Hi People!
As you know, Electronic Commerce has grown a lot in our days. There's few people who has not ordered something via internet in Amazon or eBay or sites like those in our culture.
The fact is that in our western culture business tend to be agile without to much strict law. But it doesn't mean that in all places of the world it is like that. And altough it is inevitable for a country to be touched Globalization (Unless they are like North Korea) many islamic countries have specific laws in the way the must conduct business.
Lets begin talking about e-commerce. ¿What is it? "The use of electronic transmission mediums to engage in the exchange, including buying and selling, of products and services" [Greenstein Marilyn, 2001 ]. Now let's see which benefits it gives to us:
As you can see it has a lot of benefits, but nevertheless it has also some risks:
1. Security
2. Product quality
3. Payment problem
4. Product delivery problem
5. Difficulties to locate right web site.
Islmace people "places more value on someone's word as opposed to a written agreement. A person's word is connected to their honour". So for them, having business without speaking is hard, as they are not putting their honor in risk.
According to the Qur'an, Allah has prohibited interest but accepted trade, these are the literal rules taken from Qur'an.
- "Alla hath permitted trade and forbidden usury" (2:275)
- "When you have finished your prayer, then disperse, seeking the grace of God in WORKD AND TRADE".(62:10)
- "There is no harm in trading while ye are engaged in pilgrimage". (2:192)
- "O man of faith! Do not devour the goods of another with injustice but trade based on mutual agreement and good-will is allowed". (4:29)
- "O ye who believe fear Allah and give up what remains of your demand for usury, if you are indeed believes". (2:278)
From the above, we can see that trade can be donde only if there's no injustice or usury interest. To the islam e-commerce is a way of Bai-Salam (buying and selling in advance), and the conditions applied to Bai-Salam are:
- Price fixed with offer and acceptance.
- Pay in cash or goods,
- Products have to be clearly identified.
- Delivery date has to be fixed.
Thus we can see that no all the rules are applied in e-commerce, in some cases when you buy online the things don't come as you saw them, or the delivery date is not the one you expected. But companies doing e-commerce in Middle-East should strictly follow these rules.
In spite of having so many rules, the e-commerce has grown a lot in this region. According to "BusinessIntelligence" Middle East (www.bi-me.com) on February 7 2010, the "Growth of Middle-East e-commerce are expected to surpass 15% in 2010...(...)... The region also reported the highest internet growth rate in the period 2000-2009 at 1648.2%".
Thus, we can see that even the region has very strict business laws, people is investing there and beggining to do all type of businesses.
Sebas Posada
Info taken from: