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The Proposed Islamic Banking By Central Bank of Nigeria – The Way Forward

The Proposed Islamic Banking By Central Bank of Nigeria – The Way Forward 150 150

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The Banking institution is a place where individuals or corporate organizations alike deposit their money for personal or business transactions for the purpose of savings, current or fixed transactions that would yield profit over a particular period of time. Nigeria as one of the growing economies of the world has taken the right step to restructure the banking system in the country. Dating back to the year 2005 where all the existing banks were mandated to re-capitalize to a minimum balance of Twenty five billion Naira or risk losing its operating licenses during the leadership of Prof. Charles Chukwuemeka Soludo, the then Governor of Nigeria’s apex bank, Central Bank of Nigeria.

Interestingly, this paved way for an organized and thriving banking sector where some of the banks met the expected benchmark while others merged and few dropped by the wayside. Nonetheless, this reform created free flow of capital funds for the banks to play around with – ushering of universal banking. One would not forget the role the banks played in the Capital market during the boom era where investors’ borrowed loans or applied for a margin loan facility from these banks ranging from 7% to 20% interest rates in order to reap bountiful profits on their appreciated stocks invested. Unfortunately, the proliferation of all manner of deals in our capital market over time accounted for the down turn of the economy. It must also be mentioned that Africa was not alone in this economic impasse as most countries of the world suffered the same fate including the United States of America.

In their bid to restore the good old days, economic experts and world scholars proffered solutions to revive the economy. Nigeria was not left out in the fight. With the emergence of Mallam Sanusi Lamido Sanusi as the next Governor of Central Bank of Nigeria succeeding Prof. Charles C. Soludo, he swung into action to continue on the good works of his predecessor. Between 2009 and 2010, about five bank chiefs were indicted and prosecuted for wrong use of depositors funds ranging from personal misappropriation of funds, unauthorized loans with no collateral and wasteful expenses. While others are presently on trial. Having seen the good works of the new Central Bank of Nigeria Governor, the Presidency recently established the Asset Management Corporation of Nigeria. The objectives of the Asset Management Corporation of Nigeria is to acquire ‘toxic’ assets of the troubled banks and would take majority shareholding of the insolvent banks after plugging their equity shortfalls. The public commentators commended the government for this initiative which gradually restored the confidence of the investors to invest in both the money and capital markets. No wonder in 26 April 2011 the prestigious Times Magazine honored Sanusi Lamido Sanusi as one of the 100 Most Influential People in the World in a grand Time Gala Award ceremony held in United States of America. Though, in as much as the reforms may seem to check the excesses of the bank operations, the adverse effects are quite frightening as the capital and money markets are presently witnessing low investors confidence following another purchase of three banks (Afribank, BankPHB and Spring Bank) by three relatively unknown companies (Main street, Keystone and Enterprise) respectively on August 5th, 2011 by the Sanusi led Central Bank of Nigeria.

However, at the beginning of 2011, Mallam Sanusi Lamido Sanusi re-opened the implementation of Non-interest banking, popularly known as Islamic Banking, which was initially introduced by his predecessor as one of the verifiable tools to revive the negatively skewed economy. According to Wikipedia, Worlds free encyclopedia, “interest-free banking seems to be very recent origin whereby a working partner gets a greater profit share compared to a sleeping (non-working) partner” What this simply means is that both the banks and investors (working partner) would get a greater profit share after a certain business transaction. One would ask, would this build the economic growth of the nation as being practiced in United Kingdom, Malaysia, etc? Definitely, it would build the fortunes of our economy but how we go about it is what is technically wrong. Please read Business day online of 29th June, 2011 for more explanation. The CBN Governor has the right to talk about the benefits of any product or scheme the apex bank is rolling out, but attaching more of the religious sentiments than professional cum economic gains, would sway the country to a very rough edge.

This proposed style of banking has generated heated arguments and debates across sections of the country. Remember that Nigeria is a secular state with almost equal number of Christian and Muslim faithful in population not to talk of other religious and traditional groups. For instance, the leadership of the Christian Association of Nigeria (CAN) has strongly opposed to the implementation of the Islamic Banking citing some wrong approaches by the Sanusi led Central Bank of Nigeria as using the state funds to promote the implementation of the scheme with no recourse to other religious groups in the country. The country is still facing serious security threats arising from kidnapping, militancy and most worrying, the terrorist attacks by the dreaded sect, Boko Haram especially in the Federal Capital (Abuja) and other northern parts of the country. It is surprising to know that the Presidency have been silent on the matter which needs an urgent intervention to put the facts right as the masses want better governance in terms of economic and social-political gains.

Whatever the outcome of the proposed Islamic Banking by the Central Bank of Nigeria would be, the apex body should please consider the following points as the way forward:

1. That the implementation processes of the non-interest (Islamic) banking should be done in strict adherence to the laid down procedures of the regulatory authority – Central Bank of Nigeria.

2. That It should also have greater benefits for the investors of the Islamic banking without directly or indirectly affecting other investors of interest banking in the same sector.

3. That the Central Bank of Nigeria should please continue to create more public awareness of the non-interest (Islamic) banking by having a round table discussion with all stake holders which includes: Religious sects, Economic experts, Law makers, Government officials and the Media to douse any misconception of the proposed scheme.

The fact that the non-interest (Islamic) banking with its’ numerous economic benefits as been practiced by some countries of the world, the Central Bank of Nigeria under her current leadership have to convince the over enlightened 55% Nigerians on its benefits without negatively affecting the other interest party for economic growth and tranquility.

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Source by Uzoma Amaole

Introduction to Islamic Banking

Introduction to Islamic Banking 150 150

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The most distinguishing feature of the Islamic economic system is the prohibition of interest. Islamic economic principles have prominently been applied in financial industry especially in banking. Islamic Finance is growing in multiple dimensions and is now spreading in other financial sectors like insurance, structured finance, project finance, mutual funds, syndicated finance, investment banking etc. On the geographical level too, Islamic banking has grown from Middle East to Europe and now is well positioned in South Asian markets as well.

Shariah compliance also ensures Corporate Social Responsibility (CSR) and ethical compliance. Islamic banks do not conduct business with companies producing tobacco, alcohol or engaged in business of gambling, casino, nightclubs, prostitution etc. This mechanism has given Islamic banking the name of ‘ethical banking’ in Europe.

The balance sheet of Islamic banks is capable of taking financial shocks. Islamic banks are not obliged to give fixed return to their depositors and general creditors. The creditors, shareholders and depositors share and participate in the bank’s business. Therefore, if incase, there is a shock on asset side (NPL increasing), Islamic banks will be able to share this loss with their depositors and shareholders.

Islamic banks cannot rollover loans. Therefore, the packaging and repackaging of loans and then issuing more and more debt securities on the back of these non performing loans cannot legally happen in Islamic Banks. Islamic banks are obliged to have backing of assets in all their investments. Therefore, Islamic banks losses even theoretically cannot go beyond the value of the real asset.

Financing Operations of Islamic Banks

For the provision of finance, following modes are used in Islamic banking.

