Becoming Shariah Compliant

Here, in brief, are a few of the issues addressed at the 7th Annual Shariah Compliant Business Campaign run by Madrasah In’aamiyyah, Camperdown. For complete details, visit the Madrasah’s website.

1) Medical Aid: A Shariah compliant alternative to haraam medical aid schemes. There is a non-Muslim club called Crescent Life style club. You pay a fee in lieu of a specific item. For example a magazine, etc. The company will offer you many voluntary services, e.g. if someone travels and wishes to use the executive lounge at the airport, send a tow truck if you have a break down etc. Likewise, if members falls ill, the club will offer medial aid services free of charge. There is no compulsion on the club to provide you the service and if they refuse, you have no legal claim against the club. However, the club will value its clients and offer its services to them. The Darul Ifta examined the contracts of the Crescent Life Style Club and concluded that it is permissible. Further information: Mohammed Vanker (Hosmed Broker) Tel: 083 786 0902 / 031 208 0902.

2) Rental Based on Income: Queries have been received regarding the following type of rental structure: When a person hires a franchise shop, he is required to pay a rental based on the turnover of the shop. E.g. if the turnover is R100,000 the rent will be 10% of that, which is R 10,000. We have researched the issue and found an example in the books of Fiqh. In the past, there was a practice that if a person hires a person to mine gold, he offers him a percentage of the mined gold. Likewise, the shop has to be mined and the payment is based on the money that comes in. This is a sound structure to rent and is permissible.

Other issues discussed were: futures and forwards trading, pension payout machines, lay-bye sales, deposits on rentals, inheritance and zakaat in business. For those interested in learning more, visit: