This work is licenced under a Creative Commons Licence.
<a rel="license" href="http://creativecommons.org/licenses/by/3.0/">
Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.3 or any later version published by the Free Software Foundation. A copy of the license is available at: http://www.gnu.org/licenses/fdl.html.
This article has been first published on Indymedia:
http://www.indymedia.be/en/node/29241
Marriage of Muslim Women with Non-Muslim Men: A Positive Perspective
Huwelijk van Islamitische vrouwen met niet-Islamitische mannen: Een positief perspectief
Le mariage de femmes Musulmanes avec les non-Musulmans: Une perspective positive
by Dan Hajidah
In many romances in Europe now, one person is Muslim, and the other is by heritage a Christian or a Jew. The Qur'an says that a Muslim male may take a Christian or Jewish wife, though does not speak about a Muslim woman wishing to marry a Christian or Jewish man. This has been historically controversial, while some learned Muslim voices today take a positive view.
Today's Europe is increasingly Muslim. In the first few centuries of Islam, Islam quickly spread in all three continents which then formed the known world, Asia, Africa and Europe. Europe was a home to Muslims very shortly after the time of the Prophet (pbuh), and it is increasingly a home to Muslims today.
It is not only because of Muslims moving to Europe in increasing numbers, that the Islamic presence is growing here. And it is not only because of Muslim families having children. It is also true now, that many people in Europe are converting to Islam, finding their spiritual home in the Muslim community, via one path or another.
And Europeans are often coming to Islam quite on their own, without any urging or proselytising by the Muslims whom they know. Sometimes it is enough to simply feel the faith of other Muslims, or to follow the many threads of Islamic life that have always existed in Europe from the very earliest days of the faith.
The wonderful journalist Eric Walberg, of Al-Ahram Weekly, has written a quite nice historical survey, about European cultural figures who have found their way to the peace of Islam at various times over the last few hundred years. This lovely essay, "Finding the inner Muslim prince", dates from Ramadan in 2007:
http://weekly.ahram.org.eg/2007/864/cu6.htm
One of the contemporary Muslim converts mentioned by Walberg, is of course the famous Yusuf Islam, at times better known by members of the 'hippie generation' under his previous name, Cat Stevens:
http://www.yusufislam.org.uk/
Among many people in Europe with whom I have spoken, the fact that Cat Stevens became a Muslim, was their first or most notable example of someone in the West converting to Islam. - I do like his old music that you can hear on YouTube, I feel the spiritual soul there in him.
But of course many people becoming Muslim, are not so famous as Cat Stevens. In many cases they are simply and quietly, as ordinary good people, joining the Muslim faith, adhering themselves gently but firmly to the life of daily prayer and to their local Muslim community.
Sometimes the path to Islam is hand-in-hand with the development of a romantic relationship. One person converts to Islam, as part of the process of falling in love with, and marrying a Muslim.
But there is something else as well, very significant and happening quite a lot around me, though perhaps not yet talked about enough. - There are many romances and marriages where one person is Muslim, and the other is by heritage a Christian or a Jew, and that party does not convert to Islam before marriage.
This is happening a lot, actually, in Europe, and around the world, a natural result of Muslims living in multi-religious societies, such as Europe is today.
Marriage between a Muslim and a non-Muslim, raises some questions for Islamic practice and understanding. One in particular that I want to address here, is the distinctive situation, of a Muslim woman falling in love with a Christian or Jewish man, and wishing to marry that person. This has been controversial in Islam, but I think that the answer here may be as beautiful as I think Islam itself is beautiful.
The specifically controversial case, is where the woman is Muslim, and the man is Christian or Jewish. The precisely reverse case, where the man is Muslim and the woman is Christian or Jewish, is actually quite clear under Islamic law, and is covered by the holy Qur'an itself. A Muslim man may indeed clearly marry a Jewish or Christian wife, of course with due respect for the faith in the marriage covenant.
According to Islam, the Jews and the Christians are also 'People of the Book', people of the same religious heritage who share some of the same holy writings, sharing spiritual lineage in descent from the Prophet known in the West as Abraham (pbuh) of the Bible.
It makes me laugh sometimes, in speaking to people so un-informed or misled about Islam, that they do not realise that Islam views Judaism and Christianity as part of its own family. People often do not know that Islam also honours the Prophets of ancient Israel as its own, and not only Jesus (pbuh), but even his mother Mary (pbuh) - using the common Western spellings of their honoured names here.
For sincere prayerful Muslims living with sincere prayerful Christians, and with sincere prayerful Jews, I do not think there is any great conflict that needs to exist in this world. It is our role and nature and destiny to live in peace with one another. We share a heritage, and it is only evil forces that seek to put us into conflict and so-called 'clash of civilisations' nonsense.
The three Abrahamic faiths have lived together very closely over many centuries, and we have borne much fruit when living together in peace, as at times in the East of Europe, under the Ottomans, and in many other locales and places.
And the fruit is seen not just on the larger political and social scale, but also in marriages in our intimate personal lives. Over the centuries, a Muslim has often taken a Christian or Jew for a spouse, and lived together happily and spiritually, and the marriage has worked to the benefit of faith. It has been this way for centuries, from the earliest days of Islam.
It is specifically permitted in the Qur'an that a Muslim man, may take a Christian or Jewish wife. As long as she is a Person of the Book, a member of the monotheistic faith deriving from the ancient prophets of Palestine, the marriage is specifically permitted.
There is controversy, though, about the reverse-gender case, given that the Qur'an does not mention the marriage of a Muslim woman with a Christian or Jewish male, even though he be a Person of the Book.
And over the centuries, there is some scholarly opinion that, even though the Qur'an did not explicitly prohibit such a marriage, such a marriage was nonetheless to be avoided. - Perhaps because, in past eras, it was commonly thought that the male's greater relative power in society, and his authority in the home, might be used to sway the so-called 'weaker' Islamic wife away from the faith, if she were to marry a Christian or a Jew.
Today of course, in the modern world, we are much more used to respecting the strength and independence and power of women, who have in some cases even been the leaders of great national political movements.
And though there is a common view among Muslims that only the Muslim male has the freedom to enter into an Islamic marriage with a Christian or Jewish woman, it is important to note that there are indeed very serious and learned Islamic voices with exactly the opposite view.
I do not write here as someone who claims religious authority or leadership. I write more simply, as a Muslim journalist, to make note of the fact that there is indeed an alternate view within learned Islam, very respectful and positive about the case of the marriage of a Muslim woman with a Jewish or Christian man.
Here are some key texts:
In 1994 - the pre-internet era, now seeming as if a century ago! - there was a discussion of this topic in the January 1994 issue of a 'Voice of Islam' newsletter from the Islamic Society of the Washington Area. This discussion has now been copied online, and though the discussion takes a critical view, the discussion contains the following paragraph, very helpful, I think:
« Some jurists opine that if a non-Muslim person of the book (male) is of such a character etc., that we can be sure that he will not enforce the wife to accept his religion, that conversely the woman is of such fortitude that she will not be swayed by falsehood, and that she makes it a part of the marriage contract that she will in no way be forced to accept a religion other than Islam, that the children will be brought up according to her beliefs, and that no negative image of Islam will be presented to her etc., then such a contract is allowable. »
http://www.irfi.org/questions_answers/muslim_men_can_marry_nonmuslim.htm
In other words, from the above, the key factor is the inner spiritual strength of the Muslim woman. And a Muslim woman can be very strong indeed. Not only strong, but in today's era and especially in Europe, it is easier than ever before, for Muslim women to have access to a community of support to nourish her own strength.
On this view, if the Muslim woman can genuinely know she is strong enough in her faith that she knows it will be preserved amid her love and devotion to her spouse, then the marriage can be considered as permitted.
And not just permitted - this 'mixed marriage' may even be an instrument by which, in'sh'Allah, the faith can be increasingly honoured and respected and transmitted to others. Love, and being a role model and example, are such beautifully powerful ways to spread faith and the truth.
Another voice, Moiz Amjad, a student of Javed Ahmed Ghamidi, speaks as follows in response to a query on this very same topic:
« In one of my previous answers to a similar question, I had pointed out that a) the Qur'an has expressly mentioned the prohibition of marriage between a Muslim man/woman with a polytheist person; b) As far as the marriage between a Muslim man/woman and a Christian or a Jewish person is concerned, the Qur'an has expressly allowed marriage between a Muslim man and a Jewish/Christian woman but has not given any express directives regarding marriage between a Muslim woman and a Jewish/Christian man. This silence of the Qur'an regarding marriage between a Muslim woman and a Christian/Jewish man, has generally been construed as a disapproval of the Qur'an regarding the particular issue. However, because of the silence of the Qur'an in the related issue, marriage between a Muslim woman and a Jewish/Christian man cannot be termed as prohibited by the Shari`ah. In my opinion, prohibition of a certain matter in the Shari`ah, requires express directives to the effect.
In view of the above explanation, it should be obvious that the ultimate decision regarding such a marriage (between a Muslim woman and a Christian/Jewish man) is left to the individual. »
http://www.understanding-islam.com/rs/s-192.htm
Perhaps most personally, Shaykh Khaled Abu el Fadl, discussing this matter, writes as follows, speaking of the prospective Muslim bride:
« ... she must always remember that only God knows best; that she should reflect on the matter as hard as she can; then she should pray and plead for guidance from God; and then ultimately she must do what her conscience dictates. »
http://www.scholarofthehouse.org/oninma.html
So one can see that learned sources on this issue, have an open mind as to what is taking place in reality in the communities of Europe, where marriages between Muslim women and Christian or Jewish men - yes, they do happen! - are working out wonderfully well.
It may serve the interests of Islam, and the honour and growth of the faith, if couples like this can see their love and marriage as truly a religious marriage, embraced by the wide Muslim and religious communities.
It may indeed be a lifelong wonder and joy and divine gift, in these marriages where one party does not convert, but where the two people, one of them Muslim whether man or woman, where the two people remain a respectful and loving couple in their respective faiths.
- Dan Hajidah
Abdan 'Dan' Hajidah can be reached at: dh-news@europe.com
This work is licenced under a Creative Commons Licence.
<a rel="license" href="http://creativecommons.org/licenses/by/3.0/">
Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.3 or any later version published by the Free Software Foundation. A copy of the license is available at: http://www.gnu.org/licenses/fdl.html.
This work is licenced under a Creative Commons Licence.
<a rel="license" href="http://creativecommons.org/licenses/by/3.0/">
Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.3 or any later version published by the Free Software Foundation. A copy of the license is available at: http://www.gnu.org/licenses/fdl.html.
This article was first excerpted at Indymedia:
http://www.indymedia.be/en/node/29108
Home Mortgage Funding and Islamic Ideals - Fundamentals of Islamic Banking and Lending
Hypotheek Financiering en Islamitische Idealen - Le Financement du crédit hypothécaire et les idéaux Islamiques
- Introduction to the basics of Islamic banking and lending
- Is it realistic to have mortgages where no interest is paid?
- Can a Muslim take an interest-paying mortgage if necessary to get a decent home?
- Applauding the historic French government decision to support interest-free Islamic finance
Muslims are increasingly drawn to the ideal of conducting one's personal financial life as much as possible in accord with the classic principles of Shariah (Islamic religious law), which prohibits "riba" (the payment of interest).
This can sound impossible to many Europeans who have only experienced conventional Western banking arrangements, but it is a more practical idea than many people realise. There are surprisingly simple techniques that are already making interest-free banking and financing a reality.
Islamic banking, providing funding that is entirely free from interest, is now being put into practice on an expanding scale around the world. There is already a dramatically growing global industry of Islamic financial services.
In recent weeks, the government of France has announced a major programme to alter its laws to accommodate Islamic finance and banking, and that they are making a major effort to make Paris a leading centre of Islamic finance. With France taking this lead on the European continent, it may not be long before Islamic interest-free finance is a reality all through the European Union.
Moreover, we are at a moment in history when the world is coming to terms with a global financial crisis, a crisis that seems to have its origins in the worldwide sale of billions of euros' worth of bad, and even worthless, interest-related investments that have been fabricated by Wall Street financiers.
From a Muslim point of view, it might be said that the potential for corruption stemming from 'riba' or interest payments, has now become a whirlwind which is destroying USA financial institutions and damaging the entire global economy.
By striving to live an economic life free of riba, we may be taking a step that is not just spiritually wholesome, but also greatly beneficial for our economic well-being.
On the other hand, there are a number of challenges which remain for those who wish to use interest-free financing. Islamic banking services are not always easily available, even in some predominantly Muslim nations. And there are special limitations and problems for those who wish to avoid paying interest in matters of long-term financing, including that of home mortgage loans.
For the average worker and head of household, it is this particular issue which can be the most difficult when seeking to avoid the payment of interest: How does one finance a home, especially when living in a nation where interest-bearing mortgages are almost the only means to obtain a permanent home residence?
Those who face this practical question often ask: Are there grounds in Shariah, according to sound religious scholars, for sometimes using the traditional interest-charging banking apparatus, for important matters such as buying a home?
What follows is a brief survey of the issues involved in answering these questions: - The ideas of Islamic banking and lending; the current situation of practical possibilities for home loans for a Muslim in Europe; some recent pronouncements of religious scholars; and what may be done to expand the availability of "halal" (permitted under Islamic law) mortgage and financial services.
Contents below:
The prohibition of interest
Principles and forms of Islamic financing
The investor, the businessperson, the homeowner
Short-term small loans vs long-term large loans
Islamic banking and the retail customer in Europe
The query of the Muslim home-seeker
Fatwa permitting some mortgages with interest
New possibilities for local Islamic banking
The prohibition of interest
The prohibition of riba, or interest, is found in the Qur'an itself as well as in the Hadith (the sayings of the Prophet). Islamic finance scholar Dr Mohamed Ariff bin Abdul Kareem summarises crisply the general view that, "Islam prohibits Muslims from taking or giving interest (riba) regardless of the purpose for which such loans are made and regardless of the rates at which interest is charged."
The prohibition of charging or paying interest for the lending of money is not unique to Islam, although it is among Muslims that this ideal remains the most active and honoured. The prohibition against interest was also a classic ideal of Hebrew and Christian religious thought, and also of some ancient Greek texts, all sharing the view that the charging of interest was not moral, that it represented an unfair grasp of someone else's property and livelihood.
However, the Jewish, Christian and of course the Western secular traditions, largely came to accept interest payments as lawful and acceptable, at times depending upon the intentions of the lender, and whether the interest rate charged was "excessive" or not, with a maximum interest rate eventually being set by local secular legal codes.
The history of changing Western views on interest, is also reflected in the ambiguity of the words by which the term 'riba' is translated: Sometimes simply as 'excess', as in "an excess" over the amount originally borrowed; sometimes as 'interest'; and sometimes with the now little-used English term of 'usury'. The term 'usury' originally had a meaning rather like 'riba', meaning any kind of interest charge or payment - though it is now generally understood in English as a legal term meaning merely "interest in excess of the maximum rate allowed by law".
But the Muslim understanding of the prohibition of riba, has remained close to the classic view that this is a comprehensive ban on the charging of interest altogether. Even if this has not been a consistent practice in Muslim societies over the centuries, the ideal has remained generally intact among Muslim scholars.
Although there is a general "consensus" view of scholars on the principles involving riba or interest, and what is permitted in Islamic banking, it should also be said that a learned Muslim voice can nearly always be found with a critical perspective on any issue within this topic. What is presented here is a humble informal summary of the common learned consensus, among scholars who have devoted themselves both to the Qur'an and to enabling a financial structure consistent with their faith.
To many Westerners, the idea of a banking and credit system without interest would seem unworkable. - Yet, today, as Dr Ishrat Husain, former Governor of the State Bank of Pakistan, has noted, the Islamic financial services sector may now comprise approaching USD $1 trillion in assets, and is growing at a rate of 10 to 15 per cent every year.
This is still only a tiny fraction, still less than one per cent, of the world's global asset picture - Islamic banking is yet only a small part of banking commerce in even predominantly Muslim nations, and its structures are still in relatively early stages of development. Nonetheless, an Islamic banking and loan industry that is an alternative to the common Western financial framework, is already functioning with great success, and Islamic banking is clearly expanding with impressive momentum.
How does it work? How can banks lend without interest, and still make money?
It is actually much more realistic than many people realise, and many people around the world actually use - without knowing it - some of the positive banking practices that enable an Islamic bank to thrive and prosper.
Principles and forms of Islamic financing
An Islamic bank - or a private investor - may earn a return on capital by trade and commerce that is not interest-based lending. What is important for such trade to be permitted, is that the amount or rate of return on the capital is not fixed in advance, and that the owner of capital may only share in the return if he also shares in the risks of the economic activity. And of course the business activity or goods involved must be ethical of themselves under Shariah; thus there can be, for example, no funding of equipment or enterprises involved in gambling, and no deception in a trade transaction.
In other words, it is understood that you can supply capital funding to others, and make a profit on supplying such capital - but ONLY if you share in the risk of the permitted activity, and if there is no specific rate of return guaranteed to you.
This can take one of several forms, among the most important of which are as follows:
(1) Mudaraba
One form of permitted trade is that known as "mudaraba", whereby one person supplies capital to a tradesman or entrepreneur. In this case, one is permitted to share in the profits of the business venture - but the lender must also bear the entire risk of loss as well.
(2) Musharaka
Another form of permitted trade is that known as "musharaka", a kind of partnership among two or more people who all supply some capital for a business enterprise. Here, all share in profits, and all share in losses, which can be of different proportions, depending on the amount of capital that is supplied by each.
The above two methods are considered as more central than others, in the traditional literature on Islamic commerce. - But other methods are often more practically significant in the activities of Islamic banks, as follows:
(3) Murabaha
A extremely common transaction form in Islamic finance is that of "murabaha", which refers to an acquisition by the banker and then resale for a higher amount to the client, often described as "cost-plus" financing. Murabaha is very central for the business of Islamic home mortgage lending. With some Islamic banks, this encompasses the vast majority of their transactions.
Here, a banker buys something, such as a house or an automobile, that is desired by a person who does not have the funds to purchase the item himself. The banker adds an amount to the purchase price, and then in turn sells the item to the person desiring it, perhaps accepting monthly payments until the full amount is paid.
There is no interest paid in these transactions. The banker earns a profit by marking-up the cost of the item by some figure, and then re-selling the item so that he profits from his provision of the capital. The banker, it should be noted, does take various risks in purchasing the item, as he is safeguarding it for a time, he is risking that it may drop in value, and he also risks that the party who desires it may not be able to complete the purchase from the banker.
This is occasionally criticised as a method that is not truly sincere in avoiding the charging of interest, since the banker's profit on buying the item and then re-selling it, may be similar to the level of profit another banker would earn by making a loan at some interest rate.
But this criticism ignores the fact that the banker who buys and then re-sells, is truly making a trade for which he is at some risk while the item he is selling is in his possession and ownership. This is different from the circumstance of a money-lender who buys and sells nothing, and is only lending money for which he requires a fixed increase to be returned to him.
(4) Ijara
The banking practice of "ijara" is very similar to what is known in conventional banking terms as 'leasing' or 'renting' - the latter two words are often interchangeable in English, with 'leasing' being thought of as somewhat more lengthy in term than 'renting'. Here, as in murabaha just above, the banker buys an item that is desired by a person who does not have the money to purchase it himself - a house, an apartment, an automobile, business equipment or other items. But here, the banker will retain ownership of the item, and rent or lease the item to the user. The banker may well earn a profit and income, although also risk a loss, given his own long-term risks of ownership.
Ijara dovetails with the "vehicle leasing" or "equipment leasing" already quite common with conventional non-Islamic banking and lending institutions. Among customers around the world, many of them from non-Islamic cultures, there is increasing satisfaction with the concept of leasing items like automobiles, and thus avoiding the burden and knowledge of paying interest. This popularity of leasing among humanity generally, may show that the wish to avoid interest payments is very deeply rooted in human nature and psychology.
Ijara can not only be compared with murabaha above, but can also be combined with it, so that the customer leasing or renting the item, may agree or be allowed to purchase the item after a period of leasing, and part of the lease payment may be credited toward the item's purchase. - An ijara lease-purchase agreement is thus a method of home financing by Islamic banks.
(5) Bai'muajjal
Another variety of Islamic banking is that of "bai'muajjal", or acquisition for payment at a later date. The banker buys an item, and resells it at a higher price with the understanding that the price will be higher because of the difference in time. The tradition of Islamic jurisprudence speaks positively of such a transaction as permitted, exactly because of the time difference; in other words, it is allowed to charge more for an item if payment will be made at some date in the future.
Bai'muajjal has very clear applications, not only in cases where someone will have income at a later date (harvest time, for example) thanks to equipment and supplies purchased now, but also is serving as the basis for Islamic bank credit cards allowing the purchaser to "buy now and pay later".
(6) Bai'salam
Another form of banking is that of "bai'salam", somewhat the opposite of "bai'muajjal", in that here the banker will pay now for goods that are to be delivered at a later date. A banker here is, for example, buying inventory - such as manufactured goods - that will be produced at a later time. The banker pays now, enabling the recipient of funds to produce the goods - and the banker is able to profit when he later takes ownership of the goods which are produced, and is able to profit from their re-sale.
