Rise of Islamic Banking Assets, Coverage and Sophistication

The scope of Islamic banking has grown beyond all recognition since the establishment of the first Islamic Development Bank in the 1970s. This article discusses how the Islamic finance sector has been able to increase its profile around the world through increasingly sophisticated products.

Islamic banking is designed around the prohibition of usury and unearned profits, and is born out of strong religious views. As such, it outlaws any services based around the charging of interest, as well as activities such as gambling and trading in forbidden goods such as alcohol.

The origins of a uniform approach to Islamic banking can be traced back to localised activities in the 1960s and 1970s, with experimental projects such as informal profit-sharing savings institutions in Egypt, and Hajj savings programmes in Malaysia. Subsequently, a model for modern financing was first formed in 1973, when the Conference of Finance Ministers of Muslim Countries issued a Declaration of Intent to establish the first Islamic Development Bank (IDB), which was opened in 1975. The purpose of the IDB is to foster the economic development and social progress of member countries and Muslim communities individually, as well as jointly in accordance with the principles of Islamic law. The 1980s saw the increasing adoption of more formal approaches and transitions to a Sharia-compliant model. Pakistan was one leader of this, adopting a policy in 1979 to transform the country's banking operations over a three year period. Iran was another leader, passing a law for usury-free banking in 1983 that required banks to convert all deposits and operations in line with Sharia.

Striving for Global Convergence

At the Islamic Banking and Finance Conference in Washington DC in 2002, it was estimated that there are some US$300bn assets in Islamic banking, and it is largely accepted that this market is set to grow. In addition to this dollar amount, there are additional assets in conventional banking that will be transferred to Islamic banking as well as an indefinable amount of assets that are yet to be banked. This, along with the appearance of an increasing number of small, dedicated Islamic banking institutions has attracted global conventional banks to also offer Sharia-compliant products.

As a result, a key theme in today's Islamic banking market is the challenge to continue to transform the industry so that it can synthesise Islamic products and banking processes with some of the more recent innovations in Western banking in an appropriate way.

Filling the Regulatory Void in the Middle East

Regulation has played an important role in defining the current Islamic banking landscape. Today, there is still no structured regulatory view for the market. While the market is founded upon strong religious principles and some theoretical texts exist to guide financial activities, there is no governing body, which limits the growth of the market, particularly in the Middle East where it originated.

Instead of a governing body, each Islamic bank in the Middle East has its own Sharia Board. This board oversees the development and implementation of Sharia-compliant banking services and ensures that they are carried out in strict compliance with Islamic banking principles. It also has the authority to issue opinions and rulings on the bank's proposed activities. This model has led to the issue of non-standardisation between banks in relation to various common banking services. For example, if a bank wished to invest monies in the stock market, it could do so only by investing in Islamic companies and in compliance with Sharia-law, as regulated by the Sharia Board. The lack of a standard, detailed definition of permitted companies means that it is hard to compare one bank's offering in this area with another's. This lack of commonly understood permitted activities and investment definitions means there is less transparency of products and services to actual and prospective customers.

While the number of Sharia Boards continues to grow in line with the market, they are unlikely to appear at a central banking level and therefore will continue to offer only a fragmented and micro-level solution to the regulation issue. However, there have been some moves to adopt a national approach. In Pakistan, the State Bank has an Islamic Banking Department that aims to make Islamic Banking the first choice for providers and users of banking services. This department was founded in 2003, and is working to improve Sharia compliance, risk management and prudential management. This approach brings Pakistani Islamic Banking regulation more in line with conventional banking, and draws some parallels with other regulatory issues such as Basel II.

The Westernised Approach

While this addresses the landscape in predominantly Muslim regions, developments in predominantly non-Muslim countries have differed. In the UK, for example, there have been some early experiments, such as Al-Barakah, a London-based deposit-taking institution and, more recently, the Islamic Bank of Great Britain. The history of Dallah Al-Barakah is instructive in that its operations were found to be incompatible with the then existing Bank of England's regulations. Due to the inherent nature of its Sharia-compliant operations, it could not guarantee the return of deposits. This was a pre-requisite for the licensed deposit taking regulatory status at that time. This highlighted the fact that Western regulatory regimes would need to adapt their view of banking.

