03 Distinguishing Features of IES

Economic Ideology of Islam
Distinguishing
Features of Islamic
Economic System
(IES)
Distinguishing Features of Islamic Economic System
Allah is the Creator

/ Sustainer of This
Universe
Allah is the
Creator / Sustainer
of this Universe:
• One of the major
features of Islamic
economic system is
the concept that, the
Almighty God is the
creator of this
universe.
• He has created all
the things out of
nothing
Allah is the
Creator / sustainer
of this Universe:
• He provides
livelihood and
subsistence to all of
His creatures in the
universe
• He is one who
created all means
and resources
through which man
earns his livelihood
Allah is the
Creator / Sustainer
of this Universe:
• Allah is not only the
creator, but He is
also the sustainer of
the universe
• He in fact, has
committed to feed,
sustain and nourish
all creatures
including human
beings
Allah is the creator / Sustainer of this

Universe:
‫ْز َو ُم‬ ‫اَّل‬ ‫َاْل‬

The Quran Says:
‫َّر َو ْو َد‬ ‫ْر‬ ‫َو ْن َد‬
ۚ‫َما ِم آَّبٍة ِفى ا ِض ِا ٌّل َعَلى الّلٰـ ِه ِر ُقـَها َيْعَل ُمْسَتَق َها ُمْسَت َعَها‬
‫ُك ِفْى ِكَتا ُّمِب ٍنْي‬
‫ٍب‬
There is not a moving creature in the land for
whose living Allah is not responsible. Allah is
responsible for the livelihood of every living
moving creature. He knows where it lives and
where it rests . [Q11: 6]

Universe:
The Quran Says:
‫ُم‬ ‫ُع‬ ‫ْرُز َو ْم َو َو‬ ‫َو ْن ْن َد اَّل ُل ْز َا‬
‫َكَا ِّي ِّم آَّبٍة ْحَتِم ِر َقَهۖا لَّلـُه َي ُقَها ِا َّياُك ۚ ُه الَّسِمْي اْلَعِلـْي‬
And there are many animals which do not
carry their living (sustenance). Allah gives
them sustenance and you and He is the most
hearer and the most knower . [Q29: 60]

Universe:
The Quran Says:
‫ُر‬ ‫ْن‬ ‫ْل‬ ‫ْم‬ ‫َت‬ ‫ْو‬ ‫ُك ُر‬ ‫ْذ‬ ‫ُس‬ ‫َا‬
‫ّل‬ ‫ل‬ ‫ا‬
‫ٍق ْو َن ٰـ ِه‬ ‫َغ‬ ‫ِل‬‫ا‬‫َخ‬ ‫ِم‬ ‫اَّلَه‬ ‫ُك‬ ‫َعَل‬ ‫ّل‬ ‫ل‬ ‫ا‬ ‫َاْل‬ ‫ْعَم‬‫ِن‬ ‫ا‬ ‫َيآ ُّيـ ُزَها ال َّنا ا‬
‫َو‬ ‫ْر ْم َن‬
‫ْي‬
‫َو‬
‫ْيـ‬ ۚ ‫ٰـ‬
‫ْر‬
‫ِه‬
‫َي ُقُك ِّم الَّسَمآِء ا ِض ۚ آَل ِا ٰلـَه ِا ُه ۖ َفَا ّنٰـ ى ُتْؤَفُك ـ‬
O human beings! Remember Allah’s favors
upon you. Is there any creator except Allah
who may give you living from sky and land.
There is no God except Him. Why then are
you going astray. [Q35: 3]

Universe:
The Quran Says: ‫َا‬ ‫َا ْن َذ‬
‫ْز‬ ‫ْرُز ْم ْن‬
ۚ ‫ه‬ٝ‫َّم ٰه ا اَّلـِذ ْى َي ُقُك ِا ْمَسَك ِر َق‬
Or who is such to help you livelihood if He

withholds His livelihood?. [Q67: 21]

Universe:
Ahadith of Prophet Muhammad (S.A.W)
Hazrat Umer (R.A) reported: I heard the
messenger of Allah say: If you all had relied
on Allah with due reliance, He would have
certainly given you provision as He supplies
provisions to birds who get up hungry in the
morning and return with full belly at dusk
[Trimizi, Ibn-e-Maja]
Allah is the
creator / Sustainer
of this Universe:
Abu Darda reported

that the messenger of
Allah said: Certainly
provision seeks a
servant just as his
death seeks him [Abu
Nayeem]
Allah is the Giver

of Life & Death
Allah is the Giver of Life

& Death:
‫ َلُہ اْلُمْلُک َو َلُہ‬، ‫ال الہ ا ُہللا َو ْحَد ٗہ اَل َش ْیَک َلٗہ‬
‫ِر ٌر‬ ‫ُد َو ِّال َو‬
‫ ُھ َعلٰی ُکِّل َشْي ٍء َقِد ْی‬، ‫اْلْم‬ ‫َح‬
There is no God except
Allah, He is one Who has no
partner, His is the glory and
His is the praise and He is
powerful over everything
Allah is the Giver of Life & Death:

