Islamic Finance

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NAME USAMAIQBAL
181950005
DIARY BUSINESS AND ISLAMIC ETHICS
GIFT UNIVERSITY
FINAL DIARY
Business Ethics 181950005

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Lecture 1
Ethics and Business
Business Ethics
Business ethics (also known as corporate ethics) is a form of applied ethics or professional
ethics, that examines ethical principles and moral or ethicalproblems that can arise in
a business environment.
History of Business Ethics
In the broadest sense, business ethics is as old as business itself. Even before there were formal
companies and institutions, people already allowed their everyday morals to guide them in their
commercial dealings. In as early as 1700 B.C., the Code of Hammurabi was already prescribing
prices, laying down rules of commerce, and instituting penalties for noncompliance. Other
ancient texts that attested to the existence of business ethics in those days were Aristotle’s
Politics (300 B.C.), the Talmud (200 A.D.) and the Biblical Ten Commandments.
While centuries of commerce were guided by these predecessors of formal business ethics, it was
only in the 20th century when the modern incarnation of business ethics as an academic field and
as a corporate movement was born.
A lot of business professionals cite the 1960s as the turning point for formal business ethics. This
decade marked the rise of the Civil Rights Movement, with the US Civil Rights Act being signed
into law in 1964. The Second World War was still fresh in everyone’s minds, while the Cold War
and the Vietnam War was happening. Big businesses were thriving, replacing small and medium-
sized businesses. The chemical industry was booming, unfortunately, leaving environmental
damages in its wake. These circumstances fanned the flames of protest and corporations found
themselves the target of criticism and public attacks.

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To counter these issues, companies began establishing codes of conduct. They began creating
values statements. Social good became part of a company’s goals and social responsibility
became an important company objective.
The 70s saw the further development of business ethics. This decade was when it came into its
own as an academic field. Prominent business ethics expert Normal Bowie cites the real date of
birth of business ethics as November 1974, when the first conference of business ethics was held
in the University of Kansas.
This decade also brought to the forefront human rights issues, like forced labor, substandard
wages and unsafe practices, leading to the creation of the US Occupational Safety and Health Act
of 1970, a law that sought to protect workers’ rights.
In 1977, a series of scandals involving bribery by US firms abroad led to the passing of the
Foreign Corrupt Practices Act. This is monumental because it allowed the US government to
control American companies operating on foreign soil.
Some companies also took to self regulation. In 1978, General Motors, along with a few others,
adopted the Sullivan Principles, a voluntary code of conduct for companies doing ethical
business in apartheid-ridden South Africa.
The 80s had more companies adopting their own ethical codes and providing ethics training for
their employees. With each new scandal or incident, more companies, whether pressured or
voluntarily, began instituting ethics into their structures.
By the 90s, formal ethics structures were being instituted in companies, with positions like
Corporate Ethics Officers spearheading the self-monitoring measures in companies.
Today, companies exercising business ethics is not the exception; it is the norm. Self-monitoring
and social responsibility are principles that companies now abide by. It has become an integral
part of businesses. But no matter how much it has grown, at its heart, it still stands for the same
thing: morality and equality in business practices.

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Introduction of Islam
for Muslims the greatest and most inclusive of the Names of God, an Arabic word of rich and
varied meaning, denoting the one who is adored in worship, who creates all that exists, who had
priority over all creation, who is lofty and hidden, who confounds all human understanding. It is
exactly the same word that the Jews, in Hebrew, use for God (eloh), the word which Jesus Christ
used in Aramaic when he prayed to God. God has an identical name in Judaism, Christianity and
Islam; Allah is the same God worshipped by Muslims, Christians and Jews.
"He is God, the One God Independent and sought by all; He begets not, nor is begotten, and
there is none like unto Him" (The Holy Qur 'an - Chapter 112 - Al-Ikhlas- Sincerity of Faith)
Characteristics of Islam
Islam teaches that all faiths have, in essence, one common message:
the existence of a Supreme Being, the one and only God, whose Sovereignty is to be
acknowledged in worship and in the pledge to obey His teaching and commandments, conveyed
through His messengers and prophets who were sent at various times and in many places
throughout history.
Islam, An Arabic word, rich in meaning. One important dimension is the "commitment to submit
and surrender to God so that one can live in peace"; Peace (Salam) is achieved through active
obedience to the revealed Commandments of God, for God is the Source of all Peace.
Commitment to Islam entails striving for peace through a struggle for justice, equality of
opportunity, mutual caring and consideration for the rights of others, and continuous research
and acquisition of knowledge for the better protection and utilization of the resources of
Creation.
Islam teaches that the objective of the Commandment of God is that peace should be established
in the human societies of this world, in preparation for a further dimension of human existence in
the world to come, the Afterlife. Islam's vision of peace is therefore truly universal;it transcends
time and belongs to the order of God's eternity.

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Islam and Business Ethics
Many question why the global economy appears so unjust, with huge income and wealth
disparities and exploitation all too apparent. Rewards in business are too often unrelated to effort.
At the heart of capitalism there appears to be an immoral core, where CEOs get ever-larger pay
rises and bonuses while the asset values of their companies slump. Pension rules are unilaterally
changed without consulting those who will lose out, and insurance companies that are supposed
to offer protection try to escape from their obligations through legal loopholes embedded in the
small print of their contracts.
Although there has been a growing interest in business ethics with courses offered as an integral
part of most MBA degrees, the ethics taught are essentially socially derived, relative and
secularist rather than being based on religious moral authority. It is often difficult enough to
ensure that national laws are enforced in business, but business ethics, which promotes codes of
good conduct over and above the legal minimum, lacks any enforcement mechanism, and instead
relies on individual moral conscience. In the absence of a higher moral authority and religious
guidance, personal conscience cannot determine social standards but merely results in
individuals determining their own rules, moral uncertainty and even chaos.
Muslims have a huge advantage in being able to turn to their religious teaching for guidance in
their business dealings. Belief in God provides not merely the motivation, but the imperative for
adhering to shariah law, which is to be applied in all spheres of life. For Muslims moral conduct
in their daily lives is part of their devotion. Revealed teaching provides moral certainty, and a set
of standards to which the entire community of believers can adhere.
Islamic ethical values are not a substitute for universal values and virtues, but rather build on
these by stressing compassion, tolerance, leniency, benevolence and hospitality. These are
matters of principle and faith, but Dr Hasanuzzaman readily admits that many Muslim societies
have abandoned both religious and universal values for the sake of material wealth.
Paradoxically despite the decline in the influence of religion in the West, there has been a
reaction by many to corporate excesses and the malpractices associated with capitalism. This has
resulted in a proactive approach in the West to ensure more widespread awareness of ethical

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issues in business. In some respects there is scope for the ethical business movement in the West
and Islamic scholars to learn from each other and move forward together.
Lecture 2
Amal
Arabic pl. Acts, works, deeds, actual practice. One of many terms referring to a multifaceted
concept of precedent. Malik ibn Anas (d. 796 ) first introduced the amal (practice) of the people
in Medina as a highly authoritative source of making rules. Maliki scholars of later times
recognized this concept. In time other schools recognized amal (to varying degrees) as legal
authority. In legal theory, amal (sing.) refers to the acts of the Prophet.
Business in Islam
Trade and commerce have always been a part of Islam. From pre-Islamic days, the Holy City of Mecca has bee
trading center of Mecca that provided Prophet Muhammad (PBUH) the forum for preaching Islam.
The early Muslims were not only engaged in trade but they went to distant lands in connection with business. Is
business people. Islam encourages work in general, and trade and commerce in particular, Prophet Muhammad
became a prophet. He was a successful businessman. Known for integrity, he bore the honorific title, the Trustw
you"
In addition, the Qur'an includes rules not only for manners and hygiene, marriage and divorce, but it also lays d
contracts and wills, and industry and finance. Islam has permitted and in fact encouraged business. Islam lays o
producers and owners of wealth.
The Islamic principle in business is based on individual enterprise and correspondingly individual’s reward. It i
God’s orders. In business relationships Islam strictly forbids any discrimination between people based on their r
business practice and profit making in Islam. Islam looks at profit as secondary way to measure efficiency.

