Reviewer (ISLAMIC POLITICAL ECONOMY)

ISLAMIC POLITICAL ECONOMY

Meaning:
The politics of Islamic economics guarantees fulfilling the basic or primary needs of each
individual from the country. The principle or basis of the politics of the Islamic economy is the
distribution of wealth fairly and evenly, not economic growth as adopted by capitalism or socialism.

Purpose:
Islamic Political Economics aims to fulfill each individual's primary needs (food, shelter, and
clothing). In implementing the Islamic Political Economy, the state has an important role, either
directly or indirectly.

Quran: (28:77).
ُّ ‫ض ۖ ِإنَّ ٱهَّلل َ اَل ُيح‬
‫ِب‬ َ ‫سنَ ٱهَّلل ُ ِإلَ ْي َك ۖ َواَل َت ْب ِغ ٱ ْل َف‬
ِ ‫سادَ فِى ٱَأْل ْر‬ َ ‫نس َنصِ ي َب َك مِنَ ٱل ُّد ْن َيا ۖ َوَأ ْحسِ ن َك َمٓا َأ ْح‬ َ ‫َوٱ ْب َت ِغ فِي َمٓا َءا َت ٰى َك ٱهَّلل ُ ٱل َّد‬
َ ‫ار ٱ ْلـَٔاخ َِر َة ۖ َواَل َت‬
َ‫ٱ ْل ُم ْفسِ دِين‬
“Rather, seek the ˹reward˺ of the Hereafter by means of what Allah has granted you, without forgetting
your share of this world. And be good ˹to others˺ as Allah has been good to you. Do not seek to spread
corruption in the land, for Allah certainly does not like the corruptors.”

Hadith: Narrated by abu ya’laa and others.

‫ال يحل مال امرئ مسلم إال بطيبة من نفس‬
“It is not permissible to take the wealth of another person (muslim) except with his permission”
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OWNERSHIP
Meaning:
In Islam, al-milkiyyah (ownership) refers to the legal relationship between a human being and
property that renders the property specifically attached to him.

Purpose:
According to the Islamic faith, the absolute ownership of all things belongs to Allah, and mankind
is entrusted to act upon property in accordance to what has been ordained. Clearly defined property
rights are fundamental to Islam, as the protection of property is one of the objectives of the Sharīʿah.

Quran: (5:20)
‫ش ْيءٍ َقدِي ٌر‬ ِ ‫ت َواَأل ْر‬
َ ِّ ‫ض َو َما فِي ِهنَّ َوه َُو َعلَى ُكل‬ َّ ‫هّلِل ِ ُم ْل ُك‬
ِ ‫الس َم َاوا‬
To Allah ˹alone˺ belongs the kingdom of the heavens and the earth and everything within. And He is
Most Capable of everything.

Hadith: Saheehul- Jamih 7662

‫نفس مِن ُه‬
ٍ ِ ‫سلم إاَّل ِبطِ ي‬
‫ب‬ ِ ُ ‫ال َي ِحل ُّ مال‬
ٍ ‫امريءٍ ُم‬
the Prophet (peace and blessings of Allah be upon him) said: “The wealth of a man is not permissible
unless he gives it willingly.”
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TAXATION (ZAKAT)
MEANING:
Zakat in Arabic derives from the verb zakah, which means to purify. It has been defined by a majority
of Islamic jurists as a duty that was tasked by Allah for the economy. It is a mandatory process
for Muslims and is regarded as a form of worship.
Zakat is a charity that Allah Almighty has imposed on Muslims to pay it from their wealth and
possessions annually, and it is paid to the poor, the weak and the deserving in order to get
closer to Allah. It was mentioned in the saying of the Prophet, may God bless him and grant him
peace, as the third pillar of the five pillars of Islam.

Purpose:
Tax and Zakat possess the same purpose namely a source of funds to create a just and
prosperous society by sustaining equitability between material and spiritual needs. Taxes are
used to finance activities in the fields and sectors of development.

Quran: (9:103)

َ ُ ‫س َك ۭنٌ لَّ ُه ْم ۗ َوٱهَّلل‬

‫سمِي ٌع َعلِي ٌم‬ َ ‫صلَ ٰو َت َك‬
َ َّ‫صل ِّ َعلَ ْي ِه ْم ۖ ِإن‬ َ ‫ُخ ْذ مِنْ َأ ْم ٰ َولِ ِه ْم‬
َ ‫صدَ َق ۭ ًة ُت َط ِّه ُر ُه ْم َو ُت َز ِّكي ِهم بِ َها َو‬
Take from their wealth ˹O Prophet˺ charity to purify and bless them, and pray for them—surely your
prayer is a source of comfort for them. And Allah is All-Hearing, All-Knowing.
Hadith: Sunan abi Dawud 1574
ُ
‫خمسة‬ ‫مائتين ففيها‬
ِ ‫الر َّق ِة من كل ِّ أربعينَ دره ًما دره ًما وليس في تسعينَ ومائ ٍة ش ٌيء فإذا بلغت‬ َ
ِّ ‫صدقة‬ ‫والرقيق فهاتوا‬
ِ ‫الخيل‬
ِ ‫قد عفوتُ لكم عن‬
‫دراه َم‬
Narrated Ali ibn AbuTalib:
The Prophet (‫ )ﷺ‬said: I have given exemption regarding horses and slaves; with regard to coins,
however, you must pay a dirham for every forty (dirhams), but nothing is payable on one hundred and
ninety. When the total reaches two hundred, five dirhams are payable.
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COLLECTION OF ZAKAT 8 kinds of People Who Can accept Zakat

 Gold and Silver  The Poor person who has nothing

 The Miskeen, who has something, but is not sufficient

 Goods for his needs

 Income: Profits, Salary and Wages  Those who work in collecting and distributing it

 Agricultural Products  Attracting the heart of those who are inclined towards
Islam.
 Cattle
 Freeing the captives

 Charity can be given to a person who is in debt.

