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Glossary

Halal

Category — Islamic Finance
In the Islamic economic system, all economic activities are grouped into permissible (Halal) and prohibited (Haram) transactions.

Еconomic goods, food items, inheritance, inheritor’s properties, rights, etc., all have their rulings spelt out in the Quran.

1. Halal Consumption:

Islam has given a detailed code of rules concerning permitted and prohibited forms of spending.

Permitted Forms:
•Spending wealth to fulfil the basic needs of life such as food, clothing, and education.
•Spending wealth to obtain such comforts of life to increase one’s efficiency.
•Spending wealth on the upbringing and training of one’s children, helping the kith and kin, serving and entertaining guests, travellers, and neighbours, performing social services, charity.

2. Halal in the Production of Wealth:

Islam explains in detail the right and wrong means of earning wealth.

Lawful Means:
•Earning by hand i.e., mental or physical labour
•Wealth derived from inheritance, gifts.
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