Earn it Halal

Learn, Earn, Save, and Invest - The halal way. Host: @roodiyaah Contact: [email protected]

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Eat Halal.

Eid Mubarak.
Taqaballalahu minna wa minkum ❤️❤️

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Earn, save, and invest halal. Your rizq is written. Don’t fall victim of ponzi schemes.

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If you’ll be at Eidfest.

Look out for @marblecapital to ask your Islamic finance related questions!

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See you at @eidfestlagos_ tomorrow.
Ask for @marblecapital's stand and we'd be discussing #Sharia-compliant #investing and Personal #Finance management.

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I hope your Zakatul-fitr is ready to go?

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Seeking knowledge is fardh (compulsory) upon every Muslim.

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Be there!

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Be there!

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We’re moving towards the end of Ramadan. Some of us have missed fasts (some due to circumstances or not)
What does the deen say about making up out missed fasts?

Join us tonight after 9:00pm to talk about Fidyah & Kaffarah

[Earn it Halal @earnit_halal]

We’re moving towards the end of Ramadan. Some of us have missed fasts (some due to circumstances or not)
What does the deen say about making up out missed fasts?

Join us tonight after 9:00pm to talk about Fidyah & Kaffarah

[Earn it Halal @earnit_halal]

Ask Allah to give you the wealth you can give Zakat from🤲🏼

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“Allahumma innaka `afuwwun tuhibbul `afwa fa`fu `annee”

“O Allah, Indeed You are Most Forgiving, and You love forgiveness; so forgive me”

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Spend towards the cause of Allah from the little you have.

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Those who are extravagant are friends of Shaytaan.

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Access yourself before Allah will do accountability of your deeds. Are you doing the right things? Are you following the right path? Are you worshipping Allah the way he ought to be worshipped?

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Recite the Qur’an. Read the menain of the Qur’an. Don’t waste your Itikaf.

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-Ask Allah for forgiveness.
-The best way to increase your wealth is by seeking forgiveness.

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It is important for Muslims who are Conscuous of Allah to increase their good deeds in these period.

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Ramadan is a very big opportunity to improve our Ibadah.
If you still haven’t made the most of it. There’s still time!

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We’re live!

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[Habeeb Gbenle @bibasport]

RAMADAN DAY 25: RIBA IN TRANSACTIONS – WAKALAH (AGENCY)

What is Wakalah?
Wakalah refers to delegating someone to act on one’s behalf in a permitted matter.
In AAOIFI Shari’ah Standard No. (23) on Agency:
“2/1/1 Agency is the act of one party delegating the other to act on its behalf in what can be a subject matter of delegation and it is, thus, permissible.”

This means that an agent (wakeel) acts on behalf of the principal in executing transactions.
The standard further clarifies in 5/2:
“The agent is considered as a trustee in holding the asset in question, and therefore, he is not bound to indemnify the principal for that asset in case of damage. He shall be held responsible for indemnity only when the damage results from his own misconduct, negligence, or breach of terms or stipulations of the contract.”

Where Does Riba Manifest in Wakalah?
The issue arises when an agency contract includes a guarantee. This is explicitly prohibited in Shari’ah Standard No. (5) on Guarantees:
“5/2 ...It is not permissible to combine agency and personal guarantees in one contract at the same time (i.e. the same party acting in the capacity of an agent on one hand and acting as a guarantor on the other hand) because such a combination conflicts with the nature of these contracts. In addition, a guarantee given by a party acting as an agent in respect of an investment turns the transaction into an interest-based loan, since the capital of the investment is guaranteed in addition to the proceeds of the investment (i.e., as though the investment agent had taken a loan and repaid it with an additional sum which is tantamount to Riba).”

This prohibition exists because an agent's role is that of a trustee, not a lender providing guaranteed returns.
The shari'ah basis for this is also explained by AAOIFI
“Impermissibility of combining agency and guarantee in the same contract is based on their opposing implications, in addition to the fact that guarantee by the agent entails a suspicion of Riba (usury). Therefore, the status of the agent as a trustee contradicts with provision of a guarantee.”

However, AAOIFI provides an exception:
“But if a guarantee is not stipulated in the agency contract and the agent voluntarily provides a guarantee to his principals independently of the agency contract, the agent becomes a guarantor in a different capacity from that of agent. In this case, such an agent will remain liable as guarantor even if he is discharged from acting as agent”.

Wakalah and ATM Transactions: Is There Riba?
A debated issue in modern banking is whether fees for ATM withdrawals from a non-issuing bank involve Riba.
For instance, when you open a current account, your bank essentially borrows your money (Qard). You can withdraw funds without interest, but what happens when you use another bank’s ATM?

Shari’ah Standard No. (19): Loan (Qard): “Among the most important modern applications of Qard are the following:
Current accounts
- 10/1/1 The reality of current accounts is that these are loans and not deposits. Thus, the institution comes to own the amounts and a liability to repay the amount is established against it.
- 10/1/2 It is permissible for the institution to demand wages for services rendered to the holders of the current accounts."
- 10/1/3 It is permissible for the institution to render services related to deposits and withdrawals to the owners of the current accounts with or without compensation like chequebooks and ATM cards and the like...”
This is confirmed again in Shari’ah Standard No. (2): Debit Card, Charge Card and Credit Card
“4/5 Cash withdrawal using a card
- 4/5/1 It is permissible for the cardholder to withdraw an amount of cash within the limit of his available funds, or more with the agreement of the Institution issuing the card, provided no interest is charged.
- "4/5/2 It is permissible for the Institution issuing the card to charge a flat service fee for cash withdrawal, proportionate to the service offered, but not a fee that varies with the amount withdrawn.”

Practical Example of a Permissible ATM/POS Fee
Suppose you have an account with Bank A and withdraw ₦10,000 from Bank B’s ATM/POS agent. If Bank B/POS agent charges ₦100 as a flat fee (not a percentage of the withdrawal amount), it is seen as a legitimate service charge. However, if Bank B/POS agent charges 1% (₦100 on ₦10,000, but ₦200 on ₦20,000), then it could be considered Riba, as the charge increases with the amount withdrawn.

Therefore, particularly for POS agents, when a fee is charged in line with the amount withdrawn, especially when there is no extra cost incurred to justify the increment, this is not permissible and deemed as Riba.

Still on Service Fee
Scholars like Dr. Saad Al-Khathlan, argue that when you withdraw cash from another bank’s ATM, you are still accessing your own account balance. The ATM provider is simply facilitating the transaction and charging a service fee for operational costs like electricity, maintenance and security. This fee is allowed as long as it is fixed and not based on the withdrawal amount, ensuring it remains a genuine service charge rather than an interest-based fee.

Sheikh Abdulmohsin bin Abdullah Al-Zamil confirms this “...If this amount (the service charge) is absolute and does not increase with the increase in the withdrawal amount or decrease with its decrease, and is taken against a service since this ATM has costs. Thus the bank from which the amount is withdrawn is performing an Agency (Wakalah) on behalf of your bank, the card issuer, then this is a Wakalah contract and a Wakalah for a fee is permissible especially if there is no suspicion of Riba.”

Allah Know Best.