Sharia
Categories: International
Miley Cyrus might have taught us about the climb, but today we’re here to talk about the path. Specifically, we’re here to talk about “sharia,” an Arabic word that translates to “the path,” but encompasses oh so much more than just a muddy trail through the woods. (Fun fact: we might also see it spelled “shariah” or “Shari’a,” and we’ll also see it capitalized in some places and chillin’ in lower case in others.)
In the Islamic world, “sharia” refers to the religious laws that guide behavior and help ensure a fair and just society. This isn’t a random path to Grandma’s house we’re talking about here; this is the path to good Islamic living.
Anyway, just like any large body of laws, the topics covered by sharia law are varied and wide-ranging. (And some of those topics, we should point out, are hugely controversial, even within the Islamic community. Like stoning people, which is, um...kind of a questionable move.) But when it comes to finances and investing and all that good stuff, probably where we’re most likely to see the influence of sharia law is when it comes to lending and borrowing money. That’s because sharia law is pretty specific about one point: charging someone interest to borrow money is shady, and we can’t do it. This is a pretty big difference from our own lending system, and it might mean we need to change the way we do business with Islamic partners or clients.
We should also probably be aware that certain industries and types of businesses are not okay under sharia law. Alcohol, tobacco, firearms, and other weaponry, gambling, pork, and porn are all heavily restricted, if not completely forbidden industries (stoning is still okay though), so our connection to any of them might impact our ability to do business in the Islamic world. Now...since more than half of the world’s Muslims say there are multiple ways to interpret sharia law, Western companies can have a hard time muddling through what they can, can’t, should, or shouldn’t do. Happily, there are many experts and advisors out there who can help us keep from trampling someone else’s path in an effort to pave our own.
