Основной низам Второго нового халифата (третья редакция с комментариями) ПОЛНАЯ ВЕРСИЯ (English)

Pashkov Roman Viktorovich

CONSTITUTION OF THE RIGHTEOUS

SECOND NEW CALIPHATE

as the House of Allah of all Muslims on Earth until the Day of Judgment

(EXTENDED VERSION)

Moscow

2016

THE BASIC NIZAM (CONSTITUTION) OF THE CALIPHATE

(NEW (THIRD) EDITION)

Comment:

The Islamic form of government is a system of state institutions in an Islamic state in which these institutions are built on the basis of the doctrine of Sharia, embody democracy and provide guarantees of righteous governance for Muslims.

Righteous rule is the rule of the head of an Islamic state, under which all Muslims feel themselves living according to the laws of Allah and happy in their existence, carry the light of Islam, and the ummah develops in peace and harmony among all.

Islamic political and legal doctrine is a system of views and ideas about the political side of Islam and the Islamic state, formulating the main provisions of Islamic legal doctrine, based on the Revelation of Allah as a source of law, subsequent interpretation by mujtahids and the development of governing practices.

Modern picture of the world:

The Caliphate is a historical state under the leadership of the Arab people, headed by the caliphs as the personification of central authority; the source of legislation was the rapidly developing Sharia of various madhhabs; the era of the highest flourishing and breakthrough of Islam, the Caliphate collapsed under the influence of internal causes of disintegration due to the inability to involve territories in the process of general state building.

The Caliphate is a modernist doctrine of a unified Islamic state as the duty and obligation of every Muslim, based on the principle of «one heaven — one truth — one faith — one caliph.» This state derives from the sovereignty of Allah over Muslims, the election of the caliph by the consent of all Muslims, the federal nature of the union statehood, and Sharia in its updated version.

Caliphate — in jihadism, the doctrine of a single Muslim state without limits to expansion, the duty of every Muslim to contribute in every way to increasing the power of the caliphate and the spread of the Islamic faith, the doctrine of jihad of the sword, that is, the armed path to the creation of a caliphate, is promoted.

Imamate — historical states within the Islamic world, based on the concept of the imam as the source of religious and supreme authority in the state, focusing on the most stringent interpretations of Sharia; one could say that these were states of ideological utopia with a doctrine of continuous expansion.

Imamate is the doctrine of the Islamic state, which is based on the concept of the Imamate as the religious leadership of the head of state, power is distributed from the clergy, the state prepares Muslims for the future life under the shadow of a single leader.

An emirate is a historical and modern state within the Islamic world, characterized by its small size and the hereditary nature of the emir’s power, appealing to the common tradition of governance among a given people and Sharia law.

An emirate is part of a union state of Muslims, a source of delegating power in a treaty federation in the Islamic world, headed by a hereditary emir from a local dynasty.

Emirate — according to the doctrine of the caliphate, an emirate is a union district for the implementation of the central authority of the caliph in the state.

An emirate is a province within a kingdom in the Islamic world, headed by an emir from the ruling monarchical family.

Emirate is a doctrine of the creation of Muslim states in jihadism, which later form a jihadist caliphate, emerging as a result of armed insurgency.

Sultanate — historical and modern states within the Islamic world, the distinctive features of which are a long uninterrupted tradition of rule by a dynasty of sultan among a given people, these states are states of the traditionalist type.

The Sultanate is part of the union state of the Caliphate as a constitutional federation, headed by either a sultan from a local hereditary dynasty or an elected official.

An Islamic federation is a union state within the Islamic world, based on the contractual nature of power, a union of emirates (which can also be called states), and a periodic change of leadership of the union (declared or actual).

Kingdom – a modern state within the Islamic world, essentially based on the Western model of a monarchical hereditary dynasty with a strong influence of Sharia, the dynasty being supported by the state apparatus, the clergy, and influential tribes.

Republics are modern states within the Islamic world, based on the Western model of democracy and the rule of the people as a source of law, but in reality, the state authorities strive to build a secular state, headed by a pro-Western political elite, minimizing the influence of Sharia, but relying on the army and the state apparatus.

An Islamic republic is a modern state within the Islamic world, built essentially on Western state institutions, even embracing a religious model. Sharia plays a significant role in these states. The state proclaims itself a Muslim state.

A vilayet is a province in a unitary state such as a republic or Islamic republic, and in the jihadist concept of an emirate.

What’s Happening in the Islamic World (Views):

1. The formation of a single Muslim super-ethnos and the process of its formation causes extremely great tension, requiring state registration in a single state.

2. The era of Western colonial dominance is coming to an end, and we are witnessing a reshaping of the system of international relations and the Greater Middle East. We can speak of the beginning of an era of a post-colonial, post-Christian world.

3. The slumbering era of the Islamic world is ending, and the Islamic spirit is awakening. The Islamic world no longer wishes to be an arena for Western states to fight over, but rather to make history itself. If Muslims previously chose between Western democracy and communism, now Islamic ideas are also winning.

4. The constant interference of the Western world in the Islamic world greatly complicates the process of forming a new identity and leads to bloody excesses, giving rise to jihadist movements.

The Islamic project is a potential global project of the Islamic world, according to Muslim scholars, that allows the ummah (community) to take an equal place in the world community of civilizations and states, consisting of the creation of Islamic statehood in the lands of Islam, adherence to Sharia, and the re-establishment of the Caliphate.

The Caliphate, as the spiritual political bond between Muslims worldwide, can never be severed, but this spiritual component does not always find its expression in real statehood. The Caliphate, as a righteous state, is the highest imperative for Muslims, so that they can live under the God-given authority of the Islamic world.

The First Caliphate is a historically existing unified state of Muslims on Earth, which began as a state during the era of the first caliphs, who united the peoples under the single authority of the caliph, who ruled by the general consent of Muslims with the support of Islamic scholars and clerics in alliance with the spiritual leader Sheikh ul-Islam.

The second new caliphate is a recreated and continued united state of Muslims based on the Islamic statehood of the union of Muslim peoples as a righteous state of true Muslims to serve Allah along the path of the Universe.

The Third Galactic Caliphate is a continuation of the Second Caliphate, a state of Muslims in the Galaxy, expanding the boundaries of humanity and Muslims as its part in the Universe, built as a union of all Muslims for the common good.

Fiqh or Islamic law is a system of legal norms, based essentially on the Quran (plus the Sunnah for Sunnis), which considers the construction of an Islamic state necessary, including many norms of a religious nature, but not only, and acts as an integral legal part of Sharia.

Characteristics of an Islamic state (meaning the concept):

The Righteous State is a state built on the principles of the first state of the Caliphate,

The eternal tradition of governance – the statehood of the Caliphate is never interrupted, even if the political state ceases to exist as a result of hostility and civil strife,

A Sharia state is a state built on the principles of justice embodied in Sharia.

The Western tradition of rights proclaims a system of checks and balances, which include judicial constitutional review, separation of powers, the rule of law, and parliamentary control.

Was there such a system of checks in the caliphate?

There it was and here it is:

1. The qadi judicial corps greatly limited the arbitrary exercise of power by the caliphate’s officials, establishing a uniform legal order. By establishing a uniform law, the qadis compelled officials not to pursue only personal interests but also to pursue the public good.

2. The power of the Caliph was limited by the alliance with the Sheikh ul-Islam as the head of the clergy, and the clergy acted as a rigid counterweight to the secular authorities.

3 The power of the caliph was seriously limited by the power of regional sultans; in the 10th-12th centuries, the caliph was, in fact, already an imam, that is, the spiritual head of the caliphate, and the sultans headed the regional governing elites, relying on the central power of the caliph.

4. The bureaucracy, as the support of the caliph, could often oppose, through the chief vizier, the cancellation of one or another decision of the caliph, bringing the issues up for discussion at the Divan (the Council under the caliph of officials).

Therefore, it is necessary to understand that the caliph had no trace of absolute power.

Jihad is an Islamist state created as a result of jihad by the sword, which postulates a continuous mission of expanding living space, enters into direct military conflict with other states, and proclaims extremely strict forms of regulation of social relations.

The jihadist state includes:

1. Islamic form of government. The Islamic form of government encompasses a number of modern states in the Islamic world, to varying degrees within the Islamic world, as well as concepts of state structure based solely on a religious understanding of public life and, consequently, the complete subordination of statehood to the requirements of Sharia as a formulated doctrine not subject to revision over time.
2. Only Unitarianism.
3. Totalitarian political regime.

In jihadism, only a caliphate or imamate is possible, with the temporary formation of emirates on the path to building a unified state.

An Islamic state is a structural form of development of an Islamic community at a certain historical stage, radically changed in connection with the Revelation of Allah to the Prophet and creating a new statehood based on the truth of Islam, embodying the spirit of Sharia (fiqh) and regulating relations in such a state based on the principles of the world order of Islam as a comprehensive religion.

The Islamic State includes:

1. Islamic national form of government. Islamic national form of government is a form of government in the transforming modernist nation- states of the Islamic world, based on traditional, modernizing institutions of power that complement the leading role of the state, stemming from the religious union of state and society, and embracing Islamic revival as its ideology. Islamic national form of government (another option) is a form of government within Islamic civilization, based on the harmonious combination and complementarity of the national tradition of world order and governance and the worldview of the Revelation in the Quran, which prescribes the structure of Islamic statehood based on the observance of covenants and adherence to the path.
2. Islamic federation or unitarism of a small state.
3. Democratic political regime.

Characteristics of an Islamic state:

1. ahistoricality, that is, the fact of its appearance is ahistorical and does not depend on the will of Muslims, but it arises along the path of the Lord by virtue of the truth of Islam, although it takes into account to a certain extent the previous development of a given people.

2. a fundamental change in the life of the ummah, that is, a complete reformatting and transformation of social relations in connection with the proclamation of such a state.

3. is built on the basis of living practice of Sharia, which develops new norms in the process of state building.

4. The society itself in such a state is built on the basis of the principles of the Islamic world order, and not just the state as its form.

The difference between jihad and the caliphate or imamate is not that jihad is created as a result of armed struggle; the caliphate also allows for wars of liberation, but that the mission is proclaimed to be one of expansion by fire and sword to an infinite limit, including through the conversion of the infidels.

In an Islamic state, a caliphate, imamate, emirate and sultanate are equally possible.

An Islamic traditional state is a traditionalist state found in a number of countries in the Islamic world, proclaiming an uninterrupted tradition of statehood under conditions of extremely cautious modernization by the ruling elite, primarily preserving the established balance of interests and the system of governing institutions. An Islamic traditional state includes:

1. Traditional Islamic government. Traditional Islamic government is a form of government in a number of Islamic countries on the path to building national forms of statehood. It involves an extremely cautious modernization of established institutions of power and takes into account, to a very large extent, the existing system of institutions and the balance of interests.
2. Autonomy is permissible in a unitary state.
3. Authoritarian political regime.

In an Islamic traditional state, the most preferred are the emirate and sultanate.

What is Islam?

Islamat is a state based on the Islamic national form of government, capable of modernizing social life and state institutions, creating new forms of social relations that take into account the tradition and experience of the people, as well as the achievements of human thought (and not only within the framework of Islam).

State institutions of Islam:

Amir of Islam

Majlis al-Bay’ah

Majlis al-Shura

Constitutional Shura

Government

Departments

The Islamic judicial system headed by the Supreme Sharia Court.

Why the Islamic Republic of Iran is not an Islamic state and Muslims have the right to refuse obedience.

Let’s leave aside the contradictions between Shiites and Sunnis and consider the matter in essence.

1. The ruling class in Iran is the clergy, who rule through the Rahbar—the religious head of state. The clergy believes the revolutionary mandate to rule is indefinite. However, this is not the case. The mandate of the revolution entailed the need to build a righteous state for Muslims, which was not accomplished. The mandate remains in effect as long as the demands of the good of Muslims are met. The clergy have forgotten the needs of the people.

2. The clergy should not participate in the political life of the Islamic state; it guides the souls of Muslims, but does not govern; this is a mistake of temptation by power and a contradiction with Sharia.

3. The head of state cannot be a representative of the clergy; it can also be a religious leader, but with legitimacy based on leadership qualities, and not social status.

4. In essence, the ruling class in Iran is now a narrow group of elders, that is, a gerontocracy, hiding behind the religious mandate of the revolution.

5. It should be noted that the clergy in Iran is analogous to the Soviet Communist Party and is integrated into the state apparatus. Sharia law denies the possibility of building a one-party state of social justice for all Muslims.

Thus, Iran is ruled by a small group of elders from the clergy, who consider the people’s revolutionary mandate to rule to be perpetual; this obviously violates Sharia and cannot be considered righteous governance for the benefit of Muslims.

In essence, Iran remains in many ways a jihadist state in the Shiite variant (both in terms of its creation as a result of the military victory of the Islamic Revolution, and in terms of the methods of exercising power in the modern period) in the context of an extremely slow transformation of a number of institutions of power from a totalitarian version of the political regime to an authoritarian one.

Why Muslims should support the Syrian Alawite regime of Bashar al-Assad.

Syria was under threat of enslavement by the Kharijites with the active intervention of the West and therefore:

1. We acknowledge that the central government in Syria belongs to the Alawite religious minority, and this government is, at the very least, authoritarian. However, the regime did not oppress Muslims or any minorities in Syria, maintaining a balance of interests. The government did not divide citizens by religion, allowing them to freely practice various religious beliefs. Christians were represented in the government, and this cannot be considered impermissible; rather, it is a benefit to the state and Muslims.

2. The threat is growing, and this threat is the new pagans—the Kharijites—who speak in the name and under the banner of the true faith of Allah. They are mistaken if they believe they alone have a monopoly on truth and righteousness, believing that violence will secure their salvation in Paradise.

Syria is a barrier in the path of the Kharijites and in this sense acts as a defender of the faithful.

3. It is necessary to understand that if the Kharijites win in Syria, night will fall and the country will be plunged into the darkness of despair and violence against all citizens.

As long as the regime resists, there is hope for some respect for human rights in Syria, but once it falls, a long night will begin.

4. The state in Syria is not Islamic, if only because of the existence of a socialist party as part of the state apparatus of governance, but Muslims can still participate in the governance of such a state by observing Sharia in their personal and family life and performing religious worship.

Thus, the regime of Bashar al-Assad is despotic, but much worse awaits Muslims and everyone else if the Kharijites win, the country will cease to exist and violence will become the norm of life for a small group of people from the Kharijites.

Why Saudi Arabia is not the House of Allah for the righteous life of the faithful on the sacred Arab land.

It’s no secret that many Muslims privately consider Saudi Arabia a model Islamic state, but this is far from the case, and Western notions of democracy will not underpin such discussions. Muslims have the right to refuse allegiance to the Saudi clan and sever their bay’ah.

So, let’s consider:

1. A righteous state requires governance by Muslim consent. However, the Shia Muslim Brotherhood in the Kingdom’s Eastern Province—which, incidentally, is the most oil-rich and, I would say, the main oil producer—is being suppressed in every possible way. Even more so: any Shia dissent is suppressed.

2. The Shura principle, or Muslim representation, is absent. Decorative advisory councils are not supposed to deceive anyone; the king controls them as he pleases, and their opinions are not binding on the authorities.

3. Lack of fair trial, the judicial system is extremely archaic.

4. What is evident is, in principle, an armed seizure of power in the Kingdom by the clan of the ruling Saudi dynasty, which, in principle, everyone knows, but this is justified by the creation of a united Arabia, as if no one else could unite the country.

Let us emphasize that it was the Saudis who defeated the Kingdom of Hejaz with its God-given Hashemite dynasty, descended from the family of the Prophet himself, which now rules Jordan, and it is the Hashemite dynasty that has far more rights to Arabia than the Saudi clan, which, in fact, descends from the local tribal nobility of one of the Arabian tribes.

5. The presence of a ruling dynasty in alliance with the clergy justifies the need to govern a large desert state with a certain nomadic element in the form of tribes, but this is not at all true. Essentially, Saudi Arabia is a Western-style absolutist state, supported by the clergy and a state bureaucracy fueled by oil rents. But doesn’t Arabia deserve better governance in the ancient land of Islam?

6. Finally, we point out that Saudi Arabia is a hereditary monarchy of the Saudi clan, which is directly prohibited by Sharia; the caliph or ruler must be elected by the ummah of the state.

Thus, the Saudis carried out an armed seizure of power under the slogan of a united Arabia, overthrew the Hashemite dynasty of the Prophet, rule despotically to the detriment of Muslims, use oil rents to oppress Muslims with a repressive apparatus, and instead of the Shura, a king from the Saudi clan rules, and not an elected caliph from the line of the Prophet.

In essence, Saudi Arabia remains in many ways a jihadist state in the Sunni variant (both in terms of its creation as a result of a Saudi military victory under the banner of Wahhabism, and in terms of the methods of exercising power in the modern period) in the context of an extremely slow transformation of a number of institutions of power from a totalitarian version of the political regime to an authoritarian one, while many reforms are only in name reforms in the context of an unlimited absolutist monarchy.

Global Financial Crisis: How Can Islamic Finance Help?

Justice in human society

One of the fundamental goals of Islam is to achieve greater justice in human society. According to the Quran, a society lacking justice will ultimately lead to decline and destruction (Quran 57:25). Justice requires a set of rules or moral values accepted and observed by all members of society. A financial system can support justice if, while being stable, it meets two conditions based on moral values. First, credit should share risks so as not to shift the entire burden of losses to the entrepreneur. Second, a fair share of the financial resources mobilized by financial institutions should be available to the poor, which will help alleviate poverty, increase employment and create opportunities for self-employment, and, consequently, eliminate inequality in the distribution of income and wealth.

The first condition of justice

To fulfill the first condition of justice, Islam requires a fair distribution of profits and losses between the lender and the entrepreneur. To this end, one of the fundamental principles of Islamic finance—»no risk, no profit»—is applied. This will help improve discipline within the financial system by encouraging financial institutions to more carefully assess risks and effectively monitor borrowers’ use of funds. Dual risk assessment by lenders and entrepreneurs will help improve discipline within the system and reduce over-borrowing.

Islamic finance, in its most advanced form, should help introduce equity financing and the profit and loss sharing (PLS) principle into business. Even many in the traditional economy support the increased use of equity financing. Harvard University professor Kenneth Rogoff argues that in an ideal world, equity financing and direct investment would play a more significant role.

The development of equity financing does not necessarily mean the elimination of debt financing. This is because not all financial needs of individuals, firms, or governments can be met through equity financing and RLP. Thus, debt financing cannot be completely eliminated, but it should not be developed for the purpose of wasteful consumption and non-productive speculation.

To this end, Islamic finance does not permit the acquisition of debt through direct borrowing. It allows for the creation of debt through the sale or lease of inventory—and lease-based financing models ( murabaha, ijara, salam, istisna , and sukuk ). The purpose of such financing is to enable an individual or firm to acquire goods or services needed at a given time, taking into account their ability to pay for them in the future. this necessary compliance some conditions :

• The assets sold or leased must be real, not imaginary or nominal.
• The seller or lessor must own the goods being sold or leased.
• The transaction must be a genuine commercial transaction with the clear intention to sell and deliver goods.
• The debt cannot be sold and thus the risk associated with the debt must be borne solely by the creditor.

The first condition will eliminate a large number of derivative transactions that are essentially gambling by third parties seeking compensation for losses incurred by the principal party rather than by such third parties.

The second condition of justice

The second condition will ensure that a portion of the risk is distributed to the seller (or lessor), who must assume the risk in order to receive a portion of the profit. Once the seller (lender) purchases the goods intended for sale or lease, they assume the risk. The condition also stipulates a limit on short sales for a period, which will eliminate the possibility of a sharp decline in asset prices during a downturn. However, Shariah provides an exception to this rule in the case of salam and Istisna , when goods are not yet available on the market and must be produced for delivery . Thus, financing under Islamic schemes can only be expanded for the purpose of growing the real economy and overcoming the excessive expansion of credit.

The third and fourth conditions of justice

The third and fourth conditions will not only motivate the lender to more carefully assess credit risks but also prevent an unnecessary expansion in the volume and value of transactions. This will avoid debt obligations that significantly exceed the size of the real economy and free up significant financial resources for the real sector, thereby ensuring employment growth, creating opportunities for self-employment, and producing goods and services in sufficient quantities to meet demand. The discipline that Islam seeks to establish in the financial system will not materialize unless the government reduces its borrowings from the central bank to a level consistent with its target price and financial stability.

It may be objected that all these conditions could lead to a reduction in the size of the economy through a reduction in the number and volume of transactions. This is unlikely to happen, as it is well known that certain speculative and derivative transactions are zero-sum games and rarely have a positive impact on real production. Therefore, a reduction in such transactions will not lead to a contraction of the real economy.

While limiting such operations will reduce speculators’ commissions during artificial booms, it will help them prevent losses and bankruptcies that are inevitable during downturns and lead to financial crises.

Imposing greater discipline on the financial system could lead to subprime borrowers being denied access to credit. Therefore, fairness requires the development of innovative system products that will ensure even small borrowers have access to adequate financing. Such borrowers are typically considered subprime, and their inability to obtain credit will deprive them of the opportunity to realize their dreams of owning a home or a microenterprise.

Microfinance

There is no doubt that a number of countries have created specialized institutions for lending to poor and low-income entrepreneurs. Despite the usefulness of such institutions, two major problems need to be addressed. One is the high cost of financing (from 30 to 84 percent in the microfinance system, which is linked to interest). This seriously complicates the task of borrowers servicing their debt. It is not surprising that the Bangladeshi Finance Minister described microcredit interest rates in his country as exorbitant at the microcredit summit held in Dhaka in 2004. Therefore, it is crucial that microloans be provided to the poor on acceptable interest-free terms (qard hasan). This can be achieved by integrating microfinance with zakat and waqf institutions. For those who cannot afford the cost of microfinance, it is necessary to develop Islamic RPU models and financing models based on sale and lease, not only eliminating interest but also preventing the abuse of credit for personal consumption.

Another challenge facing microfinance is the insufficient resources available to microfinance institutions. This problem can only be addressed through restructuring the microfinance sector and integrating it with commercial banks. Commercial banks typically do not provide loans to small borrowers due to the higher risks and costs associated with such financing. Therefore, it is important to reduce their risks and costs. This can be achieved, in part, through subsidies from zakat and waqf funds for those borrowers eligible for zakat.

Islamic finance has the potential to minimize the severity and frequency of financial crises.

Thus, we see that Islamic finance has the potential to minimize the severity and frequency of financial crises by addressing the main shortcomings of the conventional system. It imposes stricter discipline within the financial system, requiring lenders to share in the risks. It links the expansion of lending to the growth of the real economy, providing loans for the purchase of real goods and services that the seller owns and the buyer desires. It also requires lenders to assume the risk of default by prohibiting the sale of debt, thereby incentivizing them to more carefully assess risks. Furthermore, Islamic finance can also reduce the problem of subprime borrowers by providing them with loans on acceptable terms.

Reforming the traditional financial system

Because the structure of the conventional financial system has existed for a long time, it would be too much to expect the international community to embrace the radical structural reforms called for by Islamic finance. However, adopting certain elements of the Islamic system, which are part of the Western legacy, will inevitably ensure the health and stability of the global financial system.

These elements include:

• It is necessary to increase the share of equity financing and reduce the share of debt financing.
• The need for lending should be limited to operations in the real sector, which will ensure that lending volumes change in line with the growth of the real economy and eliminate destabilizing speculation and gambling.
• It is necessary to control the level of utilization of borrowed funds so that the loan does not exceed the borrower’s ability to repay it.
• Whenever debt instruments, and in particular CDOs (collateralized debt obligations), need to be sold, full transparency regarding their quality must be ensured so that the buyer clearly understands the transaction they are entering into. It is also advisable to provide a right of recourse for the end buyer to encourage the lender to be more diligent in underwriting the debt.
• While using CDOs to protect a creditor from default is not dangerous, care must be taken to ensure that swaps do not become betting instruments. Their protective role should extend only to the original creditor and should not affect other swap buyers seeking to profit from the debtor’s default. To this end, the derivatives market must be properly regulated to eliminate any elements of gambling.
• All financial institutions, not just commercial banks, need to be properly regulated and supervised to ensure they remain stable and do not become a source of systemic risk.
• Certain measures must be taken to create opportunities for subprime borrowers to receive affordable loans for homeownership and microenterprise start-ups. This will help protect the financial system from a crisis triggered by widespread default by such borrowers.

Adopted by the Majlis al-Ummah

«____» ___________15__ Hijri

Approved by Majlis al-Da’wa

Approved by Majlis al-Ulema

Signed by the Caliph on «___» ____________15__ AH

            We, the Muslims of the Earth, have accepted this Basic Law on the re-establishment of the Caliphate as a form of development given to Muslims by Allah, guided by the following principles:

• Hope for just rule,
• Belief in divine providence and the Day of Judgment,
• Power rests on consent,
• The truth was given last to Muslims,
• The highest sovereignty belongs to Allah,
• The understanding of the Quran changes while the fundamentals remain unchanged,
• Sharia gives birth to new forms,
• The Caliphate is the natural state of Muslims.

Part of this Basic Law is the Act of Establishment of the Khilafah.

Comment:

The Preamble of the Fundamental Nizam of the Khilafah consists of the Preamble itself and the Act of Establishment of the Khilafah. This Act is part of the Nizam and reflects the establishment of the new Khilafah, but does not contain provisions for the structure of the country. The Preamble states that the Khilafah was established in the manner prescribed by Allah and stems from the very essence of Islam as a world religion. Only this path allows for the construction of a state truly for the benefit of Muslims. The Khilafah acts as the core of Muslim civilization, not encompassing all Muslim states, but the missionary role of Islam presupposes its spread throughout the planet in accordance with Islamic concepts.

The principles set forth in the Preamble are not principles for the construction of a state, but rather principles for the construction of an Islamic society. This is their fundamental difference from the principles of state organization. The Preamble lists the following among the principles of society and civilization:

• Hope for just governance.

Comment:

This principle expresses the Muslims’ faith in justice and happiness for all who are united in the political union of the Caliphate.

• Belief in divine providence and the Day of Judgment.

Comment:

The Day of Judgment expresses the measure of responsibility of the Muslims themselves and their rulers, and expresses the very essence of Islam.

• Power rests on consent.

Comment:

Muslims recognize the authority of the state by virtue of their internal moral consent to the actions of the Caliphate, and this legitimacy is decisive in the relations between Muslims and the highest organs of the Caliphate.

• The truth is given last to Muslims.

Comment:

The truth of the Revelation was given last to the Muslims through the Prophet, and therefore Muslims consider it the only correct one for themselves.

• Supreme sovereignty belongs to Allah.

Comment:

Man is Allah’s vicegerent on Earth, and rulers are the best and most virtuous representatives among humanity. Supreme sovereignty belongs to Allah, and He alone has the right to guide Muslims on the path of development.

• The understanding of the Quran changes while the fundamentals remain unchanged.

Comment:

This principle signifies the immutability of faith given once, but the variability of the thinking of people of their culture, in accordance with which political life is built; neglect of tradition and heritage causes grave consequences.

• Sharia gives birth to new forms.

Comment:

Sharia, as the highest law given by Allah for the initial establishment of Truth, can give rise to new forms in accordance with new historical times, but only with the consent of all Muslims and the highest spiritual authorities.

• The Caliphate is the natural state of Muslims.

Comment:

The Caliphate is a natural state for Muslims, developing and existing within Islam and the Ummah.

Chapter 1. Basics of the structure.

Comment:

            Chapter One examines the most important issues of the establishment and development of the Caliphate as a Muslim state. Its construction is global in nature, in terms of its missionary role and good-neighborly cooperation with the international community. The first chapter takes precedence over the others, both in its position and in its meaning. It is the beginning of the Islamic state of the Caliphate. The first chapter embodies all the achievements of Islamic law and the aspirations of Muslims. By changing it, the entire meaning of the Fundamental Law is altered.

            The placement and structure of the first chapter reflect the achievements of human thought and the spirit of Islam. The first chapter reflects the entire contemporary development of Islamic political and legal thought and the most fruitful contributions of Western scholars, who are equal in creative force to Islamic scholars. The further development of Islamic constitutional and legal theory will be reflected primarily in the first chapter of the Fundamental Law.

Islamic state law is a system of legal norms, the possible implementation of which is built in an Islamic state, embodying the spirit of Islam as the Revelation of God, on the basis of which a unified system of state institutions of the ummah is built, guided by the path of God by the will of Muslims and their leaders for better governance in the united family of the ummah as the duty of every Muslim.

Islamic administrative law is a system of legal norms that regulates relations between Muslims and governing bodies regarding the participation of Muslims in government and in connection with the provision of state services for the protection and implementation of citizens’ rights.

Islamic civil law is the system of legal norms governing the economic and private life of Muslims in an Islamic state, based on the Islamic worldview.
Islamic judicial law is the system of legal norms governing the judicial system of an Islamic state, the right to legal proceedings in the state’s courts, and the procedure for executing court decisions.

Islamic criminal law is a system of legal norms that regulates relations related to the protection of the Islamic state and the ummah from illegal attacks.

Islamic international law is a system of legal norms that regulates relations between the states of the Islamic world and the Ummah as a whole with other civilizations and peoples, according to the doctrine of which relations between the states of the Islamic world should be equal and allied.

What is the concept and what can Islamic modernism offer in the field of Islamic statehood?

The developments include the concept of Islam as a legal Islamic social state for all citizens, built on the principles of respect for the rule of law, protection of the rights of national minorities, observance of human rights, democratic governance, and the delegation of power to communities. This concept envisions Sharia as a dynamically changing legal system in accordance with the doctrine of historical time.

The Islamic form of government is a broad set of views held by Islamic scholars and clergy on the structure and role of the Islamic state, its relationships with other states, and the interaction of Muslims and national minorities within such a state.

Sharia law is a system of governance based on the dogmatic application of Sharia law as an immutable system of law, in principle not subject to any change. Any such changes are declared innovations (bid’ah) and are not subject to compliance. Such a state is extremely rigid and quickly stagnates. It is inherently hostile to modernism.

Changes to Sharia may be based on the following principles:

1. The doctrine of historical time assumes that different norms operate differently at different times, meaning that not all Sharia norms are in effect simultaneously. It is important to understand that many norms were developed so that Islam would be accepted by a specific nomadic society of Arab Bedouins in Arabia and thus begin to spread.

2. The opinion of Islamic scholars, not the Islamic clergy, is decisive. The clergy cannot convey new Revelation before the Day of Judgment, but must serve only the practice of worship and the observance of religion.

3. The decision is made by the representative body of Muslims, expressing the general consent of Muslims to the changes by electing representatives to the Majlis al-Ummah.

The following mechanisms of change can be identified in Sharia.

The first group of concepts is positive.

1. The doctrine of historical time, according to which different norms of Sharia operate differently at different historical times and may die out due to historical progress.

2. The concept of social values, according to which changes in Sharia are possible through the adoption of social laws, that is, rules established by society itself.

3. The Muslim doctrine of the common good, according to which a norm should not be enforced if it violates the principle of the common good. A norm should not be enforced for the sake of a norm.

The second group of concepts is negative.

1. The concept of the need for innovation. It is impossible to deny social change and the resulting changes in legal norms while demanding strict adherence to inherently dead norms.

2. The doctrine of the possibility of interpreting legal norms. The «gates of ijtihad» must be reopened and provide scope for Islamic political and legal thought.

The Islamic World Order is a concept promoted by Islamic states for equal relations with Western civilization. The concept is based on Islamic solidarity—the unity of Islamic peoples on the global stage. Relations between Islamic states must adhere to the principles of mutual respect and non-interference.

The Islamic revival is a pulsating and difficult process of Muslims becoming aware of their political identity and developing a unified doctrine for building an Islamic democratic state as a benefit for all Muslims in the lands of Islam.

Islamic development is presented in the theoretical concept of Islamic modernization and the practical concept of Islamic modernism.

Islamic modernization is a concept of changing the political institutions of Islamic states and transforming them into Islamic states based on the righteous rule of leaders and Sharia as the law of Allah, understanding Sharia as a dynamic system of changing legal norms, and not a frozen framework of law.

Islamic modernism is a concept of a path of change by universal consent of Muslims based on the opinions of Islamic scholars and the decisions of Muslim representatives.

Classical Islamic political and legal doctrine—a system of views and ideas about the Islamic state, a coherent doctrine that emerged in the Islamic world by the 14th century and remained unrevised for a long time—consisted of the necessity of the existence of only one truly Islamic state, the Caliphate, as the home of all Muslims on Earth. All other states were considered temporary on the path to the Caliphate. Sharia law, without any innovations, was recognized as the primary source of law.

Modernist Islamic political and legal doctrine is a system of views and ideas about the Islamic state, which has been the subject of heated debate and ideological clashes since the second half of the 20th century, the main postulate of which is moderation in the political and legal practice of Islam, recognition of the need to build nation states within the Islamic world, and the need for pluralistic coexistence of various sources of law.

The jihadist or Islamist, or Salafi political and legal doctrine is a system of views and ideas on the practice of building an Islamist (jihadist) state among fundamentalists, which has developed into a rigid and holistic doctrine that does not tolerate criticism, the meaning of which is to postulate the armed path of creating a jihadist state as the only correct path in the conditions of “rotten pro-Western regimes in the Islamic world” and the impossibility of building it through a change of political power in elections in Muslim states that rely on the support of the West.

Fundamentalist political and legal doctrine is a system of views and ideas on the theory of building an Islamist (jihadist) state, which has evolved into a rigid and coherent doctrine that brooks no criticism. Its essence lies in Islamism as a global ideology for building an Islamist state anywhere in the world where there is an Islamic community, based on an extremely strict understanding of Sharia and the proclaimed ideal of the state of the early caliphs. Essentially, this is the construction of a totalitarian religious state, where Islamism (jihadism) will replace the global messianic ideology (analogous to communism or fascism).

Part 1. Beginnings of development.

Comment:

The Caliphate is a global project of the Muslim world, the duty and responsibility of every Muslim to build a better and more just society on Earth in the House of Allah, according to the laws of Allah for a righteous life.

Levels of power organization in the Caliphate:

1. The supreme authority of the Caliph with the blessing and support of the Sheikh-ul-Islam.

2. Union authorities (executive, judicial and representative body of parliament).

3. Territorial organization of the union authorities.

4. Authorities of the federates (members of the union).

5. Territorial communities of Muslims.

Imamate is a less significant, predominantly Shiite global project of an Islamic state headed by an imam – a religious leader from the clergy, based on direct religious guidance of Muslims.

Islamic political and legal doctrine is the doctrine of fiqh (Islamic law), the organization of political power and institutions of Islamic society built according to the laws of Allah.

Statehood is the essence of a developed society and, at the same time, its property; the creation of a political structure for the management of social affairs and the regulation of social relations in a given society.

The state is a system of political institutions of a public nature for organizing the social structures of society and regulating public relations.

An Islamic state is a system of political institutions in an Islamic society based on Sharia as the law of Allah, in which power is of an Islamic nature, the rights of Muslims in such a state are protected in terms of religious freedom, and foreign policy pursues a line towards the creation of an Islamic world order.

Islamic statehood is the development of a dynamic system of political foundations of Islamic society in a time perspective.

Islamic civilization is a system of cultural and historical development of Islamic society, possessing unique values and based on the Revelation of Allah.

Elements of the Islamic project:

1. The Caliphate as a worldwide Islamic state for all Muslims.

2. The Caliphate as the dream of every Muslim about a righteous life on earth according to the laws of Allah.

3. The Caliphate as the core of Islamic civilization in the community of other world civilizations.

4. The Caliphate as the guardian of the Sharia to ensure compliance with the laws of Allah.

5. The Caliphate as a place for the development of the Islamic world.

            Part one of the first chapter is dedicated to the beginnings of the development of the Muslim community—the ummah—in a human society of its own kind. This section is programmatic in relation to the rest, even in this chapter. This section allows Muslims of the Caliphate to define themselves through the spiritual connection of each Muslim with Allah and the forms of Muslim existence on Earth.

            This section allows us to speak of the Caliphate as a completely independent tradition of governance, based on faith in Allah and the recognition of His monotheism—tawhid. This faith gives rise to new creative achievements by Muslim scholars, who constitute the pride of the ummah. The best mujtahids wrote the norms of the Caliphate, driven by a sense of knowing Allah and the best way to follow the path He showed them.

Basic characteristics of the Caliphate and Imamate:

1. Representation from the land, that is, territories

The Caliphate denies the union of peoples; there can be no representation of peoples, there can only be representation of states as members of a federation.

The Imamate denies any representation of territories, “the Imam always knows best.”

2. Representation of Muslims in the Majlis

The Caliphate relies on the representation of Muslims in the Majlis al-Shura, since every Muslim is equal by birth to the Caliph, the Caliph is only the best political leader, chosen by consent.

The Imam does not need instructions from Muslims to guide the Ummah; he has been granted knowledge by virtue of his holiness and wisdom.

3. The essence of supreme power

The Caliph does not possess divine wisdom, he only rules with the consent of Muslims in alliance with the Sheikh ul-Islam, he is simply the best political leader of Muslims.

The Imam possesses divine will, since he has known the Revelation and is the conductor of the will of God on Earth.

4. The likelihood of construction on Earth before Judgment Day

The Caliphate is the duty of Muslims to build it before the Day of Judgment, since the spiritual tradition of the Caliphate will never be interrupted until the Day of Judgment.

Imamate as the final and global project is possible only on the Day of Judgment, when the hidden Imam comes, but this does not mean that there cannot be temporary Imamates, it is just that the global final Imamate as the final truth is possible only on the Day of Judgment.

Article 1.

            The Caliphate continues and constitutes itself as a federal Islamic legal, social, and democratic state of Muslims.

            The Caliphate is a union of sultanates in various forms of organization of power.

            The Caliphate cannot be interrupted as long as Muslims remain faithful to their faith in Allah.

Comment:

            The first article of the Fundamental Nizam establishes the Khilafah as a federal Islamic state governed by the rule of law, social development, and democracy of Muslims. First and foremost, it must be noted that the first and new Khilafah is precisely a state, that is, a new evolutionary stage in the development of human society, created thanks to the Truth of Revelation conveyed to Muslims. This state was created for Muslims, for their benefit and prosperity on Earth, and it continues its development. However, this also imposes special responsibilities on the rights and freedoms of non-Muslims within the Khilafah.

            The Caliphate is a union state of all Muslim peoples within its borders. When drafting the Basic Law, the Constitutional Commission expressed the view that a regionalist state was possible, but for the common good, it was decided to follow the best examples of mujtahid doctrine.

            The Caliphate is an Islamic state not only in the sense that it is continuous for Muslims, but also in the sense that it expresses the spirit of Islam, the law of Allah for Muslims, and the Muslim understanding of it as it was given to people. The Islamic character is expressed in the entire existence of the state and embraces Muslims.

            The Caliphate is a state governed by the rule of law, adhering to Sharia. No one may violate Sharia, and no one is permitted to do so. Only the Majlis al-Ummah can change the human understanding of Sharia. Sharia is the highest criterion for evaluating the performance of statesmen and the highest standard for judges.

            The Caliphate identifies itself as a social state, where duty permeates everything. Everyone helps everyone else with the help of the state. Family protection, motherhood and childhood, pension provision, youth policy, consumer protection, cultural and scientific benefits, and employment are the main pillars of the Caliphate’s social policy.

            The Caliphate is a democratic Muslim state where everyone has the right to vote from the age of 18 and has access to public service in accordance with the law. Supreme sovereignty belongs to Allah, but on Earth, until the Day of Judgment, He has entrusted it to Muslims, and the source of authority in the country is the Islamic nation alone.

            The Caliphate is postulated as a union of sultanates, that is, Muslim peoples within a single state. The federations or allies were former Muslim nation-states, and today they are federated peoples, forming their own territorial and administrative parts of the Caliphate—sultanates. The Caliphate is not a treaty, but a constitutional federation—a union, and secession of a sultanate from it is not permitted. The exception is decisions of the Majlis al-Ummah, adopted through a special procedure.

            The Caliphate stems from the very essence of the Islamic faith, and it exists as long as Muslims exist. Even an hour of grave tribulation for the ummah may only temporarily interrupt the thread of tradition, but it will inevitably be restored. As long as Muslims remain firm in their faith and the strength of their faith remains unwavering, the Caliphate will endure.

What is the difference between the concept of Imamate and Caliphate?

There is a widespread cliché in Russian science, migrating from one academic textbook to another, that the Imamate belongs to the Shiites, and the Caliphate to the Sunnis.

The existence of a Caucasian Imamate among the Sunnis of the North Caucasus is generally overlooked. And how could there be imams of the Caucasus, anyway?

Imamate is not just a religious leader, the highest spiritual figure, it is a person who possesses leadership by virtue of the knowledge of Revelation better than all equals among Muslims, since he possesses the corresponding spiritual qualities, including the ability to govern, understand the Quran, piety, and so on.

The Caliph is not just a secular figure, but the highest elected figure by the consent of all Muslims; he is the personification of the unified will of the Ummah to rule.

The Caliphate means the construction of a home for Muslims on Earth, a protector of Islamic civilization, and not just the fact that the Caliphate will be restored on the Day of Judgment, that is, the spiritual Caliphate in the hearts of Muslims is complemented by an earthly political one.

Imamate means the collective service of Muslims to the common goal of worshiping Allah in their affairs, that is, the state guards and monitors, guiding.

The main difference between the Caliphate and the Imamate is not in the name of the highest official, but in the function of the state: in the Imamate, the state monitors and protects, and in the Caliphate, it helps, plus in the Caliphate there is a separation of secular and spiritual authorities, and in the Imamate there is unity, but this is a consequence.

Also important is the question of the concept of Mahdi as the hidden Imam.

This concept is again not unique to the Shiites. However, it occupies different places in the Caliphate and the Imamate. The Mahdi is the messiah, the preacher of truth on the eve of the Day of Judgment. While in the Imamate the Mahdi replaces the imam, in the Caliphate he is simply the chief religious leader, not even superseding the authority of the Sheikh ul-Islam.

That is, the Mahdi in the Caliphate is like Sergius of Radonezh for the Russians or Gazi-Khadji for the Chechens, a person possessing the highest religious authority, located outside the official hierarchy, like a beacon of truth.

The Mahdi takes the place of the Imam in the Imamate because he must use the power of the state to persuade the wavering and doubting, akin to the Soviet educational system. In principle, the Imamate can be viewed as a state of ideological utopia. Therefore, the Caliphate can be viewed as a secular state, albeit built on shared religious foundations as the self-identification of the Caliphate’s citizens.

Article 2.

            The Caliphate is the eternal duty of every Muslim, an honor and a responsibility to obey the will of Allah.

            The connection with the Caliphate is never broken and everyone is born a Muslim.

            The Caliphate is the highest unity of Muslims before Allah.

Comment:

Is it possible to establish a caliphate before the Day of Judgment or will it only be re-established on the Day of Judgment?

The Caliphate implies the spiritual and political unity of the Islamic peoples on Earth in a single state, the Caliphate, as the duty and obligation of every Muslim. It is not enough to maintain fidelity in one’s soul; there are also public affairs and a social duty that compel one to fulfill the predestined task of building a just and better society for Muslims. Only the Caliphate can be a home for Muslims, protecting them from other nations. A Muslim cannot renounce social responsibilities in his or her family and personal life.

            Following and supporting the Caliphate is the eternal duty of every Muslim. It is eternal, as the existence of the Caliphate, even if it temporarily ceases, is inherent in the nature of Muslims. A Muslim’s duty is absolute, but relative in historical times, as rebellion against the ruler and the Caliphate itself are not the same thing.

The connection between each Muslim’s political and legal (citizenship) and spiritual affiliation is never severed. Every Muslim can appeal to the Caliphate for protection, and it will be granted by right of faith. The Caliphate embraces every Muslim and assists them in everything. The Caliphate strives to help both the deserving and the weak.

            The Caliphate stands before Allah as the supreme unity of His creation on Earth. Only unity allows Muslims to ensure their happiness and well-being on Earth until the Day of Judgment. The Caliphate is all-encompassing and encompassing for every Muslim.

Caliphate Concepts:

1. statehood

The Caliphate is a modernist doctrine of a unified Islamic state as the duty and obligation of every Muslim, based on the principle of «one heaven — one truth — one faith — one caliph.» This state derives from the sovereignty of Allah over Muslims, the election of the caliph by the consent of all Muslims, the federal nature of the union statehood, and Sharia in its updated version.

2. supreme power.

The Caliph is the servant of God over the slaves of God, the messenger of God on Earth, chosen by Muslims by right of leadership qualities and wisdom from the Quraysh clan, possessing secular political power on behalf of the Caliphate in a single union with the Sheikh ul-Islam.

The Caliph is a temporary ruler because the Caliphate itself on Earth extends until the Day of Judgment, when it will step into eternity. Therefore, a Caliphate as a unified state is possible even before the Day of Judgment, while a global Imamate can only emerge on the Day of Judgment.

3. representative body

The caliph’s authority rests on the representation of Muslims in the Majlis al-Shura. The caliph and this body complement each other within their respective competencies. The caliph cannot rise above the Majlis al-Shura, as all Muslims are God’s vicegerents on Earth, and the caliph is God’s messenger, that is, first among equals. The caliph does not possess divine knowledge, but wisdom in matters of state, and the sheikh ul-Islam cares for the souls of Muslims as the most enlightened among the clergy, but not by virtue of Revelation.

4. government.

The government is temporary, that is, it carries out duties until the Day of Judgment as the administration of the caliph; all government bodies are departments and are headed by acting emirs of the departments.

5. device.

The Caliphate does not erase the differences between peoples, although it denies the federation of peoples; the Caliphate is a constitutional union of Islamic states.

6. support of the state.

The Caliphate relies on the bureaucracy, the army and the clergy as the pillars of the state.

Concepts of the Imamat:

1. statehood.

Imamate is the doctrine of the Islamic state, which is based on the concept of the Imamate as the religious leadership of the head of state, power is distributed from the clergy, the state prepares Muslims for the future life under the shadow of a single leader.

2. supreme power.

The Imam is a divine substance on Earth, the hand and words of the Lord for the best governance over the souls of Muslims, the unlimited religious leader of the Ummah, possessing authority by virtue of Revelation.

However, this concept of power concerns the global Imam on the Day of Judgment, but there may also be temporary Imamates as preparation of Muslims for such an Imamate.

An Imam in a temporary Imamate (for example, the Imamate of Shamil) is an indisputable and unlimited religious leader of a Muslim state, an Imamate, possessing the wisdom of governance and military qualities, leading Muslims along the path of serving God.

3. representative body.

In an imamate, whether temporary or global, Muslim representation as the people’s authority is not necessary, as the imam possesses an enlightened essence and has divine knowledge of how to govern Muslims. The main principle is «the imam knows best as the voice of God.»

4. government.

In the Imamate, the government exists as an advisory body, the Divan, made up of officials closest to the Imam.

5. device.

The Imamate does not divide anyone; the entire Imamate territory is divided into uniform provinces based on the criteria of efficiency and ease of governance. For the Imam, all Muslims are equal in their faith and there is no distinction made between any two.

6. support of the state.

The Imamate relies on a new class of political and religious leaders, headed by the Imam, who head the state apparatus, the army, the clergy, and all state governing structures (that is, the religious nobility, obligated to the Imam).

Article 3.

            The Caliphate by its very nature expresses the Islamic spirit and is the home of Muslims on Earth.

            The Caliphate is based on the continuous tradition of Islamic statehood in the souls of Muslims.

            Every Muslim obeys as long as the rulers of the Caliphate follow Islamic laws.

Comment:

            The Caliphate is the very creation of Allah, as it was established according to His laws as a result of the development of Muslims. The Caliphate is an expression of the Islamic spirit, understood as a call and impulse of Muslims to faith, its purity and perfection. The Caliphate was established by the will of those who followed the Prophet, and it was revived by the will of all Muslims and the best of its representatives who stood at its helm.

            The Caliphate has never ceased to be a part of Muslim consciousness. Many generations of Muslims dreamed of the day of the Caliphate’s revival and restoration. It was a day of great joy for all the faithful. No one has ever succeeded in conquering and subjugating the Muslim world, which retained its faith and creative potential.

            Every Muslim is obligated to obey as long as the rulers of the Caliphate adhere to Islamic law and do not deviate from it in their actions. If this happens, Muslims first point it out. Then comes a change, and in times of crisis, a popular uprising to install the most worthy rulers. Every Muslim has the right to wage jihad against rulers who pursue anti-Islamic policies.

Article 4.

            The Caliphate was created for the well-being of Muslims and the knowledge of Allah until the Day of Judgment.

            The Caliphate is eternal as Allah himself for Muslims and nothing can bring down the Caliphate.

            The Caliphate is the heritage of Muslims and their highest value.

Comment:

Founding of the Caliphate:

1. The Doctrine of One Destiny – All Muslims have one destiny to obey the will and laws of Allah throughout their lives.

2. The doctrine of establishing a state before the Day of Judgment – Muslims cannot live under the rule of non-Islamic rulers and non-Islamic states, such a life is contrary to the calling of Muslims.

3. The doctrine of the union nature of the Caliphate – the Caliphate acts as an indissoluble union of the Muslim peoples of a single ummah.

4. The doctrine of the eternity of the Caliphate – the Caliphate is indestructible; even if in reality it ceases to exist for some reason, it will still be recreated again.

5. The doctrine of elective power – the caliphate is based on the election of all government officials at all levels, and only the caliph must be a Muslim.

6. The Doctrine of Unconditional Obedience – All Muslims are obliged to obey the authority of the Caliph as the elected leader of all Muslims.

7. The Doctrine of Consent – the Caliphate will be re-established by the consent of all Muslims and the unified will of the Islamic world, based on the unified choice of Muslims.

8. The doctrine of the light of Islam – the Caliphate, by its very existence, carries the light of Islam, serving as a single home for all Muslims.

9. The Doctrine of Invisible Connection – Every Muslim from birth to death is connected to the Caliphate through a common duty of assistance and obedience.

10. The doctrine of the land of Islam — there can be no non-Islamic states in the lands of Islam, Muslims must live under the care of Islamic authority.

            The Caliphate was established by Muslims by the will of Allah for the well-being of Muslims and the knowledge of Allah before the Day of Judgment. The highest goal of the Caliphate is the well-being and correct path of Muslims so that they may enter Paradise. This goal cannot be revised or abolished by anyone. The Caliphate strives to support Islamic clergy and religious buildings, as well as Islamic educational institutions.

            The Caliphate, by the very nature of things, was created eternal in the minds of people and emerged with the advent of Truth among Muslims. The Caliphate will always exist as long as there are Muslims.

            The Caliphate is the legacy of Muslims as a historical entity. The new (Second) Caliphate was only restored and recreated, taking into account the new Muslim understanding. The Caliphate is the highest value for Muslims, as only it can ensure the peaceful development and prosperity of Muslims.

Article 5.

            The Caliphate is based on the consent of all Muslims; power rules by consent and according to Sharia law.

            The Caliphate is the symbol of all Muslims in its highest manifestation.

            The unity of the Caliphate cannot be subject to revision.

Comment:

            The Caliphate is based on the consensus of all Muslims that this is the most optimal form of their existence in the world, given by the Creator. This consensus is complete and comprehensive. Muslims gave their consent, and by their unanimous will, the Caliphate was re-established. Authority in the Caliphate rests on the consent of Muslims and derives from it.

            The Caliphate is a symbol of all Muslims, as it unites them everywhere. The symbol signifies that the Caliphate potentially extends to all Muslims, to all its citizens, serving as the highest earthly good for Muslims.

            The unity of the Caliphate cannot be subject to revision, and any attempt to do so, according to the laws of the land, is a grave crime against Muslims. The Basic Law allows for the Sultanate to secede from the Union by decision of the Majlis al-Ummah, but the abolition of the Caliphate cannot be decided by any Muslim, even in the event of grave crimes committed by Muslim rulers.

Article 6.

            The Caliphate is a state governed by the rule of law, based on the Quran and Sharia, and based on the Muslim understanding of the world.

            The traditions mentioned in the Quran cannot be subject to revision.

            The role of Sharia cannot be revised; not everything is given to Muslims to establish.

Comment:

            The Caliphate is a state governed by the rule of law, established as a result of the Quran and Sharia. All actions of the Caliphate’s government are bound by law and justice, based on the law. A state governed by the rule of law means the rule of law, and for Muslims, this means Sharia as the ideal code. The Caliphate arose as both the result of law and its cause, and this connection is inseparable.

            The tradition of the Quran cannot be subject to revision—this demonstrates that the very essence of tradition cannot be violated. Muslims’ new understanding of Islamic state and legal matters allows them to develop dynamically and look to the future with hope. This is precisely what enables them to lead the world and understand the essence of Allah.

            Sharia, as an ideal code, is amended only by the Majlis al-Ummah and takes precedence over all other laws, as the Caliphate is a state governed by the rule of law. Sharia reform is achieved through tradition, and this principle cannot be subject to revision. The role of reforming Sharia makes it possible to preserve the fundamental legal mechanisms of Islam in modern times.

Article 7.

            The Caliphate is a social state created for all Muslims.

            The Caliphate takes care of every Muslim, everyone is under the protection of the authorities.

            Family is the highest value in the Caliphate.

Comment:

            The Caliphate is developing as a social state, whose highest value is social peace and the well-being of Muslims. A social state leads to the recognition of a reasonable pension system, employment policies for youth and the unemployed, access to cultural benefits, and so on. A social state assumes obligations to society to provide assistance to everyone in times of need.

            The Caliphate cares for every Muslim, wherever they may be. The connection between the Caliphate and Muslims is natural and everlasting. The Caliphate is obligated to provide assistance, demanding nothing in return except fidelity to the spirit of Islam. The Caliphate was created as a state for all Muslims and for all Muslims.

            Family is the highest value in the Caliphate, and caring for the family is the foundation of any social progress and well-being. The Caliphate pursues a policy of supporting motherhood and childhood, paying benefits, building free hospitals, and caring for street children.

Article 8.

            The Caliphate constitutes itself as a democratic state whose values are freedom and order for all.

            The provision on democracy cannot be subject to revision.

Comment:

            Article 8 further establishes that the Caliphate is a democratic state. This repeated use and emphasis on the concept of value is no coincidence. The repetition underscores the fundamental nature of this provision, while the concept of value points to an axiologically moral aspect. The Basic Law considers freedom and order to be the values of democracy. Freedom signifies free will before prohibition, while order presupposes orderliness and certainty in legal relations.

            The democratic nature of the Islamic state of the Khilafah cannot be subject to revision, and this categorical prohibition is above the Fundamental Law. No noble intentions can justify the usurpation of power and its seizure, even in times of grave distress for the Ummah. Democracy is the foundation of the Khilafah.

Article 9.

            The political form of the Caliphate is the Islamic consultative representative form.

Supreme sovereignty belongs to Allah, every Muslim is the vicegerent of Allah on Earth.

Comment:

            The political form of the Muslim state is the Islamic consultative representative form. This form derives from the representative government of the consultative Majlis. This form, as noted above, is inherently Islamic, meaning it is only possible in an Islamic state. It is based on the representation of Muslims in the Majlis before the Caliph. This consultative nature means that the Majlis adheres to Sharia and advises the Caliph on the implementation of laws.

            Supreme sovereignty belongs to the Creator of the worlds, but He has endowed it upon Muslims until the Day of Judgment, so that they may consciously choose their path and be held accountable for their sins and virtues. Man is God’s creation, and he follows his destiny, but the choice according to God’s laws remains his. And for this, he is accountable before Allah.

Article 10.

Nizam is based on the indestructible unity of the Muslim nation, a single and indivisible Homeland for all Muslims.

Arabic is the official language of the Caliphate.

The capital of the state is the city of Baghdad.

Comment:

            The Caliphate, as defined in this article, is one and indivisible for all Muslims, the cradle of Muslim civilization and the Muslim world. A priori, the Caliphate is the homeland of all Muslims. The unity of the Muslim nation cannot be dissolved even if any sultanate secedes from the union.

            The official language of the Caliphate is Arabic, the language of international communication among Muslims and the language of the Prophet and his companions. Sultanates have the right to introduce additional official languages within their territories. Linguistic diversity is the foundation for the development of the Caliphate as a union of Muslim peoples.

            The capital of the Caliphate is the city of Baghdad, allocated as a special capital union district with direct subordination to the Caliph, as the seat of the highest organs of power of the Caliphate.

Article 11.

Political parties, in accordance with the principle of political pluralism, contribute to the formation and expression of the will of Muslims and are a fundamental instrument of political participation.

The creation and activities of parties are free, subject to respect for the Basic Law.

Political party budgets must be accessible to every citizen.

Comment:

            Political parties express the will of Muslims through the Caliphate, and their functioning is essential to the country’s democratic system. Political parties are subject to state control. The structure of political parties must be democratic, and their activities must not be anti-Islamic, meaning activities aimed at undermining Islam.

            The formation of political parties is free, meaning that Muslims with a membership of over 100,000 may form a national party, while those with a membership of over 20,000 may form a party within the Sultanate. Non-Muslims may form their own parties or join Muslim parties. In the former case, their membership may reach 15,000 for a national non-Muslim party.

            Political parties’ budgets must be reasonably transparent, and they are required to publish quarterly reports on their expenditures and receipts for party purposes. Every citizen has the right to review the budget of any party registered with the Ministry of Justice of the Caliphate.

Article 12.

The Islamic Armed Forces, consisting of the ground forces, navy and air force, are called upon to guarantee the sovereignty and independence of the Caliphate, to protect its territorial integrity and constitutional order.

Comment:

            This article establishes that the Armed Forces, or Islamic Armed Forces of the Caliphate, consist of ground forces, a navy, and an air force. They are tasked with defending the country in the event of aggression against the Caliphate. The Armed Forces not only guarantee sovereignty but also enable the country’s leadership to pursue an independent foreign policy.

Article 13.

Citizens and public authorities are obliged to observe the Basic Law and respect the legal order.

The Caliphate has the right to restrict the activities of political parties and public associations only through judicial proceedings, provided that they violate public rights and freedoms.

Comment:

            State authorities and citizens have a duty to respect the country’s legal order. Failure to do so entails penalties, including criminal prosecution, depending on the gravity of the offense. This duty applies equally to all parties to legal relations, without exception.

            The second part of this article stipulates that the activities of political parties and public associations may only be restricted by court order. This means that the Ministry of Justice is obligated to file a lawsuit in the event of a violation of public rights and freedoms, and only a court can deny or annul a party’s registration.

Part 2. Principles of the Islamic political system.

Comment:

            Part two of the first chapter is devoted to the role of Sharia in the legal life of the country and Muslims in general, and in their relationship with the Caliphate. This section is important for understanding the legal nature of Sharia and the mechanism for its renewal in Islam. Sharia is the core of the Muslim legal system, and its importance cannot be questioned.

A political system is a set of political institutions and mechanisms of their interaction regarding public interests and the expression of the will of large organized social groups.

The Islamic political system is a set of political institutions and mechanisms for their interaction regarding public interests and the expression of the will of large organized social groups of Muslims in accordance with Sharia and Islamic law. Sharia and Islamic law constitute the constraints of the Islamic political system in relation to the political system in general.

The concept of the Islamic political system represents the fundamental views on the development of Muslims and their life in the Islamic world. Two main concepts of the Islamic political system can be identified. Each is based on principles as the fundamental principles of organizing political power. In the first concept, the principles consist of three components:

Principles of the creation of an Islamic political system,

The principles of functioning of the Islamic political system,

The principles of this Islamic political institution.

The principles of creating an Islamic political system are:

Tawhid,

Risalat,

Ummah.

The principle of Tawhid, as the foundation of the Islamic political system, is the monotheism of Islam and, therefore, the responsibility of every Muslim for their actions and deeds before Allah, including in the political sphere. Allah is unique, and no one can see him. Allah is the God who gave Muslims the truth and faith in him.

The Risalat principle, as the foundation for the creation of the Islamic political system, is the prophecy of the Day of Judgment, and every Muslim must remember this in their actions and deeds, including in the political sphere. The Prophet revealed this prophecy to Muslims and foretold its fulfillment. The end of Muslims’ earthly life will be the Day of Judgment, when Allah will judge everyone and decide on a new life.

