Lecture slides now available at my website at www.almircolan.com/blog/troublewithriba (consider subscribing to my email updates if interested in this topic)
I’d like to share a simple explanation why it’s wrong. I told this to a young banker (who asks everyone the question why) and the person understood it with satisfaction for the first time. Imagine a village with a hundred people and they have a barter system (wheat for onions). A guy lives up the mountain and he has a wonderful idea. He creates new coins and issues these coins as dollars. He feels this will facilitate trade in a very simple way. He issues the coins as loans. One dollar per person, so he issues $100. He charges 5% interest. And conditions the loan to be paid precisely one year later. Trade goes up in economy, booms and everybody is able to have a job and do more than that. One year later: they have to return the money. Some people have more money than one dollar and are able to pay off the loan. Some people have less than one dollar and cannot pay off the loan. So he issues new loans to those who can’t pay it off. But the game is rigged! 100 people receiving $100 with 5% interest means one year later the mountain man should get $105. But the 5$ doesn’t exist! 😮 Someone will always be unable to pay off their loan! That’s just math. Where does the 5$ come from? The man issues 5$ as a new loan WITH interest. The 5$ never existed. And it never will. And neither will the new interest that is to be charged. I hope you read this.
Riba, yes of course, do you know many Muslim majority countries hold u.s Treasury bonds and it enables riba to spread around the world because the other countries use dollar to purchase Muslim majority countries oil for energy use??
I challenge you to answer this question honestly! What is better for an individual and societies if someone buys a $200k house through a bank with 0.0005(just for the sake of argument) of INTEREST rate or buy it from an Islamic bank for $300k( same House for 15 years mortgage)?
I recorded this for all the new visitors who are learning about the wisdom behind the prohibition of Riba for the first time. I would love to hear the useful points you gathered from this lecture and what else you would like me to cover.
i bought my first house when i was 23 with a nonqualifing fha [federal housing authority] mortgage. the original loan was from 1984 at 13%. i refied down to 9% in 1993. this allowed me to own a home rather than to continue to pay rent. why would this be bad?
@@michaelmalzahn-tx2zi because even though it is not directly bad for you, but it is bad for the economy since it is a sale of dept not of asset which inflates the economy will in the long run affect you (as we are seeing now adays). Also it is not just about you but it is about the society that functions around you, which has the right to a non inflated economy. make sure to rewatch the lecture because this was explained.
@@MohamedMohamed-ep1pu no, it is a sale of an asset, the house. in order to move that sale forward one takes a loan at interest. this is much better than paying rent for 30 years and having nothing to show for it after those 30 years. if you buy the house, then you own the house at the end of the mortgage. home ownership is one of the best things for an economy. "has the right to a non inflated economy" how can you claim such a right? if a bird flu wipes out a percentage of the chickens being raised for food, the price of chicken is going to go up. so tell me. if a country wants to build a massive infrastructure project, let's say a road and rail system that doesn't exist, they can't issue bonds to fund it? is this why so many islamic countries, the one's not sitting on massive oil reserves are so under developed?
@@michaelmalzahn-tx2zi Many unethical practices in life, including gambling and alcohol, might seem justifiable when judged solely from an individual’s perspective.
very insightful and scary to see how the economy is inflated beyond what we can actually produce. This made me realise how important it is for the world to adopt islamic-global finances to prevent such evil.
😂 It's an instrument pegged to the inflation rate and growth rate of economy... developing countries have positive IR while developed ones have zero or negative IR. It is not free money. It is a trade of asset. Ask any bank, a loan is an asset that is traded between banks.
9:12 Almir shows us that either he is intentionally lying, or else he hasn't read the entire Holy Bible. 1. First, there is no prohibition against taking interest in the Holy Bible, except that you are not to take interest from poor people: Exodus 22:25 If thou lend money to [any of] my people [that is] poor by thee, thou shalt not be to him as an usurer, neither shalt thou lay upon him usury. . 2. You are not to get interest from a "brother", which, in context, means anyone from your own nation: Deuteronomy 23:19 Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury: 20 Unto a stranger thou mayest lend upon usury; but unto thy brother thou shalt not lend upon usury: that the LORD thy God may bless thee in all that thou settest thine hand to in the land whither thou goest to possess it. . Wait! We see from the above text that God allows usury to be taken from a stranger! . Let's start reading and believing what the Holy Bible says, and follow the Son of God - Jesus Christ.
Riba, yes of course, do you know many Muslim majority countries hold u.s Treasury bonds and it enables riba to spread around the world because the other countries use dollar to purchase Muslim majority countries oil for energy use??
Riba is prohibited in all Divine faiths it is the main reason for destruction of humanity and is a major sin may ALLAH guide and protect us from it and reward you for these eye opening truths Aameen YARABB
May Allah bless you bro Almir Colan for this great presentation of RIBA issue... I wish I can have a tool to publicize this video to whole world at once ...
You are helping me so much making the right decisions for my business. I started when I was 20 years old and I have not used RIBA Alhamdulilah. It has been very difficult and recently I am trying to grow my business, but it seemed impossible before finding this channel. Thank you brother.
That’s great brother. I’ve had some small businesses aside from my regular job and I’ve been thinking about on how to grow without riba in the future. Good to see other brothers and sisters growing without Riba.
mashaAllah, a funny coincidence: I found this video of yours next to a news video on why Russia is implementing Islamic finance in banks on my RUclips recommendation. SubhanAllah, may Allah help us all learn from your explanations
I was raised in a Christian church and this is never talked about, eventhough it is in the Bible. I couldn't get over the fact that it is in there, but no one talks about it and no one follows it. I'm now learning about it from Muslims, cuz they are the only ones I know teaching it. Thank you.