Diminishing Musharakah

In Diminishing Musharakah, the customer approaches the bank for joint purchase of an asset/property. It is referred to as ‘Diminishing Musharakah’ because the ownership stake of the tenant increases and that of the bank decreases or diminishes with the passage of time. The rent decreases as the ownership stake of tenant increases. The share of the bank in asset/property is divided into units. These units are purchased by the customer periodically until he has purchased all the units. After the customer has purchased all the units of the bank, he becomes the sole owner of the asset/property.

Murabaha Muajjal

Murabaha is a deferred payment sale transaction. Murabaha is used in working capital financing, SME financing and trade financing. The Process flow of Murabaha is as follows:

Islamic bank and the client sign a Master Murabaha Finance Agreement and an agency agreement. According to the agency agreement, the customer purchases goods from the supplier on bank’s behalf. The customer undertakes to purchase the asset from the bank. It is a one-sided promise and undertaking. The bank pays the supplier and obtains title and physical/constructive possession of the asset. The customer signs a declaration that he has purchased the goods on bank’s behalf and now he is willing to purchase the asset. After offer and acceptance, sale is executed and the customer pays the agreed price to the bank.

Ijarah

Ijarah means to give something on rent. In Ijarah, right of use of a property is transferred to another person for a consideration. The process flow is as follows:

The customer approaches the bank for obtaining an asset on lease. The customer undertakes to make periodic lease payments for the lease period. Lease agreement and agency agreement is signed. The customer as an agent to the bank buys the asset. Bank receives the title of the asset and pays the vendor. The bank leases the asset and the customer starts using the asset and pays rent for each period. In the end, the customer can purchase the asset from the bank by way of a separate purchase agreement.

Salam

It is used in financing goods and services that are not ready for spot sale and will have to be delivered later. In Salam, payment is spot, but the delivery is deferred. It is used in special cases to facilitate transactions. In current practice, it is used in currency trade as an alternative for bill of exchange discounting and in agriculture financing.

Istisna

It is used in financing goods that are not yet ready for sale and will have to be manufactured. Example includes tailoring services, architect services etc. It is an order to producer to manufacture a specific commodity for the purchaser. It is used in pre-shipment exports financing and usable in all other situations where goods have to be manufactured before sale.

Deposit Side Operations of Islamic Banks

The two main categories of deposits are checking accounts and non-checking accounts. Some accounts are remunerative and some are non-remunerative. For offering deposit products, following modes are used in Islamic banking.

Non-Remunerative Accounts

Current Account is an example of a non-remunerative checking account. The money deposited in such account is considered ‘Qard’ (Non-interest bearing loan). The money is invested in the fund by the bank. Bank utilizes the money to invest in Ijarah, Murabaha, Diminishing Musharakah, Salam, Istisna etc. The money is payable on demand.

Remunerative Accounts

Remunerative accounts can be checking i.e. Savings Account or non-checking accounts i.e. Term Deposits. The money is invested in the fund. The bank acts as ‘Mudarib’ i.e. ‘Fund Manager’ and the customer acts as ‘Rabb-ul-maal’ i.e. ‘investor’.

The money is only invested in Shariah compliant assets. Bank utilizes the money to invest in Ijarah, Murabaha, Diminishing Musharakah, Salam, Istisna etc. The Weightage is assigned to each category of investment that is stated to the customer at the outset. Profit is declared at the start of the month for the previous month based on the weightage previously announced. Profit is paid out of the actual Gross Income.

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Source by Sheikh Umer Sohail

The Islamic Banking Model

The Islamic Banking Model 150 150

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The origin of Islamic banking dates to the very beginning of Islam in the seventh century. The prophet Muhammad’s first wife, Khadija, was a merchant, and he acted as an agent for her business, using many of the same principles used in contemporary Islamic banking. In the Middle Ages, trade and business activity in the Muslim world relied on Islamic banking principles, and these ideas spread throughout Spain, the Mediterranean and the Baltic States, arguably providing some of the basis for western banking principles. In the 1960s to the 1970s, Islamic banking resurfaced in the modern world.

This banking system is based on the principles of Islamic law, also referred to as Sharia law, and guided by Islamic economics. The two basic principles are the sharing of profit and loss and the prohibition of the collection and payment of interest by lenders and investors. Islamic banks neither charge nor pay interest in a conventional way where the payment of interest is set in advance and viewed as the predetermined price of credit or the reward for money deposited. Islamic law accepts the capital reward for loan providers only on a profit- and loss-sharing basis, working on the principle of variable return connected to the actual productivity and performances of the financed project and the real economy. Another important aspect is its entrepreneurial feature. The system is focused not only on financial expansion but also on physical expansion of economic production and services. In practice, there is a higher concentrated on investment activities such as equity financing, trade financing and real estate investments. Since this system of banking is grounded in Islamic principles, all the undertakings of the banks follow Islamic morals. Therefore, it could be said that financial transactions within Islamic banking are a culturally distinct form of ethical investing. For example, investments involving alcohol, gambling, pork, etc. are prohibited.

For the last four decades, the Islamic banking system has experienced a tremendous evolution from a small niche visible only in Islamic countries to a profitable, dynamic and resilient competitor at an international level. Their size around the world was estimated to be close to $850 billion at the end of 2008 and is expected to grow by around 15 percent annually. While system of banking remains the main component of the Islamic financial system, the other elements, such as Takaful (Islamic insurance companies), mutual funds and Sukuk (Islamic bonds and financial certificates), have witnessed strong global growth, too. Per a reliable estimate, the Islamic financial industry now amounts to over $1 trillion. Moreover, the opportunity for growth in this sector is considerable. It is estimated that the system could double in size within a decade if the past performances are continued in the future.

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Source by Afsheen Noorbakhsh

Poverty Alleviation: An Aim Of Islamic Economics

Poverty Alleviation: An Aim Of Islamic Economics 150 150

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Poverty is treated as WMD (weapon of mass destruction) of modern world. Eradication of it bears very importance. The economic systems like capitalism and communism have presented number of instruments for the alleviation of the poverty from the world. But, these extreme ideologies failed to satisfy the need of the people. Private ownership of property, laissez-faire policy of capitalism and class war, dialectical materialism, state ownership of property of communism didn’t touch the real cause of poverty. This situation necessitates seeking the possibilities of Islamic economics in alleviating poverty. The aim of poverty alleviation can be attained, in an Islamic Economic system through reducing the inequality. It never means attaining equality but equity and justice in the income and wealth distribution. Islam eliminates the absolute inequality which arises from unequal distribution of income, but relative inequality emerges from equitable distribution of income and wealth.

First part of this article has given a small introduction to both conventional economics and Islamic economics. Then it provides a picture of poverty of current world and Islamic perspective of poverty. Then Islamic economics instruments to alleviate poverty such as zakat, sadaqa, qard hasan, ganima, khums, fay, jizya, mudaraba, musharaka, prohibition of interest, abolition of extravaganza, prohibition of speculation and hoarding have been mentioned in briefly. Influence of Islamic economic instruments on marginal propensity to consume, multiplier, price investment and production have been dealt with.