‫َا‬
The Quran
‫ُك ًو ٌد‬
Says:
‫ْد ْم ْن‬ٝ ‫ُد ْم ْد َو ْم ْو‬ ‫َا‬ ‫َو‬ ‫ْل‬
‫ َل َيِل َل ُي َل وَل َيُك َّلـه ُف ا َح‬ٝ ‫ٌد الَّلـُه الَّصَم‬ٝ‫ُق ُه الّلٰـ ُه َح‬
Proclaim Allah is one. The independent of all.
He begets not nor is He begotten. None is
compatible unto Him. [Q112]
Allah is the Giver of Life & Death:

The Quran Says:
‫َن‬ ‫َو ُج‬ ‫َر‬ ‫َو ْو ُج‬ ‫تْو ُج َل‬
‫ِل الَّلْيَو ِفُجى ال َّنـَتَهاِر ُت َن ِل ال َّنـَهاَو ِف ْرُزىُقالَّلْيِلْن ۖ ُتُءْخِر اْلَحَّى ِم اْلَمِّيِت‬
‫ِحَسا‬
‫ِر ٍب‬ ‫ِبَغ‬ ‫َتَشآ‬ ‫َم‬ ‫َت‬ ‫َح‬ ‫ْل‬ ‫ا‬ ‫ِم‬ ‫ْلَم‬ ‫ا‬ ‫ْخ‬ ‫ُت‬
‫ِر‬
‫ْيـ‬ ‫ـ‬ ۖ ‫ِّي‬ ‫ِّي‬
You (Allah) intern the night into day and You
(Allah) intern the day into night. You (Allah)
produce the living form the dead and You
(Allah) produce the dead from the living and
You give livelihood without measure whom
You want'. [Q 3: 27]
Allah is the Giver of

END Life & Death
Islamic Economic
System (IES)
Islamic Economic System:

Islamic economic system consists of
institutions, organization, and social values
by which natural, human and man-made
resources are used to produce, exchange,
distribute and consume wealth / goods and
services under the guiding principles of Islam
to achieve “Falah” in the world and
hereafter.
Islamic Economic
System:
• The Muslims are

required to lead a
material life in such
a way that it
becomes a source of
happiness and
prosperity in the
existing world and
also in the world
hereafter.
Islamic Economic
System:
• “Falah” here and
hereafter is the chief
objective of every
Muslim to be
END achieved through the
Islamic Economic
System
• Islam accepts the
market forces of
supply and demand
Salient Features of
Islamic Economic
System (IES)
Salient Features of
Islamic Economic
System (IES):
• Individual liberty
• Right of Property
• Basic Rules and
Regulations of
consumption, and
investment of private
property
Salient Features of
Islamic Economic
System (IES):
• No gambling
through Money
Capital
• Payment of Zakat is
compulsory
• Payment of Ushr is
compulsory
• No lending of Money
capital on interest
Salient Features of
Islamic Economic
System (IES):
• Spending of
Luxurious is
forbidden
END • No use of property
against public
interest
• Care for Halal &
Haram in respect of
Earnings,
Production,
Appreciation &
Prohibition of IES
Appreciation and
Prohibition of IES:
• IES appreciates:
 People should
struggle to increase
their income from
right way
 They should spend
their income on
necessities carefully
 Social equalities
Appreciation and
Prohibition of IES:
• IES appreciates:
 There should be a
perfect and sound
Socio Political
System
 Consumption of
Wealth should be
according to the
teachings of Islam
Appreciation and
Prohibition of IES:
• IES Prohibits:
 Production of drugs,
alcoholic drink,
gambling, lottery,
musical instruments,
END
etc
 Lending and
borrowing of money
on interest
 Black marketing,
hoarding, smuggling
etc
Distribution &
Circulation of Wealth
Economic Growth and
Inequalities
Distribution &
Circulation of
wealth Economic
Growth &
Inequalities:
• Interest based
business are
prohibited
• Payment of Zakat
and Ushr is legal
obligation
• Zakat and Ushr
Distribution &
Circulation of
wealth Economic
Growth &
Inequalities:
• Hoarding of goods to
earn excessive profit
is forbidden
• People are induced
to give charity to the
poor
Distribution &
Circulation of
wealth Economic
Growth &
Inequalities:
• Islamic laws of
inheritance is
required to be
implemented
• Monopolies to
control the supply of
goods is not allowed
Distribution &
Circulation of
wealth Economic
Growth &
Inequalities:
• Interest-free
END
economy
• Prohibition of
accumulation of
wealth
• Social and individual
welfare
Factors of
Production in IES
and CES
Factors of
Production in IES &
CES:
• Factors of
production in
Conventional
Economic System
are:
1. Land
2. Labor
3. Capital
4. Entrepreneur
Factors of
Production in IES &
CES:
1. Land – Rent
2. Labor – Wages
3. Capital – Interest
4. Entrepreneur –
Profits
Factors of
Production in IES &
CES:
• In conventional
Economic System
the fourth factor
which brings
together the other
three factors,
exploits them and
bears the risk of
profit and loss in
production
Factors of
Production in IES &
CES:
• The factors of
production in
Islamic Economic
System are:
1. Land
2. Labor
3. Capital
Factors of
Production in IES &
CES:
• Entrepreneur &
Capital is a single
factor of production
• As interest is Haram
hence the risk of
profit & loss is with
the capital
Factors of
Production in IES &
CES:
• Anyone investing
capital must take the
risk of the
END investment
1. Land – Rent
2. Labor – Wages
3. Capital – Profit or
Loss
The Superiority of
God-Made Laws over
Man-Made Laws (I)
The Superiority of
God-made laws
over Man-made
laws (I):
• God-made laws are
superior because of
the following facts:
 God is above class
status
 God is above racial
prejudice
The Superiority of
God-made laws
over Man-made
laws (I):
superior because of
 God, as creator, fully
knows humans as
well as the world in
which they live
The Superiority of
God-made laws
over Man-made
laws (I):
superior because of
END
 God-made laws will
be just and based on
fully informed
decisions
 God is above gender
rivalry
The Superiority of
God-Made Laws over
Man-Made Laws (II)
The Superiority of
God-made laws
over Man-made
laws (II):
• Man is created by
Allah and He knows
better that which is
suitable for him and
which is not suitable
for him
The Superiority of
God-made laws
over Man-made
laws (II):
• For the guidance of
human being He has
provided the best
and complete
manual i.e. Quran
along with its
further explanation
of Hadith
The Superiority of
God-made laws
over Man-made
laws (II):
• Quran is a complete
code and the
END
finalization of all the
previous messages of
Allah and it is also
moderate between
Judaism and
Christianity
Mission of Islam (I)

