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Islamic economics ( ar, الاقتصاد الإسلامي) refers to the knowledge of economics or economic activities and processes in terms of Islamic principles and teachings. Islam has a set of special moral norms and values about individual and social economic behavior. Therefore, it has its own economic system, which is based on its philosophical views and is compatible with the Islamic organization of other aspects of human behavior: social and political systems. Is a term used to refer to Islamic commercial jurisprudence ( ar, فقه المعاملات, '' fiqh al-mu'āmalāt''), and also to an
ideology An ideology is a set of beliefs or philosophies attributed to a person or group of persons, especially those held for reasons that are not purely epistemic, in which "practical elements are as prominent as theoretical ones." Formerly applied pri ...
of economics based on the teachings of Islam that is mostly similar to the
labour theory of value The labor theory of value (LTV) is a theory of value that argues that the economic value of a good or service is determined by the total amount of " socially necessary labor" required to produce it. The LTV is usually associated with Marxian ...
, which is "labour-based exchange and exchange-based labour".. Islamic commercial jurisprudence entails the rules of transacting finance or other economic activity in a '' Shari'a'' compliant manner, i.e., a manner conforming to
Islam Islam (; ar, ۘالِإسلَام, , ) is an Abrahamic monotheistic religion centred primarily around the Quran, a religious text considered by Muslims to be the direct word of God (or '' Allah'') as it was revealed to Muhammad, the ...
ic scripture (
Quran The Quran (, ; Standard Arabic: , Quranic Arabic: , , 'the recitation'), also romanized Qur'an or Koran, is the central religious text of Islam, believed by Muslims to be a revelation from God. It is organized in 114 chapters (pl.: , ...
and
sunnah In Islam, , also spelled ( ar, سنة), are the traditions and practices of the Islamic prophet Muhammad that constitute a model for Muslims to follow. The sunnah is what all the Muslims of Muhammad's time evidently saw and followed and passed ...
). Islamic jurisprudence (''
fiqh ''Fiqh'' (; ar, فقه ) is Islamic jurisprudence. Muhammad-> Companions-> Followers-> Fiqh. The commands and prohibitions chosen by God were revealed through the agency of the Prophet in both the Quran and the Sunnah (words, deeds, and e ...
'') has traditionally dealt with determining what is required, prohibited, encouraged, discouraged, or just permissible, according to the revealed word of God (
Quran The Quran (, ; Standard Arabic: , Quranic Arabic: , , 'the recitation'), also romanized Qur'an or Koran, is the central religious text of Islam, believed by Muslims to be a revelation from God. It is organized in 114 chapters (pl.: , ...
) and the religious practices established by
Muhammad Muhammad ( ar, مُحَمَّد;  570 – 8 June 632 CE) was an Arab religious, social, and political leader and the founder of Islam. According to Islamic doctrine, he was a prophet divinely inspired to preach and confirm the mon ...
(
sunnah In Islam, , also spelled ( ar, سنة), are the traditions and practices of the Islamic prophet Muhammad that constitute a model for Muslims to follow. The sunnah is what all the Muslims of Muhammad's time evidently saw and followed and passed ...
). This applied to issues like property, money, employment, taxes, loans, along with everything else. The social science of
economics Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics anal ...
, on the other hand, works to describe, analyse and understand production,
distribution Distribution may refer to: Mathematics * Distribution (mathematics), generalized functions used to formulate solutions of partial differential equations *Probability distribution, the probability of a particular value or value range of a vari ...
, and consumption of
goods and services Goods are items that are usually (but not always) tangible, such as pens, physical books, salt, apples, and hats. Services are activities provided by other people, who include architects, suppliers, contractors, technologists, teachers, doc ...
, and studied how to best achieve policy goals, such as full employment, price stability, economic equity and productivity growth. Early forms of
mercantilism Mercantilism is an economic policy that is designed to maximize the exports and minimize the imports for an economy. It promotes imperialism, colonialism, tariffs and subsidies on traded goods to achieve that goal. The policy aims to reduce ...
and
capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private ...
are thought to have been developed in the
Islamic Golden Age The Islamic Golden Age was a period of cultural, economic, and scientific flourishing in the history of Islam, traditionally dated from the 8th century to the 14th century. This period is traditionally understood to have begun during the reign ...
from the 9th century and later became dominant in European Muslim territories like
Al-Andalus Al-Andalus translit. ; an, al-Andalus; ast, al-Ándalus; eu, al-Andalus; ber, ⴰⵏⴷⴰⵍⵓⵙ, label= Berber, translit=Andalus; ca, al-Àndalus; gl, al-Andalus; oc, Al Andalús; pt, al-Ândalus; es, al-Ándalus () was the M ...
and the
Emirate of Sicily The Emirate of Sicily ( ar, إِمَارَة صِقِلِّيَة, ʾImārat Ṣiqilliya) was an Islamic kingdom that ruled the island of Sicily from 831 to 1091. Its capital was Palermo (Arabic: ''Balarm''), which during this period became ...
. The Islamic economic concepts taken and applied by the gunpowder empires and various Islamic kingdoms and sultanates led to systemic changes in their economy. Particularly in the
Mughal India The Mughal Empire was an early-modern empire that controlled much of South Asia between the 16th and 19th centuries. Quote: "Although the first two Timurid emperors and many of their noblemen were recent migrants to the subcontinent, the d ...
, its wealthiest region of
Bengal Bengal ( ; bn, বাংলা/বঙ্গ, translit=Bānglā/Bôngô, ) is a geopolitical, cultural and historical region in South Asia, specifically in the eastern part of the Indian subcontinent at the apex of the Bay of Bengal, predom ...
, a major trading nation of the medieval world, signaled the period of proto-industrialization, making direct contribution to the world's first
Industrial Revolution The Industrial Revolution was the transition to new manufacturing processes in Great Britain, continental Europe, and the United States, that occurred during the period from around 1760 to about 1820–1840. This transition included going f ...
after the British conquests. In the mid-twentieth century, campaigns began promoting the idea of specifically Islamic patterns of economic thought and behavior. By the 1970s, "Islamic economics" was introduced as an academic discipline in a number of institutions of higher learning throughout the Muslim world and in the West. The central features of an Islamic
economy An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with th ...
are often summarized as: (1) the "behavioral norms and moral foundations" derived from the
Quran The Quran (, ; Standard Arabic: , Quranic Arabic: , , 'the recitation'), also romanized Qur'an or Koran, is the central religious text of Islam, believed by Muslims to be a revelation from God. It is organized in 114 chapters (pl.: , ...
and
Sunnah In Islam, , also spelled ( ar, سنة), are the traditions and practices of the Islamic prophet Muhammad that constitute a model for Muslims to follow. The sunnah is what all the Muslims of Muhammad's time evidently saw and followed and passed ...
; (2) collection of ''
zakat Zakat ( ar, زكاة; , "that which purifies", also Zakat al-mal , "zakat on wealth", or Zakah) is a form of almsgiving, often collected by the Muslim Ummah. It is considered in Islam as a religious obligation, and by Quranic ranking, is ...
'' and other Islamic taxes, (3) prohibition of interest (''
riba The Royal Institute of British Architects (RIBA) is a professional body for architects primarily in the United Kingdom, but also internationally, founded for the advancement of architecture under its royal charter granted in 1837, three supp ...
'') charged on loans. Advocates of Islamic economics generally describe it as neither
socialist Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes the ...
nor
capitalist Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private ...
, but as a "third way", an ideal mean with none of the drawbacks of the other two systems.Islam and Economic Justice: A 'Third Way' Between Capitalism and Socialism?

Among the claims made for an Islamic economic system by Islamic activists and revivalists are that the gap between the rich and the poor will be reduced and prosperity enhanced''International Business Success in a Strange Cultural Environment'' By Mamarinta P. Mababaya p. 203 by such means as the discouraging of the hoarding of
wealth Wealth is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This includes the core meaning as held in the originating Old English word , which is from an I ...
, taxing wealth (through ''
zakat Zakat ( ar, زكاة; , "that which purifies", also Zakat al-mal , "zakat on wealth", or Zakah) is a form of almsgiving, often collected by the Muslim Ummah. It is considered in Islam as a religious obligation, and by Quranic ranking, is ...
'') but not trade, exposing
lender A creditor or lender is a party (e.g., person, organization, company, or government) that has a claim on the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some propert ...
s to risk through
profit sharing Profit sharing is various incentive plans introduced by businesses that provide direct or indirect payments to employees that depend on company's profitability in addition to employees' regular salary and bonuses. In publicly traded companies th ...
and
venture capital Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which h ...
,International Business Success in a Strange Cultural Environment By Mamarinta P. Mababaya p. 202 discouraging of hoarding of food for speculation, and other activities that Islam regards as sinful such as unlawful confiscation of land. However, critics like Timur Kuran have described it as primarily a "vehicle for asserting the primacy of Islam", with economic reform being a secondary motive. El-Gamal, ''Islam and Mammon'', 2004: p.5 Recently and as a complement to Islamic economics, the field of Islamic entrepreneurship or entrepreneurship from an Islamic perspective has gained traction. Islamic entrepreneurship studies the Muslim entrepreneur, entrepreneurial ventures, and contextual factors impacting entrepreneurship at the intersection of the Islamic faith and entrepreneurial activities.