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New Lecture
Forbidden businesses in islam
1. Intoxicating Drinks
Almighty Allah says,
“They ask you about intoxicants and games of chance. Say, ‘In both of them there is a great
sin and profits for men, but their sin is greater than their profits’.” (2:219)
It is haram to deal with intoxicating drinks in any shape or form: selling, buying, using it as rent
or payment for a job, etc.
It is haram to sell grapes and dates to a customer who buys them for making intoxicant drinks.
It is haram to rent out a real estate property for making, selling or buying intoxicants.
2. Animal Products
i. Pig and its byproduct it is haram to deal in pigs and their byproducts in all forms: even selling
or serving pork to those who consider it permissible in their religion is not allowed. This
prohibition also applies to delivering food items which have pork in them such as pizza, etc.
However, selling, buying or using soaps made of pigs' fat is permissible; of course, it is najis and
one must purify the hand or body after using that soap. Similarly, selling, buying or using
toothbrushes or paint brushes that contain bristles made from pig's hair is permissible except
wherever ritual purity (taharat) is a condition. So if someone uses such a toothbrush, then the
mouth will become najis, and it will become pure by taking the toothbrush out and getting rid of
the remaining toothpaste from the mouth.
ii. Animal products from an animal that was slaughtered Islamically (zib): it is permissible to
deal in such products.
i. Animal products from an animal that you know was not slaughtered Islamically:

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(a) Parts with no feeling (e.g., hair, feather, fur, bone, horn, beak, nail. and teeth): it is
permissible to trade in them.
(b) Parts with feelings (e.g., skin): it is not permissible to trade in them.
iv. Animal products whose method of slaughtering is unknown or doubtful:

(a) From Muslim merchant or Muslim market: it is permissible to trade in them.
(b) From a non-Muslim:
• if there is a probability of Islamic zibh: it is permissible to trade in them;
• if there is no probability of Islamic zibh: it is not permissible to trade in them.3
3. Other ‘Ayn Najis
Other ‘ayn najis items (like human or animal stool, urine, blood, semen) can be a legitimate
business commodity provided there is a reasonable use for them . For example, the dung of farm
animals can be used for the purpose of using it as manure; blood of animals for use as a dye, etc.;
blood of human beings for transfusion into a patient who needs it.
Mutanajjis items:
Mutanajjis means an item that becomes najis by coming into contact with a wet 'ayn najis. It
means, "Acquired impurity" as opposed to 'ayn najis which means "inherent impurity".
It is permissible to deal in mutanajjis items if there is a permissible use for it. For example, if
lamp oil becomes najis, it can still be used to light the lamp.
4. Hoarding Common Food Items
''Hoarding" means storing an item that is in demand with the hope that its price will increase. It is
haram to hoard the common food items that are low in supply and high in demand. Prophet
Muhammad (s.a.w) said, “None hoards the food items except the sinner.”4 Under an Islamic
system, the government has the right to force such a merchant to sell the food items at the fair
market value.
According to some Shii scholars, it is also recommended to refrain from boarding any non-food
commodity that is considered as a necessity of life for people.

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5. Tools and Machines for Haram Purposes
Manufacturing or dealing in items, tools or machines that are exclusively used for haram
purposes is absolutely forbidden. For example: gambling machine, idols, etc.
Similarly, it is forbidden for a Muslim builder or contractor to build a place of worship for non-
Muslims in a non-Muslim country.
Question: Is it permissible to work as a cashier in such a convenience store that also sells lottery
tickets?
Answer: Selling lottery is haram. However, working as a cashier in a convenient store is not
haram even though it is haram to sell lottery tickets. (The implication is that even thought the
cashier's job is legitimate but that portion of the salary which represents the percentage of work
done in selling lottery tickets will not be considered legitimate.)
However, there is no problem in dealing in machines of dual- or multi-purpose nature which

include haram purposes but are not exclusively used for such things, like radio, television, etc.
6 Business on interest
Any interest taken by Muslim on a loan is strictly forbidden details will be mentioned in next
lectures
Lecture 3
Attributes of Allah
The proper terminology used, in Islam, for God is “Allah.” There are a number of reasons for
having a special word for God. First of all, the term “Allah” means, in Arabic, the one and only
universal God or Creator and Provider of the universe. Notice here I am emphasizing “the one
and only.” So a Muslim would not simply say, “There is one God.” That would not be as accurate
or as strong an expression as saying ‘the one and only God’. (Read more: Concept of God in
Islam)
Allah means The One God.

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The main point to be emphasized here is that, unfortunately many of the writings that are found
in various libraries in the West, which are not written from a Muslim standpoint or how Muslims
understand Islam, depict Allah as if He is some type of a tribal Arabian God or even the ‘God of
Muslims’. For example, they’d say Mohammed worshiped his Allah. Or Muslims worship Allah.
Even if they use the term Allah they put it in such a way that leaves the reader or audience with
the impression that maybe it is not exactly the same God.
The reason for considering the term Allah as more accurate, is that Allah is not only just a
meaning of God it is also a personal name for God, both a reference to God and His personal
name. This is beautiful in a sense. You don’t just say God but you can also say Lord but when
you say Allah you’re invoking the name, the personal name, of God. It establishes a personal
touch or a pull between the human being and the creator.
‘Allah’ represents purity of Islamic monotheism
The other thing, which I consider also relevant, is that the term Allah, in Arabic, is not subject to
plurality. For example, in English you can say God and you can also say gods. In Arabic there is
nothing that is equivalent to [the English term] Gods, nothing whatsoever. In other words, there
is no Allahs for example. This emphasizes the purity of Islamic monotheism.
A third reason, which is quite interesting as well, the term Allah does not lend itself to any
gender. In other words, there is no female or male gender for the term Allah. In English you can
have god and goddess. In Arabic, this simply doesn’t exist, which shows that the term Allah is a
lot more accurate than using the term God even if you are using a capital G. At least it is
relatively more accurate in conveying the true nature of the Supreme Creator

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Business Ethics introduced in Islam
What Quran says
There are several Aayahs in the Holy Quran which declare the usool or principles in doing
business transactions:
Allah Says in the Holy Quran Chapter 2 Surah Baqarah verse 188: Do not usurp one another’s
property by unjust means,nor offer it to the judges (as bribe) so that you may devour knowingly
and unjustly a portion of the goods of others.
Allah Says in the Holy Quran Chapter 4 Surah Nisaa verse 29:O you who have believed! Do not
devour one anothers property by unlawful ways; but do business with mutual consent.
Allah Says in the Holy Quran Chapter 11 Surah Hud verse 85:(Prophet Shuaib said ): And O my
people! Give just measure and weight, nor withhold from the people the things that are their due:
commit not evil in the land with intent to do mischief.
Allah Says in the Holy Quran Chapter 83 Surah Mutaffefeen verses 1-6:
1 Woe to those that deal in fraud
2 Those who, when they have to receive by measure from men, exact full measure.
3 But when they have to give by measure or weight to men, give less than due.
4 Do they not think that they will be called to account?
5 On a Mighty Day
6 A Day when (all) mankind will stand before the Lord of the Worlds?
Allah Says in the Holy Quran Chapter 17 Surah Israa verse 35:
34 Come not nigh to the orphan's property, except to improve it until he attains the age of full
strength; and fulfill (every) pledge, for (every) pledge will be enquired into (on the Day of
Reckoning).
35 Give full measure when ye measure and weigh with a balance that is straight: that is the most
fitting and the most advantageous in the final determination.

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Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 274-276:But those who devour riba
become like the one whom Shaitaan has bewitched and maddened by his touch. They have been
condemned to this condition because they say, Trade is just like riba, whereas Allah has made
trade halaal and riba haraam. Henceforth, if one abstains from taking riba after receiving this
admonition from his Lord, no legal action shall be taken against him regarding the riba he had
devoured before: his case shall ultimately go to Allah. But if one repeats the same crime even
after this, he shall go to Hell, where he shall abide for ever! Allah deprives riba of all blessing
and develops charity, and Allah does not like an ungrateful, sinful person.
Business Ethics in Islam
1. Trust: Trust of God's creation and all that is in it. God has created and perfected the whole
universe then Man is set over it all with delegated. So as Muslims we realize that we are just
trustee for God’s universe and we truly do not owe anything in this life. That kind of belief along
with your knowledge that God sees all what you do, will make you work under constant
surveillance, and keeps your performance at its best while following God’s defined conduct.
(Quran 45-13): And He has subjected to you, as from Him, all that is in the heavens and on earth:
behold, in that are Signs indeed for those who reflect.
(Quran 6:164): It is He who hath made you (His) agents, inheritors of the earth: He hath raised
you in ranks, some above others: that He may try you in the gifts He hath given you: for thy Lord
is quick in punishment: yet He is indeed Oft-Forgiving, Most Merciful.
2. Justice and Honesty: Justice can be defined as just conduct, fairness exercise of authority in
maintenance of right and fair dealing between each other regardless of faith is strictly laid down
in Islam. Honesty incorporates the concepts of truthfulness and reliability and covers all aspects
of relationships in human life thought, word and action. It is more than just accuracy; it is an
attitude with integrity.
(Quran 4:135): O ye who believe! Stand out firmly for justice, as witnesses to Allah, even as
against yourselves, or your parents, or your kin, and whether it be (against) rich or poor: for

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Allah can best protect both. Follow not the lusts (of your hearts), lest ye swerve, and if ye distort
(justice) or decline to do justice, verily Allah is well-acquainted with all that ye do.
(Quran 6:115): Perfected is the Word of thy Lord in truth and justice. There is naught that can
change His words. He is the Hearer, the Knower.
(Quran 11:85): O my people! Give full measure and full weight in justice, and wrong not people
in respect of their goods
“O you who have attained to faith! Do not devour one another’s possessions wrongfully, not
even by way of trade based on mutual agreement and do not destroy one another: for behold,
God is indeed a dispenser of grace unto thee!
(Quran 4:29):Oh ye who believe! Eat not up each other's property by unfair and dishonest
means."
3. Mutual Respect: The third principle is mutual respect and consideration for others is also
inherent in the moral teachings of Islam. The application of this has come to mean that self
interest only has a place in the community in as much as it takes into account the interests of
others. So a person or organization cannot under self benefit measures takes an action or start a
business that will harm the community or environment more than providing good to it. The
prophet (PBUH) said: "You will not attain righteousness, unless you give of that which you lo
ve”. And said "God loves kindness when you deal with any matter" And also said: "You will not
enter Paradise until you have faith and you will not have faith until you love one another".
What is forbidden in business in Islam?
1. Islam has not permitted producing, selling and purchasing of goods, which are
prohibited in Islamic law. Alcohol, Drugs.. The Prophet of Islam has said: "When God prohibits
a thing He prohibits (giving and receiving) the price of it as well."
2. Islam has also prohibited any kind of transaction involving uncertainty, as this could
lead to quarrel or litigation. The Prophet of Islam has forbidden transaction involving unspecified
quantity, acceptance of money for fish in the river or bird in the air as there is element of
uncertainty. Similarly the Prophet of Islam has prohibited sale of fruit till they are ripened.
However; if the element of uncertainty is very small, the transactions are permissible.

