Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Dear Brothers, Assalamualaikum, Q1.What are the etiquettes of doing business as followed by the prophet(PUBH)? Q2. When riba is haraam and all the banks deal in interest in one way or the other, is there an institution such as a bank in islam? If not where are we supposed to keep our savings? 

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Answer:

What are the Etiquettes of doing Business as per the Prophet?

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad(saws) is His slave-servant and the seal of His Messengers.

Your question: What are the etiquettes of doing business as followed by the prophet(PUBH)?

Malik related from Yahya ibn Said that he heard Muhammad ibn al-Munkadir say, "Allah loves his slave who is generous when he sells, and generous when he buys, generous when he repays, and generous when he is repaid."

Al-Muwatta Hadith 31.100

Malik related that Yahya ibn Said heard Said ibn al-Musayyab say, "When you come to a land where they give full measure and full weight, stay there. When you come to a land where they shorten the measure and weight, then do not stay there very long."

Sunan of Abu-Dawood Hadith 3320 Narrated by Qays ibn Abu Gharazah

In the time of the Apostle of Allah (peace be upon him) we used to be called brokers, but the Prophet (peace be upon him) came upon us one day, and called us by a better name than that, saying: O company of merchants, unprofitable speech and swearing takes place in business dealings, so mix it with sadaqah (alms).

Sunan of Abu-Dawood Hadith 3449 Narrated by Abdullah ibn Amr ibn al-'As

The Prophet (peace be upon him) said: ‘Both parties in a business transaction have a right to annul it so long as they have not separated unless it is a bargain with the option to annul is attached to it; and it is not permissible for one of them to separate from the other for fear that one may demand that the bargain be rescinded.’

Al-Tirmidhi Hadith 2936 Narrated by Suhayb

Allah's Messenger (peace be upon him) said, "There are three things which contain a blessing: business transaction with a time specified, muqaradah, and mixing wheat and barley for one's household but not for sale."

Al-Tirmidhi Hadith 2880 Narrated by Abdullah ibn Mas'ud

The Prophet (peace be upon him) said, "When two people who are arranging a business transaction disagree, the commodity being present and neither being able to prove his case, the decision rests with the seller, or they may both reject the transaction."

Al-Tirmidhi Hadith 2783 Narrated by Rafi' ibn Khadij

Allah's Messenger (peace be upon him) was asked what type of earning was best and replied, "A man's work with his hand and every business transaction which is approved."

Your question: When riba is haraam and all the banks deal in interest in one way or the other, is there an institution such as a bank in islam? If not where are we supposed to keep our savings? 

There are several reputed Islamic banks and institutions in the world today who are engaged in doing transactions which are approved by Shariah. A believer, who truly wants to stay away from dealing in Riba, may use the services of any of these Islamic banks; and Allah Subhanah will reward him for his intentions to stay pure of the evil of ‘riba’.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.

Your Brother in Islam,

Burhan