Question

1-khadija borrow 50 grams of gold from Maria on 1 January 2019. She promises Maria to return back the gold on 1 July 2019 plus Omantel 20 GB package of internet. Khadija sells the gold in the market at OMR 17/gram and she receives OMR 80 from the sale. On July 1st, 2019, the price of gold increase from OMR 17/gram to OMR 19. So that price of 50 gram of gold is OMR 950. Because the price of gold increase, Khadija only return the 50 gram gold. What sharia rules on gold borrowing? What sharia said about transaction between Khadija and Maria is it sharia compliance? And what your sharia basis to say that?

Answer 1

Under Sharia Law,gold is considered a Ribawi Item.A Ribawi Item can be exchanged only by weight and measure,and the transfer of goods must occur immediately.This means that the item cannot be traded for some future value or for speculation.There are six Ribawi items-gold,silver,barley,wheat and dates.

The transaction between Khadija and Maria is not in compliance of Sharia Law.Since under Sharia Law,paying or earning interest is viewed as exploitative and is prohibited.In the given case Khadija agree to recieve the 20GB package of internet as an interest.They also trade in gold for future value.