(7) Al-wadiah
With regard to Islamic banking, one should mention the important service of "al-wadiah" or safekeeping of funds, a major purpose of banks and a major benefit to customers in itself. Banks who keep funds in safety for their clients, can then use those funds, investing and sharing them in ways that earn profit.
It is also important to see how depositors in an Islamic bank can earn an income from funds in savings accounts, given that interest is not permitted.
Though an Islamic bank is not allowed to guarantee any fixed rate of return, it may on occasion freely provide gifts of varying kinds to the depositors, including gifts of money. Furthermore, depositors can be truly partners of the bank: they can share their capital with the bank on the musharaka principle outlined above, and the bank may also share its profits with those depositors who are understood as sharing the bank's risks of profit and less. - Such profit-sharing may not be declared in advance in any fixed amount or rate, but may freely be decided and distributed as the bank continues to earn profit from its operations. Of course, the objective of Islamic bank management is to manage operations so carefully, with sufficient reserves and safeguards, that depositors do not in practice bear losses.
In summary, just as an Islamic bank cannot charge any rate of interest, and can only earn profit in trading transactions - Likewise the depositors may not receive a fixed rate of interest or return from the bank, even on their "savings" accounts which they commit to the bank for a long term. - But, very happily, depositors at Islamic banks have often earned excellent income from their deposits, via the bank's gifts and profit-sharing, and in many documented cases they received an income that was higher than that received by depositors at conventional interest-paying banks.
The investor, the businessperson, the homeowner
As outlined just above, the principles of Islamic banking are centred in the sharing of profit and loss via transactions that are forms of trade. This means, as a practical matter, that it is easier to implement Islamic financial practices for investment clients above all, and commercial customers after that. - It is yet a little more difficult to implement Islamic financing to benefit the individual who needs long-term funds to buy a home, although Islamic home financing is indeed being accomplished despite the obstacles.
The investor
For those who have significant funds to invest, a Shariah-compliant investment programme can easily be arranged, in part because investing is itself something that can often be done across international borders. Islamic investments include Shariah-compliant mutual funds investing in shares of companies, and "sukuk" or Shariah-compliant investment certificates. Sukuk securities are sometimes called "bonds" because they are issued by corporations and governments and provide income, though they are backed by assets and provide a share of that asset income, rather than the interest provided by conventional bonds.
For the above kinds of investments, even when not offered by local sources, such investments can be accessed internationally by those who have funds that they can transfer across national boundaries. The brokerage of Shariah-compliant Islamic investments is an increasingly significant part of the international investment framework.
The businessperson
For businesspeople in countries where they have access to an Islamic bank, the principles of Islamic banking lead to a ready participation of the bank in the trading activity of the businessman, especially of trading that is relatively short term (a few years at most). The sharing of profit and loss between banker and businessperson, flows naturally from the core forms of Islamic banking.
The nature of advancing money by an Islamic bank - a mutual sharing of profit and loss - means that there must be a closer connection and personal acquaintance between banker and customer, than is now common in traditional banking practices. In countries where Islamic banking has established a significant presence, this closer relationship between the banker and the recipient of capital is a noticeable hallmark and benefit of Islamic financing.
Because of this close nature of relationship between the Islamic banker and the user of funds, as well as the nature of laws and regulations, this kind of Islamic banking service is more closely tied to the particular country in which the businessperson is active. For businesspeople trading in the countries of the Gulf, or in Pakistan, Malaysia, or other countries with significant Islamic banking presence, it may be very realistic to utilise Islamic financing for their trading activity. But for small businesspeople in European countries without presently functioning Islamic banks, such financing may only be possible at present from private parties and not from any banking institution.
The homeowner and retail banking customer
It is also a more local question, regarding Islamic banking services for the retail banking customer, the consumer who has needs for financing for the essentials of daily life: His home, his furnishings, and in some countries, an automobile that may be needed to drive to work.
This retail customer may not be an independent tradesman, but rather be working as an employee, whether as a professional or as a simple labourer. The customer needs access to funds, not for business ventures properly speaking, but rather for purposes of maintaining the essentials of home and personal life. In other words, this customer needs classic retail banking services, such as home mortgage financing, which are typically provided by conventional banks along with charges of interest on the money that is advanced.
Unlike the investor, and more like the small scale businessperson, the retail banking customer is usually limited to banks within his own national borders, even for customers living in today's "open border" European Union. - It is true that in most respects there are few limitations on commerce among European Union countries. Services and goods offered in one EU country can be generally acquired with ease in any other EU country. - But with some banking services, especially personal loans and advancement of money, and very specifically mortgages, these services often cannot be acquired across national borders, even within the EU.
There are possibilities for the future, of breaking down the national barriers within the EU for mortgage and other lending, that would thus enable, for example, Islamic mortgage lenders in the United Kingdom, to supply mortgage loans across the entire European Union. But such possibilities remain currently at the early stage in Europe. Likewise in Europe, many Islamic banking initiatives have been discussed and proposed and planned, but not yet implemented.
Furthermore, the homeowner cannot always easily approach an Islamic banker for funds as easily as a small businessperson. The homeowner, who is working as an employee, is himself not primarily a trader, though he will engage in trades to acquire his home or furnishings or other items he needs. Moreover, the homeowner's greatest financial needs may be very long-term in nature, whereas the businessperson may be trading on a more short-term basis that is more easily favoured by the bank's existing financial programmes.
Short-term small loans vs long-term large loans
Arising out of the shared profit-and-loss aspect of Islamic banking, and the relatively young nature of the Islamic banking industry, the focus of Islamic banks themselves has been more on short-term trading transactions, where the bank can show a profit within a short space of time or a few years at most.
As Islamic banks institute their practice among their clients, it has proven more difficult to implement lending practices associated with long-term financing, of five years, ten years or more.
Factors involved include: The lack of expertise by the bankers; the need in new banking institutions to show quick profitability; the difficulty for the bank in evaluating investments which are held over a very long term; and the unwillingness of some businesspeople to share profits with a bank in long-term transactions.
And there is another factor as well. Because they do not use interest-charging loans and financial instruments, Islamic banks are not as easily able to gather extra funds for lending from the world capital markets.
With a conventional bank, in the business of creating loans that have interest charges, the bank will often engage in a process of "securitisation" of these loans. The bank will wrap up the loans it is making into a bundle, creating something like an interest-earning bond, and then sells that package of loans on the world capital markets. The interest rate calculations on the loans, are collected to create formulas as to how much profit is being generated by the loan package, which can then be itself traded just like a bond or other financial security.
The selling of these loan packages, with the full balance of the loan principal being returned to the bank as soon as the security is sold, will thus free the bank to make more new loans, without needing to wait for more new funds from depositors.
So the securitisation process permits conventional banks, which may only have a small number of deposits on hand, to continue to give out and lend money on a quite large and long-term scale. The bank may not hesitate to lend money out for 20 or 30 years for home mortgage loans, as the bank will not need to wait 20 years to get back the principal. The bank may have the original loan amount back in its hands almost immediately, thanks to being able to sell its loans to someone else.
The sales of bundles of loans by banks is usually based on the interest rates being earned by the loans inside of the bundle. - Investments of funds by Islamic banks, lacking any interest payments, cannot be sold in the same manner.
There are other ways for an Islamic bank to raise capital, of course, aside from waiting for new deposits from depositors. An Islamic bank can also invite large scale investors to share in its business of providing funds, and thus to share in the profits that the bank makes by providing those funds. In theory, an Islamic bank can also raise capital on a virtually unlimited scale, if it finds the right capital providers. - But in practice, the capital markets for investing in Islamic banks, are much smaller than the capital markets for conventional banks, so there is a much smaller pool of money available for larger size consumer funding such as Islamic mortgages.
So all these factors have all led to a situation, where Islamic lending has been short of the potential for providing long-term, large-scale consumer financing, which is precisely the category including mortgage loans. Since Islamic banks have less access to large amounts of capital for such loans, it also follows that the offerings of mortgage capital that Islamic banks can provide, are likely to be more expensive, and have stricter requirements such as requiring larger down payments from the consumer who is seeking to purchase a home.
Islamic banking and the retail customer in Europe
Economists have long noted, that the value or price of various assets, is affected by the ease with which money can be borrowed to buy those assets. In Europe and in North America, the home finance industry has long been well-established, with people easily obtaining mortgages for 20 or 30 years to buy a home.
But this in turn, has almost certainly created a rise in the prices of homes in these developed economies. In a society built around conventional mortgage lending, people focus on how much they can pay toward a home on their monthly budget. And the price of homes has likely risen, exactly as a result of the money easily available to finance the price of a home for 20 years or longer. - If people were required to pay cash for homes, or to finance no more than half of the purchase price, the overall price of homes would likely be much lower.
Thus, for the customer unwilling to use the traditional apparatus of interest-charging mortgages, but still wishing to obtain a home in such countries, he may find that the homes appear to be extremely difficult to afford.
Islamic communities in Europe are growing rapidly again now. These are very large and very diverse communities, and there has now been a presence in Europe of Islamic financial services, at least on the investment side, for a good number of years. - However, Islamic retail banking for consumers, is still in a very early stage among European nations, and in many countries there are no practical services as yet available, despite much discussion, planning, and preparatory work.
In Belgium, for example, which hosts the capital of Europe and most of the central EU institutions, there seems to be as yet no genuine Islamic retail banking presence, though there has been some substantial discussion of the possibility. One of the very significant global banks, Fortis, with headquarters in Belgium and the Netherlands, and a presence in fifty countries, has some affiliation with Islamic banking globally, and has discussed the idea of bringing Islamic banking to Europe. But this has so far remained a concept rather than a concrete programme as is underway in France.
A Brussels consulting firm which advertises a focus in this area, outlines a survey they undertook on the "Overview of the Belgian Market Research Study on Islamic Finance in Belgium". Other consultants and schools in Europe also offer consulting services or education in the area of Islamic banking. But thus far, many European countries are rather like Belgium, and appear to have little actual presence of Islamic retail banking services.
In Europe, however, major developments in Islamic banking are underway. There is the recent initiative of the French government discussed above, significant developments among the largest European banks in their global operations, and very specifically the flowering of Islamic banking in the United Kingdom, which seems at the moment to be the leading country in Europe for Islamic retail banking to consumers.
Among the well-known international European bank names, HSBC, BNP Paribas, Standard Chartered and Deutsche Bank, among others, are all involved in forays into Islamic banking, at least on the investment side, or in their operations in predominantly Muslim countries.
