“O Believers fear Allah and give up that interest which is still due to you, if you are true Believers; but if you do not do so, then you are warned of the declaration of war against you by Allah and His Messenger. If however, you repent even now (and forego interest), you are entitled to your principal; do no wrong, and no wrong will be done to you.” (2:278, 279) This verse was revealed after the conquest of Makkah. Although interest was considered objectionable earlier, it had not been legally prohibited. After the revelation of this verse interest-bearing transactions became a punishable offence within the realm of Islam. The Prophet (peace be upon him) warned the Arab tribes through his officials that war would be declared against them if they did not give up interest-bearing transactions. It was specified, for instance, in the agreement under which the Christians of Najran were granted internal autonomy under the suzerainty of the Islamic state, that if they continued to ...