(Judge at the Islamic Shariah Council, London & Shariah Supervisor at Islamic Bank Britain)
Mufti Barkatullah Qasmi
Mufti Barkatullah Qasmi is a notable figure in the realm of Islamic finance, serving as both a Judge at the Islamic Shariah Council in London and a Shariah Supervisor at Islamic Bank Britain. His expertise and involvement in Shariah-compliant banking have made him an influential voice in promoting Islamic financial principles in both the UK and internationally. Recently, Mufti Barkatullah has extended his influence to India, where he offers advice to financial institutions on implementing Shariah-compliant banking systems.
Mufti Barkatullah Qasmi emphasizes the relevance of Islamic principles in today’s financial world. He highlights that many of the forms and guidelines currently used in global financial transactions were outlined over 1400 years ago in the Qur’an, particularly in Surah Al-Baqarah. This chapter stresses the importance of recording all financial transactions, a concept that is essential in the modern world of contracts and financial documentation.
Mufti Barkatullah Qasmi underscores that with over 500 Islamic banking institutions and 400 Islamic funds operating in nearly 70 countries, interest-free banking has become a global trend. He argues that this is the right time for India to adopt Islamic banking practices, especially considering the global financial environment's increasing focus on ethical finance. As the world faced the recent financial recession, ethical financing models, including Islamic interest-free banking, have gained prominence. Islamic financial institutions, according to Mufti Barkatullah Qasmi, have been relatively insulated from the recession’s adverse effects and, in some cases, have even outperformed traditional financial systems.
The key difference in Islamic finance, Mufti Barkatullah Qasmi notes, is its focus on transparency, ethical dealings, and agreements that are fair to all parties involved. The Islamic system of economy provides clarity and justice in financial dealings, steering clear of practices deemed oppressive in Islam, such as charging or receiving interest (riba). The system is built on the principles of fairness, trust, and transparency, where each party has an equal share in both profits and losses. Mufti Barkatullah Qasmi highlights that this contrasts starkly with modern financial practices, which often involve hidden elements, including interest charges, that Islam views as unjust.
Mufti Barkatullah further explains that in Islam, Allah Himself is seen as overseeing any financial transaction, as long as it is based on fairness and transparency. This divine oversight, he adds, encourages Muslims to uphold ethical standards in their dealings. One example of unethical practice condemned in Islam is the concept of short selling in the share market, where deals are made without the actual goods being in possession. Mufti Barkatullah points out that several countries have banned short selling in response to the financial crisis, inadvertently endorsing Islamic financial principles, which prohibit such speculative practices.
Mufti Barkatullah also addressed the issue of insurance within Islamic law. While some may believe that Islam is opposed to insurance, Mufti Barkatullah Qasmi clarifies that it is not the concept of insurance itself that is problematic, but rather the means by which it is often secured. He cites Takafful insurance, a form of cooperative insurance based on Islamic principles, which has taken root in several Gulf countries.
According to Mufti Barkatullah, Islamic finance is not just beneficial for Muslims but also attracts a diverse clientele. In countries where Islamic banking operates, approximately 40 percent of the clientele consists of non-Muslims. This statistic underscores the appeal of Islamic finance’s ethical foundations to a broad spectrum of individuals seeking an alternative to conventional banking systems.
In the Indian context, Mufti Barkatullah sees great potential for the adoption of Islamic banking principles. He notes that foreign firms have already invested in major projects like the new airport near Panvel, Mumbai, based on an equal profit-and-loss sharing model, which aligns with Islamic banking principles. He argues that introducing Islamic banking in India could provide a significant boost to the country’s economy while also benefiting its Muslim population, who have long been underserved by traditional financial systems.
Speaking on the broader economic condition of Muslims in India, Mufti Barkatullah’s insights align with those of Mr. Gaffar Shaikh, Managing Director of the Maulana Azad Minorities Financial Development Corporation. Shaikh emphasizes the challenges Muslims face in accessing both business opportunities and government jobs. He notes the lack of awareness among the Muslim community about central and state welfare schemes designed to alleviate poverty, with many Muslims unable to take advantage of these programs despite approximately 30 percent of the community living below the poverty line. Shaikh also highlights the crucial role NGOs play in implementing international and domestic welfare programs, lamenting the scarcity of Muslim-focused NGOs.
Mufti Barkatullah’s call to adopt Islamic finance in India offers a vision of economic empowerment not only for Muslims but for all citizens seeking ethical, transparent, and just financial systems. His extensive experience in Shariah-compliant banking, both in the UK and internationally, makes him a vital advocate for the introduction of these principles in India’s financial landscape.