Business Corner

Working in Hotel Management – An Islamic Perspective

noreply@blogger.com (Busico) — Tue, 23 Sep 2008 14:06:00 +0000

Sheikh Qays b. Muhammad Âl Mubârak, professor at King Faisal University

There can be no doubt that a hotel, in and of itself, is something lawful in Islam. The essential business of a hotel is that of providing rooms for people to lodge in. Since the hotel business is a lawful business, it follows that working in or running a hotel is lawful work.

The problem lies in the fact that most hotels – even in the vast majority of Muslim countries – are involved in some un-Islamic transactions. Most hotels have restaurants that have pork and alcohol on the menu, and that sometimes provide live entertainment. Hotels also provide room service that offers alcoholic drinks, among its many lawful food and drink options, to the guests in their rooms. Many hotels even provide a stocked bar in some of the choicer rooms. Then there are the gambling facilities provided by some hotels.

There can be no doubt that working directly in the distribution of liquor and other unlawful business is unlawful work. However, what is the ruling of working in hotel management, in a capacity that is lawful in itself, but one that cannot be wholly separated from some of the unlawful aspects of the average hotel’s business?

A person may, of his own accord, opt to eschew any work that is in the least bit questionable, to make certain that all of his income is lawful and that nothing is tainted with any unlawful enterprise. He may do so to make sure that he does not in any way whatsoever contributes to encouraging another person in sin. He may simply wish to be free to speak out against sinful behavior and help prevent people from falling into it.

All of these intentions for avoiding questionable work are certainly good. It is certainly an act of piety to refrain from lawful work when some questionable practices are involved in it. This level of piety is easy for those who crave it, but it is certainly difficult in and of itself.

Abstinence from work that is essentially lawful, because it exposes the person to some doubtful matters, means that person must restrain himself from what benefits him materially and from engaging with society in an easy and familiar manner. Therefore, it requires a high level of piety and faith.

This is why a scholar is not supposed to give a general verdict to people that requires them to exercise such a high level of pious aloofness from society. Such a ruling is only suitable for those individuals whom the scholar knows have the strength of faith to bear it.

We see this in the practice of the illustrious scholar Ahmad b. Hanbal. It was his habit to ascertain the circumstances, status, and piety of the people who asked a ruling of him before he would give them his reply.

Once a woman came to him and asked him if she could open her home while she was weaving at night and to avail herself of the sultan’s lamplight. Ahmad asked her who she was. She told him that she was the sister of Bishr al-Hâfî. When he heard that, he said: “Do not do your weaving in that lamplight.”

To understand why Ahmad gave her such a harsh ruling about something that is certainly lawful – she was certainly not stealing from the public light – we must know who Bishr al-Hâfî was. Bishr al-Hâfî was an eminent narrator of hadîth who was a student of such illustrious scholars as Imam Mâlik and `Abd Allah b. Mubârak. Al-Dhahabî tells us that “he was known for his excessive piety, reserve, and sincerity.” [Siyar A`lâm al-Nubalâ’ (10/470)]

Bishr al-Hâfî and his family were people who were careful never to partake of the public wealth, relying exclusively on their own industry for everything. Al-Dhahabî relates to us that when Bishr came to Baghdâd, he would not drink from the sultan’s reservoirs. He instead drank the river water until it injured his throat and he returned to his sister in pain. He made his livelihood through weaving, and that was his only source of income. [Siyar A`lâm al-Nubalâ’ (10/471)]

In this case, Ahmad b. Hanbal took the woman’s status and circumstances into account, and he answered her in a way that was commensurate with her level of piety.

As for people whose circumstances are less that ideal, giving them such legal verdicts will only contribute to their working menial jobs or remaining unemployed. They will simply be forced into hardships which they cannot bear and burdens which Islam does not require them to shoulder. It is feared that such people could grow despondent and displeased with Allah’s decree. It is not allowed for such people to remain aloof from certain things that are merely disliked in Islamic Law, if it might lead them to fall into what is certainly sinful.

When a scholar looks at the work arena of today’s world, even in most Muslim countries, he finds that there are many jobs that are essentially lawful, however very few of those jobs are completely devoid of aspects that are forbidden by Islamic teachings, which the employee will at times be somewhat involved with. This is the case with a career in hotel management and in a wide variety of blue collar and white collar careers. Forbidding people from employment in such circumstances will lead to unbearable hardship.

This is precisely the type of hardship which Islamic Law seeks to spare people. Allah says: “Allah does not which to place you in any difficulty.” [Sûrah al-Mâ’idah: 6]

Indeed, a person can seek employment which is essentially lawful, but not free from some unlawful aspects from an Islamic perspective, and even be rewarded for doing so if he makes his intention to use that employment as an opportunity to increase his good works and his knowledge, or to acquire valuable skills and experience.

In the hospitality industry, for instance, there are possibilities for hotels that operate strictly within the framework of Islamic teachings. Such hotels are seeking to provide an alternative to what is unlawful, but they need people with experience in the industry if they are going to be successful. That experience can only be had in the leading hotels that operate in the world today.

http://www.islamtoday.com/showme2.cfm?cat_id=29&sub_cat_id=1255

The Business of Islam

noreply@blogger.com (Busico) — Tue, 23 Sep 2008 13:40:00 +0000

All Muslims are ‘brothers’ and ‘sisters’ in Islam, but when it comes to the halal industry, business is business... Or is it?

By Ethar El-Katatney

S ex sells: an uncontested truth. But with approximately 1.8 billion Muslims across the world demanding products that comply with their religious principles — a demand that businesses are rushing to meet — it’s safe to say that Islam sells as well. Although the global halal market is often only thought of as relating to food, it is in fact all-encompassing, including all of the business sectors that affect the lifestyles of Muslims, from dress and travel to finance and real estate. Estimates of the market’s worth therefore vary depending on the basket of products considered.

Singapore International Halal Showcase (SIHS), an annual exhibition of halal products, put the halal market’s annual value at $560 billion (LE 3 trillion), while Halal World Expo, the huge Abu Dhabi-based event focused on the halal industry, put the figure as high as $2.1 trillion (LE 11.2 trillion). The Halal Journal, which calls itself the trade journal for the halal industry, estimates it to be worth $580 billion (LE 3.1 trillion). Clearly whatever the estimate, halal products are a lucrative enterprise.

In Egypt, religion plays an important role in the lives of most of its population. From the time of the pharaohs, Egyptians have been highly devout, whether pagan, Muslim, Christian or Jewish. With colonization, however, Egypt’s major cities began to be recognized as cosmopolitan trendsetters, rather than religious hubs. That was until the 1970s and 1980s when what has been referred to as an Islamic revival swept through the country, and a conservative Islamic identity began to take precedence over the national identity for Egypt’s Muslim population.

This revival is reflected in the number of mosques in Egypt: According to the Central Agency for Public Mobilization and Statistics (CAPMAS), in 1986, there was one mosque for every 6,031 Egyptians. By 2005, there was one mosque for every 745 people though the population had nearly doubled.

Today, with an estimated 90% of its population — around 72 million people — considered Muslim, this ‘reemergence’ of Islam has resulted in an influx of businesses looking to cash in on the growing interest in halal products. These businesses are looking to satisfy a previously unsatisfied need: making it possible for people to fulfill the commandments of Islam in a contemporary world. Whether it is about dressing conservatively but fashionably, or making the pilgrimage in style, companies are lining up to accommodate this booming market.

Business Today Egypt interviewed market leaders in four industries where profits are directly linked to Islam, to find out what it is like to do business where the secular and divine intertwine.

Hijabi Style

Once a minority, muhajabat (women who wear a headscarf) are now an overwhelming majority in Egypt. Understanding that this was a market with huge potential, businesses immediately began to make products to satisfy the needs of their veiled customers.

Perhaps the first company to respond was The Tie Shop, a store dedicated exclusively to providing women with headscarves of all colors, styles and fabrics. From velour to chiffon garnished with sequins or beads, these veils quickly began flying off the shelves.

Previously a piece of cloth wrapped once or twice around the head, the hijab (headscarf) has not been free from the influence of fashion — donning the veil can now take up to an hour. It has also spawned complimentary businesses — magazines such as the local Hijab feature models wearing the garment in a variety of ways and pages dedicated to explaining how to create new styles. Hairdressers have also jumped onto the trend — muhajabat can visit a hairdresser who will tie their veil for them in the desired style (rosette and braid for example) or for prices ranging between LE 100 to LE 700, specialized stylists will visit homes to tie the hijab in private.

And after the hijab? Clothes, of course. Catering to the conservative Muslim woman has become big business, with some shops stocking only ankle length skirts, high-necked shirts and the like. Al-Salam Shopping Center near the Ramses Hilton caters to an almost exclusively veiled clientele, selling everything from hip fashions to abayat (the long Islamic dress that is typically black).

Some shops such as the chain Muhajaba release new designs every few months and use advertising gimmicks such as bringing in well-know actresses that have donned the hijab to advertise their new styles. Like the Islamic revival, the rise in muhajaba wear has extended to all segments of society, with many exclusive designer stores also opening shops where the cost of a basic black abaya starts at LE 1,000.

Perhaps the most successful product created to serve the needs of muhajabat is the seamless long sleeve high-neck top that molds to the body and sells for LE 60. Carina, the major producer of these tops, has been so successful that the company’s name has become synonymous with the style. The company has opened 25 stores around the country in three years — a phenomenal success story, according to Carina Marketing Executive Hana Youssef, who claims the product is worn by at least 90% of women in public universities.

“Before we created the Carina top, muhajabat simply couldn’t wear anything they wanted. So we designed a top with a high neck and sleeves that muhajabat can wear under anything they want, and still be conservative,” says Youssef. Carina uses Lycra from Switzerland that is breathable, elastic, seamless and molds to the shape of the body.

“We’re not only targeting Muslims,” says Youssef, who says that the garment is useful for non-veiled women as well, “It’s a product for any woman who wishes to dress conservatively []. It just so happens that most of our clients are Muslim.”

With the success of the classic long-sleeved top, Carina immediately branched out to other similar products, beginning with the t-shirt cut, long-sleeved top, to the tank tops that are used as outerwear by girls under 14. Its product line now includes over 60 underwear and outerwear products for women, ranging from leggings and corsets to long-sleeved sequined tops and hijabs.

Carina has three factories, a customer service department and a team that travels to Italy twice a year to attend fashion shows. According to Youssef, Carina even beat international clothing chain Mango in introducing the ‘hot’ silver and gold leggings two years ago. “We do everything we can to release products that mirror the latest fashion,” she says.

Although Youssef would not divulge the amount, she admits that Carina’s marketing budget is “substantial.” A billboard on Sixth of October Bridge has been up for months; Carina Sucettes (mini-billboards) are everywhere and small Carina booths are found all over the country. According to Youssef, Carina has left the competitors in the dust. “I don’t see that we have competitors at all. There are of course companies that have copied us,” she says.

With the market flooded with clothing options, retailers have found another niche market to target more conservative women: Women-only services such as women-only gyms, women-only beaches, women-only hairdressing salons and women-only cafés.

Sabaya, a hairdresser/café/shop owned by the recently veiled actress Hanan Turk, is only open to veiled women. Turk says Christians and uncovered women are not allowed because the business is based on Islamic standards, and beautifying a woman who will reveal herself publicly is counter-Islamic.

Turk claims she is choosing her beliefs over profit, barring a large number of potential clients in favor of her conservative values. But in other cases, the motive seems more likely to be conservative money rather than values, as some businesses charge inflated prices to clients seeking special halal products, services and locations. For example, the entrance fee at the women-only La Femme beach in Marina is LE 100. The beach provides a women-only environment but otherwise bears no relation to conservative Islamic ideals. Women arrive in abayat, strip into bikinis and are entertained with music and dance — aspects that conservative Muslims would claim contradict proper Islamic behavior.

