One of my friends shared a post on face book which suggest that celebrating new year is prohibited in Islam. In support of this argument follwoing Hadith is qouted:
The Prophet (sws) arrived in Madeenah while people were celebrating two particular festivals, so He (sws) asked: What is (the significance of) these two days? Some people replied: They are days which we used to celebrate during the pre-Islamic era. So the Messenger (PBUH) replied: ALLAH has replaced them for you with two days which are better, the day of Eed Al-Fitr and Eed Al-Adhhaa. [Abu Daawood].
Would you please clarify this matter?
The Eids which the people of Madinah were celebrating before Islam were religious festivals. Islam also introduced and established two religious festivals. New year celebrations are not religious celebrations. They are social festivals. Therefore, we do not believe there is any connection between the example given and the new year celebrations.