Thanks Almir, I have worked in "Conventional" Finance and particularly Corporate Finance for 5 years now. I build cashflow and securitization models. I have been following your explanations for a week, thankfully your video came up again. I also partticularly stressed Musharaka Mortgages only to notice that it greatly reduces, possibiy eliminates "Contagion" associated with recovery processes in a down market. I am more than willing to switch to any role for developing SC Products! Many many thanks...Jazakallah Khayran
as salamu alaikum. bit of a random question but, why is your name abdul muttalib? muttalib isnt a name of Allah as far as I know its just "slave of one who seeks".
@@_Z.K_zakaria, you see, this video is especially directed at people who profess belief in the Qur'an and Holy Bible, to at least some degree. So to someone like yourself who does not believe in either of those books (it seems), it will seem strange. That doesn't make it any less true, because Jesus Christ is the Way, the Truth, and the Life.
@@earlysda I think you missed the point in my original comment, which attempted to highlight the fact that you take Matthew as verbatim Jesus commentary - despite Matthew being an unknown author of the book. ‘He said/she said’ scripture, which has been modified many times. I believe in the Verbatim words of God through the preserved scripture of the Qur’an, revealed to the final messenger Muhammad, peace be upon him. I invite you to read the Qur’an with an open heart and mind.
Assalamualaikum brother. Very insightful and easy to digest video. Very concise and clear. I found your earlier and shorter video on riba first. The one explaining about cdo and sub primes and how it let to the property bubble burst. I saw rhe movie "the big short" years ago, didnt fully understand how the burst actually came about and happen, but your video did an excellent job in explaining the whole premise of the movie. Its really sad when people are left homeless and broke. And people are hoping that you will default on your loans so they will earn from insurance from your resulting failure. Thanks brother. Good stuff
SubhanAllah, this makes me think about all the market manipulation done at Wall Street. Futures, Commodities trading without actual exchange of goods, derivatives, etc.
The person who edited this wonderful speech, DID NOT DO JUSTICE. Probably to shorten the length. He put the words soTIGHTLY, that it became painful to hear. It appears a very “breathless “, GOD, Please record and post as is!
This was amazing. Jazakallahu Khayr Akhi Almir. I would like you to go in more detail on transactions between the same type of good covered in the hadith for eg. gold for silver, wheat for barley, etc. Knowledge of permissible/prohibited in these types of transactions is not there amongst general muslims.
Thank you Mr. Almir Colan for the further clarification. What can a person do if let's say for example, he sends money from a european country to his homeland such as mine being Afghanistan. Exchanging Euros to Afghani, transfer markets have rule where they get to send money but will charge you let's say 5euros for every 100euros. So i think this will be riba as the party is only benefiting from the increase. I hope you can clarify it Sir.
The global GDP for 2023 of the real economy is estimated to be $105 trillion whereas the global debt currently stands at $305 trillion with a US national debt of almost $33 trillion. What are the expected consequences of US and the world not being able to sustain their debt and interest repayments and given debt to gdp ratio is continuing to increase.
Very informative lecture MashaAllah! Would love for you to make a video on the effect of Riba on the wider economy. In other words, why riba leads to econmic turmoil, inflation and income inequality. JazakAllah Khairun
@@nusaibahibraheem8183 yup that is being objection on Islamic banking, I haven’t been able clear it up for long. I have joined Almir’s community to better understand the topic and discuss the issue.
I really appreciate your efforts to teach islamic economics, brother Almir. I have always thought much about interest and usury and which is rib'a. I would think that if there is no benefit in lending no body would lend and that society's businesses would be deprived of much needed loans.
Still not humanitarian banking and financial investment had made the values reach an illusionary unrealistic point that the poor are more poor and the rich richer what is Soo Good in a system like that that does not serve all humanity ? NONe😢
That's understood Noelle, but why are there not Muslim banks offering these loans to Muslims in the world? Why aren't these ideas practiced in the muslim countries?@@noellebazzi5618
Thank you my brother in Islam for this very important and needed presentation on RIBA. It’s one of the least understood topics in Islam. My question is about Turkey where I presently live. Turkey has recently taken billions of dollars in loans from IMF so doesn’t that put Turkey at war with Allah subhaana wa ta’aala. Can we expect fall of Turkey like the Othman Empire. Why did Erdoğan go Back on his word and raise interest rates. It didn’t even seem to work. The Lira is still in free fall and inflation is skyrocketing. Has Turkey destroyed its future.
As I'm writing this response, Türkiye has no even a penny debt to the IMF. Assuming you are talking about the 6.3 billion USD reserve funds, allocated by the IMF to Türkiye for fiscal year 2022, however the country didn't use those funds. To clarify, those funds are allocated automatically by the IMF to the member countries, and they may or may not apply to use those funds. Türkiye did not.
I have stayed away from riba till now alhamdu Lilla. Btw im 36 years old. A question that keeps popping up in my head is that Riba according to the authentic scriptures is valid only for unequal transactions of gold for gold, silver for silver, salt for salt, dates for dates, barley for barley and wheat for wheat. My question is in today's world no-one transacts in those items rather in paper currency. How does this relate or equate to the 7 items.
Assalamu Alaikum, I'm in the UK and new to Islamic finance. I want to learn about buying property to rent out, avoiding Usury, and setting an ethical renting model. Any book recommendations or advice? Your help is much appreciated. Thank you.
Barak Allah fikom brother Almir. Question: at 39:11 you displayed a slide about how interest based debt is much larger than the actual value of the goods and services, and then you said if people returned a few percent, you can't fulfill the returns from the actual values. How does selling an asset/product for more than its current cash value in exchange for time and installments not fall under the same case (what they call "Murabaha" today) and also cause the same issue if people owed the debt decide to get returns? Or does it not work out that way in Murabaha?
Interesting point. Leaving my mark here to get back if someone answers. I think murabaha is different from installment. In case of installment, my guess is because it doesn't create additional syntethic, fictional value. The price is clear at the start of the contract. The final price is not floating. If there's interest outside of the aggreed price (be it annual or because of late payment), that causes additional value that should not exist.
