What Is Qirad: His Law In Islam And The Forms Of Business Cooperation

What is qirad (Freepic)

YOGYAKARTA - Qirad is a term that is often used in the context of cooperation and investment. To establish an agreement between investors and companies, both parties made agreements in the qiradh contract. So what is qirad and its laws in Islam?

In the world of trade, as business owners, you always present the latest products and innovate to meet the needs of the community. But what if Muslim traders face capital constraints? As a solution, Muslim traders can obtain financing to develop their business through the qiradh contract.

For those of you who are involved in the business world, you need to know what qirad is and the forms of cooperation.

Qirad is the activity of handing over assets from shahibul malls (capital voters) to mudharib (capital managers) by replying to gain profits for owners and capital managers. Then what is the difference between qirad and mudharabah? In principle, qiradh and mudharabah are the same.

This is in accordance with the fatwa of the National Sharia Council of the Indonesian Ulema Council No. 07/DSN-MUI/IV/2000 concerning the Financing of Mudharabah (Qiradh). The difference is that the qirad is commonly used by Syafi'iyah and Malikiyyah, while the mudharabah is often used by the Hanafi, Hambali, and Zaidiyah schools.

The implementation of the qirad has been the case for a long time and has been implemented by Hijaz residents and Syafi'i madzhab followers. At that time, qirad was a form of giving capital to businesses in the form of assets to individuals or groups. Qirad himself has been allowed in Islamic teachings.

Then a fiqih cleric from Egypt, Sayyid Sabiq, said that qirad is the handover of capital to people who trade. From this capital, the owner of the capital has the right to get a profit in the form of a percentage.

The same thing is also written in the book Fathul Qarib al-Mujib, Syaikh Muhammad ibnu Qasim al-Ghazy expressed his opinion on the definition of qirad. In Indonesia, the National Sharia Council - Indonesian Ulema Council (DSN-MUI) describes the definition of qiradh which is similar to the understanding of scholars.

In the Fatwa of the National Sharia Council Number 20/DSN-MUI/IV/2001 concerning Guidelines for the Implementation of Investment for Sharia mutual funds. Calling qirad a contract or system when someone submits their property to someone else to be managed.

In managing assets (in the form of capital or assets), capital managers get profits. These profits are divided among both parties according to the agreement.

This percentage of profits has been explained in detail at the beginning of the agreement. Including an explanation of the losses will be borne by the mall's shahibul as long as there is no negligence factor from the mudharib.

In Indonesia, Islamic financial products and banking are based on a fatwa issued by the National Sharia Council of the Indonesian Ulema Council (DSN-MUI). In addition to the DSN-MUI Fatwa No. 20, provisions regarding qiradh are also regulated in other fatwas.

One of them is stated in the DSN Fatwa No. 07/DSN-MUI/IV/2000 concerning the Financing of Mudharabah (Qiradh), which states that the Sharia Financial Institution has the right to ask for collateral from customers or third parties.

In Islamic teachings, there is a history that the Prophet SAW had applied the practice of qiradh when he ran a business to Syam with Siti Khadijah, before he married her.

In the history of Ibnu Majah, the Prophet SAW said:

There are three kindnesses that are blessed, namely buying and selling transactions that are suspended, providing capital, and mixing wheat wisely for the needs of the family, not for sale. (HR. Ibnu Majah).

Then in the Quran it is also stated the legal basis for allowing qiradh. In the letter Al-Baqarah it is stated which means:

"Whoever borrows Allah with a good loan, then Allah doubles in exchange for him in many. Allah holds back and levies (sustenance) and to Him you are returned." (QS. Al-Baqarah : 245)

In the letter Al-Hadid, it is also stated which means:

"Whoever lends to Allah with a good loan, then Allah will return it multiplied for him and for him a noble reward." (QS. Al-Hadid : 11)

Qirad is not only applied in inter-individual transactions, but can also be carried out by certain organizations, institutions, or business entities. Based on the implementation period, the Qirad is divided into two types, namely traditional Qirad and modern Qirad.

Simple Qiradh is a form of cooperation between individuals with a wage system in the form of profit sharing from the business being run. This type of qiradh has been implemented since before Islam developed.

In a history it is stated that the practice of qiradh existed before the Prophet Muhammad SAW was appointed a prophet. At that time, he collaborated with Siti Khadijah, who at that time was not yet his wife.

In this collaboration, Siti Khadijah acted as the owner of the capital that provided funds to the Prophet SAW to be managed in trading activities. Until now, the form of simple qiradh is still practiced, both in urban and rural environments.

Modern Qiradh is an agreement involving individuals with Islamic financial institutions or banks. The mechanism is almost the same as simple qiradh, but in this case, customers act as owners of funds that store or save money in Islamic banks.

Furthermore, Islamic banks will manage these funds and share profits with customers through a profit-sharing system.

Such is the review of what is qirad in the need for cooperation and investment. In Islam, qirad is a thing that is allowed according to the Qur'an and has been done by the Prophet Muhammad SAW. Also read the level of gold and silver zakat.

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