Overview (Verse 277)
 
In Perfect Contrast with Usurers
 
In contrast to the preceding example of disbelief and wrongdoing, the sūrah presents the case of faith and righteousness, highlighting the essential attributes of the community of believers and the basis of the economic system which disavows usury and has the firm foundation of the important institution of zakāt: “Those that have faith and do good deeds, attend regularly to their prayers and pay zakāt, shall have their reward with their Lord. They shall have nothing to fear, nor shall they grieve.” (Verse 277)
 
The main element in this verse is that of zakāt which denotes giving willingly, expecting nothing from any human being in return. The verse also introduces a feature of the community of believers and one of its important pillars, before it goes on to describe the total reassurance, tranquillity and happiness such a community enjoys.
 
The institution of zakāt represents the foundation of a caring, sympathetic and supportive society, which has no cause to resort to usury in any aspect of its life. The image of zakāt has faded somewhat in the minds of those unfortunate generations of Muslims who have had no experience of life under Islam. They have not seen Islamic laws, ethics and principles shaping the daily lives of people, and creating a healthy, virtuous, decent society. They have had no experience of how zakāt works in practical terms to bring about economic growth and prosperity as a reward for individual diligence and honest cooperation.
 
These generations have become accustomed to the odious effects of the materialist usurious system, which promotes greed, unashamed self- interest and social antagonism. They have come to accept that economic and commercial life cannot be run without usury, although under this system, the transfer of wealth is often accompanied by exploitation, while people who have no money have no security in life, and industry and commerce become hostages to the moneylenders.
 
To contemporary eyes, zakāt appears as an outdated form of charity that does not fit into modern economic or financial systems. Yet zakāt is paid out by people educated by Islam to implement Islamic laws and regulations, and to establish a system that can hardly be imagined by those who have never experienced it. Zakāt is levied by Muslim authorities at the yearly rate of 2.5 per cent on liquid money (or 5-10 per cent on crops, and 20 per cent on mineral resources), as an incumbent duty rather than optional charity. The authorities then distribute the proceeds among those in need in the community as widely as possible, in order for the beneficiaries to meet their basic necessities and alleviate their hardships. Debtors who are insolvent are helped with zakāt money to settle their debts, whether these are personal or commercial. Poor people are helped to find appropriate work that makes them self- sufficient.
 
The form in which such a system operates is of secondary importance: what is important is the spirit in which the system and society come together and function as a whole to bring about genuine care and effective social welfare.
 
God promises those who conduct themselves according to the ethics and principles of faith, in submission to the divine will and in a spirit of cooperation, that they “shall have their reward with their Lord. They shall have nothing to fear, nor shall they grieve.” (Verse 277)
 
On the other hand, God threatens the advocates of usury that theft will live in fear, confusion, and insecurity, and that their society were to disintegrate. History has witnessed the benefits of the Islamic, non_ usury system and its results in human society. It is today witnessing the disastrous and oppressive effects of the usury- based system that forms the core of contemporary civilization. We Muslims only wish we could make others see the force of our argument against the evils of usury, but all we can do is present the facts and hope that people will listen and heed our warnings and advice.