The books and articles I referred for this article are Dr. Dr.Sabahuddin Azmi’s Islamic Economics, S. M. Hasanuzzaman’s Economic function of an Islamic state (The early experience), Towards understanding the economic system of Islam written by Dr.P Ibrahim and Introduction to the economic system by Moulavi.M.V.Saleem.

Introduction

Nobody can undermine the importance of economics which is a social science that studies the production, distribution, trade and consumption of goods and services. This very importance of economics resulted in emergence of different economic systems in the world and all of those economic systems claim that they will fetch economic welfare. Those dominating and prominent economic system’s failure to accomplish economic justice, prosperity, the eradiation of the inequality and poverty make necessary an alternative economic system which can successfully make a starvation free and poverty free world.

Definition of Economics

Social scientists have developed various definitions of economics. Lionel Robinson’s scarcity definition of economics is most accepted amongst them. According to Robinson “economics is a science which studies human behavior as a relationship between ends and scarce means which have alternative uses” This definition is based on two points which are scarcity of resources and the never ending needs. But in reality former is a myth. The survey conducted by UNO shows that are enough resources for 20000 million people on earth we have only 6000 million people on earth residing now. Latter point ‘never ending needs’ is also incorrect as the desire and greed of the man is unlimited but the need is countable and controllable.

Definition of Islamic Economics

As a system of life Islam has not left any area of human life without guidance. Whether it is spiritual, individual, social, economical or political Islam gives clear cut guidelines. By considering the economic guidelines of Islamic sources, Islamic economists have developed plethora of definitions. Derivation of each definition of Islamic economics is based on guidance given in the basic sources of Islamic shariah which are Quran and hadith.

According to Yusuf Ibrahim, professor of Islamic economics, Qatar University “Islamic economics is a science studying the guidance of the human behavior towards the use of resources to satisfy the needs”. This definition is based upon the following facts.

1. The resources are enough for satisfying the needs.

2. But the resources should be protected from the waste, and improper use.

3. The human behavior towards the resources should be controlled by divine injunctions.

4. Only legal needs, needs that build life on the earth, should be satisfied.

5. Illegal needs (desires), which destroy life on earth, should not be satisfied; they are never ending and never satisfied.

Islamic economic system, a normative economic system, has been built upon certain fundamental Islamic philosophies. According to Quranic teachings real and absolute ownership of the wealth belongs to the creator of the same, Almighty God. Quran says “To Allah belongs to everything in the sky and on the earth” (2:284).Role of the man is considered as trustee who is to manage the trust, i.e. wealth according to the directives of the real owner; God. Quran clearly states “And spend of that where of hath made you trustees” (57:7). So man has been granted

conditioned and limited ownership.

Another Islamic philosophy is universal brotherhood and equality of men as their creator is one and parents are same. Hence distinction based on color, caste, creed, races do not suffer at any cost. This concept induces the people for cooperation and participation in their all efforts instead of cheating, exploiting and making fraud each other. Another aspect of Islamic philosophy is the faith in the Day of Judgment after death. In the life after death man is accountable for his deeds on earth. The implication of this faith is that economic choices one makes in world are to be judged according to the norms Allah has laid down.

These are the revolutionary points which differentiate Islamic economics from the liberal, capitalistic, imperialistic, mainstream, usurious economic system and communist, class war, state dictatorship economic system. Islam constructs a just world on the spirit of everlasting divine concepts.

Poverty

Evil of any economy is poverty. The presence of begging hands in an economy pulls that economy into decades back. Poverty midst plenty is the challenge faced in the modern world. Impact of the poverty cannot confine into starvation only, but poor people, apart from starvation, suffering limited income which leads to inaccessibility of good education it disables them for challenging careers which requires number of years long education. Absence of nutritious food results in more child morality among deprived sections. Since limited access for information and knowledge those are prevented from market and opportunities.

Every country and international organizations like World Trade Organization, World Bank and Asian Development Bank hard work to construct the countries and world on the foots of self sufficiency respectively. Mission of the World Bank is described as global poverty reduction and improvement of living standards. General Council of UN has declared October 17 as International day for the eradication of poverty. It shows how seriously they took poverty as a problem

But, it is wondering that out of 6.1 billion world population more than 1 billion are finding their livelihood in less than $1 per day and almost 3 billion on less than $2 per day. You might be provoked that 74% of total income of world is shared by the 20% of the elite class of the world. It is heartening you that there are countries whose national income is less $800 and morality of below five years age children is about 26%.It is worrying that 110 million primary school age children are out of school and 60 percent of them are girls.

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Poverty and Islamic Economics

Below Poverty Line (BPL) fixes in Islamic economics system on the basis of ownership of nisab, which limit makes one eligible for the payment of zakat Whosoever wealth on or over the nisab is responsible for the payment of zakat. Those wealth is below nisab are zakat recipients and they are treated as poor. Hence, in Islamic economics, the size of deprived come under BPL will be large. Starvation and inaccessibility of food, shelter, cloths and education could not suffer in an Islamic economy which aims human falah, i.e. human welfare. It does not support any economic instrument that leads to the deprivation of the man. Since poverty emerges in an economy as a result of various causes so wiping out of these causes is primarily important.

Limited income, unequal distribution of income and wealth, misdistribution of resources, regional disparities, unemployment, social injustice, and decreased investments …etc are some of the obstacles in the way of attainment of self-sufficiency and welfare. Islam considers the fulfillment of basic needs of every member of society is economic, moral as well as religious obligation of the ruler. List of the basic goods extends from traditional food, clothing and shelter to seasonal clothing, personal attendant to disabled person, and expenditure on marriage of poor and expenditure on entire family of poor, which are intensified by scholars from time to time and likely to extend the list time to time for the welfare of the citizen. Islamic economic system introduces a bunch of divinely guided instruments which bring to an end of poverty and build

poverty less world.

Islamic Economic Instruments to eliminate poverty

It is advised to Muslim citizens in an Islamic county, as the part of believe, to practice certain things in their life, some of them are compulsory nature and the rest are voluntary nature. The practice of these will have vast economic implications apart from the reward of God. Non Muslim citizens also have to make certain compulsory payments, which have economic impacts, as the part of their citizenship in the Islamic country. Compulsory duties and agreements of citizens are governed by the Islamic country and violation of any part would not suffer Islamic state. In addition to these functions there are other things the Islamic state has to carry out similar to any nation does for the welfare of citizens. Both positive and negative measures have recommended by Islam for wiping out the reason of poverty.

Positive Measures

There are numerous Islamic orders and injunction to perform certain things which have immense influence on economies justice, prosperity and growth. Important divine injunctions amongst them and their influence upon the economy are briefed below.

Zakat

Zakat is the yearly obligation of wealthy Muslims to poor and it is the share of have-nots in the property and wealth of the rich. Quran commends “establish worship and pay the poor his due (zakat) and obey the messenger”. Technically we can call it as spiritual tax. It is imposed on those forms of wealth which have the capacity to grow in value or otherwise produce further, is having the custody of whole year and have exceed a certain minimum value called ‘nisab’. Quran has stated the eight specific heads for the distribution of zakat.

