As per Islamic teachings, other than the explicitly
identified impermissible sources of income, every
other source of income is permissible in which
the benefits are enjoyed by all the concerning
parties on just basis.
Allah in Holy Quran says:
“Do not devour one another’s property
wrongfully, nor throw it before the judges in
order to devour a portion of other’s property
sinfully and knowingly.” (Al-Baqarah: 188)
“Do not devour another’s property wrongfully –
unless it be by trade based on mutual
consent.” (Al-Nisa: 29)
Sources of Income Prohibited In Islam
a) Bribery (Al-Baqarah: 188).
b) Usurping others’ property (Al-Baqarah: 188).
c) Fraud (Al-Imran: 161).
d) Stealing and robbery (Al-Maida: 38).
e) Income from sources of vulgarity (Al-Noor:
19).
f) Gambling (Al-Maida: 90).
g) Wine and its business (Al-Maida: 90).
h) Interest (Al-Baqarah: 275).


Moral Directives of Islam in Conducting Business
Moral Conduct in Entrepreneurship

“And measure full when you measure. And weigh
with an even balance. This is better and its end
is good.” [Al-Bani-Israel: 35]
“They who hoard up gold and silver and spend it
not in the way of Allah, unto them give tidings (O
Muhammad) of a painful doom.” [Al-Tauba: 34]
“You resort to oaths as instruments of mutual
deceit, so that a person might take greater
advantage than another; although, Allah puts you
to the test through this. Surely, on the Day of
Resurrection, He will make clear the truth
concerning the matters over which you
differed.” [Al-Nahl: 92]
“Who so desires the reward of the world, then
with Allah is the reward both of the world and of
the Hereafter. And Allah is Hearing, Seeing.” [Al-
Nisa:134]
“And that the man will not get, but what he
endeavors. And that his endeavor shall soon be
seen.” [An-Najm: 39-40]
“O Believers! Whenever you lend money for a
particular period, write and someone among you
must write it justly. And the one who can write
must not refuse.” [Al-Baqara: 282]
Prophet Muhammad (pbuh) said: “Whosoever
sells a defective product without disclosing its
defect to the purchaser, shall earn the
permanent anger of Almighty Allah and the
angels continuously curse such a person.” [Ibn-e-
Maja]
Prophet Muhammad (pbuh) said: “The seller and
the buyer have the right to keep or return the
goods as long as they have not parted or till they
part; and if both the parties spoke the truth and
described the defects and qualities [of the
goods], then they would be blessed in their
transaction, and if they told lies or hid
something, then the blessings of their transaction
would be lost.” [Bukhari]
Prophet Muhammad (pbuh) has exhorted that we
should refrain from taking oaths unnecessarily;
for although, it helps in the sale of one’s
products, it reduces the blessings. [Bukhari &
Muslim]
Prophet Muhammad (pbuh) said: “If anyone
would like Allah to save him from the hardships
of the Day of Resurrection, he should give more
time to his debtor who is short of money, or
remit his debt altogether.” [Muslim]
Prophet Muhammad (pbuh) said: “May Allah’s
mercy be on him who is lenient in his buying,
selling, and in demanding back his money [or
debts].” [Bukhari & Tirmidhi]
Prophet Muhammad (pbuh) said: “A time will
come upon the people when one will not care
how one earns money, i.e. legally or
illegally.” [Bukhari]
Prophet Muhammad (pbuh) said: “The flesh and
body that is raised on unlawful sustenance shall
not enter Paradise. Hell is more deserving to the
flesh that grows on one’s body out of unlawful
sustenance.” [Ahmad]
Prophet Muhammad (pbuh) said: “The truthful
and trustworthy businessman will be in the
company of Prophets, saints and martyrs on the
Day of Judgment.” [Darimi & Tirmidhi]
Prophet Muhammad (pbuh) said: “And what is
most likely to send people to Paradise? Being
conscious of Allah and good manners.” [Bukhari,
Tirmidhi & Ahmed]