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3. Islam condemns hoarding to make high profit at the cost of public interest (when it is
needed or so it will become needed). Islam, however; allows normal trade - buying and selling of
goods again and again at a reasonable profit.
4. Islam prohibits fraud in business dealings. The Prophet has said: "Sell the good and
bad separately. He who deceives is not of us" The sin of fraud is greater if the seller supports it
by swearing falsely. The Prophet has said, "Swearing produces ready sale but blots out blessing".
5. Islam prohibits buying or selling what is legal if we know that it will be used for illegal
use: weapons, drugs and so on.
6. INTEREST: Muslims are not allowed to pay or receive interest. This is a shared value in
all religions. The Quran is explicit about it and says, "God- has permitted for you trade and
prohibited interest" (2 : 275). The Bible says: “and lend, never despairing; and your reward shall
be great, and ye shall be sons of the Most High” Luke 6:35.
Islamic Banking
Depositors in an Islamic bank would be treated like shareholders, would receive dividends when
the bank makes a profit, and would lose capital when it suffers a loss.
The prohibition or fixed interest flows from Islam's concern for social justice Interest is said to
reinforce a tendency for wealth to accumulate in a few hands
So how would you by buy a house for example? A new trend has recently started that work as
follows: An Islamic financing company buys the house. The house then is leased back to you for
a fixed period of time. You pay the finance group the rent value plus an additional amount for the
house purchase. The value or the lease home will be reassessed every year, and the rent will be
adjusted accordingly. In Closing
Conclusion
As a Muslim you need to follow commandments of Allah to succeed in this and after life and for
that you need to follow rules and regulations keeping in mind our businesss ethics and principles
you cannot only have a successful business and life but as promised according to Quran a
successful after life

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To close let me reassure that it is the responsibility of every Muslim to be ethical in their daily
business practices and to act responsibly toward the community in which it serves. To review its
business practices and remove from its organization any unlawful activities and devote
themselves to productive and lawful activities that benefit mankind.
It is everyone’s responsibility to take a long and serious look at their organization and implement
policies and procedures that are conducive.
As a general guide to Muslims in business we should adopt the following overriding principals:
� Love God and his commands more than your trade or business
� Be honest and truthful
� Keep one’s word
� Be humble in how you conduct your life
� Do not deal in fraud
� Do not bribe
� Deal justly
Lecture 4
Quranic concept in business
What Quran says
What is Islamic law
Islamic laws are of five types: obligatory (wajib), recommended (mustahab), discouraged
(makruh), permissible (mubah) and forbidden (haram). Business, trades and professions in Islam
would also fall into these five categories.
1. WA jib/Obligatory”
(a) On an individual level: it is obligatory to maintain yourself and your family so any legitimate
job that fulfills that obligation for you is obligatory for you.

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(b) On a social level: any trade, business or profession which caters to the essential needs of the
society is obligatory in the sense of wajib kifai.
For example, the medical profession (especially female doctors, dentists, and gynecologist’s),
religious profession, teaching, journalism, youth and family counselling are waif kyai. In the
Western context, in order to create a Muslim community in this society, it is wajib kifai to
provide those facilities without which the community would not be able to maintain its Islamic
identity.
Muslim communities should establish scholarship programs and endowment funds, and further
support such existing organizations that encourage Muslim youths to go for higher studies in
disciplines which are required for the Muslims in the West.
lmam 'Ali (a.s) said, "Knowledge is better than wealth. Knowledge guards you, while you have
to guard the wealth. Wealth decreases by spending, while knowledge multiplies by spending, and
the results of wealth die as wealth decays.....”
2. Mustabab /Recommended: any profession or business that is not essential but useful for
yourself and the society. For example, a food business that makes halal food more easily
available to Muslims or physical fitness facilities which adhere to the shari'a laws.
3. Makruh/Disliked: it is makruh to involve oneself exclusively in the profession of butcher, or

the trade of selling shrouds (kafan), statues of living things, etc.
4. Halal/Permissible: any trade or profession that is permissible but not essential for the society.
5. Haram/ Forbidden: A list of specified kinds of professions and trades will be listed below.
Lecture 5
Quranic view of wealth
In Islam, it is understood that the real owner of all wealth is Allah. Man only owns wealth by
proxy as guardian for which purpose he has been made vicegerent (khalifah) of Allah on earth.
Unlike capitalism and socialism which believe that man – in his quest for wealth – must deal
with scarcity of resources, Islam views the concept of wealth differently.

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In Islam, wealth is considered a bounty of God and thus it is not scarce, for Allah says: “God is
rich but you are poor” (Muhammad:38).
What is actually scarce is the ability of mankind to utilise the bounties of God. The situation is
worsened by their inability to explore new resources due to the limitation of knowledge.
Islam regards wealth as a means of human satisfaction in his endeavour to attain al-falah or
prosperity that leads to a good life in this world and hereafter. Therefore the quest for wealth is
not condemned in Islam.
Yet each individual Muslim is bound to work as it is a means to accumulate wealth in his search
for his livelihood as Allah says: “He it is who made the earth smooth for you, therefore go about
in the spacious sides thereof, and eat of His sustenance, and to Him is the return after death.” (al-
Mulk:15)
Needless to say, Muslims must follow all the commandments of Allah, as such those who fail to
do so are condemned.
However, in their quest for wealth they must observe that all economic activities must not bear
any elements that contravene syariah principles. Therefore, man should manage wealth in
accordance with the syariah requirement.
Good wealth management is important, because any possessions or assets would not grow
without proper planning and implementation. In contemporary terminology, it is known as
financial planning.
Comprehensive financial planning encompasses a number of critical areas such as wealth

creation (e.g.: working or earning a living); wealth accumulation (e.g.: investment, inheritance);
wealth protection (e.g. retirement planning, insurance); and wealth distribution (e.g. taxation,
charitable and planned giving).
Nevertheless, this explanation is actually the generic concept of financial planning and it must be
refined to ensure the concept can be recognised as Islamic financial planning. However the
process of refinement does not require an abandonment of the existing generic concept.
The concept can be recognised as Islamic financial planning by adding a clause that it must
comply with syariah requirements.
What is important is to ensure that whatever activities pertaining to wealth creation, wealth
accumulation, wealth protection or wealth distribution must comply with the syariah.

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Therefore, instead of dealing with insurance, Muslims should opt for takaful; instead of investing
in non-halal shares, they should only buy shares or stocks that are approved by
the syariah advisory board.
On top of paying tax, they must also pay zakat and should be great-hearted and chivalrous.
Muslims believe that their lifespan does not end upon death as there is another life after the
worldly death. This worldly life is a breeding ground for the fruits to be enjoyed in the life
hereafter.
Therefore, when they plan for something, they should consider this criterion and, as such, their
financial planning should also stretch to cover life in the hereafter as well.
Thus, by having proper financial planning and implementation, Muslims will strike a balance
between fulfilling his needs and wants and executing religious obligations.
Adherence to religious teachings – in this context – will definitely prevent any hostility that often
occurs among people while engaging in economic activities especially when wealth and money
are considered the most important elements in society.
This ill feeling has been clearly spelt out by the Prophet when he says, “The heart of an old man
remains young in two respects: his love for the world (its wealth, amusements and luxuries) and
his incessant hope.” (as narrated by Abu Hurairah)
For this reason, the wealth in Islam may function as a means of trial and test to find out the level
of faith of an individual in Allah; whether he is a true Muslim or vice versa.
As Allah says, “And as for man, when his Lord tries him, then treats him with honour and makes
him lead an easy life, he says: 'My Lord honours me'. But when He tries him (differently), then
straitens to him his means of subsistence, he says: 'My Lord has disgraced me'.” (al-fajr:15-16)
Nonetheless, Islam highly encourages its believers to be financially stable for the reason that
poverty or hardness among Muslims may lead them to infidelity.
In spite of this encouragement, they must bear in mind that the acquisition of wealth and the
usage of possessions should be in a proper manner and must be in accordance with the syariah as
in one hadis of the Prophet, it is reported that every single man an woman will not proceed to
subsequent proceeding in the hereafter until he is asked about how he acquired and spent his
property.

