Professional Documents
Culture Documents
Characteristics of Islamic Economic System
Characteristics of Islamic Economic System
Economic System
Learning Outcomes
After this lecture your will be able to understand;
the characteristics of Islamic Economic System
according to the divine instructions as mentioned in
Quran and Hadith.
Salient Features
1. Allah is the Sustainer
2. God is Real Owner of Everything and Man is Merely a
Trustee
3. Everything Created for Service and Use of Man
4. Concept of Halal and Haram
5. System of Sadaqat and Zakat
6. Prohibition of Interest
7. Ban on Hoarding of Wealth
8. Policy of Moderation
9. Condemnation of Monasticism and Materialism
10. Equity and not Equality
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4.
O you who have believed, eat from the good things which We have
provided for you and be grateful to Allah if it is [indeed] Him that you
worship. He has only forbidden to you dead animals, blood, the flesh of
swine, and that which has been dedicated to other than Allah . But
whoever is forced [by necessity], neither desiring [it] nor transgressing
[its limit], there is no sin upon him. Indeed, Allah is Forgiving and
Merciful. (2:172-173)
3.
And do not consume one another's wealth unjustly or send it [in bribery]
to the rulers in order that [they might aid] you [to] consume a portion of
the wealth of the people in sin, while you know [it is unlawful]. (2:188)
6. Prohibition of Interest
Verses of the Quran :
1. Those who consume interest cannot stand [on the Day of
Resurrection] except as one stands who is being beaten by
Satan into insanity. That is because they say, "Trade is [just]
like interest." But Allah has permitted trade and has
forbidden interest. So whoever has received an admonition
(warning) from his Lord and desists (stops) may have what is
past, and his affair rests with Allah . But whoever returns to
[dealing in interest or usury] - those are the companions of
the Fire; they will abide eternally therein. Allah destroys
interest and gives increase for charities. And Allah does not
like every sinning disbeliever. (2:275-276)
6. Prohibition of Interest
2. O you who have believed, fear Allah and give up what remains
[due to you] of interest, if you should be believers. And if you
do not, then be informed of a war [against you] from Allah and
His Messenger. But if you repent, you may have your principal [thus] you do no wrong, nor are you wronged. (2:278-279)
3. O you who have believed, do not consume usury, doubled and
multiplied, but fear Allah that you may be successful.(3:130)
6. Prohibition of Interest
Ahadith of Muhammad (PBUH):
1. Jaber reported that the Messenger of Allah cursed the devourer
of usury, its payer, its scribe, and its two witnesses. And he said
that they are equal (in sin). (Muslim)
2. Abdullah-bin-Hanzalah reported that the Messenger of Allah
said: A Dirham of usury a man devours with knowledge is
greater than thirty-six fornications. (Ahmad, Darqutni)
And let not those who [greedily] withhold what Allah has given
them of His bounty ever think that it is better for them. Rather,
it is worse for them. Their necks will be encircled by what they
withheld on the Day of Resurrection. And to Allah belongs the
heritage of the heavens and the earth. And Allah, with what
you do, is [fully] Acquainted. (Al-Imran 3:180)
2.
O you who have believed, indeed many of the scholars and the
monks devour the wealth of people unjustly and avert [them]
from the way of Allah . And those who hoard gold and silver
and spend it not in the way of Allah - give them tidings
(notification) of a painful punishment. (9:At-Taubah:34)
The Day when it will be heated in the fire of Hell and seared
(burned) therewith will be their foreheads, their flanks, and
their backs, [it will be said], "This is what you hoarded for
yourselves, so taste what you used to hoard. (9:At-Taubah:35)
4.
8. Policy of Moderation
The verses of the Quran :
O you who have believed, do not prohibit the good things which Allah
has made lawful to you and do not transgress. Indeed, Allah does not
like transgressors. (5 : 87)
And do not make your hand [as] chained to your neck or extend it
completely and [thereby] become blamed and insolvent. (17 : 29)
Say, "Call upon Allah or call upon the Most Merciful. Whichever [name]
you call - to Him belong the best names." And do not recite [too]
loudly in your prayer or [too] quietly but seek between that an
[intermediate] way. (17 : 110)
And be moderate in your pace and lower your voice; indeed, the most
disagreeable of sounds is the voice of donkeys. (31 : 19)
8. Policy of Moderation
Ahadith of the Prophet :
1. Good manners, delay and moderation form a part out of
twenty-four parts of Prophethood. (Mishkat-ul-Masabih)
2. Abu Hurairah reported that the Messenger of Allah said:
Moderation in expenditure is half of livelihood, and love for
people is half of wisdom, and good questioning is half of
learning. (Bukhari)
And do not wish for that by which Allah has made some
of you exceed others. For men is a share of what they
have earned, and for women is a share of what they
have earned. And ask Allah of his bounty. Indeed Allah is
ever, of all things, Knowing. (4 : 32)
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