Appendix C — The Modern Reality of the Prophet’s Warning About Riba
The Prophet Muhammad (SAW) said:
“A time will come upon the people when there will be no one left who does not consume riba, and whoever does not consume it will still be affected by its dust.”
(Abu Dawood 3331)
This prophetic statement perfectly describes our modern economic landscape, where riba (interest) is so deeply woven into nearly every financial transaction that even those who avoid direct involvement still feel its effects. Below is a closer look at how riba has overtaken contemporary finance, making it nearly impossible to remain untouched by its “dust.”
How Riba Has Taken Over the Modern Economy
- Every Bank Operates on Riba
- Almost all banks lend money with interest, profiting from debt.
- Even if you don’t take an interest-based loan, your savings are often used by banks to issue loans at interest.
- Simply keeping money in a bank typically supports riba-based transactions.
- Almost all banks lend money with interest, profiting from debt.
- Inflation: The Silent Tax on Everyone
- Because fiat currency is created through debt, governments borrow money with interest and print more when necessary.
- This inflates the money supply, driving prices up and devaluing your savings.
- Even if you never borrow, your purchasing power shrinks due to the riba-driven inflation cycle.
- Because fiat currency is created through debt, governments borrow money with interest and print more when necessary.
- Mortgages & Loans: Trapping People in Lifelong Debt
- Most individuals need interest-based loans for significant expenses like homes, cars, and education.
- Decades can pass repaying a mortgage that costs far more than the house’s actual value, due to compounded interest.
- A large portion of one’s working life is spent just servicing these riba-based debts.
- Most individuals need interest-based loans for significant expenses like homes, cars, and education.
- Businesses and Governments Are Drowning in Interest-Based Debt
- Major corporations and even entire governments rely on interest-based bonds to fund operations.
- Tax revenue often goes toward repaying these colossal debts plus interest.
- Even if you personally avoid riba, you still shoulder its burden through higher taxes, inflation, and rising living costs.
- Major corporations and even entire governments rely on interest-based bonds to fund operations.
“The Dust of Riba”: How Even the Innocent Are Affected
- Grocery Stores: May have taken a loan at interest to stock inventory, indirectly passing costs on to customers.
- Renting: Landlords often have mortgages at interest, reflected in monthly rent prices.
- Government Services: Taxes help pay off national debts, which frequently carry sizable interest obligations.
- Savings and Inflation: Simply saving money in a bank exposes you to inflation, a byproduct of riba-fueled monetary policy.
Even those who never directly take an interest-based loan face higher costs, diminished purchasing power, and systemic debt pressures, fulfilling the Prophet’s warning from over 1,400 years ago.
The Path Forward: Minimizing Exposure to Riba
Although total avoidance of riba is incredibly challenging today, individuals can take meaningful steps to reduce their reliance on it:
- Store Wealth in Real Assets
- Rather than holding only fiat currency, consider gold, real estate, and productive businesses that maintain intrinsic value.
- This hedges against inflation and the devaluation linked to interest-based lending.
- Rather than holding only fiat currency, consider gold, real estate, and productive businesses that maintain intrinsic value.
- Use Islamic Banking & Financial Models
- Support institutions offering Shariah-compliant finance, avoiding interest-based structures wherever possible.
- Adopt Profit-Sharing Partnerships
- Instead of borrowing on interest, seek ventures or business deals that share both risks and rewards equitably.
- Minimize Debt Dependency
- Live within your means and steer clear of loans requiring riba-based repayments, especially for non-essential items or lifestyle inflation.
Conclusion: The Fulfillment of a Prophecy
The Prophet Muhammad’s (SAW) words have indeed come to pass in our era—riba pervades daily transactions so thoroughly that no one is entirely free from its repercussions. We all endure its “dust” via inflation, taxes, and the debt cycles woven into modern financial systems.
Yet, acknowledging this reality is the first step toward meaningful change. With greater awareness of riba’s harmful impact, we can make more informed financial choices—opting for ethical alternatives that align with Islamic principles and promote fairness. As the Qur’an reminds us:
“And if you repent, then you shall have your capital sums. Deal not unjustly, and you shall not be dealt with unjustly.” Quran (2:279)
By striving to limit our involvement in interest-based transactions, we preserve both moral integrity and economic well-being, forging a path that benefits ourselves, our families, and future generations.