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Lecture 6
Distribution of wealth in islam
At a time of global advancement in various fields such as science and technology:

communication across the seven seas has become instant, the duration of transcontinental
journeys has reduced from months and years to a matter of hours and the world has been reduced
to a global village. However, an issue of great importance that faces humanity at large is that of
global poverty; a dark stain on the civilised world of the 21st century and its people.
A recent Global Monitoring Report published jointly by the World Bank and the IMF (1) predicts
that an approximate 900 million people were living on less than $1.90 a day in 2012. The report
also highlights the increasing concentration of poverty in Sub-Saharan Africa where the depth
and breadth of poverty remains an overriding challenge whether in relation to income-poverty or
non-income deprivations resulting in a lack of access to quality education, basic health services
and access to clean water. It is suggested that in recent years, increasing land degradation,
deforestation, extreme weather events and pollution have endangered progress of eliminating
poverty. Irrespective of the contributory factors, the figures for those living below the poverty
line are staggering and emphasize the growing need to take a practical approach to decrease
poverty with a vision to eventually eliminate poverty altogether.
Fundamentally, Islam is comprehensive, complete and balanced in nature and practice and thus is
not limited to theological scripture but extends to socio-political and economic principles to
name but a few disciplines. These principles are intended to form the basis of frameworks
throughout the ages whilst considering the requirements of the respective time and place. As
Islam is comprehensive, the Qur’an and the Traditions of the Prophet (Peace be upon Him!)
emphasize on the voluntary distribution of wealth that is surplus to individual need. This is the
basis of providing a solution to global poverty. The Qur’an states:
".....and they also ask you about what they should spend. Say: "(spend) whatever is in
surplus to your needs.", thus does Allah make His commandments clear to you so that you
may meditate." (2)

20
Without pondering much upon the circumstances of the revelation behind the verse or the
exegetical technicalities, some points are nonetheless necessary to be elaborated upon in further
detail. Primarily, although it is incumbent upon every Muslim to give 2.5% of his wealth
annually for distribution amongst the needy as a tenant of Islam, no limit has been placed on how
much one may give as a maximum hence the Qur'an states "(spend) whatever is in surplus to
your needs". (3) That is to assert that spending 2.5% is a requirement yet more could and indeed
should be spent from that which remains as surplus. If adhered to the Qur’an, the world would go
a long way to witness the eradication of global poverty.
Also, by elucidating the importance of spending that which is in surplus to ones needs, the verse
does not condemn the accumulation of wealth to the extent of meeting ones needs whilst
concurrently advocating a modest lifestyle whereby the needs pertaining to the life of an
individual are reduced. The verse also indicates the separation of ‘needs’ and ‘wants’, thus
accumulation to meet needs are permitted but so far as ‘wants’ are concerned, these are
considered surplus to 'needs' and in this case the distribution of wealth is preferred than pursuing
such surplus 'wants'.
In touching upon the spiritual element of wealth distribution in Islam, importantly, virtue is not
attached with the quantity of wealth that is possessed by an individual rather piety is attributed to
an individual who distributes wealth amongst the creation of Allah - wealth that has been granted
to man as a trial that one is ultimately accountable for in the court of the Almighty. In this regard,
the Qur’an states:
“And He is the One Who has made you vicegerents in the earth, and exalted some of you
over others in ranks, so that He may test you by means of (things) which He has bestowed
upon you (as a trust). Surely, your Lord is swift in awarding punishment (to those who
deserve it), but He is indeed Most Forgiving, Ever-Merciful (towards the aspirants to
forgiveness).” (4)
“And indeed, We have made whatever is on earth a means of its beauty (and adornment) so
that We test (the inhabitants of the earth) as to who is better in deeds.” (5)

21
Furthermore, the act of distributing wealth has been closely linked with belief in the context of
both commanding the believers to distribute excess wealth as a practical act in addition to the
spiritual effect of the act which is manifested in the world in the form of God-wariness (Taqwa)
and also in the hereafter. The distribution of wealth is therefore not viewed solely as an act of
charity in Islam but incorporates a broader twofold dimension. The first is the aim of practically
eradicating poverty through the act of distributing and circulating wealth and the second is the
spiritual benefit of the individual who gives thus preventing the accumulation of wealth. The
Holy Qur’an states:
“You can never attain to piety unless you spend (in the cause of Allah) out of that which you
like the most; and Allah surely knows well whatever you give away.” (6)
“O believers! Shall I advise you a trade which will save you from a painful torment? (It is
that) you have (perfect) belief in Allah and His Messenger (blessings and peace be upon
him) and strive hard for the cause of Allah with your human and material resources. That
is better for you if you know.” (7)
In assessing the distribution of wealth, the social perspective on the matter is one that cannot be
neglected. In essence, the existence of classes in society is not a new phenomenon. Classes have
existed since the dawn of civilisation and have even been the cause of various historical events
such as the French Revolution which had a large element of social class movement and change.
Essentially, whilst advocating wealth distribution, Islam gives due heed to society at large. Islam
has never considered wealth in negative light so far as the method of acquiring wealth is not
unlawful. Likewise, Islam has not declared wealth in itself as a moral or legal wrong but rather
has declared the love and pursuit of wealth in negative light as this forms the basis of various
social ills prevelant in society. The Holy Prophet (Peace be upon Him) said:
“...I will pave the way for you as your predecessor and will be a witness on you. By Allah! I
see my Fount (Kauthar) just now and I have been given the keys of all the treasures of the
earth (or the keys of the earth). By Allah! I am not afraid that you will worship others
along with Allah after my death, but I am afraid that you will fight with one another for the
worldly things." (8)

22
In regard to the organised nature of the circulation of wealth, Islam is a clear proponent of a
three-tier structure of priority:
a) The Household
b) The Kinfolk
c) Other Members of Society (orphans, the widows, the needy and the wayfarers)
Thus, the primary beneficiaries of the distribution of wealth are those closest to an individual in
relation- the household. By spending on those who are nearest in relation, Islam promotes the
eradication of poverty from those nearest to an individual by placing upon him a responsibility to
maintain and develop their well-being via financial assistance. This is the demonstration of
individual responsibility to eradicate poverty that could potentially remove many from the depths
of plight if implemented upon in a thorough and sincere manner by every individual.
Following the members of the household are those who are the kinfolk- other relatives that are
not immediate family. This step extends the practical nature of actively eradicating poverty
through the promotion of going beyond the four walls of one’s home to extent the net of those
upon whom every individual has a responsibility towards.
In addition to the household and kinfolk, Islam encourage wealth distribution amongst the
orphans, widows, the needy and the wayfarers at the third and highest level in a general sense to
assist those in society at large who are most in need irrespective of any family ties on a
humanistic level. Therefore, what is clearly evident is that Islam emphasises on poverty
eradication through wealth distribution whether it is to those who are closely related or in the
local community or whether it is in society at large on a domestic and international level. The
Qur’an states:
“They ask you what they should spend (in the way of Allah). Say: ‘Whatever wealth you
spend (is right), but the deserving ones are your parents and close relatives and orphans
and the needy and the wayfarers. And whatever good you do, Allah indeed knows it full
well.” (9)

23
However, in maintaining the balance between promoting the circulation of wealth and giving
heed to those that possess a nature that is inclined to withhold spending, the Qur’an deters one
from withholding from the distribution of wealth and thus increasing global poverty as the
natural consequence of wealth accumulation is that the majority of wealth is concentrated
amongst a very few individuals thus increasing rates of poverty in the world:
“(Woe to him) who accumulates wealth and keeps counting it!” (10)
In conclusion, as Islam is a comprehensive religion, yet balanced totality that extends beyond a
theological and religious guideline for humanity, Islam provides the world with thorough and
comprehensive principles that are formulated into frameworks by the Men of the time and age
that are compatible with the needs and requirements of the day. As a result, Islam offers complete
guidance into the socio-political and economic dimensions of life to name but a few.
Consequently, Islam recognizes the issue of global poverty and its prevalence in many parts of
the world. However, Islam goes beyond the recognition of the issue and further to diagnose the
root cause of the emergence of the symptoms in addition to providing practical solutions. These
solutions are of benefit to those distributing wealth and thus prevising the accumulation of
wealth whilst at the same time seeing to reduce the level of global poverty in a sustainable
manner.
Firstly, although Islam requires every Muslim to give 2.5% of their wealth annually so that it
may be distributed amongst the needy, Islam promotes the distribution of wealth beyond the
2.5% requirement to "(Spend) whatever is in surplus to your needs" so that one is encouraged
to further practical steps that are feasible on an individual whilst also keeping into consideration
the needs of the giver. Secondly, Islam correlates the reception of spiritual blessings as a direct
consequential effect of the practical act of wealth distribution thus promoting the circulation of
wealth amongst over a billion Muslims around the planet. Furthermore, a detailed system is
expounded by Islam whereby neither the household, the kinfolk nor society at large are neglected
consequently placing responsibility on every individual to prevent financial impoverishment and
play an active role in poverty eradication.

24
If guidance is taken from Islam on the principles pertaining to wealth distribution, the world
would indeed move a step closer to eradicating poverty. The following words of Dr Muhammad
Iqbal serve as a fine conclusive summary of the discussion:
(O Muslim, dive deep in the Book, Which was revealed to Prophetsʹ Seal;
May God, by grace on you bestow politeness, for good deeds much zeal!
The fact concealed in words so far, "Spend what is surplus and is spare,"
May come to light in modern age and make the meanings clear and bare!)
New Lecture
Islamic view of wealth
Wealth and Properties: Islamic Perspective
In Islam, there are 2 detested groups, regarding the way they perceive riches and wealth. One
group states that wealth is everything, and consider it as the solution of problems faced by
ummah. Thus they made it as their god. They believe that the reason of human creation is to
pursue and gain as much wealth as they can get.
While the other group considers that mankind is in no need of any wealth. They feel satisfy upon
their activity performing obligational prayers, since they assumes that wealth is a form of satan,
that must be totally avoided in this world. This odd principle drive them away from it, thus Their
life occasionally depend to other people. Living a life on charities and alms from others. They
feel that they no longer have enough time to win the bread for their wives, children, and family.
Both groups are wrong according to Islam’s perspective. If so, then what is the stance of Islam
regarding the matter of wealth? Is it allowed to make wealth as destination of life, or da’wa?
Or ..shall it be considered as ‘a wild beast’ ready to spring to it’s prey, thus all people must run
away from it?? Well, the best of matters is the in between (wasath). Easy to say, but how to walk
the talk?