Mission of Islam (I):
• Islam creates a
divine contract
between the
individual and the
Islamic economic
system
• From whatever
angle we look at
Islam, its final thrust
is on the human
welfare

• The basic provision
of his contract is
that the individuals
surrender to Allah
their life and
belongings in return
for heaven.
• Islamic economic
system assures the
provision of the
basic necessities of
life to every
• All the pillars of

Islam generate the
spiritual strength to
achieve human well
beings
• Human well being
includes: social,
economical, political
and spiritual
• The word Islam is

derived from the
Arabic word
“Salamah” and its
literal meaning is to
END
“Surrender” or
“Acceptance” which
means obedience of
Allah in all spheres
of life
Mission of Islam
(II)
Mission of Islam (II):
•
‫اَّل‬ ‫َاْل‬
The Quran Says:
‫ْر‬ ‫َو ْن َد‬
‫ل‬
‫ْزَما ِم َو آَّبُمٍة ِفى ا َوِض ِاْو َد َعَلى اٌّل ّلٰـ ِه‬
‫ِر ُقـَها َيْعَل ُمْسَتَقَّرَها ُمْسَت َعَهاۚ ُك‬
‫ِفْى ِكَتاٍب ُّمِبْيٍن‬
There is no creature on
earth the responsibility
for whose sustenance
has not been taken by
Allah

• Allah does not feed
the hungry directly
with His own hands,
but does so through
the agency of men
i.e., the social order
established to
enforce Divine laws
makes itself
responsible for the
discharge of this
responsibility

• Islamic way of life is
unique and none of
the other ways of life
can be called Islamic
• The Islamic way is
an indivisible whole
like the human
body, breaking of
which into separate
parts would finish
the body itself
• Islamic Economic
System is an integral
END part of the Islamic
Deen and can not be
separated therefrom
Target of Islam (I)

Target of Islam (I):

• Islam focuses
primarily on the
basic believes of a
person which is
followed by the good
deeds and practices
• Pure believes and
the purification in
deeds leads the man
towards the success
in the world and
hereafter

• Allah declares the
success of a believer
in clear words in
‫َا َن‬
Quran
‫َو ْو َن‬ ‫ْو َن‬
‫ْؤِمُنـ ِباْلَغْيِب َن ُيِقْيُم‬‫َز‬ ‫َّلـِذ اَلْي ُي‬
‫ْم ْو‬ ‫َو َر‬
‫الَّص َة ِمَّما ْقَناُهـ ُيْنِفُق‬
Those who believe in
unseen and observe
prayers and spend out
of what we have
provided for them

in clear words in
Quran ‫ُا‬
‫َو‬ ‫َل‬ ‫ْو َن‬ ‫َو َن‬
‫ُا اَّلـَلِذ ْي ُيْؤِمُنـ ِبَمآ ْنِز ِا َلْيَك َمآ‬
‫ْن‬
‫ْنِز ِم َقْبِلَك‬
And those who believe
in what has been sent
down to you and in
what has been sent
down before you

in clear words in
Quran
‫َو َر ْم ْو ْو َن‬
‫ِباٰاْل ِخ ِة ُهـ ُي ِقُنـ‬
END
And they know the

hereafter as sure and
certain
Target of Islam (II)

Target of Islam (II):

in clear words in
‫ًد ْن َّر ْم َو ُا‬
Quran ‫ُا‬
‫و ُمٰٓلِئَك َعٰلىَن ُه ى ِّم ِّبـِهـ ۖ وٰٓلِئَك‬
‫ْو‬
‫ُهـ اْلُمْفِلُح‬
It is they who follow the
guidance from their lord
and it is they who shall
prosper

• The target of Islam
is to safeguard man
from the
punishment of Allah
in the world and the
world hereafter
• If the man forgets
Allah He will forget
the man in the day
of judgment