Also in the UK, the Chancellor of the Exchequer, Gordon Brown, acknowledged the significance of this important market by changing legislation to enable future growth. In Islamic banking, instead of loaning the money on an interest-based repayment scheme, the bank buys the property and then re-sells it to the purchaser. Instead of repaying a loan or mortgage, the purchaser pays a form of rent to the bank and at the end of the agreed term makes a final payment and takes over the ownership of the property. As the bank is forbidden to charge interest, it instead charges a management fee so is still able to make profit. As this includes two changes of ownership, under UK law this requires the two separate payments of stamp duty. In September 2002, Gordon Brown introduced new legislation that waived stamp duty on a second change of ownership, accommodating the Sharia-compliant approach to mortgages.

So while Islamic banking in the West might be constrained by Western banking practices, there are clear signs that the market is beginning to address the requirements and create a clearer path for growth. Today there are a number of examples of firms that are addressing the needs of Muslim communities in predominantly non-Muslim countries. These include the Islamic Bank International of Denmark, founded in 1982, and Islamic Banking System International Holding, founded in 1978 in Luxembourg.

As a result of national changes in regulation and the success of the smaller institutions, the path is clear for the larger conventional banks to also join the market. Global Westernised banks, such as HSBC, now also offer Islamic banking activities.

As more banks offer the services, the approach has become in some ways more distant from its religious foundation and more akin to conventional banking, with established Western firms offering Sharia-compliant products. And as the market, along with the number of players, grows, the approach becomes more product-orientated, with services such as trade finance and property finance becoming particularly prominent. This also extends to particular regions such as Asia, where there is a trend for greater product innovation, with the arrival of new services and twists on old ones.

Future Challenges

A future challenge from a business perspective is the inherent lack of flexibility and liquidity in the Islamic banking market as it currently operates. This results largely from the prohibition of usury-based activities stemming from the lending and borrowing of monies on the capital markets. Western style banks use the capital markets not just for speculative trading purposes, but also to allow them to cover funding and liquidity gaps. These markets give a degree of flexibility and financial agility to their participants that do not currently exist in the Islamic banking sector. This not only creates potential economic inefficiencies in the sector, but also raises the possibility of the failure of an institution for liquidity reasons. This is a challenge that the industry is keen to overcome in order for the market to truly flourish, both at a local level and in relation to the global banks.

There are now interest-free debt instruments known as Sukooks, but the market in them is not yet sufficiently liquid or deep for them to fully realise this role. An alternative solution to liquidity constraints would involve the creation of Islamic versions of the lender of last resort role often operated by central banks or other monetary authorities. Although this would reassure potential depositors in Islamic banks as to the likelihood of the bank continuing to operate, this only forms a safety net in the case of failure rather than as a mechanism to stop the failure from occurring in the first place. More attractive is the creation of an Islamic banking equivalent to the capital markets, by allowing banks to trade between each other to cover operational liquidity and other constraints in the short term. According to the Financial Times on 2 October 2006, Swiss investment bank UBS will launch an instrument that claims to be the world's first Sharia-compliant investment product linked to commodity prices, demonstrating the growing levels of product innovation in the industry. This is just one example of the growing innovation of products in the sector; which is of particular note in South East Asian countries.

The Islamic Development Bank could step in to either or both of these roles. It has helped the market from time to time by financing projects in less well-developed states and acted as an inter-governmental bank, so is potentially well-positioned to help to shoulder this responsibility.

While customers feel religiously compelled to use Islamic banking, their confidence in particular institutions is likely to dictate some of the growth patterns. Most dedicated Islamic banking institutions are small, so do not really mirror a typical, conventional Western bank. There are exceptions, such as the Dubai Islamic Bank, the world's first fully-fledged Islamic bank that has assets of US$15bn, as well as assets under management in funds and other collective investment and financing scheme considerably exceeding this. The bank now possesses A and A1 ratings from Standard and Poor's. And while it is unlikely that institutions in the Middle East will be allowed to fail, in predominantly non-Muslim countries it is less certain. As such, consumer confidence could well favour the more established firms, leaving the smaller dedicated banks behind.