25
The Holy Qur’an has described to us about the meaning of ‘al wasath’.
The Whole Universe, created for sake of mankind, belongs to Allah
The Qur’an has explained that the whole world and what within it belong to Allah the Exalted, as
what revealed in verse:
‫ق نولنككنن أنعكثننرهمعم ل ينععلنمموُنن‬ ‫ض نأل إكنن نوععند ن‬

‫اك نح ق‬ ‫نأل إكنن كنلك نماَ كفيِ اَلنسنماَنواَ ك‬
‫ت نواَلعر ك‬
“Unquestionably, to Allah belongs whatever is in the heavens and the earth. Unquestionably, the
promise of Allah is truth, but most of them do not know.” (Yunus/Jonah: 55)
‫اك مشنرنكاَنء إكعن ينتنبكمعوُنن كإل اَلظننن نوإكعن همعم كإل‬

‫ض نونماَ ينتنبكمع اَلنكذينن ينعدمعوُنن كمعن مدوكن ن‬ ‫نأل إكنن كنلك نمعن كفيِ اَلنسنماَنواَ ك‬
‫ت نونمعن كفيِ اَلعر ك‬
‫صوُنن‬‫ينعخمر م‬
“Unquestionably, to Allah belongs whoever is in the heavens and whoever is on the earth. And
those who invoke other than Allah do not (actually) follow (His) partners. They follow not except
assumption, and they are not but misjudging.” (Yunus/Jonah: 66)
And He the Exalted has created them for the sake of mankind, as in His verse:
‫همنوُ اَلنكذيِ نخلن ن‬

‫ق لنمكعم نماَ كفيِ اَلعر ك‬
َ‫ض نجكميِععا‬
“It is He who created for you all of that which is on the earth..” (Al Baqara/The Cow: 29)
And every thing made by Allah the Exalted for the sake of human being, is among His vast
graces given to all of them, as He decreed:
‫ت لكقنعوُمم ينتنفننكمرونن‬ ‫ض نجكميِععاَ كمعنهم إكنن كفيِ نذلك ن‬

‫ك لنياَ م‬ ‫نونسنخنر لنمكعم نماَ كفيِ اَلنسنماَنواَ ك‬
‫ت نونماَ كفيِ اَلعر ك‬
“And He has subjected to you whatever is in the heavens and whatever is on the earth – all from
Him. Indeed, in there are signs for a people who give thought.” (Al Jathiyyah/The Crouching:
13)

26
Thus, due to the fact that the origin of the universe’s creation was as part of Allah’s grace to
mankind, they should never use it in falsehood. This is as stated by Allah,
‫س كباَلعثكم نوأنعنتمعم تنععلنمموُنن‬ ‫ع‬ ‫ع‬

‫نول تنأمكملوُاَ أنعمنوُاَلنمكعم بنعيِننمكعم كباَعلنباَكطكل نوتمعدملوُاَ بكنهاَ إكنلىَ اَعلمحنكاَكم لكتنأمكملوُاَ فنكريعقاَ كمعن أنعمنوُاَكل اَلنناَ ك‬
“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).” (Al Baqara/The Cow: 188)
Wealth, in the eye of Human being
As explained earlier, every single thing in this universe belongs to Allah, may He be Exalted,
including wealth and properties. Basically, belongings of human being are the entrusted and
trusteeship from Allah the Exalted to be used accordingly. Allah has explained in His decree:
‫آكممنوُاَ كباَنلك نونرمسوُلككه نوأنعنفكمقوُاَ كمنماَ نجنعلنمكعم ممعستنعخلنكفيِنن كفيِكه نفاَلنكذينن آنممنوُاَ كمعنمكعم نوأنعنفنمقوُاَ لنهمعم أنعجرر نككبيِرر‬
“Believe in Allah and His Messenger and spend out of that in which He has made you successive
inheritors. For those who have believed among you and spent, there will be a great reward.” (Al
Hadiid/The Iron: 7)
Allah the Exalted has made the nature of wealth as the adornment of the world, and one of the
biggest trial for one’s faith, as mentioned in His verses:
َ‫ك ثننوُاَعباَ نونخعيِرر أننمل‬

‫ت نخعيِرر كععنند نربب ن‬
‫صاَلكنحاَ م‬ ‫اَعلنماَمل نواَعلبنمنوُنن كزيننةم اَعلنحنيِاَكة اَلددعننيِاَ نواَعلنباَقكنيِاَ م‬
‫ت اَل ن‬
“Wealth and children are (but) adornment of the worldly life. But the enduring good and deeds
are better to your Lord for reward and better for (one’s) hope.” (Al Kahf/The Cave: 46)

‫ت اَل ن‬
“And know that your properties and your children are but a trial and that Allah has with Him a
great reward.” (Al Anfal/The Spoils of War: 28)

27
Wealth and properties are not the final destination, But one of the means and supplies that shall
be used to support worships and righteous deeds in His Cause. Allah the Exalted has decreed :
‫اَعنفكمرواَ كخنفاَعفاَ نوثكنقاَل نونجاَكهمدواَ بكأ نعمنوُاَلكمكعم نوأنعنفمكسمكعم كفيِ نسكبيِكل ن‬

‫اك نذلكمكعم نخعيِرر لنمكعم إكعن مكعنتمعم تنععلنمموُنن‬
“Go forth, whether light or heavy, and strive with your wealth and your lives in the cause of
Allah. That is better for you if you only knew.” (At Tawbah/The Repentance: 41)
There are still plenty of verses in the Holy Qur’an that indicate the position of wealth as a mere
intermediary to reach the goal of worship. Allah The Exalted has commanded human to give
charities, alms, and zakat; which could not be accomplished but by wealth. He also also obliged
the pilgrimage to Mecca (Hajj) for those who are capable of it, and it must be done by spending
some wealth. For them to be able to perform those orders, Allah the Exalted has obliged mankind
to seek the legal provisions; which, by those, a person will be able to bear his responsibilities and
obligations in order to fulfill the right of his wives, children, and family. Allah the Exalted
declared,
‫ضلككه نولننعلنمكعم تنعشمكمرونن‬

‫نوكمعن نرعحنمتككه نجنعنل لنمكمم اَللنعيِنل نواَلنننهاَنر لكتنعسمكمنوُاَ كفيِكه نولكتنعبتنمغوُاَ كمعن فن ع‬
“And out of His mercy He made for you the night and the day, that you might be rest therein and
(by day) seek from His bounty and that perhaps you’ll be grateful.” (Al Qasas/The Stories: 73)
‫اَععنملموُاَ آنل نداَموند مشعكعراَ نوقنكليِرل كمعن كعنباَكد ن‬

‫يِ اَلنشمكوُمر‬
“Work, O family of David, in gratitude.” And few of My servants are grateful.” (Saba’/Sheba:
13)
‫همنوُ اَلنكذيِ نجنعنل لنمكمم اَلعر ن‬

‫ض نذملوُل نفاَعممشوُاَ كفيِ نمنناَككبكنهاَ نومكلموُاَ كمعن كرعزقككه نوإكلنعيِكه اَلندمشوُمر‬
“It is He who made the earth tame, for you, so walk among its’ slopes and eat of His provisions
and to Him is the resurrection.” (Al Mulk/The Sovereignty: 15)
Surely, of all good and righteous deeds must be done only to seek His Face and the rewards in
the resurrection, which is the joy in heaven.

28
As with the other provisions, wealth is something to be grateful upon, as revealed in the verses:
‫ب اَعلنعاَلنكميِنن‬
‫يِ نونمنماَكتيِ كنلك نر ب‬ ‫قمعل إكنن ن‬
‫صلَكتيِ نونممسككيِ نونمعحنيِاَ ن‬
“Say, ‘Indeed my prayers, my rites of sacrifice, my living and dying are for Allah, Lord of the
worlds.” (Al An’aam/The Cattle: 162)
ِ‫نوإكعذ تنأ ننذنن نردبمكعم لنئكعن نشنكعرتمعم لكزيندننمكعم نولنئكعن نكفنعرتمعم إكنن نعنذاَكبيِ لننشكدي‬
“And (remember) when your Lord proclaimed: ‘If you are grateful, I will surely increase you (in
favor); but if you deny, indeed, My punishment is severe.” (Ibrahim: 7)
Allah has warned against Avariciousness upon wealth and worldly affairs
Allah the Exalted has created mankind on the nature of loving the wealth and riches. But He
dislikes those who are overpowered by their love over wealth, so bad that they become greedy,
arrogant, and they neglect their Lord, Allah. Allah the Exalted has affirmed that in His decree:
َ‫نوتمكحدبوُنن اَعلنماَنل مح معباَ نج معما‬
“And you love wealth with immense love.” (Al Fajr/The Dawn:20)
‫ب اَعلنخعيِكر لننشكديرد‬ ‫إكنن اَلعننساَنن لكنرببكه لننكمنوُرد * نوإكننهم نعنلىَ نذلك ن‬

‫ك لننشكهيِرد * نوإكننهم لكمح ب‬
“Indeed, mankind to his Lord is ungrateful.And indeed he is to that a witness. And indeed he is,
in love of wealth, intense.” (Al ‘Aadiyaat/The Courser: 6-8)
‫نكلَ إكنن اَلعننساَنن لنيِن ع‬

