdom behind the writing down is to
avoid future dispute. On the contrary, minority of the
Muslim jurists like al-Tabari are of the opinion that it
g.
is obligatory upon the parties to write down the con-
tract. It is submitted that the majority's stand seems
more reasonable as they have given the option upon
the parties whether to write down or not.
e. Getting two witnesses.
The Qura'nic injunction is that there must have two
male witnesses, if two men are not available, then
one man and two women will have the same effect.
As the Qur'an says: "And get two witnesses out
of your own men and if there are not two men,
then a man and two women." [Al-Baqarah (2):
282]
It is very essential for the loan contract to be com-
plied with this Qura'nic requirement to avoid future
disputes.
f. Administrative fee / Service charge:
A question may arise whether a charge of admini-
stration fee is allowed in Shari'ah and if yes, how
much will be the charge. Now, it is a settled issue
among the Muslim jurists that administrative fee or
service charge for loan transaction is not against
Islamic principles.
Dr. Irfan Ul Haq in his Ph.D. dissertation entitled,
"Economic Doctrines of Islam" mentioned that "
26 SFMagazine 11
Banks are permitted to charge a minimum service
fee to cover the cost of administrative fee". Accord-
ing to S.H. Amin, "Some charges are in fact legiti-
mate fees and not interest by any standards but
sometimes the line is hard to draw. For instance in
Islamic law payment of expenses may be allowable if
the fee is attributable to some identifiable out of
pocket expense such as lawyer's fees but not gen-
eral overheads of the bank." He further mentioned
that to obtain some compensation for offering al-
qard al-hasan facilities, the banks demand some
charges and fees. These expenses incurred by banks
on providing al-qard al-hasan are collected from the
borrowers and the basis for the calculation of these
expenses are laid down by the central bank.
In an article entitled "Islamic Banking for Social Jus-
tice" M. Azizul Huq, an executive vice president of
Islamic Bank Bangladesh, said, "The Shari'ah does
not permit and Islamic banks do not receive any in-
come from interest-free loaning investment. The
lending banks can, however, recover their adminis-
trative cost directly related to the investment as
service charge. Islamic Development Bank Jeddah
recovers service charge 2% to 3% on interest free
loans. Alternatively, the cost can be reimbursed by
third parties or the government. In Pakistan, the cost
of interest for rural lending is reimbursed to the
bankers by the government."
So, if al-qard al-hasan is given by any bank or other
institutions, they may require service charge or ad-
ministrative fee. However, there is no scope for an
individual lender to demand this charge unless any
amount incurred due to procedural requirements of
the loan agreement, such as lawyer's fee, stamp
duty etc.
Extra Payment:
It is very clear that in the loan agreement, there will
be no condition for extra payment, otherwise, it will
be riba . It is however, advisable for the debtor to
give some sort of gift to the creditor as a sign of ap-
preciation of his voluntary deed. In a hadith, Jabir bin
Abdullah (R) reported that I had the right (of loan) on
the Messenger of Allah, he had settled it and made
additional payment to me. Again Abu Rafi' reported
that the Prophet (saw) had borrowed a young female
camel from someone and when he received zakat of
camels, he ordered me to send a young female
camel to the man as settlement of the loan. I said to
him, "I could not find among the camels except a
female camel which is ready for pregnancy". The
Prophet (s.a.s) said, "give it to him, indeed, the good
person among you is he who settles loan with some-
thing better." [al-Muwatta of Imam Malik].
The statement "every loan which draws benefit is
riba" is in fact not a hadith of the Prophet (saw) ac-
cording to the hadith scholars as there is a doubt of
its chain of narrators. Moreover, Muslim jurists have
various opinions relating to extra payment over loan.
The Hanafi, the Shafi'e and the Hambali's stand is
that every loan with profit is forbidden if the profit is
 stipulated in the loan agreement, otherwise, the
profit is permitted. According to Malikis, the bor-
rower may pay more than the capital quantitatively
or qualitatively at the time of the settlement of the
loan provided that the loan was used for commercial
purpose. They restricted the extra benefit from the
loan if it was used for consumption purpose.
Indeed, the majority's view is more reasonable, it is
up to the loanee whether to pay extra or not, regard-
less the loan was for consumption or commercial
purpose. The only restriction is that there should not
be any stipulation for extra benefit in the loan agree-
ment.
h. Early demand to pay back:
Loan is a voluntary act by the creditor. However, it is
not encouraged for early demand to pay back the
loan from the debtor. In the Holy Qur'an Allah says,
i. O you, who believe, fulfil your contract. [Al-
Maidah (5):1]
i.
changes halal into haram or haram into halal." [Al-
Muatta of Imam Malik]
The Qur'anic and the Hadith injunctions indirectly
provide that the creditor should not demand the loan
amount from the debtor before the agreement ma-
tures or lapses. Muslim jurists, however, have given
different views on this matter. According to the
Shafi'e and the Hambali jurists, the creditor can de-
mand the settlement from the debtor before the
expiry period as he wishes. They have given the rea-
son that the loan is voluntary and it can not compel
any party to abide it. The Hanafi and the Maliki ju-
rists, on the contrary, are of the views that the credi-
tor can not demand the loan amount back until the
time for settlement mature. Their reason is the
above stated hadith of the Prophet (s.a.s).
It is submitted that the latter view is more reason-
able as being beneficial to the creditor and should
be accepted.
Guarantors:
In the case of the al-qard al-hasan, there can be
guarantors. The guarantors of the borrower may be
any person or the property of the loanee that is col-
lateral security, such as, mortgage, charge etc. In
case of the borrower's failure to pay back the loan
after the expiration of the time specified, his guaran-
tor has to pay or the collateral security is to be val-
ued for the repayment of the loan. But, Muslims
should remember that a true believer should not
delay to pay back his obligations. As the Prophet
(s.a.s) said, "Deliberate delay of a rich borrower to
settle the loan is injustice." [Sahih Bukhari & Muslim]