Due to the divine spirit for the performance of zakat, chances for evasion are less. The imposition of zakat on idle wealth urges the owners for the productive and profitable employment of idle wealth which increases the wealth of economy and again the share of zakat.

Donations

Sadaqa is the one of the voluntary economic instrument. No limit and eligibility criteria for performing contributions to needy. It can be divert, apart from the eight heads mentioned for the distribution of zakat, to any needy. and it will strengthen what economic implications emerged by zakat.

Qard hasan

It is an arrangement of interest free loans for unproductive purposes or for the needy to meet the expenses like hospital expenses, home expenses and education expenses etc which are do not make any earnings. So it is not able to charge any material benefit, like profit share, from qurd hasan. These are provided as the part of kindness to human beings. In an Islamic economy individuals and institutions like Islamic banks will offer this type of loans expecting the reward of Allah. Availability of qard hasan reduces the financial burdens like interest, of deprived.

Profit and loss sharing

Islam formulates profit and loss sharing as the tool of trade contracts instesd of interest. The motivation behind it is the cooperation amongst the people. In profit sharing there are different types of financing such as mudaraba (profit and loss sharing) and musharaka (participation) …etc

Mudaraba is the agreement between both capital owner and entrepreneur to share the profit arises from the business and in case of loss capital owner’s capital reduces and entrepreneur’s time and effort loose. Musharaka is the agreement to share profit and loss where all contributors participate in management of business. Both mudaraba and musharaka help the people, who have inadequacy of capital, to engage in business, production and contribute their share into the welfare nation and earn for their own.

Ganima (war booty), Khums (one fifth) and Fay

Ganima is the property Muslims seize from the enemy. Four fifth of the ganima is divided among the fighting army and one fifth (khums) of the entire ganima move to state fund, which is earmarked for the special beneficiaries mentioned in Quran. Fay is the property receives from the enemy without actual fighting. This source of state revenue is generalized for the common good of the entire population and public welfare.

Kharaj (Land- Tax)

Land-Tax, a source of revenue of state, is the levy imposed on land produce. This is actually the rent for the use of value of agricultural land. The rate of kharaj and method of collection can be declared by state from time to time as there is no direction of Quran and tradition of prophet in this regard.

Jizya (Poll tax)

Jizya (poll-tax) imposed on the non-Muslim citizens of Islamic country for securing their wealth, property and lives from damage. It helps them to contribute their skill, talent, health, wealth and property for the prosperity of the country

Waqf (Endowment)

Waqf (endowment) is regular source of revenue which is earmarked and dedicated fund of Muslim for supporting charitable and welfare activities

State ownership on uncultivated land:

Any economic instrument that hinders productivity is harmful to economies prosperous. According to Islamic shariah, if a land is remained uncultivated three consecutive years lead to moving of ownership of that land from current owner to other who is ready for cultivate the land and produce. Prophet (pbuh) said “The original rights of ownership in land are God’s and the prophets and then yours afterwards. But he who revives any dead land acquires the right of ownership to it”. There is an another institution, iqta, boost the circulation and tax revenue of the state by transferring the uncultivated/dead land to someone in return for ushr or khraj.

Combined ownership of natural resources:

Individual ownership of natural resources like fire, water, pasture and salt are restricted by the Islamic shariah. People have combined ownership in these natural resources which should be accessible to anyone. This rule allow anyone to use the benefit derives from the natural goods and ensure that nobody is away from the natural goods which are easy to get to without any hard work.. List of natural goods, in addition to mentioned goods, can be extended into more goods in time to time. Prophet (pbuh) said “people are joint owners in water, pasture and fire”.

There are other sources of revenues like property of deceased with no legal heir, lost and found with no claimants and additional taxations.

Negative Measures

There are some prohibitions of God which has influence on the economies prosperity and welfare of every men of country.

Prohibition of interest

Interest, whatever form, has been contemned by Allah and His messenger. Quran says “Allah has permitted trade and hath prohibited riba” (interest). Islam doesn’t support interest but profit and loss sharing. Every financial transactions of Islamic economy should be free of Interest. But absence of interest in an Islamic economy doesn’t create any hindrance to prosperity but flourish the prosperity.

Prohibition of speculative instruments

Instruments which don’t have any advantage to real economy such as futures and option are not permitted in Islamic economy. Stock market instruments like day trading, marginal trading are prohibited, either. Absence of these instruments in the economy reduces speculation which is harm to the entire economy.

Implications

The implementation of shariah guidelines we discussed above in an economy lead to number of positive fruits which make the state free from every form of poverty.

Increased redistribution of income and wealth will result in, when the people perform the religious obligations like zakat, donation, waqf, inheritances, fithr zakat and kaffarath etc… It leads to flow of wealth and money from rich to poor. Thus the concentration and accumulation of wealth in a few hands come down. Poor and needy spend approximately eighty percent of their earnings to fulfill their basic needs. Economically Marginal Propensity to Consume (MPC) of the poor is larger than middle and high class. A large portion of whatever comes into handy of poor will flow to economy for consumption of basic goods; it lead to more demand for primary goods and then it result in the increased production of basic goods. It is difficult to restrict luxurious consumption and production completely by law and force. But the increased rate of redistribution of wealth and income increase the demand for basic goods and decrease the demand for luxurious goods. Automatically it reduces the utilization of resources for the production of luxuries. Consequently, natural resources use for the production of basic goods and for the benefit of public welfare

This increased redistribution of wealth to poor enables them to get the accessibility of good education and nutritious food. Increased knowledge and skills help the poor to get good jobs and earn. This raises the entire poor family and dependence to heights. In turn, increase of income more than a certain limit make them capable for performing zakat and other voluntary donations for the sake of the benefit of have-nots. Rise in the redistribution help to reduce the gap between haves and have-nots and bring economic justice to all citizens.

Increased MPC of poor as the redistribution of income results in more multiplier effect in economy that fuels more income to the overall income of economy that help the poor section of people to raise their per capita income and living standards.

According to Professor Keynes, investment depends on two variables which are current rare of interest and the marginal efficiency of capital or expected profit rate. Investment would take place only if the expected rate of profit exceeds of interest. Due to the absence of interest, in an Islamic economy, only the size of expected rate of profit of profit will be the determinant of investment.

Speculative motive of money and liquidity theory of money will have no place in an interest free economy which reduces investment. But the presence of only expected rate of profit will result in investments, even in low rate of expected rate of profit to increase their principle amount and to avoid the deterioration of principal through zakat. The increased investment raises the production, employment, wages and overall national income of economy. It flows wealth to poor and raises their economic status.

Fisher’s quantity theory which states that quantity of money affects the price and value of money. It means that increase in the supply of money will proportionately increase the price in economy but the output will not increase. But in the case of Islamic economy money should not be supplied without making increase in the output. The central bank and commercial banks of Islamic state increase the money supply through making investment contracts on the basis of profit and loss sharing. So every flow of money into economy results in output growth without making proportionate hike in price. It is helpful to the poor to get need things at reasonable price

Conclusion

Way of eliminating poverty in Islamic economy is simple. Faith in the oneness of God (tawheed) motivates to the performance of zakat and profit and loss sharing and avoiding interest and extravaganza. Increased redistribution and productivity are the outcome of these instruments which helps finally to attain alleviation of poverty.

