Islam Solves World Poverty and Hunger

Introduction:

Islam is the religion and way of life that was revealed to humanity by our creator, Allah (swt) (click for definition). Since Allah ( humanityswt) is the one who created the heavens and the earth, and out of His unlimited mercy to mankind, He also revealed to us a way of life and a religion, Islam, that give us peace and happiness in our lives here on earth and in the afterlife. Islam was revealed as a practical religion that covers all aspects of our lives, and it is intended to be implemented in our lives. It brings peace and justice to earth, after all, who is more just and wise than Allah (swt), the creator of the heavens and the earth, the most knowledgeable?

As such, when implemented honestly and correctly, Islam provides solutions to all problems that are faced by humanity. One of the most widespread and dangerous problems faced by humanity is that of poverty, hunger and starvation. There is nothing more horrifying than the realization that as we live our happy lives here, millions of our fellow human beings live in hunger and face starvation. The majority of the world population today lives in poverty. It is clear that the world system we have set up today is unjust and inhumane. Otherwise, how can we allow this situation to continue with less than 10% of the world population controlling over 90% of the wealth and resources on this earth?

Islam, revealed to humanity over 1400 years ago, came with the most just and easy solution to the problem of poverty, hunger and starvation in this world. If Islam is implemented in the world today, the problem of poverty, hunger and starvation would be completely eliminated within a year. Islam, revealed to us by Allah (swt), the most knowledgeable, wise and just, solves the problem of poverty and hunger through several methods:

The Obligatory Zakat:

Islam makes it obligatory on every Muslim to pay a certain "tax", called Zakat, on their accumulated wealth. The money collected from this Zakat is to be distributed among the poor and needy.

The Arabic word "Zakat" means both 'purification' and 'growth'. One of the most important principles of Islam is that all things belong to Allah (swt), and that wealth is therefore held by human beings in trust. Our wealth is purified by setting aside a proportion for those in need, and, like the pruning of plants, this cutting back balances and encourages new growth in our wealth.

Zakat is due on accumulated wealth that has been in the possession of a person for at least one year. There are rules on how to pay Zakat on each type of possessions, such as gold, animals, crops, shares and so on. A certain percentage of each type of these possessions is to be paid as Zakat. Note that the Zakat is taken from excess wealth that a person is accumulating and has had in their possession for over a year. It is not paid on income. Therefore, people whose save nothing after covering their expenses with their income do not pay Zakat, and in fact may be eligible to receive Zakat money from others if their income does not cover all their needs.

The Zakat is to be distributed among people of the following categories, depending on need:

1) The Destitute: Those who don't have material possessions nor nor means of livelihood.
2) The Poor: Those with insufficient means of livelihood to meet basic needs.
3) The Indebted: Those who are in debt and have difficulty repaying it.
4) Stranded Traveller: The traveller who does not have enough money to complete their journey.
5) To Free Slaves: Zakat money is to be used to purchase slaves and free them. 6) New Muslims: Those who are new to Islam and require help to integrate themselves into the Muslims community.
7) In the Path of Allah: Zakat money can also be spent in the path of Allah. This can include many things, basically any project that helps Muslims or Islamic causes.
8) Zakat Workers: Those whose job it is to collect and re-distribute Zakat money get their salary from the Zakat money.

How Can Zakat Eliminate Poverty and Starvation?

If Islam was implemented in the world today, starvation would be eliminated from the planet within the first year. The Zakat due on agricultural products ranges from 5% to 10% of the produce. There is also Zakat due on various types of animals such as sheep, cows and camels. Imagine if 5%-10% of all agricultural production in the world, plus the required amounts on animals are distributed among the hungry and starving people of this world. The problem would be solved immedeatly. In the system we have today, some nations intentionally spoil a part of their agricultural production in order to maintain high prices for their produce. Can you see the difference between the system driven by human greed and the Islam which was imposed by Allah (swt), the most gracious and most merciful?