Islam attempts to establish justice and eliminate exploita-

tion in the society and prevents the accumulation of
wealth in the hands of few people. Islam, therefore, abso-
lutely prohibits riba as it is the root of all injustice in the
human society. Al-qard al-hasan, on the contrary, being
an interest free loan for humanitarian and welfare pur-
pose may ensure the proper movement of wealth
amongst all classes of people in the society. That is why,
the Qur'an and the Sunnah have much appreciated and
encouraged for the implementation of al-Qard al-Hasan in
the Muslims society.

ii. And fulfil your covenant, for every cove-

nant will be inquired into. [Al-Isra (17):34]

iii. Then for having broken their covenant, We

rejected them and caused their hearts to
harden. [ Al-Maidah (5):13]

iv. And so (We punish them) for the breaking Mohammad Delwar Hossain
of their covenant. [Al-Nisa (4):155]
Islamic Banking Expert
In a hadith the Prophet (s.a.s) said, "Muslims are
bound by their conditions except a condition that

SFMagazine 11 27
 International Relationships

The assertion of non-western modernities

The various geopolitical configurations of the world each produce a dominant

discourse. During the period of ideological rivalry between the two superpow-
ers, the choice was between westernization or, alternatively, sovietization, with
a reluctant Third World in between. Since the implosion of the Soviet empire
and China's entry in the international market, the "assertive" cultures and re-
ligions are the ones who find themselves in trouble. The pressure of global
standardization exercised by the sole superpower and the prevailing view of
neoliberal globalization have produced identity countercurrents. In the large
cultural areas of the world - China, India, Africa and Islamic lands - ground
swells surge to oppose the standardizing pressure, in favour of the right to au-
thenticity and difference. The most striking example is China, a colossus of 1.3
billion inhabitants, which achieved the highest rate of growth in the world dur-
ing the last twenty years through a strategy of openness, modernization and
internationalization which is quite different from the western model. The so-
called socialist government, while controlling the project, combines an authori-
tarian one-party state and a network of multinationals that bring hefty invest-
ments and technology. With its low-cost exports and the enormous surplus of
its commercial and financial deficit with the United States, China has already
become a driving force of the world economy. In India, the strategy centred on
the creation of niches of sophisticated technology
is more autonomous. And its modernization is
more democratic than that of China, in accor-
dance with its multicultural genius for synthesis.

Islamic views on In Malaysia, a new unified wave of Islam supports

a remarkable economic dynamic. During the
1990s,, multiple trajectories of non-western mod-
ernization emerged, even in Latin America where

globalization the postmodernist current is proudly called mod-

ernidad periférica. Thematic areas and texts
about the various possible angles on this subject
are increasingly debated in conferences through-
By Prof. Louis Baeck out the world. In the Muslim world, since the end
of the 1990s, seminars and conferences in Beirut,
Cairo, Damas, Rabat, Lahore and Kuala Lumpur
on globalization's issues and global governance have taken place. Multiple
Internet networks have spurred transnational contacts; they act as opening
catalysts in circles that had until recently been closed or had existed in an eth-
nic, cultural and religious cleavage. Clicking on the heading "liberal Islam"
leads to some forty sites of Muslim intellectuals of international reputation.

From the point of view of western neoconservative or fundamentalist commen-

tators who are influential theorists of the prevailing discourse, these multiple
ways of asserting identities will inevitably lead to a clash of civilizations. From
a hegemonic perspective, Western publicists judge the policies and practices of
other civilizations on the basis of principles and ideals prevailing in the western
world. According to this method, the non Western cultures are judged accord-
ing to criteria which are not theirs. We would like to reverse this trend so that
we may listen to Muslim intellectuals and understand, especially on the chal-
lenges that globalization represents for them. In spite of well-known differ-
ences between fundamentalist, liberal and innovative thinkers, they are com-
monly critical of our practices in the field of global governance. They consider
that our principles are not universal and moreover not convincing. Indeed,
some of the ideals we present as the most important appear to them as tram-
pled and disavowed by our neo-colonialist behaviour.

To open this intercultural dialogue, it will be necessary to critically assess not

