How Islam Views
Money and Finance
An MCCA partnership with Project Quran
Islam’s Perspective on Wealth and Earning an Income
In Islam, all resources, including wealth, are considered a means to fulfil God’s commands. For this reason, wealth in Islam is considered as a tool of worship, given as a blessing from Allah and used to live life in accordance with Islamic principles.
Wealth is ultimately viewed as a worldly matter, having no benefit in and of itself, unless used for good. In this respect, it can be hugely beneficial to the Muslim in the hereafter if it is used for good, but it can also be something that testifies against a person if it is used for harm or hoarded. The Quran warns Muslims to not fall into greed, have pride over their money or hoard their possessions.
However, this does not mean Islam dislikes monetary possession and economic endeavours, instead placing an equal emphasis on the way that wealth is used and the means through which it is attained.
Islam also views wealth as an indispensable aspect of human life and puts forth legislation and ruling to prevent Muslims from the harmful effects of wealth, ranging from how it must be earnt to how it must be spent.
A means to fulfil God's commands & a blessing from Allah
A worldly matter with no benefit in and of itself in the hereafter
An indispensable aspect of human life
Governed by Islamic legislation and ruling (Shari'ah)
A Brief Introduction to Islamic Finance
The Islamic way of managing money differs from the mainstream in its adherence to Sharia (Islamic Law). For a financial institution to be considered compliant under Sharia, the institution must not encourage practices which are haram or unlawful within Islam. This includes:
- No financial agreements involving ribaa (usury or interest);
- No funding of any projects or business which promote unethical activities (such as the selling of any alcohol, pork, arms, pornography or gambling services); and
- No prevalence of maisir (where the ownership of goods depends on an uncertain event in the future) or gharar (which involves the sale of items whose existence is uncertain) within contracts between the business and its clients.
Prohibition of Ribaa’ (Usury)
Amongst Islam’s vast teachings on wealth, including the impermissibility of gambling and theft, is a strong prohibition of ribaa.
Ribaa is an Arabic word that means to increase or exceed and is commonly used in reference to unequal exchanges or charges from borrowing, including interest.
The Quran admonishes those who deal with ribaa, likening it to waging a war on God and the Prophet (SAW). The severe punishments surrounding ribaa’ result in Muslims staying away from all forms of interest, including investing and taking loans from traditional banks.
Our Work at MCCA
MCCA is a leading Islamic finance provider borne from the need to address the financial, banking and investment needs of the Australian Muslim community through Shariah-compliant finance and investment products.
Since our inception, we have committed ourselves to Integrity, Excellence, Innovation, Faith and People.
We are also an avid supporter of the Muslim community’s broader social and communal needs, sponsoring mosques, schools, community events and much more to help build a thriving, holistic community that sees strong institutions built that support our diverse needs.
Our Core Purpose
MCCA in the Community
MCCA’s existence is centered around its service to the
Australian Muslim community.
As a result of the success and growth of our Islamic finance and investment offerings, we have been able to contribute to the community in many ways:
- promoting causes and championing them
- sponsoring events and initiatives
- and partnering with worthy initiatives and organisations to help them achieve success
For more than 30 years, we have been sponsoring mosques, schools, businesses, community organisations, sports clubs
and community events.