As the market seems set for substantial growth, the industry now has to step up to the challenge of ensuring the products can meet the demand, while adhering to the laws of Islam. There will inevitably be risks along the way, such as the possibility of large-scale failures. However, once these are avoided and firms, along with national governments, demonstrate a coherent, stable and innovative approach, the path will be clear for the market to reach its true potential.

By: Nicholas Brewer, Temenos

The Mind

A discussion on the basic qualities of a healthy mind and what it will enable a person to do as described in the Qur'an.

Mind and reason are an essential part of Islamic thought and legislation. One could not exist without the other. What exactly do we refer to when we talk about the mind? There are two kinds of reasoning by the mind that have been identified.

The first is intuitive reasoning that includes: the capacity to comprehend, make rational conclusions, form speech and behave sensibly. The second kind of reasoning is acquired from our environment, such as the things we have been taught or become familiarized with.

I shall discuss intuitive reasoning for it is what Allah has granted to all, and it is what makes us accountable for our behavior. One who does not possess a mind or has lost his mind cannot be fully responsible for what he does.

Often, a person will have a good mind, and then choose not to use it or restrain it from thinking logically when it comes to matters of religion and faith. He will end up being one of the unfaithful and will be held accountable for his ignorance in religion.

"And it is not for any soul to believe, except by the leave of Allah, and He lays abomination on those who have' no understanding." [10:100].

It is no wonder that the punishment of those who do not believe is equivalent to that of those who do not understand.

"Whoever Allah wishes to guide, He expands his chest to Islam, and whoever He wishes to leave astray, He makes his chest narrow and constricted as if he were climbing up to the sky. So Allah lays abomination on those who do not believe." [6:125].

These two verses point out that one cannot possibly purify his heart unless he puts his mind to work, allowing faith and security into his heart.

The Qur'an refers to the mind in different ways depending on the nature of the task being dealt with:

1. The mind is able to understand and process speech.

"Do you (Muslims) expect that they (Jews) will be believers, while some of them used to listen to the revelation of Allah (Torah), then intentionally tamper with it, while they understood it and knew it was the Truth?" [2:75].

"We have revealed it an Arabic Qur'an, that you may understand." [12:2]

The reason the Qur'an was revealed in Arabic was so that the minds of the people upon whom it was descended would be able to grasp it and appreciate its meanings.

2. The mind is able to project coherent and non-conflicting thoughts.

"O people of earlier scripture! Why do you argue about Ibrahim, when the Torah and Injeel were not revealed until after him? Do you not have minds?" [3:65].

Those who claim that Ibrahim was a Jew or a Christian are contradicting themselves, since both Judaism and Christianity came long after the time of Ibrahim.

The surah of al-Anaam, verse 91, also refers to the Jews contradicting themselves: "And they did not attach the proper esteem to Allah when they said, 'Allah has not revealed anything to any human.' Say, 'Who then sent down the Book which Moses brought as a light and as a guidance to people, which you divided into fragments, part of which you show to the people, and most of which you hide from them, and you were taught knowledge which neither you nor your fathers had possessed! Say, 'It is Allah,' then leave them to churn in their vain discourses."

The verse points that the Jews cannot claim to believe in the prophecy of Moses, and in the Torah, then go on to say that Allah did not reveal anything to any humans, because those are contradicting thoughts.

3. The mind is able to understand proof and evidence of truth.

"He has set for you an analogy from your lives: Have you, among that which your right hands possess, partners in what We have bestowed on you sharing with you equally, and you fear them as you fear each other? Thus we make clear the signs for people who understand." [6:28] "Say, 'If Allah had pleased, I would not have recited the Qur'an to you, nor would you have had any knowledge of it, indeed, I have already lived among you for a lifetime before it, do you not understand?" [10:16].

4. Actions must correspond to words.

"Do you enjoin the performance of good deeds on the people and neglect it yourselves, while you read the Scriptures, do you not have any sense?" [2:44]. This verse is reprimanding the people, not for encouraging others to adhere to the way of Allah, for that is always a virtue. The verse, however, is pointing out the contradiction of the people who are giving good advice but not taking it themselves. In any case, how the giver of good advice behaves does not reduce the value of the advice, such as a smoker or an alcoholic warning his children against the harms of those behaviors. It is far better than encouraging them to take on such harmful habits and better than not giving them any useful advice at all. Still, it does not make much sense to recognize the value of behaving in a certain way, and encourage others to do so, while acting in an opposing manner.