Islamic Teachings and Unethical Trade Practices

“Allah will deprive usury of all blessing, but will
give increase for deeds of charity.” [Al-Baqara:
276]
“Woe to those that deal in fraud. Those who,
when they have to receive by measure from
men, exact full measure. But, when they have to
give by measure or weight to men, give less than
due. Do they not think that they will be called to
account?” [Al-Mutaffifin:1-4]
Keeping the commodities of general use in
possession and not supplying them in the market
for the sake of increasing the price is prohibited.
[Ahmed-Bin-Hanbal]
Prophet Muhammad (pbuh) said: “No one hoards
but the traitors (i.e. the sinners).” [Abu Da’ud]
Prophet Muhammad (pbuh) said: “The importer
[of an essential commodity] into the town will be
fed [by Allah], and the hoarder will have [Allah’s]
curse upon him.” [Ibn Majah]
Prophet Muhammad (pbuh) said: “Allah’s
Messenger cursed the one who accepts interest
and the one who pays, and the one who records
it, and the two witnesses; and he said: They are
all equal.” [Muslim]
The Apostle of Allah (pbuh) cursed the one who
pays bribes and the one who takes bribes. [Abu
Da’ud]
Prophet Muhammad (pbuh) said: “Do not harbor
envy against one another; do not outbid one
another [with a view to raising the price]; do not
bear aversion against one another; do not bear
enmity against one another; one of you should
not enter into a transaction when the other has
already entered into it; and be fellow brothers
and true servants of Allah.” [Muslim]
Trying to buy commodities before they reach
market is prohibited because market will decide
the price. [Muslim]
Futures and Forward Trading: Islamic View
Prophet Muhammad (pbuh) said: “He who buys
food grain should not sell it until he has taken
possession of it.” [Muslim]


Analogical Deduction in Matters: Islamic View

Prophet Muhammad (pbuh) said: “What is lawful
is evident and what is unlawful is evident, and in
between them are the doubtful things which
many people do not know. So he who guards
against doubtful things keeps his religion and
honor blameless, and he who indulges in doubtful
things indulges in fact in unlawful things, just as
a shepherd who pastures his animals round a
preserve will soon pasture them in it. Beware,
every king has a preserve, and the things Allah
has declared unlawful are His preserves. Beware,
in the body there is a piece of flesh; if it is
sound, the whole body is sound and if it is
corrupt, the whole body is corrupt.” [Bukhari &
Muslim]


Benefits of Honest Conduct in Partnership

Prophet Muhammad (pbuh) has said that
Almighty Allah proclaims: “I am a one third
partner of a two man partnership until one of
them acts dishonestly to his partner, and, in such
an event, I then leave them.” [Abu Da’ud]
The importance of Paying One’s Liability
Prophet Muhammad (pbuh) said: “After the
major sins which must be avoided, the greatest
sin is that someone dies in a state of debt and
leaves behind no asset to pay it off.” [Darimi]
Job Responsibility of Employee: Islamic View
Prophet Muhammad (pbuh) said: “The honest
treasurer who gives willingly what he is ordered
to give, is one of the two charitable persons,
(the second being the owner).” [Mishka’at]


Responsibility of Employer: Islamic View

Prophet Muhammad (pbuh) said: “Give the labor
his wage before his sweat dries.” [Ibn-e-Majah]
Prophet Muhammad (pbuh) said: “Those are
your brothers [workers under you] who are
around you; Allah has placed them under you. So,
if anyone of you has someone under him, he
should feed him out of what he himself eats,
give him clothes like what he himself puts on,
and do not put so much burden on him that he is
not able to bear, [and if that be the case], then
lend your help to him.” [Bukhari]
Prophet Muhammad (pbuh) said: “I will be foe to
three persons on the Last Day: one of them
being the one who does not give dues to the
servant he employs even after he has fulfilled his
duty.” [Bukhari]


Justice and Honesty: Islamic View

“O believers! Stand firmly for justice, giving
witness for Allah, may be therein your own loss,
or of your parents or of your relations. Against
whom you be a witness, he be a rich or be a
poor, in any case Allah has more power than
anyone over them, therefore follow not passion
lest you may be far away from justice; and if you
distort or turn your face, then Allah is aware of
your doings.” [Al-Nisa: 135]
“O believers! Stand-up firmly by the
Commandments of Allah, bearing witness with
justice and let not the enmity of any people
incite you that you should not do justice. Do
justice that is nearer to piety and fear Allah,
undoubtedly, Allah is aware of your doings.” [Al-
Maida: 8]
Gender and Ethnic Discrimination: Islamic View
“O people! We created you from one man and
one woman and made you divided in branches
and tribes so that you may recognize one
another. Undoubtedly, the most respected among
you in the sight of Allah is the one who is more
pious. Verily, Allah is knowing, Aware.” [Al-
Hujurat: 13]


