Qur'an, Hadith and Scholars:Witchcraft and the Occult
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The hadith literature are replete with references to witchcraft and the occult. The belief in the "evil eye" عين الحسد is particularly prominent. According to this ancient and widespread belief, the act of envying what another person has or possess can put the metaphysical, mystical "eye" upon them, bringing misfortune of various kinds on whom is on the receiving end of the eye. This eye can be warded off by, variously, giving the person who is envious the object of their envy, using charms made to look like the eye itself (among them the so-called خمسة or hamsa), prayers, scripture reading, or various forms of magic. The belief itself is widespread in Middle Eastern and Mediterranean societies and is attested to widely in ancient Greek literature, where it was part of the metaphysical world of the ancient Greek paganism. The hadith tradition paints the prophet Muhammad himself as contending with the evil eye via prayers. Like with the evil eye, the tradition is unanimous in recognizing the reality of سحر "sahr" as in magic or witchcraft, which is envisioned as a black, malevolent force in league with shaytan.
Islam Q&A, Fatwa No. 20954
The evil eye is a fact
Responsible for the deaths of many Muslims
The evil eye is responsible for the deaths of many Muslims (second only to the will of Allah).
Muhammad was affected by the evil eye
Muhammad was affected by the evil eye and the witchcraft of a Jew.
The Punishment for Magic
Witches must be executed
“They followed what the Shayaateen (devils) gave out (falsely of the magic) in the lifetime of Sulaymaan (Solomon). Sulaymaan did not disbelieve, but the Shayaateen (devils) disbelieved, teaching men magic and such things that came down at Babylon to the two angels, Haaroot and Maaroot, but neither of these two (angels) taught anyone (such things) till they had said, ‘We are for trial, so disbelieve not (by learning this magic from us).’”
A practitioner of witchcraft may do something that makes him an apostate, so he commits kufr and should be executed for his apostasy. Or he may practice witchcraft by doing something that does not constitute kufr. In that case there is a difference of scholarly opinion, but the correct view is that he should also be executed if it is proven that he is a practitioner of witchcraft. This is what the Sahaabah (may Allaah be pleased with them) did and enjoined other to do. If he is executed, he should not be washed or shrouded or buried in the Muslim graveyard.There should be no hesitation in executing the practitioner of witchcraft, whether we say that he is a kaafir or not, because this is what is proven from the companions of the Prophet (peace and blessings of Allaah be upon him). Executing him prevents the spread of evil and serves as a deterrent to his fellow practitioners of witchcraft.
Islam Q&A, Fatwa No. 69914