Definitions and descriptions

According to Hasan Raza, after more than six decades of its formal/ informal existence, a consensus on the definition of Islamic economics has not yet emerged. Some definitions that have been offered include: *"that branch of knowledge which helps to realize human well-being through an allocation and distribution of scarce resources that is in conformity with Islamic teachings without unduly curbing individual freedom or creating continued macroeconomic and ecological imbalances." ( Umar Chapra) (similarly, the "study of human behavior with regard to acquiring and using resources for the satisfaction of necessities, needs, and other desires," but "based on the assumptions" of the Islamic "outlook on life and humanity". (Monzer Kahf)) *"the study of an ... economy which abides by the rules of the Shariah", i.e. an Islamic economy. (A definition used by some, according to M. Anas Zarqa)Zarqa, M. Anas. (2008), ''Duality of sources in Islamic economics, and its methodological consequences''. Paper presented at 7th International Conference on Islamic Economics, King Abdulaziz University, 1–3 April, Jeddah. p.30
*a discipline that goes beyond the practice of Western economics—which seeks to make "positive analysis" and give an objective description of ''what is''—to provide normative policy prescriptions of ''what ought to be'' and ''can be''. And which seeks to achieve a "transformation of human beings from followers of base desires to people concerned with achieving higher goals". (Feisal Khan describing the ideas of M.R. Zaman, M.U. Chapra, and M.N. Khan & M.I. Bhatti.) *"a discipline that is guided by the Shariah and studies all human societies" (A definition used by others, according to M. Anas Zarqa) *"restatements of Islamic economic teachings", using "modern economic jargon". (What most of the knowledge content in the body of Islamic economics amounts to according to economist Muhammad Akram Khan) *an ideology **"a revolutionary ideology" to change "the corrupt reality ... into a pure one", and "not a science of political economy" or "an objective analysis of existing reality". (Ayatollah Murtaza Mutahhari) **an "ideological construct" developed by 20th century Islamists (by Abul A'la Maududi, Ayatollah
Muhammad Baqir al-Sadr Muhammad Baqir al-Sadr ( ar, آية الله العظمى السيد محمد باقر الصدر; 1 March 1935 – 9 April 1980), also known as al-Shahīd al-Khāmis (the fifth martyr), was an Iraqi philosopher, and the ideological founde ...
, Abolhassan Banisadr, etc.) taking basic prescriptions from
sharia Sharia (; ar, شريعة, sharīʿa ) is a body of religious law that forms a part of the Islamic tradition. It is derived from the religious precepts of Islam and is based on the sacred scriptures of Islam, particularly the Quran and the H ...
(Islamic law), and systematizing and conceptualizing them "to construct a coherent and functional ensemble offering a middle ground between the two systems of the twentieth century, Marxism and capitalism." (Social scientist Olivier Roy) * Zaman (2015) argues that confusion regarding appropriate definition of Islamic economics has arisen because of attempts to mix Western economics concepts with Islamic ideals, when the two are diametrically opposed to each other in many dimensions. He proposes a definition based on purely Islamic sources: "Islamic Economics is the EFFORT/STRUGGLE to implement the orders of Allah pertaining to economic affairs in our individual lives (Micro), in our communities (Meso), and at the level of Ummah (Macro)."


Fiqh and Islamic economics

Fiqh (religious law) has developed several traditional concepts having to do with economics. These included: * ''
Zakat Zakat ( ar, زكاة; , "that which purifies", also Zakat al-mal , "zakat on wealth", or Zakah) is a form of almsgiving, often collected by the Muslim Ummah. It is considered in Islam as a religious obligation, and by Quranic ranking, is ...
'' – the " charitable taxing of certain assets, such as
currency A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. A more general ...
,
gold Gold is a chemical element with the symbol Au (from la, aurum) and atomic number 79. This makes it one of the higher atomic number elements that occur naturally. It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile ...
, or
harvest Harvesting is the process of gathering a ripe crop from the fields. Reaping is the cutting of grain or pulse for harvest, typically using a scythe, sickle, or reaper. On smaller farms with minimal mechanization, harvesting is the most l ...
, with an eye to allocating these taxes to eight expenditures that are also explicitly defined in the Quran, such as aid to those in need." * ''
Gharar ''Gharar'' ( ar, غرر) literally means uncertainty, hazard, chance or risk. It is a negative element in ''mu'amalat'' ''fiqh'' (transactional Islamic jurisprudence), like '' riba'' (usury) and '' maysir'' (gambling). One Islamic dictionary (''A ...
''—"uncertainty". The presence of any element of excessive uncertainty, in a
contract A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tr ...
is prohibited. * ''
Riba The Royal Institute of British Architects (RIBA) is a professional body for architects primarily in the United Kingdom, but also internationally, founded for the advancement of architecture under its royal charter granted in 1837, three supp ...
''—"referred to as
usury Usury () is the practice of making unethical or immoral monetary loans that unfairly enrich the lender. The term may be used in a moral sense—condemning taking advantage of others' misfortunes—or in a legal sense, where an interest rate is c ...
(modern Islamic economists reached consensus that Riba is any kind of interest, rather than just usury)" is prohibited. Another source lists "general rules" include prohibition of ''Riba'', ''Gharar'', and also *'' Qimar'' (gambling) and *the encouragement of '' Taa’won'' (mutual cooperation), *"the overriding doctrine of fairness in commercial dealings is established." These concepts, like others in Islamic law, came from study of the
Quran The Quran (, ; Standard Arabic: , Quranic Arabic: , , 'the recitation'), also romanized Qur'an or Koran, is the central religious text of Islam, believed by Muslims to be a revelation from God. It is organized in 114 chapters (pl.: , ...
and ahadith—or as one observer put it, were
constructed on the basis of isolated prescriptions, anecdotes, examples, words of the Prophet, all gathered together and systematized by commentators according to an inductive, casuistic method."
In addition to
Quran The Quran (, ; Standard Arabic: , Quranic Arabic: , , 'the recitation'), also romanized Qur'an or Koran, is the central religious text of Islam, believed by Muslims to be a revelation from God. It is organized in 114 chapters (pl.: , ...
and ahadith, sometimes other sources such as '' al-urf'' (custom), or ''al-
ijma ''Ijmāʿ'' ( ar, إجماع , " consensus") is an Arabic term referring to the consensus or agreement of the Islamic community on a point of Islamic law. Sunni Muslims regard ''ijmā as one of the secondary sources of Sharia law, after the Qur' ...
'' (consensus of the
jurists A jurist is a person with expert knowledge of law; someone who analyses and comments on law. This person is usually a specialist legal scholar, mostly (but not always) with a formal qualification in law and often a legal practitioner. In the U ...
) are employed, to create laws that determine whether actions were forbidden, discouraged, allowed, encouraged and obligatory for Muslims. The different school of fiqh (''
madhhab A ( ar, مذهب ', , "way to act". pl. مَذَاهِب , ) is a school of thought within '' fiqh'' (Islamic jurisprudence). The major Sunni Mathhab are Hanafi, Maliki, Shafi'i and Hanbali. They emerged in the ninth and tenth centurie ...
'') vary slightly in their rulings. Works of fiqh are typically divided into different "books" such as a Book of '' Iman'', of ''
Salah (, plural , romanized: or Old Arabic ͡sˤaˈloːh, ( or Old Arabic ͡sˤaˈloːtʰin construct state) ), also known as ( fa, نماز) and also spelled , are prayers performed by Muslims. Facing the , the direction of the Kaaba with ...
'', ''
Zakat Zakat ( ar, زكاة; , "that which purifies", also Zakat al-mal , "zakat on wealth", or Zakah) is a form of almsgiving, often collected by the Muslim Ummah. It is considered in Islam as a religious obligation, and by Quranic ranking, is ...
'', '' Taqwa'', ''
Hajj The Hajj (; ar, حَجّ '; sometimes also spelled Hadj, Hadji or Haj in English) is an annual Islamic pilgrimage to Mecca, Saudi Arabia, the holiest city for Muslims. Hajj is a mandatory religious duty for Muslims that must be carried o ...
,'' but not `economics` or `economy`. Some brief works might contain almost nothing related to matters of property, sales, finance Others do not gather questions on economic issues in one heading, the case in ''Tawzih al-masa'il'', a work of fatawa by Ayatollah
Ruhollah Khomeini Ruhollah Khomeini, Ayatollah Khomeini, Imam Khomeini ( , ; ; 17 May 1900 – 3 June 1989) was an Iranian political and religious leader who served as the first supreme leader of Iran from 1979 until his death in 1989. He was the founder of ...
, who although a pioneer of
political Islam Political Islam is any interpretation of Islam as a source of political identity and action. It can refer to a wide range of individuals and/or groups who advocate the formation of state and society according to their understanding of Islamic pri ...
approached the subject of economy Other works divided the subjects of fiqh into four "quarters": typically worship (al-`Ibadat), marriage and family law (al-Munakahat), criminal law (Jinayat), commercial transaction law ('' Mu'amalat''). At least one author (M. Kahf) writes that ''Mu'amalat'' is "closely related" to Islamic Economics. (However even with the "quarters" division of fiqh topics ''mu'amalat'' would not include inheritance or wedding dower (''
mahr In Islam, a mahr (in ar, مهر; fa, مهريه; tr, mehir; sw, mahari; also transliterated ''mehr'', ''meher'', ''mehrieh'', or ''mahriyeh'') is the obligation, in the form of money or possessions paid by the groom, to the bride at the time ...
'') (which at least often comes under marriage and family law), or calculation of alms (''
zakat Zakat ( ar, زكاة; , "that which purifies", also Zakat al-mal , "zakat on wealth", or Zakah) is a form of almsgiving, often collected by the Muslim Ummah. It is considered in Islam as a religious obligation, and by Quranic ranking, is ...
,'' which comes under ''al-`Ibadat'')). A number of scholars ( Olivier Roy,
Timur Kuran Timur Kuran is a Turkish-American economist and political scientist, Professor of Economics and Political Science, and Gorter Family Professor of Islamic Studies at Duke University. His work spans economics, political science, history, and law. E ...
, Omar Norman) have noted the recentness of reflecting on economic issues in the Islamic world, and the difference between economics the social science based on data, and Islamic jurisprudence based on revealed truth. Salman Ahmed Shaikh and Monzer Kahf insist on a clear distinction between the roles of ''Fiqh'' and Islamic Economics, Shaikh saying
to be meritorious as a separate field of inquiry, Islamic economics cannot confine itself just to explaining and deducing laws in economic matters based on core principles. Since this function is already performed by the discipline of Islamic jurisprudence ...
M. Kahf writes that ''mu'amalat'' and Islamic economics "often intermingle", ''mu'amalat'' "sets terms and conditions of conduct for economic and financial relationships in the Islamic economy" and provides the "grounds on which new instruments" of Islamic financing are developed, but that the "nature of ''Fiqh'' imposes a concern about individual transactions and their minute legalistic characteristics", so that analyzing Islamic economics in terms of ''Fiqh''" risks losing "the ability to provide a macro economic theory". According to economist Muhammad Akram Khan the "main plank" of Islamic economics is the "theory of riba", while "another landmark" is
zakat Zakat ( ar, زكاة; , "that which purifies", also Zakat al-mal , "zakat on wealth", or Zakah) is a form of almsgiving, often collected by the Muslim Ummah. It is considered in Islam as a religious obligation, and by Quranic ranking, is ...
, a tax on wealth and income. According to another contemporary writer Salah El-Sheikh, "Islamic economic principles" (what he calls a "FiqhiConomic model") utilize the
Faqīh A faqīh (plural ''fuqahā'', ar, فقيه, pl. ‏‎) is an Islamic jurist, an expert in ''fiqh'', or Islamic jurisprudence and Islamic Law. Definition Islamic jurisprudence or ''fiqh'' is the human understanding of the Sharia (b ...
(Islamic jurisprudence) as supporting material, but are grounded upon the ethical teachings within the Qu'rān. Sharīah's basic tenets involve gharar and (fadl māl bilā 'iwad). Gharar insists all knowledge about a trade or transaction is known before two individuals complete a transaction and (fadl māl bilā 'iwad) warns against unjustified enrichment through trade and business. These tenets were "among the first economic regulations" and their philosophy can be seen today in modern Capitalism. Within Sharīah, El-Sheikh states, Gharar functions as a divine deterrent against asymmetric information and allows trade to prosper. Riba, ensures each transaction is conducted at a fair price, not allowing one party to benefit exceedingly, which shares a parallel philosophy with Karl Marx "Das Kapital": seeking a greater outcome for the community.