Among these global banks here in Europe, one of the pioneers and leaders in Islamic banking for retail customers is HSBC Amanah ('amanah' meaning 'trust'), which is currently providing retail Islamic banking and mortgages in the UK as well as in other countries outside of Europe.
It is perhaps not surprising that the UK should be the leader and innovator in Europe for retail Islamic banking to consumers, and for Islamic home mortgages. The UK is one of the most populous countries of the EU in absolute terms, and its Muslim population is quite large as well. Moreover, London is perhaps the true financial centre of the world in these times, and financial innovation has been more likely to take place in the UK first, before anywhere in Europe. Furthermore, housing is extremely expensive in the UK compared to much of the rest of Europe, and thus a smaller number of mortgages are needed to provide a high volume of profits for the banks involved.
The Islamic retail banking and mortgage industry has developed to a significant degree in the UK, as can be seen by glancing at an instructive internet portal for Islamic home financing in Britain, Islamic Mortgages, linking to a variety of the UK Islamic banks, and providing material such as common questions and answers about Islamic mortgages. Here it has been frankly acknowledged that, for example, Islamic mortgages tend to be more expensive and costly than conventional kinds of mortgages.
Thus, for someone without a large income, this would mean a possible reduction in the size or quality of home that one is able to purchase, in choosing an Islamic mortgage versus a conventional bank mortgage.
These Islamic mortgage services in the UK, have for a time been essentially limited to UK residents and UK properties. But they are also an indication of what is spreading to other European countries, or may be available to other countries once EU regulations and timetables develop to allow and encourage banks to provide mortgages across national boundaries.
The query of the Muslim home-seeker
For the head of an Islamic household in European countries - and even in the UK - it may be a perplexing situation to consider how to acquire an adequate home for self and family. - On the one hand, it is both a right and duty to acquire a decent and stable home if possible. And on the other hand, it may be difficult to get a home without being involved in taking a mortgage involving interest.
Renting an apartment or house may be an option - and for some people, renting may be quite suitable, or even preferable, to a house purchase. A person may be living in an area for only a short time, or for a few years. Also, in some places rental properties may be inexpensive, and can be undertaken with long-term leases, such as with some of the nine-year leases in Belgium.
On the other hand, for other people, renting can be difficult, harmful to one's family interests, or even effectively impossible. In some areas, rental properties are quite expensive, compared to homes that may be purchased. Also, for those with families, it may be impossible to find suitable rental quarters in which family, relations and guests can be accommodated. Renting which involves significant extra expenses, or factors of instability and unreliability, can reduce a person's ability to care for his family, and can be greatly harmful to one's life and career. If Muslims shun home ownership out of reluctance to take mortgages, they may become a disadvantaged group both as individuals and as a community.
These factors are relevant in the UK as well, even though some Islamic mortgages are available there. It is explicitly admitted by those offering such mortgages, that Shariah-compliant mortgages may be more expensive than others, involving higher monthly payments, or may involve higher required down payments.
This is very important for working Muslims whose income and means are modest. It may be impossible for them to qualify or pay for an Islamic mortgage for a modest house, whereas they may be able to secure and pay for a mortgage offered by a conventional bank which offers a different payment structure.
As Muslims consider these difficulties, here are some of the traditional concepts that enter into thought and decision:
One is the concept of "darurah" or extreme necessity. - In order to survive, one may be permitted to do what is otherwise unlawful, and this action becomes lawful because of the extreme urgency.
Another is the related concept of "hajah" or need, regarding something which creates serious difficulty if not used or obtained, even if a person can continue to manage in some way without it.
In their lives, people have some special basic original needs, which include that of "markab" - a mount or transportation, updated to the ways of the time and place where we live; and, most fundamentally, "maskan", a place of residence, a home for oneself and family.
So one asks: Is it permissible under Shariah, to sometimes undertake mortgages that bear interest, for the sake of obtaining a home when it is otherwise difficult to do so?
Fatwa permitting some mortgages with interest
Though the area remains controversial, noted Islamic scholars have indeed issued "fatawa" (plural of "fatwa", meaning legal pronouncement) in favour of permitting the Muslim faithful to utilise conventional interest-charging mortgages in some circumstances. Of these fatawa, the most noted is that of Dr Yusuf Al-Qaradawi and the European Council for Fatwa and Research.
This fatwa, "Resolution 2/4 : Purchasing houses with an usurious loan for Muslims living in non-Muslim countries, i.e. taking up a mortgage to buy a house", was issued in Dublin, Ireland at the Council's session of 27 to 31 March 1999. The Council and this fatwa are specifically seeking to address the situation of Muslims in the European countries.
Dr Al-Qaradawi and the Council, ask Muslims to seek Islamic alternatives where possible, and ask European banks to be more sensitive to the needs of Muslims in the products they provide. - But the fatwa says that where other means and resources to finance the primary home are not available, a Muslim may indeed make use of the conventional interest-charging mortgages.
The fatwa makes specific mention of the concepts just cited in the previous section, of darurah and hajah, of necessity and need. For the critical need of a maskan or home, hajah may be treated in respects like darurah, a matter of great and urgent need.
The fatwa also notes historical and juridical antecedents for Muslims making use of interest transactions in dealings with non-Muslim environments.
The fatwa notes how strongly the Muslim householder, family and community may be damaged, if the Muslim householder is not able to secure an adequate home for himself. The fatwa expresses concern that "Muslims will be financially deprived and suppressed" if they do not have fair access to homes, while living within societies that are not designed around Islamic principles. The Islamic householder must be given the means to thrive and prosper while living in countries which are organised in non-Islamic ways outside of his individual control.
We are here dealing with the dynamics of the 'housing bubble'. If the entire society were designed around Islamic principles and interest-free lending, the prices of all houses would be lower. The 'easier credit terms' inflate the value of houses, thus making them harder to afford for Muslims who would like to avoid using those interest-oriented credit facilities.
The fatwa sees the Muslim householder as "compelled" to undertake such mortgages by the circumstances, thus rendering the mortgage, even with interest, as lawful, for this important purpose of obtaining a strictly needed personal home. - Thus, what remains excluded by the fatwa, is the pursuit of interest mortgages for the less important purposes of trading or profiting in real estate that is not one's own primary residence, or where one has another suitable home residence already in hand.
In the more than eight years since its issuance, this fatwa continues to serve and be cited as a major statement of the lawfulness of utilising interest-charging mortgages to obtain a primary residence for oneself, in the circumstance when other means are not available. Many sources rely upon this fatwa as a sound statement of Islamic law, though the fatwa has continued to remain controversial, its ruling criticised by other scholars.
A discussion of the issuance of this fatwa, and the criticism of it by objectors, can be found in a conference paper that was presented in March 2003 by Alexandre Caeiro, "The European Council for Fatwa and Research," on pages 20-24. - Some critics felt that the fatwa is too soft and broad in its concept of "necessity", because, after all, it is sometimes difficult to follow Shariah, and mere difficulty should not easily change the obligation. And furthermore, as many Muslims ask, should not the Shariah apply in full to all times and all places?
But from the point of view of the fatwa, what is at stake here is something far greater and more serious than just the mere personal contentment of an individual Muslim. The individual Muslim and his family may be greatly and permanently harmed, by the inability to acquire a home; and the Muslim community as a whole, its growth in new lands, would also be harmed by the deprivation suffered by Muslim households. The lack of a suitable home, is not a matter of some temporary or limited discomfort - but rather of something more vital and essential to the lives of Muslims. And the fatwa seems to express accurately as well, what many Muslims in Europe have found to be their own prayerful decision in the circumstances in which they live.
New possibilities for local Islamic banking
It is indeed wonderful that large institutions like HSBC have started to offer Islamic banking institutions in Europe, and that other institutions like Fortis are thinking of doing so.
And it is especially wonderful now, that the government of France, has declared on the world stage that it is modifying its laws, to make France a Muslim-friendly centre of Islamic finance.
But a good question is: Can anything more be done, to spur along the process of implementing Islamic banking in the European countries like France's neighbour Belgium, where it does not yet seem to have much of a foothold?
No doubt the French example will be a great example and spur for the rest of the European continent. But as this is written, we are only a few weeks past the French government announcement.
The success of Islamic banking can only take place if it gets started on the ground, in the way that it has started in so many countries, and now in Europe in the UK. It needs to go beyond position papers and theory on the internet, and become realised as truly concrete public banking services.
One can see the Islamic banking industry rapidly expanding around the globe, with the large institutions taking notice of the potential; and one may hope that before too long, the reality may come to one's own neighbourhood.
Perhaps there are some models that can be employed, to bring some form of Islamic banking services to a local level, without waiting for the big banks and governments to implement their programmes. One model is that of the more local or "co-operative" bank (or, in some countries, a "credit union"), that is owned by local individual depositors or share-holders, rather than a regular banking corporation or conglomerate. On a small scale people have at times gotten together to found their own bank.
One small co-operative European bank, of particular relevance to Islamic banking, is the small JAK bank of Sweden, an internet bank with no branches that serves the entire country. Although not itself Islamic, the JAK bank entirely avoids interest altogether - it pays no interest to depositors, and collects no interest upon lending. A study of JAK's operations outlines its operations and its success, including some slightly complex formulas that this interest-free bank uses to make loans.
Such small co-operative banks involve a great deal of effort on the part of the people involved, especially when using an unconventional framework that is different from other co-operative banks in Europe. But nonetheless, the potential is there, and the success has been proven on at least a small scale, showing that a group of committed people can make interest-free banking a reality.
§§§
This essay has benefited greatly from the words and thoughts and actions of others, including draft material from a learned researcher, and the kind support of a member of the European Islamic community.
- Dan Hajidah
Abdan 'Dan' Hajidah can be reached at: dh-news@europe.com
This work is licenced under a Creative Commons Licence.
<a rel="license" href="http://creativecommons.org/licenses/by/3.0/">
Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.3 or any later version published by the Free Software Foundation. A copy of the license is available at: http://www.gnu.org/licenses/fdl.html.
<a rel="license" href="http://creativecommons.org/licenses/by/3.0/">
Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.3 or any later version published by the Free Software Foundation. A copy of the license is available at: http://www.gnu.org/licenses/fdl.html.
This article was first excerpted at Indymedia:
http://www.indymedia.be/en/node/29108
Home Mortgage Funding and Islamic Ideals - Fundamentals of Islamic Banking and Lending
Hypotheek Financiering en Islamitische Idealen - Le Financement du crédit hypothécaire et les idéaux Islamiques
- Introduction to the basics of Islamic banking and lending
- Is it realistic to have mortgages where no interest is paid?
- Can a Muslim take an interest-paying mortgage if necessary to get a decent home?