only the thoughts and the prejudices of the others but ours as well, accepting

SFMagazine 11 29
the test of contradiction wherever it may come from. Dia-
logue implies that everyone can present his argument
while listening to the Other.
The historical trajectory of Islam
From the eighth to the fifteenth century, Islam was at the
core of the dominant cultures and peoples which pre-
vailed in the Mediterranean area : Arabs, Persians and
invaders coming from Asia such as the Turks and Mon-
gols. During this period, Islamic culture deployed its
splendour and was hegemonic in the Mediterranean ba-
sin, reaching as far as Spain. Its scholars picked up where
the Western world left off: Greek philosophy, mathemat-
ics, the beginnings of medical science, and numerous
technologies for irrigation, agriculture and architecture.
These transfers accelerated our take-off in the 11th and
12th century. Then came the decline. One of the great
Maghreb masters, Ibn Khaldoun (1332-1406) theorized
the causes of the decline in his historical work Muqadim-
mah. Later, stagnation in the material sense and in the
intellectual sphere brought political colonization as well as
grudgingly adopted modernization. The movement of re-
form (nahda) at the end of 19th century did not hold its
promises because it was not supported by the masses
that remained anchored in tradition. Decolonization
brought to the Islamic world its share of more or less au-
thoritative governments. Currently, there are some 1.3
billion Muslims dispersed in about fifty nation-states
around the world. OPEC's oil crisis marked the first divide.
And the Ayatollahs' Iranian revolution started a trend in
which religion and culture override imported seculariza-
tion and models. In the wake of this spiritual and political
revolution, the Muslim world was vivified by a movement
of cultural and religious revival : Al sahwa Al islamiyya. In
the large, diverse Islamic world (Arab, Asian, African, and
the diaspora with its numerous Muslim intellectuals and
university professors), it is impossible to give due place to
the complex dynamics which animate these cultural areas
with their different schools of fiqh and theology. The lead-
ers of a cultural Islam (Al Islam hadari) have become
more influential than the protagonists of the Islamic state.
In spite of an enormous financial support for Saudi
Wahhabite fundamentalism, liberals and innovators gain
ground in most areas. However, fundamentalists received
a gift from heaven when the American army, supported
by some Western forces, invaded and occupied oil-rich
Eurasia. Muslims who were sympathetic to the Western
culture were not rewarded. Even sympathizers disapprove
of democracy when it is imposed by foreign military force
like a suppository. Imposed westernization hurts national-
ism and national pride and consequently works like a con-
traceptive.
Debates on globalization build on those of modernization,
however they are more about geopolitics and strategies
for economic development.
The culturalist and religious debate
A great number of Muslims see globalization (Al aulama)
as an elegant neologism which hides reality; they see
30 SFMagazine 11
globalisation as a powerful lever for westernization (Al
taghrib) whereas pro-Westerners favour it and see as a
highway to modernity. Fundamentalists demonize global-
ization as an invasion and even as cultural rape. They
argue that Western mass-industry (pop art, cinema, tele-
vision and other media, consumerism, Mc World, etc)
brings perversion through seduction. Secularization pre-
sented by Westerners as liberating in fact destroys the
canonical hierarchy of values where religious morals con-
trol the social, economic and political processes. Seculari-
zation is perceived as a lever to push religion out of the
public sphere. Its purely instrumental rationality deprives
life of its fundamental dimension. In the Western world,
demystification or desacrilization led to dechristianization.
Churches are empty. Structuring principles no longer
guide fundamental values. Culture becomes merchandise
and values (including economic morals) dissolve. While
reading fundamentalist texts, the learned reader has
sometimes the impression they are hearing the great
master of Western rationalization, Max Weber, discussing
the other side of modernity: disenchantment of the world,
loss of direction as a result of secularization.
On the other hand, liberals and innovators underline the
obsession of the fundamentalists for models of the past.
Admittedly, cultural heritage is a value but it should not
function as an obstacle to the present. All cultures have a
dynamic which takes in external elements and contribu-
tions. Islam cannot paralyse itself through excessive glori-
fication of past values. Each culture like each religion has
appeared in the world at a historical moment and in a
particular cultural context. Thus, innovators say, our cul-
ture like our religion must evolve in order to serve as an
existential anchor for the faithful who wish to progress in
their historical trek. According to these new scholars, Is-
lam must be situated in history, just like Western culture
that proclaims itself universal. The evolution of the West-
ern world, its secularization and particularly its
economism (priority given to material development) must
be understood within the framework of its particular his-
torical course. Viewed as a product of history, the West-
ern world has moved away from models that are more
grounded in the human tradition of the long term. Thus it
became the exception and cannot aspire to universality.
Our postmodernists (Lyotard, Derrida, Foucault) have also
deconstructed the myth of universalism, of the isms of
modernity through the recognition of difference, specific-
ity and endogeneity.
The Muslim revival thus tends to outfit imported models
with its own intellectual productions,, especially in the
social sciences. Great intellectual centres are reformulat-
ing economy, sociology and political science in new terms
on the basis of the Islamic system. However transition to
Western modernity rests on the critique of traditional
knowledge and the evacuation of religious morals. This
model of secularization implies autonomy in the spheres
of knowledge and life in accordance with their own valida-
tion and operational processes. Through this evolution,
politics, society and economy free themselves from the
religious morals by which they were governed. Without of civilization. Their writings laden with principles of social
structural regulation, conflict between these spheres of ethics support the harmonious development thesis. In this
values is unsolvable, say even the innovative Muslims. way, they come close to some Western reformers, such as
Indian Amartya SEN and also the inspirers of the Kyoto
But a group of new scholars of international reputation
school, notably Yasusuke Murakami. A comparison of
plead for a religion that is not subdued to jurisprudence
Asian and Islamic courses of action is all the more inter-
(fiqh). They contend it should open the way to hermeneu-
esting because modern Malaysian Islam has played an
tic debates (ijtihad) in order to reconcile the spiritual
important role in the economic success of this country.
foundations of religion, its existential value, and its contri-
This is partly due to Mohamed Mahathir who was during
bution to the future of umma. A religion that mingles con-
12 years (1981-1993) its bold Prime Minister. As an enthu-
stantly with turmoil and the variations of day-to-day politi-
siastic Muslim, he associated Islamic masters to the doc-
cal options becomes an ideology and loses its transcen-
trinal framing of his development strategy. Some innova-
dental substance. Intense and profound thematic topics
tors of the Arab world, like Hassan Hanafi, see the mod-
reflect the cultural creativity and theological renewal that
ernized Islam of Malaysia as a model.
has arisen through the debate on globalization. The Mus-
lim world very strongly resents the militarization of inter- Conclusion
national relations which touched on aspects of its histori-
In spite of the constraints exerted by global governance, a
cal splendour. For them, the globalization process seems
counter-current exemplifying courses of non-Western
to be pushed less by an earnest care for democracy and
modernization is shamelessly emerging. In order to un-
development than guided by material interest.. A Muslim
derstand correctly these trends and perspectives from
is deeply stung when he feels he is being "bedouïnized"
inside, a recommended method is to read and to analyse
by an arrogant Westerner.
their intellectuals' writings and publicists' writings. If one
Economic analysis of geopolitics is uninformed of ongoing controversies and trends as they
are viewed from inside, one cannot understand the real
In the view of publicists writing from an economic per-
situation. Western analysts are often blamed for reading
spective, the geopolitics of security is a project imagined
only western scholars and for ignoring or neglecting in-
and directed by the Western world to ensure its vital raw
digenous sources even on issues such as globalization. If
materials supply (such as oil) and to retain its capacity to
this debate is to become really a dialogue with multiple
attract world savings towards Western financial markets.
voices on world issues and the future, it must not shun
Wall Street is the epicentre of the recycled savings of the
but rather include the views of Others.
whole world which serve to finance deficits in the US
trade balance and American public sector deficits. In or-
der to control the rate of the dollar and thus world trade,
it is vital to control oil reserves on which competitors
(Japanese, Chinese, Europeans) are even more depend-
ent. Global governance produces a view and a strategy of
development that suits Western needs as a whole, includ-
ing also Europe. These strategies of development are
passed down to staff and think tanks associated with the
institutions with economic capacity such as the World
Bank and the International Monetary Fund. In order to
allow them to impose their discipline (by punishing the
uncooperative through the Malthusianism of loans and
privilege for those that yield to structural adjustment),
their financial means and their capacity of intervention
have become considerable. While researching on the Chi-
nese course of action, I read similar critical analyses. In
China, the questioning of global governance is formulated
by the intellectuals of the New Left and the militants of
cultural nationalism (cf analysis of Wang Hui, Liu Kang
and Zheng Yongnian).

