Hazrat Abdul Rehman Bin Auf رَضِیَ اللہ عَنْہ A Role Model for Muslim Entrepreneurs

Introduction

Being a muslim we believe that the money in this world is a test for us. So why do we earn money? Why must we uplift ourselves as Ummah in this world? The answer is that we depend on the utilization of money to strengthen Islam in its laws and principles by changing the mindset of people. The instruments in this regard can be vocal words, pen, and coming on the battlefield. So being Muslims we need wealth to strengthen Islam and to resent it as a complete code of life in this era of Fitna. If Allah blessed you with wealth or any worldly thing, spend it in the way of Allah, it becomes a source of Sadqa-e-Jaria for you to go to Jannah. 

We will study the biography of one of the wealthiest Sahabah, Hazrat Abdul Rehman Bin Auf رَضِیَ اللہ عنہ. He set the example for the Muslim Ummah on how to spend in Allah’s way and to be a successful entrepreneur by following the principles of Islam in trade. Allah blessed him with eman, strong character, and good morality. 

His name was Abdul Kaba before entering in Islam. After embracing Islam, his name was changed to Abdul Rehman رَضِیَ اللہ عَنْہ , and his nickname was Abu Muhammad. He was the son of Shifa Bint-e-Abdullah. He belonged to Banu-Zahra, the tribe of Mother Amina رضی اللہ تعالٰی عنہا. He was a wealthy, exceedingly handsome, dignified, pleasant man with a stunning personality. 

His Amal-e-Saleha consists of brilliant performances. Throughout his life, he was busy in one of three affairs; Salah, Welfare Work and Jihad.

His custom was to spend in the way of Allah, that lasted till his death. He said that if I take a stone, I will find gold and silver from it. He spent his money as directed by prophet Muhammad صلی اللہ علیہ وآلہ وسلم, and in the way of Allah to the poor and needy. He got the honor of leading Prophet صلی اللہ علیہ وآلہ وسلم in Salah. In the company of prophet صلی اللہ علیہ وآلہ وسلم, he became eager to get knowledge. He observed both the eras of ignorance and the light of Islam. 

The incident of accepting Islam

He accepted Islam before the establishment of Dar-e-Arqam in Makkah. On a business trip, he met with a Monk in Yemen, when he told the monk that he belonged to Makkah, the monk said, “I will give you a glad tiding better than your trade.” The Monk foresaw that a prophet came in Makkah who called people towards one Allah and would break the idols. After returning from his business journey, he confirmed this news from Hazrat Abu Bakar رضی اللہ تعالٰی عنہ and accepted Islam. 

Driving force to spend in the way of Allah

He always spent in the way of Allah the best to let his feet enter Jannah freely. He earned to spend in the way of Allah.

Migrations

He was Sahab-e-Hijratain, as migrated twice to Habsha and Madina in the way of Allah. Imagine a big businessman leaving his wealthy business and assets for the sake of Allah. At that time there was no concept of bank accounts to transfer money. The reward of this sacrifice was barakah in his wealth. He was one from Ashra Mubashra. They were the people, who were on the front of Hazrat Muhammad صلی اللہ علیہ وآلہ وسلم in war, and behind him while praying. 

Immigration to Madina

In the Brotherhood of Islam after reaching Madina, he was detached from Saad Bin Rabiya who was one of the wealthiest people in Madina. He said, “I have two homes, two gardens, and two wives. Hazrat Muhammad PBUH asked me to be courteous with you, and divided my wealth in half. I even left my wife so you can marry her”. 

Abdul Rehman رَضِیَ اللہ تعالٰی عنہ asked to tell him where the marketplace was and which product was demanded the most in the market?

Marriage

He became one of the richest Sahaba. Allah put barakah in his business. He married an Ansari woman and gave gold as Mehr equivalent to the seed of a date. He was married to four women, so had a powerful position connected with multiple tribes of Quresh. 

Once prophet Muhammad صلی اللہ علیہ وآلہ وسلم asked him for finances as needed in an expedition. Abdul Rehman رَضِیَ اللہ عَنْہ  surrendered 20,000 Dirhams. When asked by prophet PBUH what he had left for his family, He told him that he had left the same amount for them. Prophet Muhammad صلی اللہ علیہ وآلہ وسلم prayed for barakah in his wealth.

Hazrat Muhammad صلی اللہ علیہ وآلہ وسلم once addressed, Do not abuse my sahaba. If a person gives gold in charity equivalent to Uhud mountain and my sahaba surrender grain equal to their fists, even then, you cannot reach their status. 

