Thursday, December 14

Umar Chapra’ s Commentary on The Last Sermon of Holly Prophet

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Umar Chapra’ s commentary on the last sermon of holly prophet

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S j tubrazy

On the occasion of his Farewell pilgrimage, the Prophet, while declaring the abolition of interest, announced the remission of interest accumulated in favour of his uncle ‘Abbas Ibn Abd Al-Muttalib, this was interest on business loans extended to the Banu Thaqif tribe. This tribe had not taken the loan from ‘Abbas and others for fulfilling consumption needs but for expanding their business. This was not an isolated case but a prevalent form of business financing in those days. Several tribe members having skill in trading acted essentially like large partnerships, borrowing finance from members of their own tribe or from other friend tribes, to carry on large-scale business which their own resources would not permit. This is because they could not undertake too many business trips abroad from cast to west. The slow means of communication, the difficult terrain and the harsh climate I confined them to mainly two carvan trips during the year, one in summer and one in winter (al-Qur’an, 106:2). Accordingly they collected all the finance they could muster to purchase the local produce, sell it abroad and bring hack what was necessary to satisfy the entire needs of their society for imports during a specific period: Most of the interest based transactions mentioned in the classical commentaries in relation to the prohibition of riba are loans taken by tribes from each other, each tribe acting like a large partnership company. Islam abolished the interest-based nature of these relationships but reorganised them on a profit-and-loss-sharing basis. `The financier got a just share and the entrepreneur did not get crushed under adverse conditions, one of which was the carvan being waylaid on the journey. 

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