Qur’anic Concept of Al-Bay & Al-Riba

Abstract

Qur’an has used two terms al-bay & al-riba to represents reward of labor & capital respectively. According to Qur’an reward of each & every capital (asset) is included in alriba and it is not just restricted to debt as the prevailing concept of riba claims. Same as it does not mean that just very high rate of interest (usury) is riba. On the other hand al-bay means a particular type of transaction in which increase in capital is due to human effort and this transaction should not be harmful to society & for the persons who are involved in it. So this debate should be taken as reward of Capital (assets) Vs reward human labor. Qur’an has prohibited the former & allowed the latter.