Directives of Islam to an Earning Individual
Encouragement for Welfare Spending

“…Remember, the example of those who spend in
the way of Allah is like that of a grain, which
sprouts into seven ears, producing a hundred
grains in each ear. Allah [by His mercy]
increases manifold [the rewards of such deeds]
for whom He wills. And Indeed, Allah is
extremely bountiful [in rewarding His servants],
fully aware [of your circumstances and
deeds].” [Al-Baqara: 261]
“Those needy ones who are wholly wrapped up in
the cause of Allah, and who are hindered from
moving about the earth in search of their
livelihood especially deserve help. He who is
unaware of their circumstances supposes them
to be wealthy because of their dignified bearing,
but you will know them by their countenance,
although they do not go about begging people
with importunity. And whatever wealth you will
spend on helping them, Allah will know of it.” [Al-
Baqara: 273]
“Look, you are being called upon to expend in
Allah’s Way, yet some of you are being niggardly,
whereas the one who is niggardly is, in fact,
being niggardly only to himself. Allah is Self-
Sufficient. It is you who are the needy. If you
turn away, Allah will replace you by another
people, and they will not be like
you.” [Muhammad: 38]
“(O Prophet!) Tell those of My servants who
believe that they should establish prayer and
spend out of what We have provided them with,
both secretly and openly, before there arrives the
Day when there will be no bargaining, nor any
mutual befriending.” [Ibrahim: 31]
“Have you seen him who belies the rewards and
punishments of the Hereafter? He it is, who
drives away the orphan and does not urge giving
away the food to the poor.” (Al-Ma’un: 1 – 3)
“Those who blame Muslims who give charity
willingly and laugh at those who get nothing but
with their hard labor, Allah will punish them for
their laughing and for them, is the painful.” [Al-
Tauba: 79]
Prophet Muhammad (pbuh) said: “Spend, and do
not count, lest Allah counts against you. Do not
withhold your money, lest Allah withholds from
you. Spend what you can.” [Bukhari & Muslim].
Prophet Muhammad (pbuh) said: “The Lord’s
commandment for every one of His slaves is,
‘Spend on others, and I will spend on
you’.” [Bukhari & Muslim]


Attitude of the Giver of Charity

“Those who spend their wealth in the way of
Allah and do not follow up their spending by
stressing their benevolence and causing hurt, will
find their reward secure with their Lord. They
have no cause for fear and grief. To speak a kind
word and to forgive people’s faults is better than
charity followed by hurt. Allah is All-Sufficient,
All-Forbearing. Believers! Do not nullify your acts
of charity by stressing your benevolence and
causing hurt as does he who spends his wealth
only to be seen by men and does not believe in
Allah and the Last Day. The example of his
spending is that of a rock with a thin coating of
earth upon it. When a heavy rain smites it, the
earth is washed away, leaving the rock bare.
Such people derive no gain from their acts of
charity. Allah does not set the deniers of the
Truth on the right way.” [Al-Baqara: 262 – 264]


Islamic View on Unscrupulous Consumption

“Give to the near of kin his due, and also to the
needy and the wayfarers. Do not squander your
wealth wastefully; for those who squander
wastefully are Satan’s brothers, and Satan is
ever ungrateful to his Lord.” [Al-Bani-Israel: 26 –
27]
“Do not keep your hand fastened to your neck
nor outspread it, altogether widespread, for you
will be left sitting rebuked, destitute.” [Al-Bani-
Israel: 29]
“Those people, who when they spend, are neither
extravagant nor miserly but keep the golden
mean between the two (extremes).” [Al-Furqan:
67]
Prophet Muhammad (pbuh) said: “When you eat,
drink, give charity and wear clothes, let no
extravagance or pride be mixed up with what you
do.” [Ibn Maja & Nasai]


