Questions and Answers on Business Transactions

Question: I seek an Islamic ruling concerning an issue with Retirement Funds. The company manages the Retirement Plan. Each pay period, a small percentage of money was deducted from my paycheck and put into my retirement account. This money I will refer to as My portion.

Each pay period, the company would put a matching amount of money into my retirement account. This money I will refer to as the Company's portion. My Portion and the Company's Portion together collected interest over the term of the Plan. This money I will refer to as the Interest (Riba) Portion. I am ready to take out the retirement funds. I believe that My Portion is halaal, and therefore I can use My Portion as I desire.

One question I have is: "May I use the Company's Portion as I desire?" My other question is: "If they require me to take out the Interest Portion as a condition of the Retirement Plan, what may I use it for? May I use it for toilet paper, paint for the masjid, or other non-essentials?"

Answer: What is permissible for you from this is the money that is taken out from your check and the money that they give to you. As for the money, that they add as interest, and which they call "Interest Benefits", then it is not permissible for you to take it. And if you have no choice but to take that money, then it should only be used for public facilities, as we stated in a previous question about money made from interest. But the obligation is not to work in a company that deals with interest and which makes their money profit from interest-based banks.

So if you want to free yourself from this interest, then take your money, which was put as capital, and that is sufficient for you in shaa Allaah.

Question: I would like to know if there are any recommended books or scholars that deal with Islamic economics and business. This is a field of which I have great interest in, please advise me of the correct path to take.

Answer: From the old books, we advise you to read, are Kitaab Al-Amwaal of Abu 'Ubaid and Kitaab Al-Kharaaj of Al-Qaadee Abu Yusuf, the student of Abu Haneefah. And also refer to the works that Dr. Saloos wrote. He is a researcher, specializing in the field of Economics in Islaam. And he is from the most recent of authors who wrote on this subject in this time. And Allaah knows best.

Question: It is well known that gambling is forbidden in Islaam. But do the following cases enter the definition of gambling in Islaam, and is it permitted or not? Some Internet sites offer freely to choose 7 numbers out of49 . Everyday they sort out 7 numbers and if you found the 7 right numbers you win 1 million dollars. There is nothing to pay and no money to put in.

Answer: Any Muslim that has gained some Islaamic knowledge knows well that the money that is earned without working or laboring for it and which is dependent upon chance and fate, is gambling. Therefore, if this money comes as a result of one intending it and arranging for that and while knowing that this is gambling, then this is not permissible and not allowed. But if the money comes without intending it or wanting to participate in this gambling, then the ruling remains that this is gambling, but the money can be given away in support of public facilities (i.e. to build bridges, schools, etc.). If the person who receives the prize (i.e. money), knows that what he is in fact doing is gambling, then it is not permissible for him to take that money and use it.

Question: My question relates to Interest (Ribaa). Unfortunately, as an accountant I mistakenly deposited my family and my savings into interest-bearing deposit accounts. Having performed Hajj recently and researching Islaam with renewed vigor, I have calculated every penny of interest we have ever earned and wish to dispose of it. Can your learned guests please advise me what we should do with this money - as we do not wish to be held accountable for it on The Day Of Judgement. The amount is over £10, 000and we are prepared to follow whatever guidance Islaam provides regarding this matter.

Answer: The correct opinion found in the sayings of the scholars is that this money should be spent on public facilities. So it must not be spent on making Hajj or 'Umrah, nor can one use it to feed a needy person. Nor could he gain any personal benefit from it. But rather, it should be used for public facilities, such as in building bridges, or fixing streets or constructing parks or hospitals or schools.