The principle of Ummah as the foundation of the Islamic political system means that no one can be excluded from the scope of the Islamic political system; it extends to every Muslim on earth. The Ummah is the worldwide community of Muslims. Nothing and no one can divide Muslims in their quest to know Allah, and this is their highest goal. All Muslims are brothers and friends.

The principles of the Islamic political system, in turn, are principles for the construction of states and interstate relations, pertaining to relations in the international arena. Such a doctrine is the Doctrine of the New Islamic World Order. The New Islamic World Order is a doctrine developed since the early 1960s in the Islamic world. It represents the fundamental views of the Islamic world as a coherent community on the system of international relations as a desirable system of acceptable and permissible behavior for states in the sphere of human coexistence on Earth, as defined by the Quran and Sunnah.

The main provisions of the Doctrine of the New Islamic World Order:

1. The main actors: the ummah (the global Muslim community) and kufr (disbelief in all its forms, which, according to Islam, include, in addition to atheism, all forms of pantheism, idolatry, and so on). The role of Islam, according to Muslim theorists, and the role of kufr are two opposing tendencies in history, and neither has anything in common with the other.

2. The Goals of the Actors. The goals of the Ummah are: the global affirmation of tawhid (the principle of the unity and uniqueness of God); the formation of a world order based on the political doctrine of Islam; the elimination of all forms of violence, oppression, nationalism, and racism in all forms and manifestations; the elimination of kufr from all spheres of life—political, economic, social, cultural, and scientific; the establishment of the principle of justice in all human relations at all levels in the world. The goals of kufr are: the preservation of its dominance, based, according to the Quran, on «oppression,» «harassment,» and «violation of rights.» Kufr ignores Monotheism as the fundamental principle of the universe.

3. The specific nature of relations on the global stage. From an Islamic perspective, religion and politics are inseparable. In this regard, the global space is divided into dar ul-Islam (the territory of Islam) and dar ul-kufr (the territory of kufr).

The first are countries in which the Islamic form of government is ensured, both in law and practice. The second are the opposite of dar ul-Islam, within which a distinction is made between dar ul-ahd (territory of treaty) and dar ul-harb (territory of war).

Dar al-Ahd are countries whose authorities have signed a peace treaty with Muslims, represented by their leadership, and guaranteed them basic rights. Dar al-Harb are countries that have declared war on Muslims; occupied lands of Dar al-Islam; territories in which Muslims are oppressed and deprived of basic rights, where there is no treaty between the population and Muslims defining their relationship and confirming guarantees of the inviolability of life, honor, and property of Muslims; territories within which the preaching of Islam is prohibited; territories from which a real threat emanates from Muslims.

Some modern approaches have begun to modify this distinction, as dar ul-Islam, and often dar ul-kufr as well, have effectively ceased to exist in the sense expressed in the works of early Islamic theologians and jurists, while sizable Muslim communities have emerged within dar ul-kufr. Thus, the concepts of dar ul-Islam, dar ul-harb, and dar ul-ahd, having become intermingled, have at the very least lost their strict geographical dimension.

At the same time, the Islamic concept of world order recognizes the existence of a single international community, regardless of religion. A number of verses in the Quran address humanity as a single community. But Islam’s approach to this community is proactive, as the dissemination of tawhid is a societal, state, and personal religious duty.

4. The main process on the world stage is the affirmation of the principles of Monotheism in all spheres of life, ensuring the true universalism of humanity.

5. The primary means of shaping the Islamic world order is jihad. According to Islamic scholars, in the legal and theological sense, jihad means «exerting strenuous efforts to spread faith in Allah and establish His Word (i.e., the Quran – author’s note) as the highest word over this world.» The use of force, as indicated in fundamental sources of Islamic law, is permissible in this case only for self-defense and in cases where preaching Islam is prohibited.

6. The proposed world order. The establishment of Islam will result in the emergence of a unified global human community based on a «balanced,» «middle» world order that ensures progress, justice, and the welfare of people in both worlds.

7. The fundamental principles of the Islamic concept of world order are the Quran and Sunnah. However, rational methods of ijtihad—istislah, istihsan, qiyas, and ijma—are widely used. An ideology built on this foundation should underpin global society.

Article 14.

            The principles of the Islamic political system are:

• Majlis.
• Shura.
• Caliph.

Comment:

The principles of functioning of the Islamic political system are:

Majlis,

Shura,

Party of Allah,

Caliph.

The Majlis establishes a representative Muslim government for the benefit of democratic governance and the prosperity of Muslims. The Majlis embodies the representation of Muslims on Earth before the supreme authority and their right to determine their own destiny according to the laws of Allah. The Majlis can pass laws binding on Muslims’ earthly lives.

Shura is the principle of consultation in Islam between the caliph and the representatives of the ummah. Consultation presupposes the caliph’s fulfillment of the representatives’ will, for which he is obliged to ascertain their will. The caliph cannot go against the will of the ummah, except in times of grave distress to the ummah and Muslim misguidance, and with the consent of the ulema.

The second concept is simpler and presupposes the existence of general principles for organizing power as a holistic system. These principles include:

The Sovereignty of Allah,

The doctrine of Sharia as a source of law,

The principle of consultation,

Obedience to the Amir,

Conclusion of the baya.

Supreme political sovereignty belongs to Allah, and the ruler is merely His vicegerent until the Day of Judgment. Allah alone can exercise divine judgment and determine the fate of humanity.

Islamic law rests on the doctrine of Sharia as a source of law. It is not precedent, as in the Anglo-Saxon legal system, or statute, as in the continental Romano-Germanic legal system, but rather a doctrinal understanding of law. And it is from this doctrine that the interpretation of law through fatwa by scholars derives as a second source of law.

The principle of consultation coincides with the Shura principle in the first concept. We should only add that this principle is now increasingly approaching the Western understanding of parliamentarism.

Obedience to the Amir as head of state is a necessary condition for the stable development of an Islamic state. The Amir must be obeyed as long as he observes Sharia. Sharia is the ultimate criterion for assessing the fairness of the Amir’s rule.

The relationship between the people and the ruler is regulated by the bay’ah as a constitutional and legal contract. The bay’ah carries all the fundamental responsibilities of the ruler, in addition to the state constitution. Only the bay’ah contains a specific program of action for the ruler and establishes liability for failure to implement it.

Article 15.

            The Majlis establishes a representative government of Muslims for the benefit of the democratic system and the prosperity of Muslims.

            The Majlis embodies the representation of Muslims on Earth before the supreme authority and their right to decide their own destiny according to the laws of Allah.

            The Majlis can pass laws that are binding on the earthly life of Muslims.

Comment:

The Majlis is an assembly, a chamber. If the Shura is understood as a community council, then the Majlis is a representative, decision-making body of state power. At the same time, the Majlis, like the Shura, is a principle of Muslim political life. In its most general form, the Majlis is a body that makes decisions of constitutional and legal significance, or, in other words, the most important decisions on matters of state life. Therefore, the Majlis as a principle is what is known in the Western world as representative government.

The principle of the Majlis, as the operating principle of the Islamic political system, is the representation of Muslims as a whole and as a part before the supreme authority of the Caliph. The Majlis principle includes not only a permanent professional assembly of deputies but also a consultative assembly of emirs in the Majlis al-Amir. The Majlis principle and the Shura principle are one whole, two sides of the same coin; one is unthinkable without the other, and together they form an inseparable whole.

Representation signifies the elective nature of the Majlis as a freely elected parliament, representing Muslims. Violation of this right immediately leads to despotism and tyranny. Violation of this right allows us to speak of resistance to oppression.

The question of the upper house of parliament is interesting. Previously, political and legal doctrine prohibited its formation, as it was based on the territorial principle in a federal state, and federation was considered unacceptable as divisive. All Muslims are united and equal—that’s what was said. Now, views have shifted: all are equal in faith and united in diversity as a whole. It would be most appropriate to compose the upper house from the heads of the sultanates (sultans), thereby ensuring cooperation between the regional and federal authorities. Perhaps this body would allow for the most effective organization of such cooperation.

The Muslim world has been moving towards this principle for a long time, since divinity presupposes the obviousness and self-evident nature of the ruler’s authority, but until this authority has come, it is necessary to be guided by human reason.

Article 16.

            Shura is the principle of consultation in Islam between the caliph and representatives of the ummah.

            Consultations presuppose the implementation of the will of the representatives by the Caliph, for which he is obliged to know their will.

            The Caliph cannot go against the will of the Ummah, except in times of grave calamities of the Ummah and the misconceptions of the Muslims, and he must act only with the consent of the Ulema.

Comment:

What is the Shura principle, and what is it not? The first thing that is obvious is that it is a principle of authority, its functioning, and its development, both in the state and in the Islamic world. More precisely, it is a principle of the Islamic political system, namely, the functioning of the Islamic political system as a system of political and legal coordinates within which Islamic states are situated.

The classical, celebrated understanding of the Shura principle assumes that there is a ruler and a Shura. The ruler is perhaps the caliph or the ruler of an ordinary Muslim country. The Shura is the body representing the interests of the Muslim community, which could be the entire country or the community of all Muslims in the caliphate—the ummah. The Shura principle is translated as the principle of consultation, and this is how it is commonly known. Shura, in turn, means «advice.» The core idea of the classical understanding of this principle is that the ruler is obligated to consult with the Shura when making decisions.

Western scholars pose the question bluntly: consultations are not binding; the ruler can ignore or pretend to take the Shura’s opinion into account. And there is no real oversight mechanism. The very formulation of this question is incorrect. The ruler is the supreme authority, while the Shura is the legislative body. Perhaps it would be more correct to question the Shura’s competence as the parliament of the Muslim nation-state. In that case, the Shura as a principle becomes the Majlis al-Shura as a body.

The Shura principle, as the operating principle of the Islamic political system, postulates that the ruler of a Muslim country, regardless of his or her views, including the understanding of the good of Muslims, is obligated to implement laws passed by the Majlis (parliament) within its jurisdiction and in accordance with the established procedure for the adoption of laws. This understanding is closest to the achievements of global legal thought and allows for a new expression of what was established in classical times. A fundamental renewal of many tenets of Islamic political and legal thought is necessary, and this is precisely what is currently underway.

Part 3. Principles of state organization.

Comment:

Part four of the first chapter defines the principles of the organization of the state, that is, the Caliphate.

The groups of principles governing state organization include political, economic, social, cultural, and security principles. Each group of principles is as important as the others and pertains to its own sphere of regulation, shaping the entire life of the Caliphate.

Article 17.

Political principles of the organization of the Caliphate:

• Ensuring the independence, sovereignty, security and stability of the country; protecting the state system; defending the state from any aggression.
• Strengthening the bonds of cooperation and friendship with all states and peoples on the basis of mutual respect, common interests, non-interference in internal affairs, compliance with international and regional agreements and treaties, and international law, which will lead to the spread of peace and security among states and peoples.
• Rational application of the principle of consultation in accordance with the national heritage and its values, the Muslim Sharia, proven by history and incorporating all the achievements of modern times.
• The creation of an effective system of administrative structure that will guarantee justice, peace and equality of subjects, ensure respect for public order and the observance of the highest interests of the homeland.

Comment:

Among the political principles we can highlight:

• The principle of independent, sovereign and stable development of the country, allowing it to organize the defense of the state and the protection of the state system.
• Peaceful development in the world community with other states, which leads to harmony and cooperation among states.
• The principle of consultativeness means that the Caliph carries out the will of the Majlis al-Shura after consulting with it for the benefit of Muslims throughout the Caliphate.
• The principle of administrative structure, if one can say so, is the principle of its harmony, aimed at combining powers from above and below and their reasonable delegation.

Article 18

Economic principles of organization:

• The Caliphate’s economy is built on the foundation of justice and the principles of a free market economy. Its foundation is constructive and fruitful interaction between the public and private sectors, and its goal is to ensure socioeconomic development, leading to increased production and improved living standards for its subjects in accordance with the state’s master development plan within the framework of the law.
• Freedom of economic activity is guaranteed within the bounds of the law, the public good, and the need to protect the national economy. The Caliphate encourages savings and oversees credit conditions.
• All natural resources and wealth are owned by the state, which protects them and ensures their rational use to maintain national security and strengthen the national economy. Concessions for the development of any mineral resource are granted only in accordance with the law and for a limited period of time to ensure national interests.
• State property is inviolable. The Caliphate must ensure its protection, and the subjects and residents of the country must protect it.
• Private property is protected; restrictions on the right to dispose of one’s property may only be imposed by law. Alienation of private property is permitted only when necessary to preserve the public interest and in cases provided by law. The law clearly defines what property may be alienated and the procedure for compensation for it, provided that such compensation is fair.
• The right to inheritance is determined by Sharia.
• Confiscation of state property is not permitted; confiscation of private property is possible only by court order in cases provided for by law.
• Taxes and government fees should be imposed on the principle of fairness and serve the purposes of developing the national economy.
• State taxes may be introduced, changed, or abolished only in accordance with law. Exemptions from all or part of these taxes are granted only in cases provided by law. Changes to the amount of a tax, fee, or duty, regardless of type, cannot be retroactive.

Comment:

            Economic principles can be formulated as follows:

• The principle of justice in the development of the national economy based on full cooperation of all sectors of the economy.
• The principle of freedom of economic activity within the framework of the law, when everything that is not prohibited is permitted for the benefit of all citizens of the Caliphate.
• The principle of state ownership of natural resources for their rational use as a national treasure.
• The principle of protection of property, which is expressed in the impossibility of confiscation of state property and confiscation of private property solely on the basis of law for public purposes.

Article 19.

            Social principles of the organization:

• Justice, equality, and equal opportunities for all form the basis of society and are protected by the Caliphate.
• Mutual assistance and compassion for one another unite citizens; strengthening national unity is their duty. The Caliphate prevents actions that lead to incitement of discord, unrest, or the violation of national unity.
• The family is the foundation of society; the law determines the ways of protecting it and upholding its legality, strengthening family ties and values, protecting its members, and creating the necessary conditions for increasing the family’s wealth and opportunities.
• The Caliphate guarantees support for citizens and their families in emergency situations, including illness, disability, and old age, in accordance with the social security system. The state promotes social cohesion and the overcoming of the consequences of disasters and calamities.
• The Caliphate promotes public health through disease prevention and treatment and the fight against epidemics. It strives to ensure the health of every subject and encourages the construction of private hospitals, clinics, and health centers under state supervision in accordance with legally established standards. The state promotes environmental protection and its protection from pollution.
• The Caliphate issues laws regulating the status of employees and employers, defining their relationships. Every citizen has the right to engage in any activity they choose within the law. Coercion to perform certain activities is permitted only in accordance with the provisions of the law, in order to perform public service for fair pay.
• Civil service is a service to the fatherland, and it is entrusted to those who serve in it. Civil servants, through the performance of their duties, serve the public good and society. Citizens are equal in their rights to hold public office in accordance with the conditions determined by law.

Comment:

The system of social principles looks like this:

• The principle of justice and equality for all in social development, which is the main principle of the state’s social policy.
• The principle of mutual assistance with the assistance of the state and mutual respect.
• The principle of the supreme value of the family for the benefit of social development.
• The principle of assistance in emergency circumstances, which include: old age, disability, injury, loss of home, and so on.
• The principle of social peace in relations between employees and employers through the mediation of the state.
• The principle of equal access to public service and high duty of service to the Fatherland.

Article 20.

            Cultural principles of the organization:

• Education is the basis for the progress of society; it is under the patronage of the state, which strives to develop and improve education.
• Education aims to raise the general cultural level, develop scientific thinking, and foster a desire for knowledge. Education aims to meet the demands of socioeconomic development and create a new generation strong in spirit and morality, proud of their nation, homeland, and heritage, and ready to defend their achievements.
• The Caliphate guarantees universal education and works to eradicate illiteracy. The state encourages the establishment of private schools and colleges under state supervision in accordance with the provisions of the law.
• The Caliphate protects the national heritage, encourages science, art, literature and scientific research, and promotes their development.

Comment:

            Among the cultural principles of state organization, the following can be noted:

• The principle of equal access to education and its role for the progress of the country.
• The principle of continuous improvement of the cultural level of the citizens of the Caliphate.
• The principle of state care for science and culture and access to them for all citizens of the country.

Article 21.

Principles of security of the Caliphate:

• Peace is the goal of the state; ensuring the security of the fatherland is the sacred duty of every citizen.
• The Shura of Jihad and Defense deals with issues related to ensuring the security of the state and building its defense.
• Only the Caliphate establishes the Islamic armed forces, public security services, and any other military bodies. All these bodies are the property of the people; their task is to protect the inviolability of the territories and ensure the security and peace of their subjects. The creation of military or paramilitary formations by any organization or group is prohibited. The law determines the procedure for military service, the declaration of general or partial mobilization, the rights, duties, and procedures for conscription into the military, public security services, and other military bodies that may be established by state decision.

Comment:

            Principles of security of the Caliphate:

• The principle of peaceful development and protection from aggression.
• The principle of state monopoly on the creation of the Armed Forces.
• The principle of coordination of national defense policy by the leading body, the Shura of Jihad and Defense.

Part 4. Basic principles of public life.

Comment:

What could the Islamic society of the future be like?

The Islamic society of the future is a union of true Muslims in a righteous union of power relations in the name of common service to Allah for living according to Allah’s plan.

A future society of this type will be based on a new scientific faith of the new Middle Ages of the era of the first caliphs (faith will be confirmed by science, not contradicted by it), on the social responsibility of Muslims in building a righteous world, where only a Muslim who has earned salvation through deeds of the common good in the service of Allah is a true one.

What will the state be like then? The state will be transformed into a new social union of true Muslims in common service. Sharia will be a dynamic legal system, evolving over time and creatively transformed by Muslims according to the plan of Allah and with His blessing in the Quran.

Article 22.

            The society of the Caliphate is based on the principles of justice, benevolence, freedom, equality and high morality.

            The Caliphate is obliged to support society, ensure its security, stability and equal opportunities for all citizens.

            The Caliphate is obliged to promote the formation of a united spirit among the Ummah and the strengthening of fraternal relations among citizens.

Article 23.

            Family is the unit of society.The Islamic family is founded on religious faith, ethics, and a sense of patriotism. The law provides the necessary means to protect the family, strengthen family relationships, and safeguard motherhood, children, and the elderly.

            The Caliphate must care for the youth, protecting them from corruption, exploitation, physical violence, and mental or spiritual neglect. The Caliphate is also obligated to create the necessary conditions for the development of their abilities through quality education.

Article 24.

            The Caliphate must take care of public welfare and create the necessary conditions to protect the population from epidemics and various diseases.

            EncourageThe development of science and art, the protection of cultural and national heritage, and the promotion of scientific research are all among a number of state tasks.

Article 25.

            Education is one of the foundations of society . The Caliphate guarantees its dissemination and promotion.

            Property, capital, and employment are the foundations of social well-being. These are individual rights of every citizen, which have a social connotation.

            Private property is inviolable. No one may be deprived of this property except when required for the benefit of society or in cases prescribed by law. Damages must be compensated.

Article 26.

            The Caliphate guarantees freedom of economic enterprise based on social justice, interaction of private and public economic activity for socio-economic development, increased production, public welfare, improved living standards, and provision of jobs for the population.

Article 27.

            Natural resources are the property of the Caliphate. The state is obligated to preserve them and use them to maximize profit.

             Employer-employee relationsmust be built on the principle of social justice and must be regulated by law.

            The state should encourage investment; it should provide all the necessary conditions for this.

Article 28.

            The law regulates government loans and credits.

            The Caliphate must protect the environment and maintain ecological balance.

Part 5. World community.

Comment:

            This section defines the Caliphate’s relationship with other members of the global community. This section establishes that the Caliphate is an integral part of human civilization and human society. The Caliphate undertakes to strictly comply with international treaties if they are accepted and comply with the Islamic legal system. This section also further defines international treaties.

Article 29.

            The Caliphate is part of the global development system and participates in the work of global political and economic institutions.

The Caliphate will strictly fulfill its obligations to the international community.

Comment:

            The Caliphate is part of the developmental system of human society and, according to Muslims, represents the most perfect model of human development. The Caliphate strives for global integration and actively participates in the work of global political and economic institutions, considering this necessary for progress and cooperation in building an equitable world order.

            The Caliphate is built as a state governed by the rule of law, and therefore signed treaties must be fulfilled. An exception is made for treaties that do not comply with Sharia. By decision of the Majlis al-Ummah, such treaties are declared invalid, which entails possible compensation by the Caliphate for the consequences of the treaty’s termination.

Article 30.

            For international treaties to enter into force, they must be ratified by the Majlis al-Shura through the adoption of a law.

            If an international treaty contradicts the Basic Law, then the Basic Law is subject to revision or the treaty is not concluded.

Comment:

            This article further stipulates that ratification by the Majlis al-Shura is required for international treaties to enter into force. This requirement is insurmountable and can only be violated in the event of a profound crisis of state authority in the Caliphate, that is, during a time of grave distress for the Ummah or in times of national defense, when parliament is unable to convene. In such cases, the Majlis al-Shura Committee or the Permanent Deputation convenes.

            An international treaty cannot conflict with a Basic Law, and this conflict must be resolved either by revising the Basic Law or by concluding a treaty. In such a case, the international treaty takes precedence over the Basic Law.

Article 31.

International treaties affecting financial matters are subject to review by the government of the Caliphate for an opinion and revision of the budget.

Comment:

            International treaties with significant financial burdens are subject to mandatory ratification by the Majlis al-Shura. However, prior to this, the government of the Caliphate must approve the agreement on the feasibility of assuming such a financial burden. Within one month of concluding an international treaty, the Caliph is obligated to submit it to the government for approval. He may also do the same in advance to resolve any potential disagreements.

            Legal acts of global institutions and organizations in which the Caliphate participates are directly applicable within the Caliphate on matters within their competence in accordance with ratified international treaties. This norm allows for the direct application of international law within the Caliphate, without requiring domestic implementation.

Chapter 2. Sources of Law.

Comment:

            Part three of Chapter One examines the sources of the Caliphate’s law, their hierarchy, and their overall significance for Muslims. This chapter establishes their relationship and significance for all organs of state power within the Caliphate. The hierarchy of legal acts derives directly from Sharia, and it establishes it. It is important to understand that Sharia is fundamentally understood as a law given to people and interpreted by them from the standpoint of human development at any given moment, with absolute aqidah.

Part 1. System of sources of law.

Article 32.

The sources of the generally binding law of the Caliphate are: Sharia (doctrine) as the highest divine law in its human understanding, the present Basic Law, Bay’ah, fatwas, laws, ratified international treaties, as well as acts of executive authorities.

The sources of the generally binding law of the Caliphate in the territory of activity of the bodies that have adopted them are the acts of local law.

Comment:

            The sources of the law of the Caliphate are:

• Sharia as the highest divine law.
• The Basic Law as the Islamic Constitution in its universal meaning as the fundamental law of the state.
• Bay — an agreement on the election and governance of the Majlis al-Bay’ah with the Caliph at its head.
• Laws are canons in their universal legislative meaning.
• Ratified international treaties of the Caliphate with other countries, including other Muslim states.
• Acts of executive authorities.

Municipalities (jamaats) also have the right and must adopt local laws to regulate their activities. Their scope is limited to the territory of the municipality.

Article 33.

The condition for the entry into force of laws, regulations and local legal acts is their publication.

International treaties ratified with prior consent expressed in law shall be published in the manner prescribed for such treaties.

The principles of publication of other international treaties are determined by law.

Comment:

            A prerequisite for laws, government decrees, and local legal acts to come into effect is their publication for public information. Publicity makes them generally binding and legitimizes their adoption, meaning all Muslims know and agree with them. Publication generates internal Muslim consent to these laws.

            International treaties ratified by the Majlis al-Shura are published in the same manner as laws. This is because treaties themselves are ratified through the adoption of laws. International laws themselves may require ratification—prior consent. Only laws concerning organizational matters are adopted without ratification. In the latter case, they are published in the same manner as ratified laws, or may not be published at all.

Article 34.

The ratification of an international treaty by the Caliphate and its denunciation require prior consent expressed in law if the treaty concerns:

• peace, alliance, political or military agreements;
• civil liberties, rights or duties defined in the Basic Law;
• membership of the Caliphate in an international organization;
• significant financial burden on the state.

Comment:

Ratification of an international treaty by law is mandatory if the treaty concerns a number of issues. These primarily include matters of war and peace, alliance treaties with any country, and political and military agreements. Next come laws amending the scope of civil rights and freedoms under the Basic Law. Then come laws concerning the Caliphate’s membership in an international organization, such as the UN. Furthermore, laws that pose a significant financial burden on the state—that is, laws that entail expenditures of over 10 percent of the state budget—are subject to ratification.

Article 35.

A ratified international treaty, after its publication in the “Journal of Laws of the Supreme Authority of the Caliphate,” becomes part of the legal order of the country and is applied in full, unless its application is made dependent on the adoption of a law.

An international treaty ratified with prior consent expressed in law takes precedence over a law that is inconsistent with the treaty.

Sharia, by decision of the Majlis al-Ummah, may reject the provisions of an international treaty, or the Majlis al-Ummah may supplement the Basic Law, but this contradiction must be eliminated as soon as possible.

Comment:

            A ratified international treaty is published in the «Journal of Laws of the Supreme Authority of the Caliphate.» An international treaty forms part of the country’s legal order and is applied if its effect does not require the adoption of additional laws. If, however, the effect of an international treaty requires a change in legislation, it comes into effect after the period necessary for the amendment.

            A ratified international treaty takes precedence over the law in the event of a conflict, but has less legal force than Sharia, Bay’ah, or the Basic Law. Following a court ruling, the Majlis al-Shura must finally resolve this conflict by adopting new laws.

            The Majlis al-Ummah may reject the provisions of an international treaty even after its ratification if a contradiction with Sharia is discovered. The Majlis al-Ummah may make such a decision only in exceptional cases. In principle, the Majlis al-Ummah can supplement the basic treaty through its decision, but the most important thing is that the contradiction be resolved as quickly as possible while preserving the international obligations of the Caliphate.

Article 36.

Acts of law also include the Decrees of the Government of the Caliphate, issued by it on the basis of a special authority contained in the law, for the purpose of its implementation.

The powers and scope of issues referred for settlement must be determined by the body competent to issue such regulations.

Comment:

            Decrees of the government of the Caliphate are also considered legal acts of the central authority of the Caliphate. The government may issue such decrees, in addition to standard administrative documents, only on the basis of a direct delegation of authority in a specific area of government. A law authorizing the government to issue decrees is called an authorization, and government decrees are necessarily issued to implement existing laws and do not constitute the adoption of new laws.

            The authorization must specify the body that will issue the resolution. This could be either the government itself or a ministry. The scope of the issues, including the law pursuant to which the authorization is being issued, must also be defined.

Article 37.

Territorial self-government bodies (jamaats), as well as territorial (district) bodies of government administration (emirates), on the basis of and within the limits of the powers contained in the law, establish local legal acts that are mandatory in the territory of activity of these bodies.

Comment:

            The meaning of this article is that the jamaats themselves determine the binding nature of the legal acts adopted by them, and as for the emirates, they have the right, by their own decision, to extend the actions of local authorities to the emirate as a whole, based on the effectiveness of legal regulation, accepting them as a standard for the rest.

Article 38.

Fatwas are the source of the Caliphate’s case law.

The right to issue a fatwa belongs to an outstanding and recognized mujtahid who has the academic degree of ijtihad.

A fatwa is issued on a pressing issue of social life, which is determined by the Majlis al-Ulema.

Comment:

Fatwas are issued by eminent Muslim legal scholars, known as mujtahids, who enjoy universally recognized authority in the Muslim world. A fatwa is a mujtahid’s opinion on a specific legal issue and must be based on the principles of Sharia. Ultimately, a fatwa is also a source of law, but rather a derivative one, as it derives from Sharia, as does bay’ah.

The fatwa contains an introductory part, that is, the statement of the problem, its description, a motivational part, that is, a presentation of the mujtahid’s arguments, and at the end a command, that is, an established rule of conduct.

Fatwas are heavily influenced by the madhhabs (legal schools) of the mujtahids, but many are still of pan-Islamic nature. A fatwa is, to some extent, analogous to a precedent in the Anglo-Saxon legal system, as it is issued by a specific person on a specific legal issue; however, this person is not a judge, but a scholar.

Part 2. Sharia.

Comment:

            Part two of the second chapter is devoted to the role of Sharia in the legal life of the country and of Muslims in general in their relationship with the Caliphate. This section is important for understanding the legal nature of Sharia and the mechanism for its renewal in Islam. Sharia is the core of the Muslim legal system, and its importance cannot be questioned.

All norms of Muslim law are divided into rules for the performance of religious duties and norms regulating human relationships.

The second group of norms, in turn, is divided into three main branches of private law:

• the so-called “right of personal status” (marriage, divorce, kinship, financial support of the family, responsibilities for raising children, wills, inheritance “by law”, guardianship, trusteeship, limitation of legal capacity, etc.);
• Tort (criminal) law, which is characterized by a certain schematic nature and less detail than the two branches mentioned above. A distinctive feature of this branch is that it includes sanctions for all ­violations of the law, regardless of their nature;
• a set of norms, conventionally referred to as Muslim civil law – muamalat (property issues, various types of transactions and their security, the procedure for fulfilling obligations, etc.).

Contemporary authors note that Muslim law does not have a separate branch of commercial law, although it does pay significant attention to various forms of commercial partnerships. Along with these three branches, Muslim legal doctrine distinguished three other public branches:

• branch of «power norms»;
• judicial law;
• The norms of «siyar» are a branch that is conventionally called «Muslim international law».

The branch of judicial Muslim law includes the principles of judicial organization and the rules of procedure and activities of various judicial bodies.

Mechanisms for changing Sharia:

1. By means of fatwas of mujtahids as a precedent source of law, that is, instead of a court decision – a religious ruling of an Islamic cleric-scholar

2. By the consent of all Muslims, expressed in a common decision of the elected parliament. Here we can speak of the adoption of the Western doctrine of parliamentarism.

3. A unified interpretation of legal norms on behalf of the entire clergy, that is, a unified will of the clergy in the Islamic nizam.

Doctrines of Sharia Change:

1. The doctrine of historical time – legal norms are valid only in their own time; over time, due to new historical circumstances, they need to be changed.

2. The doctrine of social values – it is necessary to change legal norms based on a new understanding of the good of all Muslims, whose societies’ laws are changing in the surrounding world.

3. The doctrine of the Caliphate — Muslims are unable to predict all the circumstances associated with the formation of the Caliphate and therefore it is possible that there will be a very large number of new state and legal phenomena that cannot be foreseen.

Article 39.

            Sharia is the ideal code of conduct for Muslims and the Islamic criterion for the legality of state actions.

            The provisions of Sharia are subject to revision only by the Majlis al-Ummah by the general consent of Muslims, but the role of Sharia cannot be subject to revision.

            Sharia is based on Islamic values, which Muslims understand based on the word of God.

Comment:

            Sharia, as established in the Fundamental Law, is understood to be the ideal code of conduct for Muslims. It reflects the most general principles of the Islamic legal system. These principles allow for the creation of new Islamic norms in accordance with the Prophet’s understanding of them. The role of Sharia is not limited to merely serving as an ideal and standard of law; it also serves as a criterion for the legality of state authorities’ actions toward Muslims. In fact, the Islamic mechanism for assessing the state by society, unlike the Western concept of human rights, also allows society to effectively evaluate and monitor the actions of state bodies.

            The centrality of Sharia law dictates the unique mechanism for its amendment, which is available only to the Majlis al-Ummah. Such complexity and responsibility necessitates the existence of a supreme decision-making body, which is precisely what the Majlis al-Ummah is.

            Sharia is based on Islamic values, the spiritual path of Muslim development, and its legal outcome is Sharia. Islam has always been a spiritual religion, the human spirit’s urge to know Allah, and this role will continue into the future. It was precisely this spiritual aspect of Islam that made it so strong that it allowed Muslims to survive Western colonialism.

Sharia doctrines:

1. Sharia is a historical form of Islamic law that existed in the Islamic Middle Ages, which various jihadist groups are trying to use again as part of various directions of change in the Islamic world.

Islamic law is a modern doctrine of modernism; this law stems from the legal tradition of a given state, taking into account the religious understanding of statehood.

Islamic legislation is a set or body of legal norms of an Islamic state.

Adat — customary law — are extremely outdated customs that are subject to abolition, but they are tolerated as the legal tradition of a number of peoples in a nation-state that is difficult to transform.

This concept recognizes the pluralism of legal sources, while legal norms are, if necessary, declared to be pagan due to pre-Islamic barbarism.

Thus, the following definition can be formulated:

Sharia doctrine (first version) is a system of views and understandings regarding the sources of law in a modernizing Islamic nation-state, where Sharia is perceived as medieval historical law. Islamic law, as the law of the state, takes into account all the achievements of Sharia in the context of modernization; Islamic legislation serves as a body of legal norms, while adat, although subject to abolition, is accepted and transformed.

2. Sharia is a concept of Islamic law based on the divine law of Muslims as general principles of rights and updated in accordance with the need for modernization.

Islamic law is the same as Sharia.

Islamic legislation is a set or body of legal norms of an Islamic state, arising from the doctrine of Sharia.

Adat — Sharia completely abolishes adat as pre-Islamic barbarism, that is, the introduction of Sharia directly abolishes adat.

Sharia as a holistic doctrine displaces all alternative sources of law, not recognizing adat in principle, seeking to suppress it and rejecting the Western legal tradition as a legacy of colonialism.

The problem is also that many adat customs are justified by Sharia in such cases and are not supplanted, but accepted as a given, including completely outlandish things like marrying girls at 9 years old.

Thus, the following definition can be formulated:

The doctrine of Sharia (the second option) is a system of views and understandings regarding the sources of law in an Islamist state, including the jihadist version of statehood, where Sharia, as a holistic system, not subject to criticism or revision, supplants all other alternative sources of law. Islamic law becomes identical to Sharia, Islamic legislation can be interpreted as Sharia legislation, and adat is declared to be a completely pre-Islamic barbarism and is completely rejected.

3. Sharia is a historical, obsolete form of law that must be replaced by modern law, otherwise modernization is impossible.

Islamic law is an obsolete form of legal norms that is subject to unconditional abolition.

Adat is an obsolete form of legal norms subject to unconditional abolition.

This concept recognizes only modernization law as a product of the achievements of human thought, and any restrictions on human rights are unacceptable.

Thus, the following definition can be formulated:

The doctrine of Sharia (the third option) is a system of views and ideas on the sources of law in a Western-type Muslim state, where Sharia is subject to complete abolition and displacement by the modern law of a Westernized Muslim state, and Islamic law and adat are perceived as obsolete legal norms.

Article 40.

            Sharia is the basis of the legal system of the Caliphate and is interpreted by the Majlis al-Ulema.

            In case of contradiction in the laws, the qadi refers to the Sharia.

            In case of conflict between Sharia and the law, Sharia applies according to the decision of the Majlis al-Ulema.

Comment:

            Sharia is the core of the Caliphate’s legal system and is interpreted by the Majlis al-Ummah. Only the Majlis al-Ummah has the right to interpret Sharia. Sharia is superior to the Fundamental Law, and the Fundamental Law derives from it and is subject to its application.

            Whenever there is a conflict between laws, the qadi refers to Sharia to resolve the conflict. If the conflict cannot be resolved based on the general principles of Sharia, the conflict is resolved by the Interpretation Commission of the Majlis or by the Majlis al-Ummah itself, if it deems it necessary to hold a special meeting.

            In the event of a conflict between Sharia and the law, Sharia prevails, but its specific application is determined by the Majlis al-Ulema. The Majlis al-Ulema resolves the conflict through ijtihad, and its decision is not final. The decision of the Majlis al-Ulema can be appealed to the Majlis al-Ummah through the Constitutional Court.

Article 41.

Sharia encompasses the entire legal system of the Caliphate and is an expression of the essence of the supreme authority of Islam.

Sharia is the highest stage of development of the Islamic legal system, Sharia is justice for the Caliphate.

Sharia is the cultural and historical legal heritage of Muslims and the Caliphate.

Comment:

            Sharia, as the ideal code for a Muslim, encompasses them entirely, regulating the most diverse aspects of their lives. This totality is not an expression of Islam’s totalitarian nature, but rather helps Muslims conduct themselves in accordance with the spirit of their religion. Sharia is more than just law; it functions as a system of comprehensive rules. Sharia itself is sanctified by the supreme authority of Islam.

            Sharia, at its core, is the absolute meaning, the construct of the Islamic legal system, and its highest value. No other thought has ever grasped this. Sharia itself embodies the nature of change and the possibility of evolution. However, this process faces considerable resistance. The Western world has chosen humankind as the ideal criterion of law, Russia has chosen conciliarity, and the Islamic world has chosen Sharia.

            On the other hand, Sharia is the cultural and historical legacy of Muslims, a historical phenomenon reflecting the early centuries of Islam. In this sense, Sharia is a historical phenomenon and a tradition that must be updated in accordance with new historical times, and this is Sharia’s greatest value.

Part 3. Baya.

Comment:

Let’s define bay’ah, which translates into Russian as «contract.» Bay’ah is a normative source of Islamic law, constituting a constitutional and legal agreement between the ruler of a Muslim country and the highest representative body—the parliament—regarding the terms of his election and rule, expressed in the obligations assumed and the rights arising from them for their implementation.

In other words, bay’ah is, first and foremost, a constitutional and legal agreement. The Western world is familiar with the concept of an administrative and legal agreement, although the issue is debatable there as well. However, a constitutional and legal agreement is a new phenomenon in this context for modern global practice, yet organic and natural for the Islamic world.

Article 42.

            Bay’ah is a constitutional and legal contract concluded between the Caliph and the Majlis al-Bay’ah regarding the conditions of rule.

            The Bay’ah is valid for the entire term of the reign of the head of the Khalifa.

            The Baya may be supplemented by agreement of the parties involved.

Comment:

The Western world knows only two modern types of constitutional-legal treaty, namely:

1. The agreement on the creation of a state, hence the formation of a federation by type of creation known as a contractual federation, which is considered extremely unstable in contrast to a constitutional federation.
2. A pact or agreement on the basic conditions for carrying out reforms, when the main political forces of a Christian country during a period of reform in that country enter into agreements on the basic parameters for carrying out reforms, which they undertake to unconditionally follow.

Thus, baya is the third form of modern constitutional-legal contract.

The concept of a contract implies equality and free will on the part of both parties. This is fully present in bay’ah: both the ruler and the parliament are free in their actions. Bay’ah is a consequence of the assumption of office as ruler, in the sense that without a contract, not just governance is impossible, but just and wise governance based on mutual rights and obligations.

The following conditions can be included in the content of the baya:

Conditions of election, which include the fact of concluding an agreement, compliance with the election procedure and qualifying conditions, which include age — 35 years, Muslim (after all, this exists, since the country is Muslim, although exceptions are possible), good and fair character (meaning behavior, reputation), higher education, political experience.

The conditions of governance are a system of mutual obligations, possibly more specific: political, economic, social and cultural rights and obligations, that is, obligations to fulfill one’s election program.

The conditions for early resignation from office — impeachment, health reasons, and so on — are expressed more in the Bay’ah than in the Constitution (Basic Law).

The procedure for concluding a bay’ah is as follows: a ruler is elected in the country. The Majlis al-Bay’ah, within 10 to 30 days of the election and no later than one month before assuming office, proposes a treaty to the ruler. Refusal of the bay’ah invalidates the election. Attempting to assume office without a bay’ah constitutes a rebellion against the foundations of power in the country.

Bay’ah can be considered a source of constitutional law, and it has legal force inferior to the Constitution and superior to laws. Laws cannot contradict bay’ah. The Majlis al-Shura has the right to amend bay’ah. Simply put, bay’ah is not a social, but a legal consent of Muslims to the right of a certain person to rule over them.

Thus, bay’ah is one of the distinctive legal institutions of Islamic constitutional law and allows it to develop dynamically without losing its connection to tradition. Bay’ah, it is believed, can play a positive role in the establishment of a truly Islamic state.

Article 43.

            Baya is, first of all, a treaty that creates norms of constitutional significance.

            By the very fact of his imprisonment, Bay’a signifies the Muslim nation’s recognition of the Caliph’s authority. All are obligated to obey.

            Its termination means a refusal of such recognition.

Article 44.

            Bay’ah presupposes tranquility in the Caliphate and it cannot be concluded under extraordinary conditions.

            The only exception can be only the hour of grave calamities of the Ummah, which does not tolerate delay.

            The Baya must be concluded only in writing.

Article 45.

            The Bayah contains fundamental rules regarding the conditions of government.

            Bay’ah includes norms of the personal status of the ruler, the rights and duties of the ruler in relation to the Muslim nation, the procedure for election and removal from power.

            The baya should be as detailed and clear as possible.

Article 46.

            The personal status of a ruler is linked to his personal qualities as a charismatic leader and stems from his life.

            Norms of personal status can also regulate the ruler’s family relationships.

            The rights and duties of the ruler in relation to the Muslim nation must contain the most detailed list of them in order to determine the legal boundaries of the relationship of the ruler with his people.

Article 47.

            The Bay’a must also contain provisions on the conditions of election and removal from office.

            In this case, constitutional guarantees are needed against despotic rule and the possibility of usurpation of power even in the presence of good for the country.

            The conditions of election and removal cannot contradict the Basic Law, the only exception being the decision of the Majlis al-Ummah.

Article 48.

            The Majlis al-Bay’ah is the highest representative body that concludes the bay’ah with the Caliph.

            Majlis al-Bay’ah consists of members of Majlis al-Shura and Majlis al-Ulema.

            The Majlis al-Bay’ah is convened to conclude an agreement on the election of the Caliph or his removal, and its powers are independent of other authorities.

Article 49.

Within a week of the election, the Majlis al-Bay’ah must meet and propose the bay’ah to the Khalifa.

The Majlis al-Bay’ah cannot refuse the offer of the Bay’ah.

The agreement is concluded in the form proposed by the Majlis al-Ulema.

Article 50.

            In the event of a serious state crime, the Majlis al-Bay’ah has the right to lift the Caliph’s immunity from prosecution.

            The initiative to raise the issue of lifting immunity may be taken by the Majlis al-Shura, the Majlis al-Bay’ah, and the Majlis al-Ummah.

            The Majlis al-Bay’ah operates on a temporary basis.

            The Majlis al-Bay’ah must itself develop the Bay’ah project.

Article 51.

            Bay’ah is concluded 30 days after the election of the Caliph.

            The Bay’ah is offered to the Caliph only by the Majlis al-Bay’ah.

            Refusal to conclude a bay’ah on the part of the Caliph makes it impossible for him to rule.

Article 52.

            The conclusion of Bay’ah signifies the accession to the rights of the Caliph.

            The ruler has the right to request changes to the terms of the bay’ah prepared by the Majlis al-Bay’ah.

            These changes must be worked out and the Baya signed within one month from the date of the request to change the terms of the Baya.

Article 53.

            The Bay’ah is signed by the Majlis al-Bay’ah on behalf of the Muslim nation, and by the ruler on behalf of the supreme authority of the Islamic state.

            Baya cannot be unconcluded or postponed.

            Baya entails obedience to the ruler.

Article 54.

            The detailed terms of termination of the Bay’ah are contained in the contract itself, and the Nizam regulates only the main provisions.

            The conditions for termination of the Baya may be: treason, illness, election to another position.

Article 55.

            The Constitutional Court of the Caliphate determines the caliph’s guilt for such a crime as treason.

            Within 10 days from the date of recognition of this fact, the Majlis al-Bay’ah must terminate the Bay’ah or the agreement is terminated by force of law, and the Majlis al-Bay’ah dissolves itself.

Article 56.

            Termination of the Baya in the event of illness of the head of state is possible only if it is of a long-term nature, more than 3 months.

            The Majlis al-Bay’ah may appoint an interim ruler until the ruler recovers.

            Election to another position means the termination of the Baya by right, but only with the consent of the ruler.

Article 57.

            Bay’ah is the fundamental source of state law in Muslim countries.

            Bay’ah directly follows from the Sharia as it is provided for by it.

Article 58.

            Bay’ah creates the rights and duties of the caliph as an outstanding personality invested with the trust of the Muslim nation.

            Baya gives rise to legal relations for the management of the state.

            Baya can regulate the ruler’s relations with other rulers that are of a personal nature.

Article 59.

            Bay’ah creates legal diversity and perfection in the Muslim legal system.

            Bay’ah is one of the pinnacles of Islamic legal thought.

            Baya was created as the embodiment of the divine laws of Allah.

Article 60.

            Bay’ah is a part of the main Nizam of the Caliphate by status.

            Bay’ah, subject to the will of the Majlis al-Bay’ah, may contradict the Constitution until this conflict is resolved.

            This contradiction must be due to an emergency situation.

Article 61.

            Since the Bay’ah is valid only for the term of the head of state, this agreement belongs to the amendable part of the Constitution and can be amended upon the expiration of the term of the head of state.

            By a special decision of the Majlis al-Bay’ah, the Bay’ah may be concluded as a completely independent source of law.

Article 62.

            Baya is created by the human mind, but expresses the divine essence in its meaning.

            Bay’ah is the pure will of Muslims to build a just society on Earth.

            Bay’ah follows Sharia.

Chapter 3. Rights and Freedoms.

Comment:

            Chapter Three regulates the fundamental institutions of human and civil rights and freedoms. For Islam, this doctrine is new and uniquely Western, as in the Western world, the human rights system protects civil society from state interference and serves as a criterion for assessing the state’s actions and its degree of democracy. Consequently, this doctrine postulates the right to resist oppression.

            At the same time, Islamic political and legal doctrine, in its neoclassical form, embraced the idea that human rights ensure the greatest possible freedom for humans and Muslims as Allah’s creation on Earth until the Day of Judgment. Respect for human rights is the state’s primary obligation toward Muslims, as opposed to the obligation to observe Sharia law toward Allah.

            Islam has almost completely adopted the Western system of human rights, adding to it only elements of social policy that are advanced even in relation to the post-war constitutions of Western countries.

Sharia law grants women the broadest possible rights, making them equal to men. Any denigration of women’s dignity or limitation of their rights are relics of paganism, and such customs cannot be sanctified by Sharia law. The most striking example is the hijab, which is not established by Sharia law at all, but rather adopted from the pre-Islamic traditions of a number of peoples. Although, of course, the rules of conduct for women in Islam are stricter than in Christianity. Such restrictions should always be perceived as pagan customs, not even as Islamic customs incorporated into the legal systems of Muslim states.

Part 1. On fundamental rights and freedoms.

Comment:

            This section is short in scope, but it contains the fundamental defining provisions of human rights. Islam posits the observance of human rights and the rights of Muslims as part of humanity. The norms of this section set the standards and boundaries of human rights for both the state and the individual citizen, understanding these boundaries as the need not to violate the rights of others.

Article 63.

            Human rights are the foundation of political order and social peace.

Respect for human rights is the duty and obligation of state power, and their recognition is the foundation of any human community.

Comment:

            Human rights are the foundation of the political order, derived from laws and the Fundamental Law, and the basis of social peace among the citizens of the Caliphate. Respect for human rights enables harmonious relationships between parties to legal relations and defines clear responsibilities of the state, formalizing and systematizing them. Human rights achieve harmony with Allah on the part of the individual in their statehood, and this is their highest achievement.

            Respect for human rights is the duty and obligation of the state as the guardian of the well-being and prosperity of the citizens of the Caliphate. Recognition of human rights by the state is the foundation of any human community and the state as its form of organization at the highest level of its development.

Article 64.

            The right to life cannot be taken away.

Human dignity is inviolable.

Human rights must not infringe on the rights of others or violate public order and security.

Comment:

            The right to life is guaranteed and cannot be taken away by anyone, including the state as punishment for serious crimes. The death penalty has been abolished in the Caliphate. Life imprisonment has replaced the death penalty, with the heaviest penalties imposed for murder and insult to religion. An attack on a person’s life is considered an attack on something that cannot be restored and is irrevocably taken away, so society punishes it mercilessly.

            Human dignity is inviolable and must not be diminished in any way, including during detention. State authorities are obligated to respect it even during armed rebellion, using means proportionate to the threat. Humanity is the highest value on earth after Allah in heaven. Any government agency’s actions must be guided, first and foremost, by the need to protect the rights of citizens.

            Human rights are limited to only two categories: violation of public order against the state and violation of the rights of others against them. The law of the Caliphate provides for administrative and criminal penalties for violations of public order and for the restoration of damages.

Article 65.

            Human rights may be restricted only by a court decision in peacetime and in accordance with the law in wartime or in times of threat.

            The law must clearly and distinctly indicate the limits of the restriction of rights.

Comment:

            This article imposes state restrictions on citizens’ rights. In peacetime, such restrictions are imposed by a court decision, which clearly establishes the grounds for, how, and for how long the citizen’s rights are restricted. In wartime or during a state of threat, parliament may pass laws restricting rights, including public rights, for defense purposes.

            The adopted law must clearly define the duration of the restrictions or the event upon which they will be lifted, such as the end of the war, and the specific rights that are being restricted. These rights may include freedom of assembly, strike, and so on.

Article 66.

The Caliph acts as the guarantor of human rights.

Human rights are inviolable and inalienable as the basis of peace and justice.

Comment:

            The Caliph acts as the guarantor of human rights, taking all necessary measures to protect them. The Caliph may submit an emergency request to the Majlis al-Ummah regarding human rights violations and their protection, and the Majlis al-Ummah is obligated to consider it.

            Not only human dignity as a central element, but human rights in general are inviolable and inalienable as the foundation of peace and justice. Protecting the rights of all people in the Caliphate allows us to speak of a peaceful policy and the equality of all before the law of the Caliphate. Justice enables equal treatment for all.

Part 2. Fundamental rights and freedoms.

Comment:

            Fundamental rights and freedoms include, first and foremost, political and civil rights and freedoms. They are fundamental and decisive in relation to the state and guarantee the state’s fulfillment of the will of Muslims. Violation of these rights and freedoms suggests social distress, while violation of personal rights and freedoms suggests totalitarianism in its worst form, regardless of how it is justified. The system of reflected political and civil rights and freedoms is incomplete and continually expanding.

Article 67.

Everyone has the right to free development of his personality to the extent that it does not infringe on moral standards.

Morality must be observed by all public servants as a duty and is above the law.

Personal freedom must be internally conscious and moral.

Comment:

            Everyone has the right to free personal development, which is why a third criterion is introduced: violation of moral norms. Islam is, first and foremost, morality, which prohibits Muslims from committing anti-Islamic and antisocial acts in any way. Moral norms are no exception. This does not refer to norms that allow for legal chaos, but to norms that allow for punishment for insults, for example, to religion, and these norms are clearly stated in laws. These punishments merely supplement the public condemnation of such acts.

            Morality must be the highest criterion for the actions of civil servants, and it transcends the rule of law if they inadvertently violate human rights. In this case, the official must act in accordance with the moral precepts of Islam, and the court is obligated to consider this as a mitigating circumstance or justification. A moral act will always be Islamic, as Islam is the foundation of Muslim morality.

            Every citizen must act responsibly and consciously. This is more of an imperative desire of the legislator than a codified norm, a call to action by the state.

Article 68.

All people are equal before the law.

Men and women have equal rights.

Discrimination is prohibited.

Comment:

All members of the human community, regardless of citizenship or religion, are equal before the law. No one may be given preference based on their distinguishing characteristics. The law does not link the occurrence and emergence of legal relations to any personal characteristics: deafness, blindness, kindness, and so on.

Men and women are equal in enjoying the full range of human rights, including political ones. For a long time, a policy of infringing on women’s rights in all areas of public life was pursued, but this phenomenon has now been overcome. Women are absolutely equal subjects of law and social relations.

Discrimination regardless of gender, nationality, profession, or religion is prohibited, and the state prosecutes those who commit discrimination. Discrimination cases are heard in courts using expedited procedures to ensure effective and prompt protection of violated rights.

Article 69.

Freedom of religion and conscience and freedom to proclaim religious and ideological views are inviolable.

The unimpeded performance of religious rites is guaranteed.

Comment:

            The state guarantees freedom of religion and conscience. Everyone has the right to profess any religious belief. However, rites must not be public or violate security if the religion is anti-systemic or satanic. In the latter case, an outright ban is possible, as such freedoms are not absolute. The primary criterion for determining religious freedom must be the moral norms of human morality. The Caliphate, as a Muslim state, pursues a missionary policy of spreading and promoting Islam while maintaining equal rights for all religions. In principle, in the Caliphate, religion is understood precisely as religion, that is, belief in the humanistic essence of man, so satanic religions cannot be considered as such. They are more like cults, and therefore this provision does not apply to them in the strict sense of the word.

            The unimpeded performance of religious rites by believers of any religion is guaranteed in the Caliphate. Religious buildings are erected with special permission from the Ministry of Justice if they are of particular significance, and from the sultanates if they are of lesser significance. Believers may hold processions and public celebrations, provided they respect other religions.

Article 70.

Everyone has the right to freely express and disseminate their opinions orally, in writing and through images.

Freedom of the press and information is guaranteed.

There is no censorship.

Comment:

            Everyone has the right to freely express their opinion, as long as it does not infringe on moral standards, public safety, or the rights of others. Freedom of opinion and discussion on all issues is proclaimed in the society of the Caliphate. Any means, including the internet, may be used to express one’s opinion.

            Freedom of the press is guaranteed. This refers to public information from media outlets, such as radio and television. Media outlets operate under a license issued by the Ministry of Justice. The caliphate has strict rules regarding libel and false information.

            Censorship is prohibited in peacetime, but it may still be introduced in wartime for security reasons. In such a case, a Censorship Committee is established within the Ministry of Defense, and a military censorship is established by law.

Article 71.

Marriage and family are under special protection of the state.

The care and upbringing of children is the natural right of parents and their primary responsibility.

Comment:

            Marriage and family, as essential conditions for the development of the state and, most importantly, society, are under special state protection. This is reflected in judicial protection, encouragement of family preservation, and a system of state benefits, especially for large families and gifted children. The Caliphate strives to provide maximum assistance in building families and takes all possible measures to this end.

            Part two of this article postulates that caring for children is a right and a duty, or a legal obligation. Society, represented by the state, naturally entrusts the upbringing of children to parents, with the active assistance of social agencies that support this development in the desired direction through encouragement.

Article 72.

All school affairs are under the guardianship of the state.

Private schools and universities may be opened under state supervision.

Comment:

            All educational affairs are under the state’s special attention and protection. The state pursues a policy of ensuring access to education for all who desire it and views it as a national asset and a strategic reserve for the country’s development.

Private schools and universities can be opened with a license from the Ministry of Education, provided their curricula meet general educational standards. Furthermore, there are requirements for premises, teacher and instructor qualifications, and so on, meaning that all the necessary conditions for a fully-fledged educational process must be in place.

Article 73.

The right to assemble and march may be restricted by law in the event of emergency.

All citizens have the right to form unions and societies.

Comment:

            The right to assemble and march is guaranteed, but this is intended to restrict them by law. This may include extraordinary events, both specified by law and those not specified, such as a protocol visit by the head of state to a specific city. The right to assemble is exercised only after notification if the gathering is of a public political nature, and after permission if it is held in the capital.

            All citizens have the right to form unions and societies, and this right exists without restrictions. For such a union to enter into public relations, it must be registered with the justice authorities. A political union is already a party and is subject to separate regulation.

            Everyone enjoys freedom of entry and exit into and movement within the Caliphate. This right may be restricted by law in the event of a threat, a state of emergency, or by a court order, if this right is revoked following a verdict.

Article 74.

Citizenship of the Caliphate cannot be taken away.

Citizenship may be lost only on the basis of law, and against the will of the person concerned only if he does not thereby become a stateless person.

Comment:

            Citizenship is understood as a legal relationship between a citizen and the state, imposing mutual rights and obligations. While citizenship is necessary and natural, this article emphasizes that citizenship of the Caliphate cannot be taken away. The Caliphate guarantees the protection of human rights, including the right to citizenship for the enjoyment of all benefits.

            Loss of citizenship can only occur by law and not through legal action. This refers to the case of option—a change in the status of territories, that is, the sultanate’s secession from the union. Against the will of the affected person, citizenship can be lost by law only if they acquire another citizenship.

Part 3. Social rights and social policy of the Caliphate

Comment:

            Social rights are among the most important and constitute a central element of the overall human rights system. The essence of these rights lies in the state’s social obligations and the opportunity for citizens to enjoy all social benefits. These social obligations of the state enable citizens to receive social assistance and support and to freely develop culturally. Social policy is inextricably linked with social rights, and therefore they are discussed together in this Basic Law.

Article 75.

The Caliphate guarantees the preservation and protection of the historical, cultural and artistic heritage and the wealth that constitutes it, regardless of their legal status and affiliation.

The criminal law provides sanctions against attacks on this heritage.

Comment:

            The Caliphate’s authorities pursue a policy of preserving the country’s historical and cultural heritage. The Caliphate protects historical treasures regardless of their legal status; that is, the state oversees the preservation of historical monuments and private museums. The Caliphate assists private collectors and promotes the establishment of private collections.

            Criminal law provides for strict measures against attacks on historical heritage due to its special value. The Criminal Code equates this crime to a particularly serious one.

Article 76.

The Caliphate ensures the creation of favorable conditions for social and economic progress and for the most equitable distribution of income within the framework of a policy of economic stability.

Comment:

            The Caliphate creates favorable conditions for the country’s social and economic progress. Every year, the government commits to the country’s economic and social development and lives up to these commitments. Progress generates a certain amount of income inequality and social problems, so in the presence of economic stability, the state strives for a fair distribution of income.

            The Caliphate’s labor policy, aimed at achieving full employment, is of particular importance. This allows the country to develop rapidly, instills confidence in the future among the Caliphate’s citizens, and reduces social risks.

Article 77.

The Caliphate provides social, economic and legal protection for the family.

The Caliphate recognizes the rights of the family as a natural union based on marriage.

Comment:

            The state implements a policy of comprehensive protection of the family, including social, economic, and legal protection. The state protects and cares for every family, providing them with opportunities for free development. Family protection also requires the existence of specialized state bodies responsible for its implementation.

            The Caliphate recognizes family rights that arise from their free will, not from a fictitious agreement. A court, having established a fictitious agreement, finds that such a family lacks mutual rights and obligations.

Article 78.

Marriage is based on the moral and legal equality of spouses within the limits established by law to ensure family unity.

Parents have the obligation and right to support, educate and raise children, even if they are born out of wedlock.

Comment:

            Marriage is based on a union, and this union engenders equal rights for both spouses—both the man and the woman. This unity must be reasonable and moral in regard to the family, and the law can only help achieve this. The state strives to provide maximum assistance to each family in its legal relationships.

            Parents have the right to support and educate their children. This is also their responsibility. Moreover, the provisions of this part of this article also apply to children born out of wedlock. The state thus guarantees their protection. Parents’ obligation to care for their children arises from their birth, and this is a fundamental legal fact.

Article 79.

The law shall ensure to children born out of wedlock all legal and moral protection compatible with the rights of members of a legitimate family.

The law establishes the procedure and limits for finding paternity.

Children enjoy the protections established in international agreements concluded to safeguard their rights.

Comment:

            This article is dedicated to protecting children’s rights. Children born outside of a barracks enjoy the same rights as those born in wedlock. This norm is inviolable. Every child has the right to their own family. The term «out of wedlock» refers not only to the case of a single mother but also to the case of a child’s non-recognition by the father.

            The law provides for judicial determination of paternity. The court, upon the mother’s request, may conduct a compulsory genetic test. If the result is positive, paternity is established. From this moment, the child’s rights and the father’s obligations arise.

            The main body of the Islamic Nizami specifically highlights cases where international treaties establish greater rights for children than those granted within the caliphate itself. In this context, children enjoy greater protection and rights, which, in principle, serves as an incentive to raise the level of laws regarding children.

Article 80.

The Caliphate guarantees a decent economic existence for elderly citizens by providing them with appropriate pensions, the amounts of which are periodically reviewed.

Also, regardless of family obligations, they are provided with assistance in improving their well-being through a system of social services, which are designed to monitor their health, housing and cultural conditions, and their leisure time.