I think the fixed rate itself if we look in a bigger picture of financial system framework serve as a shield or a protection mechanism of the value of the money thru demand and supply and overall value of the goods and services in an economy from depreciating or appreciating or fluctuate in a sense of going far off from its actual value and risking of debtor from short of cash to fullfiled their loan installments... Hence once the demand and supply of money in circulation are fixed or stabilized ,the only way of generating economic growth is thru real value creation in the economy thru producing more goods services interm of quality and quantity of the services and products available in the market hence generating a real growth to the economy not thru speculating superficial factors ..Once economy growth are driven or moved towards that way ,more and more healthy loans are needed from banking system and the money from the banking system will flow back into the market creating more productive economic growth ,real appreciating of value of money itself,improving buying powers of people and hence generate more value to the money itself and the economy as a whole....As buying power increase there's more plenty of money left for general public to spend more and making its more easy for them to repay their loans in the future .Meaning more money will circulate back into the market generating more economy opportunities for those taking loans to pay back their loan more ease as time goes by or this cycle or system being maintained down the road...thats my two cent opinion of mine on it
could you clarify how to protect (savings) money against inflation , while complying with the concept of Riba? In the context of a western country where islamic banking is not available. The usual vehicles would be funds, bonds, obligations, 401k/pension funds, nft's, crypto, stocks, real estate and using the loan as leverage... But these are all not allowed as I understand. Buying gold maybe?
Brother, how about buying a house & a car on a loan? Is it permissible? Jazakum Laha Khiera for sharing light on this controversial topic of our time. Greetings from the US.
It is better to buy 2nd hand or cheap car Or for house it's better to buy smaller house, and have blessing of Allah on the house & car For me I prefer buy plot of land and build very cheap house with wood or bamboo
34:50- You said it is permissible to exchange land in Preston which is 500 square metres for 1000 square metres land in Roxbury Park. I thought it would NOT be permissible because land is not part of the commodity 6 mentioned in Hadith (gold, silver, wheat, barley, dates, salt) and it’s not something we buy on weight or volume, therefore does not apply to the 5th category of the rules or Riba/Trade. Please clarify.
I want to buy an investment property and build wealth outside of shares. Can I do this in an islamic way? I know those islamic deals still use the interest rate as the calculator for the repayments. If the others keep buying properties my children will stay poor, I want to buy properties
Salam, brother Almir Colan. I guess based on what you said about exchanges, I can’t buy gold on spot (online bank transfer) and then receive the gold some days later through shipment? And also I guess that would be the same if I told the dealer to store the gold in a vault for me until I come and collect it on an agreed date? Also, am I allowed to ask a friend of mine to collect the gold for me at spot. I.e. I’m paying it through online bank transfer, while he is collecting it for me and I will collect it from him in an agreed date? JazakAllah
ribah is not just interest, what muslims often ignore is that the pieces itself that we call money is also ribah- banking is ribah there is no such thing as shariah compliant banking, its the equivalent of putting a halaal stamp on a pig. even the payment of taxation is ribah, since tax is used to pay back the interest in the national debt governments accumulate
When we want to buy a property through an Islamic Finance, does that mean that both parties bear the profit and loses? How is the proportion of the profit or lose, when it came to realisation?
Some people to confuse further add that interest is different from usury, because the person taking loan on Interest is doing it for profit, for he himself will invest the money in one or other form. While these same people try to fool people that RIBA is something when someone is in need and poor and if that person is given money on interest, that is Usury. In reality both are same.
There are so many reasons why this discussion, though helpful, is way off the course. It misses the basics of money itself. The fiat money is not a qualified quantity! It can not be called money. The fiat is issued on a debt bond over time to the treasury. It is a scale of time, not a weighed known quantity of a certain purity. Fiat then becomes a tool of control, of manipulation, of taxation and extraction of wealth. A productivity gambit. This is why to generate endless inflation, endless products must be made, and productivity increased. When you do that with an instrument of known quantity, endless production actually lowers prices! It is a disincentive to produce in perpetuity, a disincentive to increase productivity. It is an on demand model. Its quantity is known... fiat issued on interest bonds needs added productivity and endless inflation to pay back the original. Ones with assets will remain wealthy in perpetuity. We have known the surface implications forever now. It is time to dig deeper into the foundations of modern money. Thank you Almir Colan.
Riba menyebabkan perbudakan modern yang kemudian menimbulkan terjadinya penghisapan kekayaan dari si miskin kepada si kaya. Kemiskinan struktural (kemiskinan yang disebabkan oleh ketidakadilan sistem dan bukan karena malas bekerja) muncul karena riba ini. Negara-negara berkembang tetap miskin karena riba hutang yang memberatkan yang harus dibayar kepada IMF, World Bank, hutang bilateral, dan lain-lainnya. Selain itu uang kertas tanpa jaminan emas juga menjadi salah satu sebab terjadinya perbudakan modern. Mata uang dengan nilai tukar lemah harus membayar jauh lebih mahal dibandingkan dengan mata uang kuat untuk sepotong humberger. Orang Islam yang hidup di dunia ketiga harus bekerja jauh lebih keras dibandingkan dengan negara-negara Barat dan negara-negara non Islam untuk mendapatkan standard barang yang sama karena dibayar jauh lebih murah.
Assalam Alaikum br. Almir, can you clarify the concept of lease vs renting that is confusing me. I have worked in car industry and i know that in conventional leasing of a vehicle involves inferest. Many scholors consider it halal because they say its renting. Im confused. Please clarify. JazakAllah Khair.
Walaykumu salam - In a lease or rental agreement, the subject matter of the contract is the use of a car. You are exchanging money for the benefit of using the car, which is a money-for-non-money transaction. This type of transaction is permissible. The term ‘interest’ in this conventional context is likely used as a substitute for ‘profit’ to indicate the rate of return in mathematical terms.