َ‫طنغىَ * أنعن نرآهم اَعستنعغننى‬
“No! (But) indeed man transgresses. Because he sees himself self-sufficient.” (Al ‘Alaq/The
Clot: 6-7)
‫ض نولنككعن يمننبزمل بكقنندمر نماَ يننشاَمء إكننهم بككعنباَكدكه نخكبيِرر بن ك‬

‫صيِرر‬ ‫ق لككعنباَكدكه لنبننغعوُاَ كفيِ اَلعر ك‬ ‫ط ن‬
‫ام اَلبرعز ن‬ ‫نولنعوُ بننس ن‬

29
“And if Allah had extended (excessively) provisions for His servants, they would have committed
tyranny throughout the earth. But He sends (it) down in an amount which He wills. Indeed He is,
of His servants, Aware and Seeing.” (As shuura/The Consultation: 27)
‫ك فنمأولنئك ن‬
‫ك هممم اَعلنخاَكسمرونن‬ ‫نياَ أندينهاَ اَلنكذينن آنممنوُاَ ل تمعلكهمكعم أنعمنوُاَلممكعم نول أنعولمدمكعم نععن كذعككر ن‬
‫اك نونمعن ينعفنععل نذلك ن‬
“O you who have believed, let not your wealth and your children divert you from the
remembrance of Allah. And whoever does that -then those are the losers.” (Al Munafiqun/The
Hypocrites: 9)
Intense love towards wealth causes him to forget about the death, until the time comes when he
is wrapped in his shrouds, and buried in his grave. Allah has exclaimed:
* ‫ف تنععلنمموُنن * نكلَ لنعوُ تنععلنمموُنن كععلنم اَعليِنكقيِكن * لنتننرمونن اَعلنجكحيِنم‬ ‫أنعلنهاَمكمم اَلتننكاَثممر * نحنتىَ مزعرتممم اَعلنمنقاَبكنر * نكلَ نسعوُ ن‬
‫ف تنععلنمموُنن * ثمنم نكلَ نسعوُ ن‬
‫ثمنم لنتننرمونننهاَ نععيِنن اَعليِنكقيِكن * ثمنم لنتمعسأ نلمنن ينعوُنمئكمذ نعكن اَلننكعيِكم‬
“Competition in (worldly) increase diverts you. Until you visit the graveyards. No! You are going
to know. Then, no! You are going to know. No! If you only knew with knowledge of certainty. You
will surely see the Hellfire. Then you will surely see it with the eye of certainty. Then you surely
be asked that Day about pleasure.” (At Takathur/Competition in Increase: 1-8)
‫ب أننن نماَلنهم أنعخلنندهم‬

‫نوعيرل لكمكبل همنمنزمة لمنمنزمة * اَلنكذيِ نجنمنع نماَل نونعندندهم * ينعحنس م‬
“Woe to every scorner and mocker. Who collects wealth and (continuously) counts it. He thinks
that his wealth will make him immortal. “ (Al Humazah/The Traducer: 1-3)
What makes us a Poor?
The trial of lack of provisions and wealth afflicted upon a muslim might be caused by several
causes, such as:
1. Punishment/recompense of sins and transgresses he committed.
Allah the Exalted decreed:

30
‫ت أنعيكديمكعم نوينععمفوُ نععن نككثيِمر‬

‫صيِبنمة فنبكنماَ نكنسبن ع‬ ‫نونماَ أن ن‬
‫صاَبنمكعم كمعن مم ك‬
“And whatever strikes you of disaster -it is for what your hands have earned;but He pardons
much.” (Ash Shuura/The Consultation: 30)
‫صعبتمعم كمعثلنعيِنهاَ قمعلتمعم أنننىَ هننذاَ قمعل همنوُ كمعن كععنكد أنعنفمكسمكعم إكنن ن‬
‫ان نعنلىَ مكبل نشعيِمء قنكديرر‬ ‫صيِبنةر قنعد أن ن‬ ‫أننولننماَ أن ن‬
‫صاَبنعتمكعم مم ك‬
“Why (is it that) when a (single) disaster struck (on the day of Uhud), although you jave struck
(the enemy in the battle of Badr) with one twice as great, you said, “From where is this?” Say,
“It is from yourselves (i.e. due to your sin).” Indeed, Allah is over all things competent.” (Aali
Imran/The Family of ‘Imran: 165)
‫صاَلكعحاَ فنلكننعفكسكه نونمعن أننساَنء فننعلنعيِنهاَ ثمنم إكنلىَ نرببمكعم تمعرنجمعوُنن‬

‫نمعن نعكمنل ن‬
“Whoever does a good deed – it is for himself; and whoever does evil, it is against it (i.e. the self
or soul). Then to your Lord you will be returned.” (Al Jathiyyah/The Crouching: 15)
‫ظلَمم لكعلنعكبيِكد‬ ‫صاَلكعحاَ فنلكننعفكسكه نونمعن أننساَنء فننعلنعيِنهاَ نونماَ نردب ن‬

‫ك بك ن‬ ‫نمعن نعكمنل ن‬
“Whoever does righteousness – it is for his (own) soul; and whoever does evil, (does so) against
it. And your Lord is not ever unjust to His servants.” (Fussilat/Explained in detail: 46)
2. As a test and trial upon his faith
‫صندمقوُاَ نولنيِنععلننمنن اَعلنكاَكذكبيِنن‬ ‫س أنعن يمعتنرمكوُاَ أنعن ينمقوُملوُاَ آنمنناَ نوهمعم ل يمعفتنمنوُنن * نولنقنعد فنتننناَ اَلنكذينن كمعن قنعبلككهعم فنلنيِنععلننمنن ن‬
‫ام اَلنكذينن ن‬ ‫اَلم * أننحكس ن‬
‫ب اَلنناَ م‬
“Alif Laam Miim. Do the people think that they will be left to say, “We believe” and they will not
be tried?. But We have certainly tried those before them, and Allah will surely make evident
those who are truthful, and He will surely make evident the liars. “ (Al Ankabuut/The Spider: 1-
3)
‫س نواَلثننمنراَ ك‬
‫ت نوبنبشكر اَل ن‬
‫صاَبككرينن‬ ‫ف نواَعلمجوُ ك‬
‫ع نوننعق م‬
‫ص كمنن اَلعمنوُاَكل نواَلعنفم ك‬ ‫نولنننعبلمنوُننمكعم بكنشعيِمء كمنن اَعلنخعوُ ك‬
“And We will surely test you with something of fear and hunger and a loss of wealth and lives
and fruits, but give good tidings to the patient.” (Al Baqara/The Cow: 155)

31
‫ان كععنندهم أنعجرر نعكظيِرم‬

‫نواَععلنمموُاَ أننننماَ أنعمنوُاَلممكعم نوأنعولمدمكعم فكعتننةر نوأننن ن‬
“And know that your properties and your children are but a trial and that Allah has with Him a
great reward.” (Al Anfaal/The Spoils of war: 28)
CONCLUSIONS
There are still numerous verses in the Qur’an that explain about the wealth, properties, sweetness
of this world, business, and others from the chapter of muamalat (social engagements). But at
least, by the enlightenment from the previous verses, we could view the status of wealth,
properties, and worldly joys in a righteous perspective, comprehensively.
The universe and it’s contents belong to Allah the Exalted, for the sake of human being. This
includes wealth and properties.
Wealth and properties are just intermediary means, to support our worships to Allah the Exalted.
Because worshipping Allah alone is the cause of human and Jinn creation, as Allah revealed in
His verse:
‫ت اَعلكجنن نواَلعن ن‬
‫س كإل لكيِنععبممدوكن‬ ‫نونماَ نخلنعق م‬
“And I did not create the Jinn and mankind except to worship Me.” (Adh Dhariyaat/The
Winnowing Winds: 56)
3. Mankind was created in a nature of loving the wealth. Immense love to wealth and riches has
made them deny their Lord and committing wickedness, except those who has been guided by
Allah the Exalted.
4. Allah the Exalted has frequently mocked the avariciousness of mankind over wealth and
properties in several of His verses.
5. Wealth and properties are parts of trials given by Allah the Exalted to mankind in this world.