Comment:

            This article establishes state pension provisions for elderly citizens. The state undertakes to periodically review pensions and increase them to ensure a dignified living for the elderly. The law establishes the retirement age and the eligibility criteria for pension benefits.

            The country has a system of social assistance for pensioners, the disabled, and others in need, regardless of their marital status. The social services system guarantees the provision of such assistance, which is free of charge.

Article 81.

The Caliphate shall likewise encourage policies that ensure the implementation of vocational training and retraining, control over occupational safety and health, guaranteeing necessary rest by limiting the working day, providing periodic paid holidays and developing a network of appropriate centers.

Comment:

            The public authorities of the Caliphate promote policies to promote employment and protect workers’ rights. This policy includes vocational training and retraining for the population. The state, through oversight bodies, monitors occupational safety and health and guarantees adequate rest. The provisions of this article are further developed in labor legislation.

Article 82.

The Caliphate maintains a public social insurance regime for all citizens, which guarantees assistance and the provision of adequate benefits when needed, especially in cases of unemployment.

Receiving additional assistance and benefits is voluntary.

Comment:

            The Caliphate’s authorities are introducing public social insurance to provide benefits in the event of social assistance. Unemployment is a particular concern. Receipt of these benefits is voluntary. The amounts of social benefits and the procedure for receiving them are established in the Social Code.

Article 83.

The right to health protection is recognized.

The Caliphate is responsible for organizing public health, implementing preventive measures, and providing necessary assistance and services.

Comment:

            The state recognizes the right to health care, organizing a public healthcare system. The Caliphate permits private medical care with licenses and establishes strict rules for obtaining it. The state is also obligated to take preventive measures. Public healthcare is completely free. The state also provides a necessary range of services for non-citizens.

Article 84.

The Caliphate promotes and encourages access to culture, which is a right for all citizens.

The Caliphate promotes the development of science, scientific and technological research for the benefit of common interests.

Comment:

            A necessary condition for the harmonious development of a citizen of the Caliphate is the enjoyment of cultural benefits. Access to culture is equal for all. Preferential rights are established for citizens of the Caliphate, but non-citizens also have this right. However, since they have no legal connection to the Caliphate, they enjoy the cultural benefits of the Caliphate like citizens of other countries.

            The Caliphate promotes the development of science and scientific research for the common good and implements programs for the country’s scientific development. The state encourages the development of the scientific and technological complex across all research areas and the creation of the material and technical basis for scientific progress.

Article 85.

Every person has the right to use the environment for the development of his personality, but he has the duty to protect this environment.

The Caliphate ensures the rational use of all natural resources in order to protect and improve the quality of life and to preserve and restore the environment, based on the necessary collective solidarity.

Comment:

            Every person within the Caliphate has the right to enjoy the environment and all the benefits it provides. Everyone who enjoys the benefits of the environment also has a responsibility to protect it. This responsibility may take the form of financial and administrative liability.

            The Caliphate’s authorities oversee the rational use of natural resources. According to the Basic Law, natural resources are state property, and their development is permitted only under lease and license. The state oversees agricultural activities in protected natural areas.

Article 86.

All citizens have the right to use comfortable housing.

The Caliphate facilitates the creation of the necessary conditions for this and establishes appropriate norms to ensure the effective implementation of this right.

Comment:

            All citizens have the right to comfortable housing. As established in the Housing Code, this right arises when there is a need to improve housing conditions. Families with the birth of a child, pensioners, persons with disabilities, and other socially vulnerable groups have the right to housing.

            The state undertakes to ensure that these categories of citizens obtain housing, or at least assist them in doing so. One of the main ways to obtain housing is through mortgage lending. Other methods include the construction of free housing for low-income families.

Article 87.

The Caliphate guarantees the protection of the interests of consumers and persons entitled to use, ensuring by effective means their safety, health and their legitimate economic interests.

Comment:

            This article addresses consumer rights issues. Consumer rights can be seriously violated during the sale and service of goods sold, which is why the Main Law has identified these regulations in a separate article. The primary condition for protecting consumer rights is informing consumers about products and how they can protect their rights.

Article 88.

            Everyone has the right to judicial protection of their rights and freedoms.

            No exceptions to this provision are permitted.

            The trial must be speedy and fair, taking into account the gravity of the rights violated.

Comment:

            Every person within the Caliphate has the right to judicial protection of their rights and freedoms. There are no exceptions to this right. The right to judicial protection is the first and last guarantee against potentially incorrect decisions by administrative authorities. To protect rights, the court is obligated to take all possible measures, no matter how impossible they may seem at first glance.

            The qadi’s court must be swift and fair in protecting violated rights. Cases involving improper decisions by public authorities are typically heard in administrative tribunals. However, the law, in addition to providing for a variety of methods for hearing claims, also provides for various judicial instances.

Article 89.

            All authorities of the Caliphate are obliged to respect the fundamental rights and freedoms of man and citizen.

            In case of financial burden, public authorities are obliged to compensate for expenses.

Comment:

            State authorities are obligated to respect public rights and freedoms. If they are violated, the state must do everything possible to restore them. The individual is the highest value in the Caliphate. This respect is also demonstrated in the Caliphate’s care for every citizen, every Muslim. This care extends even to convicted persons.

            When a financial burden is imposed, the state is obligated to compensate for the costs. For example, if houses are demolished to build a highway, the state is obligated to compensate for their cost and the cost of the land.

Part 4. Hisbah.

Comment:

            This section of Chapter Two introduces the Hisbah, an institution in the field of human rights protection. Western law recognizes a specialized civil body authorized to exercise this protection. Islamic practice, however, has developed an interdepartmental oversight body. This body allows for the rapid and effective resolution of protection issues. The Hisbah is a federal interdepartmental oversight body.

Article 90.

The Hisbah is a federal administrative body with the functions of implementation and control in the field of human rights.

Hisbah was created for the purposes of:

• Consideration of applications from citizens containing complaints against government agencies.
• Protection of citizens’ rights.
• Analysis and verification of the legality of adopted administrative decisions.

Comment:

As already mentioned, the Hisba is a federal interdepartmental oversight body for the protection of human rights. It is a purely Islamic legal phenomenon. The purpose of the Hisba is to protect citizens’ rights by reviewing complaints and exercising administrative oversight on its own initiative. The Administrative Code establishes deadlines for reviewing administrative complaints, review procedures, and complaint review bodies.

Article 91.

The Hisbah is headed by the Muhtasib Aam, who is the head of the Muhtasibs of the Emirates.

The Muhtasib Aam is appointed and dismissed by the Caliph after consultation with the Majlis al-Shura.

Every year the Muhtasib Aam reports on his activities to the Majlis al-Shura.

Comment:

The Hisbah comprises the central Hisbah Union and territorial bodies in the Emirates. The Hisbah is headed by the Muhtasib Aam, and the Hisbahs of the Emirates are headed by Muhtasibs. The Majlis Al-Shura has adopted a special law on the activities of the Hisbah. The Muhtasib Aam is appointed and dismissed by the Caliph after consultation with the Majlis Al-Shura. Therefore, he reports directly to the Caliph due to the special importance of this position. The Muhtasib Aam reports annually on his activities to the Majlis Al-Shura. Members of the Majlis Al-Shura may themselves demand a report and conduct a parliamentary investigation into the activities of the Muhtasibs.

Article 92.

            The muhtasib has the right to suspend the decision of any administrative body until a court decision is made.

The muhtasib may request any necessary information.

The muhtasib should not handle the case that has been submitted to the court or that is being handled by the relevant authority.

Comment:

            The muhtasib may suspend the decision of any administrative body, meaning the muhtasib aam may suspend the decision of a ministry. The muhtasib of an emirate is the territorial body of the ministry within the emirate. The muhtasib has the right to request any necessary information for the consideration and proper resolution of an administrative case. The muhtasib cannot resolve an administrative case if it has been submitted to court or if another muhtasib is already handling it.

Part 5. Human Rights Defender

Comment:

            This part of the second chapter is, one might say, purely Western. The statute on the human rights defender was developed in accordance with best practice. Islamic doctrine began to allow for the establishment of such an institution. This institution can be classified as more of a public institution than an administrative one, as is the case with hisba. It is also an interdepartmental body and reviews complaints. The only difference is that the human rights defender focuses specifically on protecting human rights, rather than on fine-tuning administrative mechanisms and the administrative apparatus.

Article 93.

The Human Rights Defender examines cases of human rights violations that come to his attention.

Within the limits of his authority, he takes measures to restore the right.

A human rights defender defends rights regardless of differences in gender, religion, or nationality.

Comment:

The Human Rights Defender examines and resolves human rights issues. An important condition is that he or she examines cases brought to his or her attention publicly, not anonymously. The Human Rights Defender has the right to consider any matter related to human rights violations in the Caliphate.

The Human Rights Defender’s powers include a wide range of enforcement actions, including warnings, decisions to overturn decisions, decisions to amend the terms, fines, repeal of regulations, and appeals based on specific circumstances. The most powerful decision is the repeal of a regulatory act. The Human Rights Defender can completely overturn any act, from ministerial decisions to suspend government decisions and laws pending a court decision based on human rights violations.

The right to defense is universal. It knows no exceptions. Even a convicted person can defend their rights in this manner, and their right to defense cannot be denied. Refusal, as specifically stated, is not permitted on the basis of gender, religion, or nationality.

Article 94.

The Human Rights Defender is elected for the term of office of the Majlis al-Shura and can be re-elected an unlimited number of times.

The human rights defender has the right to request and receive mandatory information from all government agencies about the violated right.

The Human Rights Defender may overturn a decision of government authorities on the grounds of human rights violation, but this cannot be contrary to Sharia and the Basic Law.

Comment:

            The Human Rights Defender is elected for the term of the Majlis al-Shura, and this is the most eloquent evidence of its parliamentary nature. The Human Rights Defender is an essential link in parliamentary oversight, and although directly independent from parliament, he or she nonetheless serves its interests. The Basic Law stipulates that the Human Rights Defender may be re-elected as an elected official an unlimited number of times.

            To ensure their activities, the Human Rights Defender has the right to imperatively demand compliance with their requests regarding the circumstances of the matter on which they are making a decision. The request must be reasoned and relate solely to the Human Rights Defender’s matter.

            The Human Rights Defender can overturn decisions of government bodies based on human rights violations. Such decisions include all acts of executive bodies, starting with ministries. Government acts can only be suspended by the Human Rights Defender, and the court must review the matter as soon as possible, or more precisely, within one week.

Article 95.

            A human rights defender cannot be prosecuted without the consent of the Majlis al-Shura.

            The Human Rights Defender is independent in his activities from all government bodies.

Comment:

            Due to his special status, the Human Rights Defender enjoys immunity from prosecution. Only the Majlis al-Shura can approve his prosecution. The Attorney General of the Caliphate may submit such a request, and the Majlis al-Shura considers the matter within a week. If the decision is negative, the request can only be resubmitted after a year.

            The Human Rights Defender is legally independent of all government bodies. No one has the right to issue binding instructions to him. This is the most important element of his independence, in addition to the fact that he is funded from the state budget.

Chapter 4. Majlises.

Comment:

            This fourth chapter addresses Muslim representation. This is perhaps the most significant chapter in the Basic Law. Its presence allows us to speak of democracy as the essence of the Caliphate; it builds the entire system of state power emanating from Muslims. The Majlis system enables the harmonious functioning of the entire structure of power in the Caliphate.

            The Caliphate is based on representation, and this principle permeates all Islamic thought. Another issue is that, in the Islamic concept, sovereignty belongs to Allah, but He entrusted it to Muslims for the best management of their affairs, and they are responsible for it until the Day of Judgment. In principle, the Caliphate can be defined as a representative, consultative form based on consent. This is indicated both by the doctrine and the Basic Law itself.

Part 1. Majlis al-Ummah.

Comment:

            The Majlis al-Ummah is, first and foremost, an ecumenical body. That is, it is the Ecumenical Council of Muslims, and this is its very special role. This explains the concept of the Caliphate as a state of all Muslims and a state in whose political life all Muslims participate. The Majlis al-Ummah signifies the supreme constituent authority of Muslims in the Caliphate.

Article 96.

            The Majlis al-Ummah is the universal representative body of the supreme constituent authority of the Caliphate.

            His powers are inviolable and sacred.

            No one may encroach on the rights of the Majlis al-Ummah; any encroachment is punishable by the Muslim authorities.

Comment:

            As stated above, the Majlis al-Ummah is an organ of all Muslims, not just Muslims of the Caliphate. This very provision allows it to be referred to as the state of the ummah. The Majlis al-Ummah is based on elections, as this is most consistent with the Islamic spirit, and the appointment of delegates to this Majlis is not permitted, regardless of the justification.

            The powers of the Majlis al-Ummah cannot be usurped. No other body can make decisions in its name, even in times of grave distress for the Ummah. Therefore, it is clearly stated that its powers are inviolable and sacred. No one may encroach on the decisions of the Majlis al-Ummah. The exception is the new Prophet of all Prophets, who speaks with Allah.

Article 97.

            The Majlis al-Ummah consists of members of the Majlis al-Bay’ah and the Majlis al-Da’awa.

            The decisions of the Majlis al-Ummah are final and have supreme authority.

No one has the right to challenge the decisions of the Majlis al-Ummah.

Comment:

            The Ummah Assembly consists of members of the Bay’ah Assembly and the Dawah Assembly. This means that when they hold a joint session, they act in a new capacity. The voting procedure and the procedure for exercising their powers are the same as in the Bay’ah Assembly and the Dawah Assembly.

            The decisions of the Majlis al-Ummah are final, but they cannot contradict the aqidah, and they can be questioned by a new Prophet of all Prophets, should one arise. Only the Majlis al-Ulama can challenge these decisions, and this is a truly dangerous and extraordinary situation, fraught with the possibility of unrest and a seizure of power. The mechanism for such an eventuality has not been developed, and it is extremely difficult to foresee. This should not happen by nature.

Article 98.

            Decisions of the Majlis al-Ummah are taken by a three-quarters majority of votes.

The decision of the Majlis al-Ummah can only be changed by the Majlis al-Ummah itself or by the Caliph in the hour of grave calamity of the Ummah.

In the latter case, the Majlis al-Ummah should be convened at the earliest opportunity.

Comment:

            Decisions of the Majlis al-Ummah are adopted by a three-quarters majority of its members. Complete unanimity is impossible. All decisions of the Majlis al-Ummah also require a majority vote. Only the Majlis al-Ummah itself can change its decisions. In principle, the Fundamental Law provides for a legal solution to a difficult situation in which the Caliph himself can make a decision. However, this situation is caused by military and political reasons, not religious ones. In such a case, the Caliph is obliged to convene the Majlis al-Ummah at the earliest opportunity, and this opportunity is urgent.

Article 99.

            The exclusive competence of the Majlis al-Ummah includes: a new understanding of the Sharia and the social foundations of the Quran, the acceptance of the Basic Law and its amendment.

The Majlis al-Ummah can form new temporary authorities in the hour of grave calamities of the Ummah.

Comment:

            As follows from this article, the Majlis al-Ummah has exclusive jurisdiction over new understandings of Sharia, the adoption of the Fundamental Law, and its amendment. Sharia as the basis of law is subject to change only by the Majlis al-Ummah, as is the Fundamental Law as the most fundamental earthly law, but not the earthly understanding of divine law.

            The Majlis al-Ummah can form new authorities in times of grave distress for the Ummah. Understanding this moment is a complex legal issue. This includes a state of emergency or a constitutional crisis. But the solution lies largely in the moral and political sphere, rather than in the legal one. It is difficult to say in principle what these new authorities might be; the main thing is that their creation allows for a quick and painless exit from the crisis.

Part 2. Majlis al-Shura.

Comment:

            This section is devoted to the issues of parliament in the Caliphate – the Majlis al-Shura. According to Western legal doctrine, this is a typical parliament with typical functions. In Islam, the most important aspect of parliament is the Islamic spirit of the laws. In accordance with the principle of consultation, parliament consults the Caliph, who then carries out these consultations. The Majlis al-Shura occupies a central place among the representative bodies in the Caliphate, and its defining function is the enactment of laws (nizams).

Article 100.

            Majlis al-Shura is the permanent representative legislative body of the Caliphate.

            The Majlis al-Shura has the supreme right to enact laws (nizams).

Comment:

            The Majlis al-Shura is the permanent representative legislative body of the Caliphate—that’s the definition given by law. This means that this body operates on a permanent, professional basis, is based on representation, and has legislative functions.

The Majlis al-Shura is the Majlis with the most extensive powers; it passes laws. This right can be considered the highest authority of representative bodies. No one may speak on behalf of the Majlis al-Shura or pass even temporary laws. Appropriating legislative powers is punishable and undermines the authority of the government.

Article 101.

            The Majlis al-Shura consists of 420 members.

            Members of the Majlis al-Shura are elected for a term of 5 years from single-member union constituencies.

            The voting age is set at 18 years.

Comment:

            The said article establishes that the number of members of the Majlis al-Shura is 420. This number is optimal for the performance of legislative functions.

            Members of the Majlis al-Shura are elected for a five-year term in single-member constituencies. To win, they must secure over 50% of the constituency’s votes. Therefore, members of the Majlis al-Shura are elected by a plurality system. A proportional system, as is generally believed in the Caliphate, is incapable of ensuring genuine representation.

            The only requirement for active suffrage is the voting age of 18. Neither gender, nor nationality, nor religion can be considered as qualifications. At 18, a person is already able to make an informed choice and is able to vote in accordance with their views.

Article 102.

            The Khalifa, Majlis al-Shura, and Majlis al-Daawa may initiate legislation.

            The introduced bill must be considered within a month.

Comment:

            The exclusive right to initiate legislation belongs equally to the Caliph, the Majlis al-Shura, and the Majlis al-Dawa. This means that the Majlis al-Shura itself, as well as two external entities, can initiate legislation. The Caliph’s office submits legislation on his behalf.

            The proposed bill must be considered within one month by the Executive Shura of the Majlis al-Shura and included in the Majlis’ agenda. This rule does not apply during recess, in which case the period is not interrupted and continues to run from the beginning of the session.

Article 103.

Voting takes place in three readings.

            In the first reading, the text of the bill itself is voted on, in the second – amendments, and in the third – the final version.

            The law is adopted by a two-thirds majority of votes.

Comment:

            Any bill is voted on in three readings. The Executive Shura of the Majlis al-Shura schedules a hearing for the bill. In the first reading, the text of the bill itself is voted on as the basis. It is then sent to the committees and commissions of the Majlis al-Shura for revision. This revision lasts for six months, followed by a vote on the text of amendments. Finally, the final version is voted on in the third reading.

            A law is adopted by a two-thirds majority. According to the established procedure, two-thirds means two-thirds of the number of deputies, but another option is also possible, and the Basic Law allows for this, where two-thirds is counted as the number of deputies present.

Article 104.

            A member of the Majlis al-Shura cannot be held criminally liable without the consent of the Majlis al-Shura.

            The decision to prosecute is taken by the Majlis al-Shura upon the recommendation of the Prosecutor General.

Comment:

            A member of the Majlis Al-Shura may be subject to criminal prosecution, meaning their immunity from prosecution will be lifted during their term of office, only with the consent of the entire Majlis Al-Shura. The Attorney General submits a proposal to the Majlis Al-Shura. This proposal must be reviewed within a week. If the decision is negative, the proposal can be resubmitted a year later.

Article 105.

            In the Majlis al-Shura, political parties form their own factions.

            The Majlis al-Shura adopts the regulations of its self-government and forms the Administrative Shura of the Majlis al-Shura.

            Members of the Majlis al-Shura may form committees and commissions for legislative work.

Comment:

            In the Majlis al-Shura, political parties form their own representation in the form of factions (associations of members of parliament). Factions have certain rights to distribute positions in the Majlis al-Shura, can submit bills and proposals, and can issue inquiries.

            The Majlis al-Shura enjoys internal autonomy. The main document regulating the internal activities of the Majlis al-Shura is the Rules of Procedure. The Majlis al-Shura is headed by the Executive Shura, which includes the Speaker of the Majlis, his deputies, and representatives of the factions. The Executive Shura represents the Majlis al-Shura in organizational, technical, and informational matters.

            The primary mechanism for drafting bills is the Majlis al-Shura committees and commissions. When the Majlis begins its work, positions are assigned according to representation. Each committee is responsible for its own area of work, and only it can finalize the bill within its scope.

Article 106.

A member of Majlis al-Shura must:

• Be a citizen of the Caliphate by origin in accordance with the law.
• Be a qualified voter in accordance with the electoral law.
• Be at least thirty calendar years old on election day.

Article 107.

Elections for a new Majlis al-Shura must take place within sixty days of the expiration of the said period.

Members whose terms have expired may be re-elected.

The term of office of the Majlis al-Shura may be extended only in cases of extreme necessity, during war and in accordance with the law.

Article 108.

If for any reason a seat in the Majlis al-Shura becomes vacant before the end of its term, the vacancy will be filled by election within two months of its announcement. The new member’s term will be valid for the same period as their predecessor.

If a vacancy occurs within six months of the end of the legal term of the Majlis al-Shura, it will not be filled.

Article 109.

The Majlis al-Shura meets annually for at least eight months. The session cannot be adjourned until the budget has been approved.

Article 110.

The Majlis al-Shura begins its regular session in October of each year upon convocation by the Caliph. If the decree convening it is not issued by the first of the month, the session is convened at 9:00 a.m. on the third Saturday of that month. If such a day falls on an official holiday, the Majlis al-Shura convenes the following morning.

Article 111.

The Majlis al-Shura may be convened by decree for an extraordinary session if the Caliph deems it necessary or if it is approved by a majority vote of the members of the Majlis al-Shura.

At an extraordinary session, the Majlis al-Shura considers only the issues for which it was convened or considers additional issues with the consent of the government of the Caliphate.

Article 112.

Any meeting of the Majlis al-Shura held at a time or place other than the designated time is considered illegal. Any decisions made under the law will have no legal force.

Article 113.

Before assuming duties in the Majlis al-Shura or its committees, a member of the Majlis al-Shura takes the following oath in an open session:

“I swear before Almighty God to be faithful to the Caliphate and the Caliph, to honor the Constitution and laws of the State, to protect the freedom, interests and property of the people, and to fulfill my duties honestly and truthfully.”

Article 114.

At its first meeting, the Majlis al-Shura elects a Chairman and Vice-Chairman from among its members for the entire term. If the position becomes vacant, the Majlis al-Shura elects a successor for the remainder of the term.

In all cases, the choice is made by a majority vote of the members present. If a majority is not achieved in the first vote, a subsequent election will be held between the two candidates, with the one receiving the most votes. If more than two candidates receive an equal number of votes, all of them will participate in a second vote. In this case, the candidate with the most votes will be elected. If the votes in the final vote are tied, the choice will be made by lot.

The first meeting before the elections is chaired by the oldest member of the Majlis al-Shura.

Article 115.

During the first week of its work, the Majlis al-Shura forms the committees necessary for its functioning.

The committees may carry out their duties during the recess of the Majlis al-Shura so that their recommendations can be taken into account when the Majlis al-Shura is reconvened.

Article 116.

Meetings of the Majlis al-Shura are held openly, although they may be held in secret at the request of the government, the Speaker, or the Majlis al-Shura itself. Debates at such a request will be held in secret.

Article 117.

For a meeting of the Majlis al-Shura to be legally valid, more than half of its members must be present.

Decisions are made by a majority vote of the members present, except in cases where a special majority is required. If the votes are tied, the proposal is considered rejected.

Article 118.

Every member of Majlis al-Shura may ask the Prime Minister and ministers questions regarding their official duties.

And only the person who asked the question can comment on the answer.

Article 119.

Each minister is responsible to the Majlis al-Shura for the affairs of his ministry.

If the Majlis al-Shura decides to express no confidence in a minister, he is considered to have resigned from the day of the vote on the expression of no confidence and must immediately resign from all official powers.

A vote of confidence in a minister is only taken at their request or upon a petition signed by ten members, submitted after debate in response to a question concerning the minister. A vote of no confidence in a minister is passed by a majority vote of the Majlis al-Shura members, excluding ministers.

Article 120.

The Caliph opens the annual session of the Majlis al-Shura, where he delivers a speech reviewing the country’s situation and important state issues of the previous year. He also outlines projects and reforms to be undertaken.

Article 121.

The Caliph may dissolve the Majlis al-Shura by decree, stating the reasons for the dissolution. However, the Majlis al-Shura cannot be dissolved repeatedly for the same reasons.

In the event of the dissolution of the Majlis al-Shura, elections for a new one must be held no later than two months from the date of its dissolution.

If elections are not held within this time, the composition of the old Majlis al-Shura will be restored, which will have full constitutional rights.

Article 122.

A member of Majlis al-Shura represents the entire Ummah (Islamic nation).

He protects public interests and, while performing his duties in the Majlis al-Shura or in its committees, is not subordinate to any authority.

Article 123.

A member of Majlis al-Shura has the right to initiate legislation.

No law proposed by a member of Majlis al-Shura and rejected by him may be reintroduced during the same session.

Article 124.

The Majlis al-Shura shall always have the right to appoint investigation committees or to authorize one or more of its members to investigate any matter within their competence.

Ministers and all government officials must provide any required evidence, documents and reports.

The Investigation Committee has the right to submit the materials of its investigation to the court.

Article 125.

The Majlis al-Shura shall establish the rules of procedure for the work of its committees, the rules of discussion, voting, submission of requests and all other functions specified in the Constitution.

The regulations specify sanctions for any member who disturbs the order or is absent from the meetings of the Majlis al-Shura and committees without a valid reason.

Part 3. Majlis al-Ulema.

Comment:

            This chapter concerns the Majlis al-Ulema. This body is called upon to evaluate all legislation for its conformity with the spirit of Islam. It is a body of the clergy, not of the corporate class; it is composed of clergy serving the needs of society and guiding it.

This body’s position is exceptional, as it has the right to interpret Sharia law, which has the force of law. In Western terms, this institution could be considered a spiritual censorship body in a theocratic state; in Islam, however, it represents assistance to Muslims from the clergy.

Article 126.

            The Majlis al-Ulema is the highest representative body of the clergy.

            The number of ulema in the Majlis al-Ulema is 15 mujtahids.

            The Ulema in the Majlis al-Ulema are elected by the Majlis al-Ummah for a term of 9 years.

Comment:

            According to the Fundamental Law, the Majlis al-Ummah refers to the highest representative bodies, not of all Muslims, but of the clergy, the spiritual leaders who convey divine law to Muslims. The Majlis al-Ulemah is part of the system of supreme majlises of the Caliphate and is its organic and essential element. The Majlis al-Ulemah allows us to speak of the full conformity of laws with the spiritual foundations of society.

            The Majlis al-Ulema consists of 15 mujtahids, headed by the Sheikh ul-Islam, the spiritual leader of Muslims. All are distinguished and recognized scholars and theologians, possessing unquestionable authority. Decisions of the Majlis al-Ulema are made by a three-quarters majority of its full membership.

            The ulema of the Majlis al-Ulema are elected at a meeting of the Majlis al-Ummah. Their term of office is nine years, with the right to re-election by virtue of their superhuman understanding of God.

Article 127.

            The Majlis al-Ulema can veto any law and decision of state bodies until the decision of the Majlis al-Ummah.

            The Majlis al-Ulema monitors the compliance of adopted laws with the Quran and Sharia.

            Majlis al-Ulema has the exclusive right of ijtihad.

Comment:

            The Majlis al-Ulema has the right to veto any legislation, but this decision may be reviewed by the Majlis al-Umma. Within one month of the law’s adoption, the Majlis al-Ulema may veto it or request amendments or revisions, but if this occurs later than this period, the law is considered approved by the Majlis al-Ulema. The Majlis al-Ulema has supreme authority even over the Majlis al-Ulema, whose opinion must be taken into account even there.

            The Majlis al-Ulema has the exclusive right of ijtihad, that is, a human interpretation of divine law. This is a human understanding of legal law and a human understanding of the divine law of aqidah. This right can be considered exclusive.

Part 4. Majlis al-Daawa.

Comment:

            The Majlis al-Dawa is considered the fifth highest parliament of the Caliphate. It is the upper house of parliament, with the Majlis al-Shura serving as the lower house. The Majlis al-Dawa can be considered both the territorial representative bodies of the sultanates and the federal union. The Majlis al-Dawa reviews legislation but cannot veto it. Its dissent can be overridden by a second vote of the Majlis al-Shura.

Is it necessary to form Majlis al-Daawa?

The Majlis al-Ulema is a clerical body in an Islamic state and has advisory functions to express the opinions of clergy on various issues of public life.

So is the Majlis al-Da’wa necessary in this case? We believe so.

The Majlis al-Dawa is a Dawah Chamber composed of eminent ulama (Islamic scholars) who review bills for their compliance with the fundamental and accepted Sharia principles governing Islamic governance and society. It is advisable to include clergy in this chamber, but their membership should not exceed one-third.

Article 128.

            The Majlis al-Da’wa is the supreme oversight body that complements the Majlis al-Shura in the matter of passing laws.

            The Majlis al-Dawa consists of the heads of the sultanates, who are members of it ex officio.

            Appointment to the Majlis al-Da’wa is made by the Caliph upon the recommendation of the head of the Majlis al-Da’wa.

Comment:

            This article explicitly states that the Majlis al-Da’wa is the supreme oversight body, complementing the Majlis al-Shura in the adoption of laws. This means that it is a body not based on direct representation and performs oversight functions. At the same time, it is a complementary institution among the Majlises.

            The Majlis al-Da’wah comprises the heads of the sultanates. Election to the position of head of the sultanate also signifies their membership in the Majlis al-Da’wah. The expiration of their term entails their resignation from the Majlis al-Da’wah. Thus, there is a constant rotation within the Majlis al-Da’wah. Appointments to the Majlis al-Da’wah are made by decision of the caliph, which is essentially binding and is made upon the recommendation of the head of the Majlis al-Da’wah.

Article 129.

            The Majlis al-Da’wah considers laws and has the power to veto them, which can be overridden by a second vote of the Majlis al-Shura.

The Majlis al-Da’awa has the right to demand an accountability from the government for the implementation of socio-economic development programs.

            The Majlis al-Da’wa as a whole or its members have the right to ask the minister any question about his activities, and the minister is obliged to answer comprehensively and clearly within a week.

Comment:

            The Majlis al-Da’wa has the right to veto a bill. However, this veto is overridable; to do so, the Majlis al-Shura must vote again on the bill. In this case, the Majlis al-Da’wa’s approval is considered granted. In principle, the chambers can establish a joint committee to reach agreement.

            The Majlis Al-Da’wa may request a government report. This report must be substantiated by information on socio-economic development programs and must be submitted in the form of a report within one month of the date of the Majlis Al-Da’wa’s request. The Majlis Al-Da’wa, as an organ, or at least 10 of its members, may ask the minister any question regarding his or her activities. The deadline for a response is one week from the date of receipt of the request.

Article 130.

            The Majlis al-Da’wa has the right to establish a Commission to investigate the activities of the Union departments.

All government bodies are obliged to facilitate the work of the Commission.

The commission’s decision is the basis for investigative actions.

Comment:

            The Majlis al-Da’wa has the right to conduct parliamentary investigations. The body conducting these investigations will be the Commission for the Investigation of Union Agencies. All government agencies must cooperate with the commission and provide it with any information. The commission may request any documents, subject to the requirement of maintaining state secrets. The commission’s decision necessarily serves as the basis for initiating investigative actions if a criminal offense is committed by state officials.

Chapter 5. Caliph.

Comment:

            Chapter Five defines the legal status of the caliph as the supreme head of state. The legal status of the caliph allows him to be considered precisely the head of state, personifying the Caliphate and representing it in international relations. The caliph has a fairly broad range of powers, but it is still impossible to speak of a presidential republic in the Western sense. Rather, it is more akin to a parliamentary republic.

What does the concept of «commander of the faithful» mean?

This title is recognized as the Islamic leader by the decision and consent of Muslims; it is not necessarily a caliph, it can also be an emir.

The Commander of the Faithful is a concept of personal and state leadership of an Islamic official, who may be either the head of state or the leader of a movement, by virtue of which he has done very significant deeds for the Islamic world and therefore possesses indisputable spiritual authority.

The Commander of the Faithful is an analogue of the concept of the Mahdi, only embodied «here and now» in an earthly form in the present time and including political leadership. Also of great importance is the recognition of such a figure by the Muslim Majlis, the assembly of Muslims with the consecration of the clergy.

Article 131.

            The Caliph is the supreme head of state, a symbol of its past and future greatness. He embodies the unity of Muslims and the continuation of the Islamic state tradition.

            The person of the Caliph is inviolable, he enjoys immunity from prosecution during his term of office and can be prosecuted after the expiration of his term of office only with the consent of the Majlis al-Ummah.

            The Caliph is elected for a term of 5 years by the Majlis al-Shura with the possibility of re-election to carry out his will and exercise his powers.

Comment:

            The Caliph is the symbol of the Caliphate’s past and future greatness. All the splendor of the state is expressed in him. He embodies the unity of Muslims through his actions. Through him, the state continues its traditions, thus preserving the vital connection between generations. The Caliph is the secular leader of all Muslims on Earth, elected by Muslims who consent to his rule.

            The Caliph enjoys, so to speak, enhanced immunity from prosecution. During his term of office, he cannot be held criminally liable. Only after his term of office has expired can the Majlis al-Ummah waive the Caliph’s immunity under extremely serious circumstances.

            The Basic Law stipulates that the caliph is elected for a five-year term, with the possibility of reelection. Grounds for reelection may be outstanding personal qualities and achievements in public administration. The caliph carries out the will of the Majlis al-Shura and exercises executive powers. In other words, the caliph carries out the will, and in this, his activities are limited by the supreme will of Muslims through their representatives.

Article 132.

            The candidacy of the Khalifa is proposed by the Majlis al-Ummah within 10 days from the date of vacancy of this position.

            The Majlis al-Shura is obliged to elect a caliph if the Majlis al-Ummah so requests.

Comment:

            The Caliph is elected by the Majlis al-Shura, but his candidacy is proposed by the Majlis al-Ummah, thereby expressing the consent of all Muslims to the rule of a new Caliph. The Majlis al-Ummah has 10 days to propose a candidate from the moment the position becomes vacant. The Majlis al-Ummah is obligated to elect the Caliph if the Majlis al-Ummah so requests; it cannot refuse. If the candidate is rejected, the Majlis al-Ummah has the right to elect the Caliph itself.

Article 133.

            The Caliph may not purchase or lease state property, including that sold or leased at public auction; nor may he, during his tenure as Caliph, be a member of the administrative council of any company, participate in commercial or financial transactions, or receive a salary from any company.

Article 134.

Before assuming office, the Caliph concludes a bay’ah with the Majlis al-Bay’ah, which contains, among other things, the following provisions:

«This treaty is concluded between the Caliph and the Majlis al-Bay’ah as the representative and voice of the interests of the Ummah. The treaty is valid for the duration of the Caliph’s election.

            The Caliph holds the supreme and sacred authority of the Caliphate. He is the Supreme Commander of the Islamic Armed Forces of the Caliphate. The Caliph acts as the symbol of the state in international Islamic relations.

The Caliph must preserve the unity of the state, uphold the purity of faith and Islamic law, care for the well-being of Muslims, maintain the purity of power, raise the greatness of the Caliphate in the global ummah, represent the interests of the Caliphate in international Islamic relations, and develop the cultural and historical heritage.

The ummah is obligated to obey its ruler in all his good endeavors as long as he observes the Sharia of Allah. If the head of state violates the Sharia, the highest authorities may remove the caliph and terminate the Bay’ah.»

Article 135.

            Only a Muslim by birth, over 35 years of age, of good character and honesty, and knowledgeable in Islamic sciences can be a Caliph.

            Exceptions to this are established by a special election law.

Comment:

            The law defines the qualifications for election to the position of caliph: a Muslim by birth, over 35 years of age, of good character and integrity, and knowledge of Islamic sciences. There is no experience requirement. The law may establish an exception to this rule in the case of a person of such outstanding merit that he or she will be recognized.

Article 136.

            The Caliph appoints ambassadors and envoys after consultation with the Majlis al-Shura, with the right of recall.

            The Caliph appoints the high command of the Islamic Armed Forces and is the supreme commander.

            The Caliph independently forms his Chancellery.

Comment:

            The Caliph is in charge of foreign relations and represents the Caliphate in international affairs. He concludes treaties on behalf of the Caliphate. The Caliph appoints ambassadors and envoys after consultation with the Majlis al-Shura, which, in this case, may not necessarily mean the consent of the Majlis al-Shura, but rather its information. The right of recall rests solely with the Caliph, without the consent of the Majlis al-Shura.

            The Caliph appoints and reassigns the high command of the Islamic Armed Forces and is himself the supreme commander. The Caliph appoints the Chief of the General Staff, district commanders, and so on. He approves deployment plans for the armed forces, the mobilization readiness plan, and the plans for building the armed forces.

Article 137.

            The Caliph signs the adopted laws within a week.

The Caliph has the right to veto a law. In such a case, the Majlis al-Shura has the right to override the veto with a two-thirds majority.

In this case, the Caliph is obliged to sign the law.

Comment:

            The Caliph signs adopted laws within a week. The starting date of the term is the date the law is approved by the Majlis al-Shura in the event of a repeat vote, or the date of approval by another Majlis. The Caliph may veto a law, but this veto is overridable. The Majlis al-Shura can override it with a two-thirds majority of the total number of deputies. In this case, the Caliph is obligated to sign the law. Therefore, the final authority to pass laws rests with the Majlises and the Majlis al-Shura.

Article 138.

The Caliph will be removed from office by a two-thirds vote of the Majlis al-Shura if he knowingly violates the provisions of the constitution or Sharia. Likewise, if it is determined that he violates the Bay’ah, the Bay’ah will be revoked by a two-thirds vote of the Majlis al-Bay’ah.

The Caliph may resign by submitting a letter of resignation signed by him in his own hand and submitted to the Majlis al-Shura.

In the event that the office of the Caliph is vacant, the Chairman of the Majlis al-Shura shall assume his powers until an election to fill the vacancy is held within 30 days from the date of the vacancy.

Article 139.

            The right of intervention of the Caliphate is applied in the following cases:

• Disruption of the normal functioning of government bodies.
• Armed rebellion.
• Threats to rights and freedoms.
• Failure of the Sultanate to fulfill its obligations to the Caliphate.

Article 140.

            The state of intervention is declared by the Majlis al-Shura upon the submission of the Caliph.

            The decision on the right must specify the territory in which it is introduced, the term, the powers of the government emir, and measures to restore control and governance.

Article 141.

            The authorities of the Caliphate must take all measures to control the authorities of the Sultanate to ensure that they fulfill their obligations and normalize the situation.

            The armed right of intervention is the last resort before defending the territorial integrity of the Caliphate and armed rebellion.

Article 142.

Measures of intervention rights:

• Introduction of military forces.
• Ending subsidies and collecting taxes directly from the Sultanate.
• Transfer of the Sultanate’s security services under direct control.
• Change of government bodies of the Sultanate.

Chapter 6. Government

Comment:

            This chapter introduces the legal institution of government into the political life of the Caliphate. It is no secret that classical Islamic political and legal doctrine did not recognize such an institution as government. The equivalent in the West is the administration in the United States. This means that ministers report directly to the head of state and are accountable to him. Modern Islamic scholars’ views support the possibility and progressiveness of such an institution. Government is a collegial body that heads the executive branch of power in the Caliphate.

Why did classical Islamic doctrine not recognize the institution of government?

Modern doctrine now allows for the existence of a government as a collegial executive body, but this was not previously the case. Islamic scholars previously viewed this phenomenon as unnecessary and an attempt to usurp power in the face of the caliph. The caliph rules directly through the grand vizier. Direct analogies can be drawn with the organization of power in the United States, where there is no government.

It’s worth noting that classical doctrine considered the department to be the primary governing body. The main departments were the court department, the finance department, and the military department. Today, the existence of ministries and administrative services is also recognized.

Paradoxically, according to doctrine, the position of «minister» cannot be called that. It can be called «acting minister until Judgment Day.»

Article 143.

            The Government or Council of Ministers is the highest federal executive body.

            The government may issue temporary nizams (laws) until they are accepted or rejected by the Majlis al-Shura on matters permitted by law.

            The government may issue nizams (laws) on administrative matters until they are accepted or rejected by the Caliph.

Comment:

            Part one of this article establishes that the government is the highest federal executive body. It follows that the government is at the head of the executive authority of the Caliphate. Therefore, the government occupies a special position within the system of federal governing bodies.

            The government can issue temporary laws, that is, regulations that have the force of law on the issues they authorize. This refers to cases where the Majlis al-Shura passes a special law that directly delegates this authority. However, the Majlis al-Shura is obligated to approve or reject any law passed by the government, meaning that such laws can only be passed in exceptional circumstances.

            The government may also issue acts on administrative matters having the force of law, until they are accepted or rejected by the Caliph.

This chapter describes the structure of the executive authorities in the Caliphate.

Article 144.

            Only a citizen of the Caliphate can be a minister.

            The Prime Minister and Ministers, before assuming their duties, must take the following oath to the Caliph:

            “I swear by Almighty God to be faithful to the Caliph, to serve the Ummah and to conscientiously fulfill the duties entrusted to me.”

Article 145.

            The Minister may not purchase or lease state property, including those sold or leased at public auction. He or she may also not, during his or her tenure as Minister, serve on the board of directors of any company, participate in commercial or financial transactions, or receive a salary from any company.

Article 146.

            The Council of Ministers shall be responsible for the management of all internal and external affairs of the State, except those which have been or will be entrusted to another person or another body in accordance with the Constitution or laws or regulations issued in accordance with it.

            The powers of the Chairman of the Council of Ministers, the ministers and the Council of Ministers are determined by regulations drawn up by the Council of Ministers and approved by the King.

Article 147.

            One minister may be entrusted with the leadership of one or several ministries, in accordance with the decree on his appointment.

Article 148.

            The Minister is responsible for the management of all affairs of his ministry and must submit to the Chairman of the Council of Ministers all matters outside his competence.

            The Prime Minister decides all issues within his competence and refers other issues to the Council of Ministers for consideration for making the necessary decisions on them.

Article 149.

            The Prime Minister and the Ministers sign the decisions of the Council of Ministers and submit them to the Caliph for approval in cases where this is provided for by this Constitution or a law or regulation issued on the basis of it.

Article 150.

            Oral or written orders from the Caliph do not relieve ministers from responsibility.

            In the event of the resignation or removal of the Prime Minister, all ministers shall be deemed to have thereby resigned or been removed.

            The Prime Minister and the ministers are collectively responsible to the Chamber of Deputies for the general policy of the state, just as each minister is responsible to the Chamber of Deputies for the activities of his ministry.

Article 151.

            The government is formed on the basis of the principle of parliamentary majority in the Majlis al-Shura.

            The candidate for Prime Minister is proposed by the Khalifa or the Majlis al-Shura itself.

Within a week from the date of the Caliph’s nomination, the Majlis al-Shura is obliged to consider this issue.

Comment:

            The government is formed based on a parliamentary majority, that is, the confidence of a majority of members of the Majlis al-Shura. For a government to be formed, the consent of the main political parties, representing the will of the majority of Muslims, is required.

            The right to propose a candidate for prime minister rests with the Caliph or the Majlis al-Shura itself. Within a week of the Caliph’s nomination of a candidate for prime minister, the Majlis al-Shura is obligated to consider the matter and either approve or reject the candidate.

Article 152.

            The Prime Minister’s candidacy is approved by a two-thirds majority of the Majlis al-Shura.

The Majlis al-Shura may vote on each ministerial candidate.

Comment:

            The prime minister’s candidacy is approved by a two-thirds majority of the Majlis al-Shura, and as is customary in parliamentary practice, the factions first agree to vote on the candidate, and then the vote takes place. In the event of sharp disagreements and the absence of a package agreement, the Majlis al-Shura may vote on each minister’s candidacy.

Article 153.

The Majlis al-Shura has the right to pass a resolution of censure by a two-thirds majority. In such a case, the government is obligated to resign.

In this case, the Majlis al-Shura is obliged to propose a candidate for a new prime minister to the Khalifa for approval.

If the Caliph rejects the candidate, the Caliph himself has the right to appoint a new prime minister.

Comment:

            Parliament has the right to dismiss the government. The mechanism for such a decision regarding the government’s political responsibility is a resolution of censure, that is, an act of no confidence in the government by the Majlis al-Shura. The resolution must receive a two-thirds majority of the Majlis al-Shura members. If such a decision is made, the government must resign within a week.

            The Constitutional Assembly has adopted a constructive vote of no confidence. When voting on a resolution of censure, parliament is required to propose a new prime minister; otherwise, the resolution is invalid. The Caliph may reject the prime minister proposed by the Majlis al-Shura and decide on the appointment of the prime minister himself.

Article 154.

The Union Government pursues a unified socio-economic policy, forms the budget, participates in ensuring the security and defense of the state and society, and directs the activities of union agencies.

Comment:

            The powers of the Union government are general and derive from the Caliphate’s jurisdiction over the sultanates. The most general issues include, for example, budgeting. During the preparation of the Basic Law, the need to include a chapter on public finances was expressed due to the particular importance of this issue, but it was later agreed that it could be reflected in the Budget Code.

            The government participates in ensuring the security of the state and society, taking measures within its authority. The government’s responsibilities also include implementing a unified socio-economic policy based on the country’s socio-economic development programs.

Article 155.

            The government may, by its decree, introduce a state of threat.

            A state of threat is declared when the functioning of support services is disrupted and the life and health of citizens is threatened.

Comment:

            The government may, by decree, introduce a state of threat as one of the mechanisms for ensuring national security. This is a specific regime for the functioning of government services and the rights and freedoms of citizens in a threatened area. Causes of a state of threat include: disruption of government agencies and threats to the life and health of citizens.

Article 156.

            A state of threat is introduced for a period of up to 60 days in one or more sultanates.

            When a threat is imposed, the territory into which it is introduced is declared a threat zone and is controlled by the government emir.

Comment:

            The formal characteristics of a state of threat are the duration (up to 60 days) and the territory (one or more sultanates). This means that a state of threat cannot be declared for a longer period or across the entire territory of the Caliphate. When a state of threat is declared, the territory in which it is declared is declared a threat zone, and a government administration is established there. The government administration in the threat zone is headed by a government emir. The government emir is appointed and dismissed by government decision.

Article 157.

            The government may, by its decree, introduce a state of emergency.

            A state of emergency is introduced for a period of up to 90 days in the territory of the Caliphate in the event of a threat to the life and health of citizens of the entire Caliphate and a disruption to the normal work and functioning of government bodies.

Comment:

            A state of emergency in the Caliphate is more serious and severe. The government declares it by decree. The formal characteristics of a state of emergency are that it can be declared for up to 90 days and covers the entire territory of the Caliphate. The reasons for declaring a state of emergency are the same as those for declaring a state of threat. The only difference is that the former refers to the disruption of vital public services, while the latter refers to the disruption of the functioning of government bodies.

Article 158.

            The Majlis al-Shura shall consider the matter within ten days from the date of the decision to introduce a state of emergency and may give its consent to introduce a state of emergency.

            The law adopted by the Majlis al-Shura establishes the duration of the state of emergency and the restrictions on the rights and freedoms of citizens.

Comment:

            The Majlis Al-Shura must review the matter and give its approval within 10 days of the government’s decision to declare a state of emergency. The Majlis Al-Shura’s decision must be enacted into law, establishing the duration of the state of emergency and specific restrictions on citizens’ rights and freedoms. It also specifies the bodies responsible for implementing it.

Article 159.

            If the authorities of the Sultanate fail to fulfill their obligations to the Caliphate, the government has the right to intervene in the affairs of the Sultanate on the basis of the law of Majlis al-Shura.

            The Government Emir exercises all governance on behalf of the central authorities in the Sultanate for a period determined by law.

            The government emir takes all necessary measures to restore governance and forms his own temporary administration.

Comment:

            This article discusses the right of federal intervention as defined by international law. The basis for this is the Sultanate’s failure to fulfill its obligations. This mechanism is implemented by the government based on a special law adopted by the Majlis al-Shura. During the imposition of a state of emergency, the government administration is headed by the government emir. He has the authority to take the necessary measures to restore control.

Chapter 7. Authorities.

Comment:

            This chapter points to additional organs of power, so to speak. These organs are essential to supporting the activities of the central, supreme organs of authority of the Caliphate. These organs include the economic and social shura, which addresses issues of socio-economic development; control bodies, which constitute a well-structured system of control; and defense, as a guarantee of independence and sovereignty.

Part 1. Economic and social shura.

Comment:

            The Economic and Social Shura is a vital body assisting the government in implementing a unified socio-economic policy. It has significant powers to coordinate the activities of federal agencies within its purview. The Economic and Social Shura is part of the executive branch and is part of its system.

Article 160.

            The Economic and Social Shura is an executive body.

            The Economic and Social Shura represents the Caliphate on economic and social issues in its relations with other countries.

Comment:

            As already noted, the Economic and Social Shura is part of the system of union executive bodies. It leads all work on strategic macroeconomic development, while the government acts as the implementing body in this area, reporting to it. The Economic and Social Shura represents the country on social and economic issues in relations with other states, which manifests itself, for example, in the conclusion of socio-economic agreements.

Article 161.

            The Chairman of the Economic and Social Shura is appointed and dismissed by the Caliph.

Economic and Social Shura:

• Considers projects for the socio-economic development of the country.
• Provides opinions on bills requiring additional appropriations.
• Establishes the principles of economic policy.
• Issues mandatory regulations on pricing policy issues.

Comment:

The Chairman of the Economic and Social Shura is appointed and dismissed by the Caliph. It also includes recognized experts on macroeconomic issues, public representatives, and heads of federal economic agencies. The Economic and Social Shura has the authority to issue binding regulations on pricing policy, meaning it directly regulates tariffs on behalf of the Caliphate. The Economic and Social Shura provides opinions on bills requiring additional appropriations, i.e., funding from international treaties and extra-budgetary sources.

Article 162.

            Shura is considering socio-economic development projects.

The project is presented annually by the Ministry of Economy and represents a program of the state’s macroeconomic policy.

Comment:

            A form of macroeconomic control and forecasting is the country’s annual socioeconomic development plan. This project is developed by the Ministry of Economy and represents the state’s macroeconomic policy program. Leading economists of the Caliphate consider it their duty to participate in its development.

Article 163.

            Shura provides opinions on bills whose implementation would require allocations from the reserve fund or reductions in other budget items.

            The economic and social shura makes its decisions in the form of resolutions and recommendations.

            The Shura’s resolutions are binding on all government bodies.

Comment:

            This article concerns the forms of shura decisions. Recommendations are not binding, but are always taken into account by all government bodies. A mandatory document is a resolution that has an executive and regulatory effect.

Part 2. Control bodies.

Comment:

            The system of oversight bodies allows the federal government to clearly and efficiently exercise oversight functions over the activities of executive bodies. This system is diverse and includes bodies with various powers and functions, all of which boil down to the primary one—oversight. These bodies constitute the federal oversight authority, a separate branch of government.

Article 164.

The Union Control Authority is headed by the Control Shura, the chairman of which is the Attorney General of the Caliphate.

The Union’s bodies of control power are the Union Prosecutor’s Office, the Union Accounts Chamber, and the Control Service under the Caliph.

Comment:

            The body that heads the Union’s oversight authority is expressly established. This is the Oversight Shura, whose chairman is the ex officio Attorney General of the Caliphate. The Oversight Shura, in principle, has coordinating and advisory functions, but it is not a decision-making body.

Article 165.

The Union’s Prosecutor’s Office constitutes a single centralized system with subordination of lower-level prosecutors to higher-level prosecutors and the Prosecutor General.

The Attorney General is appointed and dismissed by the Caliph with the consent of the Majlis al-Shura.

Comment:

            The Caliphate’s Public Prosecution Office is a single, centralized system; the creation of sultanate public prosecutor’s offices is prohibited. The Public Prosecution Office is headed by the Attorney General. The Attorney General is appointed and dismissed by the Caliph with the consent of the Majlis al-Shura. The Public Prosecution Office protects the interests of citizens and the state from criminal attacks and supports the prosecution of the state.

Article 166.

            The powers of the Prosecutor’s Office include representing the state and protecting its interests as defined by law; participating in the implementation of policies determined by state authorities in the area of combating and preventing criminal offenses; conducting criminal prosecution based on the principle of legality; and protecting democratic legality.

            The representatives of the prosecutor’s office are responsible magistrates who report to each other in the order of subordination and who cannot be transferred, temporarily suspended from office, retired or resigned, except in cases provided for by law.

            The appointment, induction, transfer and promotion of representatives of the prosecutor’s office and the application of disciplinary measures fall within the competence of the Higher Shura of the Magistracy.

Article 167.

            The Comptroller General of the Accounts Chamber is appointed by the Caliph with the consent of the Majlis al-Shura. His responsibilities include state financial oversight.

            The head of the Control Service under the Caliph is appointed by the Caliph. He oversees the legality of the activities of civil servants of the Union’s militarized civil service.

Comment:

            The Accounts Chamber verifies budget expenditures in accordance with the budget schedule. Its head is the Comptroller General, who is appointed and dismissed by the Caliph with the consent of the Majlis al-Shura. The Accounts Chamber is composed of auditors appointed by the Comptroller General, and they are accountable to him.

            The third body of oversight authority is the Control Service under the Caliph. It verifies the legality of the actions of the militarized bodies, or more precisely, their employees, in the performance of their duties. The head of the service is appointed exclusively by the Caliph.

Part 3. Defense.

Comment:

            Defense is a necessary and natural function of the state. Only by maintaining its defensive capability can the Caliphate be considered an independent and sovereign state. The basic nizam mentions jihad of the sword in defense, which is evidence of the Caliphate’s peaceful policy, where jihad of the sword is only possible as a retaliatory action. The development of the Islamic Armed Forces is also always a focus of state authorities and society.

Article 168.

Jihad of the sword in all its forms is the duty of Muslims in times of self-defense.

Jihad of the sword is incumbent upon every Muslim to defend the land of Islam and the Islamic order.

Comment:

            Jihad of the sword is possible only in self-defense as a retaliatory measure against aggression. And this position is fully consistent with Islamic doctrine. Jihad of the sword is the highest form of liberation struggle of Islamic peoples against foreign occupation. Jihad of the sword is incumbent upon every Muslim. It is their duty to Muslims and the land of Islam.

Article 169.

The Caliphate is responsible for building Islamic Armed Forces that are commensurate with its resources and capable of fulfilling the demands of jihad.

The Caliphate must take all necessary measures to enable the people to fulfill their duty of jihad.

Comment:

            The state pursues a flexible and consistent policy of building the Islamic Armed Forces. Jihad is understood as an armed struggle against aggression, and the entire Muslim nation participates in it. The state must help citizens fulfill their duty; it acts as the people’s ally in their jihad of the sword.

Article 170.

The Caliph is the Supreme Commander of the Islamic Armed Forces.

A Supreme Shura of Jihad and Defense must be established to determine the strategy for war and peace.

The composition of the Shura is determined by the Caliph, but the Majlis al-Shura has the right to remove any of the military leaders if there are signs of a crime until a decision is made by the prosecutor’s office.

Comment:

            This article once again establishes that the Caliph is the supreme commander of the Islamic Armed Forces. He has the ultimate authority to organize the armed forces and determine the state’s defense policy.

The main coordinating body for defense policy is the Supreme Shura of Jihad and Defense. The Caliph determines the composition of the Shura, and he can, by his own decisions, include or exclude any military commanders. The Supreme Shura of Jihad and Defense is responsible for the highest political planning of military operations during wartime. It includes the highest political and military leadership of the Caliphate.

The Majlis al-Shura has the right to remove or dismiss any of the military leaders by its own decision before the matter is considered by the prosecutor’s office if there are signs of a crime.

Article 171.

            The dispatch of the Islamic Armed Forces of the Caliphate outside the state is carried out by the Caliph with the consent of the Majlis al-Shura within 10 days from the date of the decision of the Majlis al-Shura.

            The presence of foreign armed forces is possible under a ratified international treaty in peacetime for a period specified in the treaty, for the purpose of cooperation and strengthening friendship.

Comment:

            The Caliphate’s armed forces may be used in peacekeeping operations outside the country only with the consent of the Majlis al-Shura. Following the Majlis’s decision, the troop contingent is dispatched by the Caliph within 10 days. The Caliph himself determines which units are sent abroad and their numbers, but they must be sufficient to accomplish the assigned tasks.

            The presence of foreign armed forces is only permitted under a ratified international treaty and during peacetime for the period specified in the treaty. This means that their presence is impossible during wartime.

Chapter 8. The judicial system.

Comment:

The following are some of the features of the Sharia judicial system.

Firstly, the defining structure of the Sharia judicial system is the division into courts of general jurisdiction and administrative tribunals, unlike the European legal system, which is divided primarily into courts of general jurisdiction and arbitration courts. It should be noted that this refers to the original doctrinal foundations, although the administrative court system began to spread in Europe in the last third of the 20th century.

Secondly, the Sharia judicial system does not have cassation as an appeal against final and binding court decisions. Only appellate appeals against court decisions deemed not to have entered into legal force are permitted.

Thirdly, supervisory proceedings are possible only at the initiative of the prosecutor or the court itself, but not of a party to the proceedings.

Fourthly, the presence of lawyers is not welcome in a Sharia court; a lawyer can prepare a complaint, but the plaintiff himself must present the factual circumstances without the assistance of a lawyer.

            The Caliphate’s judicial system is built on democratic principles and takes into account the changing needs of Islamic society. It has incorporated all global advances in this area. The judicial system is based on legislation derived from Sharia. The Caliphate’s judicial system includes the judicial system of the Union and the judicial systems of the sultanates. The existing courts allow them to be described as democratic and based on the rule of law.

Part 1. The Qadi’s Court.

Comment:

            The first part is devoted to both the fundamentals of the judicial system and its general structure. The court is one of the most important sources of conflict resolution in the legal field. The judicial system is structured to ensure optimal resolution of each specific case. The court provides the opportunity to finally resolve all disputes.

Article 172.

            Everyone has the right to appeal to the court for the protection of rights and freedoms.

The courts are independent and subject only to the law.

Comment:

            This article establishes that everyone has the right to judicial protection of their rights and freedoms, regardless of differences, and this right is inalienable. The court is obligated to resolve the issue of legal protection promptly and lawfully. Courts are independent in their activities and receive separate funding from the budget.

Article 173.

            All court proceedings must be public and must be held out of camera. This does not apply to cases where the court has ordered proceedings to protect private secrets, matters of honor, or for reasons of national security or propriety.

Comment:

            Court proceedings must be public and held in the courthouse. The term «camera» refers to a closed courtroom, a special room for closed court proceedings. Reasons for a closed courtroom may include private secrets, matters of honor, state security, and demands of propriety—that is, intimate details.

Article 174.

The appointment of special courts is not permitted.

However, military courts may be convened to try members of the Armed Forces for actions classified as crimes punishable only under military law.

For other acts they must be tried in civil court.

Comment:

            Special courts cannot be created; they are understood to be of an extraordinary, temporary nature. Such courts are generally political and cannot be created under any pretext. There is no system of military courts in the Caliphate; it is formed only in times of war or for trials under military law. Such courts are temporary in nature, being convened from among the permanent members for a specific hearing. Generally, military personnel file cases in civilian Sharia courts.

Article 175.

Enforcement of court decisions is the duty and obligation of every civil servant; failure to comply with court decisions entails liability under the law.

The law provides for voluntary fulfillment of the obligation to execute a court decision and imposes a duty of control on executive authorities.

Comment:

            The duty of every civil servant is not only to fulfill their official duties but also to facilitate the enforcement of court decisions. The law provides for a variety of measures to facilitate the enforcement of court decisions. Within 10 days of the court’s decision, citizens must voluntarily comply.

Article 176.

Qadi (judges) is a class of civil servants who have their own Islamic organs of internal governance of the community of judges.

            A qadi can only be a Muslim who has received special education and has reached the age of 25.

            In his activities, the qadi must be guided exclusively by the Sharia.