The Sound of Religion

Books were once the only readily available source of Islamic knowledge, but they were expensive for the average Egyptian and a large portion of society was illiterate. Men often preferred to attend mosques to join others in listening to a sheikh’s sermon.

Even so, there was no way to re-listen to the sermon afterwards or recordings for those unable to attend. Although cassettes were introduced in the 1960s, only Qur’an recitations were available in the country, as Al-Azhar did not provide licenses for taping lectures, supposedly fearing the ideas that such lectures could propagate. This resulted in vendors discretely recording lectures and selling the tapes under the table. Hajj Ibrahim El-Tablawy, however, soon changed all that.

Son of the renowned Qar’e (Qur’an reciter) Sheikh Mahmoud El-Tablawy, El-Tablawy created Misk for Islamic Recordings in the early 1980s to record his father’s lectures. He continued in this vein for some time, recording his father and other sheikhs through his father’s connections. This was the case until 1991, when, while riding in a car with a friend, El-Tablawy happened to hear a cassette lecture about the death of the prophet Mohammed (PBUH) by Sheikh Mohammad Hassan. Inquiring where the lecture was produced, he found that it was produced illegally.

“So I asked, why not try to do it properly?” says El-Tablawy. “I said we should try. [] So I took the tape and went to Al-Azhar and told them what I wanted to do. It was the first time anyone had ever done this. The general manager asked for time to think about it. A week later I visited him again. He asked me to extract from the tape the main points and give him two copies of the document and two copies of the tape. I did this and 20 days later, they gave me authorization.”

To play it safe, El-Tablawy also obtained a license from the Ministry of Culture. And that was it. The floodgates opened.

“The response was overwhelming,” says El-Tablawy. The tape of Sheikh Mohammad Hassan’s lecture — the only cassette that could be legally sold — was guzzled by the public. Newspapers reported that it was the highest selling tape in the country.

But bit by bit the market became saturated. Merchants who used to sell their product under the table followed in El-Tablawy’s footsteps and competition became cutthroat. At this year’s annual Cairo International Book Fair in Nasr City, a vast section was dedicated to religious tapes and books. At its peak, the tape industry was turning a 20% profit for El-Tablawy. But more than that proved impossible, as Islamic tapes are sold for between LE 0.95 and LE 1.35, compared to the more lucrative music industry which sells tapes for LE 5 to LE 10.

“At the beginning, the curve was high because the market was untouched. There was a huge boost in production. Then the amount per company decreased because there were [so many] players in the market,” explains El-Tablawy.

With the growing popularity of televangelist Amr Khaled in 2000, the Islamic tape industry received a boost. Those rushing to buy Khaled’s tapes also created an increase in the sales of Qur’an tapes and cassettes featuring other lecturers. And although Khaled copyrights belonged to Al-Noor Company, the current market leader, profits flowed on to other tape producers. Tape sales soared, and the target market grew from older people in rural areas to youth from all segments of society.

Despite this, many companies today get their profits from manufacturing tapes, not by recording new sheikhs. Misk outsources production and tries to bring in new sheikhs from all over the world, but the company and its competitors are no longer turning big profits. And with the introduction of CDs, which are restricting recording sales to the more affluent (since the rural are still attached to their tapes) and with the advent of satellite TV, the market is not going to grow, says El-Tablawy.

“Now, we have satellite,” he explains. “People have access to both voice and audio on all channels. People see them [the sheikhs] every day and can even phone in and talk to them live. Even for listening to Qur’an, there is the Al-Majd channel and people can listen to them. So things have changed.” To survive, El-Tablawy is going to enter the field of portable electronic Qur’ans. He says that he will stay in the tape production business, despite the decrease in profit because he feels he is. “offering something to Muslims.”

“It doesn’t matter what business you’re in,” continues El-Tablawy. “I may have a beard and wear a galabeya and steal. It’s your intention that matters. As long as the product is not haram, you can do anything. You can’t work with wine or in the gambling industry and say ‘I’m working with conscience’. The fact that my business is related to religion shouldn’t matter. You should be honest in [all your dealings]. Then God will put baraka [blessings] in your work. If you work in real estate, for example, you can tell someone that the flat is 200 meters but in reality it is 150 meters. You should use the same benchmarks for any business. There’s a hadith [prophetic saying] that says the bankrupt person is he who prays and fasts and practices Islam outwardly, but in his treatment of others and in his daily life, he is dishonest.”

Halal Music

Although tapes of Islamic lectures and Qur’an recitations may be decreasing, another type of Islamic tape is rising in popularity: nasheed (Islamic songs). More Islamic bands are appearing on the scene every day, but the pioneer in this field is of course, Sami Yusuf.

Bara Kherigi, co-founder of the Awakening Records music label, and Yusuf’s childhood friend and lyricist, stumbled on the lucrative market: youth who want to listen to music but fear that the lyrics about sex and violence are haram. Believing the market was underserved, Kherigi swooped in, along with co-founder Sharif Hasan Al-Banna. With few options available to those who wanted alternative types of music, Yusuf’s first album, Al-Mu’allim (the teacher) released in 2003, was a massive success, selling millions of copies — his songs seemed to be the ringtone of every mobile phone in Egypt. Yusuf’s second album, My Ummah, sold over three million copies globally.

Not only did Kherigi introduce this genre of modern Islamic music, he also brought image to sound by creating the first Islamic music videos. The response was phenomenal. Sami Yusuf’s Hasbee Rabbee was shot on location in four different countries: the United Kingdom, India, Turkey and Egypt, an unparalleled feat in the history of music videos, according to Kherigi. The song hit the top of the charts on TV channels across the world, airing on most mainstream Arab music channels including the nation’s two most popular music channels: Melody and Mazzika. The result: International sales of five million copies of Yusuf’s albums and 16 million website hits.

“Rather than tread the paths of our competitors, Awakening Records intends to set new standards in every way possible — respecting the past but with an eye on the future. We wish to present a modern and dynamic view on Islam through our products,” says the company website, and Kherigi stands by this. “Our products are of the highest quality, entertaining, enlightening, and spiritually uplifting. [...] Through its Islamic music albums, Awakening Records seeks to re-define the term ‘Islamic’ to mean ‘all that is good’ and show the compatibility of modern life with Islam,” he says.

Awakening Records has become an established market leader with a strong brand name, receiving demos from aspiring artists daily and with a distribution network covering 52 countries ranging from Azerbaijan to Australia. The company is now an umbrella company called Awakening Music Group, with three companies underneath it.

Awakening Records secured partnerships with international couriers DHL and UPS, and owns its own warehouses, studios and website — www.awakening.com — with e-commerce facilities, which, Kherigi says, “enables us to sell directly to the public without a middle-man, thereby raising profitability.” The company now has three offices worldwide with the Middle East branch located in Egypt hosting a customized in-house recording studio. To date, Awakening Records has signed on 13 artists, released six albums, held over 150 live concerts, secured corporate sponsorship of more than $1 million (LE 5.35 million) from multinational companies, signed distribution deals with Paramount Pictures, iTunes, MSN Music and Virgin, and has mobile communications multinational Vodafone as the sponsor of Sami Yusuf’s videos on satellite television.

Turn on the Dish

Religious programs via satellite television may have contributed to sinking the tape industry, but the TV industry itself is soaring internationally. Iqraa (recite), the first word of the Qur’an revealed to the Prophet Muhammed (PBUH), is also the name for the first religious channel founded by Sheikh Saleh Kamel.

A market giant, this free-to-air channel went live in 1998, before which no channel was fully dedicated to providing viewers with religious and entertainment programs. Iqraa’s five offices are spread throughout the Middle East: Its two main studios are located in Saudi Arabia and Egypt, while its other offices are in Jordan, Lebanon and Kuwait. For six years, Iqraa held a monopoly over the market and — according to a survey carried out by the Egyptian cabinet — it was the most viewed satellite channel in the entire country in 2004.

Iqraa airs religious programs that tackle issues from every facet of society — women, family life, fatwas, live phone-ins, how to read the Qur’an — on four continents around the world. Though many competitors have launched similar channels, it remains the most recognized brand name, with a loyal following.

Mohammed Sallam, Iqraa’s executive manager based in Saudi Arabia, has been with Iqraa since its inception.

“Iqraa was created to serve the segment of society that didn’t watch TV, believing it overstepped a lot of [moral] boundaries,” says Sallam. “But to our surprise, three years later, we discovered that a variety of groups watched our programs, not just the conservatives.” In response, Iqraa began offering programs to suit a wider audience, seeking to increase its number of viewers.

In 2004, new Islamic channels began to emerge, beginning with Al-Majd and Resalah, which, like Iqraa, offered religious programs targeting a variety of viewers. El-Fajr was also launched as a channel solely dedicated to Qur’an recitation. Today there are approximately 30 other competitors in the field, springing not only from the Middle East: Islam Today in Europe and Bridges in America are two examples of non-Middle Eastern channels.

“But I would call them all competitors in khayr [good],” says Sallam. According to monthly reports Sallam receives from research companies, Iqraa is no longer among the Top 10 most viewed channels in the Middle East. “When you are number four when there are five religious channels is not the same as when you are number nine with 30 religious channels,” says Sallam, describing the impact of increased competition and viewing options.

“But what we noticed is that [our viewers] were very loyal, and the perception of the brand name is very [good],” says Sallam. “Iqraa is to be credited with the fact that it raised Islamic awareness among people in both Arab and Muslim countries. Ten years ago when you’d talk to people about seera [Islamic history], they had no knowledge about it.”

Sallam explains that at first audiences absorbed everything they heard like a sponge and were content listening to any sheikh speak to a camera. Now, explains Sallam, to stay competitive, Iqraa has to maintain the attention of an audience that not only have a multitude of channels to choose from, but have more knowledge and are therefore pickier in what they watch.

“Now, we have to get certain names that [people expect],” says Sallam. “We changed aspects of our presentation: Now, you can have guests in the studio who participate in the discussion. [We bring in new features] like Moez Masoud’s last show where he took to the streets. We must look for new ways that are more impressive and attractive to our [viewers].”

Iqraa targets “everyone: heads of family, the newlyweds, the sheikhs, the young and the old,” says Sallam. The channel uses online polls, email, telephone feedback, focus groups and book and tape sales to find out which sheikhs are most in demand. It is no secret that some sheikhs are more popular than others, and some more controversial. So do the channels choose which sheikhs to pursue?

“Differences in opinion exist in everything or else we wouldn’t have four madhabs [schools of thought],” says Sallam. “We have to give every person what they want and we don’t allow our channel to move in a certain direction to satisfy only one type of Muslim or another.”

Despite being a household name, Iqraa does not turn a profit; in fact, it does not even break even, covering only approximately half of its running costs. The answer to how such a business can survive while making losses is due to its roots in religion.

“Iqraa is not a profit seeking business; it is a huge humane Islamic da’wa [calling to Islam] project,” says Sallam. “We are lucky to participate in such an amazing project, and get paid for it. [] Sheikh Saleh Kamel [the founder] covers the losses and considers this his personal da’wa.”

Although Sallam admits that expenses could be less and that the more than generous budget assigned to various areas like marketing could be cut, he attributes the losses to the fact that commercials on religious channels do not bring in as much money as commercials on entertainment channels. As for the annoying SMS banner at the bottom of the screen? “It brings in malaleem [dimes],” he shrugs.