 “The upper hand is better than the lower hand.”

Being an entrepreneur

Hazrat Abdul Rehman bin Auf رَضِیَ اللہ عَنْہ was an ideal entrepreneur. His mindset was earn to give. He was always in preparation to meet the lord.  He was a man famous for his halal earnings, generosity, modesty and mixing up with people. The business transaction of Abdul Rehman was free of Riba. 

He accepted Islam at the age of 21 in the hands of Hazrat Abu Bakar Sadiq رضی اللہ تعالٰی عنہ. He was uncomfortable with his wealth due to his piousness. He said that we are tested with hardships and ease & prosperity (desires). It is easy to survive on the first one (hardships) because our hard times bring us nearer to Allah Subhana Ta’llah. That was the driving force to spend in the way of Allah. 

Once Prophet صلی اللہ علیہ وآلہ وسلم addressed his Sahabas if the treasures of Egypt and Syria were open to you what kind of people would you become? You would compete with each other, end each other, turn away from each other and hate each other. 

Four business principles of Abdul Rehman Bin Auf رَضِیَ اللہ عَنْہ 

1۔ Dealing on cash, no credit.

The first principle of his business was cash. He always bought and sold products in cash (no credit deals).

Whatsoever you have initial capital start your business from that amount. 

Hazrat Muhammad صلی اللہ علیہ وآلہ وسلم never used to say the funeral prayers of the person who had a loan to pay. 

2۔ Sell goods even at low prices 

He never waited and stocked for the higher profit. 

He sold even one penny of profit. It resulted in a high flow of money. Hazrat Ali رضی اللہ تعالٰی عنہ said, “Do not deny fewer profit. It may deprive you of big profits”.

3۔ Tell the fault of your product to your customers.

Abdul Rehman bin Auf رضی اللہ تعالٰی عنہ always made fair deals. He always mentioned any fault in his products.

Hazrat Muhammad صلی اللہ علیہ وآلہ وسلم taught business principles through dawah and practical examples. He visited the market and checked the trade matters. Once, in a bazaar, he took a handful of wet grain from below. He asked to show the demerits of products in front of customers. 

Hence in the Islamic financial system, there is a need for monitoring authority to analyse the business affairs on Islamic principles. 

4۔ Never store the product as to wait for increasing the price of products. 

This storage sometimes leads towards lids as happened with wheat in Pakistan. The wheat owner stocked it to sell it at a greater price in the market. But the government announced a decrease in its price. That resulted in decreasing the profit of farmers. 

Conducted Market Research

He was a brilliant businessman. He started his business from scratch after the hijra. Firstly he conducted market research. There were markets that were controlled by Jewish Tribes and the other by Muslims. He studied different marketplaces of Banu Kuraiza and Banu Qaynuqa and then started what was easiest for him to acquire.

In the market of Madina, Abdul Rahman Bin Auf رَضِیَ اللہ عَنْہ  foresaw the demands of consumers and made the products to meet the needs of customers. Initially, he started a business to mix butter & barley and make a specific dish. Afterward, he started the trade of horses. 

Expanding the Product Line

The initial capital of his business was 2 or 4 dinars. His trading caravans brought wheat, flour, butter, clothes, utensils, and perfume to the people of Madinah.

Trading Horses

In those days, horse trading had a good scope in the market, so he started trading horses. However, the profit ratio in this business was small.

Sell the saddles

Expanding the product line is one of the important business strategies to grow. He expanded his business to sell saddles for horses, which proved profitable. He raised his earnings by selling different commodities.

Uses of Camels for Export and Import (Capital)

At that time, Camels were the primary source of transportation for imports and exports. Initially, Abdul Rahman Bin Auf رَضِیَ اللہ عَنْہ  borrowed camels from others. Then, he bought his camel to save transportation expenses. He always kept his priorities in order.

Observe the customer demands

He was a man of dignity. 

Firstly he conducted market research and observed the products that are in demand.  He started his business in Madina from little things: yoghurt, dried butter, and oil, mixing them to make different recipes. He focused on the recipes that were famous among the people. 

When he observed the scope of trading in horses and the cash inflow was greater, he started the business of horses. It was not very fruitful. 

Then, he extended his product line and started selling saddles of horses, which proved to be very profitable. 

He became more and more wealthy in Madina even though he was new there.

Among his other businesses were agricultural farms and cattle farms. 

Slowly and steadily, when his business expanded, he purchased camels to transport business products. 

Pricing strategy of Hazrat Abdul Rehman Bin Auf رَضِیَ اللہ تعالٰی عنہَ 

He had adopted a fair & moderate pricing Model for his products. He used to supply his goods to a large number of people even when demand was high, meaning he did not take advantage to get high profits when products were scarce in the market. 