But criticism of consumerism is absent from Chinese dis- Prof. Louis Baeck
course, while it is very present in Muslim publications that Is Professor of International Economics and
recommend a reserved attitude towards consumption. Development at the Catholic University of
Leuven (Belgium). He is also administrator
From a planetary perspective, the Western consumerist of the Belgium University Foundation.
model is a false utopia, because it is impossible for the
Western model of consumption to apply to the 6.5 billion
inhabitants of the world without bringing about an eco-
logical explosion. For innovators, development is a project

SFMagazine 11 31
 Sharia principles and rules

Zakah has been an integral part of all prophetic religions. All of the prophets
exhorted their followers to pay zakah.[1] The Old and New Testaments contain
various verses that encourage the followers to spend on the welfare of the
poor and needy.[2] Although Old and the New Testaments do not indicate any
fixed heads of expenditure for zakah, the Quran has fixed it heads of expendi-
ture of zakah which is mentioned in the following verse:

Alms are for the poor and the needy; and those employed to
administer the (funds); for those whose hearts have been
(recently) reconciled (to truth); for those in bondage and in-
debt; in the cause of Allah; and for the wayfarer. (Thus it is)
ordained by Allah. (9:60)

By fixing the heads of expenditure of zakah Islam has minimized the possibility
of misuse of fund from the rulers and individuals. The primary goal of zakah is
to ameliorate the living conditions of the poor and the needy. In the above
verse the priority has been given to poor and needy. This is inferred from the
fact that the heads of the poor and the needy have been mentioned in the very
beginning. According to the principles of Arabic usage the most important
things are mentioned first.[3] The priority of the upliftment of the poor and the
needy through zakah is also evident from Prophetic traditions (ahadith). In or-
der to assess the role of zakah in human development, an analysis of its heads
of expenditure is given below.

Zakah 1. The Poor and the Needy

The first head of expenditure of zakah is the poor

and the needy. In Islamic jurisprudence there are

a priority for different opinions on the criteria of the poor and

the needy. According to Hanafi jurisprudence fol-
lowing types of persons are eligible to benefit

poor and needy from zakah:

Those who have nothing for their subsistence

and basic necessities of life.
By Abu Shariq

Those who own a house, furniture, means of
conveyance etc., but can hardly afford their daily
needs.

Those whose wealth is less than nisab (the minimum wealth on which
zakah is payable).[4]

But according to Shafai, Hambali and Maliki jurisprudences that nisab wealth is
not the criterion of richness and poverty. It depends on the condition whether a
person is able to meet his basic requirements or not. On this criterion the poor
and the needy are those who have no sufficient amount for their subsistence
and their dependents. They have also not the opportunity of employment ac-
cording to their status through which they can earn their living. In other words
the person who has wealth more than nisab but is unable to meet his basic
necessities and his dependents can be considered as the poor.

In Hanafi school of jurisprudence the person who has wealth equivalent to ni-
sab cannot receive zakah. In other words the person who pays zakah cannot
take it. According to Maliki, Shafai, Hambali schools of jurisprudence, if a per-
son earns according to his need, he cannot avail of zakah whether he owns
anything or not. If he is unable to earn according to his needs he will be eligible
to take zakah even if he owns a furnished house and conveyance etc. Accord-
ing to Shafai and Maliki jurisprudence, richness and poverty will be determined
on the basis of whether a person is able to manage basic necessities of life for
him and his dependents or not.