There’s no two ways around it. Here is a business where apparently (for one person at least) business goals are secondary to its ultimate goal: increasing Islamic awareness and knowledge. And although Iqraa’s marketing is substantial, with above the line and below the line advertising, the goal is more than just money. “When we advertise or campaign for our channel, it’s not just for monetary gains, we are [sending a message] and promoting our ideology,” says Sallam.

There is some controversy around whether the sheikhs appearing on the television programs share a similar ideology when it comes to making an income from what could be seen as their religious duties.

Although the earnings of preachers and sheikhs are not available, Egyptian press has attempted to estimate their income. Akhbar Al-Barlaman reported last September that Amr Khaled receives LE 2 million for every new program. In the same month, Al-Misa’iyya Al-Masriya reported that Muhammad Hussein Yacoub and Muhammad Hassan (the first sheikh to have tapes produced legally in Egypt) each collect LE 100,000 per month, while Khaled El-Guindi receives LE 60,000 per month and Sheikh Yusuf Al-Qaradawi receives LE 10,000 to be a guest on a show. These figures are highly disputed; the second newspaper cited claimed that Khaled receives no payment for his work.

Forbes Arabia differs upwards on the numbers; in March the magazine crowned Khaled the world’s “richest Islamic preacher,” with an estimated income of $2.5 million (LE 13.4 million) in 2007, although Khaled has denied this amount both in press and in person.

On the Forbes list Khaled was followed by the Kuwaiti preacher Tariq Al-Suwaidan whose net income was estimated at $1 million (LE 5.35 million). A’aid Al-Qarani, the Saudi author of the popular self-help book La Tahzan (Don’t be Sad), came third with $533,000 (LE 2.9 million), followed by UAE-based Egyptian preacher Omar Abdel-Kafi with $373,000 (LE 2 million) and Saudi’s Salman Al-Ouda with $267,000 (LE 1.4 million). Forbes calculated net income based on a variety of sources including payments for TV appearances, intellectual property rights from record labels and profit from the sale of books.

“I’m one of those who believe that sheikhs, da’ays [preachers], or scholars that [benefit] monetarily from TV, lectures or travels is no problem,” says Sallam. “On the contrary, it’s necessary [to pay them well]. When I guarantee a da’ay enough income for him and his kids and his family and a good standard of living [] he will not be burdened with [worries about] how he will live. He will be better equipped for daa’wa and reading books and contributing. Football players get tons of money, as do singers and actors. The sheikh has a profession and a much needed one, so there’s no problem in giving him what he wants and more.”

As for his own channel, Sallam expects wider audiences for Iqraa in the future. “People have gotten sick of tafahat [trivialities] — what else can they watch? What will they watch after they have seen music videos, television series, football? They will [start watching us].”

Holy Tourism

Perhaps the industry most well known for bringing in the cash is religious tourism — including the hajj and umrah (lesser pilgrimage) trips. With hajj being one of the five main pillars of Islam and Umrah a much venerated ritual, the number of people who go on hajj is increasing every year by the thousands. Last year, approximately two million people went on hajj. More than this entire mini-industries have been created to satisfy the off-shoots of the pilgrimage including dedicated barber shops outside the kaa’ba to assist pilgrims with executing the appropriate hair trimming customs and slaughter houses to slay the sheep required in the hajj.

The cheapest hajj package goes for around LE 18,000, while first class hajj will set back a pilgrim a whopping LE 120,000. Ashraf Sheeha, owner and founder of Hanove Travel, an elite five star religious tourism agency based in Egypt, organizes high-end hajj. After graduation and his mandatory military service, Sheeha worked at a three star religious tourism company for several years. After learning the ins and outs of the business and making valuable contacts, he started Hanove Travel 19 years ago with a group of friends.

“We put our minds to it and said that we have to focus and specialize and become distinguishable from all other competitors. We chose the field [of religious tourism] because it is never-ending,” says Sheeha. “Year by year our credibility has increased and now we are the most well-known [company] in this field.”

Hanove’s trips include the hajj and umrah once a month, except for Ramadan and Sha’aban, the month preceding Ramadan, where Sheeha sends four and two trips respectively, to cope with an increased demand. For the last several years, according to Sheeha, Hanove has had the highest number of flight reservations on Saudi Airlines and EgyptAir. His office walls are plastered with certificates of appreciation from the airlines and the hotels.

Sheeha says that his team of 30 employees in Cairo works meticulously to satisfy the needs of their 5,000 clients per year. “People say that we are expensive, but [you get] what you pay for. The market has lots of prices, and everyone chooses the level he wants,” he says. Despite weathering criticism over the ever-escalating price of performing hajj, Sheeha believes that if his customers were not satisfied with the price and service, he would not have a waiting list of 400 people for the hajj trip. He also attributes his prices to general price increases in the industry.

“If [the] Hilton sells me rooms for 30,000 riyals [LE 42,725] one year and then 46,000 riyals [LE 65,600] the next, it’s not my fault.” Sheeha’s margin, which he says should be 10%, is actually between 3.5–4%.

“My profit margin is stable. And when I saw that prices became very high, I didn’t feel like I could raise my price [any more]. [] The way I see it is that a high percentages of profit is not always the most important thing, my aim is to see that my customers are satisfied.”

Does this attitude stem from the fact that the business is Islam-related? “Of course,” he answers. “We seek to please [our customers] and it pleases us to work harder because we take thawab [Islamic concept of reward] for this in this world and the afterlife. [The fact that I am doing something for Islam] makes me feel very good, and I feel that God created me with the abilities to do this job. Therefore I am very careful with it.”

As for the other accusation that hajj with Hanove is like a five-star vacation, complete with lobster buffets and people sitting around in tents chitchatting during the days of worship, Sheeha says that he tries to prevent hajj from becoming simply a festivity by offering customers a comprehensive religious experience, including coordinating the sermons given at the time of the hajj. “I try and get sheikhs that suit all tastes — one for fatwas [religious verdicts], one for Qur’an and du’aa [supplication], and one for general talk. [] As much as I can I take care of the religious side like I take care of the administrative side,” he says.

Does he think there is a contradiction between experiencing something that is supposed to be so humbling in a private plane? “I satisfy a certain segment of society,” says Sheeha. “And isn’t it better for us [inside Egypt] to satisfy those needs [rather than have] someone else from abroad do it? People used to get VIP planes from Switzerland. So why not create products for a target that may not think of this product, but have the ability to buy it.” In the end, he says, he is just supplying a service to customers; whether that service is extravagant and expensive or not is irrelevant.

The world has taken notice of the vast and yet-to-be exhausted Islamic market and Egypt is no exception. The industries mentioned in this article are only the tip of the iceberg. From Islamic finance and the moulid industry to books and Islamic schools, the market is an immense industry with the potential for considerable growth.

Businesses in the halal industry share common ground with those in other sectors, but the old adage that business is business does not quite hold true. For some in the business of Islam, the fact that their business is linked with their faith makes all the difference, allowing them to look beyond the bottom line to their service of something that is more than money can buy. bt

http://www.businesstodayegypt.com/article.aspx?ArticleID=8058

The Company of Body and Capital (Mudharaba)

noreply@blogger.com (Busico) — Sat, 06 Sep 2008 05:17:00 +0000

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيمِِ

Origin of the Term Mudharaba

Al Kasani in Bada'i al-Sana'i Vol 8 (May Allah have mercy on him) states that the term mudharabah is derived from darb fil al-ard which means journeying through the land seeking the bounty of Allah. Kasani also mentions that the jurists of Medina called it muqaradah or qirad. Muqaradah being derived from qard, which means refraining or abstaining from something. In this case the rab al mal (owner of the capital) refrained from the right of disposal in his own wealth and delivered it to the mudharib.

Al-Sarkhasi (May Allah have mercy on him) (al-Mabsut Vol 22) choosing between the terms says: We selected the first term i.e. Mudharaba) as it corresponds with what is in the Quran,

وَآخَرُونَ يَضْرِبُونَ فِي الأَرْضِ يَبْتَغُونَ مِنْ فَضْلِ اللَّهِ
"And others who journey through the land seeking the bounty of Allah" [TMQ 73:20] i.e. journeying for trade.

Definition

Shaikh Taqiuddin an-Nabhani (May Allah have mercy on him) states in The Economic System in Islam that it is the partnership of a body with property. It means that one pays his property to another person so as to trade with it for him and the resulting profit is divided amongst them according to what they stipulated.

Legal Justification

Al-Sarkhasi (May Allah have mercy on him) in al-Mabsut mentions that the proof for this type of partnership is the verse;

وَآخَرُونَ يَضْرِبُونَ فِي الأَرْضِ يَبْتَغُونَ مِنْ فَضْلِ اللَّهِ
“And others who journey through the earth seeking the bounty of Allah.” [TMQ 73:20].

Shaikh Taqiuddin an-Nabhani (May Allah have mercy on him) states in The Economic System in Islam that Mudharaba is allowed by Shar'a due to the narration that "Al-'Abbas ibn 'Abdul-Muttalib used to pay the property of the Mudharaba and put certain conditions on the Mudharib." This (information) reached the Messenger of Allah (salAllahu alaihi wasallam) and he consented to it.

Shaikh Taqiuddin an-Nabhani also mentioned that the Ijma'a of the Sahabah was established that the Mudharaba is allowed. Ibn Abu Sheeba narrated from 'Abdullah ibn Hameed from his father from his grandfather "that 'Umar ibn Al-Khattab gave him the property of an orphan as a Mudharaba so he worked with it and gained a profit, and 'Umar divided the surplus with him." Ibn Qudamah narrated in Al-Mughni from Malik ibn al-'Alaa ibn 'Abdurrahman from his father from his grandfather that "'Uthman loaned him property as a Mudharib (Qaradh)." It was also narrated from ibn Mas'oud and Hakeem ibn Hizam that 'the two of them entered into loan (Qaridha).' All of this occurred with the knowledge of the Sahaba and none was reported to disagree with the proceedings or deny their validity, confirming their Ijma'a on the Mudharaba.

The Mudharib – The Worker

The Mudharib is a trustee (amin) for the capital entrusted to him by way of Mudharaba. He takes possession of the capital with the permission of the owner (by entering into a contract after an offer and acceptance has occurred). If the capital is destroyed in his possession without any negligence on his part, then there is no liability for him. Also mentioned by Ibn Abidin in his Hashiyah.

The Mudharib is also an agent of the rabb-al-mal in whatever transactions he undertakes with the wealth of the Mudharaba. He is the one who buys and takes delivery of stocks, and he is the one who is able to return faulty goods and the one whom any legal action will be directed towards.

If he is grossly negligent or he violates the conditions of the contract, such as when the Muwakkil restricts him in the way he can dispose of his property, then the Mudharaba maybe annulled and the Mudharib becomes liable.

The Muwakkil - The Owner of the Property

The owner of the property has no right to dispose of the property that belongs to the company, for or on behalf of the company. Thus it is invalid for the owner of the property to work with the Mudharib, even if the owner stipulated to do so. Rather it is the mudharib who disposes and works, and he has full control over the property.

Shaikh Taqiuddin an-Nabhani states that this is because the contract of the company was concluded on the body of the Mudharib, and the property of the other partner. It is not concluded on the body of the owner of the property, who is like a foreigner to the company and who does not have the right to dispose of anything which belongs to the company.