History


Pre-modern Muslim thought on economics

Classical scholars in the Muslim world did however, make valuable contributions to Islamic thought on issues involving production, consumption, income, wealth, property, taxation, land ownership, etc. are Abu Yusuf (d. 798), Muhammad bin al-Hasan (d. 805),
Al-Mawardi Abū al-Ḥasan ʿAlī Ibn Muḥammad al-Māwardī (), known in Latin as Alboacen (972–1058 CE), was an Islamic jurist of the Shafi'i school most remembered for his works on religion, government, the caliphate, and public and constitutional law ...
(d. 1058),
Ibn Hazm Abū Muḥammad ʿAlī ibn Aḥmad ibn Saʿīd ibn Ḥazm ( ar, أبو محمد علي بن احمد بن سعيد بن حزم; also sometimes known as al-Andalusī aẓ-Ẓāhirī; 7 November 994 – 15 August 1064Ibn Hazm. ' (Preface). Tr ...
(d. 1064),
Sarakhsi Muhammad b. Ahmad b. Abi Sahl Abu Bakr al-Sarakhsi ( fa, محمد بن احمد بن ابي سهل ابو بكر السرخسي), was a Persian jurist and also an Islamic scholar of the Hanafi school of thought. He was traditionally known as Sham ...
(d. 1090),
Tusi ''Tusi'', often translated as "headmen" or "chieftains", were hereditary tribal leaders recognized as imperial officials by the Yuan, Ming, and Qing dynasties of China, and the Later Lê and Nguyễn dynasties of Vietnam. They ruled certain e ...
(d. 1093), Ghazali (d. 1111), Al-Dimashqi (d. after 1175),
Ibn Rushd Ibn Rushd ( ar, ; full name in ; 14 April 112611 December 1198), often Latinized as Averroes ( ), was an Andalusian polymath and jurist who wrote about many subjects, including philosophy, theology, medicine, astronomy, physics, psychology, ...
(d. 1187),
Ibn Taymiyyah Ibn Taymiyyah (January 22, 1263 – September 26, 1328; ar, ابن تيمية), birth name Taqī ad-Dīn ʾAḥmad ibn ʿAbd al-Ḥalīm ibn ʿAbd al-Salām al-Numayrī al-Ḥarrānī ( ar, تقي الدين أحمد بن عبد الحليم � ...
(d.1328), Ibn al-Ukhuwwah (d. 1329), Ibn al-Qayyim (d. 1350), Sayyid Ali Hamadani (d. 1384),
Al-Shatibi Al-Shatibi is an Arabic name indicating an origin in Xàtiva (Spain). It may refer to: *Abu Ishaq al-Shatibi Abū Isḥāq Ibrāhīm ibn Mūsā al-Shāṭibī (720 – 790 A.H./1320 – 1388 C.E.) was an Andalusí Sunni Islamic legal schola ...
(d. 1388),
Ibn Khaldun Ibn Khaldun (; ar, أبو زيد عبد الرحمن بن محمد بن خلدون الحضرمي, ; 27 May 1332 – 17 March 1406, 732-808 AH) was an Arab The Historical Muhammad', Irving M. Zeitlin, (Polity Press, 2007), p. 21; "It is, of ...
(d. 1406),
Al-Maqrizi Al-Maqrīzī or Maḳrīzī (Arabic: ), whose full name was Taqī al-Dīn Abū al-'Abbās Aḥmad ibn 'Alī ibn 'Abd al-Qādir ibn Muḥammad al-Maqrīzī (Arabic: ) (1364–1442) was a medieval Egyptian Arab historian during the Mamluk era, kn ...
(d. 1442), Dawwani (d. 1501), Muhammad Aurangzeb Alamgir (d. 1707), and
Shah Waliullah Dehlawi Quṭb-ud-Dīn Aḥmad Walīullāh Ibn ʿAbd-ur-Raḥīm Ibn Wajīh-ud-Dīn Ibn Muʿaẓẓam Ibn Manṣūr Al-ʿUmarī Ad-Dehlawī ( ar, ‎; 1703–1762), commonly known as Shāh Walīullāh Dehlawī (also Shah Wali Allah), was an Islamic ...
(d. 1762). Abu Yusuf (d. 798) was author of the book ''al Kharaj''—literally "the return or revenue" but was used by the author to mean "public revenues and taxation"—which was a policy guide to
Harun al-Rashid Abu Ja'far Harun ibn Muhammad al-Mahdi ( ar , أبو جعفر هارون ابن محمد المهدي) or Harun ibn al-Mahdi (; or 766 – 24 March 809), famously known as Harun al-Rashid ( ar, هَارُون الرَشِيد, translit=Hārūn ...
, the fifth
Abbasid Caliph The Abbasid caliphs were the holders of the Islamic title of caliph who were members of the Abbasid dynasty, a branch of the Quraysh tribe descended from the uncle of the Islamic prophet Muhammad, Al-Abbas ibn Abd al-Muttalib. The family came ...
. Muhammad bin al-Hasan (d.805) wrote ''al Iktisab fi al Rizq al Mustatab'' arned Desired income intended as advice to businessmen "in their endeavors to create income opportunities". Abu 'Ubaid al Qasim bin Sallam (d.839) was the author of ''al-Amwal'' (plural of "wealth"). Perhaps the most well-known Islamic scholar who wrote about economical issues was
Ibn Khaldun Ibn Khaldun (; ar, أبو زيد عبد الرحمن بن محمد بن خلدون الحضرمي, ; 27 May 1332 – 17 March 1406, 732-808 AH) was an Arab The Historical Muhammad', Irving M. Zeitlin, (Polity Press, 2007), p. 21; "It is, of ...
, who has been called "the father of modern economics" by I.M. Oweiss. Ibn Khaldun wrote on what is now called economic and political theory in the introduction, or ''
Muqaddimah The ''Muqaddimah'', also known as the ''Muqaddimah of Ibn Khaldun'' ( ar, مقدّمة ابن خلدون) or ''Ibn Khaldun's Prolegomena'' ( grc, Προλεγόμενα), is a book written by the Arab historian Ibn Khaldun in 1377 which records ...
'' (''Prolegomena''), of his ''History of the World'' ('' Kitab al-Ibar''). He discussed what he called ''asabiyya'' (social cohesion), which he cited as the cause of the advancement of some civilizations. Ibn Khaldun felt that many social forces are cyclic, although there could be sudden sharp turns that break the pattern. His ideas about the benefits of the
division of labor The division of labour is the separation of the tasks in any economic system or organisation so that participants may specialise (specialisation). Individuals, organizations, and nations are endowed with, or acquire specialised capabilities, and ...
also relate to ''asabiyya'', the greater the social cohesion, the more complex the successful division may be, the greater the economic growth. He noted that growth and development positively stimulates both
supply and demand In microeconomics, supply and demand is an economic model of price determination in a Market (economics), market. It postulates that, Ceteris paribus, holding all else equal, in a perfect competition, competitive market, the unit price for a ...
, and that the forces of supply and demand are what determines the prices of goods. He also noted
macroeconomic Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole. For example, using interest rates, taxes, an ...
forces of population growth,
human capital Human capital is a concept used by social scientists to designate personal attributes considered useful in the production process. It encompasses employee knowledge, skills, know-how, good health, and education. Human capital has a substantial ...
development, and technological developments effects on development. In fact, Ibn Khaldun thought that population growth was directly a function of wealth. Medieval Islamic economics appears to have somewhat resembled a form of capitalism, some arguing that it laid the foundations for the development of modern capitalism.