For this reason, the good prophet in the Surah of Hood, verse 88 said,

"He said, 'O my people, just consider, if I stand upon clear proof from my Lord, and He has provided me with sustenance good and pure, and I do not wish to dispute with you about that which I forbid you to do. I only desire to reform you as far as I am able. My success in that rests only with Allah, and in Him I put my trust and to Him I turn."

5. The mind enables the person to make intelligent choices about what is good for him and what is harmful and should be rejected.

"And the worldly life is no more but play and diversion, surely the last abode is better for those who are pious, then will you not understand?" [6:32].

"Surely We have revealed to you a Book in which is a message for you, will you then not understand?" [21:10].

6. People of mind are able to give up immediate, short-lived benefits in favor of eventually gaining more valuable, eternal joy.

"Whatever you have been given of things, they are only the worldly possessions of this life and its glitter, but that which is with Allah is better and everlasting. Have you then no sense?" [28:10].

In other verses, there is no direct mention of sense, but it can be inferred that sensible people will be able to choose to wait for what is further away, yet more meaningful. For example,

"O you who believe, what is amiss with you, that when it is said to you, 'March forth in the cause of Allah (to fight)', you cling excessively to the earth. Are you content with the life of this world, rather than the Hereafter? Yet joy on this world, compared to the Hereafter, is but little." [9:38].

7. People of mind are able to learn valuable lessons from the events of life.

In the Surah of al-Ankabut verse 35 tells us that the remains of the town of the people of Loot remained in order to remind people and teach them that rejecting the teachings of Allah and committing atrocities will always have regrettable consequences. "And we have left a clear sign of it for people who possess minds." This is also referred to in verse 40 of Surah al-Furqan, "And surely they must have passed by the town that was rained on by an evil rain, did they not see it? But they were hoping not to be raised again (from the graves)."

8. The mind enables us to learn from the lessons of history.

"And We have not sent before you any but men from among the people of the towns. We revealed to them. Have they not traveled in the land, have they not seen how was the end of those before them? And the abode of the Hereafter is better for those who fear Allah. Do you not then understand?" [12:109].

9. The mind enables us to understand and appreciate the signs of the Creator, while here on earth.

"Surely in the creation of the heavens and the earth, in the disparity of the night and the day, in the ships that course in the sea with that which benefits people, in the water that Allah sends down from the sky, reviving with it the earth after it was barren, in His spreading in it all kinds of living things, in the changing of the winds and of the subjected clouds between the earth, indeed are Signs for people who have understanding." [2:164]. "For you, Allah subjected the night and the day, and the sun and the moon, and the stars are in subjection to His command. Surely in this are signs for people for people who understand." [16:12].

10. Sensible people will know to treat others with respect, particularly in their dealings with the prophets.

The Surah of al-Hujurat refers to people who harassed the Prophet, sallallahu alayhi wa sallam: "Surely those who call out to you from behind the chambers, most of them do not possess minds."

The qualities of the mind discussed are fairly indisputable and it is accepted by most people that a person who lacks these qualities will be seen as unreasonable or lacking in various ways. Thus the Qur'an has reminded us that certain behaviors are inconsistent with an intelligent and sound mind.

We must remember also that there are many verses of the Qur'an that do not specifically mention the mind; but indicate that thoughtful and reasonable people will be able to follow the way of Allah - making good use of their God-given gift: the Mind.

Taken From: www.islaam.com

Contributed by:Dr. Ja’far Sheikh Idris

The Moral Dilemma Today's Muslim, Yesterday's Hero?

