The gold dinar and the silver dirham are historically considered Shari’ah money, upon which the Shari’ah principles of muamalat, zakat, mahr and hudud are based. The dinar and dirham contribute towards the attainment of Maqasid al-Shari’ah (Aims and Objectives of the Shari’ah) i.e. the protection of faith (iman), life (nafs), intellect (aql), posterity (nasl) and wealth (mal) as expounded by Imam Al-Ghazali and Al-Shatibi. The dinar and dirham lost their role as money after the collapse of the Ottomon Caliphate in 1924. However, gold continued to play a role under the Bretton Woods system – the international monetary regime that prevailed from the end of World War II until its collapse in 1971.

The Prophet Muhammad SAAS is reported to have said : "A time is certainly coming over mankind in which there will be nothing (left) that will be of use (or benefit) save a Dinar and a Dirham.” (Musnad Imam Ahmad ibn Hambal).

Imam Ghazali stated that Allah created gold and silver as the true measure of value. Indeed, monetary system based on gold and silver contributes towards just, stable, vibrant and sustainable economies, devoid of persistent inflation and unemployment.

When the Prophet Muhammad SAAS preached Islam in the early 7th century, the Roman coin called denarius was circulating among the Arabs. Dirham is derived from the word drachma, the coin from the Greek-speaking Roman Byzantine Empire. The Prophet accepted them as the monetary standard for the Muslims. Nevertheless, the first Islamic coin was minted only in the year 75H (697AD) by Abd al-Malik ibn Marwan (646-705 AD) who was the 5th Umayyad Caliph. Abd al-Malik was a well-educated man and capable ruler. Ibn Khaldun described him as "… one of the greatest Arab and Muslim Caliphs. He followed in the footsteps of `Umar Ibn Al-Khattab, the Commander of the Believers, in regulating state affairs.” The gold dinar and silver dirham minted during the Umayyad Caliphate are shown below :

Abd al-Malik replaced the Roman and Persian inscriptions on the dinar and dirham, respectively, with the shahadah `There is no god but Allah, Muhammad is His messenger’ and simplistic inscriptions based on the Qur’anic verses.

In the year 2011 AD, (after some 1,357 lunar years, the state government of Perak is honored to once again revive this legacy in the form of the Gold Dinar and Silver Dirham of the state of Perak.

The specifications of the Perak gold dinar and silver dirham are as follows:


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