However the Muwakkil is permitted to restrict the Mudharib in his disposal and the Mudharib must restrict himself in his disposal in accordance with these stipulations. The Mudharib is not allowed to disagree with him because he disposes by the permission of the owner. If the owner permitted the Mudharib to trade with wool only or he prevented him from shipping the goods by sea, the owner has this right to restrict him in these matters. However, this does not mean that the owner of the property disposes in the company. Rather it means that the Mudharib is restricted within the limits defined by the owner of the property. Despite this, the disposal in the company is confined to the worker (Mudharib) only, and the owner of property has no right of disposal.

Furthermore Mudharaba would not be valid until the property is given to the worker by the Muwakkil and the Mudharib is given a free hand over it, because Mudharaba requires handing over the property to the Mudharib.

In Mudharaba, the share of the worker must be defined and the property used in the Mudharaba contract must be of a defined amount. Al Kasani in Bada'i al-Sana'i Vol 8 mentions that if the amount is uncertain or unknown the mudharabah is not valid, as this will lead to an uncertainty of proft.

Profit & Loss

The loss in the Mudharaba is not subject to the agreement of the partners but rather to that which is stipulated in the Shar'a.

Shaikh Taqiuddin an-Nabhani (May Allah have mercy on him) states in The Economic System in Islam “This loss is defined by Shar'a to be only on the property, none of it is upon the body (Mudharib). Even if the capital partner and the mudharib were to agree that the profit and loss is divided among them, the profit would be between them while the loss is only on the property. This is because the company is similar to representation (Wikala) and the agent (Wakeel) does not guarantee. The loss is upon the principal (Muwakkil) only.”

Abdurraziq narrated in Al-Jam'i from 'Ali (ra): "The loss (Al-Wadhi'a) is on the property and the profit is according to what they stipulated." The body however does not lose property, it loses what it spent of effort only and the loss remains on the property.

Forms of Mudharaba

Shaikh Taqiuddin an-Nabhani describes other forms of Mudharaba, such as where two people enter into a partnership with their properties with one of them also acting as the body. So if two persons had between them three thousand dirhams, one of them having two thousand and the other one thousand, and the owner of the two thousand permitted the other to dispose of the capital with the profit divided fifty/fifty, the company would be valid. The worker would be the owner of the one thousand dirhams as a Mudharib to the owner of the two thousand, and would also be his partner. Similarly, Mudharaba could be through the partnership of the capital of two persons and the body of a third person. All these are forms of the Mudharaba.

Furthermore Mudharaba is permitted with non-Muslims. Al-Sarkhasi states in al-Mabsut Vol 22) that “There is no harm if a Muslim accepts money from a Christian by way of Mudharaba because it is a type of trade and mu’amalah. It is therefore an agency granted by the rabb al-mal for transactions in the wealth. Further there is no harm if a Muslim undertakes sale and purchase for the Christian by virtue of the agency.”

However al-Sarkhasi does mention that it is disliked (makruh) for a Muslim to give wealth to a non-Muslim. The reason being that the non Muslim may undertake transactions such as dealing in riba, wine or pork. Although the contract of Mudharaba is permitted.

Habib ur-Rahman
Khilafah.com Journal
22 Jumaad Al-Thani 1424 Hijri
20 August 2003

You can E-mail the author of this article with your questions and comments at:

Habib@khilafah.com

Source: http://www.khilafah.com/home/category.php?...ID=8121&TagID=2
------------------
Rasulullah (Sallallahu Alaihi Wasallam) did indeed prophecise the Khilafah’s return when he said:

"The Prophethood will last among you for as long as Allah wills, then Allah would take it away. Then it will be (followed by) a Khilafah Rashida (rightly guided) according to the ways of the Prophethood. It will remain for as long as Allah wills, then Allah would take it away. Afterwards there will be a hereditary leadership which will remain for as long as Allah wills, then He will lift it if He wishes. Afterwards, there will be biting oppression, and it will last for as long as Allah wishes, then He will lift it if He wishes. Then there will be a Khilafah Rashida according to the ways of the Prophethood," then he kept silent.
[Musnad Imam Ahmad (v/273)]

The Company of Bodies (Al-Abdan)

noreply@blogger.com (Busico) — Sat, 06 Sep 2008 05:13:00 +0000

This article, the third in the series on the Company Structure in Islam, explains the second form of partnership in Islam – the Company of Bodies (Al-Abdan).

The Laws of Partnership (Companies) in Islam
The Company of Equal (Al-'Inan)

Definition of Sharikat al-Abdan

Al Sarkhasi (May Allah have mercy on him) says in al-Mabsut Vol II: ...when two workmen participate in the acceptance of work, like tailors or butchers and so on. It is called sharikat al-abdan, because they perform manual labour and it is (also) called sharkat al-sana’i because their capital is their skill.

Shaikh Taqiuddin an-Nabhani (May Allah have mercy on him) states in The Economic System in Islam:

This is a company in which two or more persons participate by their bodies (effort) only, without their capital. They share in that which they gain by their labour, regardless of whether this effort is intellectual or physical in nature.

Examples of al-abdan are partnerships between engineers, doctors, fishermen, porters, carpenters, car drivers and the like, if they work using their intellectual or physical skills or expertise and divide any profit amongst themselves.

Evidence for Sharikat al-Abdan

This form of company is allowed due to what Abu Dawud and al-Athram narrated from Abu 'Ubaydah from his father, 'Abdullah ibn Mas'ud, who said: "I shared with 'Ammar ibn Yasir and Sa'ad ibn Abu Waqqas in whatever we gained at the day of Badr. Sa'ad came with two captives, while 'Ammar and I brought nothing" and the Messenger of Allah (SalAllahu alaihi wasallam) consented to this to both of them. Ahmad ibn Hanbal said: "The Messenger of Allah (SalAllahu alaihi wasallam) associated them together."

Shaikh Taqiuddin an-Nabhani (May Allah have mercy on him) in the book The Economic System in Islam states that this Hadith is explicit evidence about the partnership of bodies i.e. a group of the Sahabah were permitted to fight against the enemies, and then to divide amongst themselves the booty if they won the battle.

Roles and Responsibilities of the Partners

It is not necessary that the partners be of the same craft or trade, nor that they are all craftsmen. It is allowed for people of different crafts, trades, professions and expertise to associate in any allowable (Halal) form of profit.

The Hanafi scholar Al-Kasani explained in Bada’i al Sana’I that similarity of profession was not necessary …because entitlement to compensation in this type of sharikah is based upon being lliable for the performance of work accepted). They are both liable for amal, whether the work is identical or different.

Shaikh Taqiuddin an-Nabhani (May Allah have mercy on him) states that “Their partnership is valid (Sahih) just as if they were of the same craft.”

It is also acceptable for the partners to perform a particular role in the company, so that for example one administers the company in an operational capacity, another manages the finances and the third works physically by his hands. This means that it is allowed for labourers to associate with other labourers, administrators, clerks and guards, and they can all become partners in a factory. However, it is stipulated that the work they associate together in for the purpose of making a profit be Halal. If the type of work is Haram, then to form a company undertaking such work is forbidden. Abu Yusuf related from Abu Hanifah, saying, “This sharikah is valid in each thing in which agency (wakalah) is valid and is not valid in things in which agency is not valid.

Furthermore anyone of the partners may accept work on behalf of the company. In Al Majallah al-Ahkam al-‘Adaliyyah, a ‘Uthmani Hanafi Shari’ah-Court Text, section 1386 it is mentioned that each partner has a right to accept work on behalf of the partnership. Each of the partners also has the right to collect all of their wages from their employer, and to demand the price of the goods they manufactured from a prospective purchaser.

Similarly, the one who employed them or the one who bought goods from them has the right to pay all wages or to pay the whole price of the goods to anyone of them. He will be cleared of responsibility once he has made the payment to any one of them. The Majallah in section 1387 states the customer is absolved of this liability (the claim for wages) by paying either one of them.

Even if only one of the partners worked, the income is still divided amongst all of them, because the work is guaranteed by all of them together, and through their joint responsibility for the work. The wage in other words, deserves to be shared as the responsibility is carried by all of them. The Majallah in section 1387 states that each partner is the agent of the other in the acceptance of work. For the work that is accepted by one of them, performance is binding upon him as well as his partner. ... Thus the work accepted by one of the partners may be demanded by the customer from either one he chooses. Each partner is legally bound for the performance of the work. He does not have the right to say: "This work was accepted by my partner and I have nothing to do with it." (Similarly mentioned in Al-Marghinani, al-Hidayah vol 3, Ibn Numjaym al Bahr al Raiq vol 5).

Right to Disposal

Shaikh Taqiuddin an-Nabhani (May Allah have mercy on him) mentions that “None of them (the partners) is allowed to deputise on his behalf a person as partner in the company or to employ a person to do the work on his behalf as a partner.” The partner himself must be the one who handles the work directly as the contract stipulates this in this type of company. The disposal of each partner would be on behalf of the company, and every one of them is bound by the work accepted by his partner.

Al Khirashi, a Maliki Scholar, in Sharh al-Mukhtasar Vol 6 states: “if one of the parties accepts something for working on it, his partner is equally liable for performing work on it, however there is no requirement for joint acceptance of work. If the thing accepted is destroyed, the liability is shared by both parties..”

Each partner is allowed to hire employees and such hiring would be by the company and for the company, even if only one of the partners handled the employment. The employee is employed by the company and is not an individual partner's personal assistant, deputy, agent or employee.

Distribution of Profit

The profit in the company of bodies is distributed according to the agreement of the partners, whether equally or preferentially. The Majallah Section 1388 states that the partners divide the profits among them in accordance with the ratios stipulated, whether equal or unequal.

Shaikh Taqiuddin an-Nabhani (May Allah have mercy on him) further explains “For it is that which produced the profit and since it is allowed for the partners to differ in work, it is allowed that they differ in profit which is derived from the work.“

In the next article the Company of Body and Capital (Mudharaba) will be explained.

Habib ur-Rahman
Khilafah.com Journal
03 Jumaad Al-Thani 1424 Hijri
01 August 2003

Click below to E-mail the author of this article with your questions and comments:

habib@khilafah.com
------------------

Rasulullah (Sallallahu Alaihi Wasallam) did indeed prophecise the Khilafah’s return when he said:

"The Prophethood will last among you for as long as Allah wills, then Allah would take it away. Then it will be (followed by) a Khilafah Rashida (rightly guided) according to the ways of the Prophethood. It will remain for as long as Allah wills, then Allah would take it away. Afterwards there will be a hereditary leadership which will remain for as long as Allah wills, then He will lift it if He wishes. Afterwards, there will be biting oppression, and it will last for as long as Allah wishes, then He will lift it if He wishes. Then there will be a Khilafah Rashida according to the ways of the Prophethood," then he kept silent.

[Musnad Imam Ahmad (v/273)]

The Company of Equal (Al-Inan) is one of the most common forms of partnerships in Islam.

noreply@blogger.com (Busico) — Sat, 06 Sep 2008 05:10:00 +0000

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيمِِ

The Company of Equal (Al-Inan) is one of the most common forms of partnerships in Islam.

The Meaning of Inan
Al Sarkhasi (May Allah have mercy on him) says in his Mabsut Vol 2:
….and it is said that it (Inan) is derived from the reins of a riding animal.

Ibn Qudammah (May Allah have mercy on him) in al-Mughni Vol 5 state:
The meaning is derived from the example of a man driving two horses when he gives equal rein to both.

Shaikh Taqiuddin an-Nabhani (May Allah have mercy on him) in his book The Economic System in Islam:
'Inan means two riders in a race if their horses are equal and their race is equal, so their bridles ('Inan) are equal.

The Meaning of the Company of Equal (Al-'Inan)
Ibn Qudammah in al-Mughni Vol 5 state: The meaning of (inan) partnership is that two persons should participate with their wealth and work on the condition that the generated profits will be shared by them.