B i s m i l l a a h i r R a h m a a n i r R a h e e m

INTRODUCTION The recent events against the Muslim Ummah on a global scale have served as a catalyst for Muslims throughout the world to do a lot of soul searching & introspection. The word "Islam" means "peace". One therefore questions the motives of the people who are labeling a peaceful nation of Muslims who subscribe to the beautiful religion of Islam as "terrorists", "fundamentalists", "mullahs in flowing robes", "Islamic extremists", "radicals" & "vigilantes." Islam is the fastest growing religion in the world, not because it is a "terrorist" organization, but simply because the logic, reason, beauty and simplicity of this religion sets up vibrations in the chords of the heart and touches the very soul of everyone who is introduced to this religion with a clear unbiased mind. Each and every Muslim is caught up in the myth that "Muslims are terrorists." This portrayal is not only biased and unfair, but it is based on erroneous or deliberate mis-representation of what Islam is and what a Muslim stands for, and is an insult to each and every peace - loving Muslim. THE CURRENT SCENARIO 1) THE PLIGHT OF MUSLIMS: Muslims throughout the world are suffering in various forms and degrees of oppression and hardship. Many hundreds of thousands of Muslims have died as a result of being innocent bystanders in military conflict. Furthermore, many millions of Muslims throughout the world are suffering from sanctions, boycotts, starvation & a slow death. Many Muslims throughout the world are shackled in the chains of ignorance and poverty and regional and national divisions and sectarianisms which projects the image of a divided Ummah. Personality differences lead to wars. The suffering of neighbouring Muslim countries is ignored and the plight of the Ummah on a global scale is not being treated aggressively and immediately. There appear to be too many hurdles to ignite the flame in the warm, burning embers of the Ummah. On the positive side, Muslims throughout the World contribute generously in money and time if and when the need arises in times of catastrophes. 2) THE HOLY CITIES: Saudi Arabia, contains the Holiest Cities on earth , namely Medeena & Makkah. These two sites are tarnished by the permanent occupation of American soldiers in the near vicinities to these cities; these American soldiers are pampered with disco's and brothels. An American with an American passport has a VIP status and can move freely between the various cities and towns in Saudi Arabia while a Muslim visitor to this country is not given this same status and is severely restricted. 3) PALESTINE: Masjid-ul -Aqsa is the 3rd Holiest Mosque in the Muslim World. It is in the midst of an ongoing war for many decades; the Muslims fighting this battle have been on the receiving end of "Apartheid" style living conditions unemployment, inferior citizen status, humiliation, victimization, torture, starvation and death (these atrocities have been going on for decades and all Muslims in that area are affected irrespective of man, woman, child or the elderly); the Muslims are deprived of an adequate water supply; their underground water tables are being deliberately contaminated; their Jewish neighbours have abundant supply of water with which they water their gardens, while the Muslims are suffering from thirst daily. The Muslims are suffering and dying simply because they want to fight for the freedom of the Holy City of Jerusalem; Masjid-ul Aqsa is the node from which the Holy Prophet Muhammad, Sall Allaahu`alayhi wa sallam ascended to the Heavens in his famous Night Journey. Surely, the importance of this sacred event is not unknown to the West. Surely, the entire Muslim Ummah, can identify with the cause of the Palestines. Surely, the suffering of the Muslims in Palestine and everywhere else, is a suffering which all Muslims identify with. Why the delay in finding an acceptable solution? Who stands to benefit the most if this situation is delayed? Who is suffering the most while a settlement has not yet been reached? Why is the rest of the Islamic World unable to unite in their total condemnation of this unacceptable situation? Why is the rest of the free world not condemning this totally unacceptable situation, purely on humanitarian grounds? Is it because the victims are Muslim? Are Muslims regarded as inferior? 4) OPPRESSORS: Right-minded people must always ask the question: when a peace - loving people or a nation, suddenly takes up arms to fight a cause, always ask the question " Why?" The answer is that when a peaceful nation starts to fight, there is usually an oppressor nearby. THE DILEMMA Muslims have access to the Best Book (Glorious Qur`aan) and the Best Example (Holy Prophet Muhammad, Sall Allaahu`alayhi wa sallam). With these two powerful tools, we should have been the leaders for all mankind. We were the best at one stage in our history. Where and why did we lose our momentum? We can once again be the best (the tools are still with us).The following questions immediately spring to mind : 1) Why are Muslims being oppressed? 2) Why are Muslims throughout the world suffering many forms of hardship and suffering in general? 3) Why do Muslim nations not unite and speak in one voice? Are we united? 4) Where are the Muslim Nations? where is Muslim leadership? 