Islam is the only major world religion founded by a businessman. Partly for this reason, Islam has never had any hostility to the profession of the merchant or to Muslim business. In the traditions called Hadith, the Prophet (SAAS) is reported to have said, “The truthful and trusty merchant is associated with the prophets, the upright, and the martyrs.” In Medina, he built a marketplace and organized the rules for Muslim business transactions.
The Muslim businessman is – or should be – guided by the Islamic viewpoint that God created people in a state of dependence upon one another, and that the exchange of goods and services is a necessity of life. Any Muslim business activity (or any business activity, for that matter) that is fair and beneficial to both parties and carries their mutual consent is considered lawful in Islam.
Islam’s holistic approach is evident in three essential tenets: the unity of God, the unity of humankind, and the unity of religion. Probably the most encompassing and most universal ethical prescription in Shari’a is contained in a verse in the Qur’an which requires the Muslim – and by inference, the Muslim businessman – at all times and in all circumstances, to act in a decent and benevolent way, and to refrain from wrongdoing. This overall guiding conception is reminiscent of Aristotle’s admonition not to harm others and to deal with others as one would wish to have others deal with oneself. The well-known “golden rule” of the New Testament, “Do unto others as you would have them do unto you,” is echoed in Islam, “No one of you is a believer until he desires for his brother that which he desires for himself.”
Commerce and business have remained as central subjects in the Islamic ethical tradition. While it is true that for a brief period in Islam’s history its spread was due to the sword, it is also a fact that for a much longer time, its spread has been through individual Muslim businessmen practicing the ethics of Muslim business. The activities of Muslim business were at the crossroads of the ancient trade routes from the Mediterranean, the Arabian Gulf, East Africa, and India, all the way to China. As a result of this central role, many Arab words relating to trade and commerce have been adapted into Western languages. But, it has been said, Muslim businessmen could not have propagated Islam if it were not for their strong adherence to the ethical principles of Muslim business.
It is important to realize that Shari’a prohibits certain Muslim business transactions to prevent injustices such as fraud, profiteering, and unfairness in contracts. These prohibitions are meant to remove uncertainty and to ensure a fair assumption of risk by both parties: it must be said, that in a Muslim business transaction, an activity that is to one person’s gain and another person’s loss is unlawful under Shari’a.