- Applauding the historic French government decision to support interest-free Islamic finance
by Dan Hajidah
Muslims are increasingly drawn to the ideal of conducting one's personal financial life as much as possible in accord with the classic principles of Shariah (Islamic religious law), which prohibits "riba" (the payment of interest).
This can sound impossible to many Europeans who have only experienced conventional Western banking arrangements, but it is a more practical idea than many people realise. There are surprisingly simple techniques that are already making interest-free banking and financing a reality.
Islamic banking, providing funding that is entirely free from interest, is now being put into practice on an expanding scale around the world. There is already a dramatically growing global industry of Islamic financial services.
In recent weeks, the government of France has announced a major programme to alter its laws to accommodate Islamic finance and banking, and that they are making a major effort to make Paris a leading centre of Islamic finance. With France taking this lead on the European continent, it may not be long before Islamic interest-free finance is a reality all through the European Union.
Moreover, we are at a moment in history when the world is coming to terms with a global financial crisis, a crisis that seems to have its origins in the worldwide sale of billions of euros' worth of bad, and even worthless, interest-related investments that have been fabricated by Wall Street financiers.
From a Muslim point of view, it might be said that the potential for corruption stemming from 'riba' or interest payments, has now become a whirlwind which is destroying USA financial institutions and damaging the entire global economy.
By striving to live an economic life free of riba, we may be taking a step that is not just spiritually wholesome, but also greatly beneficial for our economic well-being.
On the other hand, there are a number of challenges which remain for those who wish to use interest-free financing. Islamic banking services are not always easily available, even in some predominantly Muslim nations. And there are special limitations and problems for those who wish to avoid paying interest in matters of long-term financing, including that of home mortgage loans.
For the average worker and head of household, it is this particular issue which can be the most difficult when seeking to avoid the payment of interest: How does one finance a home, especially when living in a nation where interest-bearing mortgages are almost the only means to obtain a permanent home residence?
Those who face this practical question often ask: Are there grounds in Shariah, according to sound religious scholars, for sometimes using the traditional interest-charging banking apparatus, for important matters such as buying a home?
What follows is a brief survey of the issues involved in answering these questions: - The ideas of Islamic banking and lending; the current situation of practical possibilities for home loans for a Muslim in Europe; some recent pronouncements of religious scholars; and what may be done to expand the availability of "halal" (permitted under Islamic law) mortgage and financial services.
Contents below:
The prohibition of interest
Principles and forms of Islamic financing
The investor, the businessperson, the homeowner
Short-term small loans vs long-term large loans
Islamic banking and the retail customer in Europe
The query of the Muslim home-seeker
Fatwa permitting some mortgages with interest
New possibilities for local Islamic banking
The prohibition of interest
The prohibition of riba, or interest, is found in the Qur'an itself as well as in the Hadith (the sayings of the Prophet). Islamic finance scholar Dr Mohamed Ariff bin Abdul Kareem summarises crisply the general view that, "Islam prohibits Muslims from taking or giving interest (riba) regardless of the purpose for which such loans are made and regardless of the rates at which interest is charged."
The prohibition of charging or paying interest for the lending of money is not unique to Islam, although it is among Muslims that this ideal remains the most active and honoured. The prohibition against interest was also a classic ideal of Hebrew and Christian religious thought, and also of some ancient Greek texts, all sharing the view that the charging of interest was not moral, that it represented an unfair grasp of someone else's property and livelihood.
However, the Jewish, Christian and of course the Western secular traditions, largely came to accept interest payments as lawful and acceptable, at times depending upon the intentions of the lender, and whether the interest rate charged was "excessive" or not, with a maximum interest rate eventually being set by local secular legal codes.
The history of changing Western views on interest, is also reflected in the ambiguity of the words by which the term 'riba' is translated: Sometimes simply as 'excess', as in "an excess" over the amount originally borrowed; sometimes as 'interest'; and sometimes with the now little-used English term of 'usury'. The term 'usury' originally had a meaning rather like 'riba', meaning any kind of interest charge or payment - though it is now generally understood in English as a legal term meaning merely "interest in excess of the maximum rate allowed by law".
But the Muslim understanding of the prohibition of riba, has remained close to the classic view that this is a comprehensive ban on the charging of interest altogether. Even if this has not been a consistent practice in Muslim societies over the centuries, the ideal has remained generally intact among Muslim scholars.
Although there is a general "consensus" view of scholars on the principles involving riba or interest, and what is permitted in Islamic banking, it should also be said that a learned Muslim voice can nearly always be found with a critical perspective on any issue within this topic. What is presented here is a humble informal summary of the common learned consensus, among scholars who have devoted themselves both to the Qur'an and to enabling a financial structure consistent with their faith.
To many Westerners, the idea of a banking and credit system without interest would seem unworkable. - Yet, today, as Dr Ishrat Husain, former Governor of the State Bank of Pakistan, has noted, the Islamic financial services sector may now comprise approaching USD $1 trillion in assets, and is growing at a rate of 10 to 15 per cent every year.
This is still only a tiny fraction, still less than one per cent, of the world's global asset picture - Islamic banking is yet only a small part of banking commerce in even predominantly Muslim nations, and its structures are still in relatively early stages of development. Nonetheless, an Islamic banking and loan industry that is an alternative to the common Western financial framework, is already functioning with great success, and Islamic banking is clearly expanding with impressive momentum.
How does it work? How can banks lend without interest, and still make money?
It is actually much more realistic than many people realise, and many people around the world actually use - without knowing it - some of the positive banking practices that enable an Islamic bank to thrive and prosper.
Principles and forms of Islamic financing
An Islamic bank - or a private investor - may earn a return on capital by trade and commerce that is not interest-based lending. What is important for such trade to be permitted, is that the amount or rate of return on the capital is not fixed in advance, and that the owner of capital may only share in the return if he also shares in the risks of the economic activity. And of course the business activity or goods involved must be ethical of themselves under Shariah; thus there can be, for example, no funding of equipment or enterprises involved in gambling, and no deception in a trade transaction.
In other words, it is understood that you can supply capital funding to others, and make a profit on supplying such capital - but ONLY if you share in the risk of the permitted activity, and if there is no specific rate of return guaranteed to you.
This can take one of several forms, among the most important of which are as follows:
(1) Mudaraba
One form of permitted trade is that known as "mudaraba", whereby one person supplies capital to a tradesman or entrepreneur. In this case, one is permitted to share in the profits of the business venture - but the lender must also bear the entire risk of loss as well.
(2) Musharaka
Another form of permitted trade is that known as "musharaka", a kind of partnership among two or more people who all supply some capital for a business enterprise. Here, all share in profits, and all share in losses, which can be of different proportions, depending on the amount of capital that is supplied by each.
The above two methods are considered as more central than others, in the traditional literature on Islamic commerce. - But other methods are often more practically significant in the activities of Islamic banks, as follows:
(3) Murabaha
A extremely common transaction form in Islamic finance is that of "murabaha", which refers to an acquisition by the banker and then resale for a higher amount to the client, often described as "cost-plus" financing. Murabaha is very central for the business of Islamic home mortgage lending. With some Islamic banks, this encompasses the vast majority of their transactions.
Here, a banker buys something, such as a house or an automobile, that is desired by a person who does not have the funds to purchase the item himself. The banker adds an amount to the purchase price, and then in turn sells the item to the person desiring it, perhaps accepting monthly payments until the full amount is paid.
There is no interest paid in these transactions. The banker earns a profit by marking-up the cost of the item by some figure, and then re-selling the item so that he profits from his provision of the capital. The banker, it should be noted, does take various risks in purchasing the item, as he is safeguarding it for a time, he is risking that it may drop in value, and he also risks that the party who desires it may not be able to complete the purchase from the banker.
This is occasionally criticised as a method that is not truly sincere in avoiding the charging of interest, since the banker's profit on buying the item and then re-selling it, may be similar to the level of profit another banker would earn by making a loan at some interest rate.
But this criticism ignores the fact that the banker who buys and then re-sells, is truly making a trade for which he is at some risk while the item he is selling is in his possession and ownership. This is different from the circumstance of a money-lender who buys and sells nothing, and is only lending money for which he requires a fixed increase to be returned to him.
(4) Ijara
The banking practice of "ijara" is very similar to what is known in conventional banking terms as 'leasing' or 'renting' - the latter two words are often interchangeable in English, with 'leasing' being thought of as somewhat more lengthy in term than 'renting'. Here, as in murabaha just above, the banker buys an item that is desired by a person who does not have the money to purchase it himself - a house, an apartment, an automobile, business equipment or other items. But here, the banker will retain ownership of the item, and rent or lease the item to the user. The banker may well earn a profit and income, although also risk a loss, given his own long-term risks of ownership.
Ijara dovetails with the "vehicle leasing" or "equipment leasing" already quite common with conventional non-Islamic banking and lending institutions. Among customers around the world, many of them from non-Islamic cultures, there is increasing satisfaction with the concept of leasing items like automobiles, and thus avoiding the burden and knowledge of paying interest. This popularity of leasing among humanity generally, may show that the wish to avoid interest payments is very deeply rooted in human nature and psychology.
Ijara can not only be compared with murabaha above, but can also be combined with it, so that the customer leasing or renting the item, may agree or be allowed to purchase the item after a period of leasing, and part of the lease payment may be credited toward the item's purchase. - An ijara lease-purchase agreement is thus a method of home financing by Islamic banks.
(5) Bai'muajjal
Another variety of Islamic banking is that of "bai'muajjal", or acquisition for payment at a later date. The banker buys an item, and resells it at a higher price with the understanding that the price will be higher because of the difference in time. The tradition of Islamic jurisprudence speaks positively of such a transaction as permitted, exactly because of the time difference; in other words, it is allowed to charge more for an item if payment will be made at some date in the future.
Bai'muajjal has very clear applications, not only in cases where someone will have income at a later date (harvest time, for example) thanks to equipment and supplies purchased now, but also is serving as the basis for Islamic bank credit cards allowing the purchaser to "buy now and pay later".
(6) Bai'salam
Another form of banking is that of "bai'salam", somewhat the opposite of "bai'muajjal", in that here the banker will pay now for goods that are to be delivered at a later date. A banker here is, for example, buying inventory - such as manufactured goods - that will be produced at a later time. The banker pays now, enabling the recipient of funds to produce the goods - and the banker is able to profit when he later takes ownership of the goods which are produced, and is able to profit from their re-sale.
(7) Al-wadiah
With regard to Islamic banking, one should mention the important service of "al-wadiah" or safekeeping of funds, a major purpose of banks and a major benefit to customers in itself. Banks who keep funds in safety for their clients, can then use those funds, investing and sharing them in ways that earn profit.
