How to Do Business and Invest like Prophet Muhammad (PBUH)

How to Do Business and Invest like Prophet Muhammad

To reach our financial dreams, we can’t rely just on our cash in the bank account. We know that our money in the bank will not be able to generate high profit. Besides, inflation will erode its value without us realizing it. Therefore, every financial planner always suggests their clients to have any financial instruments or investments. The number does not have to be big, as long as we make it consistently. Muslims also must remember to drive only halal investments. In this case, our best example is our Prophet Muhammad (PBUH). Let us learn how we can do business and invest like Prophet Muhammad (PBUH).


1. Business

Prophet Muhammad was a great businessman. His reputation had been very famous among people in the Arabian Peninsula. They even called Prophet Muhammad al-Amin, referring to a trustworthy person. Thus, many people asked him to be their business partner.

Prophet Muhammad started his business career when he was 12. His uncle Abu Talib taught him how to do business by inviting the teenage Muhammad on a business trip to Syria. It sharpened his business skill. Muhammad grew up to be an entrepreneur who was honest as well as competent. Prophet Muhammad (PBUH) started from small. At first, he was only a worker. Due to his skill and competency, he was then trusted to be a supervisor, a manager, and eventually an investor.

2. Livestock

When Prophet Muhammad (PBUH) was 10 years old, he asked his uncle Abu Talib to shepherd his sheep and goats. He often took the animals to the valleys and hills where they would graze during the morning. In this way, he was able to help his uncle save money because Abu Talib did not need to hire a shepherd. As an adult, Prophet Muhammad (PBUH) also owned dozens of camels which succeeded in increasing his wealth. If you are interested in livestock, you can start the business and follow its success.

3. Land and property leasing

Prophet Muhammad (PBUH) made his first investment by renting lands to the Jews with a profit-loss sharing concept. He rented a date plantation and land in Khaybar to Jews. During the period, he let them stay on the land, cultivate it, and share the profit at the end. Such a profit-loss sharing concept then is defined as mudaraba. If you have unused lands or properties, it is good to rent them out. In this way, you can generate another passive income. You can also apply a profit-loss sharing concept if your lessee is using it for a business.

In addition, mudaraba is the concept applied in stock investments. Your money is an asset. Once you invest it in a business, you will get the return based on its performance You can learn more about mudaraba contract here.

4. Donation

How does giving away our money become an investment? Islam has its beauty. Helping others with our money will give us beneficial returns. The Holy Qur’an mentions this idea.

“The example of those who spend in the way of Allah is just like a grain that produced seven ears, each ear having a hundred grains, and Allah multiplies (the reward) for whom He wills. Allah is All-Embracing, All-Knowing.”

(The Holy Qur’an, 2:261)

Prophet Muhammad was rich, but he never hoarded his wealth for himself. The Prophet loved to give sadaqah either money or other things like clothes and food. Many companions followed his way. For example, beautiful stories of Abdurrahman bin Auf. He was very wealthy and generous at the same time. The companion even gave sadaqah half of his wealth, also 6 kilograms of gold on the other occasion.

Prophet Muhammad has been the best example for decades in terms of business and investment. We can follow his method and adapt according to what we have today. We have learned to invest like Prophet Muhammad. So, which kind of investment do you want to make?

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