ISLAM- a deeper perspective

By Syed Ashraf Husain ashraf.h13@fms.edu F-140 FMS 2011-13 batch

AGENDA
Islam- An Abrahamic religion

The Prophet & The Quran Essential Muslim Beliefs Diversity of Islam More about Islam-Key issues Islamic Finance Modern Perspectives- the world ahead
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Islam- An Abrahamic religion

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Islam
Islam = peace, submission Muslim = submitter Not Mohammedanism An Abrahamic Religion- A direct continuation of Judaism and Islam
Muslims They

are strict monotheists.

believe in the Judeo- Christian God, who is called by the name Allah. Muslims believe that the Torah and the Bible, like the Quran, is the word of God.

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Peoples of the Book

Abrahams Genealogy
HAGAR Ishmael 12 Arabian Tribes ABRAHAM Isaac SARAH

Jacob 12 Tribes of Israel

Esau

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The Prophetic Tradition

Adam Noah Abraham Moses

Jesus

Prophet Muhammad
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The Prophet & The Quran

A historical perspective

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The Prophet
His background
An orphan of a noble, but not well-to-do, family that

lived in Mecca. His father died before his birth. His mother died when he was six. His uncle raised him. He was known for being honest and truthful before prophethood. Worked as a shepherd and later as a trader Married his first wife Khadija, and the mother of his surviving children, when he was 25. She was 40.
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The Prophet
His prophethood
In 610, he received his first revelation at 43. These

revelations were compiled later into the Quran; the holy book of Muslims The nobles of Mecca refused his call, ostracized and persecuted him and his followers. After 12 difficult years, he immigrated in 622 to Medina whose people welcomed him. In Medina, he was a prophet and a statesman. In 633, he died in Medina after 11 years at 63 Islam would rapidly spread in the next few years Ashraf, Aug 2012 across the world

The Quran
The revelation of God to

Muhammad It has been preserved as revealed 14 centuries ago. It consists of 114 chapters of various lengths. In Arabic, it numbers about 604 pages. The translation of its meaning is available in English, Urdu, Hindi and most of the worlds languages. However most commentators believe the translations loose meaning and context

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The Quran
Appeals to the mind to reflect

on creations and the creator Glad tidings for the believers Admonitions to the nonbelievers Stories of previous messengers of God such as Noah, Abraham, Isaac, Moses, Jesus, Mary, etc. Rulings on social and commercial issues.
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Essential Muslim Beliefs

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The Five Pillars of Islam

Shahada Witness: There is no God but The God (Allah) and Muhammad is the Prophet of God Salat Prayer, five times every day Zakat alms giving to the poor and needy

Sawm(Roza) fasting, sun-up to sun-down

during month of Ramadan Hajj Pilgrimage to Mecca (at least once in a Muslims life, if able)

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Key Beliefs
One God (Allah) Spiritual beings: Angels, Jinn and the Devil (Iblis, Shaitan) Prophets & Messengers: Adam, Abraham, Moses, David, Jesus, Muhammad Holy Books: Torah, Psalms, Gospels, Quran Decrements (destiny) Inshallah (if God wills) End Times (eschatology) Resurrection, Judgment day, Heaven & Hell
These beliefs are key to understanding how ethics flow in

the world.
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Diversity of Islam
Sects & sub beliefs

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The World of Islam

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The Divisions

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http://en.wikipedia.org/wiki/Islamic_schools_and_br

Islams Two Branches

SUNNI: 85-90% of Muslims Leadership by consensus (of Muhammads followers) No organized clergy; authority from below to above Literal interpretation of the Quran (apparent meaning) Majority status throughout duration of the caliphate SHIITE (SHIA): 10-15% of Muslims Leaders only descended from family of Muhammad Authoritarian: guidance from Imams (above) to below Leadership determines (hidden) meaning of Quran Oppressed, tragic minority: greater emphasis on martyrdom, and use of dissimulation (taqiyyah)

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The Great Split

Resulted partly from pre-Islamic tribal customs: age and wisdom

respected, leaders chosen by shura Muhammad died in 632 A.D. without a male heir or a designated successor Abu Bakrs selection as first caliph by Prophets small inner circle went against tribal consensus, alienated Alis followers Uthmans selection as third caliph after Umar reflected ongoing Mecca-Medina tribal rivalry Ali eventually becomes fourth (and last rightly-guided) caliph, but challenged by Muawiyah and assassinated by Kharijites Death of Ali and his son Hasan leads to transfer of caliphate to Damascus, start of first Muslim dynasty (Umayyads) Tragedy of Yazids massacre of Alis son Husayn at Karbala in 680 A.D. marks beginning of Shiism as a religio-political movement