Assalam o Alaikum I'm doing real estate in Dubai and my one deal is in process at the moment. I'm a broker here so the buyer is using mortgage. My job was to show him the property he likes it and then the bank valuation team contacted me and I arranged a viewing of the apartment for them so they visited the apartment and valuated it to provide loan to the buyer so I just wanted to ask that I'm a middleman here connected with buyer/seller and I'm going to get the commission from the buyer as per Dubai real estate rule so the commission I'm getting for this will be halal for me or not as the buyer has taken a loan from the bank
mashallah good lecture brother almir but one question, if erdogan did the right thing to decrease the intrests why was it unseccussfull? was there a mistake?
Yes there was a mistake. He did not listen to orthodox economists and kept firing his central bankers who understood you needed to raise interest rates to stop inflation.
Asalam Aleikum! I don't have a problem with " Riba and its prohibition when money is representative of Gold and Silver or receipts of them which are redeemable ". However, I have a problem with the definition of Riba and its applications on " Fiat currency" One modern fiat currency is a mere piece of paper with fictitious value; no instrinsic value and unbacked by any asset. Two is Riba in this case refers to " interest; signorage; printing more currency; debt and or quantities easing. Three in Kenya, with mortgage after you pay annual interest; the Revenue Authority refunds you all the interest for the year. Thus your annual interest is netted out and you have paid only the Principal. In this case have you sinned or not?
As Salaamu Alaykum. How can you do non-RIBA transactions with fiat currencies? For example, if the annual inflation rate is 25%, the 100 Egyptian pounds you have at the beginning of the year would only be worth 75 pounds by the end of the year. Also today's central banks basically create this money out of thin air.
Asc sheikh what do you think this so called no riba to buy houses like guidance residential, here in America, they will say profit sharing but I think it's another interest hidden, it's also very expensive than normal banks with interest. Please let me know what you think about this. Thanks
In Kenya, even Islamic banks replace the name interest with profit and charge at the going market interest rate. Wallahi no difference. Other financial institutions also claim to do sharia loans but all they do is replace the name with 'fees' and 'interest' and are sometimes are an 'Muslim margin. making them more expensive than conventional loans. They realized Muslims will go to great lengths to avoid the name interest so they make them buy the privilege.
Is there going to be an economical disadvantage to Muslim countries who do not use the riba system because their GDP will be based on real output of a their country or is that an advantage if they grow their GDP that way since the other countries GDPs are inflated and can collapse at anytime???
Why is money as base of the economic system kept in every religion? Is it similar to why slavery is kept? Why is keeping the spoils of war obtained from infidels / non-believers fine and interest is not?
Hallo, dear Almir, I am living in Turkey and here there is a huge inflation(%100 real, %60 explained) and interest rates(%30). And house prices is 4 times higher than 2 years ago and buying a house is impossible for a family( teacher + engineer). But goverment give some oppurtunities for the people who bus the first house with small interest(less than 10...this is huge in other countries but here is so small) via Goverment Banks. Is this Haram? Can you explain that please? Bank is government and the project is government. I would like to buy a house. Wha should I do? Islamic bank gives %40 ratio for 1 year. So this is so hard. Could you help me? Thany You. BEST REGARDS
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Lecture slides now available at my website at www.almircolan.com/blog/troublewithriba (consider subscribing to my email updates if interested in this topic)
I’d like to share a simple explanation why it’s wrong. I told this to a young banker (who asks everyone the question why) and the person understood it with satisfaction for the first time.
Imagine a village with a hundred people and they have a barter system (wheat for onions). A guy lives up the mountain and he has a wonderful idea. He creates new coins and issues these coins as dollars. He feels this will facilitate trade in a very simple way. He issues the coins as loans. One dollar per person, so he issues $100. He charges 5% interest. And conditions the loan to be paid precisely one year later.
Trade goes up in economy, booms and everybody is able to have a job and do more than that. One year later: they have to return the money. Some people have more money than one dollar and are able to pay off the loan. Some people have less than one dollar and cannot pay off the loan.
So he issues new loans to those who can’t pay it off.
But the game is rigged! 100 people receiving $100 with 5% interest means one year later the mountain man should get $105. But the 5$ doesn’t exist! 😮 Someone will always be unable to pay off their loan! That’s just math.
Where does the 5$ come from? The man issues 5$ as a new loan WITH interest. The 5$ never existed. And it never will. And neither will the new interest that is to be charged.
I hope you read this.
Riba, yes of course, do you know many Muslim majority countries hold u.s Treasury bonds and it enables riba to spread around the world because the other countries use dollar to purchase Muslim majority countries oil for energy use??
Mashalah, thank you brother for this insightful explaination. Shukran.
It would be nice if we could see the lecture slides in the video too. Please take some measure for it.
I challenge you to answer this question honestly! What is better for an individual and societies if someone buys a $200k house through a bank with 0.0005(just for the sake of argument) of INTEREST rate or buy it from an Islamic bank for $300k( same House for 15 years mortgage)?
I recorded this for all the new visitors who are learning about the wisdom behind the prohibition of Riba for the first time. I would love to hear the useful points you gathered from this lecture and what else you would like me to cover.
i bought my first house when i was 23 with a nonqualifing fha [federal housing authority] mortgage. the original loan was from 1984 at 13%. i refied down to 9% in 1993. this allowed me to own a home rather than to continue to pay rent. why would this be bad?
May Allah rewards you and preserves you . Ameen!
@@michaelmalzahn-tx2zi
because even though it is not directly bad for you, but it is bad for the economy since it is a sale of dept not of asset which inflates the economy will in the long run affect you (as we are seeing now adays). Also it is not just about you but it is about the society that functions around you, which has the right to a non inflated economy.
make sure to rewatch the lecture because this was explained.
@@MohamedMohamed-ep1pu no, it is a sale of an asset, the house. in order to move that sale forward one takes a loan at interest. this is much better than paying rent for 30 years and having nothing to show for it after those 30 years. if you buy the house, then you own the house at the end of the mortgage. home ownership is one of the best things for an economy.
