Warning Against Riba [ Usury ] Transactions - Islam House

the indebted individuals and nations to suffer from rising
unemployment and recessions 10 . In such conditions, those
who have capital prefer to lend their money in return for
high interest returns, instead of investing in beneficial
projects, such as building factories, construction projects,
and so forth.
On the other hand, the various business transactions
that Allah has allowed will surely benefit the Muslim
Ummah, and mankind on the whole, and will ensure an
increase both in wealth and piety for them. Also, what
Allah legislates and allows will certainly provide work for
the unemployed and help for the poor, so that they acquire
an honorable means of livelihood. Hence, the entire
community will benefit from the absence of Riba and from
begging others for help and indulging in the impermissible
means of amassing wealth.
Allah allowed Muslims to establish companies,
factories and various productive institutions that benefit the
people by producing weapons, clothes, furniture, and so
forth. Also, Allah allowed Muslims to participate in
agricultural production, which in turn benefits all Muslims,
especially the needy among them.
[10] [The reader should remember the plight of countries who
were considered potential economic powerhouses a few decades
back, but were brought to their knees because of Riba. The
economies of countries like Brazil, Mexico and Argentina, to
name a few, almost collapsed because of their inability to pay
the huge accumulative services (or Riba!) on their national
debts, let alone paying the principal. Yet, there still some
Muslims who advocate usury, even though Allah and His
Prophet disallowed it. They do not contemplate the economic
disasters brought to indebted nations because of Riba.]