EKO - SOCIAL

Karz-ı Hasen

"Karz-i hasen", which literally means "good debt" and is a Qur'anic term, is a debt that a person gives without any interest, expecting the return only fromAllah."Who is he that will loan to Allah a beautiful loan, which Allah will double unto his credit and multiply many times? It is Allah that giveth (you) Want or plenty, and to Him shall be your return."(Bakara: 245)

What is its current use today?

Islamic banks, financial cooperatives and other interest-free financial institutions offer interest-free loans, karz-i hasen funds and financial support to customers based on the principles of karz-i hasen. These institutions can provide loans based on the needs of individuals and businesses.

Zakat

"Zakat" is a religious obligation and social responsibility mandated by the Islamic faith. It is considered one of the five pillars of Islam and serves as an important act of worship and social justice for Muslims. Zakat requires Muslims who possess wealth to annually give a certain portion of their specified assets to help the poor, needy, indebted, travelers, and other beneficiaries in need.

Zakat can be calculated not only on financial assets but also on commercial profits, investments, and other sources of income. Giving zakat strengthens solidarity and social justice among Muslims. This act of worship also helps individuals cleanse their wealth, rid themselves of selfishness, and fulfill their responsibilities to Allah.

Infak (Doing Charity)

Infak is a term in Islamic theology and generally refers to spending wealth or resources in the way of Allah. Infak involves donating or spending one's material or spiritual possessions on charitable causes, helping those in need, or contributing to areas where society requires assistance. Unlike zakat, infak is not a specific religious duty but rather a broader concept encompassing acts of voluntary charity initiated by individuals. Infak is not limited to just donating money or goods; it can also include giving time, effort, knowledge, and other resources. Serving the community with one's skills, abilities, or time, volunteering in fields such as education or healthcare, is also considered infak.

Sadaka (Voluntary Donation)

Sadaka is a term in Islamic theology. Derived from the Arabic word "sıdk," meaning "truthfulness" or "sincerity," sadaka refers to voluntary or obligatory charitable giving by Muslims to those in need. It encompasses financial assistance provided to the less fortunate as a religious obligation or as a voluntary act of kindness.

Islamic Endowments

An endowment is a corporate structure established with the aim of realizing a specific purpose or maintaining a specific service by removing certain property or assets from the ownership of individuals or institutions and dedicating them to the service of society or a specific segment thereof. Endowments generally operate in various fields such as education, health, religious services, social assistance, cultural activities, among others.

Islamic Development Projects

Islamic development projects are being implemented in various fields today.These projects aim to support economic, social, and humanitarian development in accordance with Islamic values and principles. Some examples of Islamic development projects include:

1. Interest-Free Financial Institutions

Islamic banks, finance cooperatives, and investment funds, among other interest-free financial institutions, provide Muslims with access to interest-free financing options. These institutions offer financial services such as interest-free loans, participation accounts, Islamic insurance, and investment products.

2. Social Assistance and Humanitarian Aid Projects

Islamic foundations and associations operate around the world to assist those in need and support social development. Among these projects are food aid, housing support, educational scholarships, healthcare services, and emergency humanitarian aid projects.

3. Education Projects

Islamic educational institutions, schools, universities, and educational foundations provide educational opportunities designed in accordance with Islamic values. These projects may include Islamic education programs, scholarships, educational materials, and teacher training programs, among various other initiatives.

4. Agriculture and Rural Development Projects

Agriculture and rural development projects are developed in accordance with Islamic finance principles. These projects may include agricultural loans, modern farming techniques, and irrigation systems, among others, aimed at agricultural and rural development.

5. Islamic Social Entrepreneurship Projects

Islamic social entrepreneurship projects operate in accordance with Islamic principles and offer solution-oriented approaches to societal issues. These projects include social enterprises and cooperatives operating in various fields such as job creation, poverty alleviation, and support for women entrepreneurship.

Islamic Microfinance

Islamic microfinance is a system based on interest-free finance principles that provides financing opportunities to small-scale entrepreneurs and low-income individuals. At its core, Islamic microfinance adheres to the prohibition of "riba" (interest) and emphasizes fair sharing of risk and profit. Islamic microfinance institutions offer various financial products tailored to the needs of entrepreneurs or low-income individuals. These may include:

1. Interest-Free Loans

Islamic microfinance institutions provide interest-free loans for entrepreneurs to expand their businesses or establish new ones. These loans may be subject to a repayment plan based on the income of the business.

2. Profit-Sharing Investments

Islamic microfinance institutions may opt for profit-sharing investments instead of providing interest-free loans to entrepreneurs. In this case, they make investments in the business based on a partnership principle, and receive a share of the business's profits accordingly.

3. Islamic Development Funds

Islamic microfinance institutions can establish development funds managed in accordance with Islamic principles. These funds provide interest-free credit or investment opportunities to low-income individuals or entrepreneurs.

Islamic microfinance investment refers to the process where these institutions raise funds or investments to increase their income and expand their services to more entrepreneurs or low-income individuals. Islamic microfinance institutions typically create investment funds managed in accordance with Islamic finance principles to raise funds from investors. These funds are then used to provide interest-free credit or participation-based investments. In this way, investors have the opportunity to make investments in accordance with Islamic finance principles, while also providing financing to low-income individuals and entrepreneurs.

Trade Ethics and Moral Values

One of the fundamental principles of Islamic finance is the importance of trade ethics and moral values. Islamic finance operates in accordance with the moral and ethical principles of Islam, promoting fair, transparent, and honest trade practices. The trade ethics and moral values of Islamic finance include:

1. Haram and Halal Principle

Islamic finance rejects the trading of forbidden (haram) goods in commerce and only encourages the trade of permissible (halal) goods. Trading in forbidden items such as alcohol, pork, drugs, among others, is contrary to Islamic finance principles.

2. Justice and Honesty

Islamic finance values the establishment of justice and the preservation of honesty in trade. It requires fair and balanced relationships between parties in commercial dealings, emphasizing the importance of adhering to contracts.

3. Transparency and Accountability

Islamic finance institutions promote transparency and accountability in commercial transactions. Customers should be provided with clear and comprehensive information about transaction details and their financial status.

4. Social Responsibility

Islamic finance emphasizes that trade is not solely about profit but also carries the responsibility of benefiting society. It underscores the importance of commercial activities contributing to the social and economic development of the community.

5. Principles of Interest-Free Finance

Islamic finance is based on the principles of interest-free finance. It rejects the payment of interest (riba) and provides financing for trade using interest-free financial models.

6. Fair Sharing of Risk and Profits

Islamic finance promotes the fair sharing of commercial risks and the distribution of profits based on partnership principles.

These values represent the fundamental principles of Islamic finance that emphasize the importance of ethical and moral values in commerce. Islamic finance institutions operate in accordance with these principles, aiming for trade to be conducted in a just, honest, and socially beneficial manner.

Hisbe

"Hisbe" refers to measures taken in Islamic law and Islamic societies against improper commercial practices such as unjustified price increases, fraudulent trading and fraud in the market or trade, in order to protect public order and social justice. Hisbe is enforced by individuals or institutions appointed to prevent such abuses and to ensure a fair environment in trade.

EKO - SOCIAL

HELAL EKO

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