"has the right to a non inflated economy" how can you claim such a right? if a bird flu wipes out a percentage of the chickens being raised for food, the price of chicken is going to go up.
so tell me. if a country wants to build a massive infrastructure project, let's say a road and rail system that doesn't exist, they can't issue bonds to fund it? is this why so many islamic countries, the one's not sitting on massive oil reserves are so under developed?
@@michaelmalzahn-tx2zi Many unethical practices in life, including gambling and alcohol, might seem justifiable when judged solely from an individual’s perspective.
very insightful and scary to see how the economy is inflated beyond what we can actually produce. This made me realise how important it is for the world to adopt islamic-global finances to prevent such evil.
😂 It's an instrument pegged to the inflation rate and growth rate of economy... developing countries have positive IR while developed ones have zero or negative IR. It is not free money. It is a trade of asset. Ask any bank, a loan is an asset that is traded between banks.
You are against interest but arbitrage. Which is free money with no investment.
@@S0L4RFlarefree money only when you are getting it.
9:12 Almir shows us that either he is intentionally lying, or else he hasn't read the entire Holy Bible.
1. First, there is no prohibition against taking interest in the Holy Bible, except that you are not to take interest from poor people:
Exodus 22:25 If thou lend money to [any of] my people [that is] poor by thee, thou shalt not be to him as an usurer, neither shalt thou lay upon him usury.
.
2. You are not to get interest from a "brother", which, in context, means anyone from your own nation:
Deuteronomy 23:19 Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury: 20 Unto a stranger thou mayest lend upon usury; but unto thy brother thou shalt not lend upon usury: that the LORD thy God may bless thee in all that thou settest thine hand to in the land whither thou goest to possess it.
.
Wait! We see from the above text that God allows usury to be taken from a stranger!
.
Let's start reading and believing what the Holy Bible says, and follow the Son of God - Jesus Christ.
@@S0L4RFlareYou confuse usurious loans for trade.
Mashallah barakallah
What a beautiful explanation
Mashallah barakallah learned so much
Riba, yes of course, do you know many Muslim majority countries hold u.s Treasury bonds and it enables riba to spread around the world because the other countries use dollar to purchase Muslim majority countries oil for energy use??
yooo it's SQ! Salaam!
Riba is prohibited in all Divine faiths it is the main reason for destruction of humanity and is a major sin may ALLAH guide and protect us from it and reward you for these eye opening truths Aameen YARABB
Subhan Allah this is so important for the ummah but unfortunately not everyone comes accross such important videos
Share as much as u can
Loved the history and reference to Shakespeare and Judaism. Very good presentation, MashaAllah
May Allah bless you bro Almir Colan for this great presentation of RIBA issue... I wish I can have a tool to publicize this video to whole world at once ...
🤲
You are helping me so much making the right decisions for my business. I started when I was 20 years old and I have not used RIBA Alhamdulilah. It has been very difficult and recently I am trying to grow my business, but it seemed impossible before finding this channel. Thank you brother.
Join our new platform - it would be good to hear your story www.muslimmoneymatters.com
That’s great brother. I’ve had some small businesses aside from my regular job and I’ve been thinking about on how to grow without riba in the future. Good to see other brothers and sisters growing without Riba.
mashaAllah, a funny coincidence: I found this video of yours next to a news video on why Russia is implementing Islamic finance in banks on my RUclips recommendation. SubhanAllah, may Allah help us all learn from your explanations
I was raised in a Christian church and this is never talked about, eventhough it is in the Bible. I couldn't get over the fact that it is in there, but no one talks about it and no one follows it. I'm now learning about it from Muslims, cuz they are the only ones I know teaching it. Thank you.
Allahuma barek i can say i dont need to listen again topics about riba you nail it and we got it .
Thanks Almir, I have worked in "Conventional" Finance and particularly Corporate Finance for 5 years now. I build cashflow and securitization models. I have been following your explanations for a week, thankfully your video came up again. I also partticularly stressed Musharaka Mortgages only to notice that it greatly reduces, possibiy eliminates "Contagion" associated with recovery processes in a down market. I am more than willing to switch to any role for developing SC Products!
Many many thanks...Jazakallah Khayran
as salamu alaikum. bit of a random question but, why is your name abdul muttalib? muttalib isnt a name of Allah as far as I know its just "slave of one who seeks".
Jesus himself says it is better to get interest than to have no returns on your money at all in Matthew 25:27.
@@earlysdaJesus himself said so? In a book called Matthew? I hope you can see the flaw.
@@_Z.K_zakaria, you see, this video is especially directed at people who profess belief in the Qur'an and Holy Bible, to at least some degree. So to someone like yourself who does not believe in either of those books (it seems), it will seem strange. That doesn't make it any less true, because Jesus Christ is the Way, the Truth, and the Life.
@@earlysda I think you missed the point in my original comment, which attempted to highlight the fact that you take Matthew as verbatim Jesus commentary - despite Matthew being an unknown author of the book. ‘He said/she said’ scripture, which has been modified many times.
I believe in the Verbatim words of God through the preserved scripture of the Qur’an, revealed to the final messenger Muhammad, peace be upon him.
I invite you to read the Qur’an with an open heart and mind.
This is a wonderful and beneficial lecture for all Muslims. May Allah prolong your life and give you protection.
Thank you for your presentation, I had studied Islamic finance before but today I got more in depth knowledge.
Very interesting lecture. I did not know Almir Colan before, but I listened to the entire lecture (and subscribed). Thank you.
Salaam Almir Colan, Good to see you here and presenting your wonderful insights. Thanks for sharing.
Assalamualaikum brother. Very insightful and easy to digest video. Very concise and clear.