Early modern period

Economic policies based on
sharia Sharia (; ar, شريعة, sharīʿa ) is a body of religious law that forms a part of the Islamic tradition. It is derived from the religious precepts of Islam and is based on the sacred scriptures of Islam, particularly the Quran and the H ...
were introduced throughout the Gunpowder empires, which led to their commercial expansion. Chiefly the
Ottoman Empire The Ottoman Empire, * ; is an archaic version. The definite article forms and were synonymous * and el, Оθωμανική Αυτοκρατορία, Othōmanikē Avtokratoria, label=none * info page on book at Martin Luther University ...
and
Mughal India The Mughal Empire was an early-modern empire that controlled much of South Asia between the 16th and 19th centuries. Quote: "Although the first two Timurid emperors and many of their noblemen were recent migrants to the subcontinent, the d ...
underwent substantial increases in per capita income and population, and a sustained pace of technological innovation. Significant was Muslim India's
Fatawa 'Alamgiri Fatawa 'Alamgiri, also known as Al-Fatawa al-'Alamgiriyya ( ar, الفتاوى العالمگيرية) or Al-Fatawa al-Hindiyya ( ar, الفتاوى الهندية), is a 17th-century sharia based compilation on statecraft, general ethics, milita ...
, compiled by
Mughal Emperor The Mughal emperors ( fa, , Pādishāhān) were the supreme heads of state of the Mughal Empire on the Indian subcontinent, mainly corresponding to the modern countries of India, Pakistan, Afghanistan and Bangladesh. The Mughal rulers styled ...
Aurangzeb Alamgir Muhi al-Din Muhammad (; – 3 March 1707), commonly known as ( fa, , lit=Ornament of the Throne) and by his regnal title Alamgir ( fa, , translit=ʿĀlamgīr, lit=Conqueror of the World), was the sixth emperor of the Mughal Empire, ruling ...
and
Shah Waliullah Dehlawi Quṭb-ud-Dīn Aḥmad Walīullāh Ibn ʿAbd-ur-Raḥīm Ibn Wajīh-ud-Dīn Ibn Muʿaẓẓam Ibn Manṣūr Al-ʿUmarī Ad-Dehlawī ( ar, ‎; 1703–1762), commonly known as Shāh Walīullāh Dehlawī (also Shah Wali Allah), was an Islamic ...
's family, through which the Indian subcontinent surpassed
Qing China The Qing dynasty ( ), officially the Great Qing,, was a Manchu-led imperial dynasty of China and the last orthodox dynasty in Chinese history. It emerged from the Later Jin dynasty founded by the Jianzhou Jurchens, a Tungusic-speaki ...
to become the world's largest economy, valued 25% of world GDP, while the region of
Mughal Bengal The Bengal Subah ( bn, সুবাহ বাংলা; fa, ), also referred to as Mughal Bengal ( bn, মোগল বাংলা), was the largest subdivision of the Mughal Empire (and later an independent state under the Nawabs of Beng ...
waved the period of proto-industrialization, making direct contribution to
England England is a country that is part of the United Kingdom. It shares land borders with Wales to its west and Scotland to its north. The Irish Sea lies northwest and the Celtic Sea to the southwest. It is separated from continental Europe ...
's first
Industrial Revolution The Industrial Revolution was the transition to new manufacturing processes in Great Britain, continental Europe, and the United States, that occurred during the period from around 1760 to about 1820–1840. This transition included going f ...
after the
Battle of Plassey The Battle of Plassey was a decisive victory of the British East India Company over the Nawab of Bengal and his French allies on 23 June 1757, under the leadership of Robert Clive. The victory was made possible by the defection of Mir Jafar ...
.


Development of "Islamic economics"

