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saalamAlaikum
I heard from a Lankan alim that came to Toronto long time ago. He narrated this story of Sheikh Ilyas who revived the effort of dawah.
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When Sheikh Ilyas came to Makkah, he gathered a number of scholars and adressed them the same question that you posed, "What is the problem with the muslims and why are we losing out?"
Some scholars replied, "Its because of material reasons such as we dont have enough wealth, weapons, resources etc."
Sheikh Ilyas replied, "On the contrary, if we look back the Companions of Prophet (saw) had no worldly resources, but they were still successful"
Some scholars said, "Then, its probably because we dont have sufficient knowledge and there are not enough schools."
Sheikh Ilyas said, "Clearly today knowledge is there, there are so many madrasahs all over the world, books (but there is no one eager to learn like the time of Companions of the Prophet(saw)."
Sheikh Ilyas adressing all the ulema said, "The real reason why we have this sorry state is because of EEMAN."
All the ulema cried hearing the answer.
saalam