I found your earlier and shorter video on riba first. The one explaining about cdo and sub primes and how it let to the property bubble burst. I saw rhe movie "the big short" years ago, didnt fully understand how the burst actually came about and happen, but your video did an excellent job in explaining the whole premise of the movie.
Its really sad when people are left homeless and broke. And people are hoping that you will default on your loans so they will earn from insurance from your resulting failure. Thanks brother. Good stuff
Alhamdulillah.shk Almir.strive harder to save the ummah out ignorance in as far as Islamic transactions is concerned.
SubhanAllah, this makes me think about all the market manipulation done at Wall Street. Futures, Commodities trading without actual exchange of goods, derivatives, etc.
Baraka ALLAHOE feek for your top information from the Nederlands
Masha Allah, brother, may Allah bless you, your family and what you do to spread the message of Our Prophet, peace be upon him ❤
Something so simple but essential. Money to something then something to money.
Mash'Allahu may Allah protect us from fitna Ameen. Salam from west Africa the Gambia
The person who edited this wonderful speech, DID NOT DO JUSTICE. Probably to shorten the length. He put the words soTIGHTLY, that it became painful to hear. It appears a very “breathless “, GOD,
Please record and post as is!
thank you brother for explaining of riba from core.Jajakallahu khairan
May Allah grant you the highest level of Jennah for your great explanation and teaching
Barak Allah feek.
Alhamdulillah, Jazakallha bilkhair, my brother.
جزاک اللہ خیرا
Wonderful and insightful discussion. Jazakallah khayr
This was amazing. Jazakallahu Khayr Akhi Almir.
I would like you to go in more detail on transactions between the same type of good covered in the hadith for eg. gold for silver, wheat for barley, etc. Knowledge of permissible/prohibited in these types of transactions is not there amongst general muslims.
Very well explained. MashAllah.
JazakAllahu khairan, barakallahu feek
Very clear and extremely well explained. Thank you brother
MasyaAllah,,,barakalluhufikum brother
Very good lecture. Allah reward you plenty.
excellent ,may Allah save you from arrogance and pride(result of deep knowledge)
Thank you Mr. Almir Colan for the further clarification. What can a person do if let's say for example, he sends money from a european country to his homeland such as mine being Afghanistan. Exchanging Euros to Afghani, transfer markets have rule where they get to send money but will charge you let's say 5euros for every 100euros. So i think this will be riba as the party is only benefiting from the increase. I hope you can clarify it Sir.
That fee is for sending money and not riba. Anything that we charge for real service is fine. Commission, service fee, agency fee etc is ok.
@AlmirColan thank you for the clarification 🙏 I had the same question may Allah bless you 🙏 ❤
Mansha Allah" great explanation.
Brilliant, thank you Almir, that was very informative!
Jazzak Allah khair
بارك الله فيكم
jazakallahuakran kasiraa
JazakAllah Khair, thanks
جزاك اللهُ خيرًا
GREAT TOPIC
The global GDP for 2023 of the real economy is estimated to be $105 trillion whereas the global debt currently stands at $305 trillion with a US national debt of almost $33 trillion. What are the expected consequences of US and the world not being able to sustain their debt and interest repayments and given debt to gdp ratio is continuing to increase.
May Allah bless you Habibi. Very clear. Need more real
Life examples. Less hypothetical Otherwise very clear
Very informative lecture MashaAllah!
Would love for you to make a video on the effect of Riba on the wider economy. In other words, why riba leads to econmic turmoil, inflation and income inequality.
JazakAllah Khairun
@@takiyaazrin7562 I don't see the relevancy...
So what's your point?
Honour to listen to you
Thank you this is quite helpful. What about adding penalty fees in case of not paying the agreed monthly amounts?
I also have a question about that. It might be seen as a clever way to still collect interest.
@@nusaibahibraheem8183 yup that is being objection on Islamic banking, I haven’t been able clear it up for long. I have joined Almir’s community to better understand the topic and discuss the issue.
Thanks 🎉 very useful knowledge 👍🏻
I really appreciate your efforts to teach islamic economics, brother Almir. I have always thought much about interest and usury and which is rib'a. I would think that if there is no benefit in lending no body would lend and that society's businesses would be deprived of much needed loans.
Home loans are tripled increase by the mortgage amortization not as simple interest which is more human 😢
But si
Still not humanitarian banking and financial investment had made the values reach an illusionary unrealistic point that the poor are more poor and the rich richer what is Soo Good in a system like that that does not serve all humanity ? NONe😢
That's understood Noelle, but why are there not Muslim banks offering these loans to Muslims in the world? Why aren't these ideas practiced in the muslim countries?@@noellebazzi5618
Thank you my brother in Islam for this very important and needed presentation on RIBA. It’s one of the least understood topics in Islam. My question is about Turkey where I presently live. Turkey has recently taken billions of dollars in loans from IMF so doesn’t that put Turkey at war with Allah subhaana wa ta’aala. Can we expect fall of Turkey like the Othman Empire. Why did Erdoğan go Back on his word and raise interest rates. It didn’t even seem to work. The Lira is still in free fall and inflation is skyrocketing. Has Turkey destroyed its future.
As I'm writing this response, Türkiye has no even a penny debt to the IMF. Assuming you are talking about the 6.3 billion USD reserve funds, allocated by the IMF to Türkiye for fiscal year 2022, however the country didn't use those funds. To clarify, those funds are allocated automatically by the IMF to the member countries, and they may or may not apply to use those funds. Türkiye did not.
I have stayed away from riba till now alhamdu Lilla. Btw im 36 years old. A question that keeps popping up in my head is that Riba according to the authentic scriptures is valid only for unequal transactions of gold for gold, silver for silver, salt for salt, dates for dates, barley for barley and wheat for wheat. My question is in today's world no-one transacts in those items rather in paper currency. How does this relate or equate to the 7 items.
Gold and silver are like any other money that we use today 💰💶💷💴💳
@@AlmirColan Jazak Allahu Khairan for the prompt response.
