The Garden of Knowledge

بسم الله الرحمن الرحيم

 19 Muharram 1446/26 July 2024

All praise is due to Allah, the Cherisher, Sustainer, Nourisher and Provider of the entire creation. May peace, blessings and salutations be upon our Beloved Prophet Muhammed ﷺ.

The Islamic Economic System is deemed to be a complete and comprehensive system inclusive of politics, economics and social aspects of behavior and trade. The Islamic Economic System guides man in the production and consumption of goods and services seeking just an fair distribution of wealth, taking care of the needy and developing men/women to be active members of society. There is no specific definition for Islamic Economics from the Quran and Sunnah however Islamic Economics can be defined as a collection of general economic principles, which are derived from the Quran and the Sunnah, and thereafter structured on the basis of those principles.

Allah Almighty being the creator and owner of the entire universe has implanted the concept of ownership in our nature thus allowing us to “own” the wealth of this world. As Allah mentioned in Surah Baqarah, verse 29:

هُوَ ٱلَّذِى خَلَقَ لَكُم مَّا فِى ٱلْأَرْضِ جَمِيعًۭا

“He has created for you whatever that is in the earth”

Self-monitoring and state-monitoring are essential in order for us to achieve human and economic development. In terms of self-monitoring, it is carried out through Ihsan (excellence) which is understood as worshipping Allah and carrying out ones actions as if one can see Allah, and if one cannot see Allah then it is to worship Allah and carry out ones actions knowing that surely Allah can see him and is aware of all his actions (based on Hadith Jibril, Sahih Muslim 8). With regards to state-monitoring, Islam gives the state a huge responsibility in setting up the guidance of development through the institution of Al Hisbah (upholding community morals, enjoining what is good and forbidding that which is evil).

Islam provides us with much more thorough guidance in economic matters, such as the absolute prohibition on interest, the obligation to pay Zakat (if one is eligible to pay Zakat), the freedom of work and enterprise, the obligation to care for the underprivileged, and the distinction between Halal (permissible) and Haram (prohibited) forms of income, consumption, and production.

Amongst the salient features of Islamic Economics we find:

• Freedom of work and enterprise: Trade is permissible as long as it does not violate the terms of the Shariah.
• Islam permits free market economic activity for us, subject to Islamic prohibitions and regulations on production, distribution, marketing, investment, trade, exchange, wages, and other matters. The state may also continue to intervene in this free market in order to restore order, promote justice, and further other Islamic goals.
• Prohibition of Interest: Islam prohibits interest. This requires a total reorganization of the economy, banking, investment, exchange, business and international trade. Concern for the needy: This is a unique trait found in Islam and zakat is a testimony to this.  
• Trustee ownership: In Islam God is the true owner of all things, however, Allah in His mercy allows human beings to inherit wealth, own it and use it subject to His laws.

We ask Allah to grant us the strength and the ability to bring about the salient features of an Islamic Economy into our communities. May Allah accept our efforts from us and grant us understanding In Sha Allah!