Comment:

            Judges constitute a class of civil servants. As such, they possess certain rights and responsibilities. Judges are entitled to free housing, are guaranteed the right to bear arms, and cannot be detained except at the scene of a crime without the consent of the qualification board. The class has its own internal self-governing bodies. These bodies are the qualification boards of judges and their appellate boards. Requirements also apply to the qadi. He must be a Muslim, have a relevant higher education, and be at least 25 years of age.

Article 177.

            Judges are irremovable; they cannot be transferred from one position to another, temporarily suspended from office, retired or resigned, except in cases provided by law.

            The Qadis are not responsible for their decisions except in cases provided by law.

            Judges, while performing their official duties, may not simultaneously perform any other functions in public or private organizations, with the exception of teaching and research work in the field of jurisprudence.

Article 178.

            While performing their duties, cadi may not be appointed to service commissions that are not related to the activities of the courts.

            The law may establish the incompatibility of the position of qadi in the performance of official duties with other positions or occupations.

Article 179.

            The appointment, installation, transfer and promotion of qadis and the application of disciplinary measures fall within the competence of the Higher Shura of the Magistracy.

Part 2. Courts of the Caliphate.

Article 180.

            The judicial system of the Caliphate is unified and includes the judicial system of the union and the judicial systems of the sultanates.

            The judicial system of the union includes the Supreme Sharia Court, the appellate courts of the emirates and district Sharia courts.

            The courts of the Caliphate make decisions based on the union laws of the Caliphate and the legislation of the relevant branch of law as a matter of union competence.

Comment:

            This article establishes the general structure of the Caliphate’s judicial system. It follows that the Caliphate’s judicial system includes the union’s judicial system and the sultanate’s judicial systems. These systems complement each other organically. The union’s judicial system includes three levels of courts: the Supreme Sharia Court, the Sharia courts of the emirates, and district Sharia courts. It is immediately clear from this that the judicial system does not include arbitration or administrative courts; such divisions exist within the courts. The Sultanate’s judicial system includes district Sharia courts and the Supreme Sharia Court of the Sultanate with its corresponding divisions.

Why does Sharia reject arbitration courts and approve the creation of a system of administrative courts?

Sharia, on the one hand, distinguishes between citizens and legal entities, and on the other, between the state. For the state, there is constitutional justice in the form of a constitutional court or council; for disputes with the state, there are administrative courts; and for disputes between citizens and legal entities among themselves, there are general courts. In the face of the state, Sharia does not distinguish between citizens and corporations; all are equal before the law.

Article 181.

            The judicial system of the sultanates includes the Supreme Sharia Court of the Sultanate, district appellate courts and district Sharia courts.

            The courts of the sultanates make decisions based on the laws of the sultanates and codes as codified acts of the relevant branches of law of the jurisdiction of the sultanates.

Article 182.

            The structure of constitutional justice in the sultanates can be formed in various forms, including:

• The Supreme Constitutional Chamber of the Supreme Sharia Court of the Sultanate.
• Constitutional Shura of the Sultanate.
• The Constitutional Chamber of the Supreme Sharia Court of the Sultanate.

In any case, the organization of constitutional proceedings in the sultanates is carried out in accordance with the laws of the Caliphate.

Article 183.

            The judicial administrative tribunals of the sultanates are part of the hisba system.

            The heads of territorial bodies of the Hisba do not have the right to overturn the decisions of judicial administrative tribunals.

            The Supreme Administrative Judicial Tribunal of the Sultanate heads the judicial administrative system of the Sultanate.

            Administrative proceedings at the union level are conducted by courts of general jurisdiction and the Supreme Sharia Court of the Caliphate.

Article 184.

            Arbitration courts do not form a separate system and are part of the Sharia courts.

Comment:

            The judicial system of the Caliphate is unified, therefore judicial administrative tribunals are part of the hisba system, and arbitration courts are part of the Sharia courts, forming corresponding divisions within them.

Part 3. Supreme Sharia Court of the Caliphate

Article 185.

The Supreme Sharia Court of the Caliphate includes:

• The Supreme Judicial Shura is a collegial body of the Supreme Sharia Court, a supervisory judicial body for general jurisdiction and for administrative tribunals.
• The Supreme Constitutional Chamber is a collegial body of the Supreme Sharia Court that resolves issues of judicial constitutional review.
• The Fatwa Commission resolves issues of judicial interpretation of laws and the generalization of judicial practice.
• The Chamber of Economic Affairs (as a second instance).
• The Chamber of Administrative Cases (as a second instance).
• The Criminal Cases Chamber (as a third instance).
• The Labor Chamber (as a third instance).
• Chamber for Cases Involving Foreigners (as a third instance).
• The Civil Chamber (as a third instance).

Comment:

Why should the Fatwa and Research Commission be part of the Supreme Sharia Court of an Islamic State?

A fatwa is a precedent-setting practice in fiqh, so codification of these opinions is necessary. Fatwas in law should be issued for the purpose of systematizing the law, not on trivial or incidental matters, and not on legal matters, but on religious matters. Fatwas should serve the goal of justly regulating Muslim affairs in Islamic society. Therefore, the creation of such a commission is highly advisable from a Sharia perspective in an Islamic state. Similarities can be drawn to the Resolutions of the Plenum of the Supreme Court in Russia.

Which is better: the Constitutional Shura or the Constitutional Court as a model of Islamic constitutional justice?

It seems preferable to use the Constitutional Shura, as this is consistent with the implementation of the Shura principle in the state-building of an Islamic state. Furthermore, constitutional oversight embodies the functions of a political arbitration body, so it is crucial that all major organs of state power be represented within it. This will ensure that its decisions are universally accepted. It should also be noted that the fundamental provisions of Sharia cannot be subject to review by the Constitutional Shura, as they are adopted by the Majlis al-Ummah by universal consent of Muslims for the purpose of shaping the world order of an Islamic society.

Article 186.

                  Judges of the Supreme Sharia Court of the Caliphate are appointed by the Majlis al-Da’wa without term limitation.

                  Judges at all levels of the Caliphate and the Sultanates are pre-appointed by the Higher Shura of the Magistracy without term limitation, except for judges of the Supreme Sharia Court of the Caliphate.

Article 187

                  The Fatwa Commission consists of fifteen members.

                  The members of the Fatwa Commission of the Supreme Sharia Court of the Caliphate are appointed by the Majlis al-Daawa for a term of 6 years with the possibility of re-election from among the recognized mujtahids.

                  The Fatwa Commission issues fatwas as binding conclusions when courts apply issues of judicial practice.

Article 188.

            The regional courts of appeal of the Emirates include:

• The Chamber of Economic Affairs (as the first instance).
• The Administrative Chamber (as the first instance).
• The Criminal Appeals Chamber (as a second instance).
• The Labour Appeals Chamber (as a second instance).
• The Appeals Chamber for Cases Involving Foreigners (as a second instance).

Comment:

To properly evaluate the Sharia judicial system, one must understand that the fundamental division of Sharia into private and public law is fundamental, and the court system follows directly from this. The most important are the public court system and the private court system. Also very characteristic is the division between domestic Islamic law and the law of nations, or international law.

It should be noted that according to Islamic doctrine, the Sharia judicial system looks like this:

1. The Supreme Judicial Shura, headed by the head of state, appoints judges and is the highest appellate court for the most significant cases.
2. The system of Sharia general courts:
3. The Supreme Sharia Court (consisting of the Constitutional Plenum, the Plenum, the Presidium (in the supervisory capacity), and panels for civil, criminal, cases involving foreigners, labor, and economic cases),
4. Regional Courts of Appeal of the Emirates (on decisions of district courts as a second instance and as a first instance in economic disputes),
5. district courts kadi.
6. The system of administrative Sharia tribunals, in Islam, divides law into private (relations between citizens) and relations with the state (public), that is, issues of public law are dealt with by a system of administrative tribunals, similar to the general court system:
7. The Supreme Administrative Sharia Tribunal (consisting of the Plenum, the Presidium (in supervisory capacity), and the boards for social, financial, and administrative affairs)
8. Regional Administrative Tribunals of the Emirates (as first instance).
9. A separate court for labor cases (relationships between employee and employer) — such a judicial system began to be accepted in the 20th century among Muslim scholars, although it does not fit into the system.
10. A separate court for disputes involving foreigners and non-Muslims as a separate judicial presence, although this is not entirely desirable.

The solution to this issue depends directly on the understanding of the essence of Sharia. If Sharia is understood as divine law, given in an unchangeable form, then the structure will be as follows. In this case, there will actually be two structures: one for Muslims and one for non-Muslims. For Muslims, the most likely arrangement is the Supreme Sharia Court, the Appellate District Sharia Court, and the primary (precinct) Sharia court (qadi). For non-Muslims, the Western European legal system and, accordingly, the judicial system. Typically, this includes the Supreme Criminal Court, district criminal courts, the Supreme Civil Court, and the Social and Labor Court.

Part 3. The Supreme Constitutional Chamber of the Supreme Sharia Court.

Article 189.

            The Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate is the highest and final body of constitutional justice.

            The Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate consists of thirteen members, seven of whom are appointed by the Majlis al-Shura and the rest by the Caliph.

            Judges of the Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate are appointed for nine years and may be appointed for a second term.

            The Chairman of the Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate is elected by the judges of the chamber.

Comment:

Sharia doctrine pays little attention to issues of constitutional justice, considering it more of a Western European innovation, as the assessment is based not on constitutionality but on conformity with the Quran and Sunnah—a fundamentally different approach. In Sharia, a specialized constitutional body, such as the Constitutional Shura, is most appropriate. The Constitutional Shura is a specialized constitutional body that reviews constitutional disputes for any inconsistencies and refers these disputes for resolution to a special judicial body—the Constitutional Plenum of the Supreme Court.

Half of the members of the Constitutional Shura could be appointed by the head of the Islamic state, and the other half by the Majlis al-Shura. The Constitutional Shura would confirm the existence of a dispute, and the matter would then be heard by the Constitutional Plenum of the Supreme Court. This plenum is a special meeting, with 15-20 members elected for two-year terms by members of the Supreme Court. The Constitutional Plenum of the Supreme Court is authorized to resolve constitutional disputes in accordance with the basic law. The decisions of this body are final and not subject to appeal.

Article 190.

            Judges of the Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate are guaranteed independence, irremovability, impartiality, and impartiality; they are subject to the same incompatibility requirements as judges of other courts.

            The law establishes immunity and other rules relating to the status of judges of the Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate.

Article 191.

A meeting of the Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate shall be valid if at least two-thirds of the members of the Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate are present.

Meetings of the Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate shall be convened as necessary by the Chairman of the Supreme Constitutional Chamber of the Supreme Sharia Court.

Article 192.

The Chairman and judges of the Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate are independent in the performance of their duties and are subordinate only to the Nizam.

No other acts are necessarily binding on them.

Any interference in their activities, as well as exerting pressure or other influence on them in any form, is not permitted and entails liability under the law.

Article 193.

The activities of the Chairman and judges of the Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate on matters of constitutional proceedings are not accountable.

No one has the right to demand from them an account of the exercise of their powers.

No one has the right to ask, and the Chairman and judges of the Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate do not have the right to express their opinion or provide advice on issues that are the subject of consideration by the Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate, except at a meeting of the Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate, before a final decision is made on them.

Article 194.

The Chairman and judges of the Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate may not, during their term of office, be arrested, subjected to forced detention, administrative penalties imposed by the court, or be brought to criminal responsibility without the consent of the Majlis al-Shura, except in cases of detention at the scene of a crime or the commission of serious crimes.

Article 195.

The powers of the Chairman, judge of the Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate shall cease due to:

1. satisfaction of the resignation request;
2. guilty verdict of the Supreme Sharia Court of the Caliphate, which has entered into legal force;
3. recognition of his incompetence by a court decision that has entered into legal force;
4. recognition of his death by a court decision that has entered into legal force;
5. his death;
6. violation of the oath, failure to comply with the demands of the Nizam, committing a dishonorable act incompatible with his high status;
7. appointments in violation of the requirements established by the Nizam;
8. expiration of the term of office fixed by the Nizam.

Article 196.

            The Supreme Constitutional Chamber of the Supreme Sharia Court of the Caliphate resolves disputes regarding the conformity of draft laws and adopted laws with the Nizam, disputes regarding the competence between government bodies, and the constitutionality of international legal treaties of the Caliphate.

Article 197

Participants in constitutional proceedings are recognized as persons and bodies on whose appeals constitutional proceedings were initiated:

1. Caliph.
2. Chairman of the Majlis al-Shura.
3. members of the Majlis al-Shura, numbering not less than one-fifth of their total number.
4. courts of the Caliphate.
5. state bodies and officials whose acts are being verified for constitutionality.

Article 198.

            The Supreme Constitutional Chamber of the Supreme Sharia Court is part of the political arbitration using conciliation procedures.

            The Supreme Constitutional Chamber of the Supreme Sharia Court may declare the enforcement of its decisions in the event of a government crisis.

Article 199.

            The Supreme Constitutional Chamber of the Supreme Sharia Court is transformed into the Supreme Court of Justice to hear cases of criminal prosecution of senior state officials.

Part 4. Higher Shura of the Magistracy.

Article 200.

The Higher Shura of the Magistracy is presided over by the Caliph.

The First Chairman and the Prosecutor General are rightfully members of the Higher Shura of the Magistracy.

The Minister of Justice is the vice-president by law. He can act as the caliph’s deputy.

Comment:

            This article establishes who is ex officio a member of the shura. These are the caliph, who presides over the shura, the first chairman of the shura, and the attorney general. The minister of justice is the vice chairman by law.

Article 201.

The High Shura of the Magistracy consists of two chambers, one of which has jurisdiction over judges and the other over prosecutors.

The Minister of Justice or the Caliph chairs the sessions of each chamber.

Seven members of the Chamber of Judges are elected by all judges from among persons belonging to the different categories of judicial magistracy, and seven by the Majlis al-Shura.

            The Chamber of Judges considers the admission to the magistracy, the appointment and transfer of judicial magistrates, their promotion, and disciplinary measures concerning magistrates.

Comment:

The High Shura of the Magistracy consists of two chambers: one chamber for prosecutors and the other for judges. Seven members of the chamber are elected by judges for five-year terms, and seven by the Majlis al-Shura, also for five-year terms. This appointment ensures balanced representation in this important procedure.

Article 202.

The Chamber competent for the Public Prosecutors shall comprise seven Public Prosecutors elected by all the Public Prosecutors from among the Public Prosecutors and seven members elected by the Majlis Al-Shura.

The powers of the Chamber of Prosecutors correspond to the powers of the Chamber of Judges.

Article 203.

The Higher Shura of the Magistracy may submit proposals to the Minister of Justice on all matters relating to the organization and functioning of services related to the administration of justice.

The Higher Shura of the Magistracy expresses its opinions to the Minister of Justice on draft laws concerning the judiciary, administration in the field of justice and other issues that are in one way or another related to the competence of the Higher Shura of the Magistracy.

Article 204.

                The Higher Shura of the Magistracy, through the Chambers, carries out admission to the Magistracy, promotes, and takes disciplinary measures.

                The commission for conducting the entrance competition and/or the competition for promotion at the end of its work compiles lists of those who have passed the competition, which are published in the Official Bulletin of the Ministry of Justice.

                After reviewing the results of the commissions’ work and possible complaints from the Minister of Justice or interested persons submitted to the Higher Shura of the Magistracy within thirty days from the date of publication of the lists, the Higher Shura of the Magistracy approves these lists or makes changes to them.

Comment:

The Chamber of Judges considers matters of promotion within the judiciary, disciplinary measures, and admission to the judiciary. The Chamber of Public Prosecutors consists of five prosecutors and five members elected by the Majlis al-Shura for five-year terms. This chamber has similar powers to the prosecutors.

Chapter 9. Territorial organization of the state.

Part 1. Emirates.

Article 205.

            The Emirates are formed to ensure better governance of the state by the union authorities.

            The decision to create or abolish emirates is made by the Majlis al-Shura upon the proposal of the Caliph.

            Within one month from the date of the Khalifa’s submission of the bill, the Majlis al-Shura is obliged to consider this issue.

Comment:

            An emirate is a federal district established by the federal center of the Caliphate for the purpose of effective governance. Emirates typically overlap in territory with sultanates. The decision to establish or dissolve an emirate is the exclusive prerogative of the Majlis al-Shura, but the Caliph submits the matter to it. The Majlis al-Shura is required to consider the matter within a month from the date the Caliph submits the bill.

Article 206.

            If the decision to change the borders of the Emirates is rejected, the issue may be reconsidered after one year from the date of the rejection.

            When creating emirates that require additional budgetary funds, the government’s opinion and its positive decision are required.

Comment:

            The Majlis Al Shura may reconsider the issue of changing the emirates’ borders one year after the date of the decision to reject the bill. The Caliph cannot contradict the will of the Majlis Al Shura and is obligated to comply. If the Majlis Al Shura decides to create an emirate, but this reorganization requires additional budgetary funds, then positive government approval for this step is required, in the form of a government statement confirming the feasibility of allocating funds.

Article 207.

            The head of the emirate is the emir.

            The Emir is appointed and dismissed by the Caliph after consultation with the Majlis al-Shura.

            The Majlis al-Shura can veto the candidacy of the emir and has the right to decide on the appointment or dismissal of an emir with the consent of the caliph.

Comment:

            This article explicitly states that the head of the emirate is the emir. He is appointed and dismissed by the Caliph. The Majlis al-Shura can veto, but cannot appoint itself; the consent of the Caliph is required. Therefore, these relations require a high level of culture and consensus for the sake of the common cause.

Article 208.

            The Emir heads the Shura of the Emirate.

            The Shura of the Emirate is appointed by the Emir and consists of 15 people from among the heads of territorial services of the union departments.

            The Shura of the Emirates is a consultative body.

Comment:

            The Emirate’s Shura is formed under the Emirate, consisting of 15 members from among the heads of territorial services of the Union’s agencies. The Shura is an advisory body, but it discusses all Emirate matters, and the Emir is obligated to take its opinions into account.

Article 209.

            The responsibilities of the emirate include: monitoring the implementation of decisions of the union bodies, coordinating the activities of territorial services of the union departments, caring for everyone in need, and determining the optimal structure of government bodies in the emirate.

Comment:

            This list of the emirate’s responsibilities is not exhaustive, but rather open-ended and includes the most important functions from a legislative perspective. Among these functions, oversight of the implementation of decisions of the union’s bodies is considered crucial.

Part 2. Sultanates.

Article 210.

            Sultanates are national states of Muslims that form a Muslim union.

            The Sultan must be a Muslim over 40 years of age, with a higher education, political wisdom and good character.

            The Sultan is elected for a term of 5 years by the Muslims of the national state.

Comment:

            Sultanates are Muslim federated peoples, subjects of a union, and national Islamic Muslim states. Thus, they are national-state units of the union state of the Caliphate. This article is a logical continuation of the article stating that the Caliphate is a union of sultanates. Due to its particular importance, it is also stipulated here that the sultanate, elected for a five-year term by the Muslims of the sultanate, must be a Muslim over 40 years of age, have a higher education, and possess political wisdom and good character.

Article 211.

            The Sultanate, while enjoying autonomy in matters of governance, must be democratic and Islamic in nature.

            The structure of the governing bodies and state power in the Sultanate must correspond to the Nizam.

Comment:

            The Basic Nizam clearly states that the Sultanate has autonomy in governing matters. However, it must also be democratic and Islamic in nature. These are the union’s primary fundamental demands on the Sultanate, and they must be met. There is also a more specific requirement, stemming from these two: the structure of government bodies in the Sultanate must correspond to the Basic Nizam of the Caliphate.

Article 212.

            In accordance with the wishes of the Muslims of the national state, the Sultan may occupy this position by inheritance.

            In this case, the parliament of the national state adopts a law on the order of succession to the throne.

            The Sultan, by right of inheritance, can exercise only those powers which are granted to him by the Nizam.

Comment:

            The Supreme Nizam of the Caliphate allows for the sultan to hold this position by inheritance. For this to be legally achieved, the parliament of the nation-state must pass a law on the order of succession to the throne. This law can only be passed by referendum and not by any other means. Furthermore, the sultan can only exercise the rights granted to him by the Supreme Nizam of the Caliphate.

Article 213.

            The Sultan signs the laws of the national state, initiates legislation, and appoints senior government officials.

            It is a symbol of the unity and loyalty of the national state to the Caliphate.

            The Sultanate’s withdrawal from the Caliphate is permitted only by decision of the Majlis al-Ummah.

Comment:

            This article examines the fundamental powers of the Sultan of the nation-state. These powers include signing laws of the nation-state, the right to initiate legislation, and the appointment of the Sultanate’s highest civil servants. The Sultan is the symbol of the Sultanate’s allegiance to the Caliphate. Secession of the Sultanate is possible, but only by decision of the Majlis al-Ummah and a positive referendum not only in the Sultanate itself, but throughout the entire Caliphate.

Article 214.

            The sultanate must have a parliament with legislative competence.

            The Majlis al-Shura of the national state is the legislative representative body.

The Sultan is not allowed to appoint members of the parliament of the national state.

Comment:

The Sultanate must have a representative legislative body—a parliament. The Sultanate itself has the right to establish the procedure for electing members of the Majlis al-Shura, but their appointment by the Sultan is not permitted.

Article 215.

            The Union’s responsibilities include:

• Unity of the customs territory.
• Adoption of the Basic Law and laws.
• Union citizenship.
• Management of union property.
• Granting political asylum.
• Union budget and taxes.
• Allied transport systems.

Comment:

This article describes the Union’s legislative powers over the sultanates. These powers include the following:

• Unity of the customs territory, that is, a single customs office with uniform customs duties throughout the entire territory of the Caliphate.
• The adoption of the Basic Law and laws, which cannot in principle be transferred to the sultanates.
• Union citizenship when parallel citizenship by the Sultanate is not permitted.
• Management of union property, which is also the exclusive prerogative of the union.
• Granting political asylum. This right belongs solely to the union; the sultanate cannot grant political asylum on its own.
• Union budget and taxes, only the union can establish taxes and implement its budget.
• Union transport systems that imply unified management and maintenance.

Part 3. Hakimiyat

Article 216.

            Hakimiyat is an administrative-territorial district formed in the sultanate for the rational management of Muslim affairs.

            The Hakimiyat is headed by a Hakim, whose appointment and dismissal takes place in accordance with the laws of the Sultanate.

Comment:

            The Hakimiyat is an administrative-territorial unit of the Sultanate, a district established for the effective management of Muslim affairs. The Hakimiyat is headed by a Hakim, who is appointed and dismissed according to the laws of the Sultanate. However, the democratic nature of the Sultanate must be respected.

Article 217.

            The Hakim may establish public services and necessary governing bodies.

            The Hakim may form a Shura for consultations.

Comment:

            The hakim may establish public services and other governing bodies to support the functioning of the governing bodies. He may also form the Shura of the hakimiyat for consultations.

Part 4. Jamaat.

Article 218.

Jamaat is an Islamic municipal association or community created by its members for the best management of Muslim affairs in accordance with the Sharia of Allah at the municipal level.

The Jamaat carries out the general policy of the state and promotes the fulfillment of the sacred duty of every Muslim.

Comment:

The Jamaat is, first and foremost, an Islamic municipality, a Muslim community, established in accordance with the Sharia of Allah. The Jamaat implements the general policy of the state without being part of the system of state authorities. The Jamaat is the primary power structure of society, which includes Muslims in the Caliphate. It is the first level of power socialization.

Article 219.

The highest governing body of the jamaat is the General Shura of the jamaat.

It is headed by the Amir of the Jamaat as the leader of the Jamaat.

The governing bodies of the Islamic community also include: the Military Shura, the Shura of Faith, and the Shura for Socio-Economic Development.

Comment:

The jamaat’s highest governing body is the General Shura, headed by the jamaat’s Amir. Other bodies include the Military Shura, which coordinates basic military training; the Shura of Faith, which serves as the public morality police; and the Shura for Socioeconomic Development, which is the main body for municipal socioeconomic development.

Article 220.

The jamaat’s general shura is the body that expresses the interests and aspirations of the entire community. Its exclusive responsibilities include:

• Appointment and dismissal of military emirs of the jamaat.
• Adoption of the jamaat budget.
• Submitting a petition to the hakim to remove the amir of the jamaat and appoint a new one.
• Management of jamaat property.
• Management of waqfs.
• Organization of a mutual aid system.
• Election of other governing bodies of the jamaat.
• Interaction with the relevant khakimiyat.

Comment:

This article speaks of the exclusive competence of the General Shura of the Jamaat. This includes:

• Appointment and dismissal of military emirs of the jamaat as commanders of the self-defense detachment and of the initial military training.
• Adoption of the jamaat budget, which cannot be appropriated by anyone.
• Submitting a petition to the hakim to remove the amir of the jamaat and appoint a new one, that is, the Shura itself cannot remove the amir of the jamaat.
• Management of jamaat property.
• Management of waqfs, that is, spiritual property within the community.
• Organizing a mutual aid system at the lowest level.
• Election of other governing bodies of the jamaat.
• Interaction with the relevant khakimiyat.

Article 221.

            The general shura of the jamaat is elected by the mahalla committees of the community for a term of 4 years with the possibility of recalling Shura representatives.

Shura representatives may be relieved of their duties by the General Shura itself or by the hakim with subsequent approval by the General Shura of the jamaat.

Comment:

The general shura of the jamaat is elected by the mahalla committees of the community for a four-year term. This means that the election is not by the entire jamaat population, but by the neighborhood committees or sub-committees of the jamaat. It provides for the possibility of recalling shura representatives. Shura members can be dismissed by the shura itself or by the hakim, with the decision subsequently approved by the shura.

Article 222.

            The Amir of the Jamaat is elected by the General Shura of the Jamaat and is subsequently approved by the Hakim.

He is elected for a term of 2 years, with the term subsequently being extended an unlimited number of times.

He must have an Islamic education, understand the needs of the jamaat, and have organizational skills.

Comment:

The jamaat’s amir is confirmed in office by the hakim after being elected by the jamaat’s General Shura. He is initially elected for a two-year term with the possibility of reelection. He must have an Islamic education, understand the needs of the jamaat, and possess organizational skills.

Article 223.

            The Jamaat is completely independent and is not part of the system of state authorities of the Caliphate.

            The jamaat’s budget is replenished through its own taxes.

Subsidies to the jamaat cannot serve as a means for its decision-making.

Comment:

The Jamaat is completely independent, meaning it is not part of the Caliphate’s system of government bodies. The Jamaat’s budget is funded by its own taxes. State subsidies to the Jamaat cannot be used to increase its obligations.

Article 224.

            The Jamaat can establish its own municipal service.

            Municipal employees of the jamaat perform their duties in accordance with the laws of the Caliphate on jamaats.

Comment:

            The Jamaat has its own municipal service, the municipal employees of the Jamaat are subject to the laws of the Caliphate on jamaats.

Chapter 10. Economic Organization of the Caliphate

Comment:

Islamic economic doctrine is a broader concept than Islamic political economy. It can also be considered the theoretical foundations of Islamic economics, the views and ideas of Islamic scholars on the entire spectrum of economic institutions in the Islamic world and their specific interactions. Their views include such propositions as wealth and profit from Allah, private property being sacred, paternalism, the social role of zakah, the prohibition of riba (interest) in banks (i.e., Islamic banks), social peace between entrepreneurs and workers, and free public utilities. Currently, the doctrine has not been systematized or formulated; it is still being actively developed.

Islamic political economy is the views and ideas of Islamic scholars on the economic life of the Islamic world, which proclaims an original, distinctive doctrine for the organization of economic social relations, from which follows an Islamic interpretation of the economic principles of the life of Islamic society.

Iqtisad is an Islamic economy, meaning that it is not only the economy of an Islamic country, but such an economy must be organized on Islamic principles, that is, it must comply with Sharia and proclaim Islamic political economy as its foundation.

Which economy is Islamic?

Let’s consider.

1. State ownership of natural resources, but not land. The creation of a state oil corporation is necessary.

2. The gold dinar as a medium of exchange, i.e. a return to the gold standard.

3. Large state-owned concerns in many sectors of the economy.

4. The oligarchy occupies a subordinate position, but the development of large private capital is encouraged.

5. In essence, the economy of the caliphate is state social capitalism with oil rent for every citizen of the caliphate.

6. The right of private ownership of land is recognized with the comprehensive support of the state.

7. Islamic economic institutions developed by Islamic economic thought are also important and should prevail, but Western legal structures of continental law are also permitted.

Describing Islamic finance as «interest-free» does not paint the true picture. While the prohibition on the collection and payment of interest is the foundation of the system, it is supported by other principles of Islamic teaching, such as the protection of human rights and obligations, the protection of property rights, the equal distribution of wealth, the sharing of risks, the fulfillment of obligations, and the sanctity of contracts. Similarly, Islamic finance is not limited to banking but encompasses insurance, capital accumulation, capital markets, and all forms of financial intermediation. It also requires adherence to the moral and ethical aspects established by the regulatory framework, in addition to diligent and appropriate oversight.

The philosophical foundation of Islamic finance extends far beyond the interaction of production factors and economic behavior. Understanding Islamic finance is only possible within the context of Islamic teachings on commercial ethics, wealth distribution, social and economic justice, and the role of the state. While conventional finance focuses primarily on the economic and financial aspects of transactions, the Islamic system places particular emphasis on ethical, moral, social, and religious aspects to strengthen the equality and fairness of the «principles of Islamic law (Sharia)» and their practical implementation through the development of an Islamic economy. Market participants and clients do not necessarily have to be Muslim, but they must accept the ethical constraints defined by Islamic values.

Islamic financial transactions can be considered a form of ethical investing or ethical borrowing, with only interest-free loans permitted. The general objectives (maqsid) of Islamic financial transactions are:

• Compliance with the principles of Sharia;
• Freedom from unjust enrichment ;
• Genuine consent of all parties; financial transactions must be an integral part of a real trade or economic activity, such as a sale, lease, production or partnership.

What are Islamic finance transactions?

Islamic finance was common in the Muslim world during the Middle Ages, stimulating the development of trade, commerce, and lending. In Spain, the Mediterranean, and the Baltic countries, Islamic merchants became indispensable intermediaries in commercial transactions. In fact, many of the concepts, methods, and instruments of Islamic finance were later adopted by European financiers and businessmen.

However, the term «Islamic finance» is relatively new, coined only in the mid-1980s. In fact, all early references to commercial or trading activities conducted in accordance with Islamic principles were in the context of «interest-free» or «Islamic» banking. However, describing Islamic finance simply as «interest-free» does not paint the full picture. While the prohibition of charging and paying interest is certainly a cornerstone of the system, it also upholds other principles of Islamic doctrine, namely, risk sharing, protection of people’s rights and obligations, protection of property rights, and the sanctity of contracts. Similarly, Islamic finance is not limited to banking but encompasses insurance, capital accumulation, capital markets, and all forms of financial intermediation .

Interpreting the system as «interest-free» leads to misunderstandings. The philosophical foundation of Islamic finance extends far beyond the interaction of production factors and economic behavior.

While conventional finance focuses primarily on the economic and financial aspects of transactions, the Islamic system places particular emphasis on ethical, moral, social, and religious aspects to promote equality and justice for the benefit of society. Understanding Islamic finance is only possible within the context of Islamic teachings on commercial ethics, wealth distribution, social and economic justice, and the role of the state.

The Islamic financial system is based on the absolute prohibition of paying or receiving any predetermined and guaranteed rate of return. This closes the door to the concept of interest and prevents the use of debt instruments. The system encourages risk sharing, supports entrepreneurship, discourages speculation, and emphasizes the sanctity of contracts.

The Islamic financial system is expected to be stable due to the elimination of debt financing and efficient allocation. A «two-window» model has been proposed for Islamic financial intermediaries, under which demand deposits are fully secured, while investment deposits are accepted solely on the basis of equity ownership. Analytical models demonstrate that such a system will be stable because the maturity and structure of liabilities and assets are symmetrical, thanks to profit and loss sharing, the absence of fixed interest costs, and the impossibility of debt refinancing.

Allocative efficiency is ensured by a rigorous selection of investment alternatives based on their profitability and expected rate of return. Finally, entrepreneurship is stimulated, as entrepreneurs compete to become agents for providers of financial capital, who, in turn, carefully select projects and management teams.

Basic tools

Islamic markets offer various instruments to satisfy suppliers and users of capital: sales, financing and investments.

The basic instruments include cost-plus ( murabaha ), profit-sharing (mudaraba), leasing ( ijara ), partnership ( musharaka ), and forward sale ( bai’ salam ). These instruments form the basis for the creation of other, more complex financial instruments, demonstrating the enormous potential for financial innovation and expansion in Islamic financial markets.

Principles of the Islamic financial system

The basic concept of the Islamic financial system is defined by a set of rules and laws, collectively known as Sharia , which regulate the economic, social, political, and cultural aspects of Islamic society. Sharia is based on various rules established by the Quran and the interpretations of the Prophet Muhammad (known as the Sunnah ). More detailed rules are developed by scholars specializing in Islamic law based on the Quran and Sunnah .

The basic principles of the Islamic financial system can be presented as follows:

Prohibition of interest. The prohibition of riba (the term literally means «increase» and is interpreted as «any unjustified increase in capital related to loans or sales») is the foundation of the system.

More specifically, any positive, fixed, predetermined rate of return tied to the maturity date and the principal amount (i.e. , guaranteed, regardless of the investment’s performance) is considered riba and, therefore, prohibited. The general consensus among Islamic scholars is that riba includes not only usuri but also the charging of «interest,» a common practice.

This prohibition is based on arguments of social justice, equality, and property rights. Islam encourages earning money but prohibits charging interest, as ex post facto profit signifies successful entrepreneurship and the creation of additional wealth, while predetermined interest is a cost incurred regardless of the outcome of commercial transactions and cannot create wealth in the event of business losses. Social justice requires that borrowers and lenders equally distribute both profits and losses, and that the process of capital accumulation and distribution in the economy be fair and reflect actual productivity.

Risk sharing. Due to the prohibition of interest, capital providers become investors, not lenders. The provider of financial capital and the entrepreneur share commercial risks in exchange for a share of the profits.

Money as «potential» capital. Money is considered «potential» capital—that is, it becomes actual capital only when it falls into hands that, with the help of other resources, transform it into a source of productive activity. Islam recognizes the value of money, but only when it acts as capital, not as «potential» capital.

Prohibition of speculation. The Islamic financial system does not tolerate the unjustified accumulation of reserves and prohibits transactions involving excessive uncertainty, gambling, and risk.

The sanctity of contracts. Islam views compliance with contractual obligations and disclosure of information as sacred duties. This feature is intended to mitigate the risk of symmetric information and moral hazard.

Shariah-approved activities. Investments may only be directed toward activities that comply with Sharia law. For example, any investment in businesses related to alcoholic beverages, gambling, and casinos is prohibited.

Simple derivatives, such as forward contracts, are under study, as their basic elements are similar to the Islamic deferred payment instrument. Equity-based project finance is another natural instrument of Islamic finance.

Microfinance

Microfinance is another potential application of Islamic finance. Islam supports entrepreneurship and risk sharing, and making it accessible to the poor can be an effective development tool. The social benefits are obvious, as the poor are currently often exploited by lenders who charge them usurious interest rates.

Economic development of Islamic countries

Islamic finance can play a decisive role in the economic development of Islamic countries by mobilizing passive savings, which are intentionally not linked to interest-based financial channels, and by stimulating the development of capital markets. At the same time, the development of such systems will allow savers and borrowers to choose financial instruments based on their commercial needs, social values, and religious beliefs.

A BRIEF DICTIONARY OF ISLAMIC ECONOMIC TERMS

Ata – donation or gift.

Awqaf is the plural of Waqf (see below). It refers specifically to funds donated to charity or as a gift on a voluntary and gratuitous basis.

Bayt ul Ma — Islamic state treasury.

Gharar (Gharar) is uncertainty and ambiguity in the subject of a transaction, caused by the occurrence or non-occurrence of an event that can only occur by chance and, as a result, is unknown to the parties to the transaction at the time of the conclusion of the contract.

Garim (Gharim) – an insolvent debtor.

Halal is what is permitted according to Islamic law.

Haram is something that is prohibited according to Islamic law.

Hima is public land designated for the use of a particular person or group of persons without the participation of other members of the community.

Ijarah (Ijarah) is a contract of sale by installments or a lease-purchase agreement under which an individual, legal entity, or organization leases property for a mutually agreed-upon payment (rent). This contract is similar to a lease-purchase agreement, an installment loan agreement, or a purchase-sale agreement with installments. Ultimately, it may result in the transfer of ownership of the property.

Iktinaz (Iktinaz) is the accumulation of wealth without fulfilling the legal obligations of a person in relation to such wealth.

Infaq (Infaq) – spending according to the commandments of Allah, in particular to help the poor and needy.

Iqta is the granting by the state to individuals of ownership rights or life-long use rights over state land.

Ifqar – provision of animals for temporary use for riding or transporting goods free of charge.

Irtifaq – granting a concession in relation to real estate (e.g. granting the right to place an inscription on a neighbor’s wall).

Joaalah (Joaalah) – A contract for the provision of additional services. For example, if someone offers a reward to another person for providing such services (e.g., a father offers a reward for information about his missing son). Under such a contract, the person who performs the work is entitled to receive the promised reward.

Unlike Ijrarah, which requires a person to perform a specific task, in Jo’ala, anyone can perform the work, even if they lack the means to do it. However, after completing the task, they are entitled to receive the promised reward.

Kharaj is a land tax.

Khums – a 20 percent tax imposed on certain types of wealth (e.g. mines or wealth located underground that has no owner).

Manihah (manihah) are productive assets provided to an individual for a specified period of time. The individual has free use of such assets and enjoys lifetime rights of use.

Maun (Maun) – items of ordinary use (e.g. household items) rented out free of charge.

Mudarabah (or Qirad) is a profit-and-loss sharing agreement. Under this agreement, one party provides capital, and the other manages the enterprise. In the event of a loss, the capital provider bears the financial losses, and the worker loses their job. In the event of a profit, the parties split it in a proportion agreed upon at the time of the agreement.

Muhaqalah – the sale of grain while it’s still being grown, or the sale of an unharvested crop. This type of contract is prohibited in Islam.

Mukhabarah is a leasehold agricultural contract under which the landowner retains the right to harvest crops from a specific plot of land. This type of contract is prohibited in Islam.

Murabaha is one of the most controversial transactions. It is a purchase and sale agreement that stipulates payment upon delivery of goods. It is used as a basis for modern Islamic banking because the amount charged for deferred payment exceeds the current market value (usually by an amount approximately equal to the prevailing interest rate).

Musharakah (Musharakah) is a partnership. Similar to a joint venture agreement, it defines the terms of the partnership. For such a joint venture to comply with Islamic law, both parties must share in the profits and losses, not just the profits. This method can be used for short-term financing.

Muzara’ah – a contract for leased agriculture.

Nisab is the minimum value of property subject to Zakat payment.

Qard Hasan literally means a good loan. In Islamic economics, it means a loan without repayment.

Riba means interest. More specifically, it refers to any pre-agreed premium paid or received over and above the principal amount of a loan under a loan agreement.

Riba Nasia is interest charged on the amount of a debt. Nasia refers to a deferment granted to the debtor. You’ll see this type of riba used in all types of lending transactions, where a person is granted a loan with interest paid on top of the principal amount for the period of delay.

Riba al-Fadl (barter interest) refers to the premium charged when exchanging goods of the same type (e.g., grain for grain, barley for barley, etc.). Barter transactions were widespread during the lifetime of the Prophet Muhammad (peace be upon him), and he did not limit the use of riba to cash credit transactions, nor to all types of barter.

Rikaz is an ancient treasure found underground that has no owner.

Sadaqah (sadaqah) – something given to others to help them receive Allah’s mercy. It also signifies a noble deed. If it involves spending profits, such profits must be earned through activities permitted by Islam.

Sadaqah al-Fitr is an Islamic tax levied during the month of Ramadan.

Takaful is a mutual support scheme that offers people insurance against unexpected and extreme needs.

Ushr is ten percent (sometimes five percent) of agricultural produce paid by a Muslim as part of his religious duties, similar to Zakat (see below), mainly to benefit the poor and needy.

Waqf is property transferred to an individual or organization for specific charitable purposes.

Wasiyyah is an Arabic word meaning will. According to Islamic law, a person may not bequeath more than one-third of their property, nor may they leave an inheritance to their heirs in addition to their share stipulated by Islamic law.

Zakat (also known as zakat) is a mandatory tax levied on every Muslim whose wealth equals or exceeds a minimum, called Nisab (see above). It is one of the five pillars of Islam. There are eight categories of people who are entitled to Zakat, including the poor and needy.

ADVANCED DICTIONARY OF ISLAMIC ECONOMIC TERMS

Aakhira ( Aakhira ) — Life after death.

Aaqilah (mutual assistance) is an agreement to provide mutual assistance or compensate for losses; it was practiced by some tribes during the time of the Prophet Muhammad (peace and blessings of Allah be upon him). This is the fundamental doctrine upon which the principles of Islamic insurance, known as Takaful, were developed.

Adl (Adl) — A general concept that conveys the meaning of fairness, equality and justice.

Ahad (Ahad) — The One and Only. In essence, the only one (Lord).

Ahkam ( Ahkam ) — Plural of Hukum .

Ajr ( Ajr ) — A payment or compensation, such as a commission, fee, or salary, that is paid for the performance of a service.

Ajr-un-kareem — A generous reward.

Al Adl ( Al Adl ) — See Adl.

Al-Ajr ( Al — Ajr ) — See A jr.

Al-bai ( Al — bai ) — See Bay.

A l-Ghurm bil Ghurm ( Al — Ghurm bil Ghunm (al-Hunm ) is the principle that a person is entitled to profit only if he or she accepts responsibility for losses. Profit is legitimate only when risks are shared and economic activity is undertaken. This principle forms the basis of shirk (partnership) contracts for profit sharing.

Al-Ihsan — See Ihsan .

Al-kharaj bil daman (risk-sharing) — A condition of risk-sharing; a person is entitled to profit only if they are willing to bear the commercial risks. A principle of Islamic law that a person is entitled to profit or income ( al-kharaj ) only if they accept responsibility ( daman ) for something, such as an asset, and a person who does not accept any responsibility is not entitled to income.

Al-Mal (Al-mal) — See Mal.

Al-Quran (Al-Quran) — See Koran.

Al-Rahn — See Rihn.

A l-Sar-al- A dl ( Al — Sar — al — Adl ) — Fair price.

A l — Sarf (Al-Sarf) — See . Sarf .

Al — wadia — See Wadia .​​

Al — Wakala — See Wakala .​

A l-Wakala al Mutlaqa ( Al — Wakala al Mutlaqa ) — Absolute power of attorney.

Alim (Alim) — Knowledgeable. See Ulama.

Allah is the name of God in Islam. It is used by Arabic-speaking adherents of the Abrahamic religions, including Christians and Jews. The concept of Allah is that Allah is the only supreme creation, the omnipotent and omniscient Creator, Provider, Governor, and Judge of the universe. In Arabic, there are no plural forms, masculine or feminine genders for this word. It means the One True God, the Almighty Creator, who is neither male nor female. Islam places special emphasis on conceptualizing God as the unconditional sole creator ( tawhid ). God is unique ( wahid ) and inherently one (ahad), merciful and omnipotent. Islam teaches that Allah is the same God worshiped by members of other Abrahamic religions, such as Christianity and Judaism.

Amanah — Literally meaning «trust»: reliability, credibility, fidelity, honesty. Technically, it is an important value in Islamic society, applied to joint affairs; it also refers to fiduciary deposits. A person may manage property on behalf of another person on a fiduciary basis, and that person is not liable for any losses, except for liability for improper performance of their obligations. In a broader sense, the term can also be used to describe various types of financial or commercial activities, such as accepting deposits, safekeeping, or goods sent on consignment. Amanah is considered to be current account deposits (usually interest-free) placed in Islamic banks. If the bank is granted the authority to use funds from current accounts for investing them in its operations, Amanah is transformed into a loan provided by the depositor to the bank, and the bank is obligated to repay the entire amount into the current account, regardless of the bank’s profit or loss.

Ameen — See Amin.

Amil (Amil) — Literally meaning «worker.» A person who performs a specific task, an agent. A person entitled to receive remuneration for the performance of tasks, such as the mudarib (manager) under a mudarabah contract or the zakat collector . However, according to Fiqh, the term also refers to the acting partner in a mudarabah contract . Under such a contract, one partner provides funds, and the other ( the amil or mudarib ) provides labor.

Amin (Amin) — A person who enjoys the trust of others; reliable.

Amwal — Plural of Ma l , which literally means property, including possessions and money (wealth).

Aqd (Akd) — Contract, agreement, obligation. Synonymous with the word «contract» in modern law.

Akd Batil — See Batil.

Aqd-al-Bay — Sales Contract.

Aqd-al-Ijara — See Ijara.

Aqd-al-Muawadah — A contract of exchange that provides for a reward in exchange for goods or services received.

Aqd-al-Musharakah ( Aqd — al — Musharakah ) — See Musharakah .

Aqd al-Qard — A loan contract. Also known as Qard.

Aqd-al-Wadia ( Aqd — al — Wadia ) — See Wadia.

Aqd Ghair Lazim — A contract that provides for the unilateral right of one of the parties to terminate it without the consent of the other parties.

Aqd Lazim — A contract under which neither party has the unilateral right to terminate it without the consent of the other parties.

Aqd Tabarru — See Tabarru.

Aqidah — Belief, faith.

Aqilah — Relatives or persons who share responsibility among themselves.

Akl (Aql) — Intelligence.

Ariya — A loan that provides for the transfer of a product for use that has no analogues, while no fee is charged for such use.

Arbun ( Arbun ) — A non-refundable fee or deposit paid by a buyer for the right to purchase a product at a specified price at a specified time in the future; if the buyer exercises this right, the fee is credited toward the purchase price. If the buyer fails to complete the purchase or withdraws from the transaction for any reason, the seller is entitled to use the deposit. Also known as Urboun and Bay’i al-Arbun. See also Hamish Jiddiyyah.

Assets — Any object of value (movable or immovable) any interest in movable or immovable property that can be seized to pay a debt.

The Financial Accounting Standards Board ( FASB ) defines three essential characteristics of an asset: ( a ) it embodies a probable future benefit, measured by its ability (alone or together with other assets) to provide, directly or indirectly, future net cash inflows, ( b ) a specific entity can obtain the benefit and control access by others to its use, and ( c ) a transaction or other event secures the entity’s right to receive the benefit. See Intangible assets

Awqaf (Awqaf) — Plural of Waqf, meaning trust. See also Waqf.

Aya (Aya) — See Ayat .

Ayah — See Ayah .

Ayat — A verse or paragraph from the Quran .

A’yaht ( A ‘ yaht ) — See Ayat .

Ayn ( Ayn ) — Monetary wealth. A tangible (physical) asset. Also refers to currency or cash. Ayn is often contrasted with Dain .

Bai (Bai) — Sale or contract of sale. Often used as a prefix for various Islamic financial arrangements based on sales, such as Murabaha, Istisna’a, and Salam.

Bay al-Arbun ( Bay al — Arbun ) — See Arbun .

Bai al Amanat ( Bai Al Amanat ) — Fiduciary sale, like murabaha and wadi’ah.

Bai al Inha ( Bai al Inhah (Ba’i al-‘I’nah ) — The purchase of an asset for cash and its subsequent sale to the same party at a higher price, with the amount of the second transaction differing in such a way that, in essence, the purchase and sale of the asset are a ploy to provide a loan with interest. It is equivalent to a double sale, where the borrower and lender sell and then resell the asset between themselves, once for cash and once at a higher price on credit, which is, in essence, a loan with interest. Used by some Islamic banks, it refers to the sale of assets to a client with deferred payment. The bank will subsequently repurchase the assets and pay the client cash. Thus, Bai al-‘I’nah involves two agreements; according to the first agreement, the bank sells the specified asset to the client at an agreed price, and the client purchases the bank’s assets after making installment payments over an agreed period; According to the second agreement, the bank repurchases the same assets from the client at a lower price, and after the second transaction is completed, the bank pays a lump sum in cash equal to the price agreed upon between the parties. The difference in price constitutes the bank’s profit, which is determined in advance. Such transactions are prohibited by most Sharia scholars, as they are similar to sales contracts and compensation agreements. They are also known as Bai al-Inah or Inah. They are similar to tawarruq, with the difference that tawarruq involves a third party as an intermediary.

Bai’ al khiyar / Kiyar — See Khiyar. Possibility of cancellation of sale.

Bai’ al Mutlaq — An agreement to sell without the possibility of revocation.

Bai´ a l M ukayaz ( Bai´ al Muqayaza ) — The exchange of goods for goods, called barter.

Bays al — salam (Bai al-salam) — See . Salam .

Bays Baatel (Bai Baatel) — See . Batil .

Bai Bisaman Ajil ( Bai Bithaman Ajil (BB A ) — This type of contract refers to the sale of goods with deferred payment; a trade transaction with deferred payment. Islamic banks use it as a form of financing purchase and sale transactions or deferred payments for consumer goods. Technically, this type of financing is based on purchase and sale transactions. Interest is not charged. The equipment or goods needed by the client are purchased by the bank, which then sells the goods to the client at a higher agreed price; payment is made upon delivery of the goods, and the client has the right to pay the cost of the goods in installments or a lump sum payment over the agreed period. The deferred payment price, which is the price at which the bank sells the goods, includes an additional profit for the bank agreed upon between the parties. Similar to the murabaha contract, but with a deferred payment, known as marabaha muajal.

Bai Mu’ajjal ( literally: credit sale or deferred payment contract). Technically, it’s a financing scheme used by Islamic banks. It’s a contract whereby the seller authorizes the buyer to pay the price of the goods at a future date, either in one lump sum or in several installments. The price set for the goods in such a transaction may be equal to the spot price or may be higher or lower than the spot price. A similar concept is used by Bai Bisaman Ajil (BBA).

Bai Salam — See Salam.

Bai-sarf — See Sarf.

Bai wafa ( Repurchase, sale and resale), a contract whereby the buyer returns the goods to the seller after the seller pays the price of the goods sold.

Baraka (Barakah) — Blessing.

Bai (Bay) — See Bai.

Bay’al ayan — The sale of tangible objects such as goods (as opposed to the sale of services or rights).

Bay al-dayn (Bay al-dayn) — Sale of debt. According to the majority of offuqaha , debt cannot be sold for money, except for its face value, but it can be sold for goods and services.

Bay’ a l-Gharar ( Bay ‘ al — Gharar ) — See Gharar.

Bayu al-Gharar (Bayu al-Gharar) — Risky trading, where the word «gharar» is used to mean «risk.» See Gharar.

Bay al-ina — See Bay al-Ina.

Bay al-Inah ( also known as Bay a Inah) is the purchase of an asset for cash, then its sale to the same party at a higher price on a deferred payment basis, with the sale of the asset used as a ploy to secure a loan with interest. The bank later repurchases the asset from the client for cash. Similar to Tawarruq, but in Tawarruq a third party is used as an intermediary.

Bay al-kali bil kali ( Bay al — kali bil Kali ) — A sale in which both delivery of the goods and payment for them are deferred. Similar to a modern forward sale contract.

Bay al-mudaf (Bay al-mudaf) — A sales contract in which both delivery of the goods and payment for them are deferred, such as modern forward sales. Such contracts are prohibited by Sharia.

Bay bi taman al-ajil ( Bay bi thaman al — ajil ) — Another term used for Bay Mu’ a jal.

Бай музаяда (Bay muzayadah) — Sale at auction.

Bayt al-Mal is the state treasury of the Islamic state.

Batil (Batil) — Not legally binding. A void sale or contract. A contract that does not comply with the terms of offer and acceptance, definition of the subject matter, determination of consideration, transfer of ownership, or delivery of the subject matter, or that is contrary to Shariah requirements, such as riba, gharar, or qimar. Also called Aqd Batil and Bai Ba’atel. Opposite of Sahi.

Baitl al-Mal al — Mal ) — See Bayitl Mal.

Baitl Mal (Baitl Mal) — Treasury. Also known as Bayt al-Mal.

Bad Debt — A debt that is not repaid and therefore has no value to the creditor.

Balance Sheet — A financial statement that provides information about the assets, liabilities, and stockholders’ equity or net worth of a business or nonprofit organization at a specific point in time.

Bridge Loan — A short-term loan designed to provide temporary financing until permanent funding sources become available.

Capital — In a broad sense, all the money and other property of a corporation or other enterprise used to carry out its activities.

Capitalization — Long-term debt, preferred stock, and equity. Debt capital of a development loan fund; includes borrowed funds, third-party debt, and capital earned through the use of the loan fund (i.e., «permanent capital»).

Capital Markets — A financial market where institutions and individuals trade debt and equity securities; a market for trading long-term debt instruments (those with maturities greater than one year). It is also used in a broader context to refer to the market for stocks, bonds, derivatives, and other instruments. The capital market includes three main components: (1) the stock market, (2) the long-term debt market , and (3) the short-term capital market. It also functions as an exchange for trading capital in the form of shares. A general term for markets designed to raise long-term capital from various investors.

Unlike the money market, which trades short-term securities, capital markets are viewed as markets for medium- and long-term financial products.

Capital market instruments include fixed income instruments such as index bonds, asset-backed securities, mortgage-backed securities, and related products.

Cash Flow Financing — A short-term loan that provides cash resources to cover a cash shortfall in anticipation of a profit, such as the payment of accounts receivable.

Collateral — Assets pledged to secure the return of a debt.

Commodity Murabaha — See Commodity Murabaha

Commutative — Relating to a substitute or exchange. A legal term whereby each party to a contract transfers and receives an equivalent. A sales contract is of this nature. The seller sells the goods and receives their price, which is an equivalent. The buyer pays the price of the goods and receives the goods, which is an equivalent.

Cost -plus Financing — See Murabaha.

Covenant — An agreement or promise to do or not to do something; the formation of a formal agreement; a promise related to an act or contract. The following are functional requirements that apply to most covenants: full disclosure, preservation of equity, assurance of asset quality, assurance of sufficient cash flow, growth control, management control, guarantee of legal personality, going concern concept, assurance of profit or fulfillment of the lender’s program objectives.

Current assets — Assets that will be converted into cash within a year.

Current Liability — Liabilities that are due within a year

Current Ratio — Current assets divided by current liabilities – a measure of liquidity. Generally, the higher the ratio, the greater the cushion between current liabilities and the company’s ability to meet them.

Dalil — A scientific argument that has some basis.

Daman ( Daman ) — Guarantee, security. Acceptance of responsibility. See also Kafala.

Daman Hatar Al-Tariq ( Daman Khatar Al — Tariq ( Travel Insurance ) — Travel Insurance. A mutual assistance agreement under which losses incurred by merchants while traveling are reimbursed from joint funds.

Daruirah — See Darura .

Darura ( Darura ) — Necessity, exceptional necessity. Making a decision that may contradict Sharia norms in exceptional cases, when life or death is at stake (usually used within the framework of the «Doctrine of Necessity,» according to which what is prohibited may be temporarily permitted).

Darura ( Darurah ) — See Darura.

Da’w a ( Da ‘ wah ) — Claim, as in Takaful.

Dayn — Debt. Dayn arises as a result of a contract or a credit transaction .

Deen — Refers to the general code of life prescribed by Islam.

Debt — Typically refers to the amount of debt incurred as a result of borrowing funds. Debt may be owed to an organization’s own reserves, individuals, banks, or other institutions. Debt is typically secured by a promissory note, note, mortgage , or other instrument that confirms the obligation to repay the debt. A promissory note, in turn, may be secured by property or other assets. All types of debt must be repaid by a specified date set out in the payment terms.

Debt service reserve ( Debt Service Reserve ) — A term used to designate cash reserves formed by a borrower on the basis of internal policy or a loan agreement, for the purpose of repaying debt in the event of insufficient funds received from current operations.

Default — A failure to fulfill one’s obligations. The term is most often used to refer to the occurrence of an event that limits the rights or remedies of one party to an agreement or legal dispute, such as a mortgagor’s failure to make a mortgage payment or to fulfill the terms of a mortgage agreement.

Dean ( Din ) — See Dean.

D a mma ( Dhamman ) — See Daman.

Dimmah ( Dhimmah ) — Liability, a term used in Takaful.

Dinar ( Dinar ) — A currency in the form of gold coins used in the past. The term is still used in Muslim countries such as Iraq.

Dirham ( Dirham ) — The name of a monetary unit, usually in the form of silver coins, that was used in the past in some Muslim countries. The term is still used in Muslim countries such as Morocco and the United Arab Emirates.

Diminishing Musharakah Musharakah ) — See Musharakah for reduction.

Dunya ( Dunya ) — In this case, «world.» Dunya literally means ‘closer’ or ‘lower.’ Life in this world, the mundane world, and its mundane concerns.

Duyoon Haala ( Duyoon Haalah ) — Dayn / Debts that become due or can be cancelled at any time.

Duyun Mu’ajala Mu ‘ ajjalah ) — A payment period agreed upon between the creditor and the debtor, but the payment period has not yet arrived.

Due Diligence ( Due Diligence (or «diligence «) refers to the preparation of a thorough opinion regarding the basic information and facts provided by the borrower. This review includes verification of sources of income, the accuracy of financial statements, the value of assets that will be used as collateral, the borrower’s tax status, and any other key information provided by the borrower.

Dyan ( Dyan ) — Debt. Dyan arises as a result of any other contract or credit transaction. It can take the form of rent, purchase price, or sale price. The lender cannot demand that the borrower repay an amount that exceeds the loan amount.

Ekrar — Statement , as in Takaful.

Equity is the value of an organization’s assets minus its total debt. Equity investments typically take the form of an owner ‘s stake in the business and often a share of profits or revenues. Equity investments carry greater risk than debt, but the potential for greater returns offsets this risk.

Participation in capital ( Equity Participation (or «participation «) is a share in an organization, project, or enterprise acquired through investment. The return on investment depends on the profitability of the organization or project.

Eshtirak — A deposit similar to Takaful.

Fadl — Excess, premium, surplus, as in Takaful .

Fadl-al-Allah ( Fadl — al — Allah ) — Generosity bestowed by Almighty Allah.

Fala ( Falah ) — Success, prosperity. Technically, it refers to success in this world and the next (Akhira).

Faqih — A lawyer who provides an opinion on various issues based on the position of the Quran and Sunnah.

Faraid is a branch of Islamic law that regulates the distribution of property of the deceased among the heirs in accordance with the instructions of Allah, the Quran, and Hadith .

Fasid ( Voidable ) . A prohibited term of a contract that subsequently invalidates the contract. A voidable or defective contract due to the fulfillment of a condition necessary for valid contracts.

Fatwa ( fatwa ) is a religious ruling. A ruling approved by a competent Sharia scholar on a specific issue that is not sufficiently covered by fiqh (Islamic law). It is an opinion that is not legally binding. It may address both a specific issue affecting a particular individual and a matter of public importance.

Fatwa ( Fatwah ) — See Fatwa.

Fayed — Surcharge , as in Takaful.

Intangible assets ( Fictitious Assets (also known as «assets «) are assets that have no tangible value or resale value, but whose future use may yield financial benefits in the absence of other sources of financing. For example, an asset pledged as collateral for a loan is intangible (nonexistent) if there is no source of repayment. Financial crises are caused by the creation of ever-increasing amounts of intangible assets provided by indebted individuals, businesses, and countries unable to repay their debts. See asset.

Fiqh (also spelled «fiqh «) refers to the entire body of Islamic law. Unlike traditional law, fiqh encompasses all aspects of life—religious, political, social, commercial, and economic. Fiqh is based on the interpretation of the Quran and Sunnah and secondary sources recognized by the Quran and Sunnah. Fiqh can also be interpreted as a jurist’s understanding of Sharia. There are four main schools of Islamic thought: Hanafi, Shafi’i, Hanbali, and Maliki.

Fiki ( Fiqih ) — See Faki.

Fiqh al-mu’a’malat ( Fiqh al — mua ‘ malat ) — Legal norms governing commercial activities, financial transactions and compliance of transactions with Sharia requirements.