In addition, Islam can solve the problem of poverty. Consider the Zakat due on money. Zakat is due at 2.5% on money that has been in one's possession for over a year. Now consider this simple fact: Forbes Magazine reported that in 2004 there were 587 billionaires worldwide, with a combined net worth of $1.9 trillion dollars. If in 2004 these 587 richest people in the world paid zakat, we would have had $47.5 billion dollars distributed among the poor.

This calculation has just considered less than 600 individuals on this earth. What about if everyone contributed to a global Zakat fund in the same way? The total world GDP (summation of gross domestic product of all countries in the world) was estimated in 1999 to be $27,357.9 billion dollars. The 2.5% Zakat on this would amount to $683.95 billion dollars annually. These are just ball park figures to give the reader an idea of how much money Zakat can generate.

This Zakat money should not only be distributed for immedeate relief to the poor. It can also be given in the form of small business loans. For example, poor farmers can be given loans or even grants from this Zakat money to enable them to purchase the equipment and materials they need to lift them out of poverty. The same can be done for small business owners, or for the poor to set up small workshops or factories to lift them out of poverty once and for all. Within a few years, poverty would be eliminated or at least greatly reduced.

Optional Charity:

As discussed earlier, the obligatory Zakat imposed by Islam can easily solve the problems of poverty and starvation in the world. However, in addition to that, Islam greatly encourages Muslims to give extra charity. For example, the Prophet Mohammad (pbuh) once said that the person who sleeps full while his neighbour sleeps hungry is not a true believer. Islam also always encourages charity in all situations. For example, for the persons who are not able to fast in Ramadan, they are required to feed some poor people for each day they do not fast. And there are many such examples.

Examples of Charity in the holy Qur'an and the Sunnah:

Allah (swt) said: "And be steadfast in prayer and regular in charity" (Holy Qur'an, Chapter 2, verse 110).

Allah (swt) said addressing the messenger of Allah, Mohammad (pbuh): "Of their goods take alms (charity), so that you might purify and sanctify them, and pray on their behalf" (Holy Qur'an, Chapter 9, verse 103).

When the messenger of Allah, Mohammad (pbuh), sent one of his companions to call the people of Yemen to Islam, he asked him to tell them the basics of Islam, among which was: "... and tell them that Allah has made obligatory on them a charity that is taken from their rich and given to their poor..." (Reported by Bukhari and Muslim).

Allah (swt) said: "So he who gives (in charity) and fears (Allah), and (in all sincerity) testifies to the Best, We will indeed make smooth for him the path to Bliss. But he who is a greedy miser and thinks himself self-sufficient, And gives the lie to the Best, We will indeed make smooth for him the Path to Misery; Nor will his wealth profit him when he falls headlong (into the hell fire)." (Holy Qur'an, Chapter 92, verses 5-11).

Allah (swt) said: "By no means shall you attain righteousness unless ye give (freely) of that which you love; and whatever you give, Allah knows it well." (Holy Qur'an, Chapter 3, verse 92).

Allah (swt) said: "O ye who believe! Cancel not your charity by reminders of your generosity or by injury, like those who spend their substance to be seen of men, but believe neither in Allah nor in the Last Day. They are in Parable like a hard barren rock, on which is a little soil; on it falls heavy rain, which leaves it (just) a bare stone. They will be able to do nothing with aught they have earned. And Allah guideth not those who reject Faith." (Holy Qur'an, Chapter 2, verse 264).

