Let me start off by clarifying one thing about this topic--Sharia. It is the Arabic word for the word path (read law or way of life). The word for street in Arabic share the same root (sha ra a) because they have the same meaning of path. If I say this is Mishal's sharia, it simply means that this is Mishal's law or his way of life. To simply use the word Sharia in an of itself leaves no indication of what the writer wants to convey. This would be like saying house or tree or school. We know what do they each mean but what does the writer want to point out about them is not evident.

That said, let me explain a few aspects of Islamic Sharia (or Jurisprudence) that have practical function in the world of business. After all, this is supposed to be a business article.

Commitment - In Islamic Sharia, one has entered a bond between buyer and seller the moment the buyer offers and the seller agrees. That means, in practical terms, if I am shopping for something and I strike a deal with seller and someone else then offers a higher price after the seller and I agree a price, the seller is not allowed to sell to the higher bidder unless I release him from his obligation. Think how much an affect that could have if applied to daily life on bringing prices down. Competition is good but to a limit. Then it becomes counteractive. The seller needs to put a price that makes sense because if he puts one hoping to create a Dutch auction, the Islamic Sharia does not allow this.

Clarity - What is little known about what is and what is not permissible in Islamic sharia as far as business is concerned is that when a seller want to sell his goods, he is obliged to state whether it is at a loss, a gain or breakeven. He doesn't need to mention by how much but he does need to mention the status of the item at play. The reason this is so that the buyer knows that situation that the seller is in and can then negotiate while taking the seller's situation at heart. I know you are thinking that the seller could lie. Yes he ca. But under Islamic Sharia, the cost of lying is great. No I am not talking about cutting hands as some small minds will immediately jump to. I am talking about punishment such as jail time and never being allowed to bear witness and such let alone, and this is an issue of belief in God, of the wrath and anger of the Almighty. There is a lovely story that was told about this during the 2nd Caliph, Omar Ibn Al Khatab's time. A young girl who was selling yoghurt was told by her mother to add water to the yoghurt as it will add weight to it and they can sell more. The girl replied that the 2nd Caliph had banned such practice. The mother said well he is not here so he can't see. The girl's response was that if the Cailph could not see, the God of the Caliph could. This is how much of an effect people who practice the religion can have on a transaction.

Abuse in Trade - In Islamic Sharia, the idea that someone can hold a monopoly over a product or hoard a product to raise the price of that product is an anathema to all what the Islamic understanding of sharing with others. Fairness and competition in ensuring that no item is ever artificially inflated because a company holds the rights to or blocks others from selling the item to shore up his bank account while others suffer. Imagine this in the Pharma industry. I am not saying that those who invested money should not reap the benefits of their hard work. No! This is something Islamic Sharia protects. But the abuse that is rife in the Pharma industry by some players really make us think that perhaps this is not a bad thing to apply. The next time you see your child sick and you know that the cost of a paracetamol tablet is 100 times that of its cost of production including marketing and transportation, you might have a few choice words for the pharamacy or the company that made so much money off your child's pain. Mind you, this doesn't apply to ethical Pharma companies. Yes they do exist.

Hoarding of Land - Did you know that in Islamic Sharia, the idea that a person can buy land, especially arable land, and sit on it doing nothing is not allowed? The scholars have debated the issue of time, that is to say how long, before the land reverts back to the state. This is not to create quick wealth for the land department of the city but because if land is not used, it is wasted land that the community cannot benefit from.

The concept of trade in Islam which is seen by some of the principals that I have written above is done for the purpose of ensuring activity in trade and to ensure that it is done as fairly as possible. This is why you will find that some of the most famous places that became bastions of Islam accepted Islam only because the traders and businessmen who went to those far off lands did not bring the sword but rather goods and service. This was done with good manners and fairness or else Islam would never have anchored itself with the indigenous people of those lands. Take the Philippines, Indonesia and Malaysia. Take South India, Mali and Nigeria. No conquering armies went there. Just traders. If Islamic sharia was such a boogieman like certain people want to portray it, how did Islam flourish there?

I just want to end with this idea. The word Sharia is has no inherent meaning in an of itself. By attaching Islam to it, people jump to the ugly aspects of certain actions taken in the name of Islam. I think it is about time to demystify what Islamic Sharia really means and how it can actually make our lives that much more better if properly applied in business.

Just a thought.