Kasb
Definition
Kasb (Arabic: كسب) in Islamic legal terminology refers to legitimate economic gain attained through commercial transactions. It contrasts with riba (Arabic: ربا), which is often translated as “usury” or “interest”, representing illegitimate economic gain.
Etymology
The term “kasb” is derived from the Arabic root “ك-س-ب” (k-s-b), which conveys the meaning of earning, gaining, acquiring, or securing income through lawful means.
Turkish Translation
- Kazanç
Legal Context
Islamic jurisprudence permits profit-making as long as it adheres to principles of fairness and absence of exploitation. Several categories of financial partnerships govern legitimate economic activities, further emphasizing ethical profit maximization:
- Shirkah (شِرْكَة): General partnership where two or more parties contribute capital and share profits and losses proportionately.
- Qirad (قِرَاض): A form of loan based on profit-sharing, often seen as an arrangement between a lender and a borrower engaging in a business venture.
- Mudarabah (مُضَارَبَة): A limited partnership where one party provides capital while the other contributes expertise and management skills. Profits are shared as per agreement, while the financial risk is borne solely by the investor.
Principles
- Profit from Service: Earning by offering service or product that meets essential human needs.
- Shared Risk: A balanced approach to risk, protecting all involved parties from undue harm.
Suggested Readings
For a deeper understanding of the concept of Kasb and its application in Islamic law:
- “Islamic Finance: Law, Economics, and Practice” by Mahmoud A. El-Gamal
- “Understanding Islamic Finance” by Muhammad Ayub
- “The Theory of Islamic Finance” by John Desmond Balawi
Takeaways
- Kasb delineates the Islamic ethical framework for legitimate earnings within commercial activities.
- Economic activities should avoid riba, focusing instead on equitable profit through partnerships and shared risks.
Conclusion
The concept of Kasb underscores the importance of ethical considerations in economic transactions according to Islamic jurisprudence. By fostering fairness, service-oriented earning, and shared risk, Kasb ensures that economic activity contributes to social justice and moral integrity.
By understanding these key elements, one can appreciate the pivotal role that lawful economic practices play in fostering a just and sustainable economic environment in accordance with Islamic principles.