Thanks for the information
Assalamu Alaikum, I'm in the UK and new to Islamic finance. I want to learn about buying property to rent out, avoiding Usury, and setting an ethical renting model. Any book recommendations or advice? Your help is much appreciated. Thank you.
wonderful and I subscribed , May Allah bless you dear
الله یجزیک الخیر
How are you doing Islamic finance with currencies created out of debt? I don't understand that.
Even in Torah (book by god to children of ISRAEL) it's written intrest is prohibited.
They changed it. So it's illegal for a Jew to take interest from a Jew but he can take it from a non Jew.
jazakAllah khayr brother
Asalomu aleykum va rahmatullohi va barakatuhu brother. Nice to see you. Jazak ALLAHu khayr!
Funnily enough, Sneakø indirectly brought me here.
بارك الله فيك
Barak Allah fikom brother Almir. Question: at 39:11 you displayed a slide about how interest based debt is much larger than the actual value of the goods and services, and then you said if people returned a few percent, you can't fulfill the returns from the actual values. How does selling an asset/product for more than its current cash value in exchange for time and installments not fall under the same case (what they call "Murabaha" today) and also cause the same issue if people owed the debt decide to get returns? Or does it not work out that way in Murabaha?
Interesting point. Leaving my mark here to get back if someone answers. I think murabaha is different from installment. In case of installment, my guess is because it doesn't create additional syntethic, fictional value. The price is clear at the start of the contract. The final price is not floating. If there's interest outside of the aggreed price (be it annual or because of late payment), that causes additional value that should not exist.
I think the fixed rate itself if we look in a bigger picture of financial system framework serve as a shield or a protection mechanism of the value of the money thru demand and supply and overall value of the goods and services in an economy from depreciating or appreciating or fluctuate in a sense of going far off from its actual value and risking of debtor from short of cash to fullfiled their loan installments...
Hence once the demand and supply of money in circulation are fixed or stabilized ,the only way of generating economic growth is thru real value creation in the economy thru producing more goods services interm of quality and quantity of the services and products available in the market hence generating a real growth to the economy not thru speculating superficial factors ..Once economy growth are driven or moved towards that way ,more and more healthy loans are needed from banking system and the money from the banking system will flow back into the market creating more productive economic growth ,real appreciating of value of money itself,improving buying powers of people and hence generate more value to the money itself and the economy as a whole....As buying power increase there's more plenty of money left for general public to spend more and making its more easy for them to repay their loans in the future .Meaning more money will circulate back into the market generating more economy opportunities for those taking loans to pay back their loan more ease as time goes by or this cycle or system being maintained down the road...thats my two cent opinion of mine on it
Your views on currencies around the world, as they have different exchange rates( higher quality exchanges for lower quality). Thanks
could you clarify how to protect (savings) money against inflation , while complying with the concept of Riba? In the context of a western country where islamic banking is not available.
The usual vehicles would be funds, bonds, obligations, 401k/pension funds, nft's, crypto, stocks, real estate and using the loan as leverage... But these are all not allowed as I understand.
Buying gold maybe?
Mashallah ♥️
Jazzak Allahu khayran. What have the ulema said about gold for silver, is that considered same for same?
Brother, how about buying a house & a car on a loan? Is it permissible? Jazakum Laha Khiera for sharing light on this controversial topic of our time. Greetings from the US.
Anything related with interest or riba is prohibited.
It is better to buy 2nd hand or cheap car
Or for house it's better to buy smaller house, and have blessing of Allah on the house & car
For me I prefer buy plot of land and build very cheap house with wood or bamboo
@@litfiana5417 jazakum laha khiera
JazakhAllahu khayran! Wish it was possible to translate to arabic text so that our parents could hear and understand this.
why don't you translate it yourself?
Assalamualaikum. Can i translate and repost this video, someday?
Walaykumu salam - yes, any time
Insightful!
Thank you very much
*Treat money as if it were the dirt below your feet. Because when dirt comes over your head, it becomes your grave*
Imam Ali (Ahlai Salam)
34:50- You said it is permissible to exchange land in Preston which is 500 square metres for 1000 square metres land in Roxbury Park. I thought it would NOT be permissible because land is not part of the commodity 6 mentioned in Hadith (gold, silver, wheat, barley, dates, salt) and it’s not something we buy on weight or volume, therefore does not apply to the 5th category of the rules or Riba/Trade. Please clarify.
I want to buy an investment property and build wealth outside of shares. Can I do this in an islamic way? I know those islamic deals still use the interest rate as the calculator for the repayments. If the others keep buying properties my children will stay poor, I want to buy properties
Salam, brother Almir Colan. I guess based on what you said about exchanges, I can’t buy gold on spot (online bank transfer) and then receive the gold some days later through shipment? And also I guess that would be the same if I told the dealer to store the gold in a vault for me until I come and
collect it on an agreed date?
Also, am I allowed to ask a friend of mine to collect the gold for me at spot. I.e. I’m paying it through online bank transfer, while he is collecting it for me and I will collect it from him in an agreed date?
JazakAllah
ribah is not just interest, what muslims often ignore is that the pieces itself that we call money is also ribah- banking is ribah
there is no such thing as shariah compliant banking, its the equivalent of putting a halaal stamp on a pig.
even the payment of taxation is ribah, since tax is used to pay back the interest in the national debt governments accumulate
Dude is onto nothing
one of the dumbest comments ive seen in a while, no offense.
When we want to buy a property through an Islamic Finance, does that mean that both parties bear the profit and loses? How is the proportion of the profit or lose, when it came to realisation?
What about money transaction?
It involves, buying money with money called exchange rate and profits called fees?
Thank you
Some people to confuse further add that interest is different from usury, because the person taking loan on Interest is doing it for profit, for he himself will invest the money in one or other form. While these same people try to fool people that RIBA is something when someone is in need and poor and if that person is given money on interest, that is Usury. In reality both are same.