Fitrah — Law of nature.

Garam — Loss, damage, as in Takaful .

Ghaban — Misappropriation of someone else’s funds or deception regarding the characteristics of a product and its price .

Ghaban-e — Fahish — Excessive profit obtained by deception, inflated price .

Gharar ( 1) — Literally: uncertainty, danger, probability , or risk. Technically, the sale of a thing that is not available; or the sale of a thing whose consequences are unknown; or a sale involving the risk or danger that the person does not know the outcome of the transaction whether it will occur or not, like a fish in water or a bird in the air. It is an exchange in which one or more parties may be deceived due to ignorance of the immediate object of the exchange. Thus, it refers to the element of absolute or excessive uncertainty in any activity or contract. Gambling (gimar) is a form of gharar, since it involves an unknown outcome. (Gharar is one of the main prohibitions in Islamic financial activity, along with riba and maysir). The Hanafi school of Islamic law defines gharar as «anything with unknown consequences.» The Shafi’i school defines gharar as «anything with unknown consequences and characteristics» or «anything that allows for two possibilities, one of which is less desirable.» The Hanbali school defines it as «anything with uncertain consequences» or «anything that may not be delivered, regardless of its availability.» Ibn Hazn of the Zanini school wrote, «Gharar is when the buyer does not know what he has bought and the seller does not know what he has sold.

Gharar ( Gharar ) (2) — The basis of Gharar is deception; an exchange in which one or more parties may be deceived due to ignorance of the immediate object of exchange. It also refers to the ambiguity present in contractual relationships regarding compensation and contract terms, which may lead to a dispute. Gharar is of three types: Gharar Fahish (excessive, compared to normal Gharar), which invalidates the transaction, Gharar Yasir (minor), which is permissible, and Gharar Mutawassit (moderate), which falls between the other two categories. Any transaction can be classified as prohibited due to excessive gharar. In general, it prohibits the sale of goods or services that the seller is unable to deliver or perform, or entering into a contract whose fulfillment is contingent on an unknown event. Due to the uncertainty and associated risk, it makes the transaction similar to gambling. The prohibition of Gharar is often used as a basis for criticism of traditional financial transactions such as short selling, speculation and derivatives.

Gharar ( 3 ) — «Deception due to ignorance of one or more parties to a contract. Gambling is a form of gharar, as the player is unaware of the outcome of the game. Gharar can take various forms, all of which are prohibited. Below are some examples:

* selling goods that the seller is unable to deliver

* selling known or unknown goods at an unknown price, e.g. selling the contents of a sealed box

* selling goods without proper description, e.g. selling clothes without the specified size

* selling goods without specifying a price, e.g. selling at ‘today’s price’

* entering into a contract whose fulfillment depends on an unknown event, e.g., «when my friend arrives,» if the time of arrival is not specified

* selling goods based on incorrect descriptions

* sale of goods without providing the buyer with the opportunity to properly inspect the goods.»

Gharar ( Gharar ) (4) — «The uncertainty of an exchange contract regarding the existence of the subject matter of the contract, as well as its characteristics, quantity and quality. It also refers to the ambiguity present in contractual relationships regarding the consideration and terms of the contract. Such ambiguity can invalidate most contracts. The basis of Gharar is deception; an exchange in which there is an element of deception due to ignorance about the goods, the price or due to a false description of the goods. Thus, one or more parties may be deceived due to ignorance about the immediate object of exchange. Gambling is a form of gharar since it involves the uncertainty of the outcome of the game. Speculative transactions involving risk in trading, which involve the investment of assets, skills and labor, are not considered similar to gambling. Since the buyer is engaged in a transaction whose purpose is to make a profit through trading and not through the misappropriation of the property of others. The prohibition of gharar is often used as a basis for criticizing traditional financial transactions such as short selling of securities, speculative operations and derivative financial instruments.»

Gharar-fil-Sifah ( Gharar — fil — Sifah ) — Uncertainty regarding the characteristics of the product.

Gharar-fi-al-Ajal ( Gharar — fi — al — Ajal ) — Uncertainty regarding the delivery time.

Gharar-fi-al-Miqdar ( Gharar — fi — al — Miqdar ) — Uncertainty regarding the quantity of goods.

Gharar-fi-al-Taslim ( Gharar — fi — al — Taslim ) — Uncertainty regarding the supply of goods.

Gharar Yasir ( Gharar Yasir ) — A minor indicator of gharar, which is unavoidable.

Gharim ( Gharim ) — A debtor who does not have the means to repay their debt. According to Hanifi jurists, a gharim is a person whose assets, after repaying the debt, will not equal the nisab. Shafi and Maliki jurists divide gharim into two types: (i ) persons who have acquired the debt for their own benefit, and (ii) persons who have acquired the debt for the benefit of others. Gharimun (plural: gharim) are one of the eight groups mentioned in the Quran as legitimate recipients of zakat funds.

Ghosh — Blood feud , as in Takaful.

Guaranteed loan Loan (or guaranty ) — A promise to repay a debt or fulfill another obligation in the event of another person’s default. When a third party acts as a guarantor for a loan, they promise to repay the debt in the event of the borrower’s default.

Hadith ( Hadith ) — Tradition about the words and actions of the Prophet Muhammad (may peace and blessings of Allah be upon him), called Sunnah.

Hadiah — Donation .

Hajj ( Hajj ) is a pilgrimage to Mecca and other holy places. The fifth pillar of Islam, Hajj is the obligation of every Muslim who is physically and financially able to perform it at least once in their lifetime.

Halal ( Halal ) — That which is permitted by Sharia, lawful income. The concept of halal has a religious meaning. Muslims believe that all things are provided by God, and the benefits derived from their use belong to all humanity and are therefore permissible, except for those expressly prohibited by the Quran or Sunnah. It also applies to activities, contracts and transactions, as well as income. If the Quran does not clearly state a particular position, there are other sources of law, such as Fiqh, which means ‘understanding’ and is a legal science: the science of human reason, dispute, and discussion. The concept of halal is one of the distinctive features of Islamic economics, in contrast to Western economies, which lack such a concept. In Western economies, all activities are considered in terms of economic benefit. In Islamic economics, other factors are taken into account, in particular, ethical and moral values. An activity may be economically profitable, but it will be prohibited in an Islamic society if it is not permitted by Sharia.

Hamish Jiddia ( Hamish Jiddiyah ( or «jiddiyah») — Symbolic money, a down payment made by a party intending to purchase certain goods as a confirmation of their intentions to the seller. See also: Arbun.

Hanafi — One of the four generally recognized schools of Islamic law or religious law on the interpretation of the Quran and Sunnah. Founded by one of the classical jurists, Imam Abu Hanifa ( 765 гCE ), the followers of this school are called Hanafis. The other schools are Hanbali, Malaki, and Shafi. Zahiri is another school developed by Dawud ibn Khalaf ( 883 гCE). The Jafri Shi’a school of Islamic law was developed by Imam Ja’far al-Sadiq ( 765 гCE) around the same time as its partners in fiqh were systematized. It differed from Sunni law «on matters of inheritance, religious taxes, trade, and personal status.»

Hanafi’i ( Hanafi’i ) — See Hanafis

Hanbali — One of the four generally known schools of Islamic law or religious law on the interpretation of the Quran and Sunnah. Founded by one of the classical jurists, Imam Ahmad Hanbal ( 855 гCE ), followers of this school are known as Hanbalis. The other schools are Hanafi, Malaki, and Shafi’is. Hanbali is considered the strictest school regarding social and personal rules. Akhiri is another well-known school, developed by Dawud ibn Khalaf ( 883 гCE). The Jafri Shi’a school of Islamic law was developed by Imam Ja’far al-Sadiq ( 765 гCE) around the same time as its counterparts in fiqh were systematized. It differed from Sunni law «on matters of inheritance, religious taxes, trade, and personal status.»

Haram — That which is prohibited in Islam. An activity that is expressly prohibited by the Quran or Sunnah. Prohibitions also apply to professions, contracts and transactions, as well as profit-making. If the Quran lacks any provisions, there are other sources of law, such as Fiqh, which means ‘understanding’ and is a legal science: the science of human reason, dispute, and discussion. The concept of haram is one of the distinctive features of Islamic economics; compared to Western economies, all activities are evaluated based on economic feasibility. In Islamic economics, ethical and moral factors are usually also involved. An activity may be profitable, but prohibited in an Islamic society based on Sharia, unless it is permitted by Sharia. Opposite of halal.

Hawala — See Hawala

Hawalah ( literally, «transfer» ) is an agreement whereby a debtor is released from a debt by another party, who becomes responsible for repayment. It also refers to an agreement whereby a debtor is released from a debt by another party, who becomes responsible for repayment. This agreement transfers responsibility for repayment from one party to another, such as a debt assignment agreement. This transfer transfers responsibility for repayment to the other party. It also refers to the document by which the assignment is made, such as a bill of exchange, promissory note, check, or draft. Hawalah is used for mutual settlements through documentary accounting without the need for the physical transfer of cash.

Hesb al takaful ( Hesab al takaful ) — Takaful Account Ta ‘ a uvunj

Hibah ( gift ) . Technically, it is the transfer of a specific asset (mal) without material compensation. This could be something given by a debtor to a creditor as a symbolic gesture of gratitude upon repayment of an interest-free loan. Islamic banks may, at their discretion, make ‘gift’ payments to their clients’ non-investment accounts in order to attract more deposits. Although such a ‘gift’ resembles interest and may, as a result, result in a profit, hibah is a voluntary payment made at the bank’s discretion.

Hikmah — Reason , wisdom supporting actions or prescriptions.

Hila ( Hila ) — A prohibited structure used to obtain a desired legal result; any actions aimed at deceiving third parties. The use of permitted means to achieve legal results. Tricks used in transactions to create the appearance of compliance with Shariah requirements, while, in fact, the goal is to overcome fundamental prohibitions. Plural: Hiyal.

Hila ( Hilah ) — See Hila.

Hisbah is a term used by classical Muslim jurists to describe the functions performed by the state or the relevant Islamic authority in the area of market regulation. It includes any steps necessary to maintain a fair market .

Hiyal — See Hila .

Hukm ( Hukm ) — See Hukum.

Hukum ( Hukum ) — In Fiqh, a Shariah ruling related to an action; rules, regulations, and laws include the prescriptions/norms/values established by Allah for every believer.

Husah ( literally: cobblestones). A type of sale practiced by the Arabs in the Jahiliyyah, in which the sale was determined by lot. This practice was prohibited by the Prophet Muhammad (may peace and blessings of Allah be upon him) due to the uncertainty (gharar) inherent in such a sale contract.

Ibadat ( Ibadat ) — Worship or ritual.

Ibaha ( Ibaha ) — Literally: permissibility. Ibaha refers to the rule that all economic transactions are muba (permitted) unless they are expressly prohibited by Sharia.

Ibnu Sabil ( Ibnu Sabil ) — «Literally: ibnu sabil is an expression for musafir. Musafir are people who migrate. Even though ibnu sabil have means of subsistence, a person may receive zakat in the event of supply problems during the journey.»

IFI ( Islamic Financial Institution ) is a bank or financial institution that conducts business in accordance with the principles of Sharia.

Ihsan ( Ihsan ) — Performing noble deeds without expectation of reward, but by the grace of God Almighty. It demonstrates goodness in one’s actions and deeds, and a sense of social responsibility stemming from religious obligations. Ihsan represents the highest form of worship (ibada); it represents high standards in work and social interaction. Literally, it means help, assistance, and support. Also known as Al-Ihsan.

Ihtikar ( Hoarding ) : The forbidden practice of purchasing essential goods such as food and storing them in order to increase the price.

Ijab ( Ijab ) — Proposal (in a contract). Opposite to Kabul.

Ijarah ( 1 ) — Literally: leasing. Technically: the sale of a specific usufruct in exchange for a specified consideration. Typically used in relation to wages, as well as land lease contracts with a fixed rent paid in cash. It is the opposite of » Muzara , » where the rent is set as a certain percentage of the yield produced on the land. This is an arrangement whereby an Islamic bank leases equipment, a building, or other facilities to a client in exchange for a set rent. The rent allows the bank to recoup the initial investment plus profit.

Literally: a lease or simply a rental. Technically, it is the sale of a specific usufruct in exchange for a fixed fee. It is used to describe the provision of services in exchange for a fixed fee, and also refers to the rental of an asset in exchange for a fixed rent. In a typical rental transaction, the lessor, who owns the leased asset, will provide the asset to another party (the lessee) in exchange for the payment of rent. The lessee receives all benefits from the use of the leased asset for the specified term and must comply with all terms of the lease. At the end of the lease, the leased asset is returned to the lessor. Other types of leases exist that provide for the transfer or the ability to transfer ownership of the leased asset from the lessor to the lessee upon the end of the lease, namely:

Ijarah Summa Bayi – A lease agreement that provides for the sale of the leased asset after the expiry of the lease period.

Ijarah Muntahiyah Bil Tamleek — A lease agreement with the option to own the leased asset after the expiry of the lease period.

Ijarah Wa Iqtina — A lease agreement with an option to purchase the leased asset after the lease expires. Often used in the context of residential property acquisitions.

Ijarah wa Iqtina extends the concept of Ijarah to a lease-purchase agreement. This is a contract whereby an Islamic bank finances equipment, buildings, or other assets for a client in exchange for an agreed-upon rental fee. This contract includes a unilateral commitment by the bank or client that at the end of the lease, the bank’s ownership of the leased asset will be transferred to the client. The rental fee covers the bank’s investment plus profit.

Ijarah (2) — A form of leasing agreement that transfers ownership of a service (the use of an asset) for a specified period in exchange for legal compensation. Instead of borrowing money at interest, Ijarah allows the financial institution to earn a profit by receiving rent for the use of the asset. It is often used by Islamic banks for financing. Under this financing scheme, the Islamic bank purchases an asset according to the client’s specifications. The lease term and rent are determined in advance by mutual agreement between the parties, based on the nature of the asset. During the lease term, the asset remains the property of the bank (which acts as the lessor), but the client (as the lessee) has the right to use it.

Ijarah Sukuk ( Ijarah Sukuk ( Islamic security) based on Ijarah. See Sukuk and Ijarah.

Ijarah Muntakhiya-bi-tamlik ( Ijarah Muntahia — bi — tamleek ) — A lease, after the expiration of which the ownership is transferred to the lessee, whereby the lease and sale must be separate and independent transactions. The use of this term to refer to a lease is more commonly known as ijara wa iqtina, as the latter variant creates the impression that the ijara and sale are carried out in parallel, although according to Shariah requirements, they must be two separate transactions. See Ijarah wa iqtina.

Ijarah Mawsuf bi Dhimma ( a ) An unspecified asset is leased under a deferred lease. ( b ) A lease agreement under which the lessor undertakes to provide clearly defined services or benefits without specifying the specific assets associated with the provision of such services. In the event of destruction of the asset, the contract is not terminated, and the lessor provides another such asset.

Ijarah Suma Bayi ( Ijarah Thuma Bai ( Lease-Purchase Agreement). The principle governing the Ijarah contract, which allows the lessee (the bank’s client) to purchase the leased asset at an agreed price by entering into a separate purchase agreement.

Ijara wa-iktina ( Ijarah wa — iktina ) — Rent with the option to buy. Also known as ijarah wa iktina.

Ijarah wa iktina ( ljarah wa Iqtina ( lease-purchase agreement). Similar to ijarah, except that the client agrees in advance to purchase the leased asset from the bank at the end of the lease term, after all lease payments have been made. The rent includes a portion of the purchase price, so that at the end of the lease, the bank receives the principal plus a predetermined profit. At the end of the lease, the leased asset is often sold to the client at par value. Accepted by Islamic banks as a lease-purchase financing scheme, but differs from a traditional lease-purchase agreement. Under the agreement, an Islamic bank purchases an asset, such as equipment, and leases it in exchange for an agreed-upon rent and a commitment or promise to transfer ownership to the lessee; the commitment or promise is not part of the lease agreement or a condition of its performance. Ownership is transferred through a separate contract or gift. Also known as ijarah muntahia-bi-tamleek.

Ijarah with Musharakah for reduction ( Ijarah with Diminishing Musharakah (Ijarah ) — This principle is used for home purchases or Islamic mortgages. Combining Ijarah with Musharakah allows a bank or lender and a client to enter into an agreement to jointly purchase a home, with the client paying rent for the bank’s share and an additional amount to purchase the bank’s share. Over time, the bank’s share decreases and gradually becomes the client’s property. Once the bank’s share is fully acquired, the bank transfers ownership to the client. This principle can be used to acquire any other assets.

Ijma ( Ijma ) is a consensus, usually expressed by jurists on a given issue. Traditionally, it is recognized by most Muslim jurists as an independent source of Islamic law, along with the Quran, Sunnah, and Qiyas (inferences).

Ijtihad ( Ijtihad ) — Literally: effort, diligence, zeal. Independent or innovative legal reasoning or interpretation (by qualified Islamic legal scholars) to develop a ruling on a specific issue based on facts found in Islamic sources.

Ikhtiyar ( Ikhtiyar ) — Choice.

Illah ( Illah ) is an attribute of an exchange or event that is associated with specific Divine injunctions—an instance of the Prohibition of specific exchange contracts. Illah is the basis for applying analogy to determine the permissibility of any transaction.

Ilm (ilm) ( Ilm ( ilm )) — Knowledge.

Imam ( Imam ) — Literally leader. Manager or ruler. Head of a religious community.

Iman ( Iman ) — Personal faith, conviction or belief.

Inah ( Inah ) — See Bay a l-Ina.

Inan ( Inan ) — A type of Shirk: a form of partnership in which each partner contributes capital and has the right to work for the business, but not necessarily in equal shares.

Infaq ( spending ) . In Islamic economics literature, it usually refers to the allocation of funds to the poor, orphans, travelers, or people unable to repay their debts.

Insurance — The pooling of risks of many individuals and businesses into an insurer/insurance company or large group in exchange for the payment of a premium .

Temporary financing ( Interim Financing ) — A short-term loan intended to provide temporary financing until permanent financing sources become available.

Iqtisad ( Iqtisad ) — Literally: restraint. Refers to the Islamic approach to economic issues.

Islah — Reform .

Islam ( Islam ) is a form of submission that requires the believer to submit their will to the One Almighty Lord (Allah), observing His laws in their souls and actions. The doctrine of the One Lord is the most clear and recurring principle of the Quran. No oaths or procedures are required for joining the Islamic faith. The word Islam comes from the word «silm,» which means peace.

Islamic banking ( Islamic Banking ( also known as Islamic banking ) — Financial services that comply with Shariah requirements. Islamic banking, conducted in accordance with Shariah requirements, is available not only to Muslims; financial service providers and clients do not necessarily have to be Muslims; they are only required to comply with Shariah requirements. Synonymous with Islamic financial activity or Islamic financial services.

Islamic banking is based on the Islamic faith, so all actions and deeds of its participants, as well as the conduct of business by Islamic banks, must comply with Shariah regulations. Shariah permits commercial activity that does not involve the receipt or payment of interest, known as Riba, speculation, or contractual uncertainty similar to gambling. An important fundamental principle of financial transactions is: «Deal justly, and you will be dealt justly» (Quran 2:279). Another important principle prohibits the pursuit of profit without assuming risk associated with labor and capital. This means that remuneration for labor is permitted only when applied to work, and profit from capital is permitted only when exposed to commercial risk. There are also rules related to economic activity and earnings, namely, Halal (what is permitted) and Haram (what is prohibited). Furthermore, another important principle emphasizes financing, which must be backed by an underlying asset. Commercial activities are regulated by contracts permitted by Shariah, the standard contracts being based on joint partnerships (Musharakah and Mudarabah), Murabaha (cost-plus financing), Ijarah (leasing), Istisna’ a (forward sale), Wadiah (safekeeping), Amanah (trust), Ka fala’ (guarantee), Kafala (representation), and Ju’ala (service fee). A reputable Shariah Supervisory Board consisting of Shariah scholars and consultants must be established; they must be independent and competent to decide on the moral aspects of proposed contracts and transactions, and to ensure that commercial activities are conducted in accordance with the requirements of Shariah.

Islamic finance ( Islamic finance ) — See Islamic banking and Takaful.

Islamic Financial Institution ( Islamic Financial Institution ) — A bank or financial institution that conducts business in accordance with the principles of Sharia. Abbr. IFI.

Islamic financial services ( Islamic Financial Services ) — See Islamic banking and Takaful.

Israf ( Israf ) — Wasteful spending, unnecessary financial expenses.

Istihsan ( Istihsan ) — Legal priority. In Islamic law, it refers to deviating from the application of a rule in exceptional cases through a more flexible approach to an action, the absence of which would lead to injustice or ruin.

Istijar ( Istijar ) — Lease; another less frequently used term for Ijara.

Istijrar ( Recurring Sale ) — A general agreement between a buyer and a supplier that provides for a continuous purchase (e.g., monthly) without the need to prepare a specific offer and confirm the order each month; the price is determined either in advance or after a set period, subject to certain conditions.

Istilah ( Istislah ) — That which is considered right; a method used by Muslim jurists to resolve the lack of clear rulings in religious texts. Related to the term M aslahah or «public interest,» Istilah shares similar characteristics with Western natural law. However, while natural law recognizes as right what is obviously right in human behavior, Istilah recognizes as right what is related to one of the five fundamental goals of Sharia: the protection of faith, life, descendants, property, and reason (some also add honor).

Istisna’a ( Istisna’a ) — A contract for the sale of specific goods to be produced for delivery. A forward sale; literally meaning to make or build. It is a contract for the sale of specific goods that can be sold before their actual production; a production (purchase) order allowing the buyer to pay the price of the goods progressively as the production or project progresses, or as a staged delivery; takes the form of progressive financing. A condition of Istisna’a is that the seller must provide the raw materials or pay the cost of manufacturing the goods. There is an obligation for the manufacturer to deliver the goods after completion of production according to the buyer’s specifications. Istisna’a can involve any process of production, including construction, assembly, or packaging. Islamic banks commonly adapt Istisna’a to finance large projects such as the construction of buildings, roads, or highways, the development of an industrial project, the construction of a ship or aircraft, or the assembly of a plant or equipment. The bank provides finance in stages according to the production schedule.

Initially, the bank acts as the seller under an Istisna’a contract with the client and undertakes to produce the goods the client requires at a specific price. The bank then acts as the buyer and enters into a separate Istisna’a contract with the supplier to produce the goods at a lower price, with the difference being the bank’s profit. Thus, the bank acts as a financial intermediary, but does not have to actually produce the goods required by the client. According to Sharia, a sale can only take place if the goods exist at the time of the contract. However, it has been argued that in Istisna’a, the needs for the goods are so specific that they cannot be produced prior to their sale, while the production order represents a manifestation of a general need, and the availability of the produced goods is relatively certain.

ITFO — Financial operations serving imports.

Jafri ( Jafri ) — «A school of Islamic law of the Shia school of Islam, developed by Imam Ja’far al-Sadiq ( 765 гCE) around the same period as the codification of Sunni legal copies of fiqh. It differed from Sunni law «in matters of inheritance, religious taxes, trade and personal status.» Al-Saqid is considered to be highly respected among Shia and Sunni Muslims for his outstanding work in the field of Islamic scholarship, pious character and scholarly achievements. Schools of Sunni Islam include Hanafi, Hanbli, Maliki, Shafi’i and, indirectly, Zahiri.

Jahala ( Lack of knowledge, ignorance ) . In contracts, it refers to a lack of information about the subject matter or ambiguity in the terms of the contract. It also refers to uncertainty, speculation, and uncertainty in the quantity, quality, or price of goods. Also known as Juhala.

Jahiliyyah — Literally: in the days of ignorance. The so-called pre-Islamic period. Muslims use the term to refer to the period immediately before the advent of the Prophet Muhammad (peace be upon him) and, in general, to the circumstances characteristic of such a period.

Jahl — See Jahal .

Ja’iz ( Ja ` iz ) — A contract that is not binding.

Ji’ala ( Ji ‘ ala ) — See Jua’la.

Ji’ala ( Ji ‘ alah ) — See Jua’la.

Jihad ( Jihad ) — Struggle or purposeful effort in the path of God. Literally, it means doing everything in one’s power to achieve a goal. It is not equivalent to war, which is denoted by the word «qital» in Arabic and the Quran. Jihad has a broader meaning and encompasses any kind of struggle in the name of God. Jihad, in a more general sense, can even be used when pursuing non-Islamic goals, such as those of a non-religious nature.

Jizyah — Originally meaning compensation; a poll tax that was previously paid by members of other religious groups in a Muslim state to protect life and property and preserve their own customs — Muslims, in turn, were required to pay Zakat as part of a religious obligation to support the poor and needy.

Ju’alal ( Ju’alal ) — See Juala .

Ju’ala ( Ju’ala ) — See Jua’la .

Ju a ‘lah ( Jua ‘ lah ) — Rendering services for a fee; a service charge. Literally: a set price for rendering some services. Performing a specific task for a set fee within a set period. Technically applied in the Islamic banking model by some participants. Muslim jurists have interpreted bank commissions as ju’ala and, therefore, it is considered legal. Also known as Ju’l, Ju’ala.

Some Islamic banks provide loans in exchange for a service fee. The Council of the Islamic Fiqh Academy, established by the Organization of the Islamic Conference at its third session held in Amman, Jordan, from 8-13 Safar 1407 (11-16 October 1986 г), approved the Islamic Development Bank’s decision on the permissibility of charging a fee for loan servicing by an Islamic bank. However, such a fee must correspond to the actual expenses, and any fee exceeding the actual expenses associated with servicing the loan is prohibited, as it is usurious in nature. The service fee can only be accurately calculated after a certain period, when all administrative expenses are known, for example, at the end of the year. Thus, it is permissible to charge an additional fee to the client and then settle the account (make a refund or receive the difference from the client) at the end of the accounting period, when all administrative expenses are accurately known. A similar contract is ‘ Ujrah ‘, according to which work is performed in exchange for a fixed fee.

Ju’hala ( Ju’hala) — See Jahala .

Jumhur Ulama ( Jumhur Ulama ) — According to the opinion of the majority of scholars.

Kafil ( Guarantor ) — Guarantor.

Kast Al Takaful ( Kast Al Takaful ) — Takaful contribution (premium).

Kafalah ( Kafala ) — A surety, an obligation in addition to an existing obligation to claim something. Literally, a responsibility or surety. It is a given guarantee or agreement. In a legal sense, a third party becomes a guarantor for the payment of another person’s debt. In Sharia, a surety is the creation of additional liability for claims against the debt, not the debt itself. The guarantor is known as a kafil. Islamic banks use kafalah to provide guarantees to commercial clients; for example, a bank may guarantee the client’s ability to carry out certain business projects, or a bank may guarantee the owner of a ship or a freight forwarder responsible for importing goods to deliver the goods until any shipping documents are received and the client delivers the imported goods. Also called kifala.

Khalabah — Misleading marketing; persuading uninformed customers by overstating the quality of a product .

Khayr ( Khayr ) — Good, beneficial, or supporting well-being.

Kharaj — Land use fee .

Khatar ( Khatar ) — A type of gharar. Khatar arises when the liability of either party to a contract is uncertain or conditional, the delivery of one of the exchanged goods is beyond the control of either party, or the payment by one of the parties is uncertain.

Khiyar ( Khiyar ) — Literally: option, choice. The ability to cancel a sales contract under certain conditions, such as in the case of defective goods. Jurists traditionally recognize various types of khiyar, including khiyar al-ru’ah/ro’at, khiyar al-‘aib/ayb, khiyar al-shart, and khiyar al-majilis.

Khiyar al-Aib/Aib ( Khiyar al — Aib / Ayb ) — The possibility of terminating a contract in the event of a defect being discovered.

Khiyar al-Ghabn al — Ghabn ) — The ability of the buyer to terminate the contract if he discovers that the seller has sold the goods at a price significantly higher than the market price.

Khiyar -e — Majlis Khiyar al — Majlis al — Majlis ) — The ability of the parties to suspend the performance of the contract until the parties leave the place where the contract was concluded.

Khiyar al-Nakad ( Khiyar al — Naqad ) — The ability of the seller to terminate the contract if the buyer fails to make payment within the stipulated time.

Khiyar al-Ro’yat ( Khiyar al — Ro ‘ yat ) — The ability to cancel a contract after physical inspection of the object of sale.

Khiyar al-Shart al — Shart ) — The ability to cancel a previously agreed upon sale transaction within a set number of days.

Khiyar al-Wasf al — Wasf ) — An option provided in case of unavailability of goods of the desired quality.

Khiyar al-Tayyin al — Tayin ) — The possibility of choice, according to which a person who has purchased two or three things of the same kind determines the period for the final choice from the purchased goods.

Kifala ( Kifala ) — See K ifala

Kifalah — See Ka falah .​

Quran ( Koran ) — See Koran.

Liabilities , Total​ Liabilities — The total value of financial claims on a firm’s assets. The total value of assets minus the net value of assets.

Limited Liability ( Limited Liability ) — Limiting shareholders’ losses to the amount of invested capital.

Limited right of recourse ( Limited Recourse ) — Rights only to specific property that can be used to pay off a debt.

Credit line ( Line of Credit ) — An agreement between a bank and a company that the company can borrow funds at any time without exceeding a set limit.

Loan agreement Agreement ) — A written contract between a lender and a borrower that defines the rights and obligations of each party with respect to a specific loan.

Reserve for losses ( Loss Reserves — A portion of income or permanent capital designated by the board of directors to cover any losses, but such funds cannot be used for borrowing purposes.

Loans with service charges ( Loans with service charge ) — The Council of the Islamic Fiqh Academy, established by a decision of the Organization of the Islamic Conference at its third meeting held in Amman, Jordan, on 8-13 Safar 1407 Г(11-16 October 1986), in response to a decision by the Islamic Development Bank on the permissibility of charging a loan fee in connection with services offered by an Islamic bank. However, such remuneration should not exceed the actual costs of providing the services; any markup is prohibited, as it is usurious in nature. See Qard Hasan.

Madhab ( Madhab ) is a school of fiqh or sect characterized by differences in methods or approaches, leading to different interpretations of certain sources and texts and, as a result, different readings of Sharia law. There are four known schools of Islamic law within the Sunni Islamic school of thought, which are associated with the classical jurists who founded these schools (Hanabali, Hanafi, Maliki, and Shafi’i).

Madinah is the second holiest city in Islam, located in the Kingdom of Saudi Arabia .

Mafhm al-Nass ( Mafhm al — Nass ) — Clear meaning of the text

Maisir ( Maisir ) — See Maisir

Mecca ( Makkah ) is the first holy city in Islam, located in the Kingdom of Saudi Arabia, the birthplace of the Prophet Muhammad (peace be upon him).

Makruh ( Makruh ) — Reprehensible, something not encouraged. A technical term used by lawyers to classify actions according to their appropriateness. Makruh refers to an action that is not expressly prohibited and, therefore, does not entail punishment.

Mal ( Mal ) — Wealth, money, property; any valuable things that may be in possession.

Maliki — One of the four generally recognized schools of Islamic law or religious law on the interpretation of the Quran and Sunnah. Founded by one of the classical jurists, Imam Malik ibn Anas ( 795 гCE ), the followers of this school are called Malikis. The other schools are Hanbali, Hanafi, and Shafi. Zahiri is another school developed by Dawud ibn Khalaf ( 883 гCE). The Jafri Shi’a school of Islamic law was developed by Imam Ja’far al-Sadiq ( 765 гCE) around the same time as its counterparts in fiqh were systematized. It differed from Sunni law «on matters of inheritance, religious taxes, trade, and personal status.»

Ma’lum ( Ma ‘ lum ) — Known; something that the parties are aware of.

Manfa’ah ( Manfa ‘ ah ) — Literally: benefit or security. The crop for which property is used. The term is used by lawyers to describe the usufruct (use or service) associated with a specific property, especially in rental transactions.

Maqasid ( Maqasid ) — Also Maqasid al-Sharia.

Maqsad ( Maqsad ) — A goal or highest wisdom, beyond law or legal norms. General goals of Islamic law, Sharia.

Market rate ( Market Rate ( interest rate ) — The interest rate a company must currently pay when borrowing funds. Investments for a project are often offered at a below-market rate or no interest rate at all.

Masali Mursala ( Masalih Maslahah (Mursalah ) — Public interest determined based on Shariah provisions. As a legal term, Maslahah (Mursalah) refers to the use of public interest as a basis in the absence of any directives on a matter in the Quran or Sunnah. Also known as Maslahah Al Mursala.

Maslaha ( Muslaha ) — Refers to the unlimited public interest (welfare). It is used to prohibit or permit something based on whether it is in the public interest or welfare or not. (Plural: Masali). Literally, it means benefit. Technically, it refers to any action taken to protect one of the five aims of Sharia: faith, life, descendants, property, and sanity.

Maslahat ( Maslahat ) — «Interest», as the interest of the state.

Mauqoof — Delayed , suspended for some time.

Maysir ( Maysir ) — Games of chance or gambling, an attempt to obtain easy money without providing an equivalent contribution. It is prohibited because it is a zero-sum game, transferring wealth from one person to another without creating additional value. One of the three fundamental prohibitions of Islamic finance, along with riba and gharar. The prohibition of Maysir is often used as a basis for criticism of traditional financial transactions, such as speculative trading, traditional insurance, and derivative financial instruments.

Mecca ( Mecca ) — See Mecca [The first holy city in Islam, located in the Kingdom of Saudi Arabia, the birthplace of the Prophet Muhammad (peace be upon him)]

Medina ( Medina ) — See Medina [The second holiest city in Islam, located in the Kingdom of Saudi Arabia]

Mezzanine Financing — Debt. A combination of debt and equity financing that is typically used to finance the expansion of existing companies.

Milkiya ( Milkiyyah ) — Property.

Miras ( Mirath ) — Heritage.

Mithlam-bi-mithlīn ( Mithlam — bi — mithlin ) — Comparable (in exchange transactions).

Mithli — Generic : perishable goods.

Mslahah — See Masala .

M u’ a mala ( Mu ‘ amalah ) — See Mu’amalat.

Mudarabah ( Mudarabah ) (1) — An investment partnership based on the principle of profit and loss sharing. One or more partners, as investors (Rab al Mal), provide 100% of the capital to an entrepreneur (a partner who provides business and management services and is known as a Mudarib) to carry out a business. Profits are shared among the partners based on a pre-agreed ratio, with any losses borne solely by the investor partner. For a Mudarib, a loss is a portion of the expected return on the effort put into running the business. Investors have no right to interfere in the management of the business, but can determine conditions for more efficient capital management. In this regard, Mudarabah is sometimes referred to as a limited partnership. As a financing scheme, an Islamic bank is entitled to provide the capital to the client to carry out the business. The client provides experience, human resources and management; Profits are distributed between the bank and the client based on a pre-agreed ratio. Financial losses are borne by the bank, and the bank risks losing all capital invested in the client, which is the basis for transferring a portion of the profits to the bank. Islamic banks often apply the concept of Mudarabah to the payment of income on client deposits held in an investment account. The bank is solely responsible for the management and investment of client deposits and uses these funds as the bank’s capital. The bank has the right to manage such funds at its own discretion and invest them in permitted activities it deems profitable, and profits will be distributed based on a prior agreement between the bank and the client.

Mudarabah (2) — A form of business partnership contract in which one party provides capital and the other party puts in personal effort to run the business as a manager or entrepreneur. Mudarabah is usually translated into English as profit and loss sharing. There is no loss sharing in a mudarabah contract. Profit and loss sharing is more accurately described as a musharakah contract. A mudarabah contract is more correctly described as profit sharing. Proportional distribution of profit is carried out by agreement between the parties; any loss that occurs is borne by the owner of the capital, and the entrepreneur simply receives nothing for his efforts. The investor is referred to as ‘rabal-maal’, and the entrepreneur as ‘mudarib’. In Islamic law, various responsibilities are distributed between these two parties. The owner of the capital, in principle, has no right to interfere in the management of the business, which is the sole responsibility of the manager/entrepreneur. However, the capital owner has the right to determine the conditions for more effective capital management. Therefore, mudarabah is sometimes called a limited partnership.

Mudarabah Sukuk ( Mudarabah Sukuk (also known as sukuk ) is a financing mechanism adopted by Islamic banks. It is a contract under which the entire capital is provided by the Islamic bank, while a third party manages the business. Profits are shared between the partners based on a pre-agreed ratio, and losses are borne by the Islamic bank, except in cases where losses arise due to negligence or breach of contract by the mudarib. The bank transfers responsibility for such losses to the depositors.

Mudarib ( Mudarib ) — A partner in a Mudarabah who provides business and management services to the partner providing the capital. Profits are shared between the partners based on a pre-agreed ratio, with any losses borne solely by the investing partner. For Mudarib, losses are a portion of the expected profit for the effort spent running the business. Investors have no right to interfere in business management, but they can determine conditions for more effective capital management.

Mudeer al takaful al takaful ) — Takaful operator.

Mufti — Islamic banks use Mudarabah in two forms. In the case of individual Mudarabah, an Islamic bank provides financing to a commercial enterprise managed by an individual or company on a profit-sharing basis. Joint Mudarabah can be used between investors and the bank on an indefinite basis. Investors keep their funds in a special fund and distribute profits, even if financing for transactions that have not reached their final stage is cancelled. Many Islamic investment funds operate on a Mudarabah basis.

Muhtasib ( Muhtasib ) — An authorized representative of a person.

Mujtahid ( Mujtahid ) — A legal expert or jurist who is engaged in the preparation of opinions on legal issues or the interpretation of sources of law.

Muqawala — A contract whereby one party undertakes to provide goods or perform work and the other party undertakes to pay compensation for it.

Murabaha (1) — Literally: a sale at a pre-agreed markup . Technically , a contract of sale in which the seller declares the purchase price and a profit. A contract of sale between a seller and a buyer; the seller sells specific goods to the buyer at a specified cost plus an agreed-upon markup by the seller. The seller is required to disclose the cost of the goods and the markup. A type of financing accepted by Islamic banks is in the form of Murabaha Muajjal , which literally means sale on credit; it is a contract in which the bank purchases the goods needed by the client and, after delivery of the goods, resells them to the client subject to an agreed-upon markup on top of the purchase price; it allows the client, as the buyer, to pay the higher price at a future date in one lump sum or in several payments. The concept, commonly referred to simply as Murabaha , is widely used as a financing scheme by Islamic banks instead of lending money to clients at interest. By paying a higher price to the bank, the client can effectively purchase goods on credit from the bank without borrowing funds at interest to purchase the goods directly from the manufacturer of the goods. Some question the legality of this financial practice, as the markup is essentially similar to the interest applied in traditional borrowing. However, the difference is that the bank is obligated to purchase the goods in its own name and bear all risks associated with the goods until they are resold to the client. See also Murabaha Mu’ajjal .

Murabaha (2) — Cost-plus financing — a sales contract between an investor or bank and a client for the sale of goods at a price that includes a profit margin agreed upon by the parties. As a financing arrangement , it involves the investor or bank purchasing the goods needed by the client. The goods are then resold to the client at a premium. Payment for the goods is typically made in several installments as specified in the contract. Some question the legality of this financial practice, as the premium is essentially similar to riba or interest.

Murabaha (3) — Markup financing or cost-plus financing. The word Murabaha comes from the Arabic word rib, which means profit. Murabaha was originally a sales contract that provided for a subsequent sale at a profit. The seller is obliged to inform the buyer of the original price and a markup. This contract has been slightly modified for use in the financial sector. The modern form of Murabaha has become the single most popular financing scheme among Islamic banks worldwide. Murabaha financing works like this: a client approaches a bank to obtain funds to purchase a specific commodity. A conventional bank would issue such a client a loan with interest. The client would go to the market and purchase the desired commodity. This option is not available to Islamic banks, since it is based on the use of interest. An Islamic bank cannot issue a loan with interest. It cannot issue a loan with zero interest, since it requires a profit to operate. The bank purchases the goods for cash and sells them to the client at an agreed-upon markup. The client purchases the goods from the bank on a deferred payment basis. Thus, the client receives the goods on credit, and the Islamic bank receives a profit beyond the amount it spent to purchase the goods and sell them to the client.

There are a number of requirements for a Murabaha transaction, as stipulated by Islamic standards for a lawful sale. The entire Murabaha transaction is completed in two stages. In the first stage, the client approaches the bank with a request for a Murabaha transaction and promises to purchase the purchased goods from the bank, but this promise is not legally binding under Shariah. If the client breaks their promise to purchase the goods, the bank risks losing all or part of the amount spent on the purchase, depending on whether the bank can find another buyer for the goods. In the second stage, the client purchases the goods purchased by the bank on deferred payment and agrees to a payment schedule. Another important requirement of Murabaha is that the sale involves two sales contracts, one in which the bank purchases the goods for the client, and the other in which the bank sells the purchased goods to the client. These two contracts must be separate and actual transactions. Some question the legality of this financial practice, as the markup is essentially similar to riba or interest.

Murabaha financing is widely used by Islamic banks to meet various types of financial requirements. It is used to provide funds for the purchase of durable consumer goods, such as cars and household appliances; in real estate, for the acquisition of housing; and in the manufacturing sector, for the purchase of equipment, raw materials, and so on. However, perhaps the most common use of Murabaha is short-term trade financing, for which it is more suitable than any other contract. Murabaha contracts are also used to issue letters of credit and finance import trade.

Murabaha Mu’ a jal ( Murabaha Mu’ajjal ( credit sale ) — Literally means credit sale. Technically, it is a financing scheme accepted by Islamic banks that takes the form of Murabaha Mu’ajjal. This is a contract in which the bank earns a profit on top of the purchase price and allows the client, as the buyer, to pay the purchase price later, i.e., a sale with deferred payment. Murabaha is generally considered a sale with deferred payment. Also known as Bai Mu’ajjal .

Commodity Murabaha ( Murabaha , commodity ) — Commodity Murabaha: a Murabaha contract using specific commodities through a precious metals exchange.

Murabaha ( Murabahah ) — See Murabaha.

Musaqah — A contract whereby the owner of a garden shares the harvest with another person (a worker) in exchange for the services of irrigating such garden .

Musakat ( Musaqat ) — See Mousaka.

Musawamah — Price negotiation in which the seller does not disclose the original price of the goods. Musawamah is a form of Murabaha, with the only difference being that the seller and buyer negotiate a price without disclosing the actual price paid by the seller for the goods; the seller may be unwilling to disclose the original price of the goods or may have information about the value of goods that may have been purchased in a consignment with other goods. Musawamah was a common form of negotiation in trade in the early days of Islam and is rarely used by Islamic banks today.

Musharaka — See Musharaka .

Musharakah (1) — The literal meaning of Musharakah is a sharing, investment partnership based on the principle of profit and loss sharing. All partners contribute capital to finance a commercial activity. The partners divide profits among themselves based on a pre-agreed ratio, while losses are shared among the partners in proportion to each partner’s capital contribution. The commercial activity can be managed by all partners, several partners, or a single partner. Musharakah allows Islamic banks to provide financing for the purchase of an asset needed by a client, with the bank investing the capital in the asset under a condition of joint ownership with the client, rather than providing an interest-only loan. The bank will receive a return on capital in the form of a share of the resulting profits based on a pre-agreed ratio. However, unlike a conventional lender, the bank will also bear losses. Musharakah is often used by Islamic banks to finance large projects. The concept differs from fixed-income investments.

Musharakah (2) — A partnership contract in which two or more partners provide capital and share profits or losses, as the case may be. An investment partnership based on the principle of profit-and-loss sharing. A musharakah contract is similar to a mudarabah contract, with the only difference being that in musharakah, all partners contribute capital and share both profits and losses. They also have the right, but not the obligation, to participate in management. All partners have the right to participate in the management of the project. However, partners also have the right to waive their participation rights in favor of third parties. Profits are distributed based on a pre-agreed ratio, while losses are shared among the partners in proportion to each partner’s capital contribution.

The term also applies to a financing scheme adopted by Islamic banks instead of borrowing at interest. It is an agreement whereby an Islamic bank provides funds that are pooled with the client’s funds, with both parties having the right to share in the profits based on a pre-agreed ratio, while losses are shared between the partners in proportion to each partner’s capital contribution. It is also known as a joint venture. Two forms of Musharakah are Permanent Musharakah and Diminishing Musharakah.

Permanent Musharakah ( Musharakah , Permanent ) — An agreement that allows for equity participation and profit sharing based on a pre-agreed ratio. The term of the contract is not specified, allowing Islamic banks to use it to finance projects that require funds to be provided over an extended period. Under this form of Musharakah, the Islamic bank holds a stake in the project and receives a share of the profits based on a pre-agreed ratio. The term of the contract is not specified, so it can be in effect for a period that is convenient for the parties. This arrangement is suitable for financing long-term projects where cash infusions are required over an extended period, and the project implementation period can also be very long.

Diminishing Musharakah ( Musharakah ) — Another form of Musharakah permitted by Shariah scholars as a financing scheme in recent years. An agreement that combines the partnership concept of Musharakah (investing in a joint asset) and leasing . It permits equity participation by the bank and the client in an asset and provides a mechanism by which the bank gradually reduces its stake in the project and ultimately transfers ownership of the asset to the client. In this case, the client acquires the bank’s share in the asset, progressively reducing it until the bank loses its share and ceases to be a partner. Until such a point, the bank transfers the use of its share to the client, who pays the bank a rent for the use of the bank’s share in the asset. Islamic banks use this scheme (known as an Islamic mortgage) to finance home purchases.

Mushtarik ( Mushtarik ) — Participant in Takaful.

Mustahab — Deserving of approval .

Muzara’a ( Muzara ‘ a ) — Tenant farming: an agreement whereby one party undertakes to cultivate the land of another party in exchange for a share of the harvest from such land.

Najash — The prohibited practice of deceiving and inciting a potential buyer of goods during the preliminary negotiations or bargaining process in order to obtain an inflated price that does not correspond to the true value of the goods.

Nass ( Nass ) — An Arabic word meaning «known or clear legal precept.» A word or text that has one meaning; a text from a lawyer’s work.

Net working capital ( Net Working Capital ) — Current assets minus current liabilities.

Nisab ( Nisab ) — The tax limit for zakat payments. It varies depending on the type of wealth.

Non — Commutative — A sales contract in which the seller delivers the item sold and receives no consideration in exchange. Opposite of Substitute .

Opportunity costs Cost ) — The potential benefit that was lost as a result of abandoning the best (financially optimal) alternative course of action.

ME ( PBUH ) — «Peace be upon him. Muslims say Peace be upon him (me) after every mention of the Prophet Muhammad, showing their respect. The Arabic translation of the expression peace be upon him is sallallahu alayhi wa sallam, which is usually abbreviated S . A . W .»

Permanent Musharakah ( Permanent Musharakah ) — See Permanent Musharakah

PLS ( Profit and Loss Sharing ) – This term is used for financing schemes based on the principle of interest-free borrowing and the use of mudarabah and musharakah.

Portfolio — A group of assets used for investment, including for financial and non-financial gain. Assets in a portfolio typically vary in type and size to achieve an acceptable level of risk and return .

Principal — In commercial law, this is the amount that is lent in the case of a loan, or the amount on which interest is charged .

Promissory Note Note ) — A promise to repay a debt. A written contract between a borrower and a lender, signed by the borrower and serving as evidence of the borrower’s indebtedness to the lender.

PSA — Participants ‘ Target Account, as in Takaful.

Qadi — Judge​

Qabul — Confirmation of terms (in a contract). Opposite of Ijab.

Qard ( loan ) . Literally, to cut or cut off. The name derives from the fact that the property (specifically, wealth) of a person (the lender) is «cut off» and given to a person in need (the borrower) without any benefit or profit. The borrower is obligated to repay the lender only the principal amount of the loan upon demand. The Quran encourages people to contribute generously to social welfare and to help those in need, and «if a debtor is in dire straits, grant him time until he is able to repay the debt. But if you forgive the debt as a charity, it will only benefit you…» Since charging interest is prohibited, Qard is always associated with ‘Hasan,’ which literally means ‘kindness of others,’ and refers to a voluntary act with good intentions. Qard should not be confused with ‘Dain,’ which refers to a debt incurred as a result of a credit transaction. A loan under Shariah can be classified as Salaf or Qard, with Salaf being a fixed-term loan and Qard being a loan repayable on demand. See also Qard Hasan and loans with service charges.

Qard al hasana ( Qard al hasana ) — See Qard Hasan

Qard Hasan ( Qard Hasan (1) — A noble loan. A loan in the sense of a noble loan implies the absence of interest and is provided voluntarily, mainly for the purpose of maintaining welfare; the borrower is obliged to repay only the borrowed amount. The loan is repayable on demand, and repayment is mandatory. However, if the debtor is in difficulty, the lender is expected to extend the loan repayment period or even voluntarily cancel its repayment, partially or in full. Islam permits lending as a form of social service among the wealthy to help the poor and needy. Qard Hasan can be considered something between charity or donation and providing a loan (qard). The debtor has the right to voluntarily decide to pay the lender an additional amount above the principal debt (without obligation) as a sign of gratitude. This type of loan does not violate the prohibition of Riba , since it is the only type of loan that does not compensate the lender for the time value of the money. Such loans were quite common throughout human history among partners, friends, family, and relatives. Also known as Qard al-Hasan . See also: Loans with Service Fees.

Qard Hasan ( Qard Hasan (2) — An interest-free loan given either for the purpose of maintaining wealth or to meet short-term financing needs. The borrower is obligated to repay the principal amount of the loan. Most Islamic banks provide such interest-free loans (Qard Hasan) to their particularly needy clients. If this practice is not feasible on a large scale, then even in this case, it is necessary to meet the needs of at least some of the needy, including bank clients and students. The Islamic concept of a loan (Qard) is that the loan should be provided to the borrower free of charge. A person requests a loan only if he or she truly needs it. Thus, it is the moral duty of a lender to help his or her needy brother. A lender should not seek to benefit from anyone in need. He or she should help the needy by providing them with free loans. The reward for such actions will be determined by God. Thus, the term is designated as Qard Hasan (noble loan), which symbolizes the noble nature of borrowing.

Qimah — Literally : Selling goods at their actual value; the price is determined by the quantity and quality of the goods and reflects the principles of a free market and fair dealing. Technically: Selling through a broker with the goal of selling the goods at a specified minimum price, with the broker retaining any amount received above the set price.

Qimih ( Qimih ) — Practices vary among Islamic banks in this regard. Some consider interest-free loans a privilege and issue them only to investment account holders. Others offer such loans to all bank clients. Others limit their loans to needy students and other economically vulnerable groups. Other Islamic banks, meanwhile, provide interest-free loans to small producers, farmers, and entrepreneurs who are unable to obtain resources from other sources. The purpose of such loans is to help them conduct independent economic activity and, consequently, improve their income and living standards.

Qimar ( Qimar ) — Literally: gambling. Technically: an agreement whereby the right to own property depends on the occurrence of an uncertain event. Indirectly refers to agreements that clearly define one party’s loss and the other party’s gain, without specifying which party will suffer the loss and which will gain. Another word for maysir.

Qimer — See Qimar

Kimi ( Qimi ) — «Non-interchangeable goods»

Qirad ( Qirad ) — An Arabic term used to denote the placement of capital for a partner for use in a commercial project. A synonym or other name for mudaraba.

Kiyami ( Qiyami ) — See Kimi

Qiyas ( Qiyyas ) is a process of analogical reasoning used to derive legal principles from the Quran and Sunnah (standard community practice). Together with the Quran, Sunnah, and ijma (scholarly consensus), it refers to the four sources of Islamic law. By using this method, the prescriptions of the Sunnah and Quran can be used to resolve a new problem that may arise. In this case, the established precedent or paradigm and the newly arisen problem must meet certain requirements (illa). Illah is a specific set of circumstances that trigger a specific law. Sunni and Shia Islam share the same interpretation of the Quran, Sunnah, and ijma (consensus) as sources of Islamic law, although their positions on the use of these sources differ significantly. The schools also have different views on the fourth source. Sunni Islam uses qiyas as the fourth source, while Shia Islam uses adl (reason).

The Quran is the Holy Book of Islam. Its literal meaning is «reading aloud.» Muslims believe the Quran is God’s final message to humanity. It is a book that emphasizes actions rather than ideas. The rules laid out in the Quran are universal, and their application is not limited to one ethnic group, a specific territory, or a specific time period. The Quran differs fundamentally from other sacred scriptures: it emphasizes reason as the true path to faith, as well as the indivisibility of the spiritual and physical (and therefore social) spheres of human existence: the inseparability of people’s everyday actions and behavior, essentially «worldly,» from spiritual life and destiny. «The Quran represents a revealed scripture in the spiritual tradition of the Torah and the Gospel transmitted by Moses and Jesus. Joining the known predecessors of the earlier dispensation of the original religion, the Quran presents its teachings as a confirmation and clarification of the truth of the aforementioned messages. As the final link in a chain of revelations stretching back to time immemorial, even to the origin of humanity, the Quran fulfills the special task of restoring the original message of all revealed scriptures and separating this message from the opinions and reactions embedded in ancient texts whose laws were disseminated in very ancient times.»

Slave st -Ma al (Rab-al-maal) — See . Rab st. Ma l.

Rab al- Ma l ( Rab al — Mal ) — See Rab st. Ma l.

Rab ul- Ma l ( Rab ul — Mal ) — Owner of capital. In a mudarabah contract, the person who invests the capital (the owner of the capital or investor); investor in a mudarabah contract.

Rahn ( Pledge ) . Security; technically and legally, it means to pledge or deposit real or tangible property of material value as security for a debt or monetary obligation so that the creditor can repay the debt in the event of default by selling the pledged property. Security provided for the payment of a debt. Also known as Al-Rahn, Rahn, or Rihn.

Ramadan is the month of fasting for Muslims. It is the ninth month of the Islamic calendar, during which Muslims fast; it is also a time for reflection, prayer, and self-denial .

Ras-al-Mal ( Ras — al — Mal ) — Capital; money or property that an investor (rabb al-mal) invests in a project aimed at making a profit, often in a partnership such as mudaraba or musharaka.

Reinsurance purchased by an insurance company (insurer). The reinsurer, such as a reinsurance company, acquires a portion of the risk and a portion of the premium assumed by the original insurer. Reinsurance effectively increases the insurer’s capital, allowing it to sell more insurance. The reinsurer does not pay policyholder claims; it reimburses the insurer for claims paid by the original insurer.

Real estate ( Real Asset — Physical, tangible, or material assets such as gold, land, equipment, land title, etc. As opposed to financial assets.

Accounts receivable ( Receivables ) — Accounts receivable; the amount of debt owed to a business by one of its customers who has been granted credit,

Recourse — The right, as provided by an agreement, to demand repayment of a debt from the party who has assumed the obligation. A recourse loan provides the lender with the right to seize any property of the borrower in the event of default. A limited-liability loan allows the lender to seize only the property specified in the loan agreement. A non-recourse loan limits the lender to the property for which the financing was provided—an approach commonly used with mortgages and other real estate loans.

Reinsurance — Insurance purchased by an insurance company (insurer). The reinsurer, such as a reinsurance company, acquires a portion of the risk and a portion of the premium assumed by the original insurer. Reinsurance effectively increases the insurer’s capital, allowing it to sell more insurance. The reinsurer does not pay policyholder claims; it reimburses the insurer for claims paid.

Religious Council ( Religious Board ) — A religious council in Islamic financial institutions, consisting of Sharia scholars or consultants, is formed to ensure compliance with Sharia requirements; it performs an advisory and oversight function. Also known as a Sharia Supervisory Board.

Retakaful ( Retakaful ) — «Reinsurance based on Islamic principles. It is a mechanism used by insurance companies to protect their business by expanding their geographic reach and obtaining coverage, above certain thresholds, from larger, specialized reinsurance companies. Reinsurance has been defined as «insurance of the liabilities of the direct insurer.» Reinsurance of Takaful business based on Islamic principles is known as Retakaful.»

Restructuring — A revision of a financial agreement that modifies the terms or provisions of the original agreement. For example, the parties may agree to restructure a loan agreement by easing the repayment schedule if the borrower defaults on their repayments.

Riba ( Riba ) — Literally: increase or addition. Technically, it refers to an increase or augmentation of capital received by the lender as a condition of the loan. Simply put, Riba refers to any monetary income derived from the provision of funds; fixed and floating interest rates, simple and compound interest rates, and any other types of interest whose payment is guaranteed, regardless of the investment’s performance, are all considered to be riba and are therefore prohibited. Riba in any form is strictly prohibited in Islamic tradition, as it is considered unfair earnings that lead to unjust enrichment. Commonly perceived as «interest» charged for the provision of funds, the legal definition of Riba goes far beyond interest. It is one of the three fundamental prohibitions in Islamic finance, along with gharar and maysir.

The prohibition against paying or receiving fixed interest is based on the Islamic principle that money is merely a medium of exchange, a means of determining the value of things; it has no value in itself and, therefore, should not be used to obtain additional monetary resources by accepting fixed interest payments for funds provided by a bank or other institution. Human skill, initiative, and risk applied in a productive enterprise are more important than the money used to finance it. This prohibition should not be confused with the rate of return or return on capital, as earning and distributing profits derived from real economic activity is widely encouraged in Islam. Furthermore, ex-post profit symbolizes the creation of added value as a result of successful entrepreneurship, while predetermined interest is a cost that accrues regardless of the profitability of the commercial activity and can generate income even if the business is unprofitable.

Sharia scholars permit Islamic banks to charge penalties to debtors who default on their obligations, with the fines being donated to charity. This provision is intended to combat unscrupulous debtors and those who attempt to exploit the Sharia prohibition that a lender has no right to increase the principal amount owed if a borrower fails to repay a debt by the due date.

The elimination of interest in transactions does not mean that banks cannot operate as financial intermediaries and earn profits from the services they provide. Islam fully recognizes the beneficial role of financial intermediation. Historically, the role of financial intermediaries in the Islamic economy is based on the principle of al-mudarib yudarib, a practice that has existed in Islamic history since the earliest centuries. It can be described as, «one who raises funds on the basis of profit sharing has the right to make these funds available to other users on the same basis.» Similarly, in ijarah, the party who owns property has the right to sell the rights to use it to another party in exchange for a set rent. Sharia scholars view profit-making from acting as an intermediary as a genuine activity, and this concept of financial intermediation is intertwined with the production and exchange of real goods and services.

Riba al-buyu ( Riba al — buyu ) — Usury of trade. Another name for Riba al-fadl.

Riba al-fadl ( Riba Riba al — fadl (al- fadl ) is a trade transaction in which a commodity is exchanged for the same commodity but in a different quantity, such as an unequal exchange, in which a larger quantity of a lower-quality commodity is given in exchange for a smaller quantity of a higher-quality commodity, resulting in a surplus. The concept of riba al-fadl applies to barter and buying and selling transactions. To avoid riba al-fadl, the exchange of goods from both parties must be equal and immediate. Riba al-fadl was prohibited by the Prophet Muhammad (peace and blessings of Allah be upon him) to prevent the spread of riba in the economy. It is also known as riba al-buyu.

Riba al-diyun ( Riba al — diyun ) — Interest/usuri on debt. Another name for Riba al-nasia.

Riba al-nasia ( Riba Al — nasiah ) — Lending based on interest. Riba on the delay or usuri of a debt, caused by deferred exchange with or without exceeding the value of one of the equivalents. The increase in the principal amount of a debt or loan paid by the borrower. Refers to the practice of borrowing money for a specified period with the understanding that the borrower will repay the lender the amount originally lent, plus interest on top of that amount, which is the lender’s reward for giving the borrower time to repay the loan. Usuri of debt was a common practice among Arabs in the pre-Islamic period. The increase was known as riba al-nasiyah. Interest in traditional banking is referred to as riba al-nasiyah. Also known as riba al-diyun.

Ribh ( Ribah ) — The basis of murabaha. Cost plus profit. Refers to a sale in which the seller sells an object, and the value of the object is known to the buyer.

Rihn — See Rahn .

Extension of term ( Roll Over ) — Before or at the maturity date of a loan or investment, the parties involved agree to extend the maturity of the loan or investment for the other party.

Ruq’ a ( Ruq ‘ a ) — A banking instrument of the early Muslim period. It was a payment order for receiving money from a bank.