The ‫ َا‬Quran Says:
‫َّو ُر ْو َم‬ ‫َّن‬ ‫َو ْن َا َرَض ْن‬
‫ه َي اْلِقَياَمِة ْعٰمى‬ٝ ‫ه َمِعْيَشًة َضْنًك ا َنْحُشـ‬ٝ‫َم ْع َع ِذ ْك ْى ِاَف َلـ‬
‫ِر‬
And the person who turns away from My
advice (guidance) his life will become hard
(tough) and We shall raise him as a blind on
the Dooms Day.[Q 20:124]
The Quran Says:

‫ًر‬ ‫َو ْد ُت‬ ‫َا‬ ‫َم‬ ‫َر‬ ‫َل‬
‫ْر‬
‫َقا ِّب ِل َحَش َتِنٓى ْعٰمى َق ُك ْن َبِصْيـ ا‬
He will say: O‘ Lord why did You raise me as
blind while I could see (had eye-sight in the
world)[Q 20: 125]
The Quran Says:

‫ْو َم‬ ‫َو‬ ‫َا‬ ‫َل‬
‫َقا َك ٰذ ِلَك َتـْتَك ٰا َياُتَنا َفـَنِسْيَتـَهاۖ َك ٰذ ِلَك اْلَي ُتْنٰسى‬
Allah will say: It should (have happened) so
(because) you forgot Our revealed lines when
(they) reached you. Similarly We shall forget
you today. [Q 20: 126]

• The target of Islam
is to safeguard man
from the
punishment of Allah
in the world and the
END world hereafter
• If the man forgets
Allah He will forget
the man in the day
of judgment
Concept of Halal &

Haram (I)
Concept of Halal &

Haram (I):
• Islam has
introduced the
concept of Halal
(lawful) and Haram
(unlawful) in its
economic system
• The foundation of
Islamic economy
have been laid on
the concept of Halal
and Haram
Concept of Halal &

Haram (I):
• Certain means of
earning livelihood
and wealth have
been declared
unlawful such as
interest, bribery,
gambling and games
of chance,
speculation, short
measuring business
malpractices
Concept of Halal &

Haram (I):
• Unlawful means of
earning livelihood
are strictly
END
forbidden and a
follower of Islam is
permitted to earn
through lawful and
fair means
Concept of Halal &

Haram (II)
Concept of Halal &

Haram (II):
• Similarly in the field
of consumption
certain items of food
are unlawful such as
dead animals, blood,
swine flesh and
animals slaughtered
in the name other
than that of Allah
Concept of Halal &

Haram (II):
• Expenses on certain
items such as drinks,
narcotics,
prostitution,
pornography, things
that promote
obscenity and
vulgarity, lotteries
and gambling are
strictly inadmissible
Concept of Halal and Haram (II):
The Quran Says:

‫اَل اًل ۖا َّو اَل ْو َو‬ ‫َاْل ْر‬ ‫ُس ْو‬ ‫َا‬
‫ه‬ٝ‫َيآ ُّيـَها ال َّنا ُك ُل ا ِمَّما ِفى ا ِض َح َطِّيًب َتَّتِبُع ا ُخُط اِت الَّشْيَطاِن ۚ ِا َّن‬
‫ُك ْم ُد ٌّو ٌن‬
‫َل َع ُّمِبْي‬
O mankind ! eat of what is lawful and good
in the earth; and follow not the footsteps of
Satan, surely he is to you an open enemy.[Q
2: 168]
Concept of Halal &

Haram (III)
Concept of Halal & Haram (III):

The Holy Prophet (S.A.W) states:
Verily Allah is pure. He does not accept but
what is pure….Then he mentioned about a
man disheveled in hair and laden with dust,
making his journey long and extending his
hands towards heaven: O Lord! O Lord!
While his food was unlawful, his drink
unlawful, his dress was unlawful and he was
nourished with unlawful things. How he can
be responded for that.[Muslim]
Concept of Halal &

Haram (III):
Abu Masud Al Ansari

reported that the
messenger of Allah
forbade the price of
dogs, earnings of
prostitute and
foretelling of a
soothsayer. (Bukhari,
Muslim)
Concept of Halal &

Haram (III):
Jabir (R.T.A) reported

Allah cursed the
END devourer of usury, its
payer, its scribe, and its
two witnesses. And he
said that they are equal
(in sin). (Muslim)
Concept of Halal &

Haram (IV)
Concept of Halal &

Haram (IV):
Abdullah bin Amr

reported that the
messenger of Allah
cursed the bribe taker
and the bribe giver.
(Abu Daud)
Concept of Halal &