There are so many reasons why this discussion, though helpful, is way off the course. It misses the basics of money itself. The fiat money is not a qualified quantity! It can not be called money. The fiat is issued on a debt bond over time to the treasury. It is a scale of time, not a weighed known quantity of a certain purity. Fiat then becomes a tool of control, of manipulation, of taxation and extraction of wealth. A productivity gambit. This is why to generate endless inflation, endless products must be made, and productivity increased.
When you do that with an instrument of known quantity, endless production actually lowers prices! It is a disincentive to produce in perpetuity, a disincentive to increase productivity. It is an on demand model. Its quantity is known... fiat issued on interest bonds needs added productivity and endless inflation to pay back the original. Ones with assets will remain wealthy in perpetuity.
We have known the surface implications forever now. It is time to dig deeper into the foundations of modern money.
Thank you Almir Colan.
Riba menyebabkan perbudakan modern yang kemudian menimbulkan terjadinya penghisapan kekayaan dari si miskin kepada si kaya. Kemiskinan struktural (kemiskinan yang disebabkan oleh ketidakadilan sistem dan bukan karena malas bekerja) muncul karena riba ini. Negara-negara berkembang tetap miskin karena riba hutang yang memberatkan yang harus dibayar kepada IMF, World Bank, hutang bilateral, dan lain-lainnya. Selain itu uang kertas tanpa jaminan emas juga menjadi salah satu sebab terjadinya perbudakan modern. Mata uang dengan nilai tukar lemah harus membayar jauh lebih mahal dibandingkan dengan mata uang kuat untuk sepotong humberger. Orang Islam yang hidup di dunia ketiga harus bekerja jauh lebih keras dibandingkan dengan negara-negara Barat dan negara-negara non Islam untuk mendapatkan standard barang yang sama karena dibayar jauh lebih murah.
Assalam Alaikum br. Almir, can you clarify the concept of lease vs renting that is confusing me. I have worked in car industry and i know that in conventional leasing of a vehicle involves inferest. Many scholors consider it halal because they say its renting. Im confused. Please clarify. JazakAllah Khair.
Walaykumu salam - In a lease or rental agreement, the subject matter of the contract is the use of a car. You are exchanging money for the benefit of using the car, which is a money-for-non-money transaction. This type of transaction is permissible. The term ‘interest’ in this conventional context is likely used as a substitute for ‘profit’ to indicate the rate of return in mathematical terms.
@@AlmirColan JazakAllah Br. Almir
Assalam o Alaikum
I'm doing real estate in Dubai and my one deal is in process at the moment. I'm a broker here so the buyer is using mortgage. My job was to show him the property he likes it and then the bank valuation team contacted me and I arranged a viewing of the apartment for them so they visited the apartment and valuated it to provide loan to the buyer so I just wanted to ask that I'm a middleman here connected with buyer/seller and I'm going to get the commission from the buyer as per Dubai real estate rule so the commission I'm getting for this will be halal for me or not as the buyer has taken a loan from the bank
mashallah good lecture brother almir but one question, if erdogan did the right thing to decrease the intrests why was it unseccussfull? was there a mistake?
Yes there was a mistake. He did not listen to orthodox economists and kept firing his central bankers who understood you needed to raise interest rates to stop inflation.
Asalam Aleikum! I don't have a problem with " Riba and its prohibition when money is representative of Gold and Silver or receipts of them which are redeemable ". However, I have a problem with the definition of Riba and its applications on " Fiat currency" One modern fiat currency is a mere piece of paper with fictitious value; no instrinsic value and unbacked by any asset. Two is Riba in this case refers to " interest; signorage; printing more currency; debt and or quantities easing. Three in Kenya, with mortgage after you pay annual interest; the Revenue Authority refunds you all the interest for the year. Thus your annual interest is netted out and you have paid only the Principal. In this case have you sinned or not?
As Salaamu Alaykum. How can you do non-RIBA transactions with fiat currencies? For example, if the annual inflation rate is 25%, the 100 Egyptian pounds you have at the beginning of the year would only be worth 75 pounds by the end of the year. Also today's central banks basically create this money out of thin air.
On point👍
Thanks!
Asc sheikh what do you think this so called no riba to buy houses like guidance residential, here in America, they will say profit sharing but I think it's another interest hidden, it's also very expensive than normal banks with interest. Please let me know what you think about this. Thanks
In Kenya, even Islamic banks replace the name interest with profit and charge at the going market interest rate. Wallahi no difference. Other financial institutions also claim to do sharia loans but all they do is replace the name with 'fees' and 'interest' and are sometimes are an 'Muslim margin. making them more expensive than conventional loans. They realized Muslims will go to great lengths to avoid the name interest so they make them buy the privilege.
Sir..May I ask do you meant that islamic finance nowadays is free from Riba?
All businesses are at loss due to the fact that, we lost and went astray.
Now it's the rebirth of our economic activities.
Is there going to be an economical disadvantage to Muslim countries who do not use the riba system because their GDP will be based on real output of a their country or is that an advantage if they grow their GDP that way since the other countries GDPs are inflated and can collapse at anytime???
You mentioned Turkiye embarking PPP. What exactly is it?
Why is money as base of the economic system kept in every religion? Is it similar to why slavery is kept? Why is keeping the spoils of war obtained from infidels / non-believers fine and interest is not?
Hallo, dear Almir, I am living in Turkey and here there is a huge inflation(%100 real, %60 explained) and interest rates(%30). And house prices is 4 times higher than 2 years ago and buying a house is impossible for a family( teacher + engineer). But goverment give some oppurtunities for the people who bus the first house with small interest(less than 10...this is huge in other countries but here is so small) via Goverment Banks. Is this Haram? Can you explain that please? Bank is government and the project is government. I would like to buy a house. Wha should I do? Islamic bank gives %40 ratio for 1 year. So this is so hard. Could you help me? Thany You. BEST REGARDS