*-*-*-*-THE END*-*-*-*

Writer’s Address& Phone Number:

Nabeel.K.N

92 Mimson House

L T Marg, Mumbai

India

Ph.022-2347 2118

Email.nabeel_kn@rediffmail.com

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Source by Nabeel Kattakath

Estate Planning for Muslims in Singapore Made Easy

Estate Planning for Muslims in Singapore Made Easy 150 150

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The Wassiyah (Islamic Will) together with Estate planning for Muslims are not widely practiced. The common remarks made are:-

“The Quran already specifies my asset distribution through Fara’id.”

Or

“No need to write a Will. There is Fara’id.”

Muslims are encouraged to make an Islamic Will.

“It is prescribed, when death approaches any of you, if he leave any goods, that he make a bequest to parents and next-of-kin, according to reasonable usage; this is due from those who fear Allah. If anyone changes the bequest after hearing it, the guilt shall be on those who make the change, for Allah hears and knows (all things). But if anyone fears partially or wrongdoing on the part of the testator, and make peace between (parties concerned), there is no wrong in him; for Allah is Oft-Forgiving. Most Merciful.”

Al-Baqarah (2:180-182)

The first remark is true that upon application the Syariah Court will issue the Inheritance Certificate known as “Sijil Warisan” upon the death of a Muslim in Singapore. The Fara’id distribution of shares is reflected on the Inheritance Certificate for the distribution of the Deceased’s assets.

Fara’id is set out in the Al-Quran in the fourth chapter of An-Nisa (Women) verses 7, 11 & 12. and in the Hadith of Sahih Muslim in the 11th book, Kitab Al-Fara’id.

Application of Fara’id and other Syariah Laws

Mr. Ahmad, a Muslim convert was divorced from a previous marriage 2 years ago with a 10 year old son. He converted a year ago and remarried shortly thereafter. From this marriage, he has a daughter whilst responsibly providing for his son from the previous marriage. Mr. Ahmad hopes to send his son to the university in the future. He wishes to provide for his son in the event of his death.

The distribution upon his death of his estate is distributed under Fara’id:

The assets of Mr Ahmad upon his death shall be divided into 8 shares as follows:

1. Wife will get 1/8

2. Daughter will get 4/8

3. Baitulmal will get 3/8

*Baitulmal is the institution that acts as a trustee for the Muslims. It looks after assets from which members of the Muslim public could benefit.

Mr. Ahmad’s non-Muslim son will not be able to inherit as his beneficiary unless an Islamic Will is made to provide up to 1/3 his assets. As a Muslim convert, his whole family prior to his conversion is excluded as legal beneficiaries under the Syariah Law. This is specifically mentioned in Kitab Al-Fara’id.

Book 011, Number 3928(first verse):

Usama b. Zaid reported Allah’s Messenger (may peace be upon him) as saying: A Muslim is not entitled to inherit from a non-Muslim, and a non-Muslim is not entitled to inherit from a Muslim.

3/8 of Mr. Ahmad’s estate ordinarily will go to Baitulmal.

In Singapore the Shafie School of Jurisprudence allows a non-Muslim to receive up to 1/3 of a Muslim’s estate upon death as part of the Wassiyah (Muslim Will).

It is prudent for every Muslim family to make an Islamic Will upon planning their Estate/Legacy.

Some of the other vehicles for distribution of a Muslim’s wealth in Singapore are:-

Hibah – A gift during one’s lifetime.

Harta Sepencarian (Matrimonial Asset Share) – By customary law it is a claim on the deceased estate by the spouse for up to 50% of deceased total assets.

Islamic Trust – Personal and/or business assets can be held in Islamic Trust to benefit specific beneficiaries

Wassiyah (Islamic Will) -The appointment of the Executor to the Estate assist to avoid disputes amongst family members and expedite the smooth Probate process.

With this knowledge available, it will only be an issue of looking for the right Estate Planner with the appropriate expertise in this area of work to help a Muslim plan his estate.

Reza Kamarudin has been in the financial advisory business since 2007. He is passionate about Estate Planning because of the value it brings to the family unit and how Estate Planning upholds the love and dignity of a family.

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Source by Reza Kamarudin

The Islamic Economic System

The Islamic Economic System 150 150

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Interest-free Islamic economic system is partially followed and partially not followed in Muslim countries around the world. The only country, which has followed this system completely in every minute detail is Malaysia. So the application methods in this post are mostly those implemented in Malaysia following the Interest-free Islamic Economic system.

The main feature of the Islamic economic system is that it is Interest-Free. As the Qur’an says in Sura al-Baqara Chapter 2 Verses 278 & 279, “O ye who believe! fear Allah and give up what remains of your demand for usury if ye are indeed believers. If ye do it not take notice of war from Allah and his Apostle: but if ye turn back ye shall have your capital sums; do not deal unjustly and ye shall not be dealt with unjustly.”

Qur’an condemn all evil deeds, but never has the Qur’an warned of a war against God Almighty and His Messenger except in the case of taking Interest and Usury.

There are several evils of the interest based economy, the reason why Islam has prohibited it.

For example, if a person takes a loan from a bank and says the cost price of a certain article is 10 dollars and he wants to a profit of one dollar. So the selling price would include the 10 dollars cost price one dollar profit and one dollar interest and the selling price would be 12 dollars. The selling price would go up because of interest and when the selling price goes up the demand comes down and when the demand comes down the supply comes down and as supply comes down production comes down causing labour problem and unemployment.

There is Social Injustice.

For example, if a person takes a loan from the bank and no matter if he earns a profit or goes in loss he has to pay that fixed amount of interest. Even if some natural calamity befalls his family, such as flooding or earthquake, the person still has to pay the loan with the interest and a delay would only increase the amount of interest. It is social injustice.

There is no social consideration.

Suppose, if two businessmen come to ask for a loan from a modern bank and one businessman wants to start a social or hospital while the other businessman wants to start an alcohol factory or a gambling den. But natural the businessman, who wants to start an alcohol factory or a gambling den would have better returns and the loan given to him would be more secure and he would give a higher rate of interest as compared to the business, who wants to open a school or hospital. Modern banks are only interested in getting better and higher returns. That’s why they finance gambling dens rather than schools or hospitals. That is why in the 80s thousands of gambling dens were financed by modern banks worldwide. For name sake only a few social projects are financed by modern banks and the majority of their loans are based on better interest.

Modern banks encourage people to store money and keep the money idle for small fixed return on it every year. In the end, power is concentrated in a few hands, the bankers.

In the same way there are several benefits of Islamic banking.

As there is no interest involved, there is profit and loss sharing. So if a person wants to sell his goods, it would only have the cost price and profit in the selling price and instead of 12 dollars, his selling price would be only 11 dollars. If the selling price comes down, the demand increases and if the demand increases the supply increases and as supply increases the production increases resulting in more labour for the people and higher employment. As a result encourages people to work and earn their living.

There is Social Justice in Islamic banking.