5) How did we lose our leading edge as being the leaders of the world? Muslims have a glorious and illustrious history. At one stage, our ancestors led the entire world in technology, mathematics, science, religion, military strategy, intellectual wealth, to name but a few. Other nations learnt from the early Muslims , and have maintained their lead .In the last 100 years, what technological or other advances have the Muslims made: have they shown their leadership in any sphere? 6) Why are Muslim youth (tomorrows leaders) losing not only their culture, but more importantly, basic Islamic values? 7) Why is the average Muslim generally ignorant about Islam? 8) Why is the average Muslim generally ignorant about religions other than Islam? 9) Why do we know so little about our religion that we cannot defend ourselves when Islam is criticised? Is it our lack of self-esteem or is it our ignorance? 10) Is there a concerted effort by the "West" and by "America" to destroy Islam or are we being paranoid? 11) Why do we try and do everything "American" or emulate the "west"; is it to boost our self-esteem or do we think that 'west' is better than 'east' or is it simply a matter of powerful TV and media indoctrination? DISCUSSION There is no doubt that the First World Countries such as America, are leading the world in many spheres such as pioneering the frontiers into space (NASA), leading technology, education, health, economic and financial stability and strength, military prowess, a very high literacy level etc etc. Because of these various successes, other countries and nations try and emulate America in everything in the fervent desire that thereby the successes can be replicated. However, the weakness in this scenario is that even though America and other 1st World countries have achieved phenomenal successes in many spheres, there is one sphere in which they are lacking far behind; they are morally and spiritually bankrupt. However, the perception and message that is transmitted on a daily basis is that everything "American" is something worth aspiring for, and emulating. Nations are encouraged to discard their "archaic cultures " and "medieval outdated religions" and turn to the west for success. Unfortunately, this strategy is paying dividends because many of our youth are being brainwashed into subscribing to the "America Dream" and thereby treading dangerous waters in their quest to "succeed" at the expense of sacrificing their Islamic values. Some commentators are of the opinion that there is a "concerted, deliberate" attempt to destroy our youth. This may well be the case. However, no one is forcing our youth to do anything. As humans, we all have a choice. When we pray Soorah Al-Faatihah, wherein we beseech Allaah Subhaanahu wa Ta`aala to "Show us the Straight Path", we are faced with the following choices: Straight Path- What Islam teaches us Wrong Path - against Islamic teachings (call it "West" or "American" or other generic name) Do not drink alcohol Alcohol is fine Do not gamble Gambling is encouraged Do not commit adultery Adultery and multiple partners is allowed Pre-marital sex (Zinna) is forbidden "free - for- all" Pray for success in this world & the Hereafter This world is all that matters The Prophet Muhammad, Sall Allaahu`alayhi wa sallam is our role model & hero Role models are Pop Stars, Movie moguls, & millionaires The Qur`aan is our Guide and Life Book No set of guidelines Only Halaal food is permissible Eat anything & everything Sodomy is forbidden Gay liberation; homosexuality is justified Guard your modesty and avoid looking at the private sections of other people Pornography is fashionable Pray regular salaah Sunday Church is fine; we have replaced this with our "Friday Prayers"; some of us explain to our fellow non-Muslim colleagues that we are going to "Church"; why are we shy to use the word "Masjid" Stealing is a punishable offence A good lawyer finds you "innocent" Lower your gaze Ogle everyone The above are just some of the choices that we have to make on a regular basis. No one can force us to gamble or to drink alcohol. It is our choice. The world is full of temptations on a daily basis; these temptations are meant to distract you and I from worshipping Allaah Subhaanahu wa Ta`aala, and to deviate us from the Straight Path. However, neither America, nor the West nor anyone is forcing us to make these choices. The choice is yours and mine. We are answerable for the choices that we make in life. SOME THOUGHTS 1. There is no denying that we can learn a lot from many 1st World countries; 2. The solution lies in being very selective in choosing what we want to acquire; 3. The starting point of our success lies in deciding that the Glorius Qur`aan is our Life Book and that the Sunnah of the Holy Prophet Muhammad, Sall Allaahu`alayhi wa sallam is the only role model that we will emulate; 4. Having committed ourselves to (3) above, it then becomes less confusing to decide what is "acceptable" and what is not; 5. We as adults have to be very clear what guidelines to give our children (our future leaders); do we allow them to watch porn, visit prostitutes and go gambling? do we allow them to go to rave & disco parties because their friends are going? What standards do we set based on what Islam teaches us, not what the TV fools us into believing? By Dr. Ahmed Adam