Shaikh Taqiuddin an-Nabhani in his book The Economic System in Islam stated
that this is two bodies associating with their properties. Namely, two persons associating with their properties and share the work dividing the profit between them.

It is therefore called a company of 'Inan because the partners are equal in their right of disposal.

In this type of company, the capital is represented by money, because money represents the value of the properties and the sales. It is not allowed to enter into partnership over merchandise unless it was evaluated in monetary terms at the time of contract. The value of the merchandise at the time of the evaluation would represent the capital.

An example of the Company of Inan is where person A makes an offer to person B to establish a health and fitness centre by each providing £10,000 in capital and for both to participate in the day to day management and operation of the centre. Person B accepts. They in turn make an offer to another 3 people, who all accept as partners, to also provide capital and share in the work.

Proofs
The evidence for this type of partnership is that it was practised at the time of the Prophet and the Sahabah and allowed.

Al-Kasani (May Allah have mercy on him) states in Badai al Sana’I Vol 7: …the Inan contract is valid by consensus of the jurists of the provinces and the practice of the people (i.e. the Sahabah). …. He (the Prophet [salAllahu alaihi wasallam]) approved their actions insofar as he did not proscribe them or deny it to them, and taqrir (tacit approval) is one form of the Sunnah.

Shaikh Taqiuddin an-Nabhani in his book The Economic System in Islam stated: This form of company is allowed by the Sunnah (of the Prophet) and Ijma'a of the Sahabah (consensus of the Companions). People have entered into this form of partnership since the time of the Prophet (salAllahu alaihi wasallam) and the Sahabah.

Conditions relating to the Capital of the Company
It is a condition that the capital is defined and available for disposal. The partnership cannot be formed over an unknown capital, absent property or a debt.

Shaikh Taqiuddin an-Nabhani in his book The Economic System in Islam states that this is because …the capital has to be referred to at the time of division and because the debt cannot be disposed with immediately and this is the aim of the company.

Al-Kasani states in Badai al Sana’I Vol 7 another reason for why the Capital must be defined and present: Among these conditions is the availability of the wealth in the form of an ayn (present thing). It should neither be a debt (dayn) or an absent wealth. If it is so, the partnership is not permitted as Inan or as mufawadah. The reason is that the purpose of the partnership is profit and this is achievable through transactions in the capital. Such transactions are not possible in a dayn or in wealth that is absent.

It is a condition that the capital of the company is one property of all the partners such that neither partner can differentiate his property from the others.

It is not necessary that the capital should be equal in value. Ibn Qudammah in al-Mughni Vol 5 mentioned: Equality in the amount of wealth is not stipulated, and Al-Marghinani (May Allah have mercy on him) says in al-Hidayah Vol 3: Because equality in wealth is not a condition for it as the word (inan) does not require this.

It is also not necessary that the capital should be of the same kind. However, they must be evaluated by one measure so that both shares become one property. It is, therefore, valid for two people to become partners with, for example, Egyptian Pounds and Pakistani Rupees, but these should be evaluated by one value (agreed between the partners) so that there is no difference between them and they become one of the same kind.

It is also conditional that each of the partners has authority over the capital. The Inan (equal) company is based on delegation and trust. The partners trust each other through handing over properties, and by delegating permission to each other to dispose of property. Once the company has been formed it becomes one entity.

Conditions relating to the work and responsibility of the partners
It is obligatory for the partners to start work themselves as the company is established upon their bodies. As such a partner is not allowed to delegate another person to work for the company personally on his behalf. It is also permitted for partners to assign themselves roles such as Operations Director or Head of Finance etc. However, the company as a whole can employ whom it wants and uses the body of whom it likes as its employee to work for the company but not a partner.

Any of the partners can trade in whatever way he feels is beneficial to the company. Each of the partners is also allowed to collect the price and make purchases, to take legal action for and request payment of debt, to pay and accept payment, and to return faulty goods. Each is allowed to hire and lease the capital of the company, as these are benefits to the company and this is similar to selling and buying.

Conditions relating to Profit and Loss
It is not conditional that the partners have equal shares, but it is necessary that they are equal in the right of disposal. With regard to the capital, it is permitted that the partners have different or equal shares, while the profit is divided according to what they agree between themselves. According to what 'Abdurrazzaq narrated in Al-Jami',

'Ali (May Allah be pleased with him) said: 'The profit is according to what they stipulated.'

And al-Sarkhasi mentions in his Mabsut Vol II: …the animal has two reins, one longer than the other and the other one shorter. Thus, it is permitted in this partnership to have equality in capital and profit or inequality. We therefore call it Inan.

With regard to losses in the 'Inan company, it is according to the capital share only. If their shares are of equal value then the loss between them is divided equally, and if the capital is divided in thirds then the loss is divided in thirds. If they agreed on other than that, no value will be given to their stipulations. This is the rule on loss i.e. the loss is based upon the ratio of their capital shares. This is because a company is a form of representation (Wakala). The rule is that the deputy is not held responsible for the loss but the loss is carried upon the property of the deputising person.

Abdurrazzaq narrated in Al-Jami' from 'Ali (May Allah be pleased with him): "The loss (Al-Wadhi'a) is upon the capital and the profit is according to what they stipulated."

In the next article the Company of Abdan (bodies) will be examined Insha 'Allah.

Habib ur-Rahman
Khilafah.com Journal
10 Jumaad al-Oola 1424 Hijri
9 July 2003
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Rasulullah (Sallallahu Alaihi Wasallam) did indeed prophecise the Khilafah’s return when he said:

"The Prophethood will last among you for as long as Allah wills, then Allah would take it away. Then it will be (followed by) a Khilafah Rashida (rightly guided) according to the ways of the Prophethood. It will remain for as long as Allah wills, then Allah would take it away. Afterwards there will be a hereditary leadership which will remain for as long as Allah wills, then He will lift it if He wishes. Afterwards, there will be biting oppression, and it will last for as long as Allah wishes, then He will lift it if He wishes. Then there will be a Khilafah Rashida according to the ways of the Prophethood," then he kept silent.

[Musnad Imam Ahmad (v/273)]

http://www.paktribune.com/pforums/posts.php?t=353&start=1

Business in Islam

noreply@blogger.com (Busico) — Sat, 06 Sep 2008 05:06:00 +0000

The Laws of Partnership (Companies) in Islam

The Islamic laws of Partnership were discussed widely by the past scholars of Islam and the books of fiqh bulged with their detail. However, with the loss of the Khilafah many of the Islamic thoughts and practices were also forgotten and the Islamic world came to be dominated firstly by the socialist and then by capitalist solutions. Until some even felt that Islam was incapable of addressing and solving contemporary issues.

One of the areas that were severely impacted by this decline was in the understanding and in the practice of business organisation. It is with this in mind that this series of articles demonstrates the unique Islamic thoughts with regards to business structures and organization so that once again Islam is understood beyond the ritual conducts and not studied as a thought only but applied in practice.

Linguistic Meaning
The word for partnership is sharika and some jurists use the word shirkah.

Ibn al-Humam in Fath al-Qadir describes sharika as meaning the mixing of the shares so that one of them cannot be distinguished from another.

Shaikh Taqiuddin an-Nabhani states in Nidaam ul Iqtisaad fil Islam (Economic System in Islam) that Ash-Sharika linguistically means mixing two or more shares together such that neither can be distinguished from the other.

Shariah Meaning
Differences in the types of sharikah between the Mujtihideen has meant that there has been difficulty in producing a general shariah definition.

The Maliki scholar Al-Khayyat quotes a definition from al-Dardir in his al-Sharikat that a partnership is “a contract between two or more owners of wealth for joint trade or it is a contract for shared labour and shared profits.”

Ibn Qudamah the Hanbali scholar in al-Mughni defined it as “participation of two or more persons in transactions.

However perhaps the most comprehensive shariah definition is provided by Sheikh Taqiuddin an-Nabhani in Nidaam ul Iqtisaad where the company in Shar'a is defined as a contract between two or more persons, in which they agree to perform financial work with the intention of making profit.

Daleel (Evidence)
Partnership is allowed in Islam because when Muhammad was sent as a Messenger people were dealing with companies and he (salAllahu alaihi wasallam) did not forbid this. Al Bukhari narrated that Abu Al-Minhal said: "I and my partner bought something in cash and credit. Al-Bara ibn 'Azib came to us so we asked him about this. He said: 'My partner, Zaid ibn Al-Arqam, and I did the same and we asked the Prophet (salAllahu alaihi wasallam) about this.' He (salAllahu alaihi wasallam) said: 'That which is in cash you take, and that which is in credit you return it back."' Ad-Daraqutni narrated from Abu Hurairah that the Prophet (salAllahu alaihi wasallam) said: "Allah the Supreme said 'I am the third of the two partners as long as one of them does not betray his companion. If he betrayed, I would withdraw from them."

Common Conditions
According to the majority of the imams the following form the common elements of the contract of sharika.

Two parties and an offer and acceptance between them
The contract of the company requires the existence of both offer (ijab) and acceptance (qabul), as is the case with all Islamic contracts. An offer occurs when one party says to the other: 'I entered into partnership with you in such and such' and the other party replies by saying, 'I accepted.' These actual words are not necessary but the meaning is.

Subject matter
There must occur in the offer and acceptance something that indicates that one of the parties addressed the other orally or in writing on the matter of partnership over something, and the other accepted. Therefore, an agreement on partnership only does not represent a contract. An agreement to pay money or property for partnership is also not considered a contract as well. Rather, the contract must include the concept of partnership in something.

Right of Disposal
The condition of validity of the partnership contract in Islam requires that the contracted matter be a right of disposal, suitable for representation (Wakala) and what is gained by the disposal is shared between the two partners. It follows that it is invalid to form a company with a person who is prevented from disposal of property e.g. a minor, insane etc.

Dissolving the Company
Dissolution of the company by one of the two partners is valid because it is a permissible contract allowed by Shar'a. It becomes void by the following:

the death of any partner
a partner becoming insane
if a partner was declared incompetent and put under guardianship, if it is a company consisting of two persons.
If one of the partners dies leaving behind a mature inheritor, he has the option to continue with the company and his partner has to permit him to dispose (Tassaruf) in the company. However, he also has the option to demand dissolution of the company. If one of the partners demands dissolution of the company then the other partner must accept his request.

If they were more than two partners, and one of them demanded the dissolution of the company and the rest were happy to continue with the company, then the existing company would be dissolved and renewed between the remaining partners.

Generally if one partner demanded division and the other demanded sale of the company, the demand of division is accepted rather than that of sale. Except in the Mudharaba company (discussed in a future article), where if the worker (Mudharib) demanded the sale of the company and the other partner demanded division, then the demand of the worker will be accepted because his right is in the profit which will not be known except when selling.

Capitalist Companies
The necessity of understanding these Islamic rules has acquired all the more importance in light of the current dominance of capitalist company structures across the world, including the Islamic lands, many of which are invalid and prohibited for Muslims to participate in.

Although it is not the subject matter of this series of articles, a cursory look at one of the most prominent capitalist company structure, the share company (the cornerstone of the modern capitalist economy), serves to highlight its invalidity with the shariah.

No Offer or Acceptance
In the share stock company no agreement occurs between two or more persons. Rather it is a commitment made by an individual will from one side.

Absence of Partnership in Something – No Subject Matter
No concept of partnership in something as no agreement has occurred to carry out a work on something; instead one person commits himself to offer property only.

