The Islamic Economic System

“O, God increase my knowledge”

No concept of Riba because it encourages

• concentration of wealth in few hands

• creation of monopolies

• greed and selfishness leading to injustice and

oppression

ECONOMIC PHILOSOPHY OF ISLAM

Based on two underlying principles

• Importance of economic goals

• Real nature of wealth and property

ISLAMIC MODEL OF DISTRIBUTION OF WEALTH

Economic activities of man are lawful, meritorious and at times obligatory and necessary however economic activity is not the basic problem and therefore economic progress is not the be-all and end-all of human existence

ISLAMIC MODEL OF DISTRIBUTION OF WEALTH

According to materialistic economics

• Livelihood is the fundamental problem of man

and economic development is the ultimate goal

of human life

IMPORTANCE OF ECONOMIC GOALS

According to Islamic economics

Livelihood may be necessary and indispensable but cannot be the true

purpose of human life

As the Quran says

"Seek the other world by means of what Allah has bestowed upon you"(28:77).

IMPORTANCE OF ECONOMIC GOALS

• Wealth in all its possible forms is created by Allah

• Therefore wealth is the property of Allah

• The right of property which accrues to man is delegated to him by Allah

"Give to them from the property of Allah which He has bestowed upon you." (24:33).

• Therefore Allah has the right to demand that man subordinate his use of wealth to the commandments of Allah

REAL NATURE OF WEALTH AND PROPERTY

•Whatever wealth man possesses has been received from Allah

•"Have you considered what you till? Is it you yourselves who make it grow, or is it We who make it grow?"

•And in another verse: "Have they not seen that, among the things made by our own hands. We have created cattle for them, and thus they acquired the right of property over them?" (36:71)

•It should be used in such a way that it ensures success in the world hereafter

REAL NATURE OF WEALTH AND PROPERTY

• Allah may command man to convey a specified production of "Wealth" to another man. This Commandment must be obeyed, because Allah has done good to you, so He may command you to do good to others

• “Seek the other world by means of what Allah has bestowed upon you, and do not be negligent about your share in this world. And do good as Allah has done good to you, and do not seek to spread disorder on the earth.” (28:77)

REAL NATURE OF WEALTH AND PROPERTY

• Allah may forbid you to use this “wealth” in a specified way. He has every right to do so because He cannot allow you to use “wealth” in a way which is likely to produce collective ills or to spread disorder on the earth.

REAL NATURE OF WEALTH AND PROPERTY