Scribd
Upload
15 views

8) Economy in Islam

The document discusses the Islamic concept of economy, including encouraging lawful earning and trade, prohibiting interest and gambling, and the state's responsibility to provide basic needs. Islam allows private property and profit but with boundaries of halal and haram and obligations like zakat to prevent wealth concentration.

Uploaded by

Nawaz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
15 views

8) Economy in Islam

The document discusses the Islamic concept of economy, including encouraging lawful earning and trade, prohibiting interest and gambling, and the state's responsibility to provide basic needs. Islam allows private property and profit but with boundaries of halal and haram and obligations like zakat to prevent wealth concentration.

Uploaded by

Nawaz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 9

Economy in Islam

 Introduction

Famous Economic Systems of the World


 Capitalism
o Private Ownership of Property
o Profit-motive
 Accumulation of wealth
o Minimal state involvement
 Non-interference of State
o USA
o The rich get richer and the poor get poorer
 Profit does not go to the working class
 Communism
o Socialism:
 Public Ownership of property
 Equal distribution of wealth
 People start losing motivation
 Productivity decreased
 Soviet Union economy collapsed
o This system flopped
 Capitalists realized that one day the poor laborers will revolt
o So they started system of taxation
o To generate revenue and spend in the way of people

Islamic Concept of Economy


 Islam has concept of Private Ownership of property
o This is a pre-requisite for Zakat
 There is an entire concept of Ma’eesha
 Surah Taha Verse 124

o
And whoever veers away from My Remembrance, then surely he will have a
cramped subsistence [or livelihood]

 Concept of Economy in the Quran


 It encourages earning
o And holds off earning
 Where it promotes and where it prohibits; it is better for your economy
 Surah Jumah Verse 9-10

O believers! When the call to prayer is made on Friday, then hurry towards the
reminder of Allah and leave off ˹your˺ business.

Once the prayer is over, disperse throughout the land and seek the bounty of
Allah. And remember Allah often so you may be successful.

 Islam teaches difference between lawful and unlawful and does not put unnecessary constraints
on your economy
o It encourages a dynamic life
 A dynamic Economy
 Encourages the use of
o Import/Export
o Technology
o Etc
 Islam gives you a boundary
o Confines you within it in order to achieve a pure Islamic Economy

 Ethics of Trade: Ikhlaaqiat-e-Tijarat


 Islam teaches the ethics of trade
 Gives difference between halal and haram in economics and trade
o This is major difference between this and the other systems of economy
 Surah Baqarah Verse 168

O humanity! Eat from what is lawful and good on the earth and do not follow
Satan’s footsteps.

o Eat whatever is Halal (Allowed) and Tayyib (Pure)


o
o Leaving Halal and Tayyib will lead to following the footsteps of Satan

So what is disallowed?
Riba
 Surah Al-i Imran Verse 130

You who believe, do not consume usurious interest [Riba], doubled and
redoubled.

 Nowadays, banks are giving out interest-based loans


o All different forms of Riba have been prohibited by Holy Prophet
o According to Nusoos-e-Qurani
 These are the clear commandments of Allah and the Prophet

Khiyanat/Dishonesty
 Using something dishonestly for your purpose
 Surah Baqarah Verse 283

… the debtor should honour this trust ˹by repaying the debt˺…

 Surah Ali-Imran 161

It is inconceivable that a prophet would ever dishonestly take something from


the battle gains. Anyone who does so will carry it with him on the Day of
Resurrection, when each soul will be fully repaid for what it has done: no one will
be wronged.

Theft
 Maidah 38
Cut off the hands of thieves, whether they are man or woman, as punishment for
what they have done- a deterrent from Allah

Encroachment of property of Orphans


 Nisa 10

Verily, those who unjustly eat up the property of orphans, they eat up only a fire
into their bellies, and they will be burnt in the blazing Fire!

Adulteration/Naap tol may kami


 Surah Al-Mutafifeen
o Verse 1

Woe to those who give short measure,

 Goes on to explain that these people take full measure for themselves but when
they sell, they give short measure
 Qaum of Hazrat Shoaib

Earning from Alcohol or Narcotics or Intoxicants AND Gambling


 Maidah 90

O believers! Intoxicants, gambling, idols, and drawing lots for decisions are all
evil of Satan’s handiwork. So shun them so you may be successful.

Gambling
 Maidah 90

Using sources which promote Vulgarity (prostitution, showbiz, film industry,


 Nur Verse 2

As for female and male fornicators, give each of them one hundred lashes, and do
not let pity for them make you lenient in ˹enforcing˺ the law of Allah, if you ˹truly˺
believe in Allah and the Last Day. And let a number of believers witness their
punishment.