Invalid Right of Disposal
The share stock company is viewed as a corporate personality which has the right of disposal. In the share stock company those who carry out the actions in the company are the board of directors who are deputies for the shareholders, i.e. for the property partners. However the partner is not allowed in Shar'a, to deputise somebody with the right of disposal and action in the company on his behalf whether he was a property partner or a body partner. The contract of the company is concluded on him personally, so he has to act by himself. So entrusting the disposal to a corporate personality is not allowed.

No Right of Dissolution
The share stock company is permanent, and it continues to function despite the death or the incompetence of any of the partners.

Thus the share company is void and it is prohibited for Muslims to participate in them as a partner.

A detailed study of the share company and other void capitalist company structures such as the unlimited liability company and the co-operative societies can be found in Nidaam ul Iqtisaad fil Islam (Economic System in Islam).

Types of Company Partnership
Ibn Qudamah states in al-Mughni (Vol 5) that partnership contracts are of five types; Al-'Inan, Al-Abdan, Al-Mudharaba, Al-Wujooh and Al-Mufawadha.

Shaikh Taqiuddin an-Nabhani states in Nidaam ul Iqtisaad fil Islam “From the examination of partnership contracts in Islam, and the divine rules (Ahkam Shar'iyah) related to them it can be concluded that there are five types of company in Islam. These are Al-'Inan (equal), Al-Abdan (bodies), Al-Mudharaba (two or more), Al-Wujooh (faces) and Al-Mufawadha (negotiation).”

The next article will discuss the Company of Equal (Al-'Inan) Insha 'Allah.
Habib ur-Rahman
Khilafah.com Journal
9 Jumaad al-Oola 1424 Hijri
8 July 2003

To E-mail the author of this article with your questions and comments click below:

Habib@khilafah.com
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Islam, Commerce, and Business Ethics

noreply@blogger.com (Busico) — Sat, 06 Sep 2008 04:55:00 +0000

Imad-ad-Dean Ahmad
Minaret of Freedom Institute

Plenary address at the Loyola Institute for Ethics and Spirituality in Business

Islam is the only major world religion founded by a businessman, although, in a sense, Judaism, Christianity and Islam all trace their origins to another businessman, Abraham, the ancestor of Moses, Jesus and Muhammad, peace be upon them all. Islam has never had any hostility to the profession of the merchant. In the traditions called hadîth (sayings of the Prophet and his companions, distinct from God’s direct revelation to Muhammad, called the Qur’ân), the Prophet is reported to have said, “The truthful and trusty merchant is associated with the prophets, the upright, and the martyrs.” I shall begin with an introduction to the notion of spirituality in Islam using a story of the creation of Adam, a story familiar from the Bible, although the Qur’anic version differs in certain significant details. I shall then turn to the Islamic perspective on commerce, its value, the importance of property rights and contract, the laws that govern commerce, and the place of commerce in man’s spiritual life. Finally I shall offer an observation as to what it will take to sell the concept of free markets to the modern Muslim world and the Third World in general.

Theologically, man requires property in order to fulfill his function as the khalîfah, God’s vicegerent on earth. The word khalîfah is used in Muslim history to refer to the temporal leader of the Muslim community (the “caliph”), but in the Qur’an it refers to every individual man and woman as God’s agent, or steward, on earth. Legally, property has been sanctified in Islamic law. Morally, theft, fraud, and injustice of all kinds have been prohibited by the shari’ah, the Islamic law. Practically speaking, the objective of falâh, prosperity, cannot be achieved without respect for economic realities.

The historical success of Islam in providing the framework for a thriving world economy from the seventh to the fifteenth centuries is a matter of historical record, but it does not answer the question of whether Islam in particular, or religion and spirituality in general, are helpful to or necessary for the ethical conduct of business in the modern world. Modern institutions have allowed for corporate activity on an unprecedented scale, impossible in the era before the development of the modern corporation. I shall conclude by examining the advantages and disadvantages of those institutions, the moral challenges they pose and my opinions as to how religion and spirituality are necessary to deal with them.

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Internet Revolutionizes Business Relation

noreply@blogger.com (Busico) — Sat, 06 Sep 2008 04:03:00 +0000

By Dr. Jamal Barmi
Islam Online, Washington

The "Internet economy" is now a reality. The rapid growth in Net-based buying, selling and customer service operations has radically altered traditional buyer-seller relationships. Consumers now shop the world, enjoying unprecedented opportunities for price and product comparison, often completely bypassing the local storefront retailers who once defined their shopping horizons.

But despite the grand size of these developments, they pale in comparison to the even larger impact the Internet has had on business-to-business commercial operations. Many enterprises are embracing the "Internet Marketplace" model because they sense the potential for streamlining and automating product information transfer, price negotiations, order entry, shipping data and billing and collection cycles.

The "Internet Marketplace" model calls for the aggregation of catalogs and other buy/sell information at a central online location, with open access to all enrolled users via the Internet. Many enterprises that are embracing this new marketplace model include Global 2000 companies, large distributors, franchises, trade associations and third-party service providers.

In a February, 1999 report, Forester Research estimated that the value of Internet sales will be $1.3 trillion by 2003, out of which $800 billion will stem directly from business-to-business interaction.

Recent Information Technology Trends

e-engineering internal business processes, using client/server technologies

Integrated ERP systems to streamline back-office operations

Y2K activities

The Internet economy

Today's challenge is to understand the competitive changes that will occur within the Internet economy. Businesses must understand how buyers and sellers will come together in new ways via "Internet marketplaces" and exchanges. Many e-commerce enterprises (both buyers and sellers) have experimented with a variety of new business-to-business commerce models such as:

Online supplier catalogs

Buyer-hosted e-procurement front-ends

Push technologies

HTML parsing tools

As a result, a growing demand for new standards to facilitate the exchange of information, catalog content and transactions between buyers and sellers has been building. The underlying goal of the standards was to bring buyers and sellers together with an automated flow of information and transactions, while still supporting individual business and contractual relationships between trading partners.

Sell-side and buy-side models have fallen short of buyers and sellers together. These models did not take into consideration how to bring buyers and sellers together. This view of the commerce process has usually resulted in one participant (the buyer or seller) inappropriately dictating proprietary solutions or standards to the other. As a result, this strategy did not scale. Perhaps the best way to understand the need for "Internet Marketplaces" is to examine the latest developments in Internet e-commerce solutions, namely, sell-side, buyer side, and "Internet Exchange" models.

Sell-Side Models

Suppliers created sell-side solutions to lower the cost of sales by automating the order entry and fulfillment process. These solutions aimed to create an online "storefront" which stayed open 24 hours a day, offered the latest inventory and enabled self-service ordering and tracking. In other words, suppliers tried to capitalize on the Internet's potential by bringing their existing business relationships and processes online.

Unfortunately, suppliers soon discovered that most corporate procurement organizations were unwilling to permit shopping across different supplier websites without regard to vendor relationships, pricing or pre-negotiated company contracts. On the other hand, customized supplier sites often required customers to learn unique passwords and procedures and other proprietary methods. However, corporate buyers recognized the power of this model and began to explore new ways of applying similar techniques, utilizing their corporate Intranets.

Buy-Side Models

By focusing on cutting costs within a single enterprise, buy-side e-procurement applications operated as a browser-based front-end for back-office ERP and legacy purchasing systems. They allowed corporate procurement organizations to combine multiple supplier catalogs into a "universal" enterprise catalog and to deploy self-service requisitioning and order processing to the user desktop. Unlike supplier-hosted catalogs, these solutions allowed companies to deploy their proprietary processes and procedures while aggregating enterprise-wide expenditures across a consistent supplier and product portfolio.

The success of early buy-side procurement adopters demonstrated the dramatic cost savings that can be realized with online solutions. By using a buy-side procurement application, Raytheon, for example, has reduced their cost per purchase order from more than $100 to less than $3. Organizations using buy-side e-procurement applications reduced their processing costs by an average of 70% per order. However, implementing e-procurement solutions requires a detailed understanding of many new technologies, such as network application architectures, catalog content management strategies, ERP integration methods, XML, CORBA, DCOM, dynamic data interchange standards and other technologies.

Unfortunately, the resources and expertise to implement these systems are not within the reach of many medium-sized and small businesses. So, while the implementation of stand-alone buy-side solutions may work for today's largest and most technically sophisticated companies, it does not meet the needs of the other 95% of buyers along the commerce chain. These companies cannot afford to aggregate catalog content, to link to individual suppliers or to develop comprehensive Internet commerce applications themselves. Instead, they need a third-party "hosted" marketplace that brings together their suppliers and other similar buyers into an organized trading community.

Internet Marketplace Models

Internet Marketplaces" and exchanges offer the next generation of Internet commerce solutions. Unlike single-sided solutions, they are specifically designed to enable multi-buyer/multi-seller interaction and collaboration. They provide a common trading hub, where multiple buyers and sellers can come together and conduct commerce without compromising individual processes and relationships among the participants. Marketplaces can be created or "hosted" at any point along the commerce chain. By 2001, 70% of distributors who operate online are expected get more than 80% of their sales through online marketplaces.

It is clear that the formation of these shared marketplaces is necessary for Internet commerce to reach its full potential. A useful analogy can be drawn between Internet commerce and other, more mature services, such as electrical power and water utilities. There was a time when, if you wanted water, you drilled your own well. Water eventually moved to a shared network model, where a number of providers tapped a major water supply and delivered it to end users through a common network and delivery mechanism. A similar model is developing within electronic commerce, where many different distributors, buying groups and new service providers are developing shared marketplaces, or portals, that deliver online commerce services to customers through the Internet and browser.

The creation of "Internet marketplaces" enables innovative new methods of dynamic exchange. Many sell-side models are little more than web front-ends for traditional business applications and have done little to advance e-commerce to the new Internet paradigm. On the other hand, Internet marketplaces create entirely new methods of commerce, such as online sourcing, auctions and negotiations that enable sellers and buyers to exchange information and knowledge in much easier and better ways

Jamal Barmil is the vice president of DACON, Inc., a software consulting company in McLean, VA. He has over 15 years of experience in Information Technology and over seven years of experience managing and directing information system projects. He can be reached at Jbarmil@prodigy.net.

