INTEREST-FREE ECONOMY

Abstract

Business activities are very complex, starting from capital, business objects, contracts used and ways of doing business cannot be separated from the reach of the Shari'a. Capital which is an injection of funds to build or develop one's business is often not considered halal. The existence of financial institutions that provide capital services with an interest system creates a dilemma for the community. On the one hand, usury is haram, but on the other hand, if there is no capital from the financial institution, the business will not stand or develop rapidly. Banks as financial institutions through their activities withdraw money from those who channel it to the public, with the main business of providing credit and services in payment traffic and money circulation. For countries that are trying to improve their economy, they have a very important role and position, especially in relation to the economic contacts of other countries. In modern life as it is today, Muslims can hardly avoid muamalah with conventional banks in all aspects of their lives, including their religious life.