 In Allah’s Cause

 The wayfarer/traveler
RIBA (USURY)
MEANING:
-Is an Arabic word means -In Qur’an and Hadith it is used for usury or
interest.
• excess
-It is well-known and common in Pre-Islamic
• increase
Arabia.
• addition

Purpose:
The main reason riba is prohibited is the concept that it makes the rich richer and the poor poorer.
There is an inequality in the dealings between the parties that is frowned upon in Islam. Interest is
seen as perpetuating and often increasing the gap between rich and poor humans in society.

Quran: (3:130)
َ‫وا ٱهَّلل َ لَ َعلَّ ُك ْم ُت ْفلِ ُحون‬
۟ ُ‫ض ٰـ َع َف ۭ ًة ۖ َوٱ َّتق‬ ْ ‫ٱلر َب ٰ ٓو ۟ا َأ‬
َ ‫ض َع ٰـ ۭ ًفا ُّم‬ ۟ ُ‫وا اَل َتْأ ُكل‬
ِّ ‫وا‬ ۟ ‫َي ٰـَٓأ ُّي َها ٱلَّذِينَ َءا َم ُن‬

O believers! Do not consume interest, multiplying it many times over. And be mindful of Allah, so you
may prosper.

Hadith: Mishkat al-Masabih 2825

َ ‫ «دِرْ َه ُم ِربًا َيْأ ُكلُ ُه الرَّ ُج ُل َوه َُو َيعْ لَ ُم َأ َش ُّد مِنْ سِ َّت ٍة َو َثاَل ث‬:‫صلَّى هَّللا ُ َعلَ ْي ِه َو َسلَّ َم‬
‫ِين ِز ْن َي ًة‬ َ ِ ‫ َقا َل َرسُو ُل هَّللا‬:‫يل ْال َماَل ِئ َك ِة َقا َل‬ ِ ‫َو َعنْ َع ْب ِد هَّللا ِ ب‬
ِ ِ‫ْن َح ْن َظلَ َة َغس‬

‘Abdallah, son of Hanzala who was washed by the angels*, reported God's Messenger as saying,
"A dirham which a man knowingly receives in usury is more serious than thirty-six acts of fornication”.

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CLASSIFICATION OF RIBA It is divided into two (2) types:

2. RIBA AL-FADL (riba al-BAI)

1. RIBA UN-NASIYAH (riba al-jahiliyyah) It is define as excess compensation, without any

consideration resulting from a sale of goods. Exchange or
It refers to the addition of the premium which is paid to sale transaction in trade which effectively result in the
the lender in return phase waiting as an condition for the charging of “interest” through the exchange of the same
loan. commodality, but of a different quality or quantity.

REAL AND PRIMARY FORM OF RIBAH.

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CONCEPT ON HOW TO ACQUIRE WEALTH IN ISLAM

How To Earn One's Wealth. Muslims wealth must be earned in a lawful, or halal, way. It is not to
be earned by selling or buying things that God forbids a Muslim to enjoin in, such as alcohol, pork,
etc. A believing Muslim should not sell unlawful, or haram, items in order to obtain wealth.

Quran: (9:34)
‫ِض َة َواَل‬
َّ ‫َب َوٱ ْلف‬ َّ َ‫يل ٱهَّلل ِ ۗ َوٱلَّذِينَ َي ْكنِ ُزون‬
َ ‫ٱلذه‬ ِ ‫س ِب‬
َ ‫صدُّونَ َعن‬ ِ ‫ان لَ َيْأ ُكلُونَ َأ ْم ٰ َول َ ٱل َّن‬
ُ ‫اس ِبٱ ْل َب ٰـطِ ِل َو َي‬ ِ ‫ٱلرهْ َب‬ ِ ‫ِيرا ِّمنَ ٱَأْل ْح َب‬
ُّ ‫ار َو‬ ً ۭ ‫َي ٰـَٓأ ُّي َها ٱلَّذِينَ َءا َم ُن ٓو ۟ا ِإنَّ َكث‬
ٍۢ ‫ب ل‬
‫ِيم‬ ِّ ‫يل ٱهَّلل ِ َف َب‬
‫ش ْرهُم بِ َع َذا ٍ َأ‬ َ ‫ُينفِقُو َن َها فِى‬
ِ ِ‫سب‬
O believers! Indeed, many rabbis and monks consume people’s wealth wrongfully and hinder ˹others˺
from the Way of Allah. Give good news of a painful torment to those who hoard gold and silver and do
not spend it in Allah’s cause.

Hadith: (Hadith 6, 40 Hadith an-Nawawi)

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‫سمعت رسول هللا ﷺ يقول‬ :‫ قال‬- ‫ رضي هللا عنهما‬- ‫بشير‬
ٍ ‫عن أبي عبدهللا النعمان بن‬
… ٌ‫ وإنَّ الحرام بيِّن‬، ٌ‫إنَّ الحالل بيِّن‬

An-Nu‘mān ibn Bashīr (may Allah be pleased with him) reported that he heard the Prophet (may Allah's
peace and blessings be upon him) say: "Verily, the lawful is clear and the unlawful is clear…