The Prophet صلی اللہ علیہ وآلہ وسلم prayed that Allah bestows barakah (blessings) on the wealth of Abdur Rehman رَضِیَ اللہ تعالٰی عَنْہ . Therefore his business transactions invariably met with success.

Barakah in Riba free Business 

His business grew speedily due to honesty and halal income. 

We should always focus on halal income. 

He left 50 percent of his deals due to the involvement of Riba. He was known in Madina to turn stone into gold. 

Roles and Personality Traits

• He did his work by his hand and never employed a servant. He did not like to have someone to serve him.
• He was soft-hearted to spend in the way of Allah. 
• He always remembered the day of judgement and wept. 
• He sat with slaves and common people in a way that didn’t look prominent. 

Great warrior 

He was a great warrior and fighter and a good performer in the battlefield.  Once a trip was departing for an expedition, and Hazrat Muhammad صلی اللہ علیہ وآلہ وسلم was in need of money. Abdul Rehman رَضِیَ اللہ عَنْہ brought 2000 dinars. Prophet صلی اللہ علیہ وآلہ وسلم prayed for him that may Allah give barakah in this money and the one which was left behind with him. 

He participated in all battles inspite of being a businessman.

In Ghazwa e Uhad he got 20 wounds that lasted till the rest of his life. His front teeth fell out. 

In the battle of Uhud angels accompanied him to fight with 20 non-Muslims

Such a great man who preferred Jihad over business.

He also participated generously in Ghazwa-e-Tabook, only after Hazrat Usman رضی اللہ تعالٰی عنہ.

An entrepreneur in the role of Da’e

He had a great knowledge of the teachings of Islam. He was one of five sahabas who wanted to be in the company of prophet Muhammad صلی اللہ علیہ وآلہ وسلم to seek knowledge of deen and serve him. He was totally against the philosophy of capitalism to accumulate wealth and not to spend. 

Resource Provider to The Mothers of Ummah

He had a great love for the family of prophet Muhammad صلی اللہ علیہ وآلہ وسلم . On an occasion, prophet Muhammad صلی اللہ علیہ وآلہ وسلم announced that the ones who were the caretakers of Ummahat-ul-Momineen would be Sadiq and Ameen. Abdul Rehman رَضِیَ اللہ عَنْہ took this responsibility. He used to send gifts to the mothers of Ummah after the death of Hazrat Muhammad صلی اللہ علیہ وآلہ وسلم. He gifted 400 Dirhams to the mothers of Ummah. 

Abdul Rehman رَضِیَ اللہ عَنْہ sponsored the wives of Hazrat Muhammad صلی اللہ علیہ وآلہ وسلم after he passed away. He also sponsored the Hajj with extreme care and responsibility. Once the earth of Madina was trembling like an earthquake due to the steps of 700 hundred camels of Abdul Rehman Bin Auf رَضِیَ اللہ عَنْہ , who returned from Syria. 

Hazrat Ayesha رضی اللہ تعالٰی عنہا said that I heard Prophet Muhammad صلی اللہ علیہ وآلہ وسلم saying that, Abdul Rehman رَضِیَ اللہ عَنْہ was entering slowly into Jannah. 

When he listened to this, he ordered the distribution of all 700 camels among the family of prophet صلی اللہ علیہ وآلہ وسلم, the poor, needy, and miserable people of Madina. 

Mother Ayesha رضی اللہ تعالٰی عنہا prayed for him, May Allah give him Salsabeel ( a drink of Jannah) 

Whenever he sold something, he provided a portion of it to the mothers of Ummah. He donated one garden to Ummahat-ul-momineen to fulfill their expenses after the death of prophet Muhammad صلی اللہ علیہ وآلہ وسلم 

Once he went to look after a patient, that person became happy. 

He said to him that Allah says, He will join the person who is Rehman to others and maintains relationships with others. In the era of Hazrat Umar & Hazrat Usman رضی اللہ تعالٰی عنہما, he was designated as Ameer-ul-Hajj.

Humility in Nature 

After the death of Hazrat Umar رضی اللہ تعالٰی عنہ, he was one of the nominees to be the next caliph. But he refused to take this responsibility. He prayed to die rather than becoming the Caliph. On this occasion Hazrat Ali رضی اللہ تعالٰی عنہ said that he had heard from Hazrat Muhammad صلی اللہ علیہ وآلہ وسلم, Abdul Rehman Bin Auf رَضِیَ اللہ عَنْہ is Ameen among people of heaven. A huge number of people from different places came to attend his funeral. 