Rushd ( Rushd ) — Age of legal capacity, maturity, majority, as in Takaful.

Sadaqah — Charitable contribution. An act of mercy.

Sadaqah​ jariyah ) — An act of mercy with long-term benefits.

Sadaqah al-zara’i ( Sadaqah al zara ‘ i ) — A prohibition of an action which, in the absence of such prohibition, may lead to another prohibited action.

Sahih — Valid, secured by contract. Opposite of Batil .

Salaf ( Salaf ) — In a broader sense, refers to a loan that does not generate a profit for the lender and differs slightly from Qard in that the amount provided as Salaf cannot be withdrawn until its maturity; it includes loans for a specific period, i.e., short-, medium-, and long-term loans. See Qard.

Literally, advance payment with deferred delivery. Salaf is another name for salam, a type of sale in which the price of a product is paid in advance, with delivery of the product or equivalent at a future date; thus, the contract creates an obligation for the seller to deliver the product within the specified time. See salam.

Salah — See Salad .

Salam ( Salam ) — A forward sale in which the full price of the goods is paid in advance at the time of the contract; the goods are not available for immediate delivery but can be delivered at a specified future date. In other words, an advance purchase or a type of sale in which the full price of the goods is paid in advance and the goods are delivered later at a specified future date. Similar to a modern forward sale contract. According to Sharia, a sale can only be made if the goods exist at the time of the contract. However, this type of sale is an exception, and the goods and the delivery date must be specified. Exceptions were applied in the early days of Islam to meet the needs of small farmers in Arabia who needed money to grow crops and support their families before the harvest was ready for sale; due to the prohibition of riba, they could not borrow money at interest; they were allowed to sell agricultural produce in advance of the harvest for deferred delivery and accept advance payment. The object of sale must be physical goods that can be characterized by quantity, quality, and workmanship. This type of financing is often used in the agricultural sector, where Islamic banks provide interest-free funds for various purposes and, in exchange, receive a share of the harvest, which they sell upon delivery. To protect against price declines, the bank has the right to sell the goods to third parties before delivery, entering into a parallel contract called Salam. Salam applies to all physical goods that can be characterized by quantity, quality, and workmanship.

Salat ( Salat ) — Obligatory prayers five times a day, practiced by Muslims as an appeal to Allah swt.

Sallahu Alaihi Wassalam ( Sallalahu Alayhi Wassalam ) — Denoted by the abbreviation S.A.W. , meaning «peace be upon him and may God bless him » in relation to the Prophet Muhammad. Me is more commonly used .

Sarf ( Sarf ) — Currency exchange. In the pre-Islamic period, gold was exchanged for gold, silver for silver, gold for silver, and vice versa. In Islamic law, such an exchange is considered a «sale of value for value» (Bai al-Taman bil-Taman), and each value is a consideration for another value. It also refers to the sale of monetary value for monetary value in currency exchange, specifically, in currency purchase and sale transactions.

Saw’am-bi-sawaa ( Saw ‘ am — bi — sawaa ) — Equal payment for an equal equivalent (in exchange transactions).

Security — Collateral provided to guarantee the performance of a contract or obligation. Security can include real estate, equipment, or a guarantor. A mortgage is one of the most reliable forms of security, as it is registered in accordance with a formal legal procedure. A mortgage grants the lender the right to seize the asset for which the loan was provided in the event of default.

Senior Debt Debt ) — A debt that is subject to repayment first in the event of the debtor’s insolvency.

Shafi’is ( Shafi ‘ is ) — «One of the four generally known schools of Islamic law or religious law on the interpretation of the Quran and Sunnah. Founded by one of the classical jurists, Imam Abdullah Muhammad ibn Idris al-Shafi Abu Hanifa ( 804 г. CE), the followers of this school are called Shafis. The other schools are Hanbali, Hanafi, and Shafi. The Shafi school is considered the earliest school of social and personal guidance. Zahiri is another school developed by Dawud ibn Khalaf ( 883 г. CE). The Jafri Shi’a Islamic school of Islamic law was developed by Imam Ja’far al-Sadiq ( 765 г. CE) around the same time as its counterparts in fiqh were systematized. It differed from Sunni law «on matters of inheritance, religious taxes, trade, and personal status.»

Shafis ( Shafis ) — See Shafites

Sharia ( Shari’ah ) — Often used as Islamic law. Sharia as a legal precedent did not exist at the time of the revelation of the Quran. It is a system that is often misinterpreted in the West. Refers to the guidance contained in and based on the Quran and the Sunnah (sayings and personal example of the Prophet Muhammad (may peace and blessings of Allah be upon him)). It applies to every action taken by an individual or society. It is primarily based on the values of Islam and takes into account the best ways to protect it. The inherent values of Sharia are faith, life, intellect, inheritance of teachings, property, protection of honor, fulfillment of contracts, preservation of kinship ties, protection of the rights of neighbors, love of God, honesty, trustworthiness, and moral purity.

The linguistic meaning of the word Sharia is an inexhaustible source of water from which people quench their thirst. Thus, the linguistic significance of Sharia lies in the fact that Islamic rules are a source of guidance. Since water is the basis of life, Islamic rules are the primary source of guidance for human life.

The method of finding solutions to new issues in accordance with the goals and principles of Islam is Ijtihad (independent reasoning), Ijma (consensus) and Qiya (analogy), all of which are defended and supported by the Quran and Sunnah.

Shariah Consultant​ Advisors ) — Independent Islamic scholars who advise Islamic financial institutions, regulate, and oversee the development of Sharia-compliant products and the implementation of Sharia-compliant operations. Typically, they are Islamic jurists of the classical school. While Islamic financial institutions consult individual Sharia advisors, many establish a committee of Sharia advisors, often known as a Sharia Board or Sharia Supervisory Board. See also: Sharia scholar.

Sharia Council ( Shariah Board ) — See Sharia Supervisory Board. Also known as the Sharia Supervisory Committee.

Shariah-compliant — A term used in Islamic finance to denote the compliance of a financial product or activity with Shariah requirements, such as Shariah-compliant financing or Shariah-compliant investments. The principles of Islamic financial transactions are determined by Shariah based on the Quran and Sunnah. Key characteristics in the application of Shariah to financing schemes are that transactions must be based on tangible assets and must not involve interest (riba). Profit generation is actively encouraged, and many experts identify risk sharing as a key characteristic of Islamic finance. Shariah principles also prohibit uncertainty (gharar), speculation or excessive uncertainty (maysir), and gambling (qimar), as well as activities in certain prohibited areas.

Sharia scholar ( Shariah Scholar ) — An Islamic Sharia scholar who has the necessary knowledge and competence in the field of Sharia and its concepts regarding economic and financial matters.

Shariah Supervisory Board Supervisors Board ) — A body, usually a committee, consisting of Islamic scholars competent in Shariah and its concepts regarding economics and finance, appointed by an Islamic financial institution, which monitors compliance with Shariah requirements in the development of new products and operations.

The scholars must be independent and competent to decide on the moral aspects of proposed contracts and transactions, as well as to ensure that commercial activities are conducted in accordance with Shariah requirements. The committee is commonly referred to as the Shariah Council or Shariah Supervisory Board, and is also known as the Shariah Committee.

Sharikah -al-Mufawadah ( Equal Partnership ) . Partnership with unlimited liability .

Sharikah-al-Sanai ( Sharikah — al — Sanai ) — Same as Sharikah-al-Abdan.

Sharikah — al — Wujuh ( Partnership based on trust ) .

Shirkah ( Shirkah ) — Joint ownership, partnership. A contract between two or more individuals who begin a business or financial project with the goal of making a profit. In modern Islamic banking and financial terminology, Shirkah can include Mudarabah, Musharakah, and other activities and commercial partnerships similar to Musharakah.

Shirkatulaqd ( Shirkatulaqd ) — A contract between two or more individuals who are starting a business or financial project with the goal of making a profit. Generally referred to as ‘Shirka’.

Shirkatulmilk — Partnership based on ownership of property, which may arise automatically, as in the case of inheritance of property, e.g., between two brothers, or voluntarily, when two persons acquire property in joint ownership (not for commercial use).

Speculation is a process that relies on the analysis of massive economic and financial data, company financial reports, political decisions, information about management skills and experience, and personal data about decision makers. Financiers would call this financial planning, budgeting , or investing. Finance involves the risk of loss. Speculation involves risk-taking.

Subordinated debt (Subordinated debt) ( Subordinated Debt ( Junior Subordinated debt is a debt over which payment of a senior debt takes priority. In the event of bankruptcy, holders of subordinated debt will receive payment only after the senior debt is fully paid . Subordination of a security interest allows another creditor to have rights to the proceeds of the sale of such property before the claims of the subordinated debt holder are satisfied .

Suftaja ( Suftaja ) — See Suftaja .

Suftajah ( Hawala ) is a type of banking instrument used to extend credit in the early Muslim period, particularly during the Abbasid period (749–750 1258 гCE). It was used to collect taxes, distribute government revenues, and transfer funds between merchants, often used by traveling merchants. It involves three parties: the payer, the payee, and the sender of money. A suftajah is payable at a future date or immediately. A suftajah belonging to one party can be transferred to another party. Arab merchants have used endorsements (hawala) since the time of the Prophet Muhammad (peace be upon him). It differs from a modern bill of exchange in that the amount transferred by a suftajah must remain identical, and payment must be made in the same currency.

Sukuk ( Sukuk ) is a financial certificate. It has similar characteristics to a traditional bond, with the only difference being that the assets are secured; sukuk represent proportional beneficial ownership of the underlying tangible assets of specific projects or investment activities. Since the use of conventional interest-bearing bonds is prohibited, the sukuk issuer sells the certificate to an investment group, which then leases it back to the issuer in exchange for a specified return in the form of rental payments. The issuer also assumes a contractual obligation to repurchase the bonds at par in the future. Sukuk must link the income and cash flows of the financing to the acquired assets or the income generated by the acquired asset. This is because debt trading is prohibited by Shariah; as such, financing can only be provided for identifiable assets.

Sunnah ( Sunnah ) — Literally, custom, habit, or way of life. Generally understood as the sayings and actions of the Prophet Muhammad (peace and blessings of Allah be upon him), recorded in the books of Hadith and Sunnah, which are a source of law on par with the Quran; the Quran cannot be understood without applying the Sunnah.

SWT — Refers to «Subhanah wa-ta’ a la , » an Islamic Arabic phrase meaning, «glorified and exalted is He (Allah).» The phrase (usually abbreviated as » swt «) is often used after Allah’s name in Islamic texts such as the Quran and Hadith. The use of this phrase is a symbol of Muslims’ deep respect and worship for Allah.

Ta’awuni ( Ta ‘ awuni ) — The principle of mutual assistance.

Tabarru ( Tabarru ) is an act of charity at the expense of another person, voluntary and without coercion. A contract of voluntary contributions, whereby the parties agree to mutual assistance by providing funds in the event that one of the partners suffers a loss. A contract to provide goods or services to someone without any compensation. Takaful is commonly used in relation to both Islamic insurance and the mandatory Shariah-compliant system. The concept of Tabarru is more specific to the takaful system and frees it from uncertainty and risk. In Takaful, a party to a contract agrees to transfer a predetermined percentage of the contribution to a Takaful fund established to support other participants. In this way, the participant fulfills the obligation to provide mutual assistance and bear collective responsibility. Also known as Akd Tabarru.

Tafwid — Instruct .

Tahsinat ( Tahsinat ) — Leading to a worthy life.

Takafol ( Takafol ) — See Takaful.

Takaful ( Takaful ) is an Arabic word meaning «mutual guarantee» or joint guarantee based on mutual support and collective responsibility, whereby a group of individuals agree to a joint guarantee to protect against specific losses. Known as Islamic insurance, it is a form of insurance based on the Qur’anic principle of mutual assistance (ta’awuni). It takes the form of a joint voluntary fund established for the purpose of mutual protection, collective responsibility, and risk sharing in the event that any of the fund’s participants incurs a loss. Participants make regular cash contributions to such a fund. Takaful schemes are designed to prevent the use of elements of traditional insurance (i.e. , interest and risk), as well as investing funds (takaful) in activities prohibited by Sharia.

A reputable Shariah Supervisory Board should be established, consisting of Shariah scholars and consultants; they should be independent and competent to decide on the moral aspects of proposed contracts and transactions, and to ensure that commercial activities are conducted in accordance with the requirements of Shariah.

Reinsurance according to Islamic principles is known as Retakaful; reinsurance is a mechanism used by direct insurance companies to protect their business by expanding their geographical coverage and obtaining protection, above certain thresholds, from larger specialist reinsurance companies.

Takafud al ta’awuni ( Takaful al ta ‘ awuni ) — A cooperative concept of risk sharing and mutual assistance among members of a group or scheme.

Tam’in ( Tam ‘ in ) — Insurance.

Tamlikat ( Tamlikat ) — Contract: acquisition of property.

Tamthil — Resemblance or similarity .

Taqyidat ( Taqyidat ) — Contract: restrictions.

Taslif ( Taslif ) — Sale on prepayment terms.

Tauthiqat — Contract : security.

Tawakkul ( Tawakkul ) — Faith in God to achieve results after all necessary efforts have been made. One of the most important values of Muslims. Muslims believe that after all necessary efforts have been made, the result is in God’s hands.

Tawaruk ( Tawaruq ) — See Tawarruq.

Tawarruq ( Reverse Murabaha ) is a form of tantamount to acquiring cash through trade transactions. Technically, according to Muslim jurists, Tawarruq can be defined as: a person who purchases a commodity at a deferred price with the intention of selling it for cash at a lower price. Typically, the sale is made to a third party for the purpose of obtaining cash. This is a classic form of Tawarruq, permitted if it complies with the Shariah requirements of trade (bai).

Tawarruq is a scheme by which some Islamic banks provide personal financing to provide their clients with cash. When used for personal financing, the client purchases a commodity from the bank on deferred payment; the client then sells the commodity on the market to third parties for cash. Islamic banks also use Tawarruq to guarantee a predetermined interest rate on investment deposits by purchasing the commodity from the client on deferred payment and then immediately selling the commodity for cash. The deferred price paid to the client is higher than the cash price paid to the bank. This scheme is called organized Tawarruq, since the purchase and sale transactions are carried out simultaneously, and the bank bears no risk. Reverse Tawarruq is also used by some Islamic banks to manage their liquidity; it is similar to organized Tawarruq, but in this case, the bank acts as the client.

The opinions of classical Muslim jurists are divided regarding the permissibility of Tawarruq from a Shariah perspective. The position of Imam Ahmad Ibn Hanbal is that Tawarruq is a prohibited practice (haram). Another view, held by Imam Muhammad Hasan al-Shaybani, Imam Malik, and others, is that Tawarruq is a discouraged practice (makruh). Imam Ibn Taymiyyah viewed Tawarruq as an exceptional practice that is permitted in special cases (darura), when a person urgently needs cash. The opinions of modern Muslim jurists are also divided regarding the permissibility of Tawarruq from a Shariah perspective. The Shariah Advisory Council of the Central Bank of Malaysia ( Bank Negara At its 51st meeting held on July 28 , 2005 гthe Bank of Malaysia (BKM ) resolved to permit deposit instruments and financing based on the concept of Tawarruq, known as Commodity Murabahah. In 2006, the Shariah Advisory Council of the Central Bank of Malaysia also resolved to permit the use of ijara sukuk and Shariah-compliant securities as underlying assets in Tawarruq or Murabahah for liquidity management in Islamic finance.

The Islamic Fiqh Academy of the OIC, at its 19th session held in April 2009 (Resolution 179 (19/5) on Tawarruq: its meaning and types (classical scheme and organized Tawarruq), decided to prohibit both types of Tawarruq (organized and reverse), since parallel transactions (directly or indirectly, or based on traditional practice) arise between the bank and the client in exchange for financial obligations. This is considered a deception aimed at quickly obtaining additional cash from the contract. Therefore, it is considered that there is an element of riba in the transaction. In order to ensure that Islamic banking and financial institutions use investment and financial schemes that comply with the principles of Sharia, they are obliged to avoid the use of any questionable and prohibited financial schemes to fulfill the requirements of Sharia, as well as to actualize the objectives of Sharia through such schemes (maqasid Sharia). In addition, this will ensure the progress and actualization of the socio-economic goals of the Muslim world. The Islamic Fiqh Academy of the OIC also passed a resolution to encourage banks to provide Qard Hasan (charitable loans) to needy customers in order to prevent banks from using Tawarruq instead of Qard Hasan.

Tawheed — See Tawheed .

Tawhid ( Tawhid ) — In Arabic, it refers to the attribution of Exclusivity to Allah and His description as the One and Unique, without any partner in His Essence and Symbols. Strictly unitary; a reference to the One Lord.

Term — The maturity date or period of time until final payment of a loan, bond, sale, or other contractual obligation is fulfilled.

Saman ( Thaman ) — Exchange of all forms of currency.

Sawab ( Thawab ) — Reward.

Tijarah — Trade ; Business.

Ujrah — Financial payment for the use of services (wages, remuneration, commission, fee).

Ukhuwah — Brotherly spirit.

Ulama — Scholars , Muslim scholars trained in Islam and Islamic law.

Ulema ( Ulem ) — See Ulama.

Ummah ( Ummah ) — Diaspora or ‘Community of Believers’ (ummat al-mu’minin), the world community of Muslims.

Umra — See Umra .

Umrah ( literally : visit or visit). This is a mini-pilgrimage to Mecca, which is optional but highly recommended and can be undertaken at any time of the year.

Укуд-и-му´ a в а дх а ( Uqood — e — mu ´ awadha ) — Substituting, characterized by a substitute.

Uqud Ghair mu´ a in a dkh a ( Uqood Ghair mu ´ awadha ) — Irreplaceable.

Urboun ( Urboun ) — See Arbun.

Urf ( Custom ) . Generally accepted practice. Urf is one of the sources of Islamic law to the extent that it does not contradict the primary sources of Sharia, i.e., the Quran and Sunnah.

Ushr ( Ushr ) — Ten percent (sometimes five percent) of agricultural yield that Muslims are required to pay as part of their religious obligation, as Zakat, mainly to benefit the poor and needy.

Usufruct — The legal right to use and profit from property belonging to another person, without causing damage to the property .

Usul al-Fiqh ( Usul al — Fiqh ) — Theory of Islamic law.

Wa ‘ ad ( Wa ‘ ad ) — A promise, an obligation. A promise such as a purchase and sale obligation in some Islamic financial transactions; a promise to buy or sell specific goods in a specific quantity at a specific time in the future at a specific price.

In a ‘d ( Wa ‘ d ) — See In a ‘ a d.

Wadah — A promise that does not create contractual rights or obligations, may be binding or non-binding.

Wadia ( Wadia ) — Storing goods at a discount from the original price. The Islamic bank acts as the owner and trustee of depositors’ funds and guarantees the return of all or part of the deposit upon the depositor’s request. See also Wadia .

Wadiah ( safekeeping ) — Safekeeping. Literally: safekeeping. In Islamic banking, wadi’ah refers to the safekeeping of property, the acceptance of funds for safekeeping in accordance with Shariah principles, according to which they will be repaid. Islamic banks use the concept of wadi’ah (and amanah) to accept deposits from clients. The bank acts as the owner and trustee of the funds and assumes the responsibility and obligation to safeguard them, while guaranteeing the return of all or part of the deposit upon the depositor’s request. The bank has the right, at its discretion and under certain circumstances, to reward the client in the form of hibah as a thank you for keeping funds with the bank. Al-Wadia and Wadiah are also used. See also amanah.

Waheed — See Wahid .

Wahid ( Wahid ) — The Oneness of God. An Arabic term denoting the doctrine of the Oneness (of God). Islam views God (Allah) as the One (wahid) and Unique (ahad).

Wajib — Obligatory, compulsory, obligatory .

Wali — Guardian .

Wakala ( Wakala ) — See Wakala.

Wakalah ( Agency ) . A contract of agency in which one party appoints another party to perform a specific task on its behalf, usually for a specified fee. Agency services without a specified fee cannot be considered an irrevocable obligation, so the agent has the right to terminate the agency relationship at any time. It may be substitutive or non-substitutive. The bank may charge a commission or provide certain services to its clients; the bank may also pay a fee for performing activities on the bank’s behalf, such as arranging the delivery of goods or investing the bank’s funds. Also known as al -wakalah.

Wakalah​ bil ajr ) — Same as Wakala.

Wakalah Hassa Khassah ) — Special mediation.

Wakalatul Istismar / Ijaratu Alshkas ( Wakalatul Istismar / Ijaratu Alshkas ) — Fund management intermediary services provided in exchange for a fixed fee, regardless of the profit or loss of the relevant portfolio.

Wakil — In a wakala contract , a representative (agent) who acts on behalf of the principal/investor.

Waqaf ( Waqaf ) — See Waqf.

Waqf ( Waqf ) — Literally: detention, confinement, or prohibition. Technically, it is the appropriation or seizure of property with the purpose of preventing the exercise of property rights with respect to such property. A targeted endowment for a charitable trust means holding certain property for limited use for specific charitable purposes and prohibiting any use or disposal of such property in violation of such a stated purpose. This definition is consistent with the perpetuity of waqf, i.e. , it applies to non-perishable property, the benefit from which can be derived without consuming the property itself. Therefore, waqf is widely applied to land and buildings. Waqf property cannot be sold, inherited, or gifted to anyone. There are three main types of waqf in Islamic law: religious waqf, philanthropic waqf, and family waqf.

Wasiyrah — See Wasiyat​

Wasiyat ( Wasiyyat ) — Testament. Inheritance.

Warranties — A statement confirming the truth of certain statements. For example, a borrower may guarantee its corporate status, the legality of the agreement, and the accuracy of the financial statements provided to the bank .

Working capital ( Working Working capital (Capital ) — Technically refers to current assets and current liabilities. The term is commonly used as a synonym for net working capital. The term is also often used to refer to all short-term financing needs (excluding debt service and fixed assets). It represents a company’s investment in current assets used to smoothly conduct business operations. Net working capital, which represents the excess of current assets over current liabilities, is also related to working capital. Both reflect the resources in circulation needed to meet operating requirements and pay off liabilities as they fall due.

Write-off ( Write off ) — If an investment, such as a loan, becomes seriously delinquent and is deemed uncollectible, the lender may decide to write off the unpaid amount as a loss.

Zahiri is a school of thought in Islamic law within the Sunni school of Islam, along with more widely known schools such as Hanafi, Hanbili, Maliki, and Shafi’i. A well-known school within the Shia school of Islam is the Jafri school .

Zakah — See Sunset .

Zakat — Literally: blessing, purification, increase, or cultivation of good deeds. A mandatory contribution or tax prescribed by Islam for all Muslims with an income above the established minimum, at a rate established by Sharia. Zakat is the third pillar of Islam. According to Islamic belief, Zakat purifies wealth and souls. The purpose is to take a portion of the wealth of wealthy individuals and pay it to the Islamic state, which distributes it among the poor and needy. It is collected in the form of cash, livestock, agricultural produce, valuable assets, capital invested in an industry or enterprise, or other forms that can be defined as wealth. The distribution of the Zakat fund is determined in the Quran: “ The charity is for the needy and the poor, and for those who collect it and distribute it, and for those whose hearts they wish to win, and for the ransom of slaves, and for those in debt, and for spending in the way of Allah, and for the wayfarer. This is the ordinance of Allah ” (9:60). Also known as Zaka.

Zakat al-Fitr ( Zakat Al — Fitr ) — Payable by every Muslim who is able to pay at the end of Ramadan (the month of fasting). Also called Zakat al-Nafs (poll tax).

Zakat al Maal al Maal (maal ) is an annual levy on Muslim income (above a certain level). The amount paid depends on the type of property owned. This tax is intended to protect the interests of the poor and needy.

Zulm ( Zulm ) — Injustice, oppression, exploitation, infringement or usurpation of the rights of others; failure to provide fair compensation in an exchange as a result of illegal action or coercion.

Part 1. General principles.

Article 225.

            The economic development of the Caliphate is based on state planning with the participation of private capital.

            State corporations, in particular a state oil corporation, may be formed to develop important sectors of the economy.

            State-owned concerns occupy commanding heights in the economy, coordinating industry development with the participation of private capital.

            The socio-economic organization is based on the following principles:

• coexistence of the public sector, the private sector, the cooperative and the public sector, based on appropriate forms of ownership of the means of production;
• freedom of entrepreneurial organization and initiative within the framework of a mixed economy;
• socialization of the means of production and land, as well as natural resources in accordance with public interests;
• democratic planning of socio-economic development;
• protection of cooperative and public ownership of the means of production;
• participation of organizations representing workers and organizations representing economically active persons in determining the main socio-economic measures.

Comment:

«Civilization and its well-being, as well as the prosperity of business, depend on the productivity and effort of people, applied in various industries to earn their own income and profit. When people stop conducting business for the purpose of earning money and cease all activity aimed at generating profit, the rate of growth of civilization’s business slows down, and everything declines.»

[Ibn Khaldun (744-820 AH 1332-1406 AD)

Islam never developed a distinct theory of political or moral economics, in the same way that economic science and analysis developed in the Western tradition. Only a few thinkers in Islam can be identified who ever discussed economic issues as a distinct discipline. The Western tradition of written economic works (from Adam Smith to Malthus, Ricardo, Mill, and to the present) simply has no equivalent in Islam. Islamic economics is embodied in the broader concept of the law of transactions and the scholasticism of Islamic moral thinkers and theologians. Islam does not possess any of the core concepts of economic thought—for example, the concept of the market, the nature of value, productivity, means of provision, profitability, or growth—either narrowly or broadly. Sharia does not allow much scope for economics. When questions of community prosperity or human well-being were discussed, the tradition of the ruler’s instructive writings on the value of a sound currency, fairness in transactions, and the risks of confiscatory taxation was utilized. Otherwise, it was assumed that people were ordained to conduct business and carry out commercial transactions in accordance with the requirements of Sharia and its norms regarding permitted and lawful actions in economic practices.

Islamic economics

Unlike Western economics, it is very difficult to understand and study Islamic economics and the structure of Islamic finance in isolation. Islamic economics fundamentally differs from man-made laws and systems when defining economic problems.

While Islam is one of the world’s major religions, more importantly, it is a comprehensive way of life in which all principles are interconnected, and precepts regarding one aspect, such as family, can logically be applied to another, such as jurisprudence. To begin with, Islamic economics is based on a socioeconomic paradigm. This approach views Islam as a system of ethical principles. One possible starting point for understanding Islam and Islamic economics is what is considered the central theme—verse 5:120 of the Quran, which states that all authority on earth and heaven belongs to God (Allah), and therefore we are His trustees, to whom said property belongs, whether individually, collectively, or otherwise. Therefore, any economic and financial activity that influences or regulates our lives must be based on this key principle.

There are many other verses in the Quran that regulate or lay down economic and financial principles that apply to people as individuals, societies, or nations. These principles of Islamic law are known as Sharia (the foundation of Islamic law, based on Divine guidance contained in the Quran and Sunnah).

The concept of Ibn Khaldun (15th century) contains a description of a complex dynamic model for the Islamic socio-economic system:

“The power of the sovereign (al-mulk) can only be exercised on the basis of the principles of Sharia ;

Sharia can only be applied by the sovereign ( al-mulk );

The source of the sovereign’s power is the people ( a l-rijal );

The people can be protected only by welfare ( a l-mal );

Wealth can only be obtained through development ( a l-‘imaran );

Development can only be achieved through justice ( a l-‘ a dl );

Justice is the criterion ( al -mizan ) through which God evaluates humanity; the sovereign is responsible for the implementation of justice.”

The cost of money

Aristotle (384-322 BC) on Usuri

But Aristotle understood that money is inefficient; it doesn’t create more money the way cows create cows. He knew that «Money exists not by nature, but by law»:

«The most undesirable method (of acquiring wealth) is usuri, which involves obtaining money from money itself, not from the physical object of wealth. Money was created as a medium of exchange, not as a means of enrichment through interest. And this term ‘interest’ (tokos), which means obtaining money from money, also applies to the reproduction of money, since the offspring resembles the parent. Thus, all forms of wealth generation are of unnatural origin.»

And he truly disliked moneylenders: «…those who engage in dishonest activities, pimps, and those who lend small sums of money at high interest rates. For all this, they receive more than they deserve, and from illegal sources. The only common trait they have is a selfish love of profit…»

The fundamental concept of Islamic economics and finance is that money has no intrinsic value. Based on faith, a Muslim has no right to lend money or receive money from anyone at interest (commonly known as riba), which is prohibited. Making money out of money is strictly prohibited; wealth can only be generated through legitimate trade or investment in assets. Money must be used for production. The foundation of Islamic finance is the concept of trading based on the principle of profit and risk (loss) sharing. Profit is divided between the person providing the capital and the person providing business management services.

A key characteristic of Islamic economics is that economic and financial activity is linked to the activities of the real economy, encouraging equity-based structures backed by physical assets rather than debt-based ones, while in traditional practice, transactions do not necessarily need to be backed by real estate. Traditional investment practices, often fueled by an uncontrolled greed for excess profits, are the primary cause of the current global financial crisis, which has plunged millions into poverty. Pope Benedict XVI spoke of the illusory value of paper money in 2008, and in 2009, the Vatican also criticized the free market system.

People can’t imagine life in the modern world without money, but one can find quite interesting assessments of the essence of money, such as this one: «… despite its active use, money remains simply a symbol without intrinsic value or connection to anything concrete.» Money has earned recognition as ordinary symbols, and there is something magical about how it was created. No other commodity can perform the same functions. Money guarantees growth from use; growth is achieved through debt. The more we lend, the more we have. The greater the debt, the greater the profit.

Islamic economic system

On the one hand, the Islamic economic system aims to guarantee individual freedom, freedom of choice, private property and entrepreneurship, the pursuit of profit, and opportunities for unlimited effort and reward. On the other hand, it aims to implement effective moral filters at various levels of life, activity, and established institutions, and provides a framework for ensuring economic development and social justice in society.

Some claim that early Islamic theory and practice shaped a «holistic» economic system with a «model of a new social order that provides for more equitable treatment of all participants.» Michael Bonner, for example, has written that an «economy of poverty» prevailed in Islam until the 13th and 14th centuries. According to this system and God’s guidance, the flow of money and goods was «purified» by redistributing it from those with excess wealth to those in need, encouraging zakat (charity) and prohibiting riba (interest).

Islam does not prescribe a specific economic system, but it does define key elements and principles that form the foundation of a system or economy. Islam primarily provides normative principles for economics and finance. However, it is not without positive economic statements or hypotheses. Some sectors of the economy are, in fact, stable and cannot be distinguished within the framework of Islamic or any other concept.

Operational and functional characteristics of the Islamic economic system

1. The Islamic scheme of social change and restoration of human society is unique because it is based on a methodology that is different from traditional economic and political ideologies:

Thus, key elements of social change include:

a . Social changes must be motivated, planned and achieved through individual or collective efforts;

b . The people are active participants in change, fulfilling the task of viceroyalty entrusted to them and realizing the freedom of will granted to them… All human, physical and institutional factors of production, consumption and distribution of goods and services are subject to their conscious personal and social choice.

c . To change needs, it is necessary to change not only the environment, but also the hearts and souls of men and women — their attitudes, motivations and commitments, as well as their focus on mobilizing all personal efforts to achieve their goals.

d . Life is a network of relationships, so change must be gradual, balanced, and evolutionary. Innovation must occur alongside integration.

2. Personal gain is a natural motivational mechanism throughout human life. But personal gain must be linked to a general concept of goodness and justice.

3. Private property and private enterprise are guaranteed as inalienable rights and a natural model of economic activity.

But the very concept and functions of property are being transformed based on moral and legal filters, and at the same time people are gradually being instilled with the understanding that all forms of property – physical and human, machine power and intellectual strength – are trust ( amana — a manah ), and property rights themselves are subject to moral restrictions and are used as a means of achieving ethical goals – Maqaasid al-Sharia ( Maqaasid al — Shariah ) (the goal of the Islamic path).

4. Economic efforts are realized through processes of cooperation and competition.
The market mechanism is a natural consequence of private property, free enterprise, and the profit motive.

Sacred precepts and historical experience confirm that the fundamental elements of the Islamic economic system are trade, the development of production and the exchange of goods and services, the pursuit of true profit, the protection of market mechanisms, and a legal basis for the execution of contracts.

All prominent Muslim thinkers have emphasized the importance of individual contribution, innovation, creativity, division of labor, technology, and skill development, along with cooperation, justice, charity, and solidarity.

5. The market mechanism is the foundation of the Islamic economic model. However, Islam requires the involvement of non-market institutions to prevent the market from turning into a capitalist jungle, and to prevent self-interest and profit motives from creating social imbalances and violating the norms of justice and fair play.

• Moral filter at the level of personal motivation;
• The family as a social and economic unit that guarantees the functioning of the system of social security and solidarity;
• The government is obliged to provide a regulatory framework;
• The network of voluntary organizations (waqf system), the third sector; charity is transformed by its establishment as part of statutory obligations;
• Addressing the problem of waste, overconsumption and exploitation of non-renewable natural resources, as well as the environmental aspects of moral action (Amana and haq ) ;
• Accordingly, fair distribution of wealth and social security became structural elements of the Islamic economic system, and not just voluntary additions.
• The prohibition of certain sources of profit is a distinctive feature of the Islamic economic system. The most important prohibition is riba (usuri/interest). Other prohibitions include gambling, speculation, fraud, exploitation, and extortion.
• Therefore, Islam supports an economic system based on equality, risk sharing and participation in commercial activities, as opposed to a system based on borrowing.

Islamic Economic Strategy

a . Filter: moral values plus prices determined by the market: “A moral filter that will restrain and ennoble the pursuit of personal gain.”

b . Motivation: Personal gain plus responsibility to God in the pursuit of personal gain: “Responsibility to God serves as a motivation for adhering to Islamic values and working for social welfare.”

c . The role of the state: “The state has an obligatory role to play in enforcing the moral code of conduct and ensuring the proper functioning of the relevant institutions.”

d . Socioeconomic Restructuring: The primary goal of Islam is socioeconomic justice. This implies that the resources placed at the disposal of humanity should be used to achieve the universally recognized goals of meeting needs, creating jobs, fair distribution, and economic stability. This can be achieved through the efficient and cost-effective use of resources.

e . An integrated approach to financing : To achieve profitability, it is essential to pay special attention to the end use of funds. Interest-based financial intermediation prioritizes collateral and cash flow, while the end use of funds is of secondary importance. The principle of equity requires financing the optimal number of firms by providing funds for the production process, capital equipment, services, and raw materials. In a system based on profit and loss sharing, even a poor company can obtain a loan if it presents a worthwhile project and demonstrates its ability to effectively manage it.

Mechanisms/Institutions and Instruments of the Islamic Economic System

Islamic economic and financial activity is formed by the following three principles:

• Positive measures ( zakah )
• Voluntary measures (sadaqah or charity; awqaf or God-fearing principles )
• Prohibited actions ( riba’ )

Islamic institutions and instruments:

i . exclusion of riba;

ii . Islamic financial system;

iii . Zak;

iv . Takaful ;

v . Avkaf system.

Money and monetary policy

The topic of money was studied from the earliest times by such Muslim thinkers as al-Ghazali, Ibn Taymiyyah, Ibn al-Qayyim, Ibn Khaldun and al-Maqrizi.

Al-Ghazali distinguished two functions of money: a medium of exchange and a measure of value. He argues that money is a necessary medium of exchange, which helps overcome the problems of a barter economy. Al-Ghazali also argues that money is a unit of value and a measuring instrument for the development of exchange transactions and commercial interactions. Therefore, al-Ghazali insists that money should not be viewed as a commodity, an object of transaction, or a source of profit (interest), nor should it be hoarded or withdrawn from commercial circulation.

Ibn Taymiyyah examines the two functions of money, namely, as a standard of measurement and a medium of exchange, and condemns the use of money. He also addresses the problem of the depreciation of money and its impact on the overall economic situation and the well-being of the population: «Regulatory bodies should issue only as much money (except gold and silver) as is necessary to service the volume of people’s transactions without creating an unfair distribution.» Ibn Taymiyyah described the principle of «worse money drives out the better,» known in political economy textbooks as Gresham’s Law.

Ibn al-Qayyim acknowledged the two functions of money described by earlier scholars, but he formulated them more precisely. He wrote that «money is issued not for its value, but for its use in transactions (i.e., it is the sole medium of exchange).» Therefore, money must be stable for the valuation of goods and their exchange.

According to Ibn Khaldun, God created gold and silver to serve as the standard of measurement for all goods. Unlike mercantilists, Ibn Khaldun demonstrated that gold and silver are not wealth in themselves; they have exchange value, like other metals and precious stones. Ibn Khaldun’s arguments are based on the theory of value, which he advanced long before Karl Marx. He argued that human labor is the source of wealth, increasing or decreasing the quantity of precious metals. Countries that produce gold and silver exchange it for the money they need to purchase the goods they need.

Taqi al-Din Ahmad al-Maqrizi (1364-1444) is known for his work on money and prices. He believed that only gold and silver constitute money that can be used as a standard of value, in accordance with the nature of things and the principles of Sharia. Based on the relationship between the immeasurable value of money and rising prices, al-Maqrizi proposed that the increase in the supply of money should correspond to the volume of transactions.

Division of labor

The importance of the role of labor in the creation of wealth was emphasized by al-Ghazali (1058-1111), Ibn Taymiyyah (1263-1328) and Ibn Khaldun (1332-1406).

Seven centuries before Adam Smith, al-Ghazali noted the importance of the division of labor, conditioned by the diversity of human activity. Remarkably, Ghazali used the example of a needle factory to demonstrate his position, while Adam Smith used the example of a pin factory.

Ibn al-Qayyim (1292-1350) noted the need to develop economic cooperation between various members of society. Cooperation between people allows them to achieve results that are impossible to achieve individually. The division of labor stimulates the development and diversity of economic activity.

It is Ibn Khaldun who deserves credit for his scientific analysis of the concept of labor, value, and the division of labor – five centuries before David Ricardo and Karl Marx.

Utility: The Basis of Islamic Economics

The use of utility as a scientific tool of analysis is a scientific product of the most prominent thinkers al-Ghazali ( 550 г.), Izzaddin ibn Abdelsalam (or al-Izz) ( 660 г.), Ibn Taimiyyah ( 728 г.) and al-Shatibi ( 790 г.).

Al-Izz: «The most worldly goods are recognized through the [human] mind.» The approaches of al-Izz and Ibn Taimiyyah are most closely related to microeconomic theory, since they are based on the behavioral concept of utility, which is the basis of the macro concept.

Al-Ghazali and al-Shatibi focused primarily on the macro theory of utility. Therefore, it seems possible to examine the fundamental characteristics of goods through the lens of macro/micro classification.

These positions can be summarized as follows: The purpose of Sharia is to create utility and overcome hardship. This postulate represents the general consensus among Muslim scholars, with the addition that there is no contradiction between worldly goods and the goods of the afterlife, except in cases of misunderstanding of either of these goods. This fundamental legal principle confirms that economic and ethical values are strictly interconnected for the purpose of creating a better economic order.

The role of the market and its limitations

Many thinkers recognize private property, freedom of economic activity, and the free movement of market forces, but only under the condition that Islamic values are upheld. Therefore, they support government intervention in cases of market dysfunction to protect public interests.

Abu Yusuf (731-798) acknowledges the determination of prices based on the fair play of supply and demand, but at the same time supports the need for measures aimed at combating monopolies, corruption and fraud.

Al-Mawardi (11th century) also advocated state intervention in the economy through the muhtasib, one of whose functions is to regulate the market . It is necessary to guarantee the reliability of weights and measures, eliminate fraud, and ensure that commercial transactions comply with Islamic law.

Nizam al-Mulk al-Tusi (11th century) supported state control of the economy and emphasized the need to ensure national stability. He believed that such stability could only be achieved by protecting the population’s basic needs. He supported the need to organize assistance for the poor and needy amid the struggle to combat food shortages and proposed ensuring constant availability in markets, especially in the event of a disaster or drought.

Al-Ghazali implicitly acknowledged the idea of determining prices based on market forces (in his analysis of commercial activity and the related functions of transportation and warehousing) to ensure the near-universal availability of products. However, he also called for al-hisba ( supervision and control ), outlining the characteristics of the muhtasib (supervisor), the activities subject to supervision, and the basic rules of supervision. He also identified several other areas subject to supervision, such as concealing defects in goods or services and making false statements for profit.

Ibn Taymiyyah also explained in detail the role of the market, where prices are determined by the laws of supply and demand. Having defined the conditions of supply and demand, Ibn Taymiyyah suggests that the state should not interfere in the price-setting process, except in cases of injustice, monopoly, or voluntary withdrawal of goods from circulation for the purpose of illicit profit. For Ibn Taymiyyah, it is clear that in such cases, state intervention becomes inevitable or, at a minimum, mitigates market problems that affect the conduct of market transactions and their transparency.

Islamic guidelines (Sharia)

The moral basis and purpose of economic and commercial regulations in the traditional Islamic conception were complemented by a vast legacy of detailed regulations concerning the fundamentals of economic rights and obligations, as well as the nature and scope of commercial contracts and transactions.

There are several key principles that directly regulate economic activity and define the central structure of the Islamic economy, as well as govern commercial and financial transactions.

I ) The first principle is RIBA . Literally, in Arabic, Al Riba means increase or addition. In Islam, it is interpreted as usuri, or a loan with a condition that the borrower repays the lender the amount borrowed. Such acts of riba are prohibited in Islam . The Quran contains many verses that define the prohibition of riba as haram .

There are two hidden meanings to this prohibition of riba/interest. (1) Without interest, there are no «debt» contracts, and (2) the absence of interest emphasizes the value of the «asset» rather than the value of «money,» since money acquires value through interest.

Therefore, one of the most frequently asked questions regarding this concept is how can one make money when interest is prohibited?

Islam recognizes the human need to earn money. Therefore, it permits people to earn money in the form of profit. Simply put, a «lender» has the right to provide funds to a «borrower,» but the lender must assume the risks of the activity for which the funding is provided. Before providing the loan, the lender has the right to determine its share of the profits. If the business fails, the investor loses their investment. This means that Islam supports an economic system based on equality, risk-sharing, and participation in commercial activity, as opposed to a system based on borrowing. ( Source : knowislamicbanking.com )

II ) The next important principle is the principle of gharar . The Arabic word gharar has several meanings, including uncertainty, danger, probability, or risk. Unlike riba, gharar does not have a clear and comprehensive definition. While the prohibition of riba is absolute, some degree of gharar or uncertainty is permissible within the Islamic concept. Only situations of excessive gharar should be avoided. This applies to Maysir or Qimar , which refer to gambling or any games involving luck.

For example, a transaction involving exchange or excessive uncertainty – or a zero-sum transaction – in which one party may lose everything to the other party – is prohibited by Shariah.

III ) The third key principle is the principle of ZAKAT ( Zakah ) . Zakat is one of the five pillars of Islam. It is a form of ‘religious tax’ which obliges every Muslim to give a portion of their income to charity if such income exceeds a set minimum. During the Islamic period, Zakat payments were accepted by the state, and the funds were used to alleviate all types of human suffering, including the ransoming of slaves from their owners. The purpose of Zakat is to redistribute part of the income of wealthy people to the poor and needy. Depending on the type of income/wealth (cash, livestock, agricultural production, minerals, capital invested in industry and other types of business), the amount of Zakat varies from 2.5% to 10%. (9:60)

The Islamic concept of economics is based on the following key principles:

• viceroys (trustees) in relation to everything that Allah has transmitted
• prohibition of riba – charging interest
• prohibition of gharar — gambling and taking unnecessary risks
• payment of Zakat – a moral tax

and some other principles related to Sharia —

• ‘ Al-adl wa’l-ihsan ( Al -‘ adl wa ‘ l — ihsan ) — ensuring balance and sacrifice of the socio-economic structure through the appropriate process of jurisprudence
• Ikhtiyar ( Ikhtiyar ) – the realization of ‘free will’ within specific social contexts, taking into account the changing needs of the time
• Fard ( Fard ) — the question of responsibility for property transferred to a person acting as an attorney, which is to be used in the interests of society
• Rububiyyah is the fundamental law of the universe, the beneficial use of resources, mutual support and redistribution of resources.

Simply put, Islamic economics strives to create a ‘moral/ethical’ economy for the benefit of all. It is a market economy, but this ‘free enterprise’ is regulated.

(1) restrictions — what is prohibited is haram, and

(2) obligations – what Muslims are obliged to observe according to the various principles of Islam/Sharia law, without unduly restricting personal freedom and creativity or creating an imbalance in the macroeconomic and environmental environment.

Thus, the Islamic concept of economics and economic growth and development stems from the concept of tazkiyah , which addresses the economic aspect of human life «in all its manifestations»; tazkiyah «is associated with growth toward perfection through the purification of attitudes and behavior. The result of tazkiyah is falah , prosperity in this world and the next.»

People are the Lord’s representatives on earth.

The principle of Islam is that everything belongs to God, and wealth is entrusted to people in trust. Muslims are also obligated to care for the needy. For Muslims, the Quran also contains principles of life related to socioeconomic justice. It affirms the concept of trusteeship, which applies to people who are God’s vicegerents on earth, as well as the principles of caring for others, moderate consumption, productive activity as a means of serving God, charitable giving, supporting one’s family, producing more goods than one person needs, wealth not being an end in itself, and so on.

Prohibition of interest

«The most undesirable method (of acquiring wealth) is usuri, which involves obtaining money from money itself, rather than from the physical object of wealth. Money was created as a medium of exchange, not as a means of enrichment through interest. And this term ‘interest’ (tokos), which means obtaining money from money, also applies to the reproduction of money, since the offspring resembles the parent. Thus, all forms of wealth generation are of unnatural origin.» (Aristotle 84-322 BCE)

The Quran has also long prohibited the charging and payment of interest. This prohibition is based on arguments of social justice, equality, and property rights. Islam encourages earning but prohibits the charging of interest, as profit, determined after the fact, symbolizes successful entrepreneurship and the creation of additional wealth, while interest, determined before the event, represents a cost that must be repaid regardless of the outcome of the commercial transaction and cannot create additional wealth in the event of a loss. The requirements of social justice imply that borrowers and lenders share profits and losses, and that the process of capital accumulation and distribution in the economy must be fair and reflect true productivity.

The fundamental problem with interest is that it relieves the lender of any moral responsibility for the use of the loaned money. Repayment of the loan is guaranteed in all cases, regardless of changes in the borrower’s circumstances. Owning money, in and of itself, does not generate profit. This only occurs when the money is invested for some purpose that will generate profit. By relieving the lender of responsibility for the use of the loaned money, the problem of moral hazard arises. The lender has no interest in the use of the loaned money until repayment is guaranteed, even though repayment may involve losses for the borrower and may not be tied to the actual circumstances of default. The actual profitability of borrowed money is often determined by the financial system.

There is a general consensus among Islamic scholars that riba applies not only to usuri but also to the charging of interest, which is a common practice. Therefore, traditional mortgages are often unaffordable for many Muslims, as paying interest is contrary to their ethical and religious principles. Thus, Islamic finance has provided many people with the opportunity to purchase housing in accordance with their beliefs, a possibility previously unavailable.

Gharar (risk or uncertainty) and Maysir (gambling)

Gharar refers to a risky or dangerous sale where the details of the transaction are unknown or uncertain. This may be because the transaction is pure speculation, and therefore a form of gambling, with the outcome and future profit unknown and uncertain.

Gharar is prohibited by the Quran, which explicitly prohibits trading that involves unnecessary risks due to uncertainty.

Islamic finance adheres to strict rules that prohibit transactions characterized by a high degree of uncertainty or transactions that may result in unfair treatment of one party or fraud. In finance, gharar is observed in negative transactions such as forwards, futures, and options, short selling, and speculation. In Islamic finance, most forward contracts are prohibited and considered void due to the uncertainty associated with the future delivery of the underlying asset. Gharar is also found in insurance.

Sunset, Zaka

The word » zaka » comes from the verb «to purify.» The literal meaning of zakat is blessing, purification, increase, or cultivation of good deeds. Giving zakat signifies the purification of wealth and the receipt of God’s blessing for its increase through lawful means. People’s wealth is purified by taking a portion of it for the benefit of those in need (similar to pruning trees, which is necessary for their growth).

One of the fundamental principles of Islam is that everything on earth belongs to God and is entrusted to humanity as a trust. Zakat is a certain portion of wealth that all wealthy Muslims contribute to the welfare of the poor and needy, including widows and orphans, regardless of skin color, ethnicity, or religion, or as a donation to other causes aligned with the service of God. The Quran equates ignoring the needs of the poor and orphans, for whom Zakat is provided, with renunciation of religion.

The Quran (9:60) defines eight categories of recipients of Zakat.

» The donations are intended for the poor and needy,

for those who collect and distribute them

for those whose hearts they want to win

for the redemption of slaves, for debtors ;

for expenses in the way of Allah and for the wayfarers : … .»

The Arabic word «zakat» is similar to the Hebrew word «tzedakah , » a charitable obligation established in ancient Israel and continuing to the present day in Judaism. During the Islamic period, the state collected the zakat, which was obligated not only to collect it but also to ensure its equitable distribution.

Contracts between the parties

Adherence to Islamic principles is the foundation of all contracts between parties performing specific actions in exchange for legitimate compensation and a vital pillar of the Islamic financial and economic system. Most financial products, services, and instruments are based on such contracts. Therefore, developing financial products and offering Sharia-compliant financial solutions requires a clear understanding of Sharia-compliant contracts, their various forms, and variations.

Musharakah (musharaka), mudarabah (mudaraba), murabaha (murabaha) contracts and Ijarah forms the basis of a variety of Shariah-compliant alternatives that can replace traditional interest-based financial solutions. The fundamental premise of Islamic finance is the elimination of interest (riba) and uncertainty (gharar) in all commercial and financial transactions.

Below is a brief description of the main types of Islamic contracts in use today.

Mudarabah and Musharakah are partnership contracts. Islamic scholars consider mudarabah and Musharakah are ideal forms of permissible contracts that comply with the norms and objectives of Shariah. This is because these contracts pool resources and knowledge and distribute the inherent risk of a project across multiple parties.

Murabaha —a term often used to refer to «cost-plus financing» and its simplest form—contracts the sale of goods with deferred payment. Delivery of the goods occurs immediately, and the price of the goods includes a profit margin agreed upon by the parties. Under this contract, the lender first purchases the goods and then sells them to the actual buyer at a pre-agreed markup, which constitutes the lender’s profit. The lender is obligated to inform the buyer of the market value (true value) of the purchased goods. The amount of profit earned (the markup set above the true value) in this transaction is not compensation for the use of the lender’s funds, as the lender cannot receive the agreed-upon profit margin unless it provides the necessary services, such as delivery of the goods purchased with the money provided.

Ijarah is a term used in Islamic law to describe a lease agreement whereby a lender acquires an asset needed by a third party and then leases it to that party for an agreed-upon rent and period. Rent cannot be equated with interest, due to the way rent is calculated and the fact that the leased asset remains the property of the lender during the lease period. An ijara contract may provide for the option to transfer the leased asset to the party after the lease period. However, if the party wishes to purchase the leased asset, it must enter into a separate agreement for this purpose prior to entering into the ijara contract; under Sharia law, such an agreement is not binding on the parties.

WAQF – Institute for Social and Economic Welfare

Waqf (plural: awqaf) refers to the transfer of money, property, or other items to charitable purposes. It is a fund established by Muslims, or the redistribution of profits for religious or charitable purposes in the form of a trust, meaning that the proceeds cannot be used for other purposes.

In a pre-commercial society, a waqf would have taken the form of arable land, farms, or oases. In theory, a waqf is absolutely immutable; once it is ratified, the contract cannot be changed, and the property cannot be sold or alienated. Income from a waqf can fund temples, religious and other institutions, or charities. A waqf continues even after the death of the sponsor—as long as the waqf continues to benefit people.

The basic rules governing waqf trusts are defined by Sharia, but their interpretation and application may differ in different Muslim societies.

Following the establishment of the Islamic law of waqf and the development of its teachings in the 10th century, the number of hospitals in Islamic lands increased exponentially. By the 11th century, every Islamic city had at least several hospitals. Waqf trusts financed various hospital expenses, including the salaries of physicians, ophthalmologists, surgeons, apothecaries, pharmacists, support staff, and other personnel; the purchase of food and medicine; hospital equipment (e.g., beds, mattresses, bowls, and aromatic substances); and building repairs. Waqf trusts also financed medical schools; in particular, their revenues were used to cover the costs of maintaining these schools and the salaries of teachers and students.

Waqf in Islamic law, developed in the medieval Islamic world of the 7th to 9th centuries, is very similar to English trust law. Every waqf must have a waqif ( founder ), mutawillis ( trustee ) , qadi ( judge ) , and beneficiaries. In both the waqf and trust forms , «the property is preserved and the usufruct received is distributed for the benefit of specific individuals or for general charitable purposes; the capital becomes inalienable; a life tenure of the property may be established for subsequent beneficiaries» «without regard to the law of succession or the rights of heirs; and the continuity of such right is secured by the appointment of a subsequent trustee or mutawillis.» [Wikipedia]

The only significant difference between an Islamic waqf and an English trust is the «express or implied reversion of the waqf for charitable purposes when its specific object ceases to exist», although such a distinction applies only to waqf ali ( waqf ahli ) (Islamic family trust), not waqf khairi ( waqf khairi ) (originally dedicated to charitable purposes). Another difference was that the English trust conveyed to the trustee «a real interest based on common law» in the trust property, although «the trustee still remained responsible for the management of such property for the benefit of the beneficiaries.» In this sense, «the role of the English trustee was not substantially different from that of the mutawalli .»

Article 226.

            The Caliphate in the economic and social spheres is primarily obliged to:

• to promote the growth of social and economic well-being and quality of life of people, especially the least advantaged, within the framework of a sustainable development strategy;
• to promote social justice, ensure equality of opportunity and make the necessary adjustments to overcome inequalities in the distribution of national wealth and income, in particular by implementing specific tax policies;
• ensure the full utilization of productive forces, paying attention to the efficiency of the public sector;
• to direct economic and social development towards balanced growth of all sectors and regions and the gradual erasure of economic and social differences between the city and the countryside;
• to ensure the effective functioning of the market in order to guarantee healthy competition between enterprises, to prevent various forms of creation of monopolies and to prevent abuse of a dominant position and any actions directed against the general interests;
• to develop economic relations with all peoples, while always protecting national independence, the interests of Muslims and the country’s economy;
• protect the interests of the consumer;
• to create the legal and technical structures necessary for democratic planning of socio-economic development;
• ensure a scientific and technological policy that is favorable for the country’s development;
• to develop a national energy policy aimed at preserving natural resources and ecological balance, developing international cooperation in this area;
• to develop a national water use policy for the rational management of water resources and planning in this area.

Comment:

The Islamic economic model takes a scientific approach and is based on economic theory, with the exception of areas prohibited in Islam (e.g. interest rates, gambling, violation of property rights, etc.). However, it has features that are not found in standard economic theory. In particular, the Islamic economic model is based on principles that recognize: the supremacy of Allah; the view that man is not only a material object but also, at heart, a spiritual creation; everything comes from Allah and returns to Allah [In the Islamic economic model, the concept of “mother nature” does not exist. It is replaced by the deterministic and even omnipresent presence of Allah SWT , a presence that a Muslim is subconsciously aware of and acts accordingly. By virtue of its divine nature, the Islamic economic model is immune to the shortcomings of traditional models and offers a more advanced concept of economic development and social justice than any other traditional models]; that man has been gifted by Allah, unlike other creatures, with the power of intellect; and, accordingly, that man is responsible for his actions; and that worship is inextricably linked with economic life. The precepts of faith that underlie the Islamic economic model can be presented as follows:

1. Belief that there is no Lord but Allah and that Muhammad is His Messenger, which means complete submission to Allah and His Messenger, while maintaining faith in previous Messengers, accepting established values and procedures, and observing all the commands and teachings of Allah without doubt or question.

2. The purpose of creation is to worship Allah, as stated in Surah 51, verse 56: I created the jinn and mankind only that they might worship Me. I do not desire any provision from them. Indeed, I have no need of any of the worlds, nor do I need them to feed Me. Allah alone provides sustenance. He is the Almighty, the Omnipotent, and has power over all things.

3. To achieve the purpose of worship, Allah has created resources so that people can worship Him, which is clearly stated in many verses:

45:12: It is Allah who has subjected the sea to you, so that ships may navigate it by His command, and so that you may seek Allah’s bounty and be grateful to Allah for His favor. He has also subjected to you all the heavens and all that is on earth. Indeed, in all the above-mentioned favors are signs that clearly prove the omnipotence of Allah.

35:3: O mankind! Remember the favor of Allah upon you! Is there any Creator other than Allah, who gives you provision from the heavens and the earth? There is no Lord but He. Why do you deviate from the truth?

41:9: Say: Do you not believe in Allah, Who created the earth in two days? And do you compare others with Him? He is the Lord of all the worlds. He has created firmly established mountains on the earth, so that it will not shake. He has blessed the earth and placed upon it much goodness and benefit, and, in His wisdom, has distributed within it sustenance for its inhabitants. He created all this in four days.

15:21: We have full treasures of every good thing, but We, in Our wisdom, send it down to people at a time and in a certain measure.

4. Those who acknowledge Allah must, in general, acknowledge Islamic law, without being selective about specific principles. Allah states in 6:38: «We have not omitted anything from this Book.» In 45:17: «We have guided you to the path of Shari’ah. So follow it and do not follow the desires of those who know nothing about it.»

5. The belief that Allah’s commands are the best is clearly stated in 5:3: This day I have created for you a religion to complement My favor upon you, and I have chosen Islam as your religion; and whoever disobeys Allah will fail in this life or the Hereafter, as stated in 14:28: Have you not seen those who disbelieved in Allah and brought their followers to the abode of destruction?

Allah did not conceal the consequences of disobedience. He clearly warned Adam (20:117) that it would lead to hunger, thirst, and suffering. This situation is typical for millions of people around the world who suffer from poverty and hunger.

The Quran and Sunnah fully encompass all aspects of economic, political (Shura, i.e., consultation), and social legislation and establish the principles for organizing economic, political, and social life. Allah called upon humanity to observe all Islamic laws, and not to observe some laws and ignore others.

After gaining independence, many Muslim countries chose the Marxist-Leninist model and missed out on decades of economic development. Despite long periods of economic planning, many Muslim countries continue to suffer from high unemployment (above 20 percent), which hinders their economic growth. Extreme poverty is increasingly widespread, particularly in African and some Asian Muslim countries. Only immigration to more developed countries reduces unemployment and poverty. Despite the fact that the Muslim world holds 80 percent of the world’s oil reserves and 60 percent of its gas reserves, they suffer from inequality and economic isolation. While some countries generate significant domestic revenues, primarily from oil and gas exports, others suffer from balance of payments deficits and unsustainable external debt.

In the post-war period, the technological gap between Muslim and industrialized countries increased significantly. While industrialized countries made significant technological advances in all fields, inventing new technologies, particularly in the internet, computer science, medicine, satellite television, space, shipbuilding, automobile manufacturing, photocopying, medical equipment, and pharmaceuticals, such progress was absent in the Muslim world. The trade pattern, driven by this growing technological gap, demonstrates a growing trade deficit and a complete dependence, through borrowing, on industrialized countries, resulting from the desire to overcome food shortages and secure the purchase of industrial goods. In particular, industrialized countries meet their own food needs and seek to import only the raw materials they lack. Muslim countries lack food products, but seek to import industrial goods. [In 2008, food riots occurred in many Muslim countries.] Hunger and acute food shortages are becoming increasingly acute in many Muslim countries. Raw material exports do not fully cover the cost of imported food and manufactured goods. This gap is covered by constant borrowing, which, as a result, leads to ever-increasing foreign debt and dependence.

Experience from previous years shows that the costs of traditional development models have been high, and the achievements have been limited. Prospects for achieving balanced and independent economic growth and overcoming unemployment and poverty are bleak, even in middle-income countries. The Islamic economic model represents a promising alternative and offers significantly better prospects for sustainable, balanced economic growth, overcoming unemployment and poverty, and reducing dependence on external financing. The promise of achieving successful results was explicitly given by Allah and His Prophet.