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Divisions Within Sunnism

Four schools of Islamic law (madhhab): Hanafi: oldest, most liberal and flexible of the schools; founded in Iraq; introduced legal opinion based on analogy (qiyas); concentrates more on juridical opinion and less on tradition; its 400 million adherents are concentrated in Central/South/Southeast Asia and Turkey Maliki: founded in Medina; produced the first law manual; focuses on ahadith and emphasizes living legal tradition; its 50 million followers located mainly in North and West Africa, Persian Gulf, Upper Egypt Shafii: founded in Iraq, this school concentrates on the scientific interpretation of law; defined community consensus (ijma) as the strongest of the four roots of law, since it determines how other three are used; 100 million adherents are in the Levant, SE Asia, E. Africa Hanbali: smallest and strictest, most conservative of the four schools; rejects consensus and only follows the Quran and tradition; basis of reforms by Ibn Taymiyya and Muhammad ibn Abd al-Wahhab, and still influences Salafis and radical Islamist movements today; its 12 million followers are the Wahhabis of Saudi Arabia and Qatar
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Divisions Within Shiism

Differences over hereditary succession of Imams: Zaydis (Fivers): differed with most Shia in that any descendant of Ali could become imam, not just descendants of Ali by Fatimah (Prophets daughter); named for Zayd bin Ali, grandson of Husayn; closest to Sunnis since they do not regard their imams as more than human Ismaelis (Seveners): recognize an unbroken chain of imams down to present, but focus adoration on seventh in the line, Ismail (not recognized by majority as an imam); early Ismaelis were revolutionaries who attacked, assassinated Sunni political and religious leaders Druze (Unitarians): offshoot from Ismaelis centered on the Fatimid caliph al-Hakim, who believed he was a divine incarnation and cosmic intellect; followers believe al-Hakim went into seclusion to test their faith, return to restore justice in the world; have own scripture and law Ithna-Asharis (Twelvers or Imamis): Majority of Shiite community, believe that imamate succession ended in 874 A.D. when 12th Imam went into seclusion; he will return as a messianic figure (the Mahdi) at the end of the world to restore the Shiite community to its rightful place, usher in a perfect Islamic society where truth and justice prevail
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Sufis the Mystics of Islam

Not a sect, but a spiritual orientation in both branches Adherents are introspective, highly spiritual people who seek to

attain inner ecstasy, self-enlightenment, and emulate the Prophets own example of frugality and self-discipline Arose in opposition to social trends in the early expanding Muslim empire such as opulence, overindulgence in worldly pleasures, excessive emphasis on legalism, and pageantry Faith in God experienced through meditation, chanting, selfless love for others, self-denial, and pilgrimage to shrines of past Sufi masters Were not respected by many traditional ulema (Islamic scholars), and reformers such as Wahhabis/Salafis still consider them to be outside the Muslim faith

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More about Islam-Key issues

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Festivals
Eid-ul-fitr & Eid-ul-Adha are the most important

festivals
Eid-ul-fitr is the celeberation after a month of

fasting
Eid-ul-Adha is the festival of sacrifice. s Muharram is not a festival
Central to Shiaism
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Also recognized by Sunni Islam

The Muslim legal code Sharia

Consists of the following

components:
Rulings mentioned in the Quran Precedents in the life of Muhammad

as it explains and complements the Quran in more details- Sunna & Hadith Opinions (fatwa) of Muhammads prominent companions. Opinions of previous jurisprudents Opinions of contemporary scholars Importance of majority nsensus
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Shariah - Covers
Crime: theft, murder, slander

Transactions: buying, selling, interest

Family Law: marriage, divorce,

inheritance Warfare: treaties, civilians Ritual: how should I pray, do pilgrimage? Pleasing God: what acts please or dont please God? Boundaries of Community: what makes you Muslim or not? Ashraf, Aug 2012

Aims of the Shariah

The 5 rights that the Shariah seeks to protect: 1) Life 2) Property 3) Honor 4) Reason 5) Religion Its a way to live your life. Shariah is optional & fatwas are just opinions of scholars Countries with Shariah as law have their own interpretations of Shariah which need not be similar.
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Types of Actions
2. Required (wajib): ex. five daily prayers
1. Recommended (mandub): ex.extra charity 0. Permitted (mubah): ex. wearing a blue dress instead of a green one
1. Disliked (makruh): not returning the greeting of another person 2. Prohibited (haram): drinking alcohol,

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Prohibitions
Halal (permissible) and Haram (prohibited) No eating of pork (other dietary regulations = halal) No gambling No intoxicants No usury (charging or paying interest on loans) (the rich shall not profit from helping the poor)

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What about Jihad?

