'The Contract of Qirad' by Umar Vadillo and a special introduction to 'Root Islamic Education' written by Shaykh Abdalqadir as-Sufi

'But, … Malik, …. Malik is the source, without any question. So going back to Imam Malik is not going back to one of the many ( a choice of one from many ), it is going back to THE direct source for all. It is the source for the people in Iraq and for everybody else. And out of all the matters of which Imam Malik is the strongest, he precisely has almost unique knowledge in the matters of the Amal of the ahlal Medina.'




'Qirad is a contract for a loan of money for a business transaction. It is a contract for a business loan. Strictly a loan of money from an investor to an agent.'

'Qirad is the word used in Medina. The word used in Iraq is mudharaba. They both means the same.'

'The contracts performed by the islamic banks today are completely distorted. It is impossible to call the contracts performed by islamic banks as qirad or mudharaba. Present banking contracts is a complete deviation meant to validate riba.'

'If you do not know what is haram, then the whole things becomes blurr. Then what is 'halal' and what is 'haram' are all mixed up. Resulting today, transactions that are completely haram, without any question, are made halal.'

'Ferdinand Braudel, a french historian is the very few historians that paid attention to the economic development and the life of people. He considered that the key for the uplifting, the creation and the success of the Italian city-states was the adoption of the new contract bought from the east called qirad. In the west qirad was called commenda. It showed the enormous power of qirad.'

'When the interest rates appeared, qirad slowly vanished. Nobody could compete with the banks, who could offer credit for nothing. They were creating money out of nothing, while imposing tax on everybody else.'

'Conditions for qirad 1.Qirad starts with money and ends with money. 2.No collateral 3. No timing (period) for contract 4. Profit of business is split according to the percentage established between agent and investor.'

'How was this done in Medina without collateral? The people had honour. This was a community of people with honour. In this time the honour of an individual was his collateral (capital).'

'Without collateral, the agents are chosen by their referral (recommendations) and an acceptable track record in being an agent.'

'Money, Market (Suq) and Qirad – these are what I call the Core Mechanism. And according to core mechanism of Muamalat, once these three elements are put into place the whole synergy between the three of them will make the whole phenomenon of Muamalat unstoppable.'