Sunday, February 27, 2011

Economic System of Islam

Islam is an entire way of life, and Allah's Guidance extends into all areas of our lives. Islam has given detailed regulations for our economic life, which is balanced and fair. Muslims are to recognize that wealth, earnings, and material goods are the property of God, and that we are merely His trustees. The principles of Islam aim at establishing a just society wherein everyone will behave responsibly and honestly. The fundamental principles of the Islamic economic system are as follows:

  • Muslims are not to deal in interest. "Those who devour usury will not stand....Allah has permitted trade and forbidden usury.... Allah will deprive usury of all blessing, but will give increase for deeds of charity..." (Qur'an 2:275-6). "O you who believe! Devour not usury, doubled and multiplied. But fear Allah, that you may really prosper" (Qur'an 3:130) This prohibition is for all interest-based transactions, whether giving or receiving, whether dealing with Muslims or non-Muslims. It is reported that the Prophet Muhammad (peace be upon him) cursed those who pay interest, those who receive it, those who write a contract based on it, and those who witness such a contract.
  • It is forbidden to gain property or wealth by fraud, deceit, theft, or other falsehoods. "...Give just measure and weight, and do not withhold from people the things that are their due. And do not do mischief on the earth after it has been set in order. That will be best for you, if you have faith" (Qur'an 7:85).
  • It is particularly hateful for a guardian to take from an orphan's property. "To orphans restore their property (when they reach their age). Do not substitute your worthless things for their good ones, and do not devour their property by mixing it up with your own. For this is indeed a great sin" (Qur'an 4:2).
  • Forbidden are earnings from gambling, lotteries, and the production, sale, and distribution of alcohol. "O you who believe! Intoxicants and gambling, sacrificing to stones, and divination by arrows are an abomination of Satan's handiwork. Eschew such abomination, that you may prosper" (Qur'an 5:90).
  • It is unlawful to hoard food and other basic necessities. Everyone should take what they need and no more. "And let those who covetously withhold of the gifts which Allah has given them of His Grace, think that it is good for them. No, it will be the worse for them. Soon it will tied to their necks like a twisted collar, on the Day of Judgment. To Allah belongs the heritage of the heavens and the earth, and Allah is well-acquainted with all that you do" (Qur'an 3:180).
  • A Muslim should be responsible in spending money. Extravagance and waste are strongly discouraged. "[The Servants of Allah are] Those who, when they spend, are not extravagant and not stingy, but hold a just balance between those extremes" (Qur'an 25:67). "O Children of Adam! Wear your beautiful apparel at every time and place of prayer. Eat and drink, but waste not by excess, for Allah loves not the wasters" (Qur'an 7:31).
  • Muslims must pay Zakat (alms). "And they have been commanded no more than this: to worship Allah, offering Him sincere devotion, being true in faith. To establish regular prayer, and to give zakat. And that is the religion right and straight" (Qur'an 98:5). Every Muslim who owns wealth, more than a certain amount to meet his or her needs, must pay a fixed rate of Zakat to those in need. Zakat is a means of narrowing the gap between the rich and the poor, and to make sure that everyone's needs are met.
  • Muslims are encouraged to give constantly in charity. "Your riches and your children may be but a trial. Whereas Allah, with Him is the highest reward. So fear Allah as much as you can, listen and obey, and spend in charity for the benefit of your own souls. And those saved from the selfishness of their own souls, they are the ones that achieve prosperity" (Qur'an 64:15-16). The Prophet Muhammad once said that "nobody's assets are reduced by charity."

Thursday, February 24, 2011

Oil pressure rising

A MONTH ago Brent crude oil stood at around $96 a barrel and Hosni Mubarak was ensconced as Egypt’s ruler. Now he is gone, overthrown by a display of people power that is shaking autocratic leaders across north Africa and the Middle East. And oil has surged above $111. Little wonder. The region provides 35% of the world’s oil. Libya, the scene of growing violence this week, produces 1.7m of the world’s 88m barrels a day (b/d).So far prices have not been pushed up by actual disruptions to supply. Oil hit a peak even before news emerged that some foreign oil companies operating in Libya would stop some production and that the country’s ports had temporarily closed. As Adam Sieminski of Deutsche Bank points out, oil prices are driven both by current conditions and by future expectations.

Oil markets don’t like surprises. The sudden ousting of Mr Mubarak and the unrest in Libya, Bahrain, Yemen, Iran and Algeria (which between them supply a tenth of the world’s oil) have added 16% to oil prices. But the big worry is that spreading unrest will culminate in another shock akin to the oil embargo of 1973, the Iranian revolution or Iraq’s invasion of Kuwait.

Oil is more global than it was during those previous crises. In the 1970s production was concentrated around the Persian Gulf. Since then a gusher of non-OPEC oil has hit markets from fields in Latin America, west Africa and beyond. Russia overtook Saudi Arabia as the world’s biggest crude supplier in 2009; OPEC’s share of production has gone from around 54% in the mid-1970s to just over 40% now. Yet the globalisation of oil supply has not diminished OPEC’s clout as the marginal supplier of crude. Markets are tight at the moment. Bumper inventories, built up during the downturn, are running down as the rich world recovers and Asia puts on a remarkable growth spurt. Demand rose by a blistering 2.7m b/d last year, according to the International Energy Agency, and is set to grow by another 1.7m b/d this year by Deutsche Bank’s reckoning. Many other producers are already running at full capacity; OPEC has its hands on the only spare oil (see chart).