According to Turkish-American economist
Timur Kuran Timur Kuran is a Turkish-American economist and political scientist, Professor of Economics and Political Science, and Gorter Family Professor of Islamic Studies at Duke University. His work spans economics, political science, history, and law. E ...
, "not until the mid-twentieth century" was there any body of thought that could be called "Islamic economics", that was "recognizable as a coherent or self-contained doctrine". But around 1950 "campaigns launched to identify self-consciously, if not also exclusively, Islamic patterns of economic thought and behavior". The famous early-20th Century Muslim nationalist and author
Muhammad Iqbal Sir Muhammad Iqbal ( ur, ; 9 November 187721 April 1938), was a South Asian Muslim writer, philosopher, Quote: "In Persian, ... he published six volumes of mainly long poems between 1915 and 1936, ... more or less complete works on philos ...
, for example, did not refer to religion in his treatise on economics. Islamic economics grew naturally from the Islamic revival and political Islam whose adherents considered Islam to be a complete system of life in all its aspects, rather than a spiritual formula and believed that it logically followed that Islam must have an economic system, unique from and superior to non-Islamic economic systems. "Islamic economics" "emerged" in the 1940s according to the Encyclopedia of Islam and the Muslim World. Maulana ala Maududi's 1941 address "The economic problem of man and its Islamic solution" (''Insaan ka Maashi Maslah aur aus ka Islami Hul'') is "generally considered to be one of the founding documents of modern Islamic economics" More conservative salafi have shown less interest in socioeconomic issues, asking the question, "the prophet and his companions didn't study 'laws' of economics, look for patterns, strive for understanding of what happens in commerce, production, consumption. Why should we?" Maududi himself also dismissed the need for a "new science of economics, embodied in voluminous books, with high-sounding terminology and large organisation", as the true "economic problem of man"—along with all his social, political and other problems—"can be easily understood" and is simply the failure to follow Islamic law. ;1960, 70s In the 1960s and 1970s, Shi'a thinkers worked to describe Islamic economics' "own answers to contemporary economic problems." Several works were particularly influential: * ''Eslam va Malekiyyat'' (Islam and Property) by Mahmud Taleqani (1951), * ''
Iqtisaduna ''Our Economy'' (, ) is a major work in Arabic on Islamic economics by prominent Shia cleric Muhammad Baqir al-Sadr. Muhammad Baqir Al-Sadr was born on Kadhimiyeh, Baghdad in 1935. The book was written between 1960 and 1961, and published in 1 ...
'' (Our Economics) by
Mohammad Baqir al-Sadr Muhammad Baqir al-Sadr ( ar, آية الله العظمى السيد محمد باقر الصدر; 1 March 1935 – 9 April 1980), also known as al-Shahīd al-Khāmis (the fifth martyr), was an Iraqi philosopher, and the ideological founde ...
(1961) and * ''Eqtesad-e Towhidi'' (The Economics of Divine Harmony) by Abolhassan Banisadr (1978) * ''Some Interpretations of Property Rights, Capital and Labor from Islamic Perspective'' by Habibullah Peyman (1979).Revolutionary Surge and Quiet Demise of Islamic Economics in Iran
Al-Sadr in particular was described as having "almost single-handedly developed the notion of Islamic economics". In their writings, Sadr and the other authors "sought to depict Islam as a religion committed to social justice, the equitable distribution of wealth, and the cause of the deprived classes," with doctrines "acceptable to Islamic jurists," while refuting existing non-Islamic theories of
capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private ...
and
Marxism Marxism is a Left-wing politics, left-wing to Far-left politics, far-left method of socioeconomic analysis that uses a Materialism, materialist interpretation of historical development, better known as historical materialism, to understand S ...
.
Mohammad Baqir al-Sadr Muhammad Baqir al-Sadr ( ar, آية الله العظمى السيد محمد باقر الصدر; 1 March 1935 – 9 April 1980), also known as al-Shahīd al-Khāmis (the fifth martyr), was an Iraqi philosopher, and the ideological founde ...
and also cleric
Mahmoud Taleghani Sayyid Mahmoud Alaee Taleghani ( fa, محمود طالقانی, , also Romanized as Seyed Mahmūd Tāleqānī; 5 March 1911 – 9 September 1979) was an Iranian theologian, Muslim reformer, democracy advocate and a senior Shi'a Islamic Scholar ...
developed an "Islamic economics" emphasizing a major role for the state in matters such as circulation and equitable distribution of wealth, and a reward to participants in the marketplace for being exposed to risk or liability. This version of Islamic economics, which influenced the
Iranian Revolution The Iranian Revolution ( fa, انقلاب ایران, Enqelâb-e Irân, ), also known as the Islamic Revolution ( fa, انقلاب اسلامی, Enqelâb-e Eslâmī), was a series of events that culminated in the overthrow of the Pahlavi dyna ...
, called for public ownership of land and of large "industrial enterprises," while private economic activity continued "within reasonable limits." These ideas informed the large public sector and public subsidy policies of the Iranian Revolution. Sunni cleric Taqiuddin al-Nabhani proposed economic system (''Nidham ul-Iqtisad fil Islam'' (The Economic System of Islam) by Taqiuddin Nabhani (1953)) combined public ownership of large chunks of the economy (utilities, public transport, health care, energy resources such as oil, and unused farm land), with use of the
gold standard A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. The gold standard was the basis for the international monetary system from the 1870s to the early 1920s, and from th ...
and specific instructions for the gold and silver weights of coins, arguing this would "demolish ... American control and the control of the dollar as an international currency." In the Sunni world the first international conference on Islamic economics was held at the King Abdulaziz University in Jeddah in 1976. Since then the International Association for Islamic Economics in collaboration with the
Islamic Development Bank The Islamic Development Bank ( ar, البنك الإسلامي للتنمية, abbreviated as IsDB) is a multilateral development finance institution that is focused on Islamic finance for infrastructure development and located in Jeddah, Saudi ...
has held conferences in Islamabad (1983), Kuala Lumpur (1992), Loughborough (2000), Bahrain (2003), Jakarta (2005) and Jeddah (2008), Iqbal (2008). In addition there have been hundreds of seminars, workshops and discussion groups around the world on Islamic economics and finance. In the U.S. a small number of
patent application A patent application is a request pending at a patent office for the grant of a patent for an invention described in the patent specification and a set of one or more claims stated in a formal document, including necessary official forms and re ...
s have been filed for Sharia compliant financial service methods. ;Khomeini era What has been called one of "two versions" of "Islamic economy" existed during the first ten years (1979–1989) of the Islamic Republic of Iran during the life of Supreme Leader (and
revolution In political science, a revolution (Latin: ''revolutio'', "a turn around") is a fundamental and relatively sudden change in political power and political organization which occurs when the population revolts against the government, typically due ...
founder)
Ayatollah Ayatollah ( ; fa, آیت‌الله, āyatollāh) is an honorific title for high-ranking Twelver Shia clergy in Iran and Iraq that came into widespread usage in the 20th century. Etymology The title is originally derived from Arabic word ...
Ruhollah Khomeini Ruhollah Khomeini, Ayatollah Khomeini, Imam Khomeini ( , ; ; 17 May 1900 – 3 June 1989) was an Iranian political and religious leader who served as the first supreme leader of Iran from 1979 until his death in 1989. He was the founder of ...
. This was an "Islamist
socialist Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes the ...
, and state-run": It was "little by little supplanted" by a more liberal economic policy.. ;Post-socialist trend In the 1980s and 1990s, as the
Islamic revolution The Iranian Revolution ( fa, انقلاب ایران, Enqelâb-e Irân, ), also known as the Islamic Revolution ( fa, انقلاب اسلامی, Enqelâb-e Eslâmī), was a series of events that culminated in the overthrow of the Pahlavi dyna ...
failed to reach the
per capita income Per capita income (PCI) or total income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area's total income by its total population. Per capita i ...
level achieved by the regime it overthrew, and Communist states and socialist parties in the non-Muslim world turned away from
socialism Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes th ...
, Muslim interest shifted away from government ownership and regulation. In Iran, "''eqtesad-e Eslami'' (meaning both Islamic economics and economy) ... once a revolutionary shibboleth, is indubitably absent in all official documents and the media. It disappeared from Iranian political discourse" about 1990. During the era of
Zia-ul-Haq General Muhammad Zia-ul-Haq HI, GCSJ, ร.ม.ภ, ( Urdu: ; 12 August 1924 – 17 August 1988) was a Pakistani four-star general and politician who became the sixth President of Pakistan following a coup and declaration of martial ...
, several Islamic economic concepts and practices were introduced into the domestic economy, as part of Zia's Islamisation reforms (see Islamic economics in Pakistan). The term lived on in the Muslim world, shifting form to the less ambitious goal of interest-free banking. Some Muslim bankers and religious leaders suggested ways to integrate Islamic law on usage of money with modern concepts of ethical investing. In banking this was done through the use of sales transactions (focusing on the fixed rate return modes) to support investing without interest-bearing debt. Many modern writers have strongly criticized this approach as a means of covering conventional banking with an Islamic facade. (Sohrab Behada has argued that the economic system proposed by Islam is essentially a capitalist one.)


As an academic discipline


Achievements

As of 2008 there were: *Eight magazines recently started "exclusively devoted to Islamic economics and finance", *484 research projects in various universities of ten countries including the US, the UK and Germany. *200 Ph.D. dissertations completed at different universities of the world, literature published English, Arabic,
Urdu Urdu (;"Urdu"
''

Challenges

Along with these achievements, some Islamic economists have complained of problems in the academic discipline: a shift in interest away from Islamic Economics to Islamic Finance since the 1980s, a shortage of university courses, reading materials that are "either scant or of poor quality", lack of intellectual freedom, "narrow focus" on interest-free banking and
zakat Zakat ( ar, زكاة; , "that which purifies", also Zakat al-mal , "zakat on wealth", or Zakah) is a form of almsgiving, often collected by the Muslim Ummah. It is considered in Islam as a religious obligation, and by Quranic ranking, is ...
without data-based research to substantiate claim made for them—that interest causes economic problems or that zakat solves them. A number of economists have lamented that while
Islamic Finance Islamic banking, Islamic finance ( ar, مصرفية إسلامية), or Sharia-compliant finance is banking or financing activity that complies with Sharia (Islamic law) and its practical application through the development of Islamic econom ...
was originally a "
subset In mathematics, set ''A'' is a subset of a set ''B'' if all elements of ''A'' are also elements of ''B''; ''B'' is then a superset of ''A''. It is possible for ''A'' and ''B'' to be equal; if they are unequal, then ''A'' is a proper subset of ...
" of Islamic Economics, economics and research in pure Islamic economics has been "shifted to the back burner". Funding for research has gone to Islamic Finance despite the lack of "scientific knowledge to back" the claims made for Islamic Finance.Tahir, Sayyid (January 2009) "Islamic finance: Undergraduate education". ''Islamic Economic Studies'' 16 (1–2): 71 Enrollment has subsided in classesSiddiqi, Muhammad Nejatullah, 2008 ''Obstacles to Islamic economics research.'' Paper presented at 7th International Conference on Islamic Economics, King Abdulaziz University, 1–3 April, Jeddah
and second and third generation Islamic economists are scarce, some institutions have "lost their real direction and some have even been closed".
and interest of economists in the field's "grand idea" of providing an alternative to capitalism and socialism has "yielded" to the "needs" of the "industry" of Islamic Finance. According to economist Rasem Kayed, while a number of universities and institutes of higher learning now offer courses on Islamic economics and finance "most of the courses offered by these institutions pertain to
Islamic finance Islamic banking, Islamic finance ( ar, مصرفية إسلامية), or Sharia-compliant finance is banking or financing activity that complies with Sharia (Islamic law) and its practical application through the development of Islamic econom ...
rather than Islamic economics." Surveying Islamic economics and finance courses being offered as of 2008 by 14 universities in Muslim countries, Kayed found 551 courses in conventional economics and finance, and only 12 courses in Islamic economics and finance (only 2% of the total). This "appalling and intolerable ... negligence" was made worse by the curriculum of the courses which failed to debate "the issues" the discipline or give "due thought to ... the future development of Islamic financial industry" but rather attempted "to squeeze as much abstract information" as possible in their courses, according to Kayed. Another economist (Muhammad Akram Khan) lamented that "the real problem is that despite efforts for developing a separate discipline of Islamic economics, there is not much that can be genuinely called `economics`. Most of Islamic economics consists of theology on economic matters." Another (M.N. Siddiqi) notes Islamic economics has been teaching "conventional economics from an Islamic perspective", rather than Islamic economics. Despite its start in 1976, as of 2009, 2013 Islamic economics was called still in its infancy, its "curricula frames, course structures, reading materials, and research", "mostly" anchored in the "mainstream tradition", "lacking sufficiency, depth, coordination and direction," with teaching faculties in many cases ... found short of the needed knowledge, scholarship, and commitment."Hasan, Zubair (January 2009) "Islamic finance education at the graduate level: Current state and challenges." ''Islamic Economic Studies'', 16 (1–2):81 "Distinct textbooks and teaching materials" required have been found to "neither exist" nor be "easy to create." Despite shortcomings in academic writing—most of the books are "not cohesive" and are "at best no more than extended papers on specific topics"—constructive evaluations are not common and response to what there is even less common.Hasan, Zubair (January 2009) "Islamic finance education at the graduate level: Current state and challenges." ''Islamic Economic Studies'', 16 (1–2):92–93 The lack of an Islamic economics textbook "looms large" for Muslim economists and scholars. Despite the holding of a workshop in November 2010 to arrange the writing of such a textbook, the participation of "a number of eminent Muslim economists", (at the International Institute of Islamic Thought in London) and the appointment of "a noted Muslim economist" to coordinate the production of the textbook, as of 2015 "no standard textbook of Islamic economics was available." Islamic economic institutes are not known for their intellectual freedom, and according to Muhammad Akram Khan are unlikely to allow criticism of the ideas or policies of their founding leaders or governments. The Centre for Research in Islamic Economics, an organ of the Jeddah University in Saudi Arabia, for example, "cannot allow publication of any work that goes against the orthodox thinking of the influential" Saudi religious leadership. Despite "tall talk about ijtehad", Islamic economists "are shy" about "suggesting innovative ideas" for fear of antagonizing religious clerics. Use of Islamic terminology not only for distinctive Islamic concepts such as ''riba, zakat, mudaraba'' but also for concepts that do not have specific Islamic connotation—''adl'' for justice, ''hukuma'' for government—locking out non-Muslim and even not Arabic speaking readers from the content of Islamic economics and even "giving legitimacy" to "pendantry" in the field.


