The world economic crises has significantly awakened people
on the importance of effective financial management. The impact of this scenario
may not only threaten the stability of a country economically and politically,
but failure to discharge it might trigger higher crime rate in the society, due
to unemployment. Sustainable quality of human life depends on the flexibility in
managing and expanding wealth. Investment therefore emerges as an important
instrument to secure capital growth with a potential risk of loss. Meticulous
investment planning will catalyze economic development in a country and ensure
the survival of humanity. Islam is not a religion which solely emphasizes on
Ibadah , but also encompasses a comprehensive system of human life. Islam
strongly encourages people to seek the bounty of Allah by engaging in any
activity that may lead to the achievement of this objective. In the realization
of it, the observance of guidelines and regulations from authoritative text are
required. Thus, this study aims to analyze Islamic textual evidence mainly from
the Quran and sunnahon the significance of investment. In addition, general
overview from Muslim scholars pertaining to investments will also be discussed
in brief.
HUMAN IS IN LOSS
In the light of surah Al Asar .
By the Time Indeed, mankind is in loss, Except for those who have believed and
done righteous deeds and advised each other to truth and advised each other to
patience.
Above verse defines, human is in state of loss, he has unlimited desires and
limited sources. He wants to come his dreams true that’s why he goes to stray.
WAY OF RIGHT AND FACTS
In the light of surah Al Imran Verses 190,191
undoubtedly, in the creation of heavens and earth, in the mutual alternation of
night and day, there are signs for men of understanding.
Who remember Allah standing , sitting and lying on their sides and contemplate
in the creation of heavens and earth . and saying “ oh my Lord ! you have not
made me In vain , Hallowed to you , you save us from the torment of hell.
Importance of Natural resources, In the Light of Surah –Al- Imran
Above verses defines, importance of natural resources (creation of earth and
sky). Nothing is useless in the universe.,.every creature has countless benefits
for human.
Manufacturing Industries Acquire raw Material (NATURAL RESOURCES) From Earth. It
Is Used For Manufacturing Process. Every Manufactured Product Is Consumed By
Customer.
Increase productivity on the manufacturing
In Economic Developed Countries Increases Employment for Labor and Educated
Class. It Raises Living Standard of People
Long term benefits from natural resources are searched by scientist, include
chemist, engineers and pharmaceutical.
Every business is started from investment. An industry runs for long time , it
is required huge investment.
Management accountant plays a vital and dynamic role for economic development.
After studying strategic management, strategic financial management and
strategic management accounting ,student is able to become financial advisor,
investment manager, finance analyst and decision maker.
Investment management
Investment management refers to the handling of financial assets and other
investments- not only buying and selling them. Management includes devising a
short – or- long term strategy for acquiring and disposing of portfolio holding.
It can also include, banking, budgeting, and tax services, and duties, as well.
Managing investment in the light of Quran AndSunnah
Islam demands that human act beneficially for this life and the hereafter. A
true Muslim is a person who devotes himself to develop his potential, both
physically and spiritually. Managing life includes organizing our expenditure
wisely as well as strengthening our financial well – being to insure our
survival. in managing natural resources, humans must avoid any ineffective way
of conduct especially one that jeopardizes their own future. Islam commands its
followers to engage in lawful activities and manage their wealth accordingly as
ordained by Allah and his messenger. Islam, as a complete and practical religion
, teaches us to acquire wealth in order to provide for those under our
responsibility as well as to restrain our hunger and thirst , where it becomes
the necessity of our life. The wealth or resources is a blessing that god has
given to mankind. From the Islamic perspective, all wealth belongs to God and
man is only a trustee who should manage it accordingly in order to
achieveworldly prosperity. The Holy Quran says:
“And give something out of the wealth that God has bestowed upon you”
( An-Nur :23)
A contemporary scholar , Sheikh Dr, yusuf al-Qaradhwani (2000) interpreted the
above verse by denoting wealth as a great responsibility in which Allah had
offered to the heavens , the earth and the mountains , all of which declined but
man accepted. This responsibility requires man to carry out the duties placed as
his vicegerent on earth and will be judged by Allah in the hereafter. Therefore,
Muslim should follow the guidelines and the injunctions of God in their
professions. A blessed wealth would bring the benefits to oneself and to others.
In a narration, Prophet Muhammad SAW said :
“ The upper hand is better than lower hand . one should start giving first to
his dependents. And the best object of charity is that which is given by a
wealthy person (from the money which is left after his expenses). And whoever
abstains from asking others for some financial help , Allah will give him and
save him from asking others , Allah will make him self–sufficient”.
( Bukhari, 1980)
In general wealth or assets should be used to meet the needs of humans at all
levels; individual, family , society and country , positive benefits derived
from wealth / assets will be blessed in return, while negative benefits will
render pain
And suffering on the Day of Judgment as mentioned by Allah in the Holy Quran;
You will surely be tested in your possessions and in your selves, and you will
surely hear from those who were given the scripture before you and those who
associated others with Allah much abuse. But if you are patient and fear Allah
indeed, that is for the matters (worthy) of determination… (ali- Imran : 186).
According to Abdullah (2004), halal rizq will be blessed while haram (prohibited
rizq) will result in anxiety and uneasiness. Even more so, on the Day of
Judgment,
They will be denied from entering jannah as mentioned by prophet Muhammad SAW;
‘A person will not enter paradise if his growth is derived from haram or illegal
efforts. “
Islam has concluded that any types of work, practical acquisition or efforts
aimed towards acquiring rizq, is considered as ibadah .initiative or efforts in
pertsuance of Allah’ s commands. It does not only bring return on this earth but
it will also be compensated in the hereafter. Islam is the only religion which
specifies and dictated how man should perform his business and manage economics
activities in accordance with the teaching of the Quran and sunnah,. Thus, a
person entrusted in managing wealth can achieve the highest degree of virtue (falah)
By spending out his wealth within the boundaries prescribed by the shariah. Al
ghazali (1993), a great muslim jurist , said “ the very objective of the shariah
is to promote welfare which lies on safeguarding human faith, life, intellect,
posterity and property”. On the other hand , the shariah explicitly specifies a
set of rules and principles that regulates the legitimate sources of acquiring
al- mal (property ) as well as its growth and its disposal. These moral limits
are meant to achieve two vital objectives: to promote socioeconomic justice and
to uphold the concept of al-ihsan, al- ihsan is a reassurance that al –mal is to
be used to maximize the welfare of the community .( Al- Ghazali, 1993).
Conclusion
Islam is not a religion that goes against the nature of humanity in acquiring
wealth and property . in fact, islam encourages its followers to acquire wealth
for their happiness in this world and to prepare for their life in the
hereafter. Nonetheless, there are rules and regulations that must be observed by
Muslims.
To earn from illegal investment activities is prohibited in islam even though
the profit is huge . thus, it is vital to insure that our investment activities
are performed based on shariah guidelines to realize the objectives of Islamic
economy in bringing significant changes to the muslim community. Being a
practical and flexible way of life, islam is commited to protect the interest of
the Muslim communities in particular and the entire society in general.