Stinginess and Wealth Accumulation: Islamic
View

“Those who do not spend their wealth that has
been given to them by Allah must not think that
it is good for them; indeed it is bad for
them.” (Al-Imran: 180)
“… Allah does not love the arrogant and the
boastful, who are niggardly and bid others to be
niggardly and conceal the bounty which Allah
has bestowed upon them. We have kept in
readiness a humiliating chastisement for such
deniers (of Allah’s bounty).” [Al-Nisa: 36-37]
Prophet Muhammad (pbuh) said: “Avoid doing
injustice to others, for on the Day of Judgment,
it will turn into manifold darkness, and safeguard
yourself against miserliness, for it ruined those
who were before you. It incited them to murder
and treating the unlawful as lawful.” [Muslim]
Prophet Muhammad (pbuh) said: “There are two
habits which are never present together in a
believer, i.e. miserliness and bad
manners.” [Tirmidhi]
Prophet Muhammad (pbuh) said: “When
someone is made rich but he does not pay Zakat
for his wealth, then on the Day of Judgment his
money will be turned into a poisonous snake with
two black spots on its head. It will coil around
his neck and bite his cheeks and say: ‘I am your
wealth, I am your treasure’. Then the Prophet
recited verse Al Imran: 180.” [Bukhari]
Paying Zakat
“Say your prayers (Namaaz) and pay Zakat.” [Al-
Muzammil: 20]
“Establish prayer and dispense the purifying alms
(Zakat) and bow in worship with those who
bow.” [Al-Baqara: 43]

Entrepreneurship Versus Dependency

Prophet Muhammad (pbuh) said: “The upper
hand is better than the lower hand (i.e. he who
gives in charity is better than him who takes it).
One should start giving first to his dependents.
And the best object of charity is that which is
given by a wealthy person (from the money
which is left after his expenses).” [Bukhari]
Social Responsibility: Islamic View
Prophet Muhammad (pbuh) said: “If any Muslim
plants something or sows seed from which a
man, a bird or an animal eats, it counts as a
charity for him.” [Bukhari & Muslim]


Communal Development: Islamic View

Prophet Muhammad (pbuh) said: “The best
charity is that which is practiced by a wealthy
person. And start giving first to your
dependents.” [Bukhari]
Prophet Muhammad (pbuh) said: “To give
something to a poor man brings one reward,
while giving the same to a needy relation brings
two: one for charity and the other for respecting
the family ties.” [Ahmad, Ibn Majah, Nasai &
Tirmidhi]

Utility and Satisfaction: Islamic View

Prophet Muhammad (pbuh) said: “Wealth is not
in having vast riches, it is in
contentment.” [Bukhari & Muslim]

That is the beauty of Islam. It touches on all aspects of life. I wonder why Islamic banking is yet to take a foothold in the Nigerian banking scene as it has in some countries.

coveredchic:
That is the beauty of Islam. It touches on all aspects of life. I wonder why Islamic banking is yet to take a foothold in the Nigerian banking scene as it has in some countries.

hatred and hypocrisy won't let them... Even though there's Islamic banks in UK and some other countries in the world

Masha Allah. Thanks for the reminder. Jazakhallahu khairan. May Allah reward you abundantly. And may he in his infinite mercy and wisdom continue to guide on to the right part. May he also continue to unite the Ummah. Jummah Kareem you brothers and sisters in Islam.

Love Islam ...YES am a Muslim may Allah continue to guild and lead us

Masha Allah

So many beautiful teachings in islam. So blessed to be a muslim.

JazakAllah khayran. I'm proud to be a Muslim. Alhamdulillah.

islam is perfect but am not, if I do anything bad, blame it on me not my religion.

The beauty of Islam is endless. Masha Allah
Am still struggling to stay clean of the above. May Allah guide me to stay clean

Jazakumullahu Khairan Yaa Mu'minuun. Alhamdulilah

Jazakumullah khairan for the wonderful admonition

Jazakumulahu khairan.

Jazakumullahu Khairan

May Almighty Allah reward you in abundance for this write up. jazakum Allahu Kahran.

Jazakummullahu khayra

Educative

Nice post . Barakallahu fikum.

Al Qur'an is just so complete....with Qur'an and Hadith, everything in a man's life as been touched...the way to get married, the way to divorce, the way to bear offspring and bring them up, crime issues,...I really thank almighty Allah for making me a muslim...alhamdullilah!

Good piece... Jazakallahu khayran

Islam is special. fajazakum lahu khairan

Jazakallahu Khayran