Property

According to authors F. Nomani and A. Rahnema, the Qur'an states that God is the sole owner of all matter in the heavens and the earth, but man is God's viceregent on earth and holds God's possessions in trust (''amanat''). Islamic jurists divide properties into public, state, private categories.. Some Muslims believe that the Shariah provides "specific laws and standards regarding the use and allocation of resources including land, water, animals, minerals, and manpower."


Public property

According to M. A. Khan, "Islam introduced the distinction between
private property Private property is a legal designation for the ownership of property by non-governmental legal entities. Private property is distinguishable from public property and personal property, which is owned by a state entity, and from collective or ...
and
public property Public property is property that is dedicated to public use. The term may be used either to describe the use to which the property is put, or to describe the character of its ownership (owned collectively by the population of a state). This is in ...
and made the rulers accountable to the people". Scholars F. Nomani and A. Rahnema state that public property in Islam refers to natural resources (
forest A forest is an area of land dominated by trees. Hundreds of definitions of forest are used throughout the world, incorporating factors such as tree density, tree height, land use, legal standing, and ecological function. The United Nations' ...
s,
pasture Pasture (from the Latin ''pastus'', past participle of ''pascere'', "to feed") is land used for grazing. Pasture lands in the narrow sense are enclosed tracts of farmland, grazed by domesticated livestock, such as horses, cattle, sheep, or sw ...
s, uncultivated land,
water Water (chemical formula ) is an inorganic, transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of all known living organisms (in which it acts as ...
, mines, oceanic resources etc.) to which all humans have equal right. Such resources are considered the
common Common may refer to: Places * Common, a townland in County Tyrone, Northern Ireland * Boston Common, a central public park in Boston, Massachusetts * Cambridge Common, common land area in Cambridge, Massachusetts * Clapham Common, originally ...
property of the community. Such property is placed under the guardianship and control of the Islamic state, and can be used by any citizen, as long as that use does not undermine the rights of other citizens, according to Nomani and Rahnema. The owner of previously public property that is privatized pays ''zakat'' and, according to Shi'ite scholars, ''
khums In Islam, khums ( ar, خُمْس , literally 'one fifth') refers to the required religious obligation of any Muslims to pay 20% of their acquired wealth from certain sources toward specified causes. It is treated differently in Shia and Su ...
'' as well. In general, the
privatization Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
and
nationalization Nationalization (nationalisation in British English) is the process of transforming privately-owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization usually refers to p ...
of public property is subject to debate amongst Islamic scholars. According to an analysis by Walid El-Malik in 1993, only the Maliki school took the position that all kinds of natural resources are state-owned; the Hanafi school took the opposite view and held that mineral ownership followed surface ownership, while the other two schools, Shafi'i and Hanbali, drew a distinction between "hidden" and "unhidden" minerals.


State property

State property includes certain natural resources, as well as other property that cannot immediately be privatized. Islamic state property can be movable, or immovable, and can be acquired through conquest or peaceful means. Unclaimed, unoccupied and heir-less properties, including uncultivated land (''mawat''), can be considered state property. During the life of Muhammad, one fifth of military equipment captured from the enemy in the battlefield was considered state property. During his reign,
Umar ʿUmar ibn al-Khaṭṭāb ( ar, عمر بن الخطاب, also spelled Omar, ) was the second Rashidun caliph, ruling from August 634 until his assassination in 644. He succeeded Abu Bakr () as the second caliph of the Rashidun Caliphate ...
(on the recommendation of Ali) considered conquered land to be state rather than private property (as was usual practice). The purported reason for this was that privatizing this property would concentrate resources in the hands of a few, and prevent it from being used for the general good. The property remained under the occupation of the cultivators, but taxes were collected on it for the state treasury. Muhammad said "Old and fallow lands are for God and His Messenger (i.e. state property), then they are for you". Jurists draw from this the conclusion that, ultimately, private ownership takes over state property.


Private property

There is consensus amongst Islamic jurists and social scientists that Islam recognizes and upholds the individual's right to private ownership. The Qur'an extensively discusses taxation,
inheritance Inheritance is the practice of receiving private property, titles, debts, entitlements, privileges, rights, and obligations upon the death of an individual. The rules of inheritance differ among societies and have changed over time. Of ...
, prohibition against stealing, legality of ownership, recommendation to give charity and other topics related to private property. Islam also guarantees the protection of private property by imposing stringent punishments on thieves. Muhammad said that he who dies defending his property was like a
martyr A martyr (, ''mártys'', "witness", or , ''marturia'', stem , ''martyr-'') is someone who suffers persecution and death for advocating, renouncing, or refusing to renounce or advocate, a religious belief or other cause as demanded by an externa ...
. Islamic economists classify the acquisition of private property into involuntary, contractual and non-contractual categories. Involuntary means are inheritances, bequests, and gifts. Non-contractual acquisition involves the collection and
exploitation of natural resources The exploitation of natural resources is the use of natural resources for economic growth, sometimes with a negative connotation of accompanying environmental degradation. It started to emerge on an industrial scale in the 19th century as the e ...
that have not previously been claimed as private property. Contractual acquisition includes activities such as trading, buying, renting, hiring labor etc. A tradition attributed to Muhammad, with which both Sunni and Shi'a jurists agree, in cases where the right to private ownership causes harm to others, then Islam favors curtailing the right in those cases.
Maliki The ( ar, مَالِكِي) school is one of the four major schools of Islamic jurisprudence within Sunni Islam. It was founded by Malik ibn Anas in the 8th century. The Maliki school of jurisprudence relies on the Quran and hadiths as prima ...
and
Hanbali The Hanbali school ( ar, ٱلْمَذْهَب ٱلْحَنۢبَلِي, al-maḏhab al-ḥanbalī) is one of the four major traditional Sunni schools ('' madhahib'') of Islamic jurisprudence. It is named after the Arab scholar Ahmad ibn Hanba ...
jurists argue that if private ownership endangers public interest, then the state can limit the amount an individual is allowed to own. This view, however, is debated by others. When Muhammad migrated to Madinah many of the Muslims owned agricultural land. Muhammad confirmed this ownership and allocated land to individuals. The land allotted would be used for housing, farming or gardening. For example, Bilal b. Harith was given land with mineral deposits at 'Aqiq Valley, Hassan b. Thabit was afforded the garden of Bayruha and Zubayr received oasis land at Khaybar and Banu Nadir. During the reign of Caliph Umar, a vast expanse of Persian royal family terrain had been acquired, this lead his successor Caliph Uthman to accelerate the allotment of land to individuals in return for a portion of the crop yield.


Markets

According to M. S. Naz, regulation of markets is among the main functions of ''
hisbah ''Hisbah'' ( ar, حسبة, ḥisba, "accountability")Sami Zubaida (2005), Law and Power in the Islamic World, , pages 58-60 is an Islamic doctrine referring to upholding "community morals", based on the Quranic injunction to " enjoin good and for ...
'', the "semi-judicial institution" operational from the "earliest days of Islam". It was "charged with responsibility of carrying out the spirit of the system, setting conditions that preserve and enhance the public health and interests, protect the consumers, solve business and labor disputes, promote good market behavior, and ensure their observance."Monzer Kahf (1996) Principles of Islamic Economics, IIUM. 41, 115, 123. M. A. Khan states, institution of ''Hisbah'' as established to "supervise markets, to provide municipal services, and to settle petty disputes". In the contemporary era, Pakistan has attempted to re-create this institution, although it has jurisdiction only over the administrative excesses of the federal government departments and agencies, not provincial ones or private companies. According to Nomani and Rahnema, Islam accepts markets as the basic coordinating mechanism of the economic system. Islamic teaching holds that the market, given perfect competition, allows consumers to obtain desired goods and producers to sell their goods at a mutually acceptable price. Three necessary conditions for an operational market are said (by Nomani and Rahnema) to be upheld in Islamic primary sources: * Freedom of exchange: the Qur'an calls on believers to engage in trade, and rejects the contention that trade is forbidden. * Private ownership (see above). * Security of contract: the Qur'an calls for the fulfillment and observation of contracts. The longest verse of the Qur'an deals with commercial contracts involving immediate and future payments. Another author (Nima Mersadi Tabari) claims that the general doctrine of fairness in sharia law creates "an ethical economic model" and forbids
market manipulation In economics and finance, market manipulation is a type of market abuse where there is a deliberate attempt to interfere with the free and fair operation of the market; the most blatant of cases involve creating false or misleading appearances ...
such as "inflating the price of commodities by creating artificial shortages (''Ihtekar''), overbidding for the sole purpose of driving the prices up (''Najash'') and concealment of vital information in a transaction from the other party (''Ghish'')". Further, "uninformed speculation" not based on a proper analysis of available information is forbidden because it is a form of ''Qimar'', or gambling, and results in accumulating ''Maysir'' (unearned income). Commercial contracting under conditions of "excessive uncertainty" (however that is defined) is a form of ''
Gharar ''Gharar'' ( ar, غرر) literally means uncertainty, hazard, chance or risk. It is a negative element in ''mu'amalat'' ''fiqh'' (transactional Islamic jurisprudence), like '' riba'' (usury) and '' maysir'' (gambling). One Islamic dictionary (''A ...
'' and so also forbidden.


