Building a Halal Business

Business Definition

A business is defined as an organisation or innovative entity involved in commercial, industrial, or professional activities. Businesses can be for profit or non-profit organisations.

Halal Business Definition

Halal Business can be defined as any kind of entrepreneurial business producing only halal products or services, those permitted in the Islamic norms and principles. To be more specific, a Halal business must comply with the Holy Qur'an and the Sunnah.

Islam as a Complete Code of Life

Islam is a complete code of life. It has given guidance for everything, which is necessary for our daily life. All the guidance of Islam has some underlying benefits and moral values.

Meaning of Halal

In the Holy Qur'an halal means permitted, allowed, legal or lawful. We as a Muslim should try to follow the things that are halal and to strictly avoid these things that are forbidden in Islam. These days, because of the lack of Islamic knowledge and understanding, people relate the halal term with food and drinks. Also, subconsciously they do not give importance to halal earnings from which we buy our food and drinks. It is very important that we have to be very clear that the concept of halal is not only restricted to food and beverages; it is applicable to many aspects of life.

Qur’anic Reference

“They are the ones who follow the Messenger, the unlettered Prophet, whose description they find in their Torah and the Gospel. He commands them to do good and forbids them from evil, permits for them what is lawful and forbids to them what is impure, and relieves them from their burdens and the shackles that bound them. Only those who believe in him, honour and support him, and follow the light sent down to him will be successful.”

[Surah Al-A‘raf, 7:157]

Two Aspects of Halal Business

There are two things, firstly the business of halal products and services, and secondly the more important one is to do business in halal way — to follow the guidelines of the Holy Qur'an and Sunnah. To see the huge global market for halal products and services even the non-Muslim businessmen are doing the business of halal products. But the Islamic scholars believe that doing business in halal way will benefit humans regardless of religion. For example, in mid-2022 when we were experiencing high fuel costs for our vehicles, BP declared their record-breaking profits in 14 years.

Business Ethics

There are some business ethics that are important for a businessman to follow for doing halal businesses.

Religious

A businessman should have a pious intention, so that Allah will reward every little deed he did in his business.

Polite

Trustworthy, honesty, and being grateful for everything Allah has given is needed in running a business.

The Prophet ﷺ said:

“The honest and trustworthy merchant will be with the Prophets, the truthful, and the martyrs.”

(Jami‘ Al-Tirmidhi 12091)

Choosing the Business

One should not do business in the areas that Allah forbids, although the forbidden businesses are always tempting for the big amount of money earned. One has to be very careful while selecting the fields of the business.

Causing No Mischief

A Muslim businessman should not cause harm to others regardless of religions. He must never disadvantage nor manipulate others while doing business, such as setting an excessively high price for the goods he sells.

Doing Business in the Name of Allah

The business someone does should be under the name of Allah. Run the business under good intention to please Allah. This is the only way to receive the blessing from Allah.

Sell Lawful Items

Items such as alcohol, tobacco, pork, pornographic material and services, interest-based debts should not be traded. A business should trade only that which is lawful.

Unlawful business harms individuals, the society, and the economy.

For example, the use of alcohol — the NHS estimates that the treatment from alcohol abuse costs £3.5bn a year. This is the taxpayer's money, and it makes the country's economy unstable. The harms of continuous alcohol consumption to the body are known to all.

Treat the Staff with Good Manners

The Prophet ﷺ said:

“Give the worker his wage before his sweat dries.”

(Ibn Majah 2443)

In another statement, the Prophet ﷺ said:

“Whoever employs someone to work for him, he must specify for him his wage in advance.”

(Musannaf Abdur Razzaq)

“O you who have believed, fulfil your contractual obligations.”

[Surah Al-Ma’idah 5:1]

On one occasion, the Prophet ﷺ reports that Allah said:

“I will be the opponent to three types of people on the Day of Judgment... and one who hires staff, takes full work from them and does not pay them their wages.”

(Sahih Bukhari 2270)

So, it is very important for a businessman to follow the fundamental rule of good treatment and timely payments to employees.

No Deception or Fraud

Deception and fraudulent behaviour are completely prohibited in Islam, so it is not permissible in business in any circumstances.

Allah says:

“O you who have believed, do not consume one another's wealth unjustly but only [in lawful] business by mutual consent.”

[Surah Al-Nisa 4:29]

The Prophetic narration states:

“Whoever cheats us, is not one of us.”

(Sahih Muslim 1021)

Benefits of Halal Business

When we do business of halal products and services in a halal way, the benefits will be as follows:

Giving Financial Freedom

Building a business makes a Muslim independent financially and prevents us from begging for money, since Allah forbids us to do it.

The Prophet ﷺ said:

“It is better for anyone of you to take a rope and bring a bundle of wood over his back and sell it, and Allah will save his face because of that, rather than to ask the people who may or may not give.”

(Sahih Bukhari 1471)

Giving More Time to Worship Allah

Working is considered as a kind of worshipping Allah, but by running his own business, a Muslim will have more time to worship Allah. A businessman is usually in control of his time, so his schedule is more flexible, and he can spare his time more to worship Allah.

Have More Time to Do Other Things

By running a business, a Muslim not only has more time to worship Allah, but also more time to do other things he loves — such as travelling, playing sport, or learning a new skill.

Give Positive Feedback to the Society

One of the benefits of running a business is how it gives positive feedback to society. Choose particular charity groups for giving Sadaqah, Zakah, and many more obligatory charities in Islam.

Increasing the Faith in Allah

Nothing may happen without Allah's will and control. Nothing stays forever but Allah. So, the act of business should increase the faith in Allah, especially when the business is not doing so well.

Improving Our Character

A business helps to develop certain virtues such as wisdom, modesty, and many more characteristics.

Mushfiq Ahmad

‘Alimiyyah Graduate, Engineer, and Student of Shaykh Faizulhaq Abdulaziz حفظه الله

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