Name: Khoirunnida Yasmin

Student ID: 21311338/ Management IP

Subject: Islamic Business Ethics Resume chapter 11

Riba and Ghoror

Riba comes from the word Ar Roba in language, but linguistic understanding of terms
is not enough. An operational definition is needed for a more complete understanding.
Additions referred to in Riba Category are additions that occur in buy and sell transactions
and debt transactions. Here we must specify the surcharge again. This does not mean that all
additional charges for the purchase and sale of and Debt shall be deemed to be of high
interest. Like the price of fruits is higher in location A than in location B. It does not mean
that the fruits seller A usury.

Islam prohibits Riba because it inculcates miserliness, selfishness, callousness,

indifference, inhumanity, greed, and worship of wealth. It also destroys the spirit of
sympathy, mutual help, and cooperation, and thus affects the feelings of brotherhood and
unity among the community. It is prohibited because it causes many economic evils, for
example, it leads to hoarding of money, adversely affecting its circulation among larger
sections of society. It also causes the establishment of monopolies, cartels, and concentration
of wealth in a few hands. And so, the gulf between the rich and the poor widens.

Riba can occur in two transactions, in which there will be a division of each, namely:

1. Accounts Payable Transactions (Riba Dayn/Duyun). Dayn riba is usury that occurs in
accounts payable transactions and is further divided into two, namely:

a. Lending and Borrowing (Riba Qardh)

Debt-based riba is borrowing and borrowing. There should be no additions in this

transaction. Every time there is an addition in the debt contract receivables, it is
included in usury.

b. Benefits of delayed payments (Riba Jahiliyah)

 The occurrence of additions in accounts payable transactions when someone who
is in debt pays late.

2. Sale and Purchase Transactions (Riba Buyu’). This sale and purchase transaction is
divided into 2, namely:

a. Riba Excess (Fadhl)

Fadhl usury refers to ribawi items numbered 6, namely: gold, silver, bur (good
wheat), sya’ir (poor wheat), dates and salt.

b. Riba 2 Agreement (Yad)

This transaction is called usury because hands do not meet each other (no cash/no
cash/no cash/credit).

Here are some verses in the Qur'an which explain the prohibition of usury/ Riba:

‫َواَ َح َّل هّٰللا ُ ۡالبَ ۡي َع َو َح َّر َم الرِّ ٰبوا‬

"Allah has justified buying and selling and forbidding usury." (Al Baqarah: 275).

‫ٰۤيـاَيُّهَا الَّ ِذ ۡي َن ٰا َمنُوا اتَّقُوا هّٰللا َ َو َذر ُۡوا َما بَقِ َى ِم َن الرِّ ٰبٓوا اِ ۡن ُك ۡنتُمۡ ُّم ۡؤ ِمنِ ۡي َن‬
"O you who believe, fear Allah and leave the rest of usury (which has not been collected) if
you are believers" (Al Baqarah 278).

‌‫ب ِّم َن هّٰللا ِ َو َرس ُۡولِ ٖ ۚه‬

ٍ ‫فَاِ ۡن لَّمۡ تَ ۡف َعلُ ۡوا فَ ۡا َذنُ ۡوا بِ َح ۡر‬
"So, if you don't do (abandon the rest of usury), then know that Allah and His Messenger will
fight you." (QS Al Baqarah 279).
 َ َ‫َواَ َح َّل هّٰللا ُ ۡالبَ ۡي َع َو َح َّر َم الرِّ ٰبوا‌ ؕ فَ َم ۡن َجٓا َء ٗه َم ۡو ِعظَةٌ ِّم ۡن َّرب ِّٖه فَ ۡانتَ ٰهى فَلَهٗ َما َسل‬
ؕ‫ف‬
‫ار هُمۡ فِ ۡيهَا ٰخلِ ُد ۡو َن‬‌ِۚ َّ‫ص ٰحبُ الن‬ ۡ َ‫ك ا‬َ ‫ولٓ ِٕٮ‬
ٰ ُ ‫َواَمۡ ر ُٗۤه اِلَى هّٰللا ِ‌ؕ َو َم ۡن َعا َد فَا‬

"Allah has justified buying and selling and forbidding usury. Those who have reached a ban
from their Lord, then continue to stop (from taking usury), then for him that he has taken
before (before the prohibition comes) and his affairs (up to) to Allah. People who return (take
usury), then that person is the inhabitants of hell they are eternally in it (QS Al Baqarah 275).

- GHOROR

According to Ibnul Qayyim Al Jauziyyah, Ghoror is the ultimate result, of unknown

nature and size. An example is insurance. What are you buying when you buy a premium for?
How do you measure coverage? This is called unknown. When ambiguity occurs at the end,
it's called a minor galler, and there's nothing wrong with that because it's inseparable from the
nature of the transaction. Payment of tuition fees when it is not clear whether the paying
student will be successful, the outcome, etc. However, if the ambiguity arises at the beginning
like in the previous insurance, if it is not clear what you have purchased, this is Glore and is
prohibited. Like gambling and betting. The bet is cruel or unclear from the start. Because you
buy opportunities that you can't measure those opportunities. Insurance is also called
gambling. Ghoror may also appear in Islamic stocks, but this is still debated, and some may
or may not allow it. We have the right to choose our opinions, but they must be based on
clear reason and knowledge. Don't just be a fanatic and go along with it. Here are some
arguments about ghoror:

‫صا ِة َو َع ْن بَي ِْع ْال َغ َر ِر‬

َ ‫صلَّى هَّللا ُ َعلَ ْي ِه َو َسلَّ َم َع ْن بَي ِْع ْال َح‬
َ ِ ‫نَهَى َرسُو ُل هَّللا‬
"The Prophet sallallaahu 'alaihi wa sallam forbade buying and selling al-hashah and
buying and selling gharar"

‫اط ِل َوتُ ْدلُوا بِهَا ِإلَى ْال ُح َّك ِام لِتَْأ ُكلُوا فَ ِريقًا ِم ْن َأ ْم َوا ِل‬
ِ َ‫َواَل تَْأ ُكلُوا َأ ْم َوالَ ُك ْم بَ ْينَ ُك ْم ِب ْالب‬
‫ون‬َ ‫اس بِاِإْل ْث ِم َوَأ ْنتُ ْم تَ ْعلَ ُم‬
ِ َّ‫الن‬
 "And do not some of you eat the wealth of another person in a vanity way and (do not)
bring (the matter) of the treasure to the judge, so that you can eat a part of the property of the
other person with (the way of) sin, even though you know” [Al-Baqarah/2:188]

The wisdom of buying and selling prohibition which contains ghoror is, because it
appears that there is a gamble and creates an attitude of hostility towards the person who is
harmed. That is, it can cause great losses to other parties [8]. This prohibition also contains
the intent to protect assets from being lost and eliminate the hostility that occurs in people
due to this type of buying and selling.