 Nur 19
Indeed, those who love to see indecency spread among the believers will suffer a
painful punishment in this life and the Hereafter.

 Nur 33

Do not force your ˹slave˺ girls into prostitution for your own worldly gains while
they wish to remain chaste. And if someone coerces them, then after such a
coercion Allah is certainly All-Forgiving ˹and˺ Most Merciful ˹to them˺.

 Surah Nisa and Nur suggested for women by Hazrat Umar

Bribery
 Hadith:

o
 From Sunan Ibn Majah
o Rashi wal-murtashi
o Rashi is bribe-giver, murtashi is bribe-receiver

Ghasb karna: Devour/ encroachment on someone’s wealth and property

 Concept of Wealth in Islam


 Wealth is not prohibited in Islam
o But Love of wealth is prohibited
o It is like the water which is essential for the ship to float, but is a hazard if it fills the ship
from inside
 Islam doesn’t stop you from earning
o But gives the afore-mentioned boundaries
 Lawful acts
 Zakat
 Islam gives you motivation
o To spend upon others
o Yunfiqu


o Similarly, Qarz-e-Hasana
 Over and above Zakat
 And if the poor person cannot pay back; then don’t ask for return

 Assurance of plenty, to the believers; to encourage them to work


hard for their Economy
 Surah A’raf Verse 10

We have indeed established you on earth and provided you with a means of
livelihood.

o Islam assures the believers


 Surah A’raf Verse 31

Eat and drink

 Surah Bani Israil Verse 31

Do not kill your children for fear of poverty––We shall provide for them and for
you––killing them is a great sin.

o Here, the ones who are to come are mentioned before the ones who already exist which
goes to show that by no means will there be shortage for those who are already arrive if
more people enter the world
 Allah encourages, not to stop or kill children
o But to expand your economic resources
 Islam urges you to explore resources

 Responsibility of the State


 To provide the basic needs
 Surah Hajj Verse 41
o
Those (Muslim rulers) who, when We establish them in the land, keep up the
prayer, pay the prescribed alms [Zakat], command what is right, and forbid what
is wrong

o Concept of Social Welfare:


 Basic needs:
 Roti
 Pani
 Kapra
 Ghar
 State has to provide these
 State has to explore resources in order to provide these
 Other way is to tax
o But that shouldn’t be the only way to raise revenue
o And taxes shouldn’t be unjustified
 Other sources of revenue are:
o Mining
o Barren lands brought under cultivation
o Invest in business activity
 Prophet was himself a trader
 Mudarba with Hazrat Khadija
 Shared profit and loss

 Different kinds of Investment


 Mudarba:
o Sharing profit and losses
 Mutual funds using stock exchange
o Involves shares and promotes business
o So lawful
 Money stored in banks
o At fixed rate
o Not allowed

Banks
 Banks are monetary institutes
o Not business institutes
 If Banks become business institutes
o Invest account holders money in business
 Profit given to account holder
 This is lawful
 It is unlawful when the bank does not invest but loans money to someone
o The bank does not care what happens to the money
 Whether there is business
 Or profit
 Or loss
o There is a mark-up attached
 This is an additional amount of money above money
o The bank is getting a fixed amount regardless of business activity
 Regardless of whether the person who took the loan is dying
 This is haram
 Islam wants to generate business activity

 Principles of Islamic Economy


 From Capitalism:
o Ownership of Private Property
o Profit-motive
 From Socialism:
o Planning of Economy
o Collective benefit
 Added:
o Provides boundaries for Halal and Haram
o It negates the concept of concentration of wealth


 So that wealth is not entirely yours
 People have to pay Zakat
o State responsibilities are defined
o Idea of a Welfare State
o

 Accountability in Islam:
 Self-Accountability
 State level Accountability
o State should keep a check on hoarders
 Divine-level Accountability
o Surah Baqarah Verse 284
Whether you reveal what is in your hearts or conceal it, Allah will call you to
account for it.

 Islam foremost creates internal sense of responsibility


o In Hazrat Umar’s time
 Only those people were allowed to engage in business
 Who knew the basics of Economy
o The Prophet himself used to check the trading practices of people
 Wet stock of grain story
 Islam forbids hoarding
o Hazrat Abdur-Rahman bin Auf
 Never concealed the defects of products
 Never hoarded to increase profit
 Never exploited buyer’s need
 Never gave/took unnecessary loan or credit
 Never refused to take back returned product

You might also like