Word means Struggle not Holy War Inner: spiritual and moral struggle between good and

evil Outer: struggle to maintain proper social setting according to Gods will Struggles in the Holy Land Palestinian vs. Israeli, not Muslim vs. Jew (political, not religious)
At times solidarity because of feeling of injustice

and oppression

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Women
Respected and Protected by Men Modest dress for both men and women
Hijab differs from culture to culture Heavy cover and veil not a religious requirement

Right to vote (citizenship) Right to inherit Right to work, earn and keep her own money Right to keep her own name in marriage Right to initiate divorce Right to refuse additional wives Female infanticide outlawed or state.

Islam historically gave women more rights than any other religion

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How do we apply Quran and Sunna? The First two Centuries

Interpretation Companions Principles applied in reasoning Partisans of Reason Quran Sunna

Quran

Texts to be followed literally

Partisans of Hadith: Quran Reliable Hadith Ruling of Companions Weak hadith analogy

Reliable hadith
Rulings of Companions Best judgment Ashraf, Aug 2012

Case Study: The Hand of a Thief

Quranic Verse: The thief, male or female, cut off their

hand in retribution for what they have done, an exemplary punishment from God, for God is mighty and wise (Quran 5:38). Hadith: Do not cut off the hand of the thief for less than dinar Companion Ruling: Umar suspended the punishment during famine (aims of the Shariah) Madhhab Difference: Hanafis say no amputation for the theft of any food or substance that was licit to begin with, such as animals or vegetables Mitigation: some argue that punishment for theft cannot be established without two confessions; its reported that Umar and Abu Darda would encourage the accused to deny the charge, then handle the problem privately.
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Islamic Finance
The growth

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Islamic finance
The Islamic law (Shariah) prohibits taking or

giving interest (Riba) which is the most essential feature of Islamic banking Profit sharing and fee-based financing approaches have developed in compliance with Shariah laws. These special modes of financing have emerged in retail, private and commercial banking for debt and capital markets, insurance, asset management, structured and project financing, derivates, etc.
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PRINCIPLES OF ISLAMIC FINANCE

Prohibition of Interest Risk sharing Social Mission Prohibition of speculative

behaviour

Sanctity of contracts Shariah-approved activities.

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Consequent Prohibitions
Riba, which is taking or giving of interest

Masir, which is involvement in speculative

and gambling transactions Gharar, which is uncertainty about the terms of contract or the subjectmatter, e.g. prohibits selling something which one does not own Investment in businesses dealing in alcohol, drugs, gambling, armaments, etc. which are considered unlawful or undesirable
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Timelines

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Major Developments

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Players- Western bank

ABN Amro Deutsche Bank Barclays BNP Paribas Standard Chartered
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Citi Islamic Bank Lloyds

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Modern Perspectives
Islamic Finance and the world ahead

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Rise of the extremists

Original thinkers builtdon the ideas of Ibn Taymiyya and Abd al-

Wahhab (1920s-1960s): Abul ala Mawdudi, Hasan al-Banna, and Sayyid Qutb Charismatic publicists apply, expand on and redirect earlier radical Islamist thought (1980s to present): Muhammad abd alSalam Faraj, Abdullah Azzam, Ayman al-Zawahiri, and Osama bin Laden Instigating events 1979 was a key year: - Iranian revolution brings Khomeinis militant theocracy to power, gives hope to Shia and Sunni Islamists everywhere - Soviet invasion of Afghanistan ignites regional jihad and plants the seeds for its global expansion Dispersion of mujahidin, durability of madrassas, and widespread receptivity to radicals distortions of the faith will ensure that violence will continue
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Final Opportunities & (Threats)

The global Muslim population is 1.6 billion people. Opportunity in consumption & purchasing

behaviour
Huge market exist for Halal products, Islamic

finance.
Tread lightly for religious sensibilities can be easily

upset. Its a different standard & allow for the diversity

May you live in interesting times Ashraf, Aug 2012

Thank you
Suggested Readings: Karen Armstrong, Wikipedia, Upton on Islamic Finances , Muslims invest

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Alternative Governance
Decision-making Basis Legal concept of firm: decision making By whom?

Approaches
Managed corporation model CEO and senior management Socially responsive corporation

to

Corporate
Islamic corporate governance Shuratic decision making process: consultation and Consensus seeking Institution of Hisba Role of mutasib

Executive and supervisory processes

Economic concept of firm: decision-making for whom? Accounting concept of firm: decision-making with what resources and to whom is accountability due? 49

Maximize profits Maximize shareholder value Financial governance by shareholders and suppliers of finance

Stakeholders

Corporate responsibility Triple bottom line: economic, social and environmental accountability

Shariah supervision process Religious audit

29 November 2013