Religious Harmony

What the world needs today—perhaps more than anything else—is an acceptable formula for the attainment of religious harmony. This being currently one of the most important topics under discussion, I shall attempt to present here, in brief, the Islamic viewpoint.

Let us begin with a verse of the Qur’an which reads:

He that chooses a religion other than Islam, it will not be accepted from him, and in the world to come he will be one of the lost (3:85).

In the opinion of certain interpreters, this verse implies that salvation according to Islam is destined exclusively for Muslims. Islam thus appears to uphold the superiority of the Muslim community. But this is an out-of-context interpretation and is certainly not correct.

Let us take another verse of the Qur’an which serves as an explanation of the above-quoted verse. It states that:

Believers, Jews, Christians, and Sabeans—whoever believes in God and the Last Day and does what is right—shall be rewarded by their Lord; they have nothing to fear or to regret (2:62).

This verse rules out the concept of community superiority for any given group: even Muslims have been bracketed here along with other religious groups. The content of this verse makes it very clear that salvation, by Islamic standards, depends upon the individual’s own actions, and that it is not the prerogative of any group. No man or woman can earn his or her salvation by the mere fact of associating with a particular group. Salvation will be achievable only by a person who truly believes in God and the world hereafter, and who has given genuine proof in this life of having lived a life of right action.

Another important aspect of Islam is that it does not advocate belief in the manyness of reality; on the contrary, it stresses reality’s oneness. That is, according to Islam, reality is one, not many. That is why, in describing monotheism, the Qur’an states:

Such is God, your rightful Lord. That which is not true must need be false. How then can you turn away from Him? (10:32)

This verse makes it clear that monotheism (i.e. one Lord being the Creator, Sustainer and object of worship) is the only truth. All other paths lead one away from, rather than towards the truth. The fact that certain religious thinkers believe in the manyness of reality is of no concern to Islam. With oneness as its ideal, it cannot accept manyness even as a hypothesis.

Both of the above points—(a) the oneness of Absolute Reality, and (b) Salvation as the prerogative of the true believer in this oneness—form a major part of Islamic ideal. Just being born into a certain group or community, or associating oneself with others of similar persuasions, does not entitle one to salvation, be one a Muslim or a non-Muslim.

Now let us deal with the fact that; in practice, different kinds of religious groups do exist. Then, given the various kinds of differences separating them, let us consider, how to bring about harmony between them.

One solution commonly advocated is to spread the conviction that all religions are essentially one: that they are simply diverse paths leading to a common destination. Islam, however, does not accept this view and, in any case, experience has shown that repeated attempts to bring about harmony on this basis have been a failure. The Emperor Akbar attempted to achieve harmony by state enforcement of his newly formed religion, ‘Din-e-Ilahi;’ Dr Bhagwan Das spent the best part of his life producing a one-thousand page book titled Essential Unity of All Religions; Mahatma Gandhi (1869-1948) attempted to spread this ideal at the national level by a countrywide movement whose slogan was ‘Ram Rahim ek hai,’ meaning Ram and Rahim were one and the same. But events have shown us that all failed in their attempts to achieve the goal of religious harmony.

Islam’s approach to the entire problem is much more realistic in that it accepts ideological differences. Once having accepted these differences, it then advocates the policy of tolerance and respect for one another in everyday dealings. This is on a parallel with the principle expressed in the English saying. ‘Let’s agree to disagree.’

In this connection, one of the commands of the Qur’an is that, in principle, ‘there shall be no compulsion in religion’ (2:256). At another place it declares that ‘you have your religion and I have mine’ (109:6). It was as a result of this commandment that, when the Prophet Muhammad migrated to Medina, he issued a declaration reaffirming his acceptance of the religion of Muslims for the Muslims and the religion of Jews for the Jews.’ In order to perpetuate the atmosphere of mutual harmony, the Qur’an commands the Muslims in their dealings with unbelievers not to ‘revile (the idols) which they invoke besides Allah, lest in their ignorance they should spitefully revile Allah.’

