Professional Documents
Culture Documents
Islamic Economic System: by CH Mateen Ebad
Islamic Economic System: by CH Mateen Ebad
by Ch mateen ebad
Zakat
Sadqa
Infaaq (spending in the cause of Allah)
Economy and pleasant life
The rights of orphans, widows, etc.(yatama)
The rights of the indigent (masakeen)
Standard of setting salaries
No making of illegal money in an Islamic economy
No hoarding of money in an Islamic economy
What to do with the surplus?
Circulation of Wealth
Qarooniat: Characteristics of an Exploitative Capitalist
Zakat
The root of the word Zaka(t) is Z-K-W (za-kaf-waw), which leads to the following
meanings:
-To increase
-To grow
-To thrive
-To augment
-To befit
Zukkoo means he enjoyed or led a plentiful and a pleasant or an easy, and a soft
or delicate life. OR he was in a state of abundance of the goods, conveniences or
comforts of life OR he enjoyed a life of increase or plenty.
From this:
2:43; 2:83; 2:110; 2:277; 4:77; 9:5; 9:11; 22:41; 22:78; 24:56; 58:13; 73:20;
The root of the word Aatoo is A-T-Y (alif-ta-ya), which has the following
meanings (depending upon what word or preposition follows this word):
The term aatoozzakaat is usually taken to mean "give the poor rate" where
"poor rate" means "the local tax for the relief of the poor". This definition of the
term aatoozzakaat is not correct and does not bring forth the true and complete
concept of the term ZAKA. The term aatoozzakaat does not mean JUST to give
some fixed sum from the money to the poor, (although it may be a means of
accomplishing ZAKA). It is much more than that. Please see the verse 2:177 in
which giving some of the wealth to the near of kin and the orphans and the needy
and the wayfarer and the beggars and for (the emancipation of) the captives has
been differentiated from the term aatoozzakaat.
Zakat is more than just giving from one's wealth to the poor. See the
following:
2:177 It is not righteousness that you turn your faces towards the East and the
West, but righteousness is this that one should believe in Allah and the last day
and the angels and the Book and the prophets, and give away wealth out of love
for Him to the near of kin and the orphans and the needy and the wayfarer and
the beggars and for (the emancipation of) the captives, and establish SALAT and
provide ZAKA; and the performers of their promise when they make a promise,
and the patient in distress and affliction and in time of conflicts-- these are they
who are true (to themselves) and these are they who guard (against the
inevitable consequences of violating Allah's Commands).
Even from the language point of view the term aatoozzakaat cannot be
translated as "give the poor rate". Although aatoo has one of the meanings "give"
but Zakaat does not mean "poor rate". Zakaat means increase or augmentation
or growth or development.
Notice in the above verse, the establishment in the land has been described as a
prerequisite for the system of ZAKA.
As has been mentioned above that growth and development is of two types:
Physical (i.e. of the human hardware or body) and Personal (i.e. of the human
software or the self or the personality). For physical development you have to
have something added to your body as a nourishment but for the development of
the self or self-actualization, you need to give something out of your wealth or
resources for others. See the following verses (which state that TAZKIYA or
personal development is achieved by giving from your wealth to others:
ْن لَهُم
ٌ َن صَل َتكَ سَك
ّ ِعلَيْ ِه ْم إ
َ ّصل
َ ن أَمْوَالِهِ ْم صَ َدقَةً ُتطَهّرُهُمْ وَتُزَكّي ِهمْ بِهَا َو
ْ ِخُذْ م
ٌعلِيم
َ ٌوَالُّ سَمِيع
9:103 Accept their contribution for the community. Purify their thoughts with
proper education and training so that their "Self" may grow. Appreciate and Help
them! Your appreciation and support is a great source of peace in their hearts.
Allah is Hearer, Knower.
92:18 Who gives his wealth (for the benefits of others) so that he may attain self-
development (and grow in goodness)
Sadaqa
sadaqa is what is given voluntarily for the sake of Allah to obtain the recompense
from Allah when the person who does so aims at conformity with the truth in his
deed.
SADAQA is voluntary while ZAKA is obligatory
For zaka, there are direct commands of Allah in the imperative [AATTOOZAKA]
while SADAQA is not enjoined in the Quran in the imperative. Moreover, 2:280;
4:92; 5:45 also depict the voluntary aspect of the word SADAQA.