It is also important to see how depositors in an Islamic bank can earn an income from funds in savings accounts, given that interest is not permitted.
Though an Islamic bank is not allowed to guarantee any fixed rate of return, it may on occasion freely provide gifts of varying kinds to the depositors, including gifts of money. Furthermore, depositors can be truly partners of the bank: they can share their capital with the bank on the musharaka principle outlined above, and the bank may also share its profits with those depositors who are understood as sharing the bank's risks of profit and less. - Such profit-sharing may not be declared in advance in any fixed amount or rate, but may freely be decided and distributed as the bank continues to earn profit from its operations. Of course, the objective of Islamic bank management is to manage operations so carefully, with sufficient reserves and safeguards, that depositors do not in practice bear losses.
In summary, just as an Islamic bank cannot charge any rate of interest, and can only earn profit in trading transactions - Likewise the depositors may not receive a fixed rate of interest or return from the bank, even on their "savings" accounts which they commit to the bank for a long term. - But, very happily, depositors at Islamic banks have often earned excellent income from their deposits, via the bank's gifts and profit-sharing, and in many documented cases they received an income that was higher than that received by depositors at conventional interest-paying banks.
The investor, the businessperson, the homeowner
As outlined just above, the principles of Islamic banking are centred in the sharing of profit and loss via transactions that are forms of trade. This means, as a practical matter, that it is easier to implement Islamic financial practices for investment clients above all, and commercial customers after that. - It is yet a little more difficult to implement Islamic financing to benefit the individual who needs long-term funds to buy a home, although Islamic home financing is indeed being accomplished despite the obstacles.
The investor
For those who have significant funds to invest, a Shariah-compliant investment programme can easily be arranged, in part because investing is itself something that can often be done across international borders. Islamic investments include Shariah-compliant mutual funds investing in shares of companies, and "sukuk" or Shariah-compliant investment certificates. Sukuk securities are sometimes called "bonds" because they are issued by corporations and governments and provide income, though they are backed by assets and provide a share of that asset income, rather than the interest provided by conventional bonds.
For the above kinds of investments, even when not offered by local sources, such investments can be accessed internationally by those who have funds that they can transfer across national boundaries. The brokerage of Shariah-compliant Islamic investments is an increasingly significant part of the international investment framework.
The businessperson
For businesspeople in countries where they have access to an Islamic bank, the principles of Islamic banking lead to a ready participation of the bank in the trading activity of the businessman, especially of trading that is relatively short term (a few years at most). The sharing of profit and loss between banker and businessperson, flows naturally from the core forms of Islamic banking.
The nature of advancing money by an Islamic bank - a mutual sharing of profit and loss - means that there must be a closer connection and personal acquaintance between banker and customer, than is now common in traditional banking practices. In countries where Islamic banking has established a significant presence, this closer relationship between the banker and the recipient of capital is a noticeable hallmark and benefit of Islamic financing.
Because of this close nature of relationship between the Islamic banker and the user of funds, as well as the nature of laws and regulations, this kind of Islamic banking service is more closely tied to the particular country in which the businessperson is active. For businesspeople trading in the countries of the Gulf, or in Pakistan, Malaysia, or other countries with significant Islamic banking presence, it may be very realistic to utilise Islamic financing for their trading activity. But for small businesspeople in European countries without presently functioning Islamic banks, such financing may only be possible at present from private parties and not from any banking institution.
The homeowner and retail banking customer
It is also a more local question, regarding Islamic banking services for the retail banking customer, the consumer who has needs for financing for the essentials of daily life: His home, his furnishings, and in some countries, an automobile that may be needed to drive to work.
This retail customer may not be an independent tradesman, but rather be working as an employee, whether as a professional or as a simple labourer. The customer needs access to funds, not for business ventures properly speaking, but rather for purposes of maintaining the essentials of home and personal life. In other words, this customer needs classic retail banking services, such as home mortgage financing, which are typically provided by conventional banks along with charges of interest on the money that is advanced.
Unlike the investor, and more like the small scale businessperson, the retail banking customer is usually limited to banks within his own national borders, even for customers living in today's "open border" European Union. - It is true that in most respects there are few limitations on commerce among European Union countries. Services and goods offered in one EU country can be generally acquired with ease in any other EU country. - But with some banking services, especially personal loans and advancement of money, and very specifically mortgages, these services often cannot be acquired across national borders, even within the EU.
There are possibilities for the future, of breaking down the national barriers within the EU for mortgage and other lending, that would thus enable, for example, Islamic mortgage lenders in the United Kingdom, to supply mortgage loans across the entire European Union. But such possibilities remain currently at the early stage in Europe. Likewise in Europe, many Islamic banking initiatives have been discussed and proposed and planned, but not yet implemented.
Furthermore, the homeowner cannot always easily approach an Islamic banker for funds as easily as a small businessperson. The homeowner, who is working as an employee, is himself not primarily a trader, though he will engage in trades to acquire his home or furnishings or other items he needs. Moreover, the homeowner's greatest financial needs may be very long-term in nature, whereas the businessperson may be trading on a more short-term basis that is more easily favoured by the bank's existing financial programmes.
Short-term small loans vs long-term large loans
Arising out of the shared profit-and-loss aspect of Islamic banking, and the relatively young nature of the Islamic banking industry, the focus of Islamic banks themselves has been more on short-term trading transactions, where the bank can show a profit within a short space of time or a few years at most.
As Islamic banks institute their practice among their clients, it has proven more difficult to implement lending practices associated with long-term financing, of five years, ten years or more.
Factors involved include: The lack of expertise by the bankers; the need in new banking institutions to show quick profitability; the difficulty for the bank in evaluating investments which are held over a very long term; and the unwillingness of some businesspeople to share profits with a bank in long-term transactions.
And there is another factor as well. Because they do not use interest-charging loans and financial instruments, Islamic banks are not as easily able to gather extra funds for lending from the world capital markets.
With a conventional bank, in the business of creating loans that have interest charges, the bank will often engage in a process of "securitisation" of these loans. The bank will wrap up the loans it is making into a bundle, creating something like an interest-earning bond, and then sells that package of loans on the world capital markets. The interest rate calculations on the loans, are collected to create formulas as to how much profit is being generated by the loan package, which can then be itself traded just like a bond or other financial security.
The selling of these loan packages, with the full balance of the loan principal being returned to the bank as soon as the security is sold, will thus free the bank to make more new loans, without needing to wait for more new funds from depositors.
So the securitisation process permits conventional banks, which may only have a small number of deposits on hand, to continue to give out and lend money on a quite large and long-term scale. The bank may not hesitate to lend money out for 20 or 30 years for home mortgage loans, as the bank will not need to wait 20 years to get back the principal. The bank may have the original loan amount back in its hands almost immediately, thanks to being able to sell its loans to someone else.
The sales of bundles of loans by banks is usually based on the interest rates being earned by the loans inside of the bundle. - Investments of funds by Islamic banks, lacking any interest payments, cannot be sold in the same manner.
There are other ways for an Islamic bank to raise capital, of course, aside from waiting for new deposits from depositors. An Islamic bank can also invite large scale investors to share in its business of providing funds, and thus to share in the profits that the bank makes by providing those funds. In theory, an Islamic bank can also raise capital on a virtually unlimited scale, if it finds the right capital providers. - But in practice, the capital markets for investing in Islamic banks, are much smaller than the capital markets for conventional banks, so there is a much smaller pool of money available for larger size consumer funding such as Islamic mortgages.
So all these factors have all led to a situation, where Islamic lending has been short of the potential for providing long-term, large-scale consumer financing, which is precisely the category including mortgage loans. Since Islamic banks have less access to large amounts of capital for such loans, it also follows that the offerings of mortgage capital that Islamic banks can provide, are likely to be more expensive, and have stricter requirements such as requiring larger down payments from the consumer who is seeking to purchase a home.
Islamic banking and the retail customer in Europe
Economists have long noted, that the value or price of various assets, is affected by the ease with which money can be borrowed to buy those assets. In Europe and in North America, the home finance industry has long been well-established, with people easily obtaining mortgages for 20 or 30 years to buy a home.
But this in turn, has almost certainly created a rise in the prices of homes in these developed economies. In a society built around conventional mortgage lending, people focus on how much they can pay toward a home on their monthly budget. And the price of homes has likely risen, exactly as a result of the money easily available to finance the price of a home for 20 years or longer. - If people were required to pay cash for homes, or to finance no more than half of the purchase price, the overall price of homes would likely be much lower.
Thus, for the customer unwilling to use the traditional apparatus of interest-charging mortgages, but still wishing to obtain a home in such countries, he may find that the homes appear to be extremely difficult to afford.
Islamic communities in Europe are growing rapidly again now. These are very large and very diverse communities, and there has now been a presence in Europe of Islamic financial services, at least on the investment side, for a good number of years. - However, Islamic retail banking for consumers, is still in a very early stage among European nations, and in many countries there are no practical services as yet available, despite much discussion, planning, and preparatory work.
In Belgium, for example, which hosts the capital of Europe and most of the central EU institutions, there seems to be as yet no genuine Islamic retail banking presence, though there has been some substantial discussion of the possibility. One of the very significant global banks, Fortis, with headquarters in Belgium and the Netherlands, and a presence in fifty countries, has some affiliation with Islamic banking globally, and has discussed the idea of bringing Islamic banking to Europe. But this has so far remained a concept rather than a concrete programme as is underway in France.
A Brussels consulting firm which advertises a focus in this area, outlines a survey they undertook on the "Overview of the Belgian Market Research Study on Islamic Finance in Belgium". Other consultants and schools in Europe also offer consulting services or education in the area of Islamic banking. But thus far, many European countries are rather like Belgium, and appear to have little actual presence of Islamic retail banking services.
In Europe, however, major developments in Islamic banking are underway. There is the recent initiative of the French government discussed above, significant developments among the largest European banks in their global operations, and very specifically the flowering of Islamic banking in the United Kingdom, which seems at the moment to be the leading country in Europe for Islamic retail banking to consumers.
Among the well-known international European bank names, HSBC, BNP Paribas, Standard Chartered and Deutsche Bank, among others, are all involved in forays into Islamic banking, at least on the investment side, or in their operations in predominantly Muslim countries.
Among these global banks here in Europe, one of the pioneers and leaders in Islamic banking for retail customers is HSBC Amanah ('amanah' meaning 'trust'), which is currently providing retail Islamic banking and mortgages in the UK as well as in other countries outside of Europe.