If a business takes a loan and goes in loss, the loss is shared by the bank and if he earns a profit, the profit is shared by the bank. If in case any natural calamities befalls him, the Islamic bank gives him more time to repay, unlike the modern bank, where the more time you take to pay the more interest you would have to pay. Many a times if the Islamic bank finds the situation very bad, they even let go off that loan.

There is Social Consideration in Islamic banking.

Islamic bank can not give a loan to any businessman, who is doing any activity, which is causing harm to the society. For example, if a businessman wants to start an alcohol factory and approaches an Islamic bank for a loan, the Islamic bank will not lend him a single penny, not even if he promises to give 100% profit to the Islamic bank. In Islamic banking there is social consideration and they encourage projects beneficial for the society, such as building schools, hospitals and nurseries. In short, the Islamic bank encourages the society to improve.

In the Islamic bank, you are not encouraged to keep your money idle. You are encouraged to invest your money and be a partner in the business and in the end, power is not concentrated in the hands of a few individuals. Because in the Islamic banking the profit and loss are shared by the business, the banker as well as the depositor. The power is equally shared among all the people.

The great philosopher, Aristotle has beautifully defined Interest as “An earning based on the use of money and not on labour, and all such earnings(interests) are against nature.”

Lets quickly analyze the objectives of the Islamic economic order before we analyze the theory and practical application of the Islamic economic system.

The Objectives of the Islamic Economic Order

1- Economic well-being

Islam encourages a person to enjoy the bounties of God Almighty, to work for his living and refrain from begging.

2- Universal Brotherhood and Justice

Qur’an says in Sura al-Hujurat Chapter 49 Verse 13, “O mankind! We created you from a single (pair) of a male and a female and made you into nations and tribes that ye may know each other (not that ye may despise each other). Verily the most honored of you in the sight of Allah is (he who is) the most righteous of you.”

From this we come to know the criteria that the criteria of judgement in the sight of God is not wealth, not sex, not color, not Caste, but it is “Taqwa” God consciousness, piety and righteousness.

Qur’an says in Sura an-Nisa Chapter 4 Verse 135, “O ye who believe! stand out firmly for justice as witnesses to Allah even as against yourselves or your parents or your kin and whether it be (against) rich or poor: for Allah can best protects all.”

According to this we have to stand for truth and justice be it against anybody even against our own selves and sacrifice your own interests.

3- Equitable Distribution of Wealth

Islam is against the philosophy that the wealth should be concentrated in a few hands. The difference between the rich and the poor should be reduced. Otherwise they would become enemies unto each other. For this, Islam has devised a system of “Zakat” that every Muslim, who has excess wealth exceeding the amount equal to or more than 85 grams of Gold. This amount is spent on the poor, orphans, needy and so on. If every individual in the world practices this system of “Zakat”, not a single person in the whole world would die of hunger. Islam teaches to find lawful employment for the unemployed and to pay him a good remuneration.

According to Islam if a person dies his wealth should be distributed among his heirs according to the guidelines laid down in Qur’an and Ahadith and it should not go to just one or two individuals in the society as it is done today.

4- Individual Freedom within the Context of Social Well-fare

According to Islam man is born free and nobody not even the state can abrogate his freedom nor subject his life to strict regimentation. Every individual is free as long as he does not harm the society because in Islam the larger welfare of the society takes precedence over the individual freedom.

Working and labour as well as the benefit in business are both important principles of Islam, but working and labour take precedence over the benefit in business. If you are doing business, a big loss can not be inflicted to relieve a small loss, nor can a big profit can be sacrificed for a small profit. In short, Islam believes in individual within the context of social welfare.

There are mainly four factors involved in production;

1- Land

In both the Modern and Islamic theories, you pay rent on the land.

2- Labor

You pay wages on the labour in both the Modern and Islamic theories.

3- Capital

In the Modern theory, you pay Interest on capital, while in the Islamic theory there is profit and loss sharing.

4- Organization

In the fourth factor of production, Organization, there is profit and loss sharing in both theories.

So the major difference in the four factors of production is the third factor of Capital. The Modern Theory says that a fixed interest should be charged on the capital, while the Islamic theory says that there is profit and loss sharing on capital. Because Islamic theory does not differentiate between the third factor Capital and the fourth factor Organization because the money lent by the bank does not belong to the bank itself, it belongs to the depositor. The depositors are the part of Organization and the money deposited in the bank (the capital) should be included in the Organization. In the Islamic theory Capital and Organization are clove together and there is profit and loss sharing on the capital.

When you have to do business, there are naturally two types of units. One is the surplus unit, who have excess of wealth, but do not know how to spend it. Second is the deficit unit, the people who do not have money, but have good ideas for business. The best examples of a surplus and deficit unit in the Islamic history is Lady Khadijah (may Allah be pleased with her) had excess of wealth, but lacked avenues to spend in and being a female she couldn’t travel abroad too much to deal in business transactions. The deficit unit, in terms of wealth, was Prophet Mohammed (peace be upon him). He had good ideas and access to business avenues, but did not have wealth. So Lady Khadijah (may Allah be pleased with her) gave wealth, which Prophet Mohammed (peace be upon him) invested in business avenues on her behalf and the profit was shared on a fixed pre-determined ration.

The System of Islamic Banking and Modern Banking

Lets analyze the options open for individual depositors to deposit their money in an Islamic bank.

Current Account

The money you deposit in an Islamic bank is utilized with your permission, but if the bank goes in loss, the loss is not shared by the depositor. If the bank goes in profit, neither is the profit shared by the depositor. The depositor is interested in only the safety of his money, not profit. The Islamic banks gives you a check book and a slip book with the functions as that of a modern bank.

Savings Account

Even here the depositor is mainly interested in the safety of his money. As the bank gets a profit from this money, the bank can gift a portion of that profit to the depositor, if the bank wants, but the depositor can not demand a fixed portion.

In Islamic banking, if a bank goes bankrupt then the depositors get their money first and then, the creditors. While in Modern Banking creditors get their money first and majority of the depositors lose their money. So even if you want your money safe, the Islamic banks are preferable and safer than Modern banks.

Investment Accounts

They are similar to the Fixed Accounts of Modern banks and are further divided into several types

Mudariba (Profit & Loss Sharing)

The depositor deposits a fixed amount of money in the bank for a fixed period of time, which maybe a multiple of three or a multiple of four. Here the surplus unit is the depositor and the deficit unit is the bank. The bank uses this money to do business with the businessmen and whatever profit the Islamic bank makes, it is divided on a pre-determined ratio, which can be negotiated. In the Islamic Banking of Malaysia, the ratio is 7 part to 3 part, meaning 70% goes to the depositor and 30% is kept by the bank. So there is sharing of profit, the greater the profit the greater the share of each.

Suppose, if there is a loss of a hundred dollars, then hundred would be deducted from the depositor’s money. So theoretically only the depositor bears the loss. Practically analyzing even the Islamic bank is going in loss because they are paying money for the rent, administration and salary, but the loss ratio of the bank is less than that of the depositor, as even the profit of the bank is less than that of the depositor.

