The story of Abd Al-Rahman ibn ‘Awf
Abdul Rahman bin Auf رضي الله عنه was the richest Sahabi with a huge net worth which he generated through his simple yet effective business strategy. Abd al-rahman ibn ‘awf business strategy had 3 basic principles explained in this article.
He is among the 10 Jannati sahaba العشرة المبشرون whose entry to paradise was told by Prophet Muhammad ﷺ.
Abdul Rahman bin Auf Networth
When Abd al-Rahman ibn ‘Awf رضي الله عنه died, his net worth valued in Gold Coins was 3.1 billion Islamic dinars.
- Islamic Dinar = 4.25 gms gold per coin
If the whole wealth is converted into USD then the calculation of Abd Al-Rahman ibn ‘Awf رضي الله عنه net worth is;
- 4.25 X 3,103,000,000 X 64 = USD 849 billion.
Bernard Arnault is the richest person in the world as of April 2023 and his total net worth is $199 billion while Abd al-Rahman ibn ‘Awf stood at $849 billion.
When Abd al-Rahman ibn ‘Awf رضي الله عنه arrived in Madina after migration, he had left all his wealth back in Makkah and he had no money at all, so he had to start from the beginning or we could say that start from scratch. In 622 AD, Almost 70 Muslims migrated to Madina with their families.
Abdul Rahman (RA) was paired up with Sa’ad Bin Ar-Rabi’ah (رضي الله عنه). He was one of the well-off men of Madina.
Abdul Rahman bin Auf refused a farm as a gift
At that time, Sa’ad رضي الله عنه offered one out of two farms as a gift to his him. Abd Al-Rahman ibn ‘Awf رضي الله عنه answered: “May Allah bless you with your family and money but show me the way where the market is.” He was talking about “The market of Qainuqa”.
Abd Al-Rahman ibn ‘Awf started with just 4 Dinars
The initial capital of Abd al-Rahman ibn ‘Awf رضي الله عنه business was 2 or 4 dinars from where his net worth became $849 billion.
He started trading in horses and added some additional products such as saddles in his business. Soon, his business started flourishing.
Abd al-Rahman ibn ‘Awf business strategy
The story of Abdul Rahman bin Auf رضي الله عنه reveals his business strategy which is based upon 3 basic principles.
Low Gearing/High Liquidity
The first principle of Abdul Rahman bin Auf رضي الله عنه business strategy is cash. He never took a loan or gift from anyone because he had a firm belief that Allah (S.W.T) would provide him.
High Volume/Low Profit
The second principle of Abdul Rahman bin Auf رضي الله عنه business strategy is he always tried to avoid storage of goods, he sold goods even if he was offered with one penny of profit.
It derived a High level of flow of money, so the main emphasis was on making earnings by increasing profits.
The third principle of Abdul Rahman bin Auf رضي الله عنه business strategy is he never used to hide any fault in his products.
If his product was not up to the mark or if there was even a slight fault in his product, he mentioned it in front of his customer.