Zakat, a mandatory element of redistribution in the Islamic economic model

Zakat is the most distinctive feature of the Islamic economic model, making it far superior to other economic systems. Zakat is a prerequisite for the elimination of interest. In the Quran and Sunnah, Islamic finance has always been viewed as the financial activity of an Islamic economy, within which social equality is supported by mandatory zakat. In the Quran, verses mentioning interest (riba) are always preceded and followed by verses affirming zakat. Thus, when social equality is ensured by zakat, the incentive for lenders to apply interest and force the poor into interest-bearing loans disappears. In such an economy, Islamic finance will focus more on investment and wealth creation than on consumption. An Islamic economic model cannot be established without the full implementation of the concept of zakat. [The topic of zakat has been studied in detail by Hamid, Iqbal, and Mirakhor ( 2008 г.)]. They demonstrated its role in supporting economic development and achieving social balance without waste and poverty. Seyyid Kotb ( 1954 г.) has carefully studied the role of zakat in achieving social justice and overcoming distorted income distribution. Zakat is the third pillar of Islam. Those who deny it are not Muslims. Allah warned those who rejected zakat:

41:6: And woe to those al-Mushriken (polytheists, idolaters, who do not believe in the Exclusivity of Allah. Those who do not recognize Zakat, do not believe in life after death.

Our Prophet warned against collecting zakat. Refusing to pay zakat will lead to economic losses, as is clearly stated in many parts of the Quran. Zakat is not a favor bestowed by the rich on the poor; it is the right of the poor to the wealth of the rich.

Zakat is determined as a fixed rate on savings, gold, silver, harvests (Vegetables and perishable fruits are not subject to zakat), livestock (Horses, mules, and donkeys are not subject to zakat), commodities, rental income, and the value of real estate. Zakat is originally intended for eight categories of recipients specified in the Quran (9; 60).

Historical experience confirms that if zakat and hummus were paid in full, poverty would disappear from the Muslim world entirely. This is explained by two reasons. First, Allah will increase wealth after zakat is paid. Second, zakat will be sufficient to meet the needs of the poor and needy. Unfortunately, only a small fraction of zakat is paid in the Muslim world.

Besides the obligatory zakat, infaq ( i.e. , spending in the way of Allah) was highly valued by Allah and His Messenger. Infaq is purely voluntary. The Prophet and his companions demonstrated the most generous example of infaq, sparing no wealth for the needy [Infaq is not charity; it is the reimbursement of the property rights of the poor (beyond zakat) by the wealth of the rich. The praise of infaq lies in the fact that the rich recognize the obligations Allah has placed on them]. However, the Prophet did not support excessive charity, which could deprive a family of a decent livelihood.

Public finance in the Islamic economic model

The concept of the state and central authority is fully embodied in the Islamic economic model. The state is responsible for defense, maintaining order, distributing profits to the poor, administering justice, providing public services, and investing in economic development. The concept of the modern state arose during the time of the Prophet Muhammad and his successors, the Caliphs. The state treasury was established under the Prophet Muhammad, under the name of Bayt Mal Al-Muslimeen. The concept of public finance has become a fundamental aspect of the Islamic economic model. The core principles governing Islamic financial activity include fiscal discipline, trust, and the efficiency of public expenditures, as clearly stated in numerous verses of the Quran:

25; 67: It is the nature of the servants of the Most Merciful to spend moderately on themselves and their families. They are neither extravagant nor stingy, but rather keep to the middle ground in their spending.

17:27: For the wasteful are the brothers of the devils, and Satan never thanks his Lord.

6; 141: Be moderate, for Allah does not like the extravagant.

Public spending must be conducted according to Islamic criteria that support social welfare and economic growth. Rulers and civil servants are entitled to compensation, but it must be proportionate and determined based on the government’s fiscal balance. Many types of expenditure are prohibited, such as spending on personal security for the purpose of establishing absolute power and activities that do not contribute to social welfare. Initial appropriations under the Prophet and subsequent caliphs were allocated for social welfare. Later, when greater resources were available, appropriations were allocated for infrastructure, particularly water resources, schools, and urban development. Appropriations for the poor and needy must be maintained at an appropriate level, as this is a fundamental aspect of Islamic public finance. Wasteful subsidies, particularly fuel subsidies, are prohibited. In many Muslim countries, civil servants and the military are required to pay salaries that far exceed acceptable limits relative to government revenues, while high unemployment rates persist. In many such countries, governments borrow from domestic or foreign sources to pay salaries, which exacerbates internal and external imbalances. Capital investment must also be based on strict criteria for enhancing social welfare and economic growth. Spending on stadiums, theaters, monuments, and royal palaces is prohibited. Capital investment must be focused on building economic and social infrastructure.

The sources of government revenue in the early period of Islam were zakat, hummus (one-fifth of the benefits bestowed by Allah, including mining), and voluntary contributions (infaq). Some forms of taxation were strictly prohibited by the Prophet. One form was called “ Maqs ,” a fee paid to a government agency before a product is released to the market. Naturally, an Islamic tax system cannot simply copy the traditional tax system. Certain taxes, such as inheritance taxes, are not permissible in an Islamic tax system. The principle of taxation must adhere to strict criteria of social solidarity, social welfare, and public interest. Property taxes and municipal taxes can be made mandatory in the interests of society, protecting the environment and public health, since such taxes will allow for the maintenance of sanitation, garbage collection, and street cleaning services. The Quran and Sunnah call on Muslims to strengthen social solidarity and spend in the public interest. User fees support social equality; The government is encouraged to charge fees for the use of public infrastructure, such as ports, airports, and highways. The government is entitled to royalties from the extraction of natural resources. Although the state cannot impose obligations regarding income and wealth beyond zakat, it nevertheless has the right to resort to moderate taxation based on criteria of public interest, such as defense and internal security, or for the construction and maintenance of public infrastructure used by all firms engaged in economic activity. Taxation for the maintenance of rulers and civil servants, the army, and inefficient expenditures is prohibited in the Islamic economic model.

The fundamental principle of public finance management in the Islamic model is that the government must maintain a current budget surplus, which will help finance capital investment. In the event of a current budget deficit, the government must forcefully reduce its current expenditures and increase revenues to generate a current account surplus. Budget deficit financing must comply with Islamic principles. Specifically, the government must not borrow at interest. It can only enter into contracts for interest-free loans. The government can generate revenue from mining duties on certain minerals, mint coins, or issue currency; however, such financing must strictly adhere to the rule of increasing the money supply. Inflationary deficit financing is unacceptable, as it distorts prices, imposes high taxes on fixed-income groups (pensioners, employees), burns savings, destabilizes the financial system, encourages speculation, and reduces economic growth.

Banking and financial intermediation in the Islamic economic model

The Islamic financial system is fully described in the Quran and Sunnah. The Quran and Sunnah have always viewed Islamic finance as the financial activity of an Islamic economy, in which social equality is maintained by the obligatory levy of zakat. In the Quran, verses mentioning interest (riba) are always preceded and followed by verses affirming zakat. Thus, when social equality is ensured by zakat, the incentive for lenders to apply interest and force the poor into interest-bearing loans disappears. In such an economy, Islamic finance will focus more on investment and wealth creation than consumption. While interest is prohibited, Islamic finance supports trade, capital accumulation (investment), and production. The concept of capital is clearly defined in the Quran. The concepts of productive capital, working capital, and money capital exist. Classical growth theory recognizes that economic growth depends on capital accumulation. The relationship between economic growth and capital accumulation can be easily defined using the Harrod-Domar model.

As real GDP grows, so do the level of savings (investment) and the productivity of additional capital. According to this formulation, the higher the level of savings and, consequently, investment, the higher the productivity of capital and the faster the rate of economic growth.

Financial intermediation plays a fundamental role in mobilizing savings and reallocating them toward investment. Such financial intermediation has made it possible for industrialized countries to increase investment and achieve mass production and sustainable growth.

Financial intermediation is a fundamental aspect of the Islamic economic model. It enables the mobilization of large amounts of savings and their allocation to productive investment. Without financial intermediation, the volume of mobilized savings and investment would be very low, leading to a slowdown in economic growth.

Mirakhor ( 1988 г.) defined the Islamic financial system as a system in which there are no risk-free assets, and all financial transactions are based on risk and the sharing of profits and losses. Thus, all financial assets are contingent claims, and there are no debt instruments with fixed or floating interest rates. By presenting a model of the financial system as non-speculative equity ownership, he showed that the rate of return on financial assets is primarily determined by the profitability of the real sector and, consequently, the growth of the economy, so Islamic banks will always have a net positive income [Henry Simons’s position, outlined in his work «The Economic Policy of a Free Society and the Impact of the Great Depression of the 1930s, was the closest to the Islamic banking system. In his policy recommendations, known as the Chicago Plan, he called for the separation of banking activities into custody, with 100% reserve bank deposits, and the investment activities of investment banks, whose liabilities would be in the form of equity stakes. His reform plan aimed to eliminate the elasticity of credit in the financial system. It included restrictions on open-account lending and installment loans, as well as limiting government debt to interest-free finance and very long-term loans (consol). He advocated a system in which all financial wealth would be in the form of assets, without any fixed-financing contracts, so that no bank could create monetary substitutes.

Financial intermediation in Islam takes a different form than in the traditional system. In particular, commercial banking in the Islamic system differs significantly from traditional commercial banking. Banks do not lend money at interest and do not create or destroy money. They directly participate in production and trade operations based on the principle of profit and loss sharing. Banks do not act as simple lenders; they are required to directly participate in trade and investment operations and own inventory. Deposits in an Islamic financial institution can be viewed as shares or securities, which, if unsecured, are subject to risk.

There is no such thing as lending out of thin air. In conventional banking, deposits in one bank can be instantly issued as a loan, used to purchase financial assets, or used as collateral for a loan in another bank, which artificially creates purchasing power and inflates the prices of goods and assets. This practice does not exist in Islamic banking. Deposits must be reinvested directly by the bank in trade and production, creating a new flow of goods and services. New cash flows arise from the revenue from the sale of goods and services. Money is not created with the stroke of a pen, independent of the production of goods and services. Investment equals savings, and the aggregate supply of goods and services always equals aggregate demand.

Banks are prohibited from engaging in speculative transactions that lead to increased lending volumes. Financial institution liabilities are secured by inventory owned directly by the institution and are not covered by financial assets. The risks of Islamic financial institutions are reduced because they depend directly on the profitability of investment transactions, not on the capital of such institutions.

In such a system, the central bank has an exclusive monopoly on money creation. The interest rate cannot be used as a policy instrument. The central bank does not refinance banks, as is done in traditional banking. It does not acquire or sell banks’ financial assets. The central bank must establish a quantitative limit on the money supply. This policy has been effective in maintaining financial stability and preventing speculative booms even in the traditional system. The central bank implements financial injections through the purchase of foreign currency, gold or interest-free government bonds (possibly indexed to gold), and a portfolio of goods or real estate created by the government.

1. The Nature of Islamic Banking

Islamic banking can be divided into two types of banking: savings banking with 100% reserves and investment banking: savings banking and payment transactions, as in the pre-Islamic and early Islamic periods and in jewelry houses. This type of banking resembles a 100% reserve system, with highly liquid deposits and constant cheque servicing. This system should be based on a commission fee to cover the costs of savings banking, transfers, and payments.

The second type of activity is investment activity, in which deposits are treated as long-term savings, and banks directly assume the risk associated with trade, leasing, and productive investments in agriculture, industry, and services. A distinctive feature of such activity is that it is protected from unsupported expansion of lending. An Islamic bank must match the maturities of deposits and investments. Short-term deposits can be used to finance short-term trading operations, in which the bank purchases goods or raw materials and sells them to other companies; liquidity is strengthened as income from trading operations is received. Long-term deposits are used for long-term investments. Liquidity is strengthened as depreciation funds become available. In such investments, the Islamic bank acts as a direct owner of the investment process. In such a system, the financial institution is directly involved in the evaluation, management, and monitoring of the investment process [Critics have stated that operating costs are higher than in conventional banking due to the constant monitoring and involvement in the investment process. But this criticism has not been substantiated by the facts. Furthermore, the benefits of stability and the minimization of credit and market risks can easily offset high operating costs. Consider the costs of major bank bailouts and bank failures that arose during the last financial crisis; such costs can be supplemented by other economic and financial costs associated with inflation and economic downturns. Investment returns are determined by the profit or loss of the transaction and are distributed among investors as if they were shareholders of the authorized capital.

2. Balance sheet of an Islamic bank, investment activities

Let’s assume a deposit is opened at an Islamic bank. Such a deposit is essentially a savings account; it is subject to certain repayment terms and cannot be withdrawn immediately upon demand. As discussed above, the banks’ savings and payment transactions can be easily structured; however, a commission may be charged for such banking services. After accepting deposits, the balance sheet looks like this:

Table 1: Simple example of Islamic banking

Balance Sheet of Islamic Bank Investment Activity: Step 1: Deposit

Assets                         Liabilities

Reserves = 100                       Deposits (savings) = 100

Total = 100                             Total = 100

Islamic Bank Balance Sheet, Investment Activity: Step 2: Investment

Assets                                                            Liabilities

Commodities (gold, grain, oil, fertilizers

etc.) and working capital = 100                                 Deposits (savings) = 100

Total = 100                                                                Total = 100

Islamic Bank Balance Sheet, Investment Activity: Step 3: Closing the Deal

Assets                         Liabilities

Reserves = 110                       Deposits (savings) = 100

Profit = 10

Total = 110                             Total = 110

Unlike conventional banking, an Islamic bank is prohibited from providing loans with fixed or floating interest rates. It must be involved in trade or production. An Islamic bank is permitted to engage in short-term operations. For example, it can conduct trading operations or finance crop sales. It may purchase commodities on behalf of a trader for subsequent resale at a profit. The purchase of commodities is carried out in the form of actual transactions, not financial or speculative contracts. For example, if a bank finances crop transactions, it cannot act solely as an investor assuming the risks of the financial activity. It must be a full partner; it purchases fertilizer on behalf of farmers and finances operating costs; it participates in the sale of the crop. The bank is directly involved in all stages of the transaction through the principle of profit and loss sharing; it directly bears the risks of price fluctuations and currency exchange. It may lose part of the loan if revenues from crop sales fall and become less than the loan amount. It may also incur operating losses. The invested capital is repaid from the proceeds of crop sales. Net profit is distributed according to an agreed-upon formula.

Table 2: Islamic Financing Scheme

Balance Sheet of an Islamic Bank, Investment Activity: Investment Stage

Assets                                                            Liabilities

Mudaraba, Musharaka, Murabaza, sale

in installments, Istisnaa, rent = 100               Deposits (savings) = 100

Total = 100                                                                Total = 100

Balance Sheet of an Islamic Bank, Investment Activities: Project Closure Stage

Assets                         Liabilities

Reserves = 110                       Deposits (savings) = 100

Profit = 10

Total = 110                             Total = 110

Depositors have the right to withdraw or renew their deposits upon maturity. An Islamic bank is a different kind of conventional bank. It is not merely a financial intermediary, as in the conventional system. It must finance real activity in the production of goods and services. It does not provide loans to borrowers at a fixed or floating interest rate. It does not acquire financial assets. An Islamic bank identifies investment opportunities and evaluates them to minimize risks; it is directly involved in the management, control, and execution of trade or investment transactions; it provides funds for the purchase of goods and services necessary to complete such transactions. There is no lending that is not backed by real savings; the amount of deposits in an investment branch will be determined by real savings and the savings-to-income ratio, and not by the credit multiplier, as in conventional banking. New cash flows to an Islamic investment bank arise from new savings, not from loan proceeds transferred from one bank to another. Thus, there is value-creating activity that generates new cash flows, rather than the creation of money with the stroke of a pen, as in the traditional system. Therefore, the growth of financial activity will be stable and determined by real economic growth, not by volatile speculative financing or money creation by financial institutions. Accordingly, the Islamic system is protected from sharp fluctuations consisting of booms and busts. Moderate and short-lived booms and busts can result from good harvests, changes in productivity, technological advances, or adverse shocks. They cannot be generated by the financial system itself, as is the case in the traditional system.

Table 3 compares the deposit creation process in the Islamic and conventional systems under the assumption of a savings rate of 20 percent of real GDP and a required reserve ratio of 10 percent of deposits. It can be seen that the total money supply is $125 with a money multiplier of 1.25 and $1,000 with a money multiplier of 10 in the Islamic and conventional systems, respectively. [If the savings rate is 10 percent of GDP and the required reserve ratio is 5 percent of deposits, then the total deposits become $111 and $2,000 in the Islamic and conventional banking systems, respectively.] Theoretically, while the Islamic system is not subject to the risk of a bank run or a credit freeze, the conventional system may face such risks. Experience shows that in the event of a bank run or a credit freeze, conventional banks are forced to reduce their foreign exchange conversion, go bankrupt, or demand large amounts of new liquidity from the central bank. Using the quantity theory, according to which MV = PY , where M is the money supply, V is the velocity of money, P is the price level, and Y is real income, and assuming fixed values for Y and V , the price level will grow at a significantly lower rate in an Islamic system than in a conventional system. Furthermore, because the Islamic system is protected from large economic fluctuations caused by financial instability, its rate of real economic growth, which is determined by supply rather than demand, will be more stable than in a conventional system. In a conventional banking system, economic growth preceding financial instability may actually be constrained during subsequent stages of recession and decline.

Table 3: Comparison of Islamic and conventional banking

Islamic banking,

investment activities                          Traditional banking activities

Savings rate = 20 percent of GDP                             Required reserve ratio = 10 percent of deposits

Bank Deposit 1 = $100                                              Bank Deposit 1 = $100

Bank Deposit 2 = $20                                                Bank Deposit 2 = $90

Bank Deposit 3 = $4                                      Bank Deposit 3 = $81

Etc.                                                                             Etc.

Total deposits = $125                                    Total deposits = $1,000

Labor markets in the Islamic economic model

Labor economics is fundamental to the Islamic economic model. Allah approves of work, study, and the productive use of time. He disapproves of idleness and wasting time, as is clearly stated in many verses.

23;1.2.3. Successful are the believers who turn to Allah with prayer and piety and express complete obedience to Him, and who avoid evil deeds and words, lies and slander, and everything that Allah has forbidden.

23:72 And those who do not bear false witness, and if they become involved in any unfair game, they will come out of it with dignity.

31; 6. Among the people are those who buy lies (e.g., music, songs) and talk nonsense about the Quran to people in order to turn them away from the path of Allah, unaware of the sins they commit, they mock the religion of Allah (the path of Allah or the verses of the Quran). For them will be a humiliating punishment in Hellfire.

The Prophet (peace and blessings of Allah be upon him) called for the most productive use of time and spoke of our responsibility for how we use it. He valued hard work for a living and condemned the idleness of healthy people. The life of the Prophet, his family, and his companions exemplifies the competition for the most productive and beneficial use of time.

While supporting hard work and education, Sharia (and, consequently, the Islamic economic model) explicitly prohibits and severely punishes illegal means of earning a living. Enforcing Sharia law against illegal means of earning a living is mandatory, and, accordingly, such laws constitute a fundamental element of the institutional infrastructure supporting the Islamic economic model. If crime increases, social peace will be disrupted, and economic activity will suffer.

The primary goal of the Islamic economic model is to eliminate distortions in the labor market to increase employment and develop exports. It focuses on the development of flexible payment systems that can help balance labor markets. Despite decades of economic development, unemployment, which was very low before development planning, reached alarming levels in most Muslim countries by 2008, averaging 15 percent in middle-income countries and over 25 percent in low-income countries, particularly in sub-Saharan Africa. Immigration to developed countries has become the only solution. High unemployment cannot be explained by a lack of employment opportunities in industry; it is primarily due to distortions in the labor market.

Unemployment is a serious economic imbalance. It signifies a significant decline in production and widespread poverty. This decline in production can be estimated using Okun’s law, which uses the concepts of actual GDP (actual GDP at full employment), the prevailing unemployment rate as a percentage of the labor force (the natural rate of unemployment, usually considered to be 3 percent of the labor force), and a technological parameter. High unemployment suggests that the prevailing wage is significantly higher than the equilibrium wage, which will reduce unemployment to the natural rate of 3 percent of the labor force. Firms thus face higher procurement costs. Ensuring full employment is a priority goal of the Islamic economic model, as it is considered the best strategy for reducing poverty and achieving social equality. It is also a core theme of macroeconomics, both in the classical and Keynesian traditions.

The nature of unemployment has been thoroughly studied by the International Labour Office through case studies conducted in many developing countries, including Kenya, Colombia, and the Philippines. Unemployment can be linked to low capital accumulation due to low savings, massive rural-urban migration, a mismatch between education and skills required by the economy, unrealistically high wage expectations, and distorted consumer preferences that favor manufactured goods from developed countries and thus favor imports at the expense of traditional industries. In many countries, excessive government controls on investment, sales, and prices have stifled private sector development and exacerbated unemployment.

Only a few labor-abundant countries were able to achieve growth by relying entirely on their own labor force and gradually overcoming it. These economies typically relied on a market model and export-oriented economic growth based on labor-intensive technologies. Most developing countries employed a dualistic economic model, which envisioned the creation of a small advanced sector based on capital-intensive technologies alongside a large informal sector based on small capital. These economies relied on foreign debt to finance the development of the advanced sector and maintain the consumption patterns of industrialized countries. In the 1950s, many development economists feared that foreign aid could increase technological dependence on industrialized countries and called for trade instead of aid.

Distortions can be a major obstacle to job creation and employment growth. These distortions can arise from a variety of factors related to factor and product markets, as well as the regulatory and institutional framework. Price controls, trade restrictions, overvalued exchange rates, undervalued capital, subsidies, and high taxes can all lead to distortions in the economy. Barriers to entry and competition also create distortions and support monopolistic competition. Beyond distortions, negative attitudes toward work can also impede employment growth.

While implementing an employment strategy requires major reforms to liberalize the economy and support private sector development, serious distortions in the labor market must be directly addressed. A fully competitive labor market, free from distorting laws, is a prerequisite for overcoming unemployment. Many Muslim countries have adopted labor laws created by industrialized countries, which have hampered job creation and undermined economic development. Such laws set minimum wages well above marginal productivity, prohibit dismissal, limit working hours, and impose excessive insurance costs on employers. Faced with high labor costs, legal restrictions, and an unskilled and undisciplined workforce, firms in many Muslim countries have begun openly adopting capital-intensive production methods (using machinery in agriculture, industry, and construction), thereby reducing labor utilization and reducing employment opportunities.

The classical macroeconomic model did not consider unemployment because, in the 18th and 19th centuries, trade unions either did not exist or were in their infancy, and labor legislation was nonexistent. Therefore, the labor market was always balanced, and full employment was maintained everywhere. The classical model is based on the assumption of complete flexibility of wages and prices. The model proposed by Ricardo ( 1817 г1888) and Arthur Lewis ( 1954 г1888) requires wages to be maintained at the level of the marginal product in order to increase savings and capital accumulation. In this model, firms’ demand for labor is determined by the marginal product. The labor supply curve depends on the real wage. The labor market is equalized based on the wage, which ensures full employment. The number of people employed, in turn, will determine real GDP.

In contrast, Keynes’s model, proposed in 1936, assumes the presence of powerful trade unions (similar to those in the United Kingdom), which would protect against declining nominal wages and mass unemployment. Thus, involuntary unemployment would exist, and the economy would reach an equilibrium at a level of underemployment.

In many Muslim countries, wage levels are predetermined, both in the private and public sectors, and are considered fixed costs. However, sales volumes or selling prices can decline, causing firms to incur operating losses. Firms must absorb the full amount of these losses and cannot offset part of them by reducing wages. Similarly, the government may face a decline in tax or royalty revenues; however, the wage bill is predetermined, and the government cannot adjust it due to declining revenues, forcing it to run a budget deficit. The immutability of wages has led to significant savings in labor use and has become a source of inflation.

The prevalence of structural unemployment in many Muslim countries confirms labor redundancy and, consequently, very low marginal labor productivity. The main distortion arises when the value of marginal labor productivity in agriculture, industry, and construction is comparable to the actual wages in these sectors. This distortion will hinder short-term full employment of the labor force.

The relationship between the price of a product and wages is usually simplified using the concept of a markup. Specifically, the price level can be formulated as follows: when it corresponds to average labor productivity, it represents the markup and the average wage in the economy. Given this relationship, an increase in productivity will reduce the price of goods; however, an increase in wages will affect prices unless offset by an increase in productivity.

Wage distortions, where prevailing wages significantly exceed the equilibrium wage level, can cause significant harm to competitiveness in foreign markets. The real exchange rate, and thus competitiveness in foreign markets, can be determined as follows:

It denotes the nominal exchange rate, defined as the amount of domestic currency offered for one unit of foreign currency and the domestic price level in a competing foreign country, respectively. The real exchange rate conveys the concept of purchasing power parity.

The real exchange rate is also determined based on labor costs per unit of output. Referring to the concept of the markup, the price level can be formulated as follows: when it corresponds to average labor productivity, it represents the markup and the average wage in the domestic economy. The same markup relationship applies to a competing foreign country: namely, when the price level corresponds to average labor productivity, it represents the markup and the average wage in the foreign economy, respectively. The real exchange rate can be defined as follows:

Assuming it is fixed, the ratio can be considered constant. The real exchange rate can also be defined as follows:

Assuming a 30 percent wage inflation, exporters face higher costs and a loss of competitiveness. To restore competitiveness, the exchange rate would need to depreciate significantly to offset the wage distortion.

Rising unemployment in the United States and Europe was driven by overly stimulative monetary policies, which sent food and energy prices skyrocketing, triggering food riots, the decline of many key economic sectors, such as manufacturing and transportation, widening the balance of payments deficit, and a decline in savings. The unfolding financial crisis, caused by excessive debt and critical losses of financial wealth, could worsen the economic recession. [Overindebtedness and losses of financial wealth were considered the main causes of the Great Depression.] The approach used, aimed at rapid economic recovery through the exclusive role of the central bank, only worsened the economic crisis. This approach lowered interest rates to record lows in order to inflate prices, protect debtors, and prevent asset prices, including housing prices, from adjusting to market values. This, in turn, further worsened the economic and financial situation. The approach was characterized by massive fiscal stimulus aimed at bringing aggregate demand in line with full employment. Proponents of excessive fiscal stimulus aimed at combating economic downturns derived their theory from Keynesian economics.

Beyond the risk of high or hyperinflation, a demand-side policy may not be a viable response to the global economic crisis, as such a policy was one of the root causes of the economic and financial crisis. It could create unmanageable public debt and destroy real savings and private sector investment. A more carefully designed supply-side stabilization and support policy would be a better solution for a long-term recovery. Monetary policy should be stabilized, factor prices and other inputs should be market-driven and subject to less severe distortions, and asset prices should adjust based on market conditions. The classic approach of reducing the balance sheet deficit by adjusting prices and improving competitiveness would stimulate exports and reduce imports. Although exchange rate depreciation can immediately change export and import prices, such a policy has led to competitive devaluation and, as a result, failed to improve competitiveness, meaning costs and prices remain the main factors influencing export and import prices. The government must address shortages of food, energy, and infrastructure and develop sectoral policies to increase production in these areas. A supply-side approach does not aim for a quick recovery through the indiscriminate use of macroeconomic policies. It addresses entrenched distortions in the economy, overcomes inflation expectations, stabilizes monetary and fiscal policy, and creates the foundation for sustainable growth. This policy was employed in the 1980s and led to a long period of economic prosperity.

Choosing a development model that fully utilizes the labor force is the most recommended strategy of the Islamic economic model, not only for reducing poverty and overcoming social inequality, but also for restoring sustainable, balanced, and export-oriented economic growth. In addition to investing in education and workforce development in various professional fields, the most effective way to eliminate labor surpluses is to eliminate all types of price and institutional distortions and encourage competitive wages that reflect true labor productivity. Linking wages to productivity and productivity growth will eliminate inflationary pressures arising from rapid wage growth that is out of sync with productivity and stimulate labor demand in traditionally major employers, such as agriculture, industry, construction, and services. Undistorted wages will ensure rapid growth in savings and capital accumulation. This will stimulate exports, reduce imports, and remove a source of exchange rate overvaluation. Competitive wages in agriculture will help increase agricultural profitability and, as a result, reduce pressure on food prices.

Maintaining a highly distorted wage structure will have a detrimental effect on development and worsen unemployment. This will lead to migration to cities and immigration in search of work. Strict regulations on layoffs should be eliminated. Vocational training is recommended, which will increase productivity and teach workers new skills, which in turn will enhance their mobility across industries. Only when wages are aligned with productivity and when legal restrictions are lifted will private enterprises be interested in providing vocational training. High unemployment is fundamentally economically inefficient, as millions of people must be fed and provided with all their necessities without contributing to real GDP, leading to the depletion of savings and large volumes of foreign financing. Furthermore, poverty and low living standards have become widespread. Incomes are unreasonably high. Such high unemployment has led to alarming levels of crime and social insecurity.

Development of the private sector and asset and commodity markets in the Islamic economic model

The Islamic economic model supports private property, private sector development, free domestic and foreign trade, strengthens competitiveness, and aims to eliminate distortions in asset and product markets. The Islamic economic model allows for natural monopolies but prohibits any restrictions on market entry. [The Prophet and subsequent caliphs were particularly careful not to create distortions. Umar refused to impose retaliatory import duties on goods imported from Christian countries that imposed tariffs on imports from Muslim countries.] In many countries, monopolistic competition in the form of large corporations that control the market hinders the expansion of supply and the achievement of higher levels of social welfare. In particular, commodity prices become inflexible due to market power and cannot be lowered, and the quantity sold is lower than under pure competition. Antitrust laws aim to improve competition, expand supply, and reduce prices. Middlemen who band together to control agricultural markets impose low prices that prevent farmers from earning sufficient profits and, consequently, stimulate a decline in agricultural production.

The price of assets should be determined by the market. Since interest rates are not included in the Islamic economic model, capital gains are achieved through profit-making and the distribution of profits and losses. The exchange rate, defined as the price of gold per unit of commodity, the price of gold per unit of currency, or the price of one unit of local currency expressed in foreign currency, should be regulated by the market, as was the case in the early stages of Islam.

The Islamic economic model is based on free competition, undistorted, balanced prices, and prohibits government price fixing and many forms of price distortion (e.g., excessive tariffs, subsidies, etc.), with the exception of natural monopolies or public services (e.g., transportation). Government-managed marketing boards and price fixing can have an adverse impact on private investment and long-term supply. Fraud, bartering by weight, and altering the quality of goods, such as adding water to milk or diluting honey, are condemned in the Quran and Sunnah as abominable acts.

Investments in human capital and economic and social infrastructure

Long-term planning and prioritization of national development are essential elements of the Islamic economic model. A Muslim economy must have long-term plans for water supply, dam construction, electricity generation, road infrastructure, hospitals, airports, and so on, which will protect it from unexpected bottlenecks or infrastructure shortcomings. Investment in human capital is an integral element of the Islamic economic model and creates the foundation for sustainable economic growth. The Quran and Sunnah emphasize the value of education, science, and human capital.

The development plan should also identify sectoral priorities, such as achieving food security, expanding housing, developing mineral resources, increasing energy supplies, and promoting exports. Long-term planning should also aim to maximize employment and support industrialization.

The development plan defines long-term projects and their financing, which can come from domestic and external sources. However, it must comply with Islamic principles, meaning borrowing must be interest-free. Furthermore, borrowing can be done through public-private partnerships.

Islamic law, the legislative and regulatory basis of the Islamic economic model.

The Islamic economic model is fundamentally different from other economic models because it recognizes the supremacy of Allah, accepts laws from Allah, and is based on a set of Islamic laws that strictly prohibit violations of any kind. Every economic system requires a set of laws for its practical application, contract protection, and security. For an Islamic economic system, such a set of laws is represented by Islamic Sharia (law).

The Prophet spoke about the illegal appropriation of other people’s money, the prohibition of murder and adultery, etc.

In 4:29 Allah says: O you who believe, do not consume one another’s wealth unjustly, except in the case of mutually agreed-upon transactions. And do not destroy yourselves by disobeying Allah.

2:188: Do not devour one another’s wealth unjustly (by bribery and bribes) and do not bribe judges to take other people’s wealth unjustly, while you know in your hearts that you are doing evil.

4:10: Indeed, those are unjust to the orphans who take the property of the orphans without right, and consume that which will lead them into the Fire, and they will burn in a terrible flame!

Commercial transactions (interest-free loans, sales, etc.) must be registered in writing by a notary in the presence of witnesses. If a notary is not present, the security may be forfeited and returned upon fulfillment of the obligation.

Alcohol, drugs and gambling are strictly prohibited and carry the punishments prescribed in the Quran and Sunnah.

Combating theft, banditry, and embezzlement is a key element in maintaining the institutional foundation of the Islamic economic model. Without it, the Islamic system will descend into social chaos and economic stagnation. Specifically, the value of labor declines, trust disappears, and insecurity rises to alarming levels. Labor markets have been significantly impacted by the prevalence of crime and the declining value of labor, forcing farmers and employers in many Muslim countries to fear hiring workers and resort to capital-intensive production models, replacing human labor with machines.

The Islamic economic model is based on the Sharia of Allah and aims to implement Sharia law in economic life. Based on interest-free financing, balanced fiscal policy, and redistributive zakat, the Islamic economic model can offer a clear macroeconomic framework for sustainable and balanced economic growth.

Unfortunately, few Muslim countries implement the Islamic economic model and apply the fundamental economic and social laws of Sharia. The rules of conduct enshrined in the Quran and Sunnah have long been ignored, and most elements of the Islamic economic model have become unworkable, primarily due to secularism, which holds that religion has no relevance to a modern state. All laws must be man-made or adapted from traditional models. Most Islamic countries have fallen far behind industrialized nations, and the technological gap is widening. Despite significant agricultural potential, many countries rely on industrialized countries for food supplies. Social and political security has deteriorated to alarming levels. Unemployment has become unmanageable, not because of a lack of productive jobs, but because of prevailing distortions, declining work ethic and integrity, and rising crime rates. Official corruption and bribery became widespread to the point of paralyzing economic growth and undermining social stability. Totalitarian rule and the cult of personality, maintained for decades, kept the country’s population confined to the country and undermined economic development. Significant resources were devoted to maintaining political stability.

While many Muslim countries enjoy excessive surpluses, fueled solely by oil and natural gas reserves invested in interest-bearing assets, most Muslim countries suffer from growing poverty and declining social and health standards. Many Muslim countries are heavily indebted and unable to repay their substantial external debt.

Development spending under traditional models has become excessive, leading to massive debt, declining social standards, and widespread poverty. Social disillusionment associated with rising unemployment has become widespread. The Islamic economic model offers a promising and more effective alternative to these broken economic systems. This economic model is based on the economic and social precepts of the Quran and Sunnah. It does not cherry-pick certain precepts and ignore others. Such an approach is strongly condemned by Allah. The Islamic economic model considers the Quran and Sunnah as a unified whole and encompasses all economic and social laws established by Allah and His Prophet, the successful implementation of which will benefit both this life and the next.

Article 227.

            The coexistence of three sectors based on different forms of ownership of the means of production is guaranteed.

            The public sector consists of the means of production that are owned and managed by the state or other government agencies.

            The private sector consists of the means of production that are owned or managed by individuals or private legal entities, except as provided in the provisions of the following paragraph.

            The cooperative and public sector covers exclusively:

• means of production that are owned and managed by cooperatives that adhere to cooperative principles, while the law establishes various kinds of features in the regulation of cooperatives with state participation, which is related to their specific nature;
• communal means of production that are owned and managed by local communities;
• means of production that are owned and managed by legal entities that do not pursue the goal of making a profit and whose main goal is social solidarity, in particular the organization of mutual assistance.

Article 228.

            The law will establish the means and forms of participation and socialization of the means of production, as well as the criteria for determining the appropriate compensation.

The Caliphate acts as the representative of the Ummah in relations with the private and public sectors of the economy, to which the Ummah has entrusted its economic development and public ownership of resources.

The Khilafah is a state of the entire people of the Ummah, which manages the public sector of the economy to ensure the best development of the Ummah.

Article 229.

The Caliphate is based on the gold standard of the dinar as the only legal tender within the territory of the Caliphate, also used in international settlements.

The purchasing power parity of the dinar and exchange rates are set by the Islamic Development Bank of the Caliphate.

The Islamic Development Bank of the Khilafah is an independent government body that implements monetary policy in the Khilafah.

Article 230.

            The following are in public ownership:

• territorial waters and the seabed beneath them, the continental shelf, as well as lakes, other natural water bodies, flowing shipping and floating waters and their seabed;
• layers of the atmosphere above the territory, located above the level up to which the air column is recognized as the owner or is related to the surface of the site;
• mineral deposits, sources of mineral healing waters, natural cavities in the ground that exist beneath the surface; the exception is natural stone and other non-metallic materials commonly used in construction;
• roads;
• National Railways;
• other property classified in this category by law.

            The law shall determine what property is considered to be the public property of the state, the public property of autonomous regions and the public property of local authorities, as well as its regime, conditions of use and limits.

Article 231.

            Caliphatestimulates and supports the creation and activities of cooperatives.

            The law will define fiscal and financial incentives for cooperatives, as well as the most favorable conditions for obtaining loans and technical assistance.

            The Caliphate supports feasible experiments in self-government.

Article 232.

            The Caliphate creates conditions for the promotion of entrepreneurial activity, especially small and medium-sized businesses, and oversees the fulfillment of legal obligations by enterprises engaged in activities of public interest.

            The Caliphate may intervene in the management of private enterprises only for a short time, in cases expressly provided for by law, and, as a rule, in execution of a previous court decision.

            The law will define the main sectors of the economy in which the activities of private enterprises and other similar organizations are prohibited.

Article 233.

            The law will regulate the economic activities and investments of foreign individuals and legal entities in order to guarantee their contribution to the country’s development and protect national independence and the interests of workers.

Article 234.

            The means of production abandoned by their owners may be expropriated under conditions to be determined by law, taking due account of the special situation of the property of migrant workers.

            Means of production abandoned by their owners without justification may, nevertheless, be forcibly transferred by lease or concession under conditions established by law.

Article 235.

            Effective participation of workers in the management of public sector enterprises is ensured.

Part 2. Plans.

Article 236.

            The general development plan for the Caliphate and its Ummah is adopted by the Majlis al-Ummah and approved by the Caliph upon the proposal of the Economic and Social Shura with the approval of the Council of Ministers of the Caliphate.

            The General Development Plan is adopted for a period of five years and contains the main planned socio-economic indicators for the development of the Caliphate and the Ummah.

Article 237.

The general development plan for the caliphate and its ummah may additionally include plans for territorial and sectoral development.

Such Economic and Social Development Plans aim to stimulate economic growth, harmonize and develop sectors and regions in a comprehensive manner, ensure fair distribution of the national product among individuals and regions, coordinate economic policy with social policy and educational and cultural policy, protect rural areas, maintain ecological balance, and protect the environment and the quality of life of Muslims.

Part 3. Agricultural, trade and industrial policy.

Article 238.

            The objectives of agricultural policy are:

• increasing the production and productivity of agriculture by providing it with the appropriate infrastructure, labor force, technical and financial resources to ensure better supply of the country and also to increase exports;
• promoting the improvement of the economic, social and cultural situation of rural workers and agricultural producers, the development of rural areas, the rationalization of agricultural structures and access to ownership or possession of land and other means of production that are directly used in work for those who cultivate it;
• creation of the necessary conditions for achieving full equality of those working in agriculture with other workers and the elimination of the unfavorable situation in the sphere of trade between agricultural and other sectors of the economy;
• ensuring the rational use and management of land and other natural resources, as well as maintaining the ability to restore fertility;
• stimulation of the unification of agricultural producers and direct exploitation of the land.

            The Caliphate will develop a policy of establishing order, agrarian restructuring and forest development in accordance with the ecological and social conditions in the country.

Article 239.

            Following the planned course in agricultural policy, the state will support primarily small and medium-sized landowners, especially in cases where they are organized into family business units individually or united in cooperatives, as well as in rural workers’ cooperatives and other forms of economic associations of workers.

            Support for the Caliphate includes:

• provision of technical assistance;
• providing support for the commercial sale of products during a sharp rise or decline in production;
• support to cover risks associated with the consequences of unforeseen or uncontrollable climate processes and plant diseases;
• incentives for the association of rural workers and farmers, in particular for the establishment of production, purchasing, marketing, processing, service cooperatives, as well as other forms of economic associations of workers.

Article 240.

            The participation of rural workers and farmers, through organizations representing them, in the development of agricultural policy is ensured.

Article 241.

            The objectives of trade policy are:

• healthy competition among traders;
• rationalization of the distribution network;
• combating speculation and restrictive trading practices;
• development and diversification of external economic relations;
• consumer protection.

Article 242.

            The objectives of industrial policy are:

• increasing industrial production based on economic modernization, combining social and economic interests and participation in international integration;
• increasing technological and industrial innovation;
• increasing the competitiveness and productivity of industrial enterprises;
• support for small and medium-sized enterprises, any of their initiatives and enterprises that create jobs and increase the export of goods and services or import-substituting products;
• support for international activities of enterprises.

Part 4. Finance.

Article 243.

            State taxes are established, may be amended, or abolished solely by law; individuals may be exempt from paying taxes in whole or in part in cases prescribed by law. Individuals may be required to pay other taxes, duties, and expenses within the limits of the law.

            Provisions governing the collection of taxes, duties, charges and other public funds, as well as the process of payment thereof, are provided by law.

            The provisions governing the retention, management and periods of disposal of state property and the extent to which any part of such property may be transferred shall be prescribed by law.

Article 244.

            State loans must be repaid according to law. By law, the Caliphate may issue loans or guarantee loans within the limits of its creditworthiness, which is regulated by budgetary law.

            Local government bodies such as municipalities or public institutions may lend, borrow or guarantee a loan in accordance with the law.

Article 245.

            The reporting year is established by law.

            The government prepares a draft annual state budget and budget expenditures and submits it to the Majlis al-Shura at least two months before the end of the reporting year for discussion in accordance with the provisions of the Constitution. Any amendment to the budget may be made with the consent of the government.

            Budget discussions should follow the classification of its contents.

            A budget draft may be prepared for more than one fiscal year. State revenue may not be allocated to private expenditures except in accordance with law.

Article 246.

            The state budget of the Caliphate is made public according to law.

            If the budget law has not been published before the beginning of the reporting year, the previous budget remains in effect until the law is published. Revenue must be received and expenditures must be incurred in accordance with the laws in effect until the end of the current year.

            Under no circumstances may the maximum budget estimates established in the Budget Law, laws and amendments thereto be exceeded.

Article 247.

            Any payments under the previous budget or in excess of budget estimates must be made in accordance with the law.

            By law, individual amounts of funds may be distributed over more than one reporting year if the principle of their payment so requires.

            Also, according to the law, permission for such an action with each amount must be presented in subsequent annual state budgets.

            In exceptional cases, when the budget is in effect for more than one reporting year, it may be distributed in accordance with the previous paragraph of this Constitution.

Article 248.

            Budget law may not contain language regarding a new tax, an increase in an existing tax, or an amendment to an existing law; it may also avoid promulgating a law on a matter that, according to the Constitution, must be regulated by law.

The final report on the financial affairs of the Caliphate for the past year must be submitted to the Majlis al-Shura within five months of the end of the financial year.

            The provisions relating to independent public budgets, their annexes and their final accounts shall be established by law and shall be the subject of regulations governing the state budget and its final balance sheet.

            Regulations governing the budgets and final balance sheets of municipalities must also be established by law.

Article 249.

            Along with the annual budget draft, the government must submit to the Majlis al-Shura a report on the financial and economic situation of the state, on the measures taken to maintain the budget approvals in force and on the effect of all of the above on the new budget draft.

            Financial control is carried out in accordance with the law. The law guarantees its independence.

            The law shall assist the government and the Majlis al-Shura in managing the collection of public revenue and in monitoring the implementation of expenditure within the budget.

Article 250.

            Any exploitation of natural resources or public utilities must be carried out in accordance with the law and within a limited period of time.

            Preliminary actions should ensure that exploration and geological research are facilitated, open and competitive.

            Monopolies are granted by law and for a limited period.

Article 251.

            The law regulates the movement of funds, the activities of banks, as well as indicators, parameters and standards.

            The law regulates the payment of remuneration in the form of wages, pensions, as well as reductions in payments and compensation.

            The above mentioned actions are managed by the state treasury.

Chapter 12. Media.

Article 252.

            The media have the right to free expression and presentation of information as long as they respect and adhere to the facts, norms and values of Islam.

            Freedom to publish newspapers and magazines shall be permitted within the limits and requirements of news censorship in accordance with legal procedures, except in times of war.

Article 253.

The media are obliged to:

• To protest and speak out against oppression, injustice and tyranny, no matter who is responsible for these actions.
• Respect privacy and refrain from interfering in personal affairs.
• Refrain from creating and spreading rumors, slander and libel.
• Express the truth and carefully avoid spreading falsehood or inaccuracies, and refrain from deliberately concealing the truth and the truth.
• Use dignified and formal language.
• To promote correct behavior and ethical values in society.
• Strictly refrain from spreading indecency, baseness and lack of spirituality.
• Refrain from promoting and glorifying crimes or acts that are contrary to Islam.
• Refrain from concealing facts except in cases where this may in any way infringe on the interests of society.
• Avoid becoming an instrument of corruption of any kind.

Article 254.

            The authorities of the Caliphate should not have the right to take any administrative action or punish the media in any way, except in cases of preventing violations of court orders.

Chapter 13. The procedure for changing the Nizam.

Article 255.

            The change of the current Nizam occurs only by the will of the Majlis al-Ummah.

Only the Majlis al-Shura can initiate the change of the Nizam and the adoption of the Act of Amendment.

The Majlis al-Shura must propose a bill for consideration by the Majlis al-Ummah.

Comment:

Amendments to this Basic Law are possible only with the consent of the Majlis al-Ummah. Only the Majlis al-Shura may initiate amendments. Only the Majlis al-Shura may propose an Act of Amendment in the form of a bill. This bill must be subject to exhaustive debate by parliament.

Article 256.

            Within a month from the date of the adoption of the bill by the Majlis al-Shura, the Majlis al-Ummah is convened.

            The Majlis al-Ummah adopts the changes by a two-thirds majority of its members.

            If the Majlis al-Shura’s bill is rejected, the Majlis al-Ummah either requests the Caliph to draft a new bill or terminates its work.

Comment:

            Within a month of the adoption of proposals to change the fundamental law, the Majlis al-Ummah is convened. It is authorized to adopt the changes if a two-thirds majority of its members vote in favor. This decision is final and has the highest authority for Muslims. The Majlis al-Ummah votes on the bill as a whole, and if it is rejected, the Majlis al-Ummah requests the caliph to draft a new draft.

Article 257.

            The Caliph, at the request of the Majlis al-Ummah, convenes the Nizam Commission of the Ulema and drafts a consensus bill.

After this, the bill is submitted for discussion to the Majlis al-Shura.

After a positive decision by the Majlis al-Ummah, within a month from the date of its decision, a referendum is held in the Caliphate at the will of the Caliph.

Comment:

The Caliph convenes the Nizam Commission. This body, composed of ulema, develops a consensus drafting process. A vote is then held in the Majlis al-Ummah. No timeframe is set for this. If the Majlis al-Shura votes and the Majlis al-Ummah’s decision is positive, a referendum is then held for the entire Caliphate.

Article 258.

In the event of a vote by more than fifty percent of the number of citizens and provided that fifty percent of the citizens of the Caliphate vote in favor of accepting the changes, they are considered accepted.

In the event of a negative decision, these changes cannot be the subject of a referendum for two years from the date of the referendum.

Comment:

            More than fifty percent of the Caliphate’s citizens must vote in the referendum, and fifty percent of the Caliphate’s citizens must vote in favor of adopting the amendments. If the vote is negative, the draft cannot be submitted for discussion for two years.

DICTIONARY OF THE ISLAMIC WORLD.

Ab ar-Rahman al-Kawakibi (1849-1903) was a scholar of Islamic education who uncovered a direct link between dictatorship and social backwardness. Political despotism is rooted in religious despotism, for which only shura (democracy) and constitutionalism can serve as a panacea. Al-Kawakibi identified political pluralism, respect for the opinion of the majority, governance based on moral values, and the ruler’s responsibility to the people, realized through control and the expression of distrust, as the main factors of Islamic revival. According to the scholar, a necessary means of combating despotism is the creation of an effective replacement. Al-Kawakibi warned against the possibility of colonial despotism being replaced by another despotism. He considered gradualism and smoothness to be the most important means in the fight against this evil, rejecting excessive assertiveness and immediacy as ineffective.

Abdurrahman ibn Khaldun (1332-1406) was a scholar of the Maliki school of thought who adhered to classical Arabic Islamic political philosophy. Abdurrahman ibn Khaldun believed that a kingdom, which is a necessity for collective life, requires law and order. If laws are developed by wise statesmen, then the prevailing state policy is rational. And if laws have divine origin, then policy is religious. According to Ibn Khaldun, the ideal policy, which brings happiness in this world and the next, is a policy derived from Islamic Sharia. He divides political governance of society into three categories:

1. a natural kingdom, when people are forced to live according to the demands of their passions and natural desires;

2. political kingdom, when society is led in the direction of reason to acquire what is useful and to get rid of what is harmful in worldly life;

3. Caliphate, when society is governed in accordance with Sharia in order to satisfy worldly interests and the interests of the people in the next world.

In this case, the ultimate goal is achieving happiness in the next world. Indeed, such a policy is the viceroyalty of the founder of Sharia in protecting religion and secular politics. Ibn Khaldun also believed that fanaticism (kinship) gives rise to collective life, and the spiritual element, when combined with fanaticism, creates kingship. Tribal relations are based on this fanaticism, understood as a sense of unity. The state naturally develops from such a society, and the spiritual element is Islam. Some of this thinker’s ideas are used in Islamic fundamentalism.

Abu Nasr al-Farabi (873-950) was a scholar of classical Arab Islamic political philosophy and the founder of the theory of urban civilization. Abu Nasr al-Farabi expressed the idea that, by nature, every person requires many things for their own existence and achievement, which they cannot obtain alone. Therefore, they require a community of people who can individually provide them with one of the things they need. The greatest good and highest perfection can be achieved primarily by a city, but not by a society at a lower level of perfection. A city in which people unite for the purpose of mutual assistance in pursuits that lead to true happiness is a virtuous city, and a society in which people help each other to achieve happiness is a virtuous society. A nation whose entire community helps one another to achieve happiness is a virtuous nation. The city has a specific hierarchical ladder, headed by the city’s imam. Organs located close to the main authority carry out the most exalted actions, in accordance with the natural purpose of the first governing body, while lower authorities carry out less exalted actions, and so on down to those authorities that carry out the lowest actions. According to al-Farabi, the first head of the city was the Prophet, entrusted with the Revelation. The second head will be the imam, who must satisfy the conditions of wisdom.

Abu al-Walid Muhammad—Latinized Averroes or Ibn Rushd (1126-1198)—was a scholar of the Maliki school of thought who adhered to classical Arabic Islamic political philosophy. He developed the most general problems of the Islamic state from an enlightened perspective. He believed that the state is an organization designed to collectively satisfy human needs, but states can be virtuous or non-virtuous. In the former, life is based on the principles of creation, Islam, science, and enlightenment. Man is a social being and cannot exist or satisfy his needs without community with others. People must help each other achieve happiness. Ibn Rushd understood the existence of wealth inequality in society, but he believed that with the help of enlightenment, all people in a virtuous state can find happiness, since such a state should be governed by enlightened people, led by a virtuous ruler. Ibn Rushd, like other Muslim Aristotelians, devoted considerable attention to the problem of virtue. In his opinion, a person must be raised in such a way that he consciously does good in earthly life, regardless of whether the conditions of life force him to do so or not, without linking this with reward and punishment in the next world.

Abu’l Hasan Mawardi (974-1058) was a Shafi’i legal scholar who belonged to classical Arab Islamic political philosophy and represented the pinnacle of Islamic political thought in the Middle Ages. He proposed that a kingdom rests on two foundations: the first is the foundation of the state, and the second is politics (wise management of affairs). The foundation of the state is religion, power, or wealth. A kingdom based on religion is the most desirable and durable. In a kingdom based on power, if the ruler adheres to the principles of justice and virtue in his actions, the people voluntarily entrust him with the reins of government and follow him. As a result, such a kingdom will be strong and stable. However, if the ruler follows the path of tyranny and despotism, society will be susceptible to destructive tendencies. The third type of kingdom is one based on wealth. According to Mawardi, it is the most fragile and unstable. Politics has four fundamental principles: the first is the construction of cities, the second is ensuring the safety and security of the people, the third is the organization of the army, and the fourth is financial management. According to Mawardi, the ruler is the center, and the people are the periphery. The virtue or vice of society depends on the vice or virtue of the ruler. The ruler is the imam, elected by the Shura or appointed by the previous imam. He expresses the will of the entire ummah and is the God-pleasing custodian of authority and protector of the people. The ruler is not subject to anyone but God, and the people subject to him have no right to assign duties to him or demand their fulfillment.

Mawardi believed the caliphate to be an institution established by Allah himself to protect the faith and guarantee just rule over the world. The caliph was to unite in one person spiritual authority—the Great Imamate ( al-Imamat al-Kubra in Arabic)—and political authority— the Emirate (Arabic: imara , from the root amara , meaning to command). This is the source of the title— amir al-mu’amin— «emir of the faithful.» According to Mawardi, there could be only one caliph-imam at a time, and his authority should extend throughout the world. Consequently, the idea was that there would be a single Muslim state, which would eventually become universal. The caliph must possess the following qualities: impeccable moral character, the necessary knowledge of law and theology, intact organs—hearing, sight, speech, etc.—the prudence necessary for governing and directing state affairs, and courage and fearlessness to defend the «domain of Islam» and wage war against the «infidels.» Furthermore, he must be from the Quraysh tribe, the tribe of the Prophet.

Mawardi recognizes two methods for filling the post of Imam-Caliph. The first, most desirable, is popular election. The second is the appointment of a successor by the ruling Caliph during his lifetime. Mawardi describes in detail who should elect the Caliph and how. In his opinion, the Quraysh have the primary right to elect the Caliph. The voters must be Muslims of impeccable reputation and possess the necessary knowledge to decide which candidate has the most right to the Caliphate. They must gather in a mosque, discuss the merits of the possible candidates, and choose the one deemed most worthy. However, Mawardi’s proposed method for electing the Caliph was never implemented in practice, despite being approved by most jurists.

A prospective candidate for the position of caliph must also meet certain requirements. First and foremost, the candidate must be a just and popular person capable of rendering rulings (ijtihad) based on the primary sources of religion—the Quran and Sunnah. This means they must be a learned person. Furthermore, they must possess all the necessary qualities for governing a state—determination, courage, and the ability to defend the state. Physical fitness and health are also of great importance. They must be healthy and free of obvious physical defects.

After his election, the Caliph, as head of state, is obliged to perform the following functions:

1. To ensure the implementation of the Divine laws expressed in the Sharia. The Caliph is also obligated to develop those religious principles that correspond to the provisions of Holy Scripture and are enshrined in the consensus of authoritative scholars of the entire Muslim community (ijma). His duties also include fighting for the purity of the religion and protecting it from innovations and heresies (bid’ah);
2. To protect the inviolability of property and all types of ownership of citizens, which must be provided with legal protection from any unlawful encroachments on them;
3. Provide all citizens with a minimum means of subsistence;
4. To protect the state from external aggression and strengthen its borders.
5. In case of enemy aggression, conduct military operations;
6. Organize the collection of various types of taxes (zakat and jizya);
7. Provide civil servants with sufficient salaries to prevent them from abusing their official position;
8. To provide social benefits established by religion to all those in need, for whom these funds are collected;
9. To carry out all the main state and religious duties oneself and not to delegate them to other persons in order to avoid betrayal on their part.

Citizens of the country are obligated to unconditionally support and obey the Caliph. Such full support should only be granted if the Caliph demonstrates his complete commitment to Divine law. If the Caliph openly violates religious tenets, follows his passions, or even commits actions questionable from a religious perspective, then the issue of his unfitness for office may arise. However, this must be thoroughly investigated and proven. If the Caliph who has sinned repents and brings his actions back into line with Divine law, then his continued tenure in power requires a new election.

The caliph’s stay in power is also invalid in two other cases: if he has obvious physical disabilities and if he is not free in his actions and is a puppet of others.

Adat is a historical normative source of Islamic law, representing the body of customs of the Muslim people prior to the adoption of Islam and covering civil and criminal law. Sharia quickly replaced the state law of the pre-Islamic Islamic country, as the state was determined by a specific ruler based on the general opinion of his subjects.

Adats are specific legal customs of adat.

Administrative bay’ah is an administrative-legal agreement concluded between the Caliph and the Sultan regarding the structure of the Sultanate, permitted by the Caliphate in accordance with the traditions of the Sultanate and the laws of the Caliphate.

Aqida is a set of beliefs of Islam as a world religion.

Active or “professional-terrorist” Islamic fundamentalism is an interpretation of Islamic fundamentalism in which the dissemination of Islamic fundamentalist ideas is desirable and permitted through armed struggle under the extremely rigid ideal of the proclaimed Islamist state, while Westernized strata are considered to have ceased to be Muslims.

Ali Abdel Razek (1888-1966) was a scholar of Islamic education who rejected the theory of the caliphate and believed that, in reality, the caliph’s power was always established and maintained through suppression and violence. It was precisely the need for systematic suppression that gave rise to this form of government. The caliphate, in his view, is a political system that Muslims gradually came to accept, while Islamic law contains no norms or principles regarding its binding nature. Razek asserted that the prophet’s mission was purely religious in nature and was fully fulfilled by Muhammad himself.

In his book, «Islam and the Foundations of Authority,» published in 1925, he not only objected to the generally accepted theory of the obligatory nature of the caliphate but also advanced the idea that the Quran says nothing at all about the caliphate as a state or form of government. The Sunnah, he believes, also offers no indisputable hadiths on the necessity of the caliphate, except for general calls for obedience and submission to the imam (and not always where the imam is mentioned, the head of state is meant). The performance of religious rites and the achievement of all the goals of Islam are independent of the form of government that jurists call the caliphate and the figures the people have designated as caliphs. Consequently, the caliphate is a political system that Muslims have gradually accepted, while Islamic law contains no norms or principles regarding its obligatory nature. The caliphate is not an integral part of the Muslim faith, but has been and remains a misfortune for Islam and Muslims, a source of evil and vice.

Razek asserted that the Prophet’s (pbuh) mission was purely religious in nature and was fully fulfilled by Muhammad (pbuh) himself. Therefore, it is irrevocably a thing of the past, and no one can succeed him as religious leader. With the death of the Prophet (pbuh), religious leadership ceased to exist, and a new form of community leadership emerged—political leadership, that is, leadership based on the powers of secular authority and governance. The first caliph was already a secular monarch.

According to Razek, Muslim doctrine in no way prevents Muslims from surpassing other nations in all areas of socio-political science, from ridding themselves of the archaic political institutions imposed on them, and from building foundations of government in the spirit of the most advanced and best models humanity has ever devised and implemented in national practice. A necessary and sufficient condition for this is that, under any form of government, goodness must be done to subjects and all religious obligations must be fulfilled.

Razek’s book provoked a strong negative reaction from the Muslim clergy and was declared heretical, and the author himself was expelled from the College of Ulema and deprived of the right to hold the position of Muslim judge by a decree of the Al-Azhar Council.