Project Financing in the Mudariba System

If a businessman approaches an Islamic bank with a project idea and asks for a loan for a fixed period, the Islamic bank analyzes the project, then the businessman and the Islamic bank negotiate the profit ratio. In Modern banking interest is negotiated, in Islamic banking profit ratio is negotiated.

Suppose, the businessman takes a loan of $5000 from an Islamic bank for six months and the pre-determined profit ratio is 60% to the bank and 40% to the businessman. If the businessman is working for his business, even his salary would be included in that $5000 and suppose the salary of the businessman is $200 per month.

Suppose, if the businessman earns a profit of $5000, the business would get (his 40%) $2000 from the profit and the businessman would get paid $200 salary per month from the $5000 loan, amounting $1200 for 6 months. So the businessman gets his profit as well as the salary for his labour, if he is working for his business.

But in case of loss, the bank bears the complete loss and in turn passes the loss to the depositors. But technically even the business also goes in loss because he is only paid for labour, not for his thinking and ideas.

In Mudariba System, the bank can not interfere in the management of the business. The business can not tell the businessman to build a 12 story building instead of a 10 story building. The bank can not tell the business to produce a certain article instead of another article. The bank can not interfere in the administration of the business.

Mushariqa System (Partnership)

In Mushariqa system or Partnership the Islamic bank can interfere in the management of the business. The bank can tell the business to build a 12 story building rather than a 10 story building. The bank can tell the businessman to make a certain product instead of another product. In Mushariqa system the businessman has part of the capital and the other part he takes from the bank. The profit is shared on a pre-determined ratio. Suppose, if the businessman and bank give 50-50% capital, they would get 50-50% profit. But in case of loss, loss is shared on pre-determined ration and the Islamic bank bears more loss. The Islamic bank may have to bear 60% loss, while the businessman would only bear 40% loss.

Mudhaba System

Suppose, you want to purchase a particular machinery from abroad costing $10000, in the Modern Bank you open a LC (Letter of Credit) or a TR (Trust Receipt/Sales Slip) and you deposit the money in the Modern bank and the Modern bank charges you a fixed amount of interest on the time it takes for the transaction. If you deposit the money in an Islamic bank and ask the bank to buy the machinery on your behalf, the Islamic bank would charge you a service charge/commission.

If you do not have money to buy the machinery, you can combine Mudhaba System with Mudariba System or if you have the money you can combine the Mudhaba System with the Mushariqa System and share the profit on selling that machinery with the bank on a pre-determined ratio.

Ijara (Leasing or Higher Purchasing)

Suppose, you don’t to buy a car, you want to rent it. The Islamic bank charges you a certain profit and rents you the car. The price of the car and the profit are divided by the life span of that car to calculate the per month rent. The Islamic bank provides you Ijara ending with sale and also buying back facility. If you don’t the car, the Islamic bank buys back the car, a facility which Modern banks do not provide.

Interest-free Loan

It is the loan the Islamic bank gives to the poor to do business without charging any Interest at all. There is nothing like Interest-free loan in Modern banking. In the Islamic system of banking in Malaysia 10% of profits are kept separately/ reserved for Interest-free loan for the poor. In Islamic terminology it is called “Karze Hasana” meaning “the good loan”.

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Source by Liaqat Qazi

What You Do Not Know About Masjid Jamek

What You Do Not Know About Masjid Jamek 150 150

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Jamek, or Jumaat means Friday in the Malay language. It is significant because prayers are held every Friday afternoon. Prayers on Friday afternoons are as important to Muslims as Saturdays are to Jews, and Sundays are to Christians. Masjid, as you may have guessed, means mosque.

There is a tourist counter on the left as soon as one enters the mosque compound. Make sure you are dressed well. For women, you are required to wear a robe, which you can get from the tourist centre. If you are denied entry, which is quite common late in the day or during prayer times, it’s ok. Just stand at the gate and peep in.

The Sultan of Selangor officially opened Masjid Jamek on the 23rd of December 1909. The Resident of Selangor, or Selangor’s British administrator at that time was HC Belfield. Both they, and other officials witnessed the ceremony that was held outside the Mosque.

The designer was A.B Hubback, a government architect who was intrigued by the Mogul architecture of India. This is the city’s oldest surviving mosque and it is constructed on the site of the first Malay cemetery. Masjid Jamek it is located right at where Klang River and Gombak River meet.

Masjid Jamek was built with inspiration from the Mogul mosques of North India. In fact, there are many similarities between this mosque and the Jama Masjid in Old Delhi if you have been there. The brick walls and the white arched supporting columns, or small pillars are similar. On the corners, you can see the cupolas and the minarets, or towers.

There are three giant domes on top of the prayer hall. The central dome stands at 21.3 metres or 70 feet high and is flanked by two lower domes. Domes in Islamic architecture often signify the vaults between heaven and the sky.

The prayer hall is usually empty and without furniture to allow for as many worshippers as possible in a single prayer session. On a typical Friday afternoon prayer, this place is packed.

The hall opens out onto a ‘sahn’ or courtyard, which has now been covered over to allow for even more space. You can recognize it with its white tent.

There are also two red and white striped minarets. They have small chatris or umbrella-shaped cupolas on top. There are a large number of small chatris at the top of the entrance and at the corners of the mosque.

Speakers are placed in the minarets and they are used broadcast the azan, or the Muslim call to prayer. You might even hear it during this tour.

Until the opening of the National Mosque in 1965, Masjid Jamek served as Kuala Lumpur’s principal mosque.

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Source by Teng Ky-Gan

Where’s My Muse?

Where’s My Muse? 150 150

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The word muse is related to the Latin word mens and the English mind. Centuries ago a poet had no books to hold his words, so he relied on his memory to tell his stories, which is how these beings were given the collective name Muse. Born in the village of Piera at the foot of the majestic Mount Olympus in Greece, the Muses are the daughters of Zeus, king of the Ancient Greek Gods, and Mnemosyne, a titaness who represented memory. They had a nurse called Eupheme, who looked after them with her own sun, the hunter called Crotus.

In keeping with their inspirational roles sacrifices to the Muses included honey, milk and water. The Muses also had many famous friends amongst the Greek mythological characters. The goddess Athena gave them the winged horse Pegasus, while Apollo was the head of their choir. The Muses appear throughout Greek mythology, guiding and teaching many different characters. The riddle the Sphinx used at Thebes was supplied by the Muses. They taught the tragic nymph Echo how to sing and play music, and are associated with the three Charities.

Here, in alphabetical order, is a brief outline of the nine Muses:

Calliope

The oldest Muse, she is the muse of Epic Poetry, and was Homer’s inspiration for The Illiayd and The Odyssey. Apollo fathered her sons Orpheus and Linus. She’s usually pictured carrying either a writing tablet, a roll of paper or a book. She wears a golden crown.

Clio

The muse of History, she is said to have introduced the Phoenician alphabet to Greece. She carries a parchment scroll or a set of stone tablets. Her name means “make famous”, which probably accounts for her other name: The Proclaimer. A relationship with Pierus, King of Macedonia, produced her son Hyacinth

Erato

Considered the most beautiful muse, she is responsible for the rather unusual combination of Love Poetry and Mimicry. She’s usually pictured with a lyre, and had a son called Azan with Arcas, a character who was turned into the constellation Ursa Minor.