Six wedding Dawa considerations

Reprinted from DawaNet.com
Social gatherings are an ideal place to make Dawa, and a Muslim wedding is a great example of this. Weddings are places where non-Muslims can learn about one facet of Islam in a relaxed social atmosphere without feeling they are being preached to.
Here are some practical tips you can use to make Dawa at a Muslim wedding:
1. Make sure you explain some aspects of what will take place at the wedding beforehand.
How should a guest dress at a Muslim gathering? How do Muslims greet the bride and the groom? What kind of gift would be suitable?
These are just some of the protocol issues that may come up during the wedding and could cause surprise and/or embarrassment for non-Muslim guests who may not understand Muslim practices relating to gender interaction or modesty, for instance.
Politely explain to them some of these issues beforehand so they can feel prepared and comfortable at the wedding.
2. Seating arrangements for non-Muslim guests.
What is the Imam saying? What is the oily orange substance being served?
These are some questions that non-Muslim guests may have during the wedding. It would be a good idea to have a family member or a friend who is open-minded and knows their Islam to be sitting with your non-Muslim guests during the wedding to answer these kinds of questions.
Perhaps your non-Muslim guest and their designated host could be introduced to each other as they arrive at the wedding so they can sit together.
In most Muslim weddings, non-Muslims are generally given a separate table to sit at. It's a better idea to seat them on different tables where your designated host can properly take care of them and they can meet with more Muslims.
3. Provide brief written material about the marriage.
What is a Nikah? How will the marriage be conducted?
Print out this fact sheet on the marriage ceremony and make sure all guests have a copy. This will be a great educational and Dawa tool for all guests, Muslim and non-Muslim. Perhaps you can even print it out on fancy paper, decorate it and make it a keepsake of the wedding.
4. Make sure everything is translated.
Try to have the Imam or at least someone else who can do it, translate the Duas (supplications) and Khutbah (sermon) of the marriage for the benefit of non-Arabic speaking Muslims and non-Muslims. Maybe the Imam can even explain why so much of the marriage ceremony is being conducted in Arabic.
5. Ask the Imam to speak briefly about Islamic social life.
A short, wise speech by the Imam or someone else who is qualified to do it, on Islamic social life will give a broader understanding of marriage and family from an Islamic perspective. It is important that the speaker knows English well enough not to offend people's sensibilities in his or her choice of words. The speaker should be especially careful how he or she presents the role of the wife in an Islamic marriage. Too often, speakers at weddings have presented a Muslim wife's position as that of a doormat instead of a partner in a relationship of faith, love and compassion.
6. Be on time.
What could be the worse Dawa than this: you invite guests at 6 p.m. and you, the host, show up at 8 p.m. Please plan ahead to be on time. If you expect a delay, let your guests know what time is suitable to arrive at the wedding.

United Arab Emirates: UAE Laws and Islamic Sharia: Some Practical Issues

The laws of the UAE and DIFC are designed to support the use of Islamic finance but in practice there are various issues regarding the practical implementation of Islamic Sharia which arise. Alan Rodgers highlights some of these issues.

In brief:

• Various issues exist with regards to the practical application of Islamic Sharia'a doctrines in Islamic Finance transactions in the UAE.
• Governing law and Islamic Sharia, in some instances are incompatible and care should be taken where Islamic Sharia is stated as prevailing over governing law.
• The capacity of Islamic Institutions is a risk that needs to be addressed following the recent TID v Blom Development Bank case.

The basis and context of UAE law and Islamic Sharia within contracts

Articles 1, 2 and 3 of The Federal Civil Code incorporate aspects of Islamic Sharia and Islamic jurisprudence into the framework of law governing the UAE. The law states that, in the first instance, governing law should be applied, failing which, principles of Islamic Sharia should be relied upon. The Civil Code also addresses most of the recognised Islamic Sharia contractual instruments such as; Ijara, Wakala, Mudaraba and Salam, and provides guidance on legal issues such as gambling, betting and interest, and legislates accordingly in the context of civil and commercial circumstances and public policy.