32
6. Allah the Exalted has commanded mankind to work in order to seek for wealth without being
overwork, and use the wealth appropriately. And they are obliged to devotedly seek for the legal
wealth from legal business, in order to seek Allah’s pleases, as He decreed:
‫ف تنععلنمموُنن نمعن تنمكوُمن لنهم نعاَقكبنةم اَلنداَكر إكننهم ل يمعفلكمح اَل ن‬

‫ظاَلكمموُنن‬ ‫قمعل نياَ قنعوُكم اَععنمملوُاَ نعنلىَ نمنكاَننتكمكعم إكبنيِ نعاَكمرل فننسعوُ ن‬
“Say, O my people, work according to your position; (for) indeed I am working. And indeed you
are going to know who will have succession in the home. Indeed, the wrongdoers will not
succeed.” (Al An’aam/The Cattle: 135)
7. Mankind are obliged to be grateful to Allah the Exalted, for every graces and provisions He
has granted, including wealth and the vast provisions.
8. Mankind should not be burdened but with what he is able to carry on. He shall not
overburdening himself (takalluf) in seeking for the wealth, thus he committed the forbidden
things and neglecting the rights and law of Allah the Exalted.
Allah decreed:
‫ق نوهمعم ل يم ع‬
‫ظلنمموُنن‬ ‫ق كباَعلنح ب‬ ‫ف ننعفعساَ كإل موعسنعنهاَ نولنندعينناَ ككنتاَ ر‬
‫ب ينعنكط م‬ ‫نول نمنكلب م‬
“And We charge no soul except (with that within its capacity) and with Us is a record which
speaks with truth, and they will not be wronged.” (Al Mukminuun/The Believers: 62)
‫ق فننجنععلتمعم كمعنهم نحنراَعماَ نونحلَل قمعل آنلم أنكذنن لنمكعم أنعم نعنلىَ ن‬
‫اك تنعفتنمرونن‬ ‫قمعل أننرأنعيتمعم نماَ أنعننزنل ن‬
‫ام لنمكعم كمعن كرعز م‬
“Say, “Have you seen what Allah have sent down to you of provision of which you have made
(some) lawful and (some) unlawful?” Say, “Has Allah permitted you (to do so), or do you invent
(something) about Allah?” (Yunus/Jonah: 59)
9. Allah the Exalted does not charged mankind to be rich, but ordered them to work according to
their capacity. And whatever the result, it is in His hand. Allah the Exalted increases and
decreases one’s provision on His wills, as a part of His general divine decree, as He said:
‫ت لكقنعوُمم يمعؤكممنوُنن‬ ‫ق لكنمعن يننشاَمء نوينعقكدمر إكنن كفيِ نذلك ن‬

‫ك لنياَ م‬ ‫أننولنعم ينععلنمموُاَ أننن ن‬
‫ان ينعبمسطم اَلبرعز ن‬

33
“Do they not know that Allah extends provision for whom He wills and restricts (it)? Indeed in
there are signs for a people who believe.” (Az Zumar/The Troops: 52)
10. The position of wealth and properties (in someone’s heart -trans.) should never be equal to, or
higher than the position of faith and worships to Allah. This is as indirectly stated by Allah the
Exalted in His verse:

‫ت اَل ن‬
“Wealth and children are (but) adornment of worldly life. But the enduring good deeds are better
to your Lord for reward and better for (one’s) hope.” (Al Kahf/The Cave: 46)
11. Our living in this world is not aimed to seek wealth, nor that it is aimed to spend in
extravagant. But the meaning of life is to worship Allah alone, the best we could.
12. Related to point no. 11, the calling of people that we do should never be targeted to gain
wealth and properties. But to call people to purify their worships to Allah, alone, or in other
words the first and most prominent, most important aim of the calling is tawheed. As this is the
prime mission of the calling of the prophets and messengers from time to time, as in a verse:
‫طاَمغوُ ن‬
‫ت‬ ‫نولنقنعد بننععثنناَ كفيِ مكبل أمنممة نرمسوُل أنكن اَععبممدواَ ن‬
‫ان نواَعجتننكمبوُاَ اَل ن‬
“And We certainly sent into every nation a messenger, (saying), “Worship Allah and avoid
taghut.” (An Nahl/The Bee: 36)
13. Allah the Exalted does not threat mankind with Hellfire due to their poor status, or their lack
of wealth. But He threats them due to their wickedness and transgresses. While being rich or
poor is just one of His graces or trials, bestowed upon mankind.
Finally… I call all of you, O brothers, to think carefully about the 2 verses below:
‫ض نولنككعن نكنذمبوُاَ فنأ ننخعذنناَهمعم بكنماَ نكاَمنوُاَ ينعككسمبوُنن‬ ‫نولنعوُ أننن أنعهنل اَعلقمنرىَ آنممنوُاَ نواَتنقنعوُاَ لنفنتنعحنناَ نعلنعيِكهعم بننرنكاَ م‬
‫ت كمنن اَلنسنماَكء نواَلعر ك‬

34
“And if only the people of the cities have believed and feared Allah, We would have opened (i.e.
bestowed) upon them blessings from the heaven and the earth; but they denied (the messengers)
so We seized them for what they were earning.” (Al A’raf/The Heights: 96)
ِ‫ف اَلنكذينن كمعن قنعبلككهعم نولنيِمنمبكنننن لنهمعم كديننهممم اَلنكذي‬

‫ض نكنماَ اَعستنعخلن ن‬
‫ت لنيِنعستنعخلكفنننهمعم كفيِ اَلعر ك‬
‫صاَلكنحاَ ك‬‫ام اَلنكذينن آنممنوُاَ كمعنمكعم نونعكمملوُاَ اَل ن‬
‫نونعند ن‬
‫ك هممم اَعلنفاَكسمقوُنن‬‫ك فنمأولنئك ن‬
‫ضىَ لنهمعم نولنيِمبنبدلنننهمعم كمعن بنععكد نخعوُفككهعم أنعمعناَ ينععبممدوننكنيِ ل يمعشكرمكوُنن كبيِ نشعيِعئاَ نونمعن نكفننر بنععند نذلك ن‬
‫اَعرتن ن‬
“Allah has promised those who have believed among you and done righteous deeds that He will
surely grant them succession (to authority) upon the earth just as He granted it to those before
them and that He will surely establish for them (therein) their religion which He has preferred
for them and that He will surely substitute for them, after their fear, security, (for) they worship
Me, not associating anything with Me. But whoever disbelieves after that then those are the
defiantly disobedient.” (An Nuur/The Light: 55)
Both verses tell about Allah’s promise of the better living in this world, which means the
abundance of baraka (blessings) from the heaven and the earth, (He will make) muslims to rule
the earth, and He will vanish their fears, and replace it with security. Those will be granted, with
a condition that men must truly believe in Him, obeying all His commands, and abandoning all
His prohibitions.
Hence…the making of betterment of ummah must be started from the very basic point, which are
tawheed and keeping them away from shirk. Besides that, the reformers who wish betterment for
ummah must explain to them about obligations of them in shari’ah in gradual manner. Because
today lots of muslim are unknowing about their religion, and they commit what has been
prohibited for them. And to overcome this is, is the responsibility of every muslim who earns the
capability to explain the matters to them, i.e. to explain the pure beliefs, tawheed, forbid shirk,
explain about sunnah, and prohibit wickedness and innovations. After that, if Allah granted us
with wealth and joy of the world, then all of those come from His generosity, grace, and gifts,
bestowed upon His creations in this world. But it is not advised to us to make those worldly
affairs as target, since it is Allah’s pleases and great rewards in the Hereafter are the ones
deserved to be longed for.

35
New Lecture
The Economic System in Islam
Generally speaking, scholars and researchers

have not given sufficient attention to studies
related to the field of Islamic economics. If we
turn to the Islamic works dealing with financial
matters, we would find that although Muslim
scholars of the past were exposed to these studies,
their general research methodology was quite
different from economic studies in our contemporary age, particularly when it is contrasted with
the great level of attention and care given to economic studies in our current age. Indeed, it
would be no exaggeration to say that such studies represent the spinal column of modern
societies, for the economy ought to be addressed with great care and attention, given its vital
connection to the life of society and its progress. Thus, while the attention of the state in the past
consisted primarily of securing public safety, political stability, and the repelling of aggressing
nations, the priority of the state in our day and age goes beyond these duties to include
comprehensive economic planning in order to enable its society to maintain high living
standards, with a flourishing economy that has a strong and stable currency and that is able to
export high quality products.
It is only natural that these highlighted aspects of economic study, such as what pertains to
production, currencies, or economic planning, would not have received the same level of
attention in the past as they do today, given the nature of life in the past, and for this reason, the
Muslim scholars of the past were not well exposed to these issues.
We shall thus restrict ourselves in this study on the economic system in Islam to addressing
a number of issues that relate to private property, the role and responsibilities of the state, the
charging of interest, and the various modes of investment, all of which are very crucial aspects of
any economic study.

36
The Key Features of Economic Thought in Islam
Economic though in Islam is marked by a number of distinguishing features that set it apart
from conventional economic thought, for it does not favor individual liberties over those of the
collective, and nor does it favor the rights of the collective over those of the individual; rather, it
attempts to seek the common welfare of the individual and the collective at once, such that the
individual is able to continue to exercise his or her freedom thereby without harming the public
welfare and transgressing against it . . . Thus, if one is to speak of any individualist tendency in
Islam, this individualism would be very different in its definition, nature and scope from the
individualism of the capitalists, and if one were to mention any communitarian spirit, this
communitarianism would certainly be different in terms of its humanity, comprehensiveness, and
balance from the communitarian spirit of the socialists and communists. Islam is a heavenly
religion with a Divine Law, and as such, it differs significantly in its origin from any
conventional law, for its goals are of a humanist character, its teachings are based on a sound
nature, and its features are essentially moderate.
For this reason, it is truly a gross error and a major offense to strip Islam of its
distinguished nature in an effort to make it conform to any conventional ideological system, be it
capitalist or socialist, because these ideologies were born under the pressures of particular
circumstances that forced them upon the societies in which they emerged, developing in their
lands and in response to the emerging evidence within them. As such, planting these ideological
systems in diverse social settings that are very different from these societies in terms of their
religions, beliefs, cultural heritage, history, general nature, and mentality will most certainly only
lead to an increased sense of disorder, degeneration, and regression. Indeed, our society has
suffered the fate of a compounded ignorance that has become a heavy burden, and it must now
strive to develop a comprehensive reform plan that can enable it combat this ignorance and to
secure the means to its progress, so that it may become once again a strong and prosperous
society that is able to keep apace with the procession of modernity and contribute to the
cultivation of itself and others . . .
Accordingly, from focusing on the distinguishing properties of the economic system in