Islam and Business

noreply@blogger.com (Busico) — Sat, 06 Sep 2008 03:21:00 +0000

Trade and commerce have always been a part of Islam. From pre-Islamic days, the Holy City of Mecca has been the center of commercial activities. It was indeed the annual trading center of Mecca that provided Prophet Mohammad the forum for preaching Islam.
The early Muslims were not only engaged in trade but they went to distant lands in connection with business. Islam in fact reached East and West Africa, East Asia through the business people.
Islam encourages work in general, and trade and commerce in particular, Prophet Mohammad was himself engaged in this profession before he became a prophet. He was a successful businessman. Known for integrity, he bore the honorific title, �the Trustworthy�, The Quran states:
"God has made business lawful for you"
In addition, the Qur'an includes rules not only for manners and hygiene, marriage and divorce, but it also lays down detailed rules for commerce and politics, interest and debts, contracts and wills, and industry and finance. Islam has permitted and in fact encouraged business. Islam lays out the basic principles of our economic behavior as consumers, producers and owners of wealth.
The Islamic principle in business is based on individual enterprise and correspondingly individual�s reward. It is basically based on benefiting the humanity while maintaining God�s orders.
In business relationships Islam strictly forbids any discrimination between people based on their religion, sex, or gender.
There is no basic conflict between good business practice and profit making in Islam. Islam looks at profit as secondary way to measure efficiency. Business Ethics in Islam
1. Trust: Trust of God's creation and all that is in it. God has created and perfected the whole universe then Man is set over it all with delegated. So as Muslims we realize that we are just trustee for God�s universe and we truly do not owe anything in this life. That kind of belief along with your knowledge that God sees all what you do, will make you work under constant surveillance, and keeps your performance at its best while following God�s defined conduct.
(Quran 45-13): And He has subjected to you, as from Him, all that is in the heavens and on earth: behold, in that are Signs indeed for those who reflect.
(Quran 6:164): It is He who hath made you (His) agents, inheritors of the earth: He hath raised you in ranks, some above others: that He may try you in the gifts He hath given you: for thy Lord is quick in punishment: yet He is indeed Oft-Forgiving, Most Merciful.
2. Justice and Honesty: Justice can be defined as just conduct, fairness exercise of authority in maintenance of right and fair dealing between each other regardless of faith is strictly laid down in Islam. Honesty incorporates the concepts of truthfulness and reliability and covers all aspects of relationships in human life thought, word and action. It is more than just accuracy; it is an attitude with integrity.
(Quran 4:135): O ye who believe! Stand out firmly for justice, as witnesses to Allah, even as against yourselves, or your parents, or your kin, and whether it be (against) rich or poor: for Allah can best protect both. Follow not the lusts (of your hearts), lest ye swerve, and if ye distort (justice) or decline to do justice, verily Allah is well-acquainted with all that ye do.
(Quran 6:115): Perfected is the Word of thy Lord in truth and justice. There is naught that can change His words. He is the Hearer, the Knower.
(Quran 11:85): O my people! Give full measure and full weight in justice, and wrong not people in respect of their goods
�O you who have attained to faith! Do not devour one another�s possessions wrongfully � not even by way of trade based on mutual agreement � and do not destroy one another: for behold, God is indeed a dispenser of grace unto thee!
Oh ye who believe! Eat not up each other's property by unfair and dishonest means." (4:29)
3. Mutual Respect: The third principle is mutual respect and consideration for others is also inherent in the moral teachings of Islam.
The application of this has come to mean that self interest only has a place in the community in as much as it takes into account the interests of others. So a person or organization can not under self benefit measures takes an action or start a business that will harm the community or environment more than providing good to it. The prophet (PBUH) said: "You will not attain righteousness, unless you give of that which you love�. And said "God loves kindness when you deal with any matter" And also said: "You will not enter Paradise until you have faith and you will not have faith until you love one another". What is forbidden in business in Islam?

Islam has not permitted producing, selling and purchasing of goods, which are prohibited in Islamic law. Alcohol, Drugs.. The Prophet of Islam has said: "When God prohibits a thing He prohibits (giving and receiving) the price of it as well."

Islam has also prohibited any kind of transaction involving uncertainty, as this could lead to quarrel or litigation. The Prophet of Islam has forbidden transaction involving unspecified quantity, acceptance of money for fish in the river or bird in the air as there is element of uncertainty. Similarly the Prophet of Islam has prohibited sale of fruit till they are ripened. However; if the element of uncertainty is very small, the transactions are permissible.

Islam condemns hoarding to make high profit at the cost of public interest (when it is needed or so it will become needed). Islam, however; allows normal trade - buying and selling of goods again and again at a reasonable profit.

Islam prohibits fraud in business dealings. The Prophet has said: "Sell the good and bad separately. He who deceives is not of us" The sin of fraud is greater if the seller supports it by swearing falsely. The Prophet has said, "Swearing produces ready sale but blots out blessing".

Islam prohibits buying or selling what�s legal if we know that it will be used for illegal use: weapons, abortion drugs, drugs for meth making, and so on.

INTEREST: Muslims are not allowed to pay or receive interest. This is a shared value in all religions. The Quran is explicit about it and says, "God- has permitted for you trade and prohibited interest" (2 : 275). The Bible says: �and lend, never despairing; and your reward shall be great, and ye shall be sons of the Most High� Luke 6:35.

Depositors in an Islamic bank would be treated like shareholders, would receive dividends when the bank makes a profit, and would lose capital when it suffers a loss.
The prohibition or fixed interest flows from Islam's concern for social justice Interest is said to reinforce a tendency for wealth to accumulate in a few hands
So how would you by buy a house for example? A new trend has recently started that work as follows: An Islamic financing company buys the house. The house then is leased back to you for a fixed period of time. You pay the finance group the rent value plus an additional amount for the house purchase. The value or the lease home will be reassessed every year, and the rent will be adjusted accordingly. In Closing
To close let me reassure that it is the responsibility of every Muslim to be ethical in their daily business practices and to act responsibly toward the community in which it serves. To review its business practices and remove from its organization any unlawful activities and devote themselves to productive and lawful activities that benefit mankind.
It is everyone�s responsibility to take a long and serious look at their organization and implement policies and procedures that are conducive.
As a general guide to Muslims in business we should adopt the following overriding principals:
� Love God and his commands more than your trade or business
� Be honest and truthful
� Keep one�s word
� Be humble in how you conduct your life
� Do not deal in fraud
� Do not bribe
� Deal justly

Abdoulrahman Kattih
The Islamic Education And Services Institute

7 Tips for Muslim Businesses

noreply@blogger.com (Busico) — Sat, 06 Sep 2008 03:06:00 +0000

How to Increase Profits and Help The Muslim Economy Grow

“I live in a suburban where there are 3 "Halal" meat stores within a 5 mile area, and another which is about 30 minutes away. I am an "American" Muslimah. In the three stores owned by Pakistani/Indian businessmen, the treatment I receive is terrible. In addition, the stores are filthy and no health code is followed. Blood from the meat is spread from meat counter to checkout counter, hands to money and pens, etc. In the store that is further away, the owner has argued and almost had fist fights with customers, and will not disclose his meat source. I have gone to great lengths to continue to buy Halal meat, but I feel that doing business with these people is not something I can continue to do." (Comment in the Halal and Healthy forum of the Sound Vision website, July 22, 1999)

Muslim consumers are often criticized for not doing enough to support Muslim businesses, whether it's paying the extra dollar (or two or three or four) to buy products, or to drive the extra mile (or two or three or four) to get to the store.

But what is rarely discussed in the North American context is what obligation Muslim businesses, especially Halal grocery stores, have to the Muslim community.

The above-mentioned complaint is not a reflection of all Halal grocery stores. However, the problems outlined in it cannot be ignored.

If Muslim businesses want the support of Muslim consumers, they will have to do more to accommodate them, provide better service and prices.

New York-based Muslim social scientist Ilyas Bayunus conducted a study in which he found that Chicago has a Muslim population of about 300,000. The state of Illinois has a population of 400,000.

This indicates the tremendous buying power of Muslims in this city and this state.

In Chicago alone, there are a minimum of 60 retail Halal meat shops that are owned and operated by Muslims.

Currently, the Halal meat business makes close to $5 million a year. But the potential profit could be as high as $60 to $80 million. The market hasn't developed for a number of reasons, some of them can be attributed to Muslim consumers, others to Muslim businesses.

Below are some tips on how you can improve service and profits of your Halal business. This can be applied to all business, not just the meat business:

1. MAKE PROFIT THE SECONDARY AIM

The first goal of a Muslim business should not be cashing in on a Muslim market. It should be pleasing Allah and establishing Halal as a way of life.

Seeking profit is not a bad aim, but it should be secondary.

By making Allah the goal, and implementing Islamic rules of honesty, truthfulness, and good behavior with customers, Insha Allah, any Muslim business is bound to boom.

2. BE TRUTHFUL AND HONEST

The Prophet has said the the honest and truthful businessman will be in Jannah amongst the Prophets the Truthful and the martyrs. Honesty and truthfulness are essential in this business. And when it comes to Muslim businesses, it means building a relationship of trust with customers, which cannot be done with lies and deceit.

3. BE OPEN TO SCRUTINY AND CRITICISM

While this may be a bitter pill to swallow, being ready to have your product or business scrutinized for cleanliness or the “Halalness” of products indicates a willingness to work with the consumer. This serves to build trust.

For those business people who may feel hesitant or downright angry with a Muslim consumer for even asking about the acceptability of a given product in their store, remember that this is the right of the consumer.

Remember, ultimately, we are all responsible to Allah. If a business is cheating Muslims, Allah will eventually expose those involved.

As well, a Halal business is not just one person's profit-making machine. It is also an institution of the Muslim community. Therefore, it must be ensured that it meets not just state and federal standards, but most importantly, the Quran and Sunnah's standards.

4.BE CLEAN!

This is especially important for Halal grocery stores where the presence of animal blood is expected. Not being careful of this means not only lost customers, but also possible sicknesses from the germs in the blood.

The Prophet (peace and blessings be upon him) said: "Cleanliness invites towards faith (Iman) and faith leads its possessor to paradise." (Tabarani)

This cleanliness, by the way, does not just apply to those areas of a store a customer will see. It includes equipment and storage areas as well.

5. AIM FOR A HIGHER GOAL

Don't just aim for one successful Halal grocery shop in your chosen neighborhood. Think big. Improve the inventory of your store, the types of items in it, and strive to find ways to improve service and profit margins.

As well, look into the possibility of pooling resources within the Muslim community or with other shareholders to expand the business. Doing this will also reduce overhead costs and in the long run, the price of products for your consumers.

6. WORK WITH OTHERS IN YOUR MARKET

Yes. This can be very difficult. Finger pointing, accusations and nasty rivalry often characterize Muslim businesses aiming to market the same products. But this is not the way a Muslim economy should work.

Brotherhood in the Ummah cannot be forgotten. Consider forming an association of Muslim meat retailers or distributors that can sit down together share experience, and learn to cooperate. This cooperation could, in the long run, benefit the Muslim consumer, and in turn the Muslim businesses themselves.

One example of where cooperation can take place in the Halal meat industry is by having all grocers or butchers slaughtering the animals in one place, Instead of doing it the way it's been done since the beginning: every individual or couple of retailers slaughtering their own animals.

By slaughtering in one place, costs are reduced, and in turn, the Muslim consumer pays less for the same product.

7. DO NOT SELL THE HARAM

While there are more “Muslim” businesses sprouting up, not everything they sell is Islamic.

It is not difficult to find Muslim owned businesses selling pork, alcohol, pornographic magazines, and renting these kinds of movies on the one hand, while selling Halal meat on the other.

Of a less offensive nature, perhaps, are those businesses which sell Halal products but rent or sell cultural (especially Indo-Pakistani) movies. While these movies may seem harmless in comparison to those of the pornographic variety, what must be remembered is that when Muslim parents and elders indulge in watching such cultural films, their children can very easily find an excuse to watch their own “cultural” films (i.e. American-Hollywood).

This requires efforts on the part of Muslim business owners to wipe out the Haram and ensure the Halal in their businesses.

A telling anecdote about Haram business practices was provided by Imam Siraj Wahhaj of Brooklyn, New York during a Khutbah.

He recounted the case of a Muslim who owned a shop that sold newspapers and magazines-including pornographic magazines. The Imam tried to convince the Muslim brother to stop selling these publications. At one point he agreed, and removed them from his shelves.

But after a while, Imam Wahhaj noticed they were back on the shelves. When he asked the brother about their reappearance, he said he was losing money.

Shortly after that, the entire store was destroyed in a fire.
by : www.soundvision.com/Info/halalhealthy/7tipmusbus.asp

Just Duit (Indonesian Version) by Johannes Lim

noreply@blogger.com (Busico) — Thu, 21 Aug 2008 07:44:00 +0000

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Indonesian Business Law

noreply@blogger.com (Busico) — Thu, 21 Aug 2008 07:23:00 +0000

By Dr. Benny S Tabalujan

The Indonesian legal system is complex because it is a confluence of three distinct legal system.