It is perhaps not surprising that the UK should be the leader and innovator in Europe for retail Islamic banking to consumers, and for Islamic home mortgages. The UK is one of the most populous countries of the EU in absolute terms, and its Muslim population is quite large as well. Moreover, London is perhaps the true financial centre of the world in these times, and financial innovation has been more likely to take place in the UK first, before anywhere in Europe. Furthermore, housing is extremely expensive in the UK compared to much of the rest of Europe, and thus a smaller number of mortgages are needed to provide a high volume of profits for the banks involved.
The Islamic retail banking and mortgage industry has developed to a significant degree in the UK, as can be seen by glancing at an instructive internet portal for Islamic home financing in Britain, Islamic Mortgages, linking to a variety of the UK Islamic banks, and providing material such as common questions and answers about Islamic mortgages. Here it has been frankly acknowledged that, for example, Islamic mortgages tend to be more expensive and costly than conventional kinds of mortgages.
Thus, for someone without a large income, this would mean a possible reduction in the size or quality of home that one is able to purchase, in choosing an Islamic mortgage versus a conventional bank mortgage.
These Islamic mortgage services in the UK, have for a time been essentially limited to UK residents and UK properties. But they are also an indication of what is spreading to other European countries, or may be available to other countries once EU regulations and timetables develop to allow and encourage banks to provide mortgages across national boundaries.
The query of the Muslim home-seeker
For the head of an Islamic household in European countries - and even in the UK - it may be a perplexing situation to consider how to acquire an adequate home for self and family. - On the one hand, it is both a right and duty to acquire a decent and stable home if possible. And on the other hand, it may be difficult to get a home without being involved in taking a mortgage involving interest.
Renting an apartment or house may be an option - and for some people, renting may be quite suitable, or even preferable, to a house purchase. A person may be living in an area for only a short time, or for a few years. Also, in some places rental properties may be inexpensive, and can be undertaken with long-term leases, such as with some of the nine-year leases in Belgium.
On the other hand, for other people, renting can be difficult, harmful to one's family interests, or even effectively impossible. In some areas, rental properties are quite expensive, compared to homes that may be purchased. Also, for those with families, it may be impossible to find suitable rental quarters in which family, relations and guests can be accommodated. Renting which involves significant extra expenses, or factors of instability and unreliability, can reduce a person's ability to care for his family, and can be greatly harmful to one's life and career. If Muslims shun home ownership out of reluctance to take mortgages, they may become a disadvantaged group both as individuals and as a community.
These factors are relevant in the UK as well, even though some Islamic mortgages are available there. It is explicitly admitted by those offering such mortgages, that Shariah-compliant mortgages may be more expensive than others, involving higher monthly payments, or may involve higher required down payments.
This is very important for working Muslims whose income and means are modest. It may be impossible for them to qualify or pay for an Islamic mortgage for a modest house, whereas they may be able to secure and pay for a mortgage offered by a conventional bank which offers a different payment structure.
As Muslims consider these difficulties, here are some of the traditional concepts that enter into thought and decision:
One is the concept of "darurah" or extreme necessity. - In order to survive, one may be permitted to do what is otherwise unlawful, and this action becomes lawful because of the extreme urgency.
Another is the related concept of "hajah" or need, regarding something which creates serious difficulty if not used or obtained, even if a person can continue to manage in some way without it.
In their lives, people have some special basic original needs, which include that of "markab" - a mount or transportation, updated to the ways of the time and place where we live; and, most fundamentally, "maskan", a place of residence, a home for oneself and family.
So one asks: Is it permissible under Shariah, to sometimes undertake mortgages that bear interest, for the sake of obtaining a home when it is otherwise difficult to do so?
Fatwa permitting some mortgages with interest
Though the area remains controversial, noted Islamic scholars have indeed issued "fatawa" (plural of "fatwa", meaning legal pronouncement) in favour of permitting the Muslim faithful to utilise conventional interest-charging mortgages in some circumstances. Of these fatawa, the most noted is that of Dr Yusuf Al-Qaradawi and the European Council for Fatwa and Research.
This fatwa, "Resolution 2/4 : Purchasing houses with an usurious loan for Muslims living in non-Muslim countries, i.e. taking up a mortgage to buy a house", was issued in Dublin, Ireland at the Council's session of 27 to 31 March 1999. The Council and this fatwa are specifically seeking to address the situation of Muslims in the European countries.
Dr Al-Qaradawi and the Council, ask Muslims to seek Islamic alternatives where possible, and ask European banks to be more sensitive to the needs of Muslims in the products they provide. - But the fatwa says that where other means and resources to finance the primary home are not available, a Muslim may indeed make use of the conventional interest-charging mortgages.
The fatwa makes specific mention of the concepts just cited in the previous section, of darurah and hajah, of necessity and need. For the critical need of a maskan or home, hajah may be treated in respects like darurah, a matter of great and urgent need.
The fatwa also notes historical and juridical antecedents for Muslims making use of interest transactions in dealings with non-Muslim environments.
The fatwa notes how strongly the Muslim householder, family and community may be damaged, if the Muslim householder is not able to secure an adequate home for himself. The fatwa expresses concern that "Muslims will be financially deprived and suppressed" if they do not have fair access to homes, while living within societies that are not designed around Islamic principles. The Islamic householder must be given the means to thrive and prosper while living in countries which are organised in non-Islamic ways outside of his individual control.
We are here dealing with the dynamics of the 'housing bubble'. If the entire society were designed around Islamic principles and interest-free lending, the prices of all houses would be lower. The 'easier credit terms' inflate the value of houses, thus making them harder to afford for Muslims who would like to avoid using those interest-oriented credit facilities.
The fatwa sees the Muslim householder as "compelled" to undertake such mortgages by the circumstances, thus rendering the mortgage, even with interest, as lawful, for this important purpose of obtaining a strictly needed personal home. - Thus, what remains excluded by the fatwa, is the pursuit of interest mortgages for the less important purposes of trading or profiting in real estate that is not one's own primary residence, or where one has another suitable home residence already in hand.
In the more than eight years since its issuance, this fatwa continues to serve and be cited as a major statement of the lawfulness of utilising interest-charging mortgages to obtain a primary residence for oneself, in the circumstance when other means are not available. Many sources rely upon this fatwa as a sound statement of Islamic law, though the fatwa has continued to remain controversial, its ruling criticised by other scholars.
A discussion of the issuance of this fatwa, and the criticism of it by objectors, can be found in a conference paper that was presented in March 2003 by Alexandre Caeiro, "The European Council for Fatwa and Research," on pages 20-24. - Some critics felt that the fatwa is too soft and broad in its concept of "necessity", because, after all, it is sometimes difficult to follow Shariah, and mere difficulty should not easily change the obligation. And furthermore, as many Muslims ask, should not the Shariah apply in full to all times and all places?
But from the point of view of the fatwa, what is at stake here is something far greater and more serious than just the mere personal contentment of an individual Muslim. The individual Muslim and his family may be greatly and permanently harmed, by the inability to acquire a home; and the Muslim community as a whole, its growth in new lands, would also be harmed by the deprivation suffered by Muslim households. The lack of a suitable home, is not a matter of some temporary or limited discomfort - but rather of something more vital and essential to the lives of Muslims. And the fatwa seems to express accurately as well, what many Muslims in Europe have found to be their own prayerful decision in the circumstances in which they live.
New possibilities for local Islamic banking
It is indeed wonderful that large institutions like HSBC have started to offer Islamic banking institutions in Europe, and that other institutions like Fortis are thinking of doing so.
And it is especially wonderful now, that the government of France, has declared on the world stage that it is modifying its laws, to make France a Muslim-friendly centre of Islamic finance.
But a good question is: Can anything more be done, to spur along the process of implementing Islamic banking in the European countries like France's neighbour Belgium, where it does not yet seem to have much of a foothold?
No doubt the French example will be a great example and spur for the rest of the European continent. But as this is written, we are only a few weeks past the French government announcement.
The success of Islamic banking can only take place if it gets started on the ground, in the way that it has started in so many countries, and now in Europe in the UK. It needs to go beyond position papers and theory on the internet, and become realised as truly concrete public banking services.
One can see the Islamic banking industry rapidly expanding around the globe, with the large institutions taking notice of the potential; and one may hope that before too long, the reality may come to one's own neighbourhood.
Perhaps there are some models that can be employed, to bring some form of Islamic banking services to a local level, without waiting for the big banks and governments to implement their programmes. One model is that of the more local or "co-operative" bank (or, in some countries, a "credit union"), that is owned by local individual depositors or share-holders, rather than a regular banking corporation or conglomerate. On a small scale people have at times gotten together to found their own bank.
One small co-operative European bank, of particular relevance to Islamic banking, is the small JAK bank of Sweden, an internet bank with no branches that serves the entire country. Although not itself Islamic, the JAK bank entirely avoids interest altogether - it pays no interest to depositors, and collects no interest upon lending. A study of JAK's operations outlines its operations and its success, including some slightly complex formulas that this interest-free bank uses to make loans.
Such small co-operative banks involve a great deal of effort on the part of the people involved, especially when using an unconventional framework that is different from other co-operative banks in Europe. But nonetheless, the potential is there, and the success has been proven on at least a small scale, showing that a group of committed people can make interest-free banking a reality.
§§§
This essay has benefited greatly from the words and thoughts and actions of others, including draft material from a learned researcher, and the kind support of a member of the European Islamic community.
- Dan Hajidah
Abdan 'Dan' Hajidah can be reached at: dh-news@europe.com
This work is licenced under a Creative Commons Licence.
<a rel="license" href="http://creativecommons.org/licenses/by/3.0/">
Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.3 or any later version published by the Free Software Foundation. A copy of the license is available at: http://www.gnu.org/licenses/fdl.html.
This work is licenced under a Creative Commons Licence.
<a rel="license" href="http://creativecommons.org/licenses/by/3.0/">
Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.3 or any later version published by the Free Software Foundation. A copy of the license is available at: http://www.gnu.org/licenses/fdl.html.
There is nothing new about Muslims in Europe. The European continent has always been a home for Muslims, from the early centuries of Muslim expansion to the present day.
In this current time, when the Islamic presence in Europe is increasingly confident, I am very happy to be a European Muslim, here in this place we have long shared with the other faiths descended from Abraham.
There is indeed a unity present in the world Muslim community, but Muslims in the varying nations also have a rich diversity of experience in the places where they live. Meeting Muslims from Indonesia, Malaysia, Pakistan, Egypt, Lebanon, Turkey or any of the other many Muslim homelands, it is very clear that though the faith is one that unites all, there is yet a particular perspective arising from the cultural life in each place where Muslims reside.
No less so in the nations of Europe, and even particularly in the smaller nations of Western Europe where I spend much of my time. Here, in Europe, this is my home.