If Libya’s oil stopped flowing importers would look to Saudi Arabia to make up the shortfall. The oil could probably flow to fill the gap in Europe, Libya’s main market, in a matter of weeks. OPEC claims that it has 6m b/d on tap but that looks wishful. Analysts think the true number is nearer 4m-5m b/d, with 3m-3.5m b/d in Saudi hands. That is ample to plug a Libyan gap but would hasten the day when growing world demand sucks up all spare production capacity and sends oil prices rocketing. Analysts at Nomura reckon that it would only take a halt of exports from Algeria as well to absorb all the slack and propel oil to a terrifying $220 a barrel.

Despite rising prices, Saudi Arabia has so far been reluctant to turn its stopcocks. OPEC claims that the world is amply supplied with oil and seems content with a price around $100 a barrel. Traders hope that Saudi Arabia will boost production stealthily or that OPEC will call a special meeting to raise quotas and calm markets.

The worst-case scenario for oil prices would be some kind of disruption to Saudi supply itself. That concern has become livelier given the unrest in neighbouring Bahrain. The tiny island kingdom produces little oil but is of vital strategic importance in the Persian Gulf, a seaway that carries 18% of the world’s oil. America’s 5th Fleet, which polices the Gulf against troublemakers (ie, Iran), uses the country as a base.
The Saudis may also fear that protests by Bahrain’s Shia population could spill over their own borders. Saudi Arabia’s eastern provinces are home to both its oil industry and most of its Shias, who may also have cause for grievance with their Sunni rulers. One crumb of comfort is that oil facilities across the region are generally located far from the population centres, where protests tend to be concentrated, and are well defended against anything but a concerted military assault.

Sunday, February 20, 2011

Academic's Report

1) scholarship briefing programme
- postpone from 22 jan to 18 feb 2011
- venue - LT1 KENMS
- nature of the programme - basically,we r like to invite companies/institution to send their representatives from their organization as speakers in this programme to give a talk about scholarship available in their organization.

2) intelexplorace [THEME: "stay fit for excellent mind"]
- 24,27,n 28 feb 2011
- 24 feb - Preliminary Stage - 15 teams will be participated (3 persons per team)
                                        - the best 10 teams will be going to the nest stage
                                        - every team will sit to a written test (MCQ about general knowledge)

- 27 feb - Explorace - best 10 teams will be participated in this explorace
                                - physical strength needed
                                - iium area

- 28 feb - Wow! Quiz - a final round where the intellectual strength/ability will play a very big role in order for them to be crowned as winners.
                                  - 4 teams out of 10 teams will be competed in this final stage.
                                  - LT1 kenms

- nature of the programme - it is a combination of indoor game and outdoor game.

Tuesday, February 15, 2011


Assalamualaikum warahmatullahi wabarakatuh...

Dear brothers and sisters in Islam,

How was your iman today? Hopefully, it is in a good condition.
Unconsciously, we had undergone four weeks of this semester. Expectantly, we have giving a good move for these four weeks in order to face the remaining weeks of this semester. InsyaAllahu Ta’ala.

This moment, I am glad to have the opportunity here to share with all of you friends about a value that we should make it as a start of our life every day. This kind of action is easy but most of the people feel like this is the hardest attitude to comply with.

So, how do you think it then? What attitude that I am talking about?

Okay, for the clue, here I give you one verse which is related to this puzzle.

"And when you are greeted with a greeting, greet in return with what is better than it or (at least) return it equally." 
(Qur'an, An-Nisa 4:86)

So, how? 

Yes, exactly, what I am intentionally wanted to share with all of you here is about the attitude of giving salaam among the Muslim. Everybody knows how to give salaam and such greeting goes “Assalamualaikum warahmatullahi wabarakatuh”. It is just a simple word that you can spread it if you meet you friends or any people you see around you. As what I am stated above, some people somehow hard to give salaam among the people around them. As our Prophet Muhammad (PBUH) said in one of the Hadith narrated by Muslim:

"You will not enter paradise until you believe, and you will not believe until you love one another: 'spread salaam' (the greeting of peace) among you." (Muslim)

This hadith shows us how was salaam is important among us as Muslim. In fact, this show us Allah is the Most Gracious, He can easily give us a rewards only by giving salaam but, remember by having a good intention(niyyah). 

Furthermore, initiating salaams is considered 'Sunnah' or optional, returning the salaams after it is offered is considered 'wajib' or obligatory, based on the first Qur'anic ayah mentioned
So, from now on, we should start giving salaam among us, regardless of having friend relationship or knowing that people or not. This is one hadith that we should understand it well,

In one Hadith a man asked the Prophet about which aspect of Islam was best. The Prophet replied: 
"Feeding the hungry and saying salaam to those you know and those you don't know." (Bukhari and Muslim)

Fake it till you make it, do it until it become your habit.

Hark back the time of Prophet Muhammad and his companions, they always compete with each other who is giving salaam first.
The Prophet said: 
"The best of the two persons is the one who begins with salaam." (Related by Nawawi in his book Al-Adkar) 

Then another hadith says:
"The Prophet was asked: 'O Messenger of Allah ! When two persons meet with each other, who should take the lead in greeting the other? He answered: 'The one who is closest to Allah." (Tirmithi) 

Remember friends, the Prophet said: 
"The person closest to Allah is the one who precedes others in greeting." (Abu Dawud)

Lastly, thanks to all of you for lending us some time to read or even have a glace to this writing. Have a nice try and let’s together compete to collect rewards of our good deeds.