Haram (IV):
Jabir (R.T.A) reported

END
Allah forbade the sale of
wine, dead animals, pigs
and idols…. (Bukhari)
Prohibition of
Interest (I)
Prohibition of
Interest (I):
• The economy
especially and the
society in general
which is based on
interest is strictly
forbidden in Islam
• Interest is not merely
prohibited in Islam,
but it is also
prohibited in the
previous codes
Prohibition of
Interest (I):
• Interest forms the
foundation of
Capitalistic and
Socialist system of
economy
• In the conventional
economic systems the
interest factor can
not be eradicated
and removed
Prohibition of
Interest (I):
• According to Islamic
teachings all kinds of
interests are
abolished and the
same was mentioned
by the prophet
Muhammad (S.A.W)
in his last sermon
Khutba Hajjat ul
Wida addressing
more than 125000 of
companions
Prohibition of
Interest (I):
• Interest is the root
cause of all sins and
it is the main factor
for the destruction of
economy
END
• Interest in any
economy is the basic
tool of exploitation
not the tool of
economy
Prohibition of
Interest (II)
Prohibition of
Interest (II):
• Charging interest
and the usurers have
been given the notice
of war against God
and His messenger in
the verse of surah-e-
Baqarah
‫‪Distinguishing Features of Islamic Economic System‬‬
‫‪Prohibition of‬‬
‫‪Interest (II):‬‬
‫َا َن ْو َن‬
‫•‬
‫اَل ْو ْو َن اَّل‬
‫‪The Quran Says:‬‬
‫َّلـِذُمْي ْاَي ُك ُل الِّر َبا َيُق ُمُن ِا َك َما‬
‫َن‬ ‫ْو‬
‫َيُق اَّلـِذ ْى َيَتَخَّبُطُه الَّشْي ُعَطا ِمُل اْلَمِّس ۚ ‬
‫ْم ٓو‬
‫ٰذ َاِلَكَّل ِبَا َّنـُهـ َقاُل َعا ِا َّنَما اْلَبْي ِمْث الِّر َباۗ ‬
‫ْن َء‬ ‫َو َّر َم‬ ‫َو‬
‫ْو َح ا ّلٰـْنُه اْلَبْي َح الِّر َباۚ َفَم َجآَف ‪ٝ‬ه‬ ‫ل‬
‫ٌة َّر‬
‫َمَا ِعَظـ ِّم ِّبٖه َفاْنَت ى َفَلـ‪ٝ‬ه َما َسَل ؕ ‬
‫ٰه‬
‫َو ْن َد‬ ‫ُر‬ ‫َو‬
‫َا ْم ٓ‪ٝ‬ه ِا َلى الّلٰـ ِهۖ َم َعا َفُا وٰٓلِئَنَك‬
‫ُد ْو‬ ‫ْم‬ ‫ُب‬
‫ْصَحا ال َّناِر ۖ ُهـ ِفْيـَها َخاِلـ‬
Prohibition of Interest (II):

The people who take interest will not rise up

but like a person who rises up whom the
satan has maddened with (his) touch. This
(condition) will be such that they say “After
all, trade is just like usury”. Allah has made
trade lawful and has made interest unlawful.
[Q: 2:275]
Prohibition of Interest (II):

Thus he who received advice from Allah and

he refrained (from usury) that is his which he
had received as past-(gain) and his matter is
with Allah. And he who took (interest) again
such are the people of Hell. They will live in
it for ever.[Q: 2:275]
Prohibition of
Interest (III)
Prohibition of
Interest (III):
• The Quran Says: ‫ُق‬

‫َد‬ ‫ْر‬ ‫َو‬
ۗ ‫ْمَحَي الاَلّلٰـ ُه الِّر َبا َّلُيـ ِبى ا َالَّص َقاِت‬
‫ُّب‬ ‫َو‬
‫َك َّفاٍر ِثـْي‬ ‫ُك‬ ‫ل‬
‫ا ّلٰـ ُه ُيِح‬
‫ٍم‬
Allah ends Interest and
grows charity and Allah
does not like any
thankless sinners
[Q:2:276]
Prohibition of
Interest (III):
• The ‫َذ‬ Quran Says: ‫َا‬
‫َو ُر ْو‬ ‫َن‬
‫ل‬
‫َيآ ُّيـَها اَّلـِذ ْي ٰا ْنَمُنوا اَّتُقوا ا ّلٰـ َه ا َما‬
‫َن‬ ‫ْم‬ ‫َن‬
‫َبِقَى ِم الِّر َبآ ِا ْنُتـ ُّمْؤِمِنْي‬
‫ُك‬
O believers! Fear Allah
and leave the remaining
interest if you are (true
believers (Q:2: 278)
Prohibition of
Interest (III):
• The Quran ‫َذ‬Says:

‫َن‬ ‫ْر‬ ‫ْو‬ ‫ْن ْم ْو‬
‫َوَفِا َّل َوَتْفَعُلْن ا َفْا ُنْمـ ا ِبَح ْمٍب ْوِّمُس الّلٰـ ِه‬
‫ُك ُر ُء‬ ‫َر ْو‬
‫َا َوُس ِلٖه ۚ اَل ِا ْوُت ْبُتَنـ َو اَلَفَل ْو َن‬
‫ُت ْظَلُم‬ ‫ْم اِلُك ْۚم َت ْظِلُم‬
Prohibition of Interest (III):