This principle formulated by Islam is best described not as religious harmony, but as harmony among religious people. This is a principle whose utility is a matter of historical record. It is evident that in the past as well as in the present, wherever religious harmony has existed, it has been based on unity despite differences, rather than on unity without differences. It is not based on agreeing to agree, but on agreeing to disagree.

One extremely revolutionary example of this principle is to be found in the life of the Prophet Muhammad. It concerns the conference of three religions which was held in the Prophet’s own mosque in Medina. This conference is described by Muhammad Husain Haykal in his book, The Life of Muhammad:The three scriptural religions thus confronted one another in Madinah. The delegation entered with the Prophet into public debate and these were soon joined by the Jews, thus resulting in a tripartite dialogue between Judaism, Christianity and Islam. This was a truly great congress which the city of Yathrib had witnessed. In it, the three religions which today dominate the world and determine its destiny had met, and they did so for the greatest idea and the noblest purpose. Although Islam believes, in the oneness of reality it lays equal stress on the practice of tolerance in everyday dealings, even if it means going to the extent of permitting non-Muslims to come to an Islamic place of worship for religious discussion, and if it is time for their prayers letting them feel free to perform their worship according to their own ways in the mosque itself.

Tolerance has been the rule throughout the history of Islam. It has, in fact, been one of the main underlying causes of its successful dissemination. Here I quote from the Encyclopaedia Britannica:

Islam achieved astonishing success in its first phase. Within a century after the Prophet’s death in 632 a.d.(the early generations of Muslims) it had brought a large part of the globe—from Spain across central Asia to India—under a new Arab Muslim empire.

And this is the part which I wish particularly to stress:

Despite these astonishing achievements other religious groups enjoyed full religious autonomy (9/912).

Now the complicating factor is that when any religion having reached this stage of antiquity has secured a sacred place in the hearts of its believers, it becomes impossible to bring about any changes in it. Efforts to bring about a change can produce a new religion, but they can never succeed in changing the old religion. There are many examples of such failures in the past.

A very important point from the practical point of view is that although the necessity to bring about harmony among the different religions is not a newly-felt imperative, endeavors towards that end are still only in the formative stages. If progress towards that goal has been slow of attainment, it is because of the established positions which ancient religions have secured in the hearts of their followers, simply by virtue of their antiquity. Trying to bring about changes in these religions per se has never brought about harmony, because instead of old religions being brought closer together by this process, they have developed rather into new religions, a process which has either left the problem of disharmony unsolved or has further aggravated it. There are many examples of such abortive efforts in the past.

In view of this historical reality, it is clear that the suggestions made by Islam as to how to produce harmony among the different religions is the only viable solution. Any alternative suggestion, however attractive it might appear, would be either impracticable or counter-productive.

Once, when discussing this point with me, a religious scholar said, ‘We have been attempting to bring about inter-religious harmony for the last one hundred years, but the results have been quite dismal. It would seem that there are insurmountable obstacles in the way.’

I replied that the goal we want to attain is certainly a proper one; it is simply that the strategy we employ is impracticable. Religious harmony is without doubt a desirable objective. But it cannot be achieved by attempting to alter people’s beliefs—a policy advocated by more than one scholar in this field. The only way to tackle the problem is to encourage people to show respect for others’ beliefs and to be humanitarian at all times in their dealings with adherents of other religions. It is vital to realize that it is quite possible to inculcate this attitude without in any way tampering with long-cherished credos. It should never be conceded that the goal of religious harmony is unattainable simply because people’s beliefs differ from each other. It is certainly a possibility provided that it is seen as a matter of practical strategy and not as a pretext for making ideological changes.

‘Practical strategy’ is something which people regularly resort to in matters of their daily existence. As such, it is a known and acceptable method of solving the problem. Since no new ground has to be broken, either for the religious scholar or for the common man, it should be a very simple matter for people to extend their everyday activity, within their own sphere of existence, to include an honest and sincere effort towards global religious harmony. It is simply a question of having the will and the foresight to do so.

Article By: Maulana Wahiduddin Khan