Faculty Muamalah & Islamic Finance

Mu’amalat, according to Mohammad Khairi, et. al. (2011), is a plural word of muamalah, which is, in literally, originated from the Arabic verb ’amala, meaning “to interact”. This definition would expand in the plural word mu’amalat which would mean “interactions” or “transactions”. The Shari’ah law had permitted several contracts, including commercial transactions, as evidenced by the al-Qur’an, the as-Sunnah and other form of Islamic laws. Business was a part of Sunnah practiced by the beloved Last Prophet Muhammad (SAW.), and even there was several dalils mentioned in the Holy al-Qur’an and al-Hadith which mentions about business and its benefits. That is why Muslims are encouraged to involve in entrepreneurial business, since Allah also mentioned that humans were khalifahs of the Earth, which means that humans not only should become his own leader but also should administer the natural resources gifted by Allah (Muhammad Ridhwan, 2012).