But if you did not do so, then get ready to

fight with .[Muslim]Allah and His
Messenger. And if you repent (from taking
interest), you have the right for your actual
amount of wealth (without interest, principal
amount). Neither, you! Wrong, nor, you, will
be wronged (do not be cruel over others and
others will not be cruel over you (Q:2: 279)
Prohibition of
Interest (III):
• The Prophet (S.A.W)

states:
Allah cursed the
devourer of usury, its
payer, its scribe, and its
two witnesses. And he
said that they are equal
(in sin). [Muslim]
Prohibition of
Interest (III):
• The Prophet (S.A.W)

states:
A dirham of usury a
END man devours with
knowledge is greater
than thirty-six
fornications. [Musnad-
e-Ahmed]
Ban on Hoarding of
Wealth (I)
Ban on Hoarding of
Wealth (I):
• Hoarding of wealth
has been condemned
by Islam in very
clear terms
• Those who hoard
wealth and do not
spend it for good
cause have been
threatened with
painful doom
Ban on Hoarding of
Wealth (I):
• Hoarding of wealth
is a great evil in any
economy and the
main factor of
economic un
equilibrium in the
society
• It creates obstacles in
the flow of the
proper circulation of
wealth in the society
Ban on Hoarding of
Wealth (I):
• Islam bans on
hoarding and
ensures the
circulation of wealth
in the society from
the rich to the poor
who are in genuine
need of it
Ban on Hoarding of
Wealth (I):
• Islam encourages the
circulation of wealth
through proper
distribution because
it creates more
END opportunities for
earning livelihood
especially to the less
and under privileged
class of the society
Ban on Hoarding
of Wealth (II)
‫‪Ban on Hoarding of‬‬

‫‪Wealth (II):‬‬
‫ُم‬ ‫َن ْو َن‬ ‫َو اَل َّن‬

‫ْل‬ ‫َيْحَسَب اَّلـِذ ْي َيْبَخُل ِبَمآ ٰا َتاُهـ‬
‫َو‬ ‫ًر‬ ‫َو‬ ‫ْن‬
‫الّلٰـ ُه ِم َفْضِلٖه ُهَن َخْيـ ا َّلـُهـمۖ َب ُه‬
‫ْو ْو َم‬ ‫َّو ْو‬ ‫ٌّر ْم‬
‫َش َّلـُهـ َو ۖ َسُيَط ُق ُث َما َبِخُل ا َوِبٖه َي‬
‫َر‬
‫اْلِق ْرَياَمِةۗ َوِلّلٰـ ِه ِمْيـ ا ْو اَنلَّسَما اِت‬
‫َو َاْل‬
‫ۗ الّل ُه ِبَما َتْعَمُل َخِبْيٌر‬
‫ٰـ‬ ‫ا ِض‬
Ban of Hoarding of Wealth (II):

The Quran Says:
The people, who are miserly in their wealth
(to give to others for Allah’s will) which was
given to them by Allah with His grace, should
not think at all that this (miserliness) is
better for them but it is very bad for them
the wealth, in which they are miserly, will be
converted into halter round their necks in the
last Day. The heritage of the Heavens and
earth is for Allah and Allah is well aware of
your doings.[Q: 3: 180]

‫‪Wealth (II):‬‬
‫ٓو َّن ًر َن‬ ‫َن‬ ‫َا‬

‫َيآَاْل ُّيـَها اَّلـِذ ْي ٰا َمُنـ ا ِا َن َاَك ِثْيـ اَلِّم‬
‫َو‬ ‫ْو‬ ‫ُّر‬ ‫َو‬
‫ا ْحَباِر الَو ْه ُّدَبا ْوِن َن َل ْاَي ُلْن ْم ا ال َّناِس‬
‫ُك‬
‫َوِباْلَباِطِلَن َي ُزُصْو َن َع َّذ َبَسِبْيِلَو الّلٰـ ِهۗ َو اَل‬
‫اَّلـِذ ْي َيْك ِن الـ َه اْل ِفَّضَة‬
‫ْر ْم‬ ‫ْو‬
‫ل‬
‫ُي َذْنِفُق َنـَها َاِفْى َسِبْيِل ا ّلٰـ ِه َفَبِّش ُهـ‬
‫ِبَع اٍب ِلْيـ‬
‫ٍم‬
Ban of Hoarding of
Wealth (II):
The Quran Says:
O believers! There are
many rabbies and monks
who devour unjustly the
wealth of the people and
stop from the way of
END Allah and there are
people who hoard up gold
and silver and do not
spend it in the way of
Allah, so give them the
news of a painful
punishment.[Q: 9: 34]
Ban on Hoarding of
Wealth (III)

‫‪Wealth (III):‬‬
‫َم‬ ‫ْو َم‬

‫َي ُيْحـٰمى َعَلْيـَها ِفْى َناِر َجَهَّنـ َفُت ـ َذى‬
‫ْك‬
‫ْم َو ْو ْم َو ْو ُر ْم ٰو‬
‫ِبـَها ِجَباُهَاِلُهـ ُجُنـ ُذُبـُهـ ُظُه ُهـ ۖ َن ا‬
‫ٰه‬
‫ُك ْم ْو ْو ُك ْم ْك ُز ْو‬ ‫ْز ْم‬
‫َما َك َن ُتـ ْنُفِس َف ُق ا َما ْنُتـ َت ِن‬
Ban of Hoarding of Wealth (III):

The Quran Says:
The day (will come) when it (gold and silver)
will be heated up in the hell-fire and their
foreheads (of the misers) and their sides and
their backs will e branded (marked) with it
(and they will be told): This is the same (gold,
silver, wealth in coins) which you hoarded for
yourselves, (now) taste (the punishment) of
your hoarding .[Q: 9: 35]