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Doing Business in Indonesia From a Western perspective

noreply@blogger.com (Busico) — Thu, 21 Aug 2008 07:19:00 +0000

Gary Dean

[Note: This is a modified version of an report commissioned by the East Asia Analytical Unit of the Australian Department of Foreign Affairs and Trade in July 2000, as part of a book entitled Indonesia: Facing the Challenge published in December, 2000. Views contained within this report are entirely my own and do not necessarily reflect views of EAAU, DFAT or any of its officers, past or present.]

Indonesia is not the easiest place in the world in which to do business. The 'World Competitiveness Scoreboard' currently ranks Indonesia at 45, only two places ahead of Russia (47), and in stark contrast to countries such as Australia (13), Singapore (2) and the US (1). Clearly, in terms of the measures used by the producers of this scoreboard, Indonesia at the moment is found severely wanting, with its potent brew of traditional cultures, bureaucracy, legal uncertainty and social instability combining to give it the appearance of being a rather hostile place for trade and business. Indonesia is currently undergoing a radical transition towards becoming a more modern and efficient economy, and the road ahead remains uncertain.

Nonetheless, given a proper understanding of cultural, social and legal-regulatory environments, business and investment in most parts of Indonesia is relatively safe and profitable. Many promising changes are underway in Indonesia - notwithstanding the pain being experienced by many sections of Indonesian society - and there is good reason to be hopeful Indonesia shall emerge from its present trial-by-fire to become both an attractive investment destination, and a profitable market for Western products.

This essay seeks to give an overview of those elements that are important when undertaking business in Indonesia, including the social and cultural landscape, recent developments regards 'governance', law and legal certainty, business structures, and labour issues. Much emphasis is given to the issue of culture, more specifically, the perceptions, outlooks and/or beliefs that affect human interaction. In the past, perhaps, Western business peoples understanding of 'culture' has been relegated to the realm of manners or etiquette, of simplistic 'do's and don'ts'. However, cultural misunderstanding or miscommunication is generally far more likely to occur at the level of perception and outlook, rather than etiquette. This is not to suggest that etiquette is unimportant, but merely to attempt to shift emphasis from those external or visible cultural expressions to those expressions that are not immediately obvious, in particular as this affects communication.

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Falling home prices: The silver lining

noreply@blogger.com (Busico) — Thu, 21 Aug 2008 07:14:00 +0000

NEW YORK (CNNMoney.com) -- Home prices continue to tumble across the country, making homes more affordable in most U.S. cities, according to a new report released Tuesday.

Nationally, 55% of homes sold from April through June were affordable to families earning the U.S. median income of $61,500, according to a quarterly report released Tuesday by the National Association of Home Builders (NAHB).

That's up from 53.8% in the first quarter of 2008, and the most affordable home prices have been since the second quarter of 2004.

"Homes became more affordable because median income and interest rates remained about the same throughout the country, as home prices continued to fall," said Gopal Ahluwalia, an NAHB economist.

Median home prices dropped to $215,000 in the quarter, which are about 10% below year-ago levels of $240,000, according to NAHB.

"This is definitely positive news, because more people can afford to buy a home," said Ahluwalia. "Still, actual sales haven't picked up, because people are waiting on the sidelines as they fear home prices will continue to decline."

Falling home sales have battered the homebuilding industry. The NAHB study followed a Census Bureau report also released Tuesday that showed home building fell sharply in July to a 17-year low. Monday, a monthly NAHB report showed homebuilders' confidence in the housing market remained at record low levels.

Tale of two cities: Indianapolis and New York

Indianapolis led the the nation's major metro areas in home affordability for the 12th straight quarter. The median price of homes sold during the second quarter was $108,000, down from $122,000 last year. And 91.6% of the households there earning the median income of $65,100 could afford to buy a median priced home. That's up from 86.8% last year.

New York was the least affordable major housing market in the country, according to the report. It was the first time that a major metropolitan area outside of California was the least affordable home market in the 17-year history of the report. Los Angeles was the least affordable housing market at this point last year.

"Prices went down a lot in both areas, but they fell a lot more in Los Angeles," said Ahluwalia. "Prices are declining very rapidly in California because of a large supply and low demand."

In New York, the median home price fell slightly year over year to $481,000 from $510,00. That led to an increase in affordability; 11.4% of households earning the median income of $63,000 could afford to buy a median priced home, up from 6.3% in the second quarter of 2007.

Despite that change, New York still fell to the least affordable area from second-least affordable last year, according to this survey.

First Published: August 19, 2008: 4:29 PM EDT

Become An Author Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself

noreply@blogger.com (Busico) — Thu, 21 Aug 2008 07:06:00 +0000

When it comes to conflict, it’s pretty easy to take a bad situation and make it even worse. We say the wrong thing, in the wrong way, at the wrong time. Our emotions get the best of us and pretty soon things have spiraled out of control. It is possible, however, to take a strategic approach to conflict resolution. With a little thought and planning, you can effectively work out problems with coworkers, clients, family, and friends. The next time you’re engaged in a quarrel or dispute, try the following two-step approach:

Step one: Assess the situation. Ask yourself three key questions:

1. Is there a real issue here? Or am I making a big deal over nothing? Could I be misinterpreting or overreacting to the situation?

2. What’s the issue? Sometimes the overt disagreement is not the same as the underlying problem. Dig deep enough to discover the true issue.

3. Is it worth pursuing? Is this a one-time situation or a chronic problem? Is it disruptive to my work or merely annoying? Maybe I should simply let it go.

Let’s use a real-world example to bring this concept to life. Several years ago, I was sitting in my parked car in the lot of a local shopping mall. I happened to have a sleeping child in the back seat. (For those of you with children or grandchildren, you know the sage advice: Never wake a sleeping baby!) As I waited for my daughter to finish her nap, I suddenly heard and felt a scraping across the passenger side of my car. A station wagon had pulled into the spot next to mine - and taken a line of paint off the entire side of my car in the process. For some undisclosed reason, the driver of the car refused my request to write down her insurance information. When I walked to the front of her vehicle to see her license plate, she stretched her arms across front of the car in order to block my view. Strange, I know, but true.

So, let’s assess the situation.

1. Is there a real issue here? Yes, without a doubt. This is not a case of me overreacting or making something out of nothing.

2. What’s the issue? Someone has damaged my property and refused to take responsibility for it.

3. Is it worth pursuing? Yes, absolutely. I need the other driver’s information so that she or her insurance company can cover the cost of repairing my vehicle.

Step two: Make a choice. How can you best handle the problem? Possibilities include:

1. Let it go. Maybe it’s not a big deal after all. Perhaps it’s minor in the context of your overall relationship with the other party. Or hey, maybe the other guy was right after all.

2. Work it out. Talk to the other person. Get her side of the story. Be receptive and respectful. Look for areas of agreement and seek out a reasonable compromise.

3. Enlist the help of a third party. This is the right approach when you’ve been unsuccessful in your efforts to work it out with the other party and you aren’t willing to simply let it go. In this circumstance, you may need to involve someone with the authority to mandate a solution.

In the incident described above, I ultimately chose to enlist the help of my local police department. I wasn’t willing to let it go, couldn’t work it out directly with the other driver and needed the assistance of someone with the authority to mandate a solution. A report was filed, my car got repaired and the damages were paid by the other driver’s insurance company. Conflict resolved.
http://www.work911.com/articles/

Front and Center - Leadership Critical To Managing Change

noreply@blogger.com (Busico) — Thu, 21 Aug 2008 06:53:00 +0000

When change is imposed (as in downsizing scenarios), clearly the most important determinant of "getting through the swamp", is the ability of leadership to...well, lead. The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability, competence, and credibility of senior and middle management.

If you are to manage change effectively, you need to be aware that there are three distinct times zones where leadership is important. We can call these Preparing For the Journey, Slogging Through The Swamp, and After Arrival. We will look more carefully at each of these.

The Role of Leadership

In an organization where there is faith in the abilities of formal leaders, employees will look towards the leaders for a number of things. During drastic change times, employees will expect effective and sensible planning, confident and effective decision-making, and regular, complete communication that is timely. Also during these times of change, employees will perceive leadership as supportive, concerned and committed to their welfare, while at the same time recognizing that tough decisions need to be made. The best way to summarize is that there is a climate of trust between leader and the rest of the team. The existence of this trust, brings hope for better times in the future, and that makes coping with drastic change much easier.

In organizations characterized by poor leadership, employees expect nothing positive. In a climate of distrust, employees learn that leaders will act in indecipherable ways and in ways that do not seem to be in anyone's best interests. Poor leadership means an absence of hope, which, if allowed to go on for too long, results in an organization becoming completely nonfunctioning. The organization must deal with the practical impact of unpleasant change, but more importantly, must labor under the weight of employees who have given up, have no faith in the system or in the ability of leaders to turn the organization around.

Leadership before, during and after change implementation is THE key to getting through the swamp. Unfortunately, if haven't established a track record of effective leadership, by the time you have to deal with difficult changes, it may be too late.

Preparing For The Journey

It would be a mistake to assume that preparing for the journey takes place only after the destination has been defined or chosen. When we talk about preparing for the change journey, we are talking about leading in a way that lays the foundation or groundwork for ANY changes that may occur in the future. Preparing is about building resources, by building healthy organizations in the first place. Much like healthy people, who are better able to cope with infection or disease than unhealthy people, organization that are healthy in the first place are better able to deal with change.

As a leader you need to establish credibility and a track record of effective decision making, so that there is trust in your ability to figure out what is necessary to bring the organization through.

Slogging Through The Swamp

Leaders play a critical role during change implementation, the period from the announcement of change through the installation of the change. During this middle period the organization is the most unstable, characterized by confusion, fear, loss of direction, reduced productivity, and lack of clarity about direction and mandate. It can be a period of emotionalism, with employees grieving for what is lost, and initially unable to look to the future.

During this period, effective leaders need to focus on two things. First, the feelings and confusion of employees must be acknowledged and validated. Second, the leader must work with employees to begin creating a new vision of the altered workplace, and helping employees to understand the direction of the future. Focusing only on feelings, may result in wallowing. That is why it is necessary to begin the movement into the new ways or situations. Focusing only on the new vision may result in the perception that the leader is out of touch, cold and uncaring. A key part of leadership in this phase is knowing when to focus on the pain, and when to focus on building and moving into the future.

After Arrival

In a sense you never completely arrive, but here we are talking about the period where the initial instability of massive change has been reduced. People have become less emotional, and more stable, and with effective leadership during the previous phases, are now more open to locking in to the new directions, mandate and ways of doing things.

This is an ideal time for leaders to introduce positive new change, such as examination of unwieldy procedures or Total Quality Management. The critical thing here is that leaders must now offer hope that the organization is working towards being better, by solving problems and improving the quality of work life. While the new vision of the organization may have begun while people were slogging through the swamp, this is the time to complete the process, and make sure that people buy into it, and understand their roles in this new organization.

Conclusion

Playing a leadership role in the three phases is not easy. Not only do you have a responsibility to lead, but as an employee yourself, you have to deal with your own reactions to the change, and your role in it. However, if you are ineffective in leading change, you will bear a very heavy personal load. Since you are accountable for the performance of your unit, you will have to deal with the ongoing loss of productivity that can result from poorly managed change, not to mention the potential impact on your own enjoyment of your job.

(http://www.work911.com/articles/leadchange.htm)

Business with Heart (Berbisnis dengan Hati) Indonesian Version

noreply@blogger.com (Busico) — Thu, 21 Aug 2008 06:47:00 +0000

Aa' Gym Business tips

http://uploads.bizhat.com/file/270258