Kafalah (Guarantee) for Shariah-compliant SMEs in the UK

Kafalah (guarantee) is assurance, its original meaning relates to joining and commitment. Technically Muslim jurists differed about the definition of guarantee. The majority of Hanafis defined it as joining the debts or material assets. The second definition of theirs: joining the liability of the warrant or to the liability of the principal for a debt.…

Fighting Covid-19 with Sadaqah & Faith

The numbers are scary. As we write this, there are four and a quarter hundred thousand humans reported to be affected by the pandemic Covind-19. The number of deaths are fast approaching the twenty-thousand figure world-wide. No one can predict where these numbers are headed. Mankind has never faced a challenge of this magnitude during…

Developing a Waqf System in the UK

By Mufti Billal Omarjee, Certified Waqf Professional (CeWP), IIIBF. As we are out of Europe, and with the rise of populism and the far-right support across the UK and Europe, and with the recent attacks by so called Muslim jihadists in the West, it has become imperative for the British Muslims to start thinking of…

Blockchains through the Lens of Islamic Economics

The conceptual foundations of blockchain technology have a strong ethical dimension. It is usually associated with terms, such as, transparency, verifiability, traceability, immutability, all of which are bracketed with economically and socially ethical behavior. It is trust-inducing and involves consensus-building, that further underline its ethical roots. And its emergence in recent years is a response…

The Issue of Anonymity in Digital Zakat

Identity brings in many benefits in the context of zakat distribution (as underlined in my earlier blog). Lack of identity or anonymity on the part of the beneficiaries is certainly not desirable. It should be obvious that a digital environment makes it possible for the zakat organization to collect many types of personal data. Zakat…

The Issue of Identity in Digital Distribution of Zakat

My last blog ended on a note that digitizing zakat payments to beneficiaries would be more efficient, as compared to payments involving hard cash or in-kind payments, by avoiding costs related to leakages, fraud and ensuring greater accountability. This comes with a few qualifiers, however. We assume that the technology and infrastructure is there. And…

Making Sense of Digital Distribution of Zakat

Zakat may be paid out by an individual muzakki (zakat payer) directly to an individual mustahiq (zakat beneficiary). This is the practice in countries where there is no organized or institutional mobilization and disbursement of zakat. Arguably, organized zakat management has many positives. Available evidence suggests that organized zakat management may be more efficient in…