‫‪Wealth (III):‬‬
‫ْن َا‬ ‫َر ْو‬ ‫َء‬ ‫َا‬
‫ل‬
‫َّمآ َفـآ ا ّلٰـ ُه َوَعٰل َّرى ْو ُس ِلَوـٖه ِم ْه ْرِل‬
‫اْلُق ى َفِلّلٰـ ـِه ِلل ُس ِل ِلـِذ ى اْلُق ٰبى‬
‫َو‬ ‫َو ٰر َو‬
‫اْل َتاٰمى اْلَمَسا ْي اْب ا َّسِبْي ۙ ‬
‫اَل َي ْو َن ُد ْو ًةِك ِن َن َاْلِن ل ِل ْم ْىَو‬
‫َك‬
‫َيُك ـ ُلَلـ ُذَبْي ا ْغِنَيآِء ِمْنُك ۚ َمآ‬
‫ْم‬ ‫ْو َو‬ ‫ْو‬ ‫َّر‬ ‫ُم‬
‫ٰا َتاُك ال ُس َفُخ ُه َماَّنَنَهاُك َعْنُه‬
‫ُد‬ ‫ْو َو‬
‫َفاْنَتُه اۚ اَّتُقوا الّلٰـ َهۖ ِا الّلٰـ َه َشِد ْي‬
‫اْلِعَقاِب‬
Ban of Hoarding of Wealth (III):

The Quran Says:
The left over property, (by the disbelievers
without fight) which Allah has given to His
prophet from the people of the areas, is for Allah
and for the (prophet) relatives, (for) the orphans
and (for) the needy and the travellers so that it
may not keep circulating only in the rich among
you and that thing which prophet gives you take
it and that thing which prophet forbids you,
abstain, and keep fearing Allah. Indeed Allah is
severe in punishment .[Q: 59: 7]
Policy of Moderation
Policy of
Moderation:
• Islam follows policy
of middle way or
moderation and
avoids extremes
• The two extremes of
every action are bad
and moderation
between them is the
best policy according
to Islam
Policy of
Moderation:
The Quran Says:
‫ْو اَل ْو‬ ‫َن‬ ‫َا‬
‫َاَيآ َّلُّيـَها اَّلـِذ ْي ٰا َمُناَلـ ا ُتَح ُمَّنا َطِّيَباِت اَل َمآ‬
‫ْم َو ُد ْو ِّر‬
‫َح الّلٰـ ُه َلَنُك َتْعَت اۚ ِا الّلٰـ َه‬
‫ُّب‬
‫ُيِح اْلُمْع َتِد ْي‬
O believers! Do not
make good things
unlawful which Allah
has made lawful for you
and do not break limits .
Allah does not like the
breakers of limits [Q: 5:
Policy of
Moderation:
‫َو اَل‬ ‫َو اَل ْل‬
The Quran Says:
‫ْو‬ ‫َد‬
‫َتْجَع َّلَي َك َمْغُل َلـًة ِا ٰلى ُعُنـِقَك‬
‫َد ْو ْو ًر‬
‫َتْبُسْطَها ُك اْلَبْسِط َفَتْقُع َمُل ًما َّمْحُس ا‬
And do not keep your
hand tied to your neck,
nor open it to full
extent, so that you
remain sitting
condemned empty-
handed. [Q: 17: 29]
‫‪Policy of‬‬
‫‪Moderation:‬‬

