Ribā, Gharar, and Maysir
Foundations of Halal Wealth • Module 3 of 3
The three cardinal sins of Islamic finance are Riba (Interest), Gharar (Excessive Uncertainty), and Maysir (Gambling). Understanding these is key to navigating the financial world as a Muslim.
- Ribā: Any predetermined, guaranteed excess in a loan. It's prohibited because it represents the renting of money, which leads to exploitation and discourages real economic risk-taking.
- Gharar: Excessive ambiguity or uncertainty in a contract. Selling something you don't own or whose characteristics are unknown is Gharar. Shariah requires clarity to prevent disputes.
- Maysir: Gambling, or acquiring wealth by chance at the expense of others. This includes lotteries and purely speculative trading where no real value is created.
Key Takeaway
These three prohibitions form a "negative screen" to filter out injustice, exploitation, and excessive risk from the economy.
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