Interference

Proponents such as M. A. Khan, Nomani and Rahnema also contend that the "Islamic economy" forbids or at least discourages market manipulation such as
price fixing Price fixing is an anticompetitive agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given ...
, hoarding and
bribery Bribery is the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official, or other person, in charge of a public or legal duty. With regard to governmental operations, essentially, bribery is "Cor ...
. Government intervention in the economy is tolerated under specific circumstances. Another author (Nima Mersadi Tabari) states that in Islam "everything is ''
Halal ''Halal'' (; ar, حلال, ) is an Arabic word that translates to "permissible" in English. In the Quran, the word ''halal'' is contrasted with '' haram'' (forbidden). This binary opposition was elaborated into a more complex classification k ...
'' (allowed) unless it has been declared ''
Haram ''Haram'' (; ar, حَرَام, , ) is an Arabic term meaning 'Forbidden'. This may refer to either something sacred to which access is not allowed to the people who are not in a state of purity or who are not initiated into the sacred knowle ...
'' (forbidden)", consequently "the Islamic economic model is based on the freedom of trade and freedom of contract so far as the limits of Shari’ah allow". King's College London Law School Research Paper No. 2014-10. Nomani and Rahnema say that Islam prohibits price fixing by a dominating handful of buyers or sellers. During the days of Muhammad, a small group of merchants met agricultural producers outside the city and bought the entire crop, thereby gaining a
monopoly A monopoly (from Greek language, Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situati ...
over the market. The produce was later sold at a higher price within the city. Muhammad condemned this practice since it caused injury both to the producers (who in the absence of numerous customers were forced to sell goods at a lower price) and the inhabitants. The above-mentioned reports are also used to justify the argument that the Islamic market is characterized by free information. Producers and consumers should not be denied information on demand and supply conditions. Producers are expected to inform consumers of the quality and quantity of goods they claim to sell. Some scholars hold that if an inexperienced buyer is swayed by the seller, the consumer may nullify the transaction upon realizing the seller's unfair treatment. The Qur'an also forbids discriminatory transactions. Bribery is also forbidden in Islam and can therefore not be used to secure a deal or gain favor in a transaction, it was narrated that Muhammad cursed the one who offers the bribe, the one who receives it, and the one who arranges it. Nomani and Rahnema say government interference in the market is justified in exceptional circumstances, such as the protection of public interest. Under normal circumstances, governmental non-interference should be upheld. When Muhammad was asked to set the price of goods in a market he responded, "I will not set such a precedent, let the people carry on with their activities and benefit mutually."


Banking and finance

Islamic banking has been called "the most visible practical achievement" of Islamic economics, and the "most visible mark" of Islamic revivalism. By 2009, there were over 300 "shariah compliant
bank A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...
s and 250
mutual fund A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICA ...
s around the world, and around $2 trillion were sharia-compliant by 2014. However, the domination of the industry by debt-like instruments such as ''
murabaha ''Murabaḥah'', ''murabaḥa'', or ''murâbaḥah'' ( ar, مرابحة, derived from ''ribh'' ar, ربح, meaning profit) was originally a term of ''fiqh'' (Islamic jurisprudence) for a sales contract where the buyer and seller agree on the m ...
'' rather than risk-sharing products, has driven even some leading advocates and experts in Islamic banking (such as Muhammad Nejatullah Siddiqi) to talk about "a crisis of identity of the Islamic financial movement."


Interest

The most noticeable and/or important objective of Islamic Banking has been a ban on the charging of interest on loans. The Quran (3: 130) condemns ''riba'' (which is usually translated as "interest"): "O, you who believe! Devour not ''riba'', doubled and redoubled, and be careful of Allah; but fear Allah that you may be successful."


Islamic public finance (''Bayt-al-Mal'')

The only financial institution under Islamic Governance (Prophethood and Caliph Period) was Baitulmaal (public treasury) wherein the wealths were distributed instantly on the basis of need. During Prophethood the last receipt was tribute from Bahrain amounting eight hundred thousands dirham which was distributed in just one sitting. Though the first Caliph earmarked a house for Baitulmaal where all money was kept on receipt. As all money was distributed immediately the treasury generally remained locked up. At the time of his death there was only one dirham in the Baitulmaal. The second caliph besides developing the Central Baitulmaal also opened Baitulmaal at state and headquarters levels. He also carried census during his caliphate; and provisioned salaries to Government employees, stipend to poor and needy people along with social security to unemployed and retirement pensions. The concept of a public financial institution played a historic role in the Islamic economy. The idea of state collected wealth being made available to the needy general public was relatively new. The resources in the Bayt-al-Mal were considered God's resources and a trust, money paid into the shared bank was common property of all the Muslims and the ruler was just the trustee. The shared bank was treated as a financial institution and therefore subjected to the same prohibitions regarding interest. Caliph Umar spoke on the shared bank saying: "I did not find the betterment of this wealth except in three ways: (i) it is received by right, (ii) it is given by right, and (iii) it is stopped from wrong. As regards my own position vis-a-vis this wealth of yours; it is like that of a guardian of an orphan. If I am well-off, I shall leave it, but if I am hard-pressed I shall take from it as is genuinely permissible."


Proposals


Savings and investment

An alternative Islamic savings-investment model can be built around
venture capital Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which h ...
; investment banks; restructured corporations; and restructured
stock market A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include ''securities'' listed on a public stock exchange, ...
. This model looks at removing the interest-based banking and in replacing market inefficiencies such as subsidization of loans over profit-sharing investments due to double taxation and restrictions on investment in private equity.


Hybrids

Islamic banks have grown recently in the Muslim world, but are a very small share of the global economy compared to the Western debt banking paradigm. Hybrid approaches, which applies classical Islamic values but uses conventional lending practices, are much lauded by some proponents of modern human development theory.


