Prohibition of riba (interest) and insurance in the light of Islam

Islam forbids interest in all forms and amounts. Interest exists in trades of goods as well as in trades of money. While zaka transfers wealth from the rich to the poor, interest does the opposite. Interest is not trade. It leads to many problems in a society, breeds covetousness, reduces the sense of God as one's Sustainer, and lessens compassion for other humans. The Prophet addressed interest in his farewell address. The Qur'an commends trade. Muslims are prohibited from earning through bribery, games of chance, and fortune telling. Interest is so pervasive in modern economics that many people doubt it can be eliminated. In an interest-bearing system, some idle people earn money on the labor of others. Riches are concentrated in a small group. According to Islam, man is God's vicegerent on earth. No concept of financial practices with guaranteed returns exists in Islam. © Author