When he was near to death, Hazrat Ayesha رضی اللہ تعالٰی عنہا offered him to be buried near prophet Muhammad صلی اللہ علیہ وآلہ وسلم, but he said he felt ashamed of such a high place. 

Honour from Hazrat Muhammad PBUH

Prophet Muhammad صلی اللہ علیہ وآلہ وسلم honoured him with a black turban on his head. He advised him to be pious and mindful of Allah and praise Allah for everything that comes his way.  When there was difficulty for Muslims, Abdul Rehman Bin Auf رَضِیَ اللہ عَنْہ  wore black turbans and got ready for the purpose. Once in an expedition, Hazrat Muhammad صلی اللہ علیہ وآلہ وسلم ordered him to marry the daughter of the chief after conquering to make the relationship soft and good. Allah blessed him with a son Abu-Salma, who was the student of Hazrat Ayeshaرضی اللہ عَنْہا. It was the barakah of the dua of prophet Muhammad صلی اللہ علیہ وآلہ وسلم, his son became a source of perpetual sadaqah for him. 

He was one of the six members of Shurah to select Caliph after the death of Hazrat Umar رضی اللہ تعالٰی عنہ. Abdul Rehman Bin Auf رَضِیَ اللہ عَنْہ  did all the managerial work. He consulted with the people of Madina and could not sleep for 3 days. People voted for Hazrat Usman رضی اللہ تعالٰی عنہ. 

Finance Allocator to the people of Madina

In Madina, he got the honour of serving the people by giving Qarz-e-Hasna to one-third of the people, paying debts of one-third of the people of Madina and giving sadaqah to the remaining one-third of the population.

At the time of death

At the time of death, he was weeping due to the fear of being left behind among Ashraf due to the abundance of wealth. 

Heritance 

His inheritance was worth $606 b surpassing even Bill Gate’s and Elon Mask’s. Such a huge amount was due to the barakah from Allah. He left the tiles of gold that were divided through axes and knives among his heirs. Every one of his four wives got 80,000 dinars, 1000 camels, 100 horses, and 300 goats. According to his will, he donated 400 dinars to each of Badri Sahabas. They were 100 at that time. He died at the age of 75 in Madina and was buried in Baqee. 

He is a role model and Muslim hero and was at the height of eman and business principles. 

Wealth in Islamic Economy vs Capitalist Economy

Adam Smith developed the Pareto principle, which states that 80% of society’s wealth is controlled by 20% of the population. This principle promotes a capital economy and the accumulation of wealth in a few hands. It leads to an unequal distribution of wealth, which is contrary to Islam’s philosophy.

However, in the Islamic Economic System, prosperity is based on the circulation of products in the society. Hazrat Abdul Rehman Bin Auf رَضِیَ اللہ عَنْہ also believed in more circulation of products even though he sold the products with minimum profit, so that, maximum people could benefit from his products. 

The Rank of Honest Businessman

Prophet Muhammad صلی اللہ علیہ وآلہ وسلم said the honest businessmen will be with prophets and martyrs on the day of judgement. 

Allah ordains to be fair in your affairs and He will smoothen all your matters. 

The Principles of Business in Islam

Islam promotes trade and discourages Riba. The honest businessman will be with prophets on the day of judgement. In different Islamic countries including Malaysia Islam was spread through the honesty of Muslim traders. 

If we divide Madina into three parts, Abdul Rehman bin Auf paid the debts of one-third of the people, forgave one-third of the people’s debts, and for the remaining one-third, he gave charity to the people of Madina. 

So everyone from Madina benefited from his wealth.

In Islam, Tajir (trader) is more significant than the Entrepreneur. 

He has an important role in economic development.

They not only build their businesses; but also create new jobs and business opportunities for their fellow Muslims especially the deprived community of Muslim society including the new Muslims.

They search for new products and markets, and bring innovation. 

People who surrender in the way of Allah may fear about their charity not being accepted. 

It is the state of Eman between belief and fear of Allah, that keeps track of the human machine on Sirat-e-Mustaqeem. 

When Muslims establish small businesses it helps to discourage multinationals from giving their products in the market, which are sold by creating their demands through advertising. 

It increases the cost of products. And the media uses cheaper ways to advertise these products. 

Return Policy in Business

Hazrat Muhammad صلی اللہ علیہ وآلہ وسلم said if you sell something and get it returned, I will guarantee a place for you in the middle of Jannah.  