32 SFMagazine 11
In the light of the above discussion we can say that, ac-
cording to a majority of the fuqaha (imams of Islamic ju-
risprudence), if a person has wealth that constitutes nisab
or is more than that but is not enough to fulfill his basic
needs and those of his dependents, can avail of zakah.
This implies that a person can benefit from zakah only if
he has no opportunity to work according to his qualifica-
tion and status and earn sufficient amount to support his
family.
From the above discussion it becomes clear that the pur-
pose of zakah is to ensure such a living for the poor and
the needy as is appropriate to the general standard of
living. Islam does not compel its followers to sell-off their
property to meet basic requirement of life but urges afflu-
ent people to come forward and provide them social secu-
rity at the time of distress. Accordingly, in the distribution
of zakah preference should be given to self respecting
people over the professional beggars, as indicated in the
Quran.[5] There are two types of the poor and the needy.
First, those who can earn their livelihood like craftsmen,
traders, farmers etc. but they have not enough resources
to start work. They can be helped by zakah to make them
self-reliant. Second, those who cannot earn their living
due to some handicap like the blind, the elderly, widows
and orphans. For this type of the needy, the financial as-
sistance by zakah can be given annually or on monthly
basis according to their exigencies and convenience.
Further, Islam takes into consideration natural require-
ments of man other than food, shelter, and clothing. Ac-
cordingly, students, researchers, and scholars can also be
helped by zakah if they are unable to continue their work
due to financial constraints. Similarly, those who cannot
marry due to financial constraints can also be helped by
zakah. In Islam the poor and needy have not been left at
the volition of the affluent but provided an institutional
arrangement of social security.
2. Administrators of Zakah Fund (Amilin)
The verse specifying the heads of expenditure of zakah,
mentions administrators of zakah just after the poor and
the needy. This shows that Islam prefers an organized
system of zakah for social justice. The collection and dis-
tribution of zakah is the state’s responsibility, but in the
absence of the Islamic state the Muslim society must
have institutionalized system of zakah.
3. Muallafah al-Qulub
The main purpose of this head of expenditure is to help
the men and women who have been weaned from hostil-
ity to Islam, who would probably be persecuted by their
former associates, and require assistance until they es-
tablish new connections in their new environment. This
head of zakah is relevant particularly in societies where
Muslims are a minority. Some of the very prominent
ulama hold that this head of expenditure can only be
managed by an Islamic state.[6] But this is a matter open
to ijtihad and Muslims can pick and choose from varied
views of the independently thinking fuqaha, according to
the suitability of the views to their environment.
4. Freeing of Slaves (Fi al-Riqab)
It is a widely held view that Islam stopped short of closing
the door of taking slaves through war. The Quran men-
tions the model conduct for the Islamic state towards the
war captives. The Quran says that they should either be
released generously or for a ransom:
It is not fitting for a Prophet that he should have
prisoner of war until he hath thoroughly sub-
dued the land. Ye look for the temporal goods of
this world; but Allah looketh to the Hereafter:
And Allah is Exalted in might, Wise (8:67).
Therefore, when ye meet the unbelievers (in
fight), smite at their necks; at lenth, when ye
have thoroughly subdued them, bind (the cap-
tives) firmly: therefore (is the time for) either
generosity or ransom: until the war lays down
its burden. (47:4)
Islam took various measures for uprooting the system of
slavery. Apart from exhorting Muslims towards generous
treatment and voluntarily freeing of slaves, it has fixed a
permanent head of zakah to be used for securing free-
dom of slaves. In modern times this head of zakah can be
spent in securing the release of innocent people unjustly
captivated by the government. A special beneficiary of
the head under discussion can be Muslims minorities liv-
ing amid hostile majorities.
5. The Indebted (Gharimin)
Islam encourages Muslims to give interest free loans to
their fellow humans. At the same time it urges creditor to
grant time to debtor until his economic condition be-
SFMagazine 11 33

comes better. In Islam waiving off the debt is the most
admirable act of virtue on the part of creditors.[7]
Moreover, Islam has fixed one of a head of zakah for debt-
ors, alive or deceased. If a person cannot pay his debt by
his own earning he will be helped by zakah fund. Islam
does not ask the debtor to sell off his property to pay off
his debt but ensures the payment of the debt through
zakah. The debtor can be the owner of all basic amenities
of life. The only condition is that the debtor must have
taken debt for basic necessities sans extravagance. Some
scholars are of the opinion that interest free loans can be
given by zakah for making the small-time but, most often,
skilled debtors self reliant so as to pay off their dues. In
this way, they hold, the benefits of this head of zakah can
be multiplied in favour of future candidates. This arrange-
ment of paying debt on behalf of debtor saves him from
dishonour and the assurance of recovery reinforces the
social practice of charitable loaning.
usage and applicable also in the context of the verse con-
cerning heads of expenditure of zakah, is jihad.[8]
7. Wayfarer (Ibn as Sabeel)
The system of zakah also takes into consideration ad hoc
needs of individuals. The Quran invariably encourages
people for globetrotting for various purposes.[9] As the
wayfarers may face various problems during their jour-
ney, the Quran, at many places, urged Muslims to take
care of wayfarers or travelers’[10] and also fixed a head
of zakah for them. From this head the funds can be used
for the construction of musafir khanas (inns) and provid-
ing other facilities to travelers.

Some ulama include among the beneficiaries of this head,

persons who become debtors in the process of making
compromises between two conflicting parties/tribes. In
modern context, those engaged in social work can be
treated as beneficiaries of this head of zakah if they, in
the process of their work, turn into debtors.

6. In the way of Allah (Fi Sabilillah) Abu Shariq

Literally, fi sabilillah means in the way of Allah. It is a Islamic Banking Expert

Quranic term used largely in the context of defense. The
prominent meaning of this word, according to the Quranic

34 SFMagazine 11
 Islamic Culture

Ibn Khaldun is universally recognized as the founder and father of Sociology

and Sciences of History. He is best known for his famous
'Muqaddimah,' (Prolegomena). Abd al-Rahman Ibn Mohammad, generally
known as Ibn Khaldun after a remote ancestor, was born in Tunis in 732 A.H.
(1332 C.E.) to an upper class family that had migrated from Seville in Muslim
Spain. His ancestors were Yemenite Arabs who settled in Spain in the very be-
ginning of Muslim rule in the eighth century.

During his formative years, Ibn Khaldun experienced his family's active partici-
pation in the intellectual life of the city, and to a lesser degree, its political life.
He was used to frequent visits to his family by the political and intellectual
leaders of western Islamic states (i.e., North Africa and Spain), many of whom
took refuge there. Ibn Khaldun was educated at Tunis and Fez, and studied the
Qur'an, Prophet Muhammad's Traditions and other branches of Islamic studies
such as Dialectical theology, shari'a (Islamic Law of Jurisprudence, according to
the Maliki School). He also studied Arabic literature, philosophy, mathematics
and astronomy. While still in his teens, he entered the service of the Egyptian
ruler Sultan Barquq.

Ibn Khaldun led a very active political life before he finally settled down to
write his well-known masterpiece on history. He worked for rulers in Tunis and
Fez (in Morocco), Granada (in Muslim Spain) and Biaja (in North Africa). In
1375, Ibn Khaldun crossed over to Muslim Spain
(Granada) as a tired and embittered man solely
for the reasons of escaping the turmoil in North
Africa. Unfortunately, because of his political past,
the ruler of Granada expelled him. He then went
back to Algeria to spend four years in seclusion in
Qalat Ibn Salama, a small village. It was in Qalat

Ibn Khaldun he wrote Muqaddimah, the first volume of his

world history that won him an immortal place
among historians, sociologists and philosophers.
The uncertainty of his career continued because
of unrest in North Africa. Finally, he settled in
Egypt where he spent his last twenty-four years.
Here, he lived a life of fame and respect, marked
by his appointment as the Chief Malakite Judge.
He also lectured at the Al-Azhar University.

