Definition and Meaning§
Kasb (كسب) in Islamic legal terminology refers to legitimate economic gain acquired through commercial transactions. It is a foundational concept in Islamic finance that delineates lawful profit, in contrast to illegitimate economic gains such as riba (often translated as “usury” or “interest”).
Etymology§
The Arabic root ك-س-ب (k-s-b) translates to “to earn” or “to acquire,” emphasizing the concept of gain through one’s efforts.
Background and Historical Context§
Historically, Islamic scholars have rigorously delineated legitimate and illegitimate forms of profit-making to ensure ethical conformity in economic activities. The fundamentals of Kasb have been discussed since the early Islamic era, with foundational texts appearing as early as the 8th and 9th centuries CE during the Abbasid Caliphate.
Key Concepts§
- Shirkah (شِرْكَة) - general partnership allowing shared capital and labor.
- Qirad (قِرَاض) - a form of profit-sharing loan contract.
- Mudarabah (مُضَارَبَة) - a limited partnership where capital is provided by one party and expertise by another, with profits shared according to pre-agreed ratios.
Each of these practices hinges on profit derived from service, mutual consent, and shared risk - contrasting sharply with illicit gain from usury or exploitation.
Cultural Differences and Similarities§
The concept of Kasb is recognized in various Muslim cultures, including Arab countries, South Asia, and Southeast Asia. While the foundational principles remain consistent, practices may differ slightly depending on local customs and legal systems.
Synonyms and Antonyms§
- Synonyms: Halal profit, Lawful earning
- Antonyms: Riba (Usury), unethical profit
Related Terms§
- Riba (ربا) - Interest or usury, considered sinful.
- Tijarah (تِجَارَة) - Trade or commerce.
- Fadl (فَضْل) - Surplus or gain, can also indicate grace or favor in a non-commercial sense.
Quotations§
- “Trade is permissible through mutual consent.” - The Qur’an, Surah An-Nisa (4:29)
- “Transfer of property involving profit is contracted either for immediate products, such as purchases and sales, or for an employment of capital resulting in deferred profits, such as leasing, hiring, loaning, or cost-plus-profit contracts.” - Al-Muwatta of Imam Malik
Interesting Facts§
- Mudarabah agreements were early forms of venture capital.
- Islamic financial institutions conduct transactions and structure their products to avoid the pitfalls of non-compliance with Kasb.
Advice for Further Study§
- Books:
- “Islamic Finance: Law, Economics, and Practice” by Mahmoud A. El-Gamal.
- “The Guide to Islamic Banking and Finance” by Faizal Karbani.
- Articles:
- “The Principles of Islamic Finance” in The Journal of Islamic Finance.
- “Understanding Kasb: Economic Gain in Islamic Jurisprudence” in Muslim World Journal.
Translations§
- Arabic: كسب (Kasb)
- Urdu: کسب (Kasb)
- Persian (Farsi): کسب (Kasb)
- Turkish: Kazanç
- Indonesian: Penghasilan Halal
- Bengali: হালাল আয়ের (Halal āẏēra)
With this exploration of Kasb, may your curiosity guide you through the ethical landscapes of Islamic finance. Remember, knowledge is the beginning of wisdom.
Khalid Ahmed, October 2023