Eurtepe

Known as the muse of pleasure, she is actually the muse of Music. Later in Greek mythology she was given the title of muse of lyric poetry and depicted holding a flute. Her son Rhesus was fathered by the river Strymon – only in mythology! He died fighting at Troy.

Melpomene

Despite her beautiful voice, she is known as the muse of Tragedy, and is often depicted wearing the actors’ mask of tragedy. She wears a crown of cypress, and holds the actor’s mask of tragedy in one hand and a club or knife in the other.

Polyhymnia

This is one busy lady! Known as the muse of geometry, agriculture, mime and meditation she is also the muse of Sacred Poetry. Her many responsibilities are perhaps the reason she’s usually depicted with a thoughtful face, dressed in a cloak and wearing a long veil and leaning on a pillar! She brings distinction to writers whose work has won them immortal fame.

Terpsichor

Although she’s the muse of Dancing, she usually portrayed seated and holding a lyre. This is the character Olivia Newton John portrayed in the film Xanadu. Her liaison with the river god Achelous supposedly resulted in the birth of the Sirens.

Thalia

She wears the actor’s mask of comedy – the opposite of the one worn by Melpomene. She is the muse of Comedy and Playful and Idyllic Poetry. She’s often pictured holding a shepherd’s crook, a tribute to her role of a rural goddess. A relationship with Apollo produced the Corybantes, priests loyal to the goddess Cybele.

Urania

She uses the position of the stars to foretell the future, which is why she’s the muse of Astrology as well as Astronomy. She wears a cloak covered in stars, and is usually depicted staring thoughtfully at the heavens. She’s patron of those concerned with the heavens and philosophy, and is associated with the Holy Spirit and universal love.

Although synonymous with good thoughts and artistic interpretation, the Muses had an unpleasant side. One myth claims that jealous Hera arranged a singing contest between the Muses and the Sirens, who had bird bodies and beautiful faces. The Muses won, and promptly plucked all the feathers from the Sirens’ bodies and made themselves some rather fine crowns. This seems to negate the suggestion that the Sirens were born of the muse Terpsichor!

The musician Thamyris learned the hard way not to challenge the Muses. So confident was he of his prowess that he arranged a contest with them, with the agreement that he would have his wicked way with them all after he won. Of course he lost, and the Muses took two dreadful prizes from him – his sight and his musical ability. So enamoured were the king and queen of Emathia of the Muses they named their nine daughters for them. The inevitable contest came up, and naturally the Muses won. They promptly punished the losers by turning all nine daughters into birds.

When one considers how many Greek Myths and legends are alive today these nine girls obviously did a good job. So perhaps they’re more important than we originally thought. Sources of encouragement and inspiration throughout the ages… just don’t enter any contests featuring the Muses!

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Source by Sarah Todd

Islamic Prayer Times, Salat Time and Prayer Information

Islamic Prayer Times, Salat Time and Prayer Information 150 150

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Prayer times refers to times when Muslims perform prayers. The term is primarily used for the five daily prayers plus the Friday prayer. According to Muslim beliefs, the salat times were taught by Allah to Muhammad.

Salat times are standard for Islamic in the world, especially the prayer times. They depend on the condition of the Sun and geography. There are varying opinions regarding the exact salat times, the schools of Muslim thought differing in minor details. all schools agree that any given salat cannot be performed before its stipulated time.

Islamic Daily Five Prayer In the World:

The five daily prayers (Salat) are obligatory and they are performed at times determined essentially by the position of the Sun in the sky. Hence, salat times vary at different locations on the Earth.

1st Prayer – Fajr (Pre Down):

The Fajr Prayer is the 2 rak’at obligatory prayer (‘Subuh’ prayer) of the five daily prayers offered by practising Muslims. Fajr begins at subh saadiq – true dawn or morning twilight when the morning light appears across the full width of the sky and ends at sunrise. The Fajr prayer is mentioned by name in the Qur’an at sura 24 ayah. Inspired by the tafsir of the two hadiths that were transmitted on behalf of the Islamic prophet Muhammad, the worth of the Fajr daily prayer is explained as being God’s most-favoured prayer since others are asleep.

2nd Prayer – Dhuhr (Midday):

Dhuhr is the Prayer after midday(But before the time for the Ase prayer). It has been said that the name Dhuhr was given to this Salat because it falls halfway between two daily prayers, those being Fajr which denotes the beginning of dawn and Isha, the first instant of complete darkness. It is the second of the five daily prayers, Performed daily by practicing Muslims. The Dhuhr prayer (Zuhr Prayer) starts after the sun passes its zenith, and lasts almost 20 min (approx.) before Asr. It’s better to say the salah in between 2 hours after the Azan has been announced from Mosque. Shia (Jafari madhab) differs regarding end of dhuhr time. Per all major Jafari jusrists, end of dhuhr time is about 10 minutes before sunset, the time that belongs exclusively to asr prayer. Dhuhr and asr time overlaps, apart from first 5 minutes of dhuhr, which is exclusively delegated for it. Asr prayer cannot be offered before dhuhr in the dhuhr time.

3rd Prayer – Asr (Afternoon):

The Asr prayer is the afternoon daily prayer recited by practising Muslims. It is the third of the five daily prayers. The Asr daily prayer may be mentioned as the middle prayer in the Qur’an at sura 2 (Al-Baqara), ayat 238, and also the name of a short sura (surat al-Asr). The Asr prayer starts when the shadow of an object is the same length as the object itself plus the shadow length at Dhuhr, and lasts till sunset. Asr can be split into two sections; the preferred time is before the sun starts to turn orange, while the time of necessity is from when the sun turns orange until sunset.

Jafari madhab differs regarding start of asr time. Per all major Jafari jusrists, start of asr time is about 5 minutes after the time of sun passing through zenith, that time belongs exclusively to Dhuhr Salat. Time for dhuhr and asr prayers overlap, but the dhuhr prayer must be offered before asr, except the time about 10 minutes before sunset, which is delegated exclusively to asr. In the case that the mentioned time is reached, asr prayer should be offered first (ada – on time) and dhuhr (kada – make up, late) Salah should be offered after asr.

4th Prayer Maghrib (sunset):

The Maghrib prayer prayed just after sunset, is the fourth of five formal daily prayers (salat) performed by practicing Muslims. The Maghrib prayer begins when the sun sets, and lasts till the red light has left the sky in the west. To be considered valid salat, the formal daily prayers must each be performed within their own prescribed time period. people with a legitimate reason have a longer period during which their prayers will be valid.

5th Prayer Isha’a (night):

The Isha’a salat starts when the red light is gone from the western sky, and lasts until the rise of the “white light” (fajr sadiq) in the east. The preferred time for Isha’a is before midnight, meaning halfway between sunset and sunrise.

There are a few optional prayers that can be recited after the Isha’ Salah, including the Nafilat ul-Layl prayers, as well as the tarawih in Ramadan.

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Source by Nadine K Sauriol