‫َّر َن َا‬ ‫ْد‬ ‫َا‬ ‫ْد‬
‫ُقِل ا ُعوا الَاْلّلٰـ َه ِو ا ُعوا ال ْحـٰماَل ۖ ًّيا َّما‬
‫َتْد ُعْو ا َفَل ا ْسـَمآُء اْلُحْسٰنىۚ َو َتْج ْر‬
‫َن َه‬ ‫َو‬ ‫ْت‬ ‫اَل‬
‫اَل ـُه‬
‫َو‬
‫اْبَتِغ َبْي ٰذ ِلَك‬‫ِبَص اًل ِتَك ُتَخاِف ِبـَها ـ‬
‫َسِبْي‬
Policy of
Moderation:
The Quran Says:
Tell (them). Call (Him)
by Allah or call (Him)
by Rahman. Call Him
by any name you like,
All the most beautiful
names are for Him. And
do not say prayer
loudly, nor slowly but
adopt in between way
[Q: 17: 110]
Policy of
Moderation:
• The Holy Prophet
(S.A.W) states:
Moderation in
expenditure is half of
END
livelihood, and love for
people is half of wisdom,
and good questioning is
half of learning
[Bukhari]
Condemnation of
Monasticism &
Materialism (I)
Condemnation of
Monasticism &
Materialism (I):
• Islam condemns
Monasticism as well
as Materialism and
recommends its
followers to adopt
middle way between
these two extremist
ways of life
Condemnation of
Monasticism &
Materialism (I):
• The most emphasis
of a monastic is on
moral and spiritual
aspect of life and
ignores completely
material aspect
• A Monk considers
economic activity as
a sinful act
Condemnation of
Monasticism &
Materialism (I):
• Islamic teachings
against Monasticism
& Materialism can
be categorized as:
 Achievement of
Falah
 Fair and Equitable
Distribution
 Provision of Basic
Human Needs
Condemnation of
Monasticism &
Materialism (I):
against Monasticism
& Materialism can
be categorized as:
 Establishment of
Social Justice
 Promotion of
Brotherhood and
Unity
Condemnation of
Monasticism &
Materialism (I):
against Monasticism
& Materialism can
be categorized as:
 Achievement of
Moral and Material
Development
 Circulation of
Wealth
 Elimination of
Condemnation of
Monasticism &
Materialism (I):
against Monasticism
& Materialism can
be categorized as:
 Establishment of
Social Justice
 Promotion of
Brotherhood and
Unity
Condemnation of
Monasticism &
Materialism (I):
Achievement of
Falah:
• The word Falah or
END well-being includes
this world and the
next world
• The concept of Falah
is very
comprehensive in
Islam
Condemnation of
Monasticism &
Materialism (II)
Condemnation of
Monasticism &
Materialism (II):
Achievement of
Falah:
• At micro level Falah
refers to a situation
where basic needs
are provided to an
individual and he
works for his
spiritual and
material
advancement
Condemnation of
Monasticism &
Materialism (II):
Achievement of
Falah:
• At macro level it
aims at happy
society with clean
environment, with
opportunities to it
member for progress
in socio-political and
religious affairs
Condemnation of
Monasticism &
Materialism (II):
Fair and Equitable
Distribution:
• The objective of
Islamic economics is
to make distribution
of economic
resources, wealth
and income fair and
equitable.
Condemnation of
Monasticism &
Materialism (II):
Fair and Equitable
Distribution:
• Islam discourages
concentration of
wealth in few hands
and ensures its
circulation among all
the sections of society
Condemnation of
Monasticism &
Materialism (II):
Provision of Basic
Human Needs:
• Its objective to
provide basic
necessities of life like
food, clothing and
shelter to all the
citizens
• To have the basic
necessities is the
fundamental right
Condemnation of
Monasticism &
Materialism (II):
Provision of Basic
Human Needs:
• The responsibility of
Islamic state is to
provide basic needs of
life to those who are
unable to earn due to
physical disability,
unemployment or any
other reason
Condemnation of
Monasticism &
Materialism (II):
Establishment of
Social Justice:
END
• The objective of
Islamic economic
system is to establish
socio-economic
justice among all the
members of the
nation
Condemnation of
Monasticism &
Materialism (III)
Condemnation of
Monasticism &
Materialism (III):
Establishment of
Social Justice:
• The system meets the
challenge of
disproportionate
division of wealth by
making it obligatory
on the rich to
surrender a part of
wealth for needy
people
Condemnation of
Monasticism &
Materialism (III):
Brotherhood and
Unity:
• The system through
zakat and other
means of helping the
poor achieves social
harmony and
promotes
brotherhood between
different sections of
society
Condemnation of
Monasticism &
Materialism (III):
Moral and Material
Development:
• The system achieve
this objective
through taxation and
fiscal management
particularly through
zakat
Condemnation of
Monasticism &
Materialism (III):
Moral and Material
Development:
• Taxes and Zakat
creates the
consumption and
investment which
would have
multiplier effect on
the growth of the
national income
Condemnation of
Monasticism &
Materialism (III):
Circulation of
Wealth:
• Zakat discourages
hoardings and
encourages investment
• Zakat increases the
purchasing power of
poor and force
industrialist to
produce more
Condemnation of
Monasticism &
Materialism (III):
Elimination of
Exploitation:
• The Islamic economic
system ensures the
END elimination of
exploitation of one
human by another
• It discourages the
interest which is the
tool of exploitation

03 Distinguishing Features of IES

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Economic Ideology of Islam

Allah is the Creator

Allah is the creator / Sustainer of this

‫ْز َو ُم‬ ‫اَّل‬ ‫َاْل‬

Allah is the creator / Sustainer of this

Allah is the creator / Sustainer of this

Allah is the creator / Sustainer of this

Or who is such to help you livelihood if He

Allah is the creator / Sustainer of this

Abu Darda reported

Allah is the Giver

Allah is the Giver of Life

Allah is the Giver of Life & Death:

Allah is the Giver of Life & Death:

Allah is the Giver of

Islamic Economic System:

• The Muslims are

Mission of Islam (I)

Mission of Islam (I):

Mission of Islam (I):

Mission of Islam (I):

• All the pillars of

Mission of Islam (I):

• The word Islam is

Mission of Islam (II):

Mission of Islam (II):

Mission of Islam (II):

Mission of Islam (II):

Target of Islam (I)

Target of Islam (I):

Target of Islam (I):

Target of Islam (I):

Target of Islam (I):

• Allah declares the

And they know the

Target of Islam (II)

Target of Islam (II):

Target of Islam (II):

Target of Islam (II):

Target of Islam (II):

The Quran Says:

Target of Islam (II):

The Quran Says:

Target of Islam (II):

Concept of Halal &

Concept of Halal &

Concept of Halal &

Concept of Halal &

Concept of Halal &

Concept of Halal &

Concept of Halal &

Concept of Halal and Haram (II):

The Quran Says:

Concept of Halal &

Concept of Halal & Haram (III):

Concept of Halal &

Abu Masud Al Ansari

Concept of Halal &

Jabir (R.T.A) reported

Concept of Halal &

Concept of Halal &

Abdullah bin Amr

Concept of Halal &

Jabir (R.T.A) reported