Governing law and Islamic Sharia principles

A practice has crept into Islamic documentation which sometimes provides that where there is a conflict between governing law, Islamic Sharia principles will prevail. This practice should be avoided as it creates an unnecessary conflict between legislation and doctrines which might destabilise a contract.
In practice, there can only be one governing law. To say that Islamic Sharia also governs or takes precedence over governing law is illogical because the governing law is fixed and cannot be superseded by doctrines. Islamic Sharia is governed by several doctrines and the application of these doctrines is dependant on the various interpretations to which differing groups of Islamic scholars subscribe.
UAE Islamic finance institutions (IFIs)

In the UAE, IFIs are regulated by the UAE Central Bank. Under Law No. 6 of 1985, IFIs are permitted to carry out commercial, industrial and trade activities, acquire real estate, receive deposits and invest in funds all on their own account. Under their memo and articles, they must have a Sharia supervisory board of no less than three members.
Central Bank resolution 165/6/2004 contains a number of provisions intended to regulate the activities of Islamic institutions, for instance an IFI can subscribe for shares and sukuks or finance an entity or person up to a maximum of 7% of its own capital unless the Central Bank gives approval to exceed this limit.
Islamic finance in practice: areas of uncertainty

There are some areas, in practice, which illustrate uncertainties between UAE law and Islamic Sharia principles and some of these instances are referred to below:

• Interest: Charging interest is not permitted under Islamic Sharia, however, under Article 76 of the Commercial Code, it is permitted.
• Hedging and gambling: Gambling is prohibited in the UAE, but debate continues over whether derivatives and other exotic banking products are Islamically acceptable and enforceable under UAE law.
• Sukuks or Commercial Bonds: Most practitioners consider sukuks to be equity rather than debt based instruments, however, in practice there have been examples of sukuks dressed up to look like bonds to accommodate international investors. If the sukuk is considered to be a bond then it is likely to be caught by Articles 179 – 180 of the UAE Companies Law which imposes material restrictions on the issuance of bonds and debentures.
• Ijara or real estate lease? Some UAE courts appear to be unclear as to whether Ijara used in residential Islamic financing is a finance instrument or a real estate instrument. If they are the latter, the issue arises as to whether it is void for lack of registration at the land registry.
• Forward leases: Different doctrines of Islamic Sharia either permit or forbid forward leases. In conventional terms a forward lease is a lease for un-built property. Under some Sharia doctrines an un-built property cannot be enjoyed by a lessee and therefore cannot be granted.
• Islamic finance in the courts – capacity risk: The English court case of TID v Blom Development Bank recently highlighted the dangers of IFIs who claim that they lack capacity to honour their debts. In this case, TID claimed that to uphold a wakala that it had entered into with Blom would be un-Islamic and a breach of its statutes. This case raises a number of issues, not least the value of an IFI's fatwa as issued by its Sharia supervisory board, which TID had obtained. It highlights that a fatwa may be simply disregarded if the entity in question maintains that the instrument is ultra vires its statutes.
• Tier 2 Capital issues: In relation to Tier 2 capital financing where IFIs are the recipients of funds, the issue is how to treat such funding if it is deeply subordinated and convertible. Would it be treated as capital or debt? The answer is unclear in the UAE but in practice, a wakala may be considered appropriate by some IFIs to evidence tier 2 capital funding but this is largely dependant on the IFIs Sharia supervisory board opinions.

DIFC laws: untested legal framework

The Dubai Financial Services Authority (DFSA) has in place an Islamic Sharia legal regime underpinned by the Law Regulating Islamic Financial Business, but it remains to be tested. To this date, there are no reported decisions.
Conclusion

The laws of the UAE and DIFC are more supportive of Islamic Sharia in comparison for instance to English law, because such laws are either based on Islamic Sharia principles or contain specific rules for Islamic Sharia compliance. However, a reccurring issue in Islamic financing in the UAE is the apparent lack of homogeneity between different schools of Islamic doctrines and their Sharia boards' idiosyncratic approach to some aspects of Islamic financing such as the use of instruments like murabaha and wakala, coupled with the lack of conformity between governing law and Islamic Sharia principles.