I enjoy learning much of the European culture and history - the ancient Greeks, the Renaissance, the Enlightenment. I value and honour much of European society as I have known it: its intrinsic gentleness; its social protections for the poor; its ideals of peace and justice and multi-cultural harmony, ideals that have great appeal despite some persistent failings in the practice.
And I feel the great gift of being able to view this European culture with a Muslim's understanding.
For a while now I have been a journalist researcher doing work for others at European news agencies, with my work benefitting texts published under other names. Occasionally I have had the opportunity to quietly contribute a Muslim perspective to news reports.
But now it is time for me to start to say a few words in my own name, on topics of interest to European Muslims and to the community generally.
Interestingly, it is my journalistic work about a Jew, which is the spur to me writing now in my own name. I have been enrolled to work on the highly significant case of a non-Zionist Jew, a journalist who is a political refugee from the USA in Europe. (This refugee is actually a unitarian Christian in faith, though ethnically a Jew in his personal heritage.)
This Jew is a fellow journalist. The first thing I learned about him is that he has been working to help innocent Muslims imprisoned inside the United States. Because of his journalism, the US threatens to murder him, the US judges have banned his websites from Google and the internet, the US media companies viciously smear him. Many in the US are afraid to speak about him, they abandon this friend of Muslims to be slandered and killed. There will soon be publications about this case, stemming from my work, in another location.
This refugee Jew in Europe is a brave man working to help innocent Muslims, and upcoming events relating to him may save the lives and freedom of many Muslims in the future. His writings on the internet have done much good, till recently when the Americans began blocking the man's writings from the internet and from Google. This refugee's work is so significant and powerful, that the Americans want him banned, slandered, and dead. Huge resources are being spent to attack him, silence him, and kill him.
My research about this brave Jewish journalist, who has been trying to help Muslim prisoners, of course thus serves the Islamic Ummah ('Community'). But more than that, this case showed me that one man can make a difference in the world, and that for some of us, it is a high spiritual obligation to speak when one has something to say.
Not only are the Americans menacing to murder this political refugee, I am also being told by European police that I, too, am in danger of being harmed, for my willingness to research this case of a victim of the USA. I am told I am in danger because of my journalistic contacts with the Americans and others who are involved in menacing this man's life.
Certainly journalism is a dangerous business, and Muslim journalists have been targeted, tortured and martyred for doing their professional work. The Americans have even bombed the journalistic offices of a well-known agency like Al-Jazeera, and imprisoned and tormented its staffers. So I cannot expect safety in my own future.
Being aware that death may come, perhaps even in one's youth, increases the desire to speak while one can. Journalism that is sharp enough, is a form of religious struggle and effort, it is a worthy spiritual task, it is a way to honourably fulfil one's obligations as a person of faith.
In'sh'Allah, this writer shall be able to say and write a few things, to positively benefit the world before I leave it.
Muslims have always had a role in European culture, though Muslim presence here has ebbed and flowed. Also, our contributions to European life have not always been recognised in the European history books and chronicles.
The interplay between what we have received growing up in the Islamic community, and the influences of traditional European values and history, is a matter of constant informal discussion in the circles in which I socialise. On this site I will occasionally place an article addressing some of those issues, when I feel I there is something significant I can say.
I speak only for myself, of course, and I would not claim to represent the Muslim community or to speak for other Muslims. I am not a learned Islamic scholar, and errors and human failings that show in these writings would certainly be mine.
But in speaking with others, I have found that I often have something valuable to share. Often, what I say is far from original, but I have the ability to gather sources from here and there, and bring into focus something that has been overlooked, or not mentioned often enough, and then present it in a way that is useful.
When speaking on matters affecting life as a person of faith, one invariably will touch on topics that are controversial in the spectrum of the religious community. This cannot be avoided. I ask the reader to please consider that my words are sincere, and written with care and time and thought. You please evaluate my words with your own wits and heart, and with at least an inner dialogue with the teachers in your life whom you respect and value.
To give you an idea of my point of view, I will say that I am a great admirer of Professor Tariq Ramadan. His perspectives on Islam have greatly nourished me. I would not claim to be his student, or that my ideas follow upon his. But I do enjoy reading him, and I feel that he often speaks the truth distinctively well.
I will try to respond to those who write to me. Please understand that in the near future, given that I am working closely with a subject who is threatened with assassination by the US government, I am taking certain precautions for security, upon the advice of some associated with the European police agencies. The Americans seem willing to commit some criminal acts in Europe, and some good journalism may not get done if I wind up being too easy a target for them.
Thank you for reading my words here.
- Abdan 'Dan' Hajidah
You can write me at: dh-news@europe.com
Will try to keep up a log of my published pieces at: http://geocities.com/euromuslim/
This work is licenced under a Creative Commons Licence.
<a rel="license" href="http://creativecommons.org/licenses/by/3.0/">
Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.3 or any later version published by the Free Software Foundation. A copy of the license is available at: http://www.gnu.org/licenses/fdl.html.
<a rel="license" href="http://creativecommons.org/licenses/by/3.0/">
Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.3 or any later version published by the Free Software Foundation. A copy of the license is available at: http://www.gnu.org/licenses/fdl.html.
There is nothing new about Muslims in Europe. The European continent has always been a home for Muslims, from the early centuries of Muslim expansion to the present day.
In this current time, when the Islamic presence in Europe is increasingly confident, I am very happy to be a European Muslim, here in this place we have long shared with the other faiths descended from Abraham.
There is indeed a unity present in the world Muslim community, but Muslims in the varying nations also have a rich diversity of experience in the places where they live. Meeting Muslims from Indonesia, Malaysia, Pakistan, Egypt, Lebanon, Turkey or any of the other many Muslim homelands, it is very clear that though the faith is one that unites all, there is yet a particular perspective arising from the cultural life in each place where Muslims reside.
No less so in the nations of Europe, and even particularly in the smaller nations of Western Europe where I spend much of my time. Here, in Europe, this is my home.
I enjoy learning much of the European culture and history - the ancient Greeks, the Renaissance, the Enlightenment. I value and honour much of European society as I have known it: its intrinsic gentleness; its social protections for the poor; its ideals of peace and justice and multi-cultural harmony, ideals that have great appeal despite some persistent failings in the practice.
And I feel the great gift of being able to view this European culture with a Muslim's understanding.
For a while now I have been a journalist researcher doing work for others at European news agencies, with my work benefitting texts published under other names. Occasionally I have had the opportunity to quietly contribute a Muslim perspective to news reports.
But now it is time for me to start to say a few words in my own name, on topics of interest to European Muslims and to the community generally.
Interestingly, it is my journalistic work about a Jew, which is the spur to me writing now in my own name. I have been enrolled to work on the highly significant case of a non-Zionist Jew, a journalist who is a political refugee from the USA in Europe. (This refugee is actually a unitarian Christian in faith, though ethnically a Jew in his personal heritage.)
This Jew is a fellow journalist. The first thing I learned about him is that he has been working to help innocent Muslims imprisoned inside the United States. Because of his journalism, the US threatens to murder him, the US judges have banned his websites from Google and the internet, the US media companies viciously smear him. Many in the US are afraid to speak about him, they abandon this friend of Muslims to be slandered and killed. There will soon be publications about this case, stemming from my work, in another location.
This refugee Jew in Europe is a brave man working to help innocent Muslims, and upcoming events relating to him may save the lives and freedom of many Muslims in the future. His writings on the internet have done much good, till recently when the Americans began blocking the man's writings from the internet and from Google. This refugee's work is so significant and powerful, that the Americans want him banned, slandered, and dead. Huge resources are being spent to attack him, silence him, and kill him.
My research about this brave Jewish journalist, who has been trying to help Muslim prisoners, of course thus serves the Islamic Ummah ('Community'). But more than that, this case showed me that one man can make a difference in the world, and that for some of us, it is a high spiritual obligation to speak when one has something to say.
Not only are the Americans menacing to murder this political refugee, I am also being told by European police that I, too, am in danger of being harmed, for my willingness to research this case of a victim of the USA. I am told I am in danger because of my journalistic contacts with the Americans and others who are involved in menacing this man's life.
Certainly journalism is a dangerous business, and Muslim journalists have been targeted, tortured and martyred for doing their professional work. The Americans have even bombed the journalistic offices of a well-known agency like Al-Jazeera, and imprisoned and tormented its staffers. So I cannot expect safety in my own future.
Being aware that death may come, perhaps even in one's youth, increases the desire to speak while one can. Journalism that is sharp enough, is a form of religious struggle and effort, it is a worthy spiritual task, it is a way to honourably fulfil one's obligations as a person of faith.
In'sh'Allah, this writer shall be able to say and write a few things, to positively benefit the world before I leave it.
Muslims have always had a role in European culture, though Muslim presence here has ebbed and flowed. Also, our contributions to European life have not always been recognised in the European history books and chronicles.
The interplay between what we have received growing up in the Islamic community, and the influences of traditional European values and history, is a matter of constant informal discussion in the circles in which I socialise. On this site I will occasionally place an article addressing some of those issues, when I feel I there is something significant I can say.
I speak only for myself, of course, and I would not claim to represent the Muslim community or to speak for other Muslims. I am not a learned Islamic scholar, and errors and human failings that show in these writings would certainly be mine.
But in speaking with others, I have found that I often have something valuable to share. Often, what I say is far from original, but I have the ability to gather sources from here and there, and bring into focus something that has been overlooked, or not mentioned often enough, and then present it in a way that is useful.
When speaking on matters affecting life as a person of faith, one invariably will touch on topics that are controversial in the spectrum of the religious community. This cannot be avoided. I ask the reader to please consider that my words are sincere, and written with care and time and thought. You please evaluate my words with your own wits and heart, and with at least an inner dialogue with the teachers in your life whom you respect and value.
To give you an idea of my point of view, I will say that I am a great admirer of Professor Tariq Ramadan. His perspectives on Islam have greatly nourished me. I would not claim to be his student, or that my ideas follow upon his. But I do enjoy reading him, and I feel that he often speaks the truth distinctively well.
I will try to respond to those who write to me. Please understand that in the near future, given that I am working closely with a subject who is threatened with assassination by the US government, I am taking certain precautions for security, upon the advice of some associated with the European police agencies. The Americans seem willing to commit some criminal acts in Europe, and some good journalism may not get done if I wind up being too easy a target for them.
Thank you for reading my words here.
- Abdan 'Dan' Hajidah
You can write me at: dh-news@europe.com
Will try to keep up a log of my published pieces at: http://geocities.com/euromuslim/
This work is licenced under a Creative Commons Licence.
<a rel="license" href="http://creativecommons.org/licenses/by/3.0/">
Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.3 or any later version published by the Free Software Foundation. A copy of the license is available at: http://www.gnu.org/licenses/fdl.html.