Discuss The Relevance Of Islamic Law In Formulating Business Law

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Introduction

The source of Islamic Law starts from the Quran and the Sunnah. It is also known as the combination of two important sources of Islamic law which has a link between reason and revelation. The Quran is the most sacred and contains verses that are related to human beliefs and the way one should live their life. The second source is Sunnah which has sayings of Prophet Mohammad’s deeds. There are a lot of legal contents that exist in both the Quran and Sunnah. The sources also say that it never accepts two different interpretations in the cf. The reasons for making Islamic laws are also written in the sources. The law is legal and valid to handle every illegal case regardless of any time and place in Islam. It also demands legal reasoning that leads to another source of law which is known as legal reasoning. It does not interpret the language of the other two sources but it results in the same result rather than making differences in traditions and beliefs. There are a lot of legal rulings in the sources and made it open to juristic interpretation.

Body

The source of Islamic law Sharia contains rules and regulations by which a Muslim country is governed and develops a relationship between God and man whether Muslim or not. The Hadith and Sunnah are two equal sources of the Quran that go together (Janin and Kehlmeyer, 2015). There are ethical directives that have been recommended, discouraged, forbidden, and permitted. The Sharia encourages Islamic people to get involved in business activities. The only demand is to conduct the business faithfully to accomplish the goals. Islamic finance regulates by abiding by Sharia law.  In these cases, giving and receiving interest is strictly prohibited. The process of gambling is considered as earning without effort and is illegal.

There are many categories in Islamic Finance-

  • Ijara.
  • Musharaka.
  • Mudaraba.
  • Ijara-wa-Iqtina.
  • Murabaha.

These values have roots that the trusteeship grounds accountability and belief in the devotion of Allah. Productivity and hard work are valued and encouraged.

Business ethics is a rule and regulations that are required during operating the business, making decisions, and how one is treating people all around. Islamic laws are very different from Western law and consist of commercial transactions. In Islamic business, the people are challenged regarding the application of the law and the provision of the contract with Islamic law. There are different analyses for business in Islam and it gives an idea about how the business is permissible in Islamic law and about the public interests. When issues fall under jurisdiction they solve it by using Islamic law and the laws in Sariah which is the source of Islam and the literature that is being used are English and Bosnian(Ahmed, 2018). There is also a legal design when it comes to maintaining finance and uses it as a public ordering. According to online assignment help team contracts in the market including finance, banking, and many more. In Islamic banking, there is also the prohibition of having risk-sharing and speculative transactions. It doesn’t have any code other than Sharia which is legalized by the legislative authority and the word legislative authority is being used to refer to a company’s authority which has its laws and regulations.

The management goals are-

  • The following system as the structures and the procedures are.
  • Maintaining values with policies, objectives, ethics, and strategies.

Islamic entrepreneurship-

  • Risk-taking is prohibited in Islam.
  • Satisfying obligations that are related to religions.
  • Working with productive firms.

The actual principle of business in Islam consists of freedom, consideration of the needs of others, and justice for the ones who are maintaining the rules and regulations and being discipline towards the laws that are made to follow without any failure.

There are many Islamic countries but Saudi Arabia is closest to being a fully Islamic state. The country is also welcoming business activities and introducing laws to continue and encourage foreign investments. Malaysia and Egypt have their Islamic part in their national legislation system where there are Islamic courts to solve their problem based on Islamic law. There are even various laws regarding tax and company laws that are required to maintain transactions with foreigners. The Sharia is impossible to change just to deal with the modern values of different countries. These laws are made to maintain justice between the buyers and sellers of the market. Islam has laws governing the firm like maintaining limited partnerships.

Two main things are required to continue Islamic laws in business-

  • The financial competence to manage the values.
  • Ethics.

The values and ethics of the business show how loyal and honest one is and it is not possible to start a business without a good amount of finance when it comes to start-ups.

Huge creation of opportunities-

  • Financing.
  • Risk-taking.
  • Decision making.
  • Innovations.

There are things they also believe that life in the world and good places in paradise as their kind of rewards. Entrepreneurship in business is considered as one of the important parts of Islam and they are having responsibilities to develop prosperities among them and think of it as one of the good deeds they have made. The Sharia in Arabic means “right path” and the elements of Islamic law consist of the offered, the offer, and the acceptance. It has the authority to improve international business and its regulations with the arguments. The countries that follow Islamic rules are very much strict and they are not allowed to follow any other rules that are related to business and if anybody does it will be considered illegal. To have faith in God does not only increase motivation but also helps to understand the value along with the culture of the country and will make us choose the correct path in life. In case of getting involved with any Islamic countries for business, it is important to strictly maintain all kinds of justice in the agreement along with following the laws and rules of the country. It’s been also said that the manager and both the parties need to be trustworthy, loyal and should maintain ethics in terms of the business. To know more about Sharia in Arabic, get free assistance from coursework help online team of OmanEssay

Principles are-

  • Business transactions should be made honestly.
  • Equality should be maintained among the workers.
  • The business should be maintained through mutual consents.
  • The business obligations should be fulfilled.

The difference between the transactions and the institutions does not exist because the Shari has the contracts that make the partnership and make it available and it is not related to any legal laws and regulations related to the Islamic business laws. The situation that struck is the growth in Islamic institutions and their finance and the rise in the price of oil and gases. The Islamic law is also relevant in international countries while maintaining harmony between international regions or it helps to know the change that should be made (Emon, 2012)

Conditions of joint ventures are done in such a way as to avoid disputes in the contract of the business and to maintain the ethics of the business. If the partner joins in the business with their commodity then their value will be considered in terms of the money and it will be their part of the contribution to the business. The profits are measured as per the capital being invested and with the proportion of their shares.