The feelings of the one to whom it is given should not get hurt [2:263; 2:266]
-MASAKEEN
-AAMILEEN
-Those whose hearts have been (recently) reconciled (to Truth) [e.g. new
converts/reverts to Islam]
-Gharimeen
-Ibn-sabeel [9:60]
The rich should give according to their resources and the poor according to their
[9:79]
Can be given to an authority who can distribute to the deserving [9:58; 9:103]
4. For Zaka, no categories of people have been mentioned in the Quran to whom
it is for. [it is for the general physical and personal development of all]. For
sadaqa, the categories of people whom it is for is mentioned.
6. To affect Zaka, an Islamic authority may levy fixed taxes of different sorts
changeable according to the economic state of the nation but for Sadaqa, there
is no fixed amount
INFAAQ
The word INFAAQ is from the root N-F-Q, which means expending (money) or
dispensing (gifts) etc. The word NAFAQ, of which the plural is “ANFAAQ”, also
means hole of rats or mice, particularly a hole which has two openings so that
the rats or mice can enter from one opening and exit from the other. The word
NAIFAQ means “a part of the trousers which is turned down at the top, and
sewed and through which the waistband passes in such a way that it enters from
one side and comes out from the other side. From this the meaning of INFAAQ
can be understood, i.e. to earn money on the one hand and to expend it on the
other hand, without hoarding. The Arabic word for a Hypocrite is MUNAAFAQ
which also has the same root N-F-Q, signifying that he has both the options open
to him. When he is with the disbelievers, he says, “I am a disbeliever” and when
he is with the believers, he says, “I am a believer”.
2:254 O You who Believe! Spend of that with which we have provided for you. Do
that before the day comes when no bargaining, friendship or intercession shall
be of any avail. Those who reject such sensible admonition, do grave injustice to
themselves.
The REAL momineen are only those who spend in the cause of Allah [8:3-4]:
8:3-4 “Those who establish SALAH and SPEND (benevolently) out of what We
have given them. Such in truth are the believers: they have grades of dignity with
their Lord, and forgiveness, and generous sustenance”
Every claim of piety or righteousness is false unless one does spend in the
cause of Allah [3:92]
3:92 “By no means shall ye attain righteousness unless you give (freely) of that
which you love; and whatever you give, of a truth Allah knows it well.”
The Quran has not mentioned and CHILLA or MARAQBA to attain the nearness
of Allah but a way to nearness of Allah is to spend in the cause of Allah [9:99]
9:99 And among the Bedouins are those who believe in Allah and the Last Day
and consider their spending as a means of nearness to Allah and a means of
supporting the Messenger. This will raise their ranks with Allah. Allah will
embrace them with His Mercy. Verily, Allah is Forgiving, Gracious.
According to 2:3, 2:254, 4:39, 13:22, 14:31, 22:35, 28:54, Allah says that
spending is FROM WHAT ALLAH HAS PROVIDED [MIMMA RAZAKNAKUM].
This means that whatever little or more, Allah has provided, we must spend from
it. Allah has not mentioned any minimum amount that we must have before we
should spend. If we have less then we must spend from it and if we have more
then we must spend from it.
C. The rich should spend according to their means and the poor should
spend according to their means
According to a principle derived from 65:7, the rich should spend according to
their means and the poor should spend according to their means
Spending on Whom?
-Parents,
-Those whose hard earned income is insufficient to meet their basic needs, those
whose businesses have stalled, and those who have lost their jobs,
-The needy wayfarer, the homeless son of the street, and the one who has come
to your town in a destitute condition [2:215]
-The needy who are suffering in the Cause of Allah and cannot emigrate
-One, who is unaware of their condition, might think they are free from want,
because they abstain from begging. But you can recognize them by the marks on
their faces because they do not ask people insistently.[2:273]
Do not reproach those whom you give, for what you confer upon them
Spending can be open or secret [2:274, 13:22, 14:31, 35:29] but Do not spend
just to be seen or to show off [2:264, 4:38]
Spend from what is TAYYAB [i.e. what is good and you yourself like] [2:267]
Spend from what you have earned with your hard work [2:267]
When to spend?