Ibn Khaldun had to move from one court to another, sometimes at his own will,
but often forced to do so by plotting rivals or despotic rulers. He learnt much
from his encounters with rulers, ambassadors, politicians and scholars from
North Africa, Muslim Spain, Egypt and other parts of the Muslim world.

Ibn Khaldun is most famous for his book 'Muqaddimah' (Introduction). It is a

masterpiece in literature on philosophy of history and sociology. The main
theme of this monumental work was to identify psychological, economic, envi-
ronmental and social facts that contribute to the advancement of human civili-
zation and the currents of history. He analyzed the dynamics of group relation-
ships and showed how group feelings, al-'Asabiyya, produce the ascent of a
new civilization and political power. He identified an almost rhythmic repetition
of the rise and fall in human civilization, and analyzed factors contributing to it.

Ibn Khaldun's revolutionary views have attracted the attention of Muslim schol-
ars as well as many Western thinkers. In his study of history, Ibn Khaldun was a
pioneer in subjecting historical reports to the two basic criteria of reason and
social and physical laws. He pointed out the following four essential points in
the study and analysis of historical reports: (1) relating events to each other
through cause and effect, (2) drawing analogy between past and present, (3)
taking into consideration the effect of the environment, and (4) taking into con-

36 SFMagazine 11
sideration the effect of inherited and economic conditions.
Ibn Khaldun's pioneered the critical study of history. He
provided an analytical study of human civilization, its be-
ginning, factors contributing to its development and the
causes of decline. Thus, he founded a new science: the
science of social development or sociology, as we call it
today. Ibn Khaldun writes, "I have written on history a
book in which I discussed the causes and effects of the
development of states and civilizations, and I followed in
arranging the material of the book an unfamiliar method,
and I followed in writing it a strange and innovative way."
By selecting his particular method of analysis, he created
two new sciences: Historiology and Sociology simultane-
ously.
Ibn Khaldun argued that history is subject to universal
laws and states the criterion for historical truth: "The rule
for distinguishing what is true from what is false in history
is based on its possibility or impossibility: That is to say,
we must examine human society and discriminate be-
tween the characteristics which are essential and inherent
in its nature and those which are accidental and need not
be taken into account, recognizing further those which
cannot possibly belong to it. If we do this, we have a rule
for separating historical truth from error by means of de-
monstrative methods that admits of no doubt. It is a
genuine touchstone by which historians may verify what-
ever they relate."
Because of his emphasis on reason and its necessity in
judging history and social events, some scholars have
claimed that Ibn Khaldun tried to refute conventional reli-
gious knowledge and substitute for it reason and rational
philosophy. This claim is unfounded. It is known that some
schools teach things which are irrational in nature. But
this is not true of Islam which has always encouraged ob-
servation and thinking, and reminded the nonbelievers for
not using their reason and thinking. An example is the
Verse 164, Chapter 2 of the Qur'an: "Behold! In the crea-
tion of the heavens and the earth; in the alternation of
the night and the day; in the sailing of the ships through
the ocean for the benefit of mankind; in the rain which
God sends down from the skies; and the life which He
gives therewith to an earth that is dead; in the beasts of
all kinds that he scatters through the earth; in the change
of winds and the clouds which they trail like slaves be-
tween the sky and the earth; - (here) indeed are signs for
people that are wise and think." Qur'an 2:170: "When it is
said to them: "Follow what God hath revealed." They say,
"Nay: We shall follow the ways of our fathers." What!
even though their fathers were devoid of wisdom or rea-
son and guidance?"
Ibn Khaldun remarked that the role of religion is in unify-
ing the Arabs and bringing progress and development to
their society. He pointed out that injustice, despotism,
and tyranny are clear signs of the downfall of the state.
Ibn Khaldun points out that metaphysical philosophy has
one advantage only, which is to sharpen one's wits. He
states that the knowledge of the metaphysical world par-
ticularly in matters of belief can only be derived from
revelation.
He was a pioneer in education. He remarked that suppres-
sion and use of force are enemies to learning, and that
they lead to laziness, lying and hypocrisy. He also pointed
out to the necessity of good models and practice for the
command of good linguistic habits. Ibn Khaldun lived in
the beginning period of the decline of Muslim civilization.
This experience prompted him to spend most of his ef-
SFMagazine 11 37
forts on collecting, summarizing and memorization of the
body of knowledge left by the ancestors. He vehemently
attacked those unhealthy practices that created stagna-
tion and stifling of creativity by Muslim scholars.
Ibn Khaldun emphasized the necessity of subjecting both
social and historical phenomena to scientific and objective
analysis. He noted that those phenomena were not the
outcome of chance, but were controlled by laws of their
own, laws that had to be discovered and applied in the
study of society, civilization and history. He remarked that
historians have committed errors in their study of histori-
cal events, due to three major factors: (l) Their ignorance
of the natures of civilization and people, (2) their bias and
prejudice, and (3) their blind acceptance of reports given
by others.
Ibn Khaldun pointed out that true progress and develop-
ment comes through correct understanding of history,
and correct understanding can only be achieved by ob-
serving the following three main points. First, a historian
should not be in any way prejudiced for or against any
one or any idea. Second, he needs to conform and scruti-
nize the reported information. One should learn all one
38 SFMagazine 11
could about the historians whose reports one hears or
reads, and one should check their morals and trustworthi-
ness before accepting their reports. Finally, one should
not limit history to the study of political and military news
or to news about rulers and states. For history should in-
clude the study of all social, religious, and economic con-
ditions.
The Muqaddimah was already recognized as an important
work during the lifetime of Ibn Khaldun. His other volumes
on world history Kitab al-I'bar deal with the history of Ar-
abs, contemporary Muslim rulers, contemporary European
rulers, ancient history of Arabs, Jews, Greeks, Romans,
Persians, Islamic History, Egyptian history and North-
African history, especially that of Berbers and tribes living
in the adjoining areas. The last volume deals largely with
the events of his own life and is known as Al-Tasrif. As
with his other books, it was also written from an analytical
perspective and initiated a new tradition in the art of writ-
ing autobiography. He also wrote a book on mathematics
which is not extant.
Ibn Khaldun's influence on the subject of history, philoso-
phy of history, sociology, political science and education
has remained paramount down to our times. He is also
recognized as the leader in the art of autobiography, a
renovator in the fields of education and educational psy-
chology and in Arabic writing stylistics. His books have
been translated into many languages, both in the East
and the West, and have inspired subsequent development
of these sciences. Prof. Gum Ploughs and Kolosio consider
Muqaddimah as superior in scholarship to Machiavelli's
The Prince written a century later, as the former bases
the diagnosis more on cultural, sociological, economic
and psychological factors.
 Islamic Architecture