Islamic ethics consists of-

  • Humanity in business contracts.
  • Mutual decision made between the parties.
  • Honesty and loyalty in dealing business.
  • Lawful earning.

Management philosophy in Islam-

  • Man is the message holder of Allah.
  • Man as a leader.

Islam also gives lots of idea regarding the doings of businessmen or what the customer should follow when it comes to business purpose in an Islamic country and also give an idea about maintaining responsibilities and relationship with the foreign clients and investors in terms of doing business. In terms of Islamic business, there are many rules and regulations and one should have more knowledge when it is required by giving a look and gaining knowledge from the Quran. As pointed out by the essay help professional Islamic business is strict so there are people who avoid Islamic business when it comes to cost but they should also understand and get some idea about the business of Islam as they have a lot of values and ethics. The people who don’t follow Islamic business rules due to the strict ethics are considered as fraud so the complaint should be launched against them so that they are unable to do things that are illegal in business in the Islamic countries otherwise they will use the innocence of other people and will try to make huge profit out of it which is considered as illegal(Volokh, 2013). They should also be clear about their laws and guidelines in terms of business in Islamic countries and they should also keep record about whether the rules and guidelines that are being made are followed and maintained without any fail and partiality and also give them a chance to present their views as well as the problem they are facing.

Achieving objectives-

  • The moral character and the commitment that are made to and buy the firm should be maintained.
  • The decisions that are made should be effective.
  • The duties and the responsibilities should be maintained to achieve the objectives.
  • Fair decisions can result in achieving objectives and accomplishing the goals.

The Qur’an contains various legislative provisions and official texts included in all its chapters (suwar) and verses (ayat). There are many rules available to interpret these provisions, such as the shape of the ayah given within the context of Surah, which is interpreted according to its place in the sequence of revelations, its reference to other revelations, and its context about certain conditions that existed at the time of revelation. These and other laws are known as the science of translation (ILM usul aI-fiqh). According to these rules, for example, first the reference to a specific provision and then to the general consideration that deals with a particular situation. As per the assignment maker, There is no general condition that can be defined as a conflict with a particular condition, and a specific law will replace the general proposal. Ordinary offers, however, are always interpreted more broadly, while certain offers are interpreted in a smaller way. Comparative consultation is permitted, as is the case with applications by analogy, except where it is expressly denied. Simplicity and clear language are always preferred. Similarly, the precise spirit of certain terms cannot be altered by inconsistent interpretations(Lowry, 2015). Fourteen thousand years ago Islam was a spiritual, social, and legal revolution. Its ability to make progress remains unchanged. This is a belief of Muslims enlightened in basics. Islamic homosexuality does not exist, therefore, a distorted view of the history and reality of modern times. The Muslims during the rise of their civilization, between the seventh and eleventh centuries, was neither oppressive nor oppressive. It was a progressive, humane, and legalistic movement for change and justice.

Second, we have found that countries, adopting a mixed legal system based on Common Law and Shari’a Law, are characterized by the flexibility of their legal systems to make changes in their laws due to changing socio-economic conditions and that this has contributed to the development of the Islamic financial sector. However, we found that countries, which adopted a mixed legal system based on both Civil Law and Shari’a Law, were less flexible in making changes to their old laws and this hampered the development of the Islamic financial sector in these countries. Thirdly, we found that the Muslim population (the percentage of the Muslim population) had a positive impact on the development of the Islamic banking system. Also, the level of revenue has had a positive and tangible impact on the development of Islamic banks. Get to know more about the development of Islamic banks for your tuition assignments from essay writing help experts of OmanEssay.

Conclusion

The start-ups of the entrepreneurs are faithfully worshipped like God to become successful in the business and the business becomes successful when the businessman maintains good relations and cooperation’s with their customers and with the others. The Islamic business rules are strict but some countries choose to mix the laws with the influence of the actual Islamic laws. The laws are either used fully or partly by the regional areas in other Islamic countries and in Arab, the law is used as family law. It allows free operation of market resources without destroying others’ efforts but the creation that are done artificially are not supported by Islam. There are also people who are supporting the Islamic business facts according to their religious views which are different from the business point of view. The Islamic business believes in the theory of making decisions and following strategies as it is important in the business to be successful with good morale and a positive reputation of the firm and the business. When one maintains ethics, it also gives them ideas about dealing with personal life in a good way. When developing countries need foreign support and technology, the guidelines don’t allow them to give security without maintaining the given rules and regulations. The law also says about the performance of the economic policies that are new and that gives justice to the people from the buyers to the foreign clients and the investors that are involved in the business of Islamic countries. In the Islamic rule of business, the buyers and the sellers are given justice who tries to maintain better relationships with each other and maintain honesty.  The duty is to give an idea to the foreigners about the rules and regulations to the outsiders or the foreigners who come for the business purpose regarding the Islamic laws and the importance to maintain them to continue business with the Islamic country for the moment and future. It is very important to know about the Islamic business when there is a chance to continue the business for further and main business relations for many years due to the agreement made. The strictness of Islamic law and its expense should also be kept in mind before dealing in Islamic countries for business. In the end, the Islamic laws of business are good in its own way to deal with business. Islam motivates the business as they are directly related to the improvement in their standard of living and some other things.

Reference

Ahmed, R., 2018. Sharia Compliant: A User’s Guide to Hacking Islamic Law. Stanford University Press.

Emon, A.M., 2012. Sharia and the Modern State. Islamic Law and International Law: Searching for Common Ground, pp.52-81.

Janin, H. and Kahlmeyer, A., 2015. Islamic law: The Sharia from Muhammad’s time to the present. McFarland.

Lowry, J.E., 2015. Reading the Qur’an as a Law Book.

Volokh, E., 2013. Religious Law (Especially Islamic Law) in American Courts. Okla. L. Rev., 66, p.431.

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