UAE Fatwa Q&As: Should one return earnings made through haram means?



Q: Someone I know has gained money from haram (forbidden) sources, which he earned before repenting and turning to Allah. He is wondering whether he can use the money as a capital for a business?

A: Scholars such as Imam Ghazali and Imam Nawawi noted that among the conditions of true repentance are that: “If someone’s money is from a haram source then, as part of their repentance, they should rid themselves of it, by either handing it back to its owner, if there is one, or to his agent.

“If the original proprietor is dead, then that money must be given to his heirs.

“However, if the owner cannot be identified or there is no way to find him, the money should be spent on charitable services benefiting the community, or offering it to the poor, among other things.”

The point the scholars are making is that one should not continue to benefit from the money personally after repenting and instead should exhaust all avenues in either returning it to its owner or spending it on good.

Q: If the Prophet Mohammed loved Mecca so much and it was the dearest place to his heart, then why did he choose to stay in Medina until his death, even after the conquest of Mecca?

A: After Hijrah (the migration to Medina), Prophet Mohammed implored Allah to make him love Medina as much as Mecca or even more. Allah accepted his supplication.

It is narrated that Aisha (Prophet Mohammed’s wife) said: “When we came to Medina, and it was an unhealthy, uncongenial place to us, Abu Bakr and Bilal fell sick and when Allah’s Messenger saw the illness of his companions he said: ‘O Allah make Medina as congenial to us as you made Mecca, or more — make it conducive to health’.”

Thus Medina became dearer to the Prophet Mohammed than Mecca, as asserted by some. It was said that he became so fond of the city that upon sight of it he would move his mount as a show of delight. And Allah knows best.

If you have a question for Awqaf, email newsdesk@thenational.ae with the subject line ‘Fatwa Q&A’.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

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Tips for used car buyers
  • Choose cars with GCC specifications
  • Get a service history for cars less than five years old
  • Don’t go cheap on the inspection
  • Check for oil leaks
  • Do a Google search on the standard problems for your car model
  • Do your due diligence. Get a transfer of ownership done at an official RTA centre
  • Check the vehicle’s condition. You don’t want to buy a car that’s a good deal but ends up costing you Dh10,000 in repairs every month
  • Validate warranty and service contracts with the relevant agency and and make sure they are valid when ownership is transferred
  • If you are planning to sell the car soon, buy one with a good resale value. The two most popular cars in the UAE are black or white in colour and other colours are harder to sell

Tarek Kabrit, chief executive of Seez, and Imad Hammad, chief executive and co-founder of CarSwitch.com