Criticism and dispute

Islamic economics has been disparaged for *its alleged "incoherence, incompleteness, impracticality, and irrelevance", driven by "
cultural identity Cultural identity is a part of a person's identity, or their self-conception and self-perception, and is related to nationality, ethnicity, religion, social class, generation, locality or any kind of social group that has its own distinct cultu ...
" rather than
problem solving Problem solving is the process of achieving a goal by overcoming obstacles, a frequent part of most activities. Problems in need of solutions range from simple personal tasks (e.g. how to turn on an appliance) to complex issues in business an ...
(
Timur Kuran Timur Kuran is a Turkish-American economist and political scientist, Professor of Economics and Political Science, and Gorter Family Professor of Islamic Studies at Duke University. His work spans economics, political science, history, and law. E ...
, John Foster); *being "a hodgepodge of populist and socialist ideas" in theory, and "nothing more than inefficient state control of the economy and some almost equally ineffective redistribution policies" in practice ( Fred Halliday);Halliday, Fred, ''100 Myths about the Middle East'', Saqi Books, 2005 p. 89
In a political and regional context where Islamist and
ulema In Islam, the ''ulama'' (; ar, علماء ', singular ', "scholar", literally "the learned ones", also spelled ''ulema''; feminine: ''alimah'' ingularand ''aalimath'' lural are the guardians, transmitters, and interpreters of religious ...
claim to have an opinion about everything, it is striking how little they have to say about this most central of human activities, beyond repetitious pieties about how their model is neither
capitalist Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private ...
nor
socialist Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes the ...
.
*being little more than a mimicry of conventional economics embellished with verses of the
Quran The Quran (, ; Standard Arabic: , Quranic Arabic: , , 'the recitation'), also romanized Qur'an or Koran, is the central religious text of Islam, believed by Muslims to be a revelation from God. It is organized in 114 chapters (pl.: , ...
and
sunnah In Islam, , also spelled ( ar, سنة), are the traditions and practices of the Islamic prophet Muhammad that constitute a model for Muslims to follow. The sunnah is what all the Muslims of Muhammad's time evidently saw and followed and passed ...
(Muhammad Akram Khan); *claiming to call for a return to Islamic practices that are actually an "
invented tradition Invented traditions are cultural practices that are presented or perceived as traditional, arising from the people starting in the distant past, but which in fact are relatively recent and often even consciously invented by identifiable historical ...
" (Timur Kuran); *failing to achieve its goals of abolishing interest on money, establishing economic equality, and a superior business ethic; but nonetheless "spared critical scrutiny out of ignorance, misguided tolerance", and because its methods and objectives are considered "too unrealistic to threaten prevailing economic structures" (
Timur Kuran Timur Kuran is a Turkish-American economist and political scientist, Professor of Economics and Political Science, and Gorter Family Professor of Islamic Studies at Duke University. His work spans economics, political science, history, and law. E ...
). ;Islamic banking and finance One significant result of Islamic economics (and target of criticism) is the creation of Islamic banking and finance industry. According to several scholars it has bred a new "Power Alliance" of "wealth and Shari'ah scholarship",—wealthy banks and clients paying Islamic scholars to provide bank products with Islamic "shariah compliance". Journalist John Foster, quotes an investment banker based in the Islamic Banking hub of
Dubai Dubai (, ; ar, wikt:دبي, دبي, translit=Dubayy, , ) is the List of cities in the United Arab Emirates#Major cities, most populous city in the United Arab Emirates (UAE) and the capital of the Emirate of Dubai, the most populated of the 7 ...
on the practice of "
fatwa A fatwā ( ; ar, فتوى; plural ''fatāwā'' ) is a legal ruling on a point of Islamic law (''sharia'') given by a qualified '' Faqih'' (Islamic jurist) in response to a question posed by a private individual, judge or government. A jurist ...
shopping",
We create the same type of products that we do for the conventional markets. We then phone up a Sharia scholar for a Fatwa eal of approval, confirming the product is Shari'ah compliant If he doesn't give it to us, we phone up another scholar, offer him a sum of money for his services and ask him for a Fatwa. We do this until we get Sharia compliance. Then we are free to distribute the product as Islamic.
Foster explains that the fee for services provided by "top" scholars is "often" in six-figures, i.e. over US$100,000. One critic (Muhammad O. Farooq) argues that this unfortunate situation has arisen because the "preoccupation" among supporters of Islamic Economics that any and all interest on loans is ''
riba The Royal Institute of British Architects (RIBA) is a professional body for architects primarily in the United Kingdom, but also internationally, founded for the advancement of architecture under its royal charter granted in 1837, three supp ...
'' and forbidden by Islam, and because risk-sharing alternatives to interest bearing loans originally envisioned for Islamic banking have not proven feasible. With the elimination of interest being both the basis of the industry and impractical, shari'a scholars have become "entrapped in a situation" where they are forced to approve transactions fundamentally similar to conventional loans but using "'' hiyal''" manipulation to "maintain an Islamic veneer". ;Justice Instead of "fixating" on interest, Farooq urges a focus on "the larger picture" of "justice", and in economics on fighting exploitation from "greed and profit," and the concentration of wealth. He quotes an ayat in support: "What God has bestowed on his Messenger (and taken away) from the people of the townships, - belongs to God, - to his Messenger and to kindred and orphans, the needy and the wayfarer; ''in order that it may not (merely) make a circuit between the wealthy among you.'' ..." As an example of the neglect of this issue, Farooq complains that one "rather comprehensive" bibliography of Islamic economics and finance, contains "not a single citation for exploitation or injustice" among its 700 entries. A former director of Pakistan Institute of Development Economics and the head of Pakistan's Economic Affairs Division, Syed Nawab Haider Naqvi, also called for "comprehensive Islamic reform to establish an exploitation-free economic system" and not just "mechanical substitution of profit for interest."Syed Nawab Haider NAQVI. ''Ethics and Economics: An Islamic Synthesis'' .K.: The Islamic Foundation, 1981 p.124 ;Zakat On the issue of ''
zakat Zakat ( ar, زكاة; , "that which purifies", also Zakat al-mal , "zakat on wealth", or Zakah) is a form of almsgiving, often collected by the Muslim Ummah. It is considered in Islam as a religious obligation, and by Quranic ranking, is ...
'', one of the pillars of Islam, M.A.Khan also criticizes the conservatism of Islamic Economics, complaining that "the insistence of Muslim scholars in implementing it in the same form in which it was in vogue in the days of the Prophet and the first four caliphs ... has made it irrelevant to the needs of a contemporary society." ;Practicality A supporter of Islamic economics ( Asad Zaman) describes a "major difficulty" faced by Islamic reformers of Islamic economics and pointed out by other authors, namely that because a financial system is an "integrated and coherent structure", to create an Islamic system "based on trust, community and no interest" requires "changes and interventions on several different fronts simultaneously".


See also

* Islamic economics in Pakistan *
Islamic philosophy Islamic philosophy is philosophy that emerges from the Islamic tradition. Two terms traditionally used in the Islamic world are sometimes translated as philosophy—falsafa (literally: "philosophy"), which refers to philosophy as well as logic, ...
* Economy of the OIC * Female labor force in the Muslim world *
Law and economics Law and economics, or economic analysis of law, is the application of microeconomic theory to the analysis of law, which emerged primarily from scholars of the Chicago school of economics. Economic concepts are used to explain the effects of law ...
*
State capitalism State capitalism is an economic system in which the state undertakes business and commercial (i.e. for-profit) economic activity and where the means of production are nationalized as state-owned enterprises (including the processes of capital ...
*
Corporatism Corporatism is a collectivist political ideology which advocates the organization of society by corporate groups, such as agricultural, labour, military, business, scientific, or guild associations, on the basis of their common interests. The ...
*
Dirigisme Dirigisme or dirigism () is an economic doctrine in which the state plays a strong directive (policies) role contrary to a merely regulatory interventionist role over a market economy. As an economic doctrine, dirigisme is the opposite of ''lai ...
* Economics of fascism * Economy of Malaysia * Economy of Brunei *
Economy of Azerbaijan An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the p ...
* Economy of Kazakhstan * Economy of Iran *
Economy of Jordan The economy of Jordan is classified as an emerging market economy. Jordan's GDP per capita rose by 351% in the 1970s, declined 30% in the 1980s, and rose 36% in the 1990s. After King Abdullah II's accession to the throne in 1999, liberal econ ...
*
Economy of Saudi Arabia The economy of Saudi Arabia is the largest in the Arab world, Middle East and the eighteenth largest in the world. A permanent and founding member of OPEC, the OPEC, Saudi Arabia is also a member of the G20 forum as one of the world's largest ...
*
Islamic banking and finance Islamic banking, Islamic finance ( ar, مصرفية إسلامية), or Sharia-compliant finance is banking or financing activity that complies with Sharia (Islamic law) and its practical application through the development of Islamic economi ...
*
Economic history of the Ottoman Empire The economic history of the Ottoman Empire covers the period 1299–1923. Trade, agriculture, transportation, and religion make up the Ottoman Empire's economy. The Ottomans saw military expansion of currency, more emphasis on manufacturing and ...
*
Christian finance Christian finance is a kind of ethical finance following Christian ethics. Although not widely used, the notion of "Christian finance" or "Catholic finance" refers to banking and financial activities which came into existence several centuries a ...
;People *
Muhammad Taqi Usmani Muhammad Taqi Usmani (born 5 October 1943) is a Pakistani Islamic scholar and former judge who is the current president of the Wifaq ul Madaris Al-Arabia and the vice president and Hadith professor of the Darul Uloom Karachi. An intellectual ...
*
Nathif Jama Adam Nathif Jama Adam ( so, Nadiif Jaamac Aadan, ar, نظيف جامع آدم) is a Kenyan banker, writer and politician. He previously served as a Senior Vice President and the Head of the Sharjah Islamic Bank's Investments & International Banking ...


References


Notes


Citations


Books, articles

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **


Torts

* A. Basir Bin Mohamad. "The Islamic Law of Tort: A Study of the Owner and Possessor of Animals with Special Reference to the Civil Codes of the United Arab Emirates, Lebanon, Tunisia, Morocco, Sudan and Iraq" in ''
Arab Law Quarterly The ''Arab Law Quarterly'' is an English language quarterly devoted to Arab law. The magazine was first published in September 1985. It is based in London and was published by Lloyd's of London in the past. It is now published by Brill Publishers ...
'' V.16, N.4 2001 * "Vicarious Liability: A Study of the Liability of the Guardian and his Ward in the Islamic Law of Tort" ''Arab Law Quarterly'' V. 17, N.1 2002 * Immanuel Naveh. "The Tort of Injury and Dissolution of Marriage at the Wife's Initiative in Egyptian Mahkamat al-Naqd Rulings" in ''Islamic Law and Society'' Volume 9, Number 1, 2002 * ''Islamic law of tort'' Liaquat Ali Khan Niazi, 1988 * ''An outline of Islamic law of tort'' Abdul-Qadir Zubair, 1990


External links


Economic Insaf, An Islamic Economics Framework
from GrandeStrategy.

HSBC HSBC Holdings plc is a British multinational universal bank and financial services holding company. It is the largest bank in Europe by total assets ahead of BNP Paribas, with US$2.953 trillion as of December 2021. In 2021, HSBC had $10.8 tr ...
article on Islamic finance. * Shamshad Akhtar et al.
"Understanding Islamic Finance: Local Innovation and Global Integration"
''Asia Policy'', July 2008. * Mohammad Omar Farooq
Riba, Interest and Six Hadiths: Do We Have a Definition or a Conundrum?
* Mahmoud el-Gamal
"An Economic Explanation of the Prohibition of Riba in Classical Islamic Jurisprudence"
Rice University William Marsh Rice University (Rice University) is a Private university, private research university in Houston, Houston, Texas. It is on a 300-acre campus near the Houston Museum District and adjacent to the Texas Medical Center. Rice is ranke ...
, Houston, Texas.
Methodology of Economics: Secular versus Islamic

Islamic Economics booklist
{{Islam topics , Law , state=collapsed Economic ideologies Economic law Schools of economic thought