Spending is day and night [2:274], whenever you have the resources and there
is a needy. There is no waiting period for a year before spending
The exemption
Only those are exempted from spending in the cause of Allah, who have
absolutely no resources at all to spend but who are sincere in their other duties to
Allah
Muslims do a lot of Allah's ZIKR. They arrange special meetings and get-
togethers for ZIKR. But their economy is still in dire straits [i.e. in very bad
conditions]. On the other hand the economy of the West and other non-muslim
states such as Japan, China is very good. They never hold any meetings to do
Allah's ZIKR. What is the reason? The only reason is that Muslims are not doing
Allah's ZIKR [i.e. regarding Allah's ZIKR] as they were meant to do. The sooner
they realize their folly, the better. The ZIKR is not repeating something on the
beads of a rosary. It is about remembering the injunctions of Allah such as
TAFAKKUR, TADABBUR, AQL, ILM and so on and then galvanize the ZIKR into
AML [i.e. actions].
3. Do not push, thrust or drive them way in a violent, harsh, rough, coarse or rude
manner [107:2]. This is a contravention of Allah's Law [Ad-Deen] [107:1]
4. Supply them with the means of subsistence in their time of hunger and
destitution [90:14-15]. Do it so in spite of your love for money, desiring not any
recompense nor thanks from them [76:8-9]
5. If need be, marry from the orphan girls [4:3] when they come of age [4:6] or
widows [4:127] whom you like and who are willing to marry you [4:19] and be
their protector and maintainer [4:34]
7. Give them out of your wealth in spite of your love for keeping money [2:177,
2:215]
9. Give them share from what others leave after death if they are there at the
time of distribution of the inheritance [4:8]. They also have a share from the war
booty [4:41] or what you obtain without war without any hardship or
inconvenience [59:7]
10. Set their affairs right and do what is good for them [2:220]
11. Give them their property, if it belongs to them. Do not exchange your bad
things for their good ones and devour not their substance by adding it to your
own substance [4:2]
13. (As a caretaker,) Make trial of [minor] orphans until they reach the age of
marriage; if then you find sound judgment in them, release their property to them;
but consume it not wastefully, nor in haste against their growing up. If the
guardian is well-off, Let him claim no remuneration, but if he is poor, let him have
for himself what is just and reasonable. When you release their property to them,
take witnesses in their presence [4:6]
14. And come not near to the their property, except to improve it, until they attain
the age of full strength [6:152, 17:34]
Note: The above references of the verses are those regarding the rights of
Yatama. The Arabic word "yateem" is very comprehensive and it means "orphans
[having no parents], and also includes "widows* [4:127], and "all those left alone
in the society".
*Reference: Abdul Mannan Omar, "The Dictionary of the Holy Quran", Noor
Foundation International Inc. (2003)
Note: The above references of the verses are those regarding the rights of
Masakeen. The Arabic word "miskeen" is very comprehensive and it
includes the indigent, destitute, those whose running businesses have
stalled, the ones who have lost their jobs, those whose life has stalled for
any reason, the disabled and so on.
Setting Salaries Every society has a diversity of jobs to be done. It needs sweepers
as much as shopkeepers, book-keepers, as well as leaders and so on. Quran alludes to this
diversity of endeavours or jobs in 92:4. But in virtually every society today, those who
have amassed some wealth are always at a vantage point to be able to earn more than the
deprived, either through investments or interest. Also those who are sharp-minded,
shrewd or more intelligent than others are more likely to earn more than those who are
less so. But isn't it injustice. Shouldn't man be rewarded by measure of his endeavours
and not by measure of his intelligence or capital? Quran suggests a system in which
people are rewarded by the measure of their endeavours [20:15], whereby no one can
have more than what he strives for [53:39].
-illegal possessions
-ill-gotten property
-Unlawful trade
-Unlawful profit
-Unlawful property
-Bribe money
"Suht" in all the above meanings is strictly forbidden by the Quran.