Ali Shariati (1933-1977) was a representative of the revivalist movement in Shiism and a proponent of Islamic reformation. After Imam Khomeini, Ali Shariati was the second most important and influential ideologist of the Islamic Revolution in Iran.The central principle of Ali Shariati’s ontology is tawhid (monotheism), the first and fundamental pillar of Islam. Tawhid is understood as the unity of Allah, humanity, and nature. According to Ali Shariati, religion is faith in the secret, in the reality hidden behind the visible world. In his classification of types of religion, Shariati draws on Islamic terminology, using the following concepts: tawhid («monotheism»), shirk («polytheism»), and kufr («disbelief»). Explaining the meaning of the assertion that monotheistic religion sanctioned the rejection of existing orders based on social inequality and exploitation, Shariati explains that, by opposing oppression and injustice, tawhid ultimately combats shirk. Shirk seeks to infiltrate their structure in order to “neutralize” them and put them into the service of the ruling elite, since the Tawhid religion poses a danger to the ruling class, integrating and mobilizing the masses to fight against the oppressors in power.

Shariati identifies four fundamental forces that bring about transformation in the social sphere: the individual, tradition, chance, and the masses. Although Islam accords prophets, and the Prophet Muhammad in particular, a special place in history, their role is not exclusive. The prophets’ function is simply to introduce the masses to the true religion and show them the way to eliminating distorted religion, exploitation, and injustice.

Speaking about the situation in modern Muslim countries, Ali Shariati pointed out the following problems that Islamic society faces:

1. The multifaceted expansion of Western states. Capitalist countries pursue specific goals and use the following methods to colonize Third World countries:
2. Under the guise of “civilization,” the modernization of consumption is being imposed on the states of Asia and Africa, which is caused by the desire, associated with the crisis of overproduction in the West, to sell goods that are essentially unnecessary to the peoples of the East, presenting their presence as a necessary attribute of “progressiveness” and “civilization.”
3. Artificial incitement of ethnic conflicts, cultivation of “blood commonality” and discrediting of the civilizational community.
4. Through active and sophisticated propaganda, people are distracted from understanding the true causes of their society’s problems, leading them down a false trail.
5. In the face of such aggressive expansion, Muslims need an ideology that can effectively resist Westernization, mobilize the masses, and direct them toward building a just society. According to the philosopher, an important task is not only to restore the principles of the original, true, tawhid Islam , but also to prevent the further degeneration of tawhid into shirk .

An alim, ulema, or faqih is an Islamic theological scholar, a «knowledge of the faith,» but they are not part of the Islamic clergy; rather, they are analogous to the Islamic intelligentsia. Islamic fundamentalists always seek their support to justify their terrorist actions.

Alma-hassa — Islamic masses — Islamic elite, Islamic concept of the elitism of the state.

Amir is an Islamic leader.

Amir is the head of an Islamic national state.

Amir is the head of a jihadist emirate as a step towards creating a caliphate.

Amn al-Khass is the Islamic security service of the head of the Islamic state.

The Arab legal tradition is a tradition that is developing with difficulty in the modern slave world under the conditions of direct support from the ruling classes of a number of Arab countries interested in the transformation of modern Arab states, under the conditions of the continuous influence of the Islamic legal tradition, which strives to completely displace this tradition.

The Arab form of government is the methods and forms of governance of a national Arab state within the community of a single Arab nation, based on an alternative secular understanding of statehood, attempting to rework the achievements of Western political and legal thought in relation to the conditions of the Arab world.

The Arab nation-state is a doctrine of national Arab states within a single Arab nation based on a secular understanding of statehood with significant Western influence on all major state institutions, which makes it difficult to create an alternative national, strong Arab identity.

Arab national law is a system of legal norms based on the interpretation (reception) of Western law, which reflects the secular national tradition of the countries of the Arab world.

Arab political and legal doctrine and the Arab doctrine of state and law are a system of views and ideas based on the secular parallel tradition of law and representing views on the role of nation states in the development of a single Arab nation, the mechanism for transforming the political regimes of Arab countries under the influence of Western influence and, in general, the democratization of political life in Arab countries.

As-Shura is the principle of consultation in the concept of power in Islamic culture, according to which the ruler must consult with the consultative Shura of educated and respected people of the state (or community) when making important decisions.

Ayatollah is a teacher in Islam.

Basij – territorial forces of the Islamic self-defense.

Bay’ah is the principle of subordination to the head of the Islamic state within the framework of Sharia.

Bay’ah khassa is a contract between the caliph and the Shura regarding the conditions of his election. Thus, the concept of contractual power relations is well-developed in Islam. Bay’ah is a normative source of Islamic law, constituting a constitutional and legal contract between the ruler of a Muslim country and the highest representative body—the parliament—regarding the conditions of his election and rule, expressed in the obligations assumed and the rights arising from them for their implementation.

Best is a retreat into the desert and seclusion in the cave of a faqih for self-improvement. It is a form of religious experience and Islamic social practice.

Bida is an innovation in Islam. This is how all later customs, regulations, and rituals of Islam in all areas are understood by Wahhabis and, more broadly, by fundamentalists. Fundamentalism proclaims a return to the roots, to the first centuries of rule without innovation.

A wazir or vizier or chief vizier is the head of the executive apparatus of an Islamic state, caliphate or imamate, the equivalent of a prime minister in a Western state, and originally headed the caliph’s office.

The Wazirat, or Internal Civil Administration, is the administrative structure within the civil administration of an Islamic state. It is headed by the wazir or vizier (prime minister). The chief executive assistant is the naib (deputy) of the caliph. In the modern sense, the wazirat is a ministry (formerly a divan), but in the more ancient sense, it was the chief assistant, deputy to the head of state. In the European sense, the wazirat is analogous to a government, although in Islamic doctrine, there is no government as a collegial body; executive assistants report directly to the head of state.

Waqf is a cultural and religious complex in Islam that includes a mosque, madrasah, maktabs, a hotel, a shelter, and a library.

Waqf or waqf lands are the lands of the waqf or, more broadly, the muftiate.

Wali is the head of the vilayet.

Wahhabism, or the Puritans of Islam—their self-designation as monotheists or Salafists—was formerly a loosely official doctrine of Saudi Arabia. It was an ideological movement within Islam advocating the purging of original Islam from all bid’ah, or local historical traditions, primarily the cult of local saints as the cultural and political legacy of this ethnosocial group. Despite its self-designation as Salafis, Wahhabism is only one branch of Salafiyya, albeit the most active. Saudi Arabia has largely moved away from the legacy of the Wahhabis, whose claims to theocratic power were crushed in the early 1930s. Wahhabism has contributed nothing new to the theoretical development or understanding of Islam. Rather, it is a specific political and legal practice of organizing the state on unified religious principles, where it has served as a unifying ideology.

New Wahhabism, or neo-Wahhabism, is the most systematic and extremist trend of Islamic fundamentalism worldwide. It emerged in the 1970s and has since gained momentum. Neo-Wahhabism is now embraced by many Islamist terrorist organizations; one could say that neo-Wahhabism is more Salafiyya than Wahhabism. According to this teaching, all Muslims who do not adhere to the «truth» are infidels. Neo-Wahhabis advocate armed dissemination of their teachings, postulating their own system of behavior, worldview, attainment of power, and approach to the politics of Muslim countries.

The department is an executive body in an Islamic state.

Weqalat, or External Civil Administration, is the administrative structure of the Islamic state’s external civil administration, headed by the Chancellor of Foreign Affairs, or Vakil (Deputy Prime Minister), the supreme external representative. The office of Weqalat, or Weqalat, translates as «representation» and is the equivalent of the Ministry of Foreign Affairs in the European context.

Velayat-e faqih is the principle of organizing power in an Islamic state, where a supreme theocratic authority is proclaimed. This authority is conceived in Islamic political science as standing above the usual three branches of supreme authority in the European sense. In the imamate, instead of branches of power, there are four parts of the imam’s supreme authority.

The Supreme Shura of Jihad is the coordinating body for the defense of the Islamic State.

The Supreme Qadi or Supreme Judicial Shura is the body that appoints other qadis and acts as an appellate body in legal disputes.

A vilayet or wilayat is a province in a unitary state such as a republic or Islamic republic, or in an imamate, as well as in the jihadist concept of an emirate .

Wird is a Sufi brotherhood.

A military naib is the deputy of the caliph or head of the Islamic state for defense matters, the commander-in-chief of the armed forces; the caliph may not be one.

The eastern city is a type of opposition, a city-community, in which the city acts as an extension of the rural community in the form of a mahalla.

The Supreme Judicial Shura is the highest administrative body for the Sharia system, which considers issues of personnel transfers within the judicial system and is headed by the head of state.

Vyakil is the assistant of the sheikh-teacher.

Ghazawat is a general Islamic uprising during the occupation of a Muslim state by foreign troops.

Ghazawat is, in jihadism, a general uprising of Muslims against the rule of a non-Islamic ruler, an enemy, or taghut.

Ghazi or mujahideen is a warrior for the Islamic faith.

The Global Salafi Jihad or Islamist Terrorist International is a global community of religiously motivated terrorists (jihadists) who seek to build a totalitarian version of the Caliphate on a global scale, for which all means are considered acceptable.

Daawa is Islamic propaganda.

Dar-as-Islam (the land of Islam) is a Muslim country with an Islamic form of government in Islamic political and legal doctrine.

Dar-as-kufr (land of unbelief) – in Islamic political and legal doctrine, non-Islamic countries where the light of Islamic truth should be brought.

Dar al-Sulh (land of the covenant) – in Islamic political and legal doctrine, a country, territory, land where Muslims enjoy religious freedom, but do not have political power.

Dar-as-harb (land of war) – in Islamic political and legal doctrine, a non-Muslim country that is in a state of war with Muslims, or a country from which a threat to the Islamic world emanates.

Dervish — Sufi wanderer.

Jamaat is a rural and urban community in Islam as an organ of state power.

Jamaat is one of the forms of social organization in Islamic society, a community of Muslims at the municipal level.

Jahiliyyah or pre-Islamic barbarism is, in jihadism, any non-Islamic society.

Jahiliyyah or pre-Islamic barbarism is, in Islamic political and legal doctrine, the pre-Islamic period in the history of the Islamic world, after which the flourishing of Islamic civilization began.

Jamal ad-Din al-Afghani (1839-1897) was the founder of Islamic education. Al-Afghani initiated the religious line of education, as opposed to the secular one espoused by Mustafa Kemal Atatürk.

Born into a Sayyid family in Kunar (eastern Afghanistan), he studied in Kabul and India. He became involved in the internecine strife of the Afghan rulers and was forced to emigrate in 1286 (1286/12869). He first went to India and then to Turkey. From 1288 (1288/12871), he lived in Egypt. There, he engaged in social and educational activities and was popular among the youth. He was one of the founders of the Egyptian periodical press and frequently published in newspapers. In his articles, he criticized the policies of Western powers towards the Muslim world. He also advocated constitutional rule in Muslim countries and the limitations of monarchical absolutism. In Alexandria, he founded the «Society of Young Egyptians.» For his activities, he was exiled from the country by the Egyptian authorities.

In 1300-03/1883-86 in Paris, Jamal ad-Din al-Afghani, together with Muhammad Abduh, founded the organization «Urwa al-Wuska» (Strongest Bond) and published a newspaper of the same name. His activities were aimed at awakening the consciousness of the Muslim intelligentsia. In the pages of this journal, he wrote about the need to unite all Muslims worldwide to fight against colonialism.

In 1309 (1892), the Turkish sultan invited him to Istanbul. Jamal ad-Din died there, and his remains were transported to Afghanistan in 1363 (1944).

Rejecting atheism, al-Afghani championed its liberation from the «innovations» (bid’ah) that distorted its true essence and led Muslims to backwardness. A rational interpretation of the Quran allows one to understand the foundations of an ideal social and political order without absolutism. An alternative to despotism is the Quranic principles of consultative government and the Arab adoption of certain European political ideas and institutions, provided they do not contradict Islamic principles.

According to al-Afghani, the power of a strong, just monarch should be balanced by institutions such as a constitution and parliament. Al-Afghani therefore advocated a limited constitutional monarchy. Al-Afghani did not insist on the abolition of monarchy altogether, but on replacing absolutism with a «representative, consultative form.» He recognized as binding only those norms of Sharia, including state law, that were contained in the Quran and Sunnah or reflected the unanimous opinion of the Prophet’s closest companions. Al-Afghani rejected the authority of mujtahids and advocated ijtihad. Attaching particular importance to Sharia, al-Afghani viewed it as the primary force guiding Muslim life, and the degree of adherence to its norms was considered the sole criterion for distinguishing between people. Moreover, he proceeded from the premise that Islam rejects any law that contradicts Sharia and condemns any authority that does not adhere to its norms.

Jizya is a Sharia tax imposed on non-Muslims in an Islamic state.

Jirga is a representative body of a tribe or federation of tribes in communal Islam or system.

In Islam, jihad is the struggle for faith in various forms. In jihadism, jihad is the primary means of carrying out an Islamic liberation revolution. The lack of a strict system of jihad allows Islamist ideologists to declare new jihads depending on the circumstances. Modernists distinguish between the Greater Jihad, the struggle for faith within oneself, and the Lesser Jihad, the jihad of the sword.

Jihad of the sword is a holy war against the kafirs (infidels) or, as proclaimed by jihadists, an “Islamic national liberation struggle.”

A jihad is an Islamist state created through jihad by the sword, positing a continuous mission to expand its living space, engaging in direct military conflict with other states, and proclaiming extremely strict forms of regulation of social relations. The difference between a jihad and a caliphate or imamate lies not in the fact that a jihad is created through armed struggle—the caliphate also allows for wars of liberation—but in the proclaimed mission of expansion by fire and sword to infinity, including through the conversion of infidels. A jihadist state includes:

• Islamic form of government.
• Only Unitarianism.
• Totalitarian political regime.

Jihad or Military Administration (also known as Jihad) is the order of state governance in the sphere of military development in an Islamic state, headed by the Amir of Jihad, the military Naib (Deputy) of the Caliph (Deputy Prime Minister). The Commander-in-Chief of the Armed Forces heads the Ministry of Defense, which in the European sense is equivalent to the Ministry of Defense.

Jihadist, Islamist, or Salafi political and legal doctrine is a system of views and understandings on the practice of building an Islamist (jihadist) state among fundamentalists, which has evolved into a rigid and coherent doctrine that brooks no criticism. The essence of this doctrine is to postulate the armed path to creating a jihadist state as the only correct path in the context of «rotten pro-Western regimes in the Islamic world» and the impossibility of achieving such a state through electoral change in Muslim states that rely on Western support.

Divan is a council of supreme power, an advisory body or a reform body.

Diwan is a department in an Islamic state, analogous to the Persian model of governance.

Sharia doctrine (first version) is a system of views and understandings regarding the sources of law in a modernizing Islamic nation-state, where Sharia is perceived as medieval historical law. Islamic law, as the law of the state, takes into account all the achievements of Sharia in the context of modernization; Islamic legislation serves as a body of legal norms, while adat, although subject to abolition, is accepted and transformed.

The doctrine of Sharia (the second option) is a system of views and understandings regarding the sources of law in an Islamist state, including the jihadist version of statehood, where Sharia, as a holistic system, not subject to criticism or revision, supplants all other alternative sources of law. Islamic law becomes identical to Sharia, Islamic legislation can be interpreted as Sharia legislation, and adat is declared to be a completely pre-Islamic barbarism and is completely rejected.

The doctrine of Sharia (the third option) is a system of views and ideas on the sources of law in a Western-type Muslim state, where Sharia is subject to complete abolition and displacement by the modern law of a Westernized Muslim state, and Islamic law and adat are perceived as obsolete legal norms.

A spirit or dushman is a mujahideen in Afghanistan.

Zikr is a ritual of mentioning the name of Allah in a meditative complex of exercises of the tariqa.

Ziyaret is a holy place in Islam, which is a place of pilgrimage for believers.

Zulm is evil, injustice, tyranny, oppression in Islam, it is the duty of a Muslim to fight against it.

Zakat is a Sharia tax in favor of the poor for the redistribution of wealth.

Ibadah is the rules of religious worship in Islam.

Idabarat is a commission for phased Islamic constitutional reform.

Idarat, or Spiritual Administration, is the state’s administrative governance of religious observance. The Spiritual Administration of Muslims of the Caliphate, headed by the Sheikh al-Islam (equal in status to the Caliph), oversees all spiritual matters of religious observance.

Ijma is the consensus opinion of the fuqaha; some madhhabs recognize ijma as a source of fiqh.

Ijtihad – methods of rational interpretation of fiqh.

Iqtisad is an Islamic economy, meaning that it is not only the economy of an Islamic country, but such an economy must be organized on Islamic principles, that is, it must comply with Sharia and proclaim Islamic political economy as its basis.

Imam or Rahbar is the supreme leader of an Islamic state or, more narrowly, an Imamate.

Imamate — historical states within the Islamic world, based on the concept of the imam as the source of religious and supreme authority in the state, focusing on the most stringent interpretations of Sharia; one could say that these were states of ideological utopia with a doctrine of continuous expansion.

Imamate is the doctrine of the Islamic state, which is based on the concept of the Imamate as the religious leadership of the head of state, power is distributed from the clergy, the state prepares Muslims for the future life under the shadow of a single leader.

Islamat is a state based on the Islamic national form of government, capable of modernizing social life and state institutions, creating new forms of social relations that take into account the tradition and experience of the people, as well as the achievements of human thought (and not only within the framework of Islam).

Islamism, in the Islamic understanding, is an ideology and practical activity aimed at creating conditions in which the problems and contradictions of society and the state where Muslims live will be resolved exclusively through the use of Sharia.

Islamism in the Western understanding in a narrow sense is the ideology of Islamic fundamentalism as a theory and jihadism as a practice of implementing the ideas of fundamentalism.

Islamism in the Western sense is a broad spectrum of religiously motivated ideologies in the Islamic world, ranging from modernism to traditionalism.

Islamism, in the Islamic understanding, is an ideology and practical activity aimed at creating conditions in which the problems and contradictions of society and the state where Muslims live will be resolved exclusively through the use of Sharia.

An Islamist in the Islamic sense is a person who studies Islam.

An Islamist in the Western sense is a synonym for a jihadist, a supporter of the ideology of Islamism and jihadism.

Islamocracy is a form of government that Westernized countries are seeking to build in the Islamic world, drawing on global experience and a certain part of tradition, and which embodies the spirit of Islam.

The Islamic Arab and People’s Conference, or Green (Islamic) International, was founded in 1991 in Khartoum (the capital of Sudan). Its main adversary is the Western world. The organization’s organs are the Permanent Council (50 members, one representative from each country) and the Provisional General Secretariat as the executive body.

Islamic legality – all members of an Islamic society are subject to the law established by Allah.

The Islamic national form of government is a form of government in the transforming modernist national states of the Islamic world, based on traditional modernized institutions of power that play a complementary role to the leading role of the state, arising from the religious union of the state and society and having Islamic revival as its ideology.

The Islamic national form of government (another option) is a form of government within the framework of Islamic civilization, based on the harmonious combination and complementarity of the national tradition of world order and governance and the picture of the world of Revelation in the Quran, which prescribes the structure of Islamic statehood on the principles of observing covenants and following the path.

An Islamic nation is a community that developed within the framework of a nation-state as a religious unity of a corresponding cultural type. An Islamic nation realizes itself within an Islamic state.

The Islamic political system is a set of political institutions and mechanisms for their interaction regarding public interests and the expression of the will of large organized social groups of Muslims in accordance with Sharia and Islamic law. Sharia and Islamic law constitute the constraints of the Islamic political system in relation to the political system in general.

Islamic political economy is the views and ideas of Islamic scholars on the economic life of the Islamic world, which proclaims an original, distinctive doctrine for the organization of economic social relations, from which follows an Islamic interpretation of the economic principles of the life of Islamic society.

An Islamic republic is a modern state within the Islamic world, built essentially on the foundations of Western state institutions, even while adopting a religious model. Sharia plays a significant role in these states. The state proclaims itself a Muslim state.

An Islamic theocracy is an Islamist state in which the core and bearer of statehood is the social group of the Islamic clergy as a group possessing a monopoly on the knowledge of the message of Allah through the Prophet Muhammad.

The Islamic traditional form of government is a form of government in a number of states of the Islamic world on the path to building national forms of statehood, which includes an extremely cautious modernization of established institutions of power and takes into account, to an extremely large extent, the existing system of institutions of power and the balance of interests.

The Islamic legal tradition is a tradition that immediately and completely supplanted all other forms of law and legal consciousness among peoples who adopted Islam. Currently, there is a heated debate within Islamic civilization about the possibility of modernizing Sharia law in the new conditions of historical development.

An Islamic federation is a union state within the Islamic world, based on the contractual nature of power, a union of emirates (which can also be called states), and a periodic change of the head of the union (declared or actual).

The Islamic form of government is a system of state institutions in an Islamic state in which these institutions are built on the basis of the doctrine of Sharia, embody democracy and provide guarantees of righteous governance for Muslims.

The Islamic form of government is a number of modern states in the Islamic world, to varying degrees within the Islamic world, as well as concepts of state structure, based solely on a religious understanding of public life and, consequently, the complete subordination of statehood to the requirements of Sharia as a formulated doctrine that is not subject to revision over time.

Islamic civilization is a global cultural civilization that arose historically as a result of the Revelation of Allah as a message of Truth through the Prophet Muhammad and continues to perceive itself as a single, integral community of peoples, a civilization built on the single religion of Islam and the resulting model of behavior in the political (more broadly public) and private spheres of Muslim life and methods of economic management in the Muslim world.

Islamic economic doctrine is a broader concept than Islamic political economy. It can also be considered the theoretical foundations of Islamic economics, the views and ideas of Islamic scholars on the entire spectrum of economic institutions in the Islamic world and their specific interactions. These views include such principles as wealth and profit are from Allah, private property is sacred, paternalism, the social role of zakah, the prohibition of riba (interest) in banks (i.e., Islamic banks), social peace between entrepreneurs and workers, and free public utilities. Currently, the doctrine has not been systematized or formulated; it is still being actively developed.

Islamic Revolutionary Armed Forces of Liberation – Armed forces (regular personnel troops) of the Islamic state.

Islamic clericalism is the strengthening of the influence of Islamic clergy on the public life of a Muslim state.

The Islamic Revolutionary Committee is the lowest level of municipal governance in a Muslim totalitarian theocracy. During the Soviet occupation of Afghanistan, Islamic Revolutionary Committees proved to be the ideal form of governance for the Afghan mujahideen.

The Islamic cultural-historical world is a cultural system based on Sharia that emerged in the wake of the explosive spread of Islam, giving rise to Islamic statehood.

The Islamic World Front against Jews and Crusaders was founded in 1998, led by Osama bin Laden as chairman of the executive committee. It conducts military operations worldwide, and its fighters are Afghan mujahideen.

Islamic modernism is an ideology of Islamic revival in a moderate interpretation through the transformation of national states of the Islamic world, taking into account the achievements of world thought, the incorporation of local traditions of governance, and the desire to build a state on democratic principles.

Islamic traditionalism is the ideology of Islamic revival in a moderate interpretation through the transformation of national states of the Islamic world based on the preservation of the historical legacy of statehood and a certain use of the experience of other states.

Islamic administrative law is a system of legal norms that regulates relations between Muslims and governing bodies regarding the participation of Muslims in government and in connection with the provision of state services for the protection and implementation of citizens’ rights.

The Islamic Renaissance is the modern stage in the development of Islamic Arab political philosophy, the rise of the Islamic world, the revitalization of Sharia law and Islamic governance, and the strengthening of Islamic countries on the international stage, beginning generally in the 1950s–1970s. By the early 1990s, Islamic ideology had generally triumphed over pro-Western leftist forces and nationalism in Muslim countries.

Islamic state law is a system of legal norms, the possible implementation of which is built within an Islamic state. It embodies the spirit of Islam as the Revelation of God, upon which a unified system of state institutions of the Ummah is built, guided by the path of God and the will of Muslims and their leaders for the best governance within the united family of the Ummah and which is the duty of every Muslim.

An Islamic state is a structural form of development of an Islamic community at a specific historical stage, radically altered by Allah’s revelations to the Prophet and creating a new statehood based on the truth of Islam, embodying the spirit of Sharia (fiqh) and regulating relations within such a state based on the principles of the Islamic world order as a comprehensive religion. An Islamic state includes:

1. Islamic national form of government.
2. Islamic federation or unitarism of a small state.
3. Democratic political regime.

Islamic civil law or muamalat is a system of legal norms that regulates the economic and private life of Muslims in an Islamic state, built on the basis of the Islamic worldview.

Islamic international law or siyaf is a system of legal norms that regulates relations between the states of the Islamic world and the Ummah as a whole with other civilizations and peoples, according to the doctrine of which relations between the states of the Islamic world should be equal and allied.

Islamic political and legal doctrine is a system of views and ideas about the political side of Islam and the Islamic state, formulating the main provisions of Islamic legal doctrine, based on the Revelation of Allah as a source of law, subsequent interpretation by mujtahids and the development of governing practices.

Islamic enlightenment is often considered part of the Islamic revival, but it is more appropriate to single out a separate stage in the development of Arab Islamic political philosophy, the period from the mid-19th century to the graying of the 20th century, after which came the Islamic revival, and pre-late medieval Islamic Arab political philosophy, characterized by the emergence of an independent intellectual elite in the Islamic world, familiarity with Western ideas, and gave rise to several figures of Islamic political philosophy.

An Islamic traditional state is a traditionalist state found in a number of countries in the Islamic world, proclaiming an uninterrupted tradition of statehood under conditions of extremely cautious modernization by the ruling elite, primarily preserving the established balance of interests and the system of governing institutions. An Islamic traditional state includes:

1. Islamic traditional form of government.
2. Autonomy is permissible in a unitary state.
3. Authoritarian political regime.

Islamic judicial law is a system of legal norms that regulates the structure of the judicial system of an Islamic state, the right to legal proceedings in the courts of the state and the procedure for executing court decisions.

Islamic legal proceedings are legal proceedings according to fiqh.

Islamic criminal law or ‘uqubat is a system of legal norms that regulates relations related to the protection of the Islamic state and the ummah from unlawful attacks.

Ihtisbarat is an Islamic special intelligence service.

The Western legal tradition is the bourgeois transformation of medieval European states under conditions of accelerated accumulation of resources through colonies and the rapid formation of a bourgeois class, which forced kings to carry out reforms to create conditions for intense economic competition and universal guarantees of equal rights.

The Western form of government is the methods and forms of governance of a Western democratic state that ensure relative control of the civil society of a political nation over the state based on the doctrine of respect for human rights by the state.

A Western democratic state is a form of government among the peoples of Western civilization that act as a single community (league) of democracies in the world community and, by virtue of their democratic nature, consider pursuing a global line towards universal democratization (Westernization) according to the Western model.

Western political and legal doctrine and Western doctrine of state and law are the main political and legal doctrine of the Western world (civilization), built on the idea of democracy and the entire system of state institutions and the functioning of Western democratic states that follows from this idea.

A Qadi is a Sharia judge who hears cases alone, even at the appellate level; collegial hearings are only permitted in the Supreme Sharia Court.

Kalam is one of the Sharia sciences, Muslim theoretical theology.

A kafir is an infidel, a non-Muslim in Islam; in jihadism, it is an enemy of Islam, represented by an occupier. In Chechnya, this was the Russian troops, according to the militants.

Qital is the use of military force by an Islamic state for defense.

Qiyas is a conclusion based on analogy in ijtihad.

Classical or medieval Arabic Islamic political philosophy—Arab Islamic political philosophy from the emergence of Islam until the 15th century—produced several figures of global political thought and developed into a coherent system. The medieval development of Islamic political and legal thought can be summarized as follows: Islamic society is possible in the context of urban civilization, not tribal society; the transition from it to civilization became possible with the emergence of Islam; the best form of human collective life is a virtuous state, which is precisely the Islamic state; sovereignty belongs to Allah over this world; the ruler must think about public affairs due to his responsibility to Allah; politics must take into account the people’s desire for political community; jihad is the duty of Muslims to protect the Islamic form of government.

Classical Islamic political and legal doctrine—a system of views and ideas about the Islamic state, a coherent doctrine that emerged in the Islamic world by the 14th century and remained unrevised for several centuries—consisted of the necessity of the existence of only one truly Islamic state, the Caliphate, as the home of all Muslims on Earth. All other states were viewed as temporary developments on the path to the Caliphate, and Sharia law, without any innovations, was recognized as the primary source of law.

The Constitutional Shura is a special constitutional body that examines constitutional disputes for any inconsistencies and refers these disputes for resolution to a special judicial body – the Constitutional Plenum of the Supreme Court.

Kingdom – a modern state within the Islamic world, essentially based on the Western model of a monarchical hereditary dynasty with a strong influence of Sharia, the dynasty being supported by the state apparatus, the clergy, and influential tribes.

Kufr is unbelief, non-recognition of Islam, or deviation from its norms.

Mazar is the tomb of a saint in Islam.

A madhhab or school of thought is a legal school of fiqh, a system of methods and doctrinal understandings of a school of fiqh, developed historically through the mujtahids’ understanding of the Quran’s rulings and the qadis’ practice of fiqh law enforcement. Today, only four madhhabs remain among Sunni Muslims: Hanbali, Maliki, Hanafi, and Shafi’i. The Dhahiri madhhab has virtually disappeared. The Ja’fari madhhab is widespread among Shiites.

The Hanafi school of thought was founded by Imam Abu Hanifa, who was born in 699/80 in Kufa and died in 767/150 in Baghdad. The word «Hanif» means «knowledgeable» or «correctly believing» Muslim, while «Abu Hanifa» means «Father of Muslims with correct faith.» The primary method by which this school of thought rendered its legal rulings was a clear hierarchy of rulings by the authorities of this school. Abu Hanifa orally transmitted his entire legacy and knowledge to his students, who recorded and systematized them. The Hanifa school was encouraged by the Abbasids, who were interested in the legal foundation of the state. This school received state status in the Mongol and Ottoman Empires. Many modern Muslims today follow this school of thought.

– The Maliki madhhab was founded by Imam Malik bin Anas al-Asbahi, who was born and died in Medina in 93/711 – 179/795. The Maliki legal school found many followers among Muslims in the West, Spain, and North Africa.

The Shafi’i madhhab was founded by Imam Abu Abdullah Muhammad bin Idris ash-Shafi’i (150/767 – 204/802). He was born in Ghazza and died in Egypt. The imam took the name «ash-Shafi’i» in honor of his great-grandfather, who was a companion of the Prophet Muhammad. This madhhab was very popular in Egypt in the early ninth century. In Transoxiana and Iraq, the Shafi’i madhhab rivaled the Hanafi madhhab in popularity. Today, Shafi’i Muslims comprise 80% of Kurds, Muslims in Southeast Asia, and the majority of Arabs in the Middle East.

The Hanbali madhhab was founded by Imam Abu Abd Allah Ahmad ibn Hanbal, who was born and died in Baghdad (164/780 – 241/855). This school had several sects, each based on different opinions, interpretations, and doubts regarding Ibn Hanbal’s fatwas. The differences lay in the transmission of his conclusions. The Hanbali madhhab had a fundamental theoretical basis. It did not gain widespread popularity and is currently the dominant school in Saudi Arabia and Qatar.

The Ja’fari madhhab , founded by Ja’far al-Sadiq, became widespread among the Shi’ites of Afghanistan, Iran, Iraq, and Azerbaijan. It only became the leading Shi’ite madhhab in the 18th century, and the Ja’fari school gained recognition among the Sunnis. The Ja’fari madhhab differed from the Sunni schools in its rejection of the idea of closing the «gates of ijtihad.»

Maktab is a primary Muslim school.

Mahalla is one of the forms of social organization of Islamic society, it is an association of the community of an urban quarter of an eastern city.

Mahdi is the messiah, the preacher of truth on the eve of the Day of Judgment, but if in the imamate Mahdi takes the place of the imam, then in the caliphate he is simply the main religious leader, not even canceling the powers of the sheikh ul-Islam.

Meghkeme — an Islamic court consisting of a qadi and two Muslims or a customary court, headed by a representative of the state administration and elders.

The Mejlis is a representative body that decides issues of constitutional and legal significance.

The Majlis al-Bay’ah is the highest representative body of the Caliphate or, in a Muslim country, the body that concludes a bay’ah with the elected ruler regarding the terms of rule. While the Majlis al-Ummah may be composed of higher Majlises or elected by all Muslims, the Majlis al-Bay’ah is an expanded version of the Majlis al-Shura.

The Majlis al-Da’wa is the highest representative body, essentially the upper house of parliament, providing a check and balance to the Majlis al-Shura. It is elected either by the parliaments of Islamic lands or by Muslims in administrative-territorial units and functions, for example, as a supreme court for officials.

The Majlis al-Ulema is the highest body of the clergy, or more broadly, of clergymen, as a body that verifies the compliance of laws with the spirit of Islam and the norms of Islam and Sharia. Frankly speaking, it is a professional clerical body, so to speak, including representation from spiritual authorities not affiliated with the church. The most important thing is the spiritual authority of these individuals, their supreme power in society, which allows them to make such decisions.

The Majlis al-Ummah is the universal representative body of Muslims with the supreme constituent authority to amend the highest legal law given to Muslims, that is, Sharia. Sharia is the supreme law, but it is understood by Muslims, and this understanding changes according to historical times. Furthermore, Sharia was originally given as a law to regulate the life of society in the early centuries of the Hijra. Only the universal body of Muslims, in accordance with the Islamic spirit and the laws of Allah, can amend Sharia as the law of all Muslims.

The Majlis al-Sharia is a consultative representative body of Muslim scholars. The Majlis al-Sharia can submit its proposals to government bodies. Its members include recognized, eminent mujtahids, but it should not replace official government bodies. It can be stated that the Majlis al-Sharia can serve as a body for drafting amendments to Sharia law.

The Majlis al-Shura is the supreme legislative body of a caliphate or, in a Muslim country, a parliament in the Western sense, elected for four to five years. The Majlis al-Shura is a unicameral parliament, typically found in a unitary state; federalism is difficult to accept as dividing Muslim unity, since the Quran recognizes no national divisions, only religious affiliation.

The Majlis al-Amir is a consultative body of the emirs as heads of emirates (regions) in the Caliphate and a Muslim country. It is, once again, an advisory body, making proposals to the head of state to improve its work, but it is not a decision-making body. Although it is possible that the Majlis al-Amir could replace the Majlis al-Da’wa or act as a third chamber of parliament, this is unlikely.

Madrasah is a secondary or higher Islamic spiritual educational institution.

Millet is a community of non-believers in an Islamic country, organized in a certain way, the head of which was represented at the head of the Islamic state.

The mission of Islam is to create a man of Islam in accordance with the plan of Allah.

Modernist Islamic political and legal doctrine is a system of views and ideas about the Islamic state, which has been the subject of heated debate and ideological clashes since the second half of the 20th century, the main postulate of which is moderation in the political and legal practice of Islam, recognition of the need to build nation states within the Islamic world, and the need for pluralistic coexistence of various sources of law.

Mostazafin (disadvantaged) – mostakbarin (privileged) – a dichotomy between the oppressed and the imperialist (countries) in the Islamic revival. Mostakbarin is one of the enemies of Islam from the perspective of social justice.

A mujtahid is an institution of Islamic theological scholars who hold the following titles (laqab) from the superlative degree: source of imitation (marjah-at-taqlid), grand ayatollah (ayatollah al-udl), sign of God (ayatollah), proof of Islam (hojat al-islam). They have the right to make independent judgments in fiqh.

Mudir or hakim is the governor of a vilayet in the East.

A munaqafin, or hypocrite, is the most dangerous enemy of the Islamic state in Islamic political and legal doctrine. In jihadism, munafiqs are representatives of the Muslim state. In Chechnya, militants considered local administration officials and law enforcement agencies to be munafiqs.

In Islam, a murtad is an apostate, an enemy of Islam. In jihadism, it refers to law enforcement officials in a Muslim state. The difference from the concept of a munafiq in jihadism is that an murtad is a member of the security forces, while a munafiq is a member of the civil service. According to jihadists, an murtad serves taghut, not a truly Islamic state, and thus violates the Muslim duty.

Murtazikaty are the personal praetorian Islamic (Sharia) guard of the imam.

Murshid-murid – teacher-student in Sufism.

Muslim culture is a system of tradition, heritage, and existence of Muslims in the world through the creation of themselves in the surrounding world along the path indicated by Allah in Islam.

Mutawwa or al-mutawa are assistants to the muhtasibs, similar to vigilantes, and in some modern Muslim states – religious police.

Muftiate is the spiritual administration of Muslim affairs in a certain territory or state.

Mukhabarat is the Islamic special service for internal security.

A muhajir is a person from emigration who returned to his homeland to take part in the struggle for its independence.

Muhammad Abduh (1849-1905) was a student of al-Afghani and, along with al-Afghani, the second key figure of the Islamic revival. He was born in Egypt to a Turkmen family. He received his early education in a madrassa, memorizing the entire Quran. His father then sent him to Tanta to study at the school of the Sufi Sheikh Said Badawi at the Ahmadiyya Mosque. After graduating from this school, Muhammad Abduh entered Al-Azhar University in Cairo. After completing his studies in 1394 (1877), he received a doctorate and began teaching at the university. In addition to religious studies, M. Abduh was also interested in other sciences and was involved in socio-political activities.

His articles appeared in many Egyptian periodicals, most frequently in the newspaper Al-Ahram. During these years, he met Jamal ad-Din al-Afghani.
For his participation in the rebellion of Orabi Pasha in 1300 (1883), Muhammad Abduh was exiled from Egypt and lived in France. Together with Jamal ad-Din al-Afghani, he published the newspaper Urwa al-Wuska there, which was popular among the Muslim intelligentsia. In 1302 (1885), he moved to Beirut, where he wrote several books. After returning to Egypt in 1305 (1888), he held high government posts and lectured at Al-Azhar University in Cairo. Muhammad Abduh then became the Grand Mufti of Egypt. He succeeded in reforming the educational system at Al-Azhar.

Abduh emphasized that Muslims must submit only to the will of Allah. He rejected any claim to religious authority, infallibility, or the role of intermediary between Allah and the people, or the enactment of legislation comparable to Sharia. However, Abduh by no means preached blind faith. He believed that just government rested on three principles: freedom, the Islamic principle of consultation, and the rule of law. Freedom is the right to bear certain responsibilities. Without it, there is no state, which cannot exist without political rights and responsibilities. Another foundation of existing authority is the principle of ash-shura (consultation), which Abduh considered synonymous with democracy in the conduct of state affairs and the antithesis of despotism. According to Abduh, ash-shura presupposed the existence of a special representative body that advises the ruler, limits his omnipotence, and protects him from making erroneous or subjective decisions. Abduh insisted that these functions should be performed only by knowledgeable members of the ruling elite. Abduh considered law to be another essential attribute of just government, viewing it as the criterion of social progress, civilization, and freedom. He believed that law could only be fully effective under conditions of political freedom, and for this to be true, it must be an expression of common interests.

Muhammad ibn Abd al-Wahhab (1703-1792) was a major figure in late medieval Arab Islamic political philosophy. Muhammad ibn Abd al-Wahhab did not consider his teachings to be anything new. His teachings constituted a specific political and legal practice, later successfully applied in Arabia. The doctrine of Wahhabism was based on Ibn Taymiyyah’s ideas on three key issues:

1) without Sharia, the state slides into lawlessness and tyranny;

2) only the Quran and Sunnah should be recognized as the authentic sources of Islamic regulations and laws; therefore, a return to the order that existed during the life of the Prophet Muhammad and the life of the first three generations is necessary;

3) all claims about the possibility of a mystical union of man with God and the ecstatic aspects of practical Sufism (zeal, psychophysical training) must be rejected as un-Islamic.

The foundations of Wahhabism can be summarized as follows: all objects of worship except Allah are false, and those who worship them deserve death; most people do not believe in one God and seek divine favor by visiting the tombs of saints, which is false; mentioning the names of prophets, saints, walis, pirs, and angels in prayers is a sign of polytheism, since only Allah knows all human secrets; one cannot assert anything unless it is based on the tenets of the Quran and Sunnah; interpreting the Quran through rationalistic or symbolic-allegorical interpretation is prohibited; on the Day of Judgment, Muhammad will receive permission from Allah to pardon him (Sunnis believe he has already received such permission). However, this can hardly be considered anything new; these are the fundamental tenets of the Hanbali madhhab. What was new was that the Wahhabite Islamic state was charged with the duty of spreading the faith, and therefore the clergy was asked to enter into a political alliance with the state authorities to spread the faith. It was on this alliance that the Kingdom of Saudi Arabia was built.

Muhammad Abu Hamid al-Ghazali (1058-1111) was a scholar of the Shafi’i school who adhered to classical Arab Islamic political philosophy. He developed the idea of the necessity of an alliance between the imam and the sultan. Al-Ghazali’s theory of the imamate was based on three key principles: the authority necessary to maintain order in the state; the caliphate symbolizing the unity of the Muslim community (ummah) and its historical practice, with the sultanate becoming an integral part of the caliphate; and the functional and institutional authority of the caliphate being based on Sharia. Al-Ghazali believed that the imam, as the highest authority, could be appointed either by the prophet, the ruling caliph, or a person who wielded actual power. After the actual appointment of the caliph (imam) by the sultan, his candidacy was approved by electors from among the ulema and faqih, and then announced in the mosques. However, even though the sultans actually appointed the caliphs, they were required to recognize their authority, for «faith and power are twins.» Moreover, the sultan’s authority was considered legitimate even if he failed to observe the norms of Sharia, as long as he recognized the caliph’s authority.

Al-Ghazali proceeded from the premise that establishing order and security provides a favorable framework for the functioning of the Islamic institution. For this reason, he was less strict about the caliph’s qualities related to his secular functions. Thus, the caliph no longer symbolized or signified the unity of the caliphate, but was merely an integral part of it. The imam’s authority was based on the sultan’s, and the latter’s authority was sanctified by the imam’s. The sultan, as a constituent authority, recognized the caliph’s institutional authority. Thus, it was the sultan, as a secular ruler, who ensured the unity and power of the Islamic state. The connecting link between the sultan and the imam, according to al-Ghazali, was to be the faqihs and ulema. Their political functions included interpreting Sharia in accordance with historical realities, justifying the legitimacy of the caliph appointed by the sultan, and issuing religious-legal decrees (fatwas) embodying the functional authority of Sharia. Al-Ghazali’s approach was to have the sultan fulfill the secular functions of the caliph, while the ulema and faqihs fulfilled the religious-ideological functions.

Thus, for al-Ghazali, a unified Muslim state, or caliphate, encompasses the authority and power of the caliph, sultan, and ulema. These three elements constitute the caliphate’s political authority, whose existence depends on maintaining a balance between these elements. A unified Muslim state presupposes their close union while maintaining their obligatory autonomy.

According to al-Ghazali, the best rulers and politicians were prophets—messengers of God, who understood both the exoteric (manifest) and esoteric (concealed) aspects of all problems. As for caliphs, sultans, and other rulers, they were familiar only with the exoteric (manifest) manifestations of the functions of the state. Therefore, al-Ghazali attaches great importance to the role of scholars in governing the state. They are knowledgeable in religious sciences and are bearers of the legacy of the prophets. The faqihs and ulema play a significant role in the state hierarchy and act as advisors to rulers. This may reflect elements of the philosophy of ancient Greek thinkers, who envisioned an ideal state led by wise philosophers. Similar principles are found in the philosophy of al-Farabi.

Al-Ghazali was a supporter of strong rulership, but at the same time, he was an opponent of tyranny. A ruler’s strength and decisiveness must be combined with the noble quality of justice. Justice itself draws its roots from the Divine religion. Therefore, religion is the foundation of a ruler’s worldview, and he is obliged to make every effort to protect it. If a ruler is just, then the people and the state itself prosper. If not, then decline and regression follow.

A ruler’s injustice may manifest itself in injustice toward himself. If he repents before God, he may be forgiven by Him, as this type of injustice does not affect the people. However, injustice can also be committed against the people, allowing the strong to abuse the weak, the rich to abuse the poor. Allah will not forgive such injustice. All rulers are obligated to remove unworthy individuals from public office and recruit righteous and learned individuals. Combating any form of injustice is the primary task of any ruler.

Muhammad Rashid Rida (1865-1935) was a scholar of Islamic education who argued that the elected caliph is bound by the principles and norms of Islamic law. Examining the relationship between the caliph and the consultative council, he emphasized that the latter has the right to re-elect the head of state if the latter fails to consult the council, forces Muslims to act contrary to Sharia law, or violates these norms themselves. According to Rashid Rida’s concept, the caliph’s secular powers are somewhat narrower than in classical theory, essentially limited to the sphere of executive authority. The caliph’s purpose is to protect the faith and enforce Islamic law.

In 1922, the scholar published his famous treatise, «The Caliphate,» or «The Great Imamate,» which is still considered a fundamental study of Muslim state theory. He advanced the most compelling theoretical and religious arguments in favor of the revival of the caliphate. In his book, Rashid Rida sought to restore the true concept of the caliphate without the distortions and falsifications introduced to please short-sighted rulers. On this basis, he demonstrated the superiority of the caliphate over other forms of government, contrasting the Islamic legal institution of consultation with European democratic principles.

Rashid Rida asserted that the elected caliph is bound by the principles and norms of Muslim law. He did not recognize the caliph’s independent, uncontrolled right to ijtihad and therefore insisted on the limited power of the head of the Muslim state, who can make important political and legal decisions only after consulting with the most prominent representatives of the community, whose opinion is final. Rashid Rida emphasized that the consultative council has the right to re-elect the head of state if he fails to consult the council, forces Muslims to act contrary to the requirements of Sharia, or violates these norms himself. In the spirit of the orthodox view, Rashid Rida believed that the caliph has no authority over Muslims in religious matters and is not his prerogative to interpret Sharia for them.

Mukhtasibs are the Islamic moral police.

Mukhtasibs are the secret surveillance of the head of the Islamic state.

Naib is the deputy head of the Islamic leadership.

Naib is the head of the naibate.

Naibstvo is a province in the imamate.

Nask is an institution that abolishes, from a legal point of view, the application of Sharia norms.

Nisf is a workshop in an Islamic city as an association of artisans.

New Islamic politics or human waves – waves of fanatical suicide bombers on the offensive.

The New Islamic World Order is a doctrine developed since the early 1960s in the Islamic world, a system of fundamental views of the Islamic world as a coherent community on the system of international relations as desirable from the point of view of the Quran and Sunnah, a system of acceptable and permissible behavior of states in the sphere of human coexistence on Earth until the Day of Judgment.

Parallel Islam – Sufism in the USSR.

Pasdars are volunteer assault forces of the Islamic Revolutionary Guards (analogous to the SA assault forces in Germany, and the Islamic Revolutionary Guard Corps in Iran in the first stage).

Late medieval Arab Islamic political philosophy—Islamic political philosophy from the 15th century to the mid-19th century—is characterized by complete stagnation and a reworking of the achievements of the classical period, producing only the figure of the founder of Wahhabism, who was more of a practitioner.

A patronized religion is a religion in Islamic countries that is patronized by the head of the Islamic state. Members of the community had no political rights, could not own land, and paid a poll tax like non-believers, but were otherwise free.

Righteous rule is the rule of the head of an Islamic state, under which all Muslims feel themselves living according to the laws of Allah and are happy in their existence, carry the light of Islam, and the ummah develops in peace and harmony among all.

Paradise is a matter of discretion in Islamic legal doctrine.

Republics are modern states within the Islamic world, based on the Western model of democracy and the rule of the people as a source of law, but in reality, the state authorities strive to build a secular state, headed by a pro-Western political elite, minimizing the influence of Sharia, but relying on the army and the state apparatus.

Sadaqah is Islamic charity.

Salafiyya is a global trend in the political practice of Islam, the meaning of which lies in the idea of the immediate construction of an Islamic state and the spread of Islamist ideas throughout the world as the duty of every Muslim.

Seyyid is the leader of an Islamic tribe.

Sunnah is the actions and sayings of the Prophet Muhammad, one of the sources of fiqh.

Sultanate — historical and modern states within the Islamic world, the distinctive features of which are a long uninterrupted tradition of rule by a dynasty of sultan among a given people, these states are states of the traditionalist type.

The Sultanate is part of the union state of the Caliphate as a constitutional federation, headed by either a sultan from a local hereditary dynasty or an elected official.

Sufism is Islamic mysticism or a branch of spiritual practice in Islam (analogous to Hesychasm in Orthodoxy). Its essence lies in the idea of personal devotion to God through the realization of the fullness of one’s presence in the divine essence of a teacher who has a direct connection with Allah, achieved through the spiritual transformation of the Sufi. Sufism is an unorthodox teaching in Islam, existing in the form of orders, characterized by mysticism—that is, the attainment of Allah through ecstatic union with Him in mediation, a complex of specialized exercises.

A tagut is a leader of a state (usually Muslim) who pursues an anti-Islamic policy, according to jihadist views. He is considered one of the enemies of the Islamic Republic, as proclaimed in Iran. In Chechnya, the head of the republic, Ramzan Kadyrov, was considered one.

Taqi ibn Taymiyyah (1263-1328) was a scholar of the Hanbali school of thought who adhered to classical Arabic Islamic political philosophy and was the main proponent of this idea. Hanbal-Taymiyyah-Wahhab constitute the «classic» of Wahhabism. He called for a return to the simplicity of concepts and practices of early Islam and the rejection of all unacceptable innovations. Ibn Taymiyyah taught that the fight against Christians and outright heretics is not the only goal of jihad, since truly pious Muslims are obligated to resist the authority of those rulers who claim to be Muslim but do not adhere to religious laws in all their strictness. The greatest sin a Muslim can commit is to abandon jihad.

Sheikh ul-Islam Ibn Taymiyyah spent his entire adult life deeply concerned about the current situation in the Muslim world and constantly sought ways to overcome this catastrophe and restore the former glory of the Islamic world order. Naturally, the foundation of his worldview was the Islamic religion, which he saw as the only path to salvation in all areas of life. However, in the centuries following the Prophet Muhammad, it ceased to be a monolithic teaching and fragmented into numerous sects and movements. This fragmentation offered no chance for an Islamic revival. Therefore, Ibn Taymiyyah saw a way out of this situation in a return to the unified and monolithic religion that existed in the early period of Islamic history. A staunch supporter of this idea, he wrote numerous ideological and legal works in which he subjected the entire Islamic heritage to a detailed analysis. Seeing sectarianism as a threat to the existence of the Islamic religion and the unification of the people around a religion free from later innovations, Ibn Taymiyyah harshly criticized the views of unorthodox teachings.

All domestic and foreign policy failures, military defeats, and sectarianism arise from deviations from the laws of the Divine Sharia. Therefore, Ibn Taymiyyah insists on building state systems solely on the example of the governance of the Prophet Muhammad and the first four caliphs. He considers this period to be the ideal and true Islamic governance.

The primary functions of the state are to ensure the rights of citizens based on divine laws and to eliminate social evils. First and foremost, Ibn Taymiyyah believed that the state is obligated to ensure the material well-being of its citizens. It must ensure the payment of various social benefits, wages, and the creation of conditions for business relations between citizens. The state must also ensure the construction of public and healthcare facilities, roads, bridges, and so on.

According to Ibn Taymiyyah, the most important task of the state is to ensure the country’s economic prosperity. To achieve this, he believed it was essential to grant citizens all necessary economic freedoms. This should lead to an increase in all economic indicators of the state and the well-being of its citizens. Ibn Taymiyyah believed that it was unacceptable for the state to restrict citizens’ business activity, except in cases where such restrictions do not contradict Divine law.

Another important function of the state according to Ibn Taymiyyah is to enhance its defense capabilities and repel external aggression. However, in the event of war, religious morality must be followed and the lives and dignity of civilians must not be infringed upon. War must be waged only against the armed forces of the enemy.

To implement all the above mentioned tasks, it is necessary to constantly conduct ideological work with the country’s population and prepare them to carry out these tasks.

Ibn Taymiyyah considered strengthening the moral and ethical foundations of society to be the foundation, the fundamental basis for solving all other economic, political, and military problems. According to his beliefs, morality, built on the ideals of religion, sincere service to God, the alignment of each citizen’s ethical standards with its provisions, adherence to what is permitted, and abstinence from what is reprehensible, constitutes a natural barrier to various offenses in all spheres of social life. The state must take all necessary measures to prevent sinfulness and immorality in society and educate its citizens in the spirit of service to God.

Taqlid is the cultural heritage of Islam.

Takfir is an accusation of unbelief in Islam.

Talib is a madrasah student.

Tariqah (path) is a Sufi brotherhood in the form of an order; wird is a part of tariqah. More broadly, it is a type of brotherhood, a type of its spiritual practice.

Tasawwuf is one of the Sharia sciences, Islamic ethics.

Tawhid is monotheism in Islam, a symbol of faith.

Tawhid economics is a specific interpretation of Islamic economics that emphasizes small-scale production as the economic policy of an Islamic state.

Tafsir is one of the Sharia sciences, the science of interpreting the Quran.

The total character of Islam is the comprehensive regulation of all aspects of a Muslim’s life.

Moderate or «enlightened» Islamic fundamentalism is an interpretation of Islamic fundamentalism in which the creation of an Islamic form of government is possible through legal parliamentary means, Westernized countries are considered sinful, but Muslims and propaganda can still bring them back into the fold of Islam.

The Ummah is a worldwide community of Muslims, regardless of country of origin.

Urf is one of the normative sources Islamic law, representing traditionally prevalent opinions in Islamic society. The application of urf in Islamic law is possible when there is no literal evidence in the Quran.

Ustaz is a Sufi teacher in a jamaat.

Ushr is a Sharia tax on crops.

Fay is the spoils of war.

Falsafa — literally philosophy, one of the two groups of sciences in the Arab Caliphate, passed down from antiquity, divided into theoretical (exact, natural, music, medicine) and practical (economics, ethics, etc.).

Fedai are Islamic suicide bombers.

A fatwa is the opinion of fuqaha on religious and political issues. It is one of the debatable sources of fiqh. Fatwas are a normative source of Islamic law, serving as the opinions of eminent scholars of the Islamic world, recognized as authorities, on specific issues under consideration, initiated by Islamic judges (qadis) or at the request of the Majlis.

Fiqh is Muslim law, a system of legal norms derived from the interpretation of the Quran and part of the broader concept of Sharia, regulating all aspects of Muslim life. Sunni fiqh consists of four schools, which developed primarily in the early Middle Ages. Therefore, fiqh is essentially medieval Muslim law. It should be noted that fiqh is a comprehensive legal system, regulating a wide variety of legal conflicts unique to medieval society. Currently, there is widespread discussion within modernism about the need to reform fiqh.

Firman is a decree of the head of an Islamic state.

Fundamentalist political and legal doctrine is a system of views and ideas on the theory of building an Islamist (jihadist) state, which has evolved into a rigid and coherent doctrine that brooks no criticism. The essence of this doctrine is Islamism as a global ideology for building an Islamist state anywhere in the world where there is an Islamic community, based on an extremely strict understanding of Sharia and the proclaimed ideal of the state of the early caliphs. Essentially, this is the construction of a totalitarian religious state, where Islamism (jihadism) will replace the global messianic ideology (analogous to communism or fascism).

Futuwwat is a code of chivalric customs in Islam (for example, among the Pashtuns, “Pashtunwali”).

Futuwwat – the word comes from the Arabic «fata» – «noble youth,» «young knight» – and represents both a personal complex of heroism, inner dignity, and courage, and a social institution of the Islamic military aristocracy. Futuwwat as a personal quality was inherent in all prophets and chosen ones of Allah, as evidenced by the Quranic and the sayings of the Imams of the Ummah. As a social superstructure, futuwwat have always served as military orders, one of the forms of social organization in Islamic society . They guarded the interests of the Ummah, and in peacetime, they served as professional guilds and guilds, while in wartime, they mobilized into the shock columns of jihad.

Hajj is a Muslim pilgrimage to Mecca.

Hadiths are traditions about the deeds and sayings of the Prophet Muhammad.

Hakimiyyah is Allah’s supreme legislative authority over this world. Therefore, the enactment of Sharia laws is an appropriation of Allah’s will—everything is recorded in the Quran and other sources of Muslim law, whether recognized or rejected by a particular school of fiqh.

The caliph is currently the ideal ruler in Islam. In Islamic political science, there is debate about whether the concept of the caliphate is truly Islamic or whether it has nothing to do with Islam and is a historical experiment in the construction of the medieval Arab state.

The Caliphate is a historical state under the leadership of the Arab people, headed by the caliphs as the personification of central authority; the source of legislation was the rapidly developing Sharia of various madhhabs; the era of the highest flourishing and breakthrough of Islam, the Caliphate collapsed under the influence of internal causes of disintegration due to the inability to involve territories in the process of general state building.

The Caliphate is a modernist doctrine of a unified Islamic state as the duty and obligation of every Muslim, based on the principle of «one heaven — one truth — one faith — one caliph.» This state derives from the sovereignty of Allah over Muslims, the election of the caliph by the consent of all Muslims, and the federal nature of the union statehood of Sharia in its updated version.

Caliphate — in jihadism, the doctrine of a single Muslim state without limits to expansion, the duty of every Muslim to contribute in every way to increasing the power of the caliphate and the spread of the Islamic faith, the doctrine of jihad of the sword, that is, the armed path to the creation of a caliphate, is promoted.

Kharaj is a Sharia land tax.

Hezb Allah is the party of Allah, the basis of the ummah is religious unity, all Muslims are members of the party of Allah.

Hezb ut-Tahrir, or the Freedom Party, was founded in 1953 with the goal of a Great Islamic Caliphate, focusing more on a coup d’état by true Muslims. Its headquarters are unknown. The structure of the Uzbek branch includes: mutamad (chief leader), masul (head of the regional organization), musoid (assistant to the masul), naqib (head of the district organization), mushrif (cell leader), and doris (novice). The core element is the khalqa.

Hijra is the pilgrimage of the Prophet and his companions from Mecca to Medina in 622. The Muslim calendar begins with this event.

Hisbah is a public institution regulating and managing the process of implementing accepted norms of behavior in Islamic political and legal doctrine.

Hisbah is a special organ of state administration in an Islamic state, the main function of which is the interdepartmental administrative resolution of conflicts of law.

Khitassa are unemployed youth from Islamic countries who support Islamic fundamentalists and are the main striking force.

Sharia includes fiqh, kalam and tasawwuf, that is, a system of special comprehensive rules of conduct for a Muslim throughout his life.

Sharia is a normative and legal source of Islamic law, a comprehensive legal doctrine developed by Muslim scholars as a set of fundamental views on the Islamic state and the order of its functioning.

Sharia sciences are one of the two groups of sciences in the Arab Caliphate, created by the faqihs and ulema, and included such sciences as

• Fiqh.
• Kalam.
• Nahv is grammar.
• Kitaba is a secretarial art.
• Arud is poetry.
• Tarikh is history.
• Tafsir.

The Sharia Committee is a state body of the head of the Islamic state for the control of jamaats, a truncated version.

A shahid is a martyr for the faith in Islam, a form of religious practice and experience that can replace secular social and political experience. A shahid is not a suicide bomber or a kamikaze—that is a profoundly erroneous notion.

Shahidat is a form of religious life for a Muslim in the form of self-sacrifice in jihad for the sake of paradise in the struggle for faith.

Sheikh is a teacher-preacher in Islam or an aristocrat-nobleman in the East.

Shehada – all Muslims must worship Allah and obey His laws. It signifies the unity and supremacy of faith.

Shura is a professional governing body for considering important state issues in an Islamic state, that is, it is made up of civil servants.

Shura is a joint advisory body in many social institutions of the Islamic world.

Emirates are historical and modern states within the Islamic world, distinguished by their small size and the hereditary nature of the emir’s power, appealing to a unified tradition of governance among a given people and to Sharia.

An emirate is part of a union state of Muslims, a source of delegating power in a treaty federation in the Islamic world, headed by a hereditary emir from a local dynasty.

Emirate — according to the doctrine of the caliphate, an emirate is a union district for the implementation of the central authority of the caliph in the state.

An emirate is a province within a kingdom in the Islamic world, headed by an emir from the ruling monarchical family.

An emirate is a doctrine of creating Muslim states within jihadism, which later form a jihadist caliphate. They emerge as a result of armed insurgency.

Pagan adats are adats that directly contradict the law of the Muslim state and Sharia, but they are often perceived as a given and, moreover, as Sharia itself, such as, for example, the adat of women wearing the hijab.