Islam, the following features emerge:

37
First: Human Nature:
This feature is not restricted to Islamic economic thought, but rather we find it in all
aspects of Islamic thought, for Islam in terms of its religious dimension strives with utmost care
to connect its legislative principles toits ethical foundations, in order to create with them a bridge
that serves to secure happiness and tranquility for the human condition.
I believe that greatest resource at the disposal of the human being is human nature itself,
and for this reason, every regime, legal system, or law must aim to contribute in cultivating this
benevolent naturein the individualself, for the crisis of our contemporary societies stems from the
weakness of this benevolent predisposition in the modern human being. For this reason, the
modern human being is characterized by a ruthless energy that directs all its potential towards the
destruction of the individual and the collective, and to the destruction of humanity itself, as we
have amply witnessed in the two world wars, which occurred within less than a quarter century
from each other, highlighting for us the great need for the cultivation of this sound human nature
in today’s society, so that humans may return as brothers to one another, cooperating together for
the advancement of the human race and contributing to the betterment of human societies that
are burdened by the shackles of ignorance, poverty, and disease.
Second: A Moderate Middle Ground:
These features are made clear for us when we observe the program ofeconomic and
financial legislation in Islam, which may be characterized as striking a very clear balance
between individualism and communitarianism. Every system that subscribes to this balanced
program guarantees for itself its continuity and durability and would be better off in facing any
challenges or crises than more radical systems, for radicalism often points to a state of
constriction and is often the result of severe psychological reactions, and it often ends when the
conditions leading to such reactions begin to dissipate.
Indeed, a simple glance through the Noble Qurʾān’s verses reveals that the Qurʾān has
maintained throughout its program of guidance and legislation a moderate middle paththat is
balanced, as Allah, the Most Exalted, states, “And do not keep your hand tied to your neck (out

38
of stinginess), nor stretch it out too readily, lest you sit down blamed and destitute” [al-Isrāʾ: 29],
and also, “And those who, when they spend in charity, are neither extravagant nor niggardly but
adopt a just balance between the two (extremes)” [al-Furqān: 67]. Furthermore, with regards to
the prohibition against the squandering of wealth in charity,He states, “And give the relative his
due, and the needy, and the wayfarer, but do not squander your wealth extravagantly, for verily,
the squanderers are brothers to the devils, and the Devil was most ungrateful to his Lord” [al-
Isrāʾ: 26-27].
This sense of moderation is most readily manifested in the Islamic position on private
property, as its position on private property consists of a moderation that is free from extremes,
for the ownership of property in Islam is considered an absolute individual right and nor is it
regarded as an absolute communal right; rather, it is regarded as both an individual and
communal right, and the individual right is apparent in Islam’s explicit affirmation of this right to
private property and its guarantees for its protection against any transgression against it, while
the communal right can be seen in the restrictions placed on it in terms of its development and
use for the common weal.
Third: Positive Realism
Economic thought in Islam is characterized by a positive realism that is well received by

the individual and by society without much difficulty or hardship, for Divine Laws and
legislation should not simply aim to be idealistic. This is because with regards to what is overly
idealist in an imagined unrealistic sense becomes to too difficult for people to live by and is thus
often abandoned. This, however, should not mean that legislation ought to conform to people’s
whims and desires, for with this form of deference lawmaking fails to take on a constructive role
in the advancement of society. Indeed, the Divine Laws have not come for any other reason other
than to advance people and assist them such that they become elevated in their understanding,
honest in their dealings, and sincere in their work.
What is considered ‘realistic’ in the Islamic sense is that which the individual finds no
burden in taking on and fulfilling its responsibilities, while at the same time it is an idealistic

39
(positive) form of realism in the sense that it is able to practically assist in advancing the human
being. It is for this reason that we see the general Islamic teachings have historically shunned
from busying people with the excesses of asceticism and physical detachment, as they are aimed
at making the individual a well-rounded soul with a balanced personality.
In terms of Islamic economic thought, its realist focus can be seen in the balance struck
between the individual and the community and between the community and the state. Thus, the
right to private property is instituted to meet the natural psychological instinct for ownershipin
the human being, while it is simultaneously restricted by the demands of the public weal in order
to achieve a sense of balance, for this is the foundation that leads to the actualization of social
advancement and progress and to a sense of stability and fulfillment.
If we thus look to the independent legal reasoning (ijtihād) of the greatest Companions
(Ṣaḥāba), we would find that they were very much concerned with a realistic assessment of day-
to-day affairs when it came to their interpretation and understanding of the sacred sources, and it
is for this reason that their legal opinions were able to actualize the public weal and to respond to
the conditions of their social setting.
Fourth: Restricting individual welfare to the demands of the public weal
This is one of the principles upon which Islamic economic thought is based, which consists
of guaranteeing the autonomy of individual decision-making as long as it is in accordance with
the public weal by restricting individual freedoms to accord with the collective good, which is
the ostensible objective behindthe institution of any legislation or regulation, for (individual)
rights are tied to social benefits, which are the objectives of the Law.
And if we were to go back to the established sources of the Sharīʾā, we would find that
they fully affirm the need to restrict the principle of individual autonomy in decision-making to
the dictates of the common weal. Examples of this are those texts prohibiting such things as
monopolization, harm, or exploitation;even when these individual actions may serve to actualize
some tangible benefits for the individual concerned, they nonetheless cause him to harm others
who should not have to bear the cost of this ugly exploitation, and it is thus the duty of the state

40
to ensure that the welfare of the collective is always preserved by monitoring individual
freedoms to ensure that they do not constitute ugly forms of exploitation.
For this reason, many individual actions that have been mentioned in the Qurʾān are
considered permissible only to the extent that there are no harmful consequences to others
associated with them, such as the case of a Sharīʾā compliant will, which cannot be written with
the intention harming one’s inheritors, holding on to one’s wife (denying her a divorce) with the
intention of harming her, or divorcing her with the intention of fleeing from any inheritance
obligations; asthe Most Exalted states, “after the payment of any bequest that may have been
bequeathed or of any debt, without any intention to cause any harm or injury. This is an
injunction from Allah, and Allah is Wise, Forbearing” [al-Nisāʾ: 12], and concerning the wives,
“and do not retainthem out of malice so as to transgress (against them).”
The Noble Messenger has said, “There shall be no harming and no being harmed,” and this
ḥadīthreport is considered amongst the most important foundational principles upon which
Islamic legislation relies and that serves to prohibit any harms that may be directed against the
public weal. There are many similar principles of Islamic substantive law (fiqhi) that are used to
limit unfettered individualism if it results in any harms to the community; among these are the
permissibility of detaining the ignorant doctor who has harmed his patients with his treatment,
the permissibility of detaining the incompetent from squandering his money incompetently, so as
to secure his welfare and that of his inheritors and broader society, the permissibility of
confiscating monopolized wealth and what is sold at the monopoly price, such that the monopoly
does not become a means to instant prosperity, and the permissibility of fixing profits so that
entrepreneurial greed does not result in the exploitation of consumers and harming them.
As can be seen from these examples, it becomes very clear that Islam endorses the
restriction of individual actions for the sake of protecting the common weal, such that it does not
remain at the mercy of the frivolous and the exploitative.
Fifth: Encouraging economic activities throughout the lands
Islam is very concerned with encouraging economic activity and exhorting Muslims to
hard work that is productive and profitable, and it has strongly opposed unemployment,

41
dependency, and idleness and prohibited the hoarding of wealth and depending on it. For this
reason Islam has not mandated spending on the poor who are capable of working, so that it does
not lead to their dependence on charity and to laziness and idleness.
In terms of agriculture, Islam has strongly encouraged the reviving of dead lands, and the
manuals of Islamic law there are specific chapters devoted torevival of uncultivatedlands.
Whoever revives a dead land, it becomes his property, as in the saying of the Messenger, peace
be upon him, “Whoever revives an uncultivated land, it shall be his.” He also said, “The common
land is for Allah and His Messenger and then to you after that, and whoever revives an
uncultivated plot of land, it becomes his.” By the grace of this call to farming and by the grace of
this encouragement to cultivate the land, people dispersed to revive any abandoned uncultivated
lands, and they began to revive them by plowing and irrigating them, for by doing this, the land
becomes their property. The Islamic state, however, was not merely satisfied with this but
resorted to the redistribution of public lands to whoever was able to cultivate and develop them,
for the state is incapable of fulfilling this development, and by giving these lands to those who
would develop them contributes to the redevelopment of abandoned lands, allowing them to
produce a yield.
Sixth: Restrictions on the expansion of private wealth
If are to consider the rulings related to money in the Islamic Sharīʿā, we would find that it is
very concerned with placing restrictions on the expansion of private wealth, so as to ensure that
this wealth is not wielded by its owners as a weapon against the public weal. Given that Islam
has safeguarded people’s wealth from any attacks against it, its owners must then ensure not to
use it in ways that are harmful to others.
From among the most important restrictions that Islam has placed on the expansion of
wealth are the following:
1. Wealth cannot be raised excepted through lawful means, and any wealth that is raised through
prohibited means remains unprotected and unsupported by Islam. The lawful means for
expanding one’s wealth is through working and earning in a manner that is free from any form of
exploitation or harm to others. Any profitsgained through exploitative or harmful means is a

42
corrupt profit that is unworthy of any respect, as it violation of the basic moral principles that
ought to be observed by the possessor of such wealth.
2. It is not permissible for wealth to be used in any manner that is harmful to individuals, the wider