In 5:41-42, Allah says that for those who make money by illegal, unlawful,
"O Apostle! let not those grieve thee, who race each other into unbelief: (whether
it be) among those who say "We believe" with their lips but whose hearts have
no faith; or it be among the Jews, - men who will listen to any lie, - will listen even
to others who have never so much as come to thee. They change the words
from their (right) times and places: they say, "If ye are given this, take it, but if
not, beware!" If any one's trial is intended by God, thou hast no authority in the
least for him against God. For such - it is not God's will to purify their hearts. For
punishment. They are upholders of lies, and eaters of illicit earnings. If they
come to you to judge among them, you may judge among them, or you may
disregard them. If you choose to disregard them, they cannot harm you in the
least. But if you judge among them, you shall judge equitably. GOD loves those
In 5:62, Allah has described it as superlatively evil and bad deed. [the Arabic
and their devouring of illicit gain. Verily evil is what they do." [5:62]
In 5:63, Allah says why not the religious [so-called] learned men forbid such
people from making illegal money. [It is a fact that we hardly see mullahs
forbidding people from committing such crimes]. Allah has also described this
"Why do not the rabbis and the priests forbid their evil-speaking and their
An Arabic word for hoarding money or property is BUKHL بخلwhich is also used
in the following meanings:
• -Niggardliness
• -Tenaciousness
• -Stinginess
• -Penuriousness
• -Avarice
• -Withholding of acquired articles of property and not giving the needy from
what one has in abundant
******
3/180 And let not those deem, who are niggardly in giving away that which Allah
has granted them out of His grace, that it is good for them; nay, it is worse for
them; they shall have their hoardings made to cleave to their necks on the
resurrection day; and Allah's is the heritage of the heavens and the earth; and
Allah is aware of what you do.
******
4/37 Those who are niggardly (and hoard money or property) and bid people to
be niggardly and hide what Allah has given them out of His grace; We have
prepared for those who hide Allah's blessings from others, a disgraceful
chastisement.
[Kafireen in the above verse has been rendered as 'those who hide Allah's
blessings from other', since the primary signification of the root k-f-r is to hide or
cover something. This meanings is more suitable according to the context of the
verse]
*******
9:75-77 And there are those of them who made a covenant with Allah: If He give
us out of His grace, we will certainly give sadqaat and we will certainly be of the
good. But when He gave them out of His grace, they became niggardly of it and
they turned back and they withdrew. So He made hypocrisy to follow as a
consequence into their hearts till the day when they shall meet Him because they
failed to perform towards Allah what they had promised with Him and because
they told lies.
*******
47:38 Behold! You are those who are called upon to spend in the way of ALLAH;
but of you there are some who are niggardly. And whoso is niggardly (and hoards
money or property), is niggardly only against his own selves. And ALLAH is Self-
Sufficient, and it is you who are needy. And if you turn your backs, HE will bring in
your place another people; then they will not be like you.
*******
57/24 Those who are niggardly (and hoard money or property) and enjoin
niggardliness on men; and whoever turns back, then surely Allah is He Who is
the Self-sufficient, the Praised.
*******
92:8-10 And as for him who is niggardly (and hoards money or property) and
considers himself free from need (of Allah), And rejects what is good, We will
indeed make smooth for him the path to Misery
ٌي ٍء قَدِير
ْ َعلَى ُكلّ ش
َ ُّعلَى َمنْ يَشَاءُ وَال
َ ُسلَه
ُ سلّطُ ُر
َ ُي
"And whatever Allah has turned over to His Messenger from them, you did not toil
on any horse or camel for it. But Allah gives His Messengers upper hand upon
whom He wills. And Allah has devised measures for everything and He has full
Whatever Allah has turned over to His Messenger from those communities
belongs to Allah and His Messenger (i.e. the Central Authority). [It shall be spent
by the Messenger (i.e. the Head of the Islamic State) on]: (the 'Office' of) the
Messenger, the welfare of the families of the believers, the orphans (,those who
still feel left alone in the society, the widows), those who have no means of
earning their livelihood, (the disabled who cannot move around looking for the
Bounty of Allah), the homeless son of the street, ( those who are on their way to
join you, or those who travel a distance to seek help). The expending will be in
such a manner that it may not be [a benefit] going round and round among
such of you as may [already] be rich. Hence, take what the Messenger gives
you, and abstain from what he forbids you. Guard yourself against the harmful
consequences of violating the Commands of Allah by careful observance. Verily,
References :
http://www. Quranicteachings.com
http://www.muslimtents.com