INTERNATIONAL BUSINESS TRANSACTION FROM THE ISLAMIC ECONOMICS PERSPECTIVE

Abstract

International business transaction deals in differently from the local or domestic business trading. In the international business transaction, Muslim ummah transacts with non–Muslims all over the world. Therefore, this article tries to explain the business relationship between Muslim and non–Muslims, the types of non–Muslims from the perspective of fiqh mu‘amalat and the views of Muslim jurists with regards of bilateral business relationship between Muslims and non–Muslims. All the views are based on evidence (Dalil) from al–Qur‘an and al–Hadith of Prophet Muhammad (s.a.w.), as well as views from four very famous schools of jurisprudences. This article also tries to clarify the principles of international business from the perspective of Islamic economics. These principles are imperative to be applied and practiced by Muslim entrepreneurs in dealing internationally.