Lesson from the case study of Hazrat Abdul Rehman Bin Auf رَضِیَ اللہ عَنْہ

There is barakah and peace in halal; a lesson for youngsters. 

Your Rizq is predetermined by Allah. 

Allah contents us in having fewer and giving more. This makes Eman and Tawakal stronger. 

Only beg from Allah. There is nothing wrong in praying for money to buy, to earn and employ people and to revert their minds towards Islam. May Allah make these people ideal. He was an ideal entrepreneur and role model for youth. 

Ibrahim Bin Abdul Rehman رَضِیَ اللہ عَنْہ Narrates, that despite being rich he was very humble and generous. He was afraid of the blessings of Allah upon him that they might decrease his share after death.

Jannah is expensive, you have to sacrifice. Keep with you only the wealth that is needed. 

Guidance from the Quran for Islamic Financial System

The Quran clearly guides us on all the matters of life, especially those related to money. I have written some financial matters and their guidance from the Quran. 

Hardwork & Profession

“And that man can have nothing but what he does (good or bad).”                           Al- Najam 39

Difference between Trade & Riba

“Those who consume interest cannot stand [on the Day of Resurrection] except as one stand who is being beaten by Satan into insanity. That is because they say, “Trade is [just] like interest.” But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] – those are the companions of the Fire; they will abide eternally therein.”                                                                                                         Al Baqra 275

Deficiency in measuring and weighting

“Woe to Al-Mutaffifin [those who give less in measure and weight (decrease the rights of others)],

Those who, when they have to receive by measure from men, demand full measure, And when they have to give by measure or weight to men, give less than due.”                   

Al- Mutaffifin 1-3

The reward of spending in the way of Allah

“Those who spend their wealth (in Allah’s Cause) by night and day, in secret and in public, shall have their reward with their lord. On them shall be no fear, nor shall they grieve.”    Al Baqira 274

Avoid hypocrisy of spending in the way of Allah

“And (also) those who spend their substance to be seen by men, and believe not in Allah and the Last Day [they are the friends of Shaitan, and whoever takes Shaitan as an intimate: then what a dreadful intimate he has!”                                                                                     Al-Nisa 38

Avoid what is Haram

“And eat up not one another’s property unjustly (in any illegal way e.g. stealing, robbing, deceiving, etc.), nor give bribery to the rulers ( judges before presenting your cases) that you may knowingly eat up a part of the property of others sinfully.”                                           

Al-Baqra 189

Avoid theft

“Cut off (from the wrist joint) the (right) hand of the thief, male or female, as a recompense for that which they committed, a punishment by way of example from Allah. And Allah is All-Powerful, All-Wise.”                                                                                                  Al-Maida 38

Avoid Cheating

“O you who believe! Betray not Allah and his messenger, nor betray knowingly your Amanat         (things entrusted to you, and all the duties which Allah has ordained for you).”             

Al-Infal 27

Avoid Falsity 

“ ….the curse of Allah upon those who lie”                                                                    Al-Imran 61

Maal-e-Ghanimat

“And know that whatever of war booty that you may gain, verily one-fifth (1/5th) of it is assigned to Allah. , and to the Messenger, and his near relatives, the orphans, Al-Masakin (the poor) and the wayfarer, if you have believed in Allah and in that which we sent down to Our slave Muhammad SAW) on the Day of creation (between right and wrong), the Day when the two forces met ( the battle of Badr)- and Allah is able to do all things.”

Al-Infal 41

Avoid Miserliness

“Those who are miserly and enjoin miserliness on other men and hide what Allah has bestowed upon them of his Bounties. And we have prepared for disbelievers a disgraceful torment.”

Al-Nisa  37

Conclusion

Hazrat Abdul Rehman Bin Auf رضی اللہ تعالٰی عنہ , is a brilliant role model for Muslim businessmen due to his faith, generosity, and ideal entrepreneurship. 

He dedicated his efforts and wealth to the welfare of Islam through halal businesses. 

He was always mindful of the hereafter. 

One penny of haram destroys the whole wealth. 

The wealth of Abdul Rehman bin Auf helped Islam to grow. He left fifty percent of business opportunities due to the involvement of Riba.  His life gives us a great lesson, that true success lies in serving humanity. 

His life always inspires the businessman to create a balance between worldly success and the success hereafter.

References :

1. Book “Abdul Rehman bin auf رضی اللہ عنہ 

by Syed Riaz Hussain Shah

2. Biyan of

        Ibn Saad youth club

        Muhammad Ali youth club

        Maulana Tariq Masood

        Ustad Nauman Ali 

        Ustad Omer Suleiman