Article 87
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Blockchain Industry Review
THE ROLE OF SMART CONTR Islami
Finance
and Shariah C
WITH DR FARRUKH HABIB, SHARIAH EXPERT AND CO-FOUNDER ALIF TECHNOLOGIES
I
invited Dr Farrukh to explain about Islamic Finance and Shariah compliant financial products which he explains are basically the same thing. However, before he begins, he points out that Islam is actually a complete code for living that has a comprehensive set of rules and principles for each and every walk of life.
Dr Farrukh Habib, Shariah Expert and Co-founder Alif Technologies
“It’s not only about worship, but it governs public dealings too. In all matters,
Islam provides guidance not only in regard for the man-to-God relationship, but also for the man-to-man relationships.” “Islam extends to the whole family. It is a complete jurisprudence in the sense that it provides all the principles, including a complete alternative of conventional financial systems which is called the Islamic Financial system.” I ask about the differences between Western Financial Systems and Islamic, and Dr Farrukh corrects me on my terminology. Western Financial system is better termed conventional finance as it exists in all corners of the world. “In order to explain the main difference let’s look at the term Riba. It is sometimes translated as interest or usury, but it means more than that. In the Quran, Allah has prohibited Riba but allowed trade, one is prohibited, and one is permissible, so let’s break that down.” Interest typically happens in a lending
