Riba in The Quran
by Kashif Ahmed Shehzada

QUESTION#19

What exactly does the Quran mean when it says that Riba is a war against Allah?  What does Riba mean?

Rizwan Sayed
Bahrain

ANSWER#19

In its general linguistic sense the term "Riba" denotes an "Addition" to or an "Increase" of a thing over or above its original size and amount. Inspite of all the deliberate confusion raised in order to keep the correct understanding of "Riba" in ambiguity, the Qur’an has very clearly and unambiguously defined "Riba". While warning Believers concerning it, the Qur’an defines what "Riba" is when it states:

"wa in tubtum fa lakum ru'u_su amwa_likum"

"..And if ye repent, then ye have your principal…" (2:279)

In the above verse it is clarified that "Riba" is that amount or remuneration which is in excess to that of the original Capital or Principal, what is called "Ras ul Maal" in Arabic.  The verse ends with the phrase:

"la_ tazlimu_na wa la_ tuzlamu_n(a)"

"..Wrong not, and ye shall not be wronged." (2:279)

Thus it is evident that not demanding remuneration in excess of the original Principal is not "Zulm" or oppression, and demanding remuneration in excess to the Principal (Ras-ul Maal) comprises "Zulm" or oppression and wrongdoing on the part of the lender, and hence this clarifies that "Riba" is that amount or remuneration that is demanded in excess to the principal or original capital sum.

The Qur’an says that we have the right to demand remuneration for our labor and efforts only, and not for the Capital as the ownership of the entire resources of the World belongs to Allah. While we on the other hand, are entitled to the compensation for our labor only:

"Wa al laisa lil insa_ni il la_ ma_ saa_"

"That man can have nothing but what he strives for." (53:39)

In Trade, which the Qur’an calls as "Bai" and makes permissible, we put in Capital along with Labor and in turn are entitled to remuneration for our Labor only, but in "Riba", no labor is put in and the remuneration is demanded restricted only for Capital. Allah has brought "Riba" and "Bai" side by side as opposites in the Qur’an and this further clarifies the concept of  "Riba". People allege that "Riba" is the same as Trade, as in both Capital is invested and remuneration is sought, but Qur’an refutes such, by stating that "Riba" is different from "Bai", such that in it, one also puts in his labor and effort along with the capital, and the increase is sought not for the Capital but for one’s efforts in selling the goods or services. Those who consume "Riba" are identified as people who are in a craze for increasing their wealth:

"Those who consume ‘Riba’ cannot rise up save as he ariseth whom the devil hath struck mad by (his) touch…" (2:275)

Their argument is that "Riba", i.e. increase and remuneration against Capital, is the same as Trade:

 "..That is because they say: Trade is just like ‘Riba’.." (2:275)

But Allah refutes such individuals and says that "Riba" is ‘Haraam’ (Prohibited) , while Trade, in which a person invests his Capital as well as Labor, is ‘Halaal’ (Permissible):

"..Whereas Allah permitteth trading and forbiddeth ‘Riba’. He unto whom an admonition from his Lord cometh, and (he) refraineth (in obedience thereto), he shall keep (the profits of) that which is past, and his affair (henceforth) is with Allah. As for him who returneth (to Riba)--Such are rightful owners of the Fire. They will abide therein." (2:275)

Generally we acquire resources by the following means:

(1)  GIFTS: Some one gives us something out of his free will and consent.

(2)  WAGES: The remuneration we get for our  Labor and efforts.

(3)  RIBA: Remuneration against Capital, without putting in any Labor or efforts. Riba is prohibited by Qur’an.

(4)  PROFITS: Remuneration against Capital as well as Labor.

(5)  GAMBLING: Remuneration acquired without putting in any Labor, but Capital only in games of chance. Gambling is prohibited by Qur’an.

It should be observed that apart from (1), the means by which remuneration is acquired without putting in Labor and efforts are Prohibited by Qur’an. (Riba and gambling)
 

Acquiring "Riba" has been identified as "War from Allah and His Messenger":

"And if ye do not (give up income acquired from ‘Riba’), then be warned of war (against you) from Allah and His messenger. And if ye repent, then ye have your principal. Wrong not, and ye shall not be wronged." (2:279)
 

This is so because "Riba" is the antithesis if the Qur’anic Economic order. An Economy based on ‘Riba’ results in individuals or organizations growing  as parasites on the Labor and efforts of other people instead of their own, and cause massive economic exploitation and the emergence of Class conflicts. In a ‘Riba’ based Economy, the wealth is restricted in the hands of a minority only while in the Qur’anic Economic order the wealth circulates evenly in the whole of society and there are no class conflicts in the form of  Rulers, and  Capitalists against  workers or laborers. (See 59:7)

In the Qur’anic social order, the Believers work to the best of their ability, and keep only the necessities of life with them, and give the rest to those who are more deserving, as the following verse indicates:

"And they ask thee what they ought to spend. Say: That which is superfluous. Thus Allah maketh plain to you (His) revelations, that haply ye may reflect—" (2:219)

In a ‘Riba’ based society, the prime interest to the Capitalist is to his property and his own self, while in the Qur’anic Economic order the prime interest is not to one’s own Assets, but the well being of our fellow human beings on a wider level.

" They (the believers) give preference to others over themselves even though they may themselves face hardships.." (59:9)

The Believers in the Qur’anic message form a society whose outlook is completely different from that of a society where people amass wealth, on the labor and efforts of others and live luxuriously as parasites while their fellow human beings cannot even have the basic necessities of life. This should clarify why acquisition of 'Riba' has been resented to the extent of making an announcement of War by Allah and His Messenger.