Certain architectural features have become fixed and eternal. In this modern
world, they help us find our architectural roots and remain true to our identity.

Almost every architectural structure addresses, in a direct sense, cultural iden-

tity and philosophy within a physical context.

If we want to understand, appreciate, and evaluate the architectural quality of

a building, we need to develop a sense of dimension, topography, climate, ma-
terial, structure, and proportion, and of the surrounding physical environment -
- both natural and human-made. This sense goes far beyond the building's abil-
ity to serve utilitarian needs.

The Islamic world -- and the Middle East in particular -- is undergoing a trans-
formation today unprecedented in its history, writes architect Garry Martin in
the essay "Building in the Middle East Today -- in Search of a Direction." Oil
wealth, along with social and political change, have threatened Islamic culture
and traditions. This identity crisis is readily apparent in architectural design.

A desire for rapid development, Martin notes, brought to the Middle East the
massive importation of Western technology, planning, design and construc-
tional expertise. Many of the new buildings in the Middle East, continues Mar-
tin, are direct imitations of Western models that were designed for another
culture -- and they are creating an alien environment in Islamic communities.

Many Muslim planners and architects are reacting

The future of to this invasion of Western culture by reasserting

their Islamic heritage. This leads to the questions
of just what constitutes Islamic architecture!!!
Central to this definition, Martin explains, is the

Islamic Islamic concept of Unity. Writes Martin:

"The concept of Unity in multiplicity is the deter-

mining factor in integrating Islamic societies. His-

architecture
torically the revelation of Islam as expressed by
the prophet Mohammed and the Holy Koran
brought together the most diverse cultures and
peoples from Spain across to India and beyond.
The architecture of the Islamic world throughout
history adapted and responded to different cul-
tures and existing traditions of buildings without weakening the spiritual es-
sence which was its source of inspiration. Urban centers in Islamic cities
evolved over long periods of time with generations of craftsmen whose sensi-
tivity and experience added variety and a diversity of styles to the environ-
ment. The traditional Islamic city reflected a unity which related the architec-
ture of the mosque, the madrassa , the souq, palace and the home as a se-
quence of spaces... The identity of the city lay in the relationship of its ele-
ments. These relationships were generated by the harmonizing of the commu-
nity with the forces acting on it, that enabled the interaction of cultures, build-
ing methods and methods to evolve an Islamic identity in the same way a lan-
guage maintains its own identity even when it absorbs outside words."

Islamic architecture was in harmony with the people, their environment and
their Creator, Martin adds. Yet no strict rules were applied to govern Islamic
architecture. The great mosques of Cordoba, Edirne and Shah Jahan each used
local geometry, local materials, local building methods to express in their own
ways the order, harmony and unity of Islamic architecture. When the major
monuments of Islamic architecture are examined, Martin writes, they reveal
complex geometrical relationships, a studied hierarchy of form and ornament,
and great depths of symbolic meaning.

But in the 20th century, the Islamic concepts of unity, harmony and continuity

40 SFMagazine 11
often are forgotten in the rush for industrial development.
Martin, would have a regional identity, a stylistic evolution
Martin lists three directions contemporary Islamic archi-
and a relevance to the eternal principles of Islam.
tecture has taken.
In the Islamic and Arabic world, we find great architects
1. One approach is to completely ignore the past and
such as: Hassan Fat'hy is arguing for the nobility and wis-
produce Western-oriented architecture that ignores
dom of vernacular architecture in the face of imported
the Islamic spirit and undermines traditional culture.
models that are alien to Islamic society. Moreover, there
2. The opposite approach involves a retreat, at least is Rifat Chadirji whose entire life has been dedicated to
superficially, to the Islamic architectural past. This the search for a suitable contemporary architectural ex-
can result in hybrid buildings where traditional fa- pression that is inspired by the authentic heritage of his
cades of arches and domes are grafted onto modern region. These, and many more such as: Basil Al-Bayyati,
high-rises. and Abdel Wahed El Wakil are the gladiators in the arena
of competing concepts of architecture in the Muslim
3. A third approach, Martin notes, is to understand the
world. They have contributed significantly to the evolving
essence of Islamic architecture and to allow modern
patterns of the built environment, to the intellectual de-
building technology to be a tool in the expression of
bate prevailing in the Muslim world, and to the architec-
this essence. Writes Martin, "Architects working to-
tural profession's image of its role as articulator and
day can take advantage of opportunities that new
promulgator of societal values.
materials and mass production techniques offer.
They have an opportunity to explore and transform
the possibilities of the machine age for the enrich-
ment of architecture in the same way that craftsmen
explored the nature of geometrical and arabesque
patterns..."

The forms that would evolve from this approach, adds

SFMagazine 11 41
 Islamic Architecture

The Mosque of al-Azhar was founded by Jawhar al-Siqilly, the Fatimid conqueror
of Egypt, in 970 as the congregational mosque for the new city of al-Qahira.
The first khutba was delivered from its minbar in 972 and a university was es-
tablished there in 988.

The core academic life of Al-Azhar has remained much the same for over a
millenium: its students study the Qur'an and Islamic law in detail, along with
logic, grammar, rhetoric, and how to calculate the lunar phases of the moon.
Most of this learning is done by listening in a circle (halqa) at the feet of a
sheikh and rote memorization. As students advance, they may engage in So-
cratic dialogue with their teachers or instruct their juniors.

Al-Azhar does not admit students who are not practicing Muslims but provides
training in secular professions; it is thus a unique combination of a theological
seminary and regular university, with faculties of medicine and engineering
established in 1961.

Al-Azhar is considered by most Sunni Muslims to be the most prestigious school

of Islamic law, and its scholars are seen as the highest scholars in the Muslim
world. Its stated objectives remain the propagation of Islamic culture and the
Arabic language.

To that end, it maintains a committee of ulemas to judge on individual Islamic

questions, a printing establishment for printing
the Qur'an, and trains preachers trained in da'wa
and the propagation of religious publicity. Al-
Azhar is run by a Supreme Council that estab-
lishes general policy, headed by a Grand Imam,

The Mosque of styled the "Sheikh Al-Azhar."

The original structure is a hypostyle mosque, with

the aisles defined by round arches on pre-Islamic

Al-Azhar marble columns with Corinthian capitals, and with

the axis to the mihrab emphasized by a wide lon-
gitudinal aisle (transept), higher than the rest of
the prayer hall. The other aisles are transverse,
running parallel to the qibla wall. The termination
of the transept at the mihrab is marked by a
dome.

Among the original decorations are stucco panels and a window screen in the
original qibla wall, stucco representations of a palm tree on the piers of the
wall facing the original qibla wall. Also original are the stucco decorations on
the inside of the northeast wall of the sanctuary, including bands of Kufic in-
scriptions framing windows with geometric stucco grilles, and the Kufic inscrip-
tions and stucco carving in the hood of the mihrab. The stucco panels above it,
however, belong to the restoration of Sultan Baybars I.

The courtyard was originally enclosed with three arcades. Part of the work of
Caliph al-Hafiz (1138) is the addition of an arcade around all four sides of the
courtyard, displaying keel-shaped arches, roundels, and keel-arched niches.
The transept commences with a pishtaq, which is set in the courtyard's prayer-
hall facade and was also built in the time of al-Hafiz. Behind this pishtaq in the
first bay is a dome on squinches. This dome, the arches supporting it, the strik-
ing stucco decoration both on the spandrels of these arches and the interior of
the dome, and the window grille above the qibla side arch that is the earliest
extant example of stained-glass in Egypt, were also added by al-Hafiz.

The Shafi'i monopolized the law during the Ayyubid period, so the Friday
khutba in Cairo could be delivered from one mosque only. Consequently, the
Azhar lost its status as a Friday mosque, when the Mosque of al-Hakim, by vir-

42 SFMagazine 11
tue of being the largest mosque in the city, was chosen in
its stead. In 1266 during the reign of Mamluk Sultan Bay-
bars I, Amir 'Izz al-Din Aydamur al-Hilli restored the
mosque and elevated it to khutba status, and Amir Badr
al-Din Bilik al-Khazindar had a maqsura made for it.
Mamluk madrasas were established in the ziyada (outer
enclosure): Taybarsiyya in 1309 and Aqbughawiyya in
1340. The Taybarsiyya has two iwans, one for the
Shafi'ites and the other for the Malikites. Its mihrab is rep-
resentative of an early Bahri Mamluk combination of glass
mosaic and polychrome marble inlay. The mihrab's semi-
dome is set in an outer arch surrounded by a molding
which forms a loop at its apex, and continues horizontally
and then vertically downwards to form a rectangular
outer frame for the spandrels of this arch. This is the earli-
est occurrence of this feature in Egypt. The upper part of
the mihrab is framed by a band of white marble with a
decorative motif inlaid in black.
The Aqbughawiyya, with a minaret by the royal chief-
architect Mu'allim al-Suyufi (also 1340), had housed al-
Azhar's valuable collection of Qur'ans and manuscripts
since 1898, but has since been relocated to another build-
ing. For another minaret by tMu'allim al-Suyufi, see al-
Maridani. Originally a madrasa, it was later used for the
Sufi exercise of hudur. In fact, in the early 14th c.
mosques and madrasas were arenas for Sufi perform-
ances including dance and music. It is particularly noted
for its portal, adorned with red and black marble inlay,
and mihrabs featuring decorations in glass mosaic and
mother of pearl.
The foundation (madrasa and mausoleum) of Jawhar al-
Qunqubay, added in 1440, displays the earliest example
of arabesque foliage carving on the exterior surface of a
stone dome in Cairo. Additions by Sultan Qaytbay include
the main gate to the courtyard at the end of the passage
between the Aqbughawiyya and the Taybarsiyya (1469),
and the minaret above it (ca. 1477). Later restorations by
Qaytbay under the superintendence of Khwaja Mustafa
ibn Mahmud ibn Rustem al-Rumi were finished in 1496.
The double-finial minaret belongs to the works of Sultan
al-Ghuri (1501-16).
Later works include those of Mamluk 'Abd al-Rahman
Katkhuda (under the Ottomans), part of which is the main
portal and the expansion behind the Fatimid mihrab, in
1753, and those of Khedive 'Abbas Hilmy in 1894. This
mosque served as a model for the Mosque of the Qarafa,
a congregational mosque built by al-Sayyida al-Mu'izziyya
in 976.
The university's library (not open to visitors), which was
consolidated in 1897, is considered second in range and
importance only to Dar Al-kotob Al-Masriah in Egypt, as
far as the number of Islamic books and manuscripts are
concerned. The library comprises of 99,062 books consist
of 595,668 volumes of the most precious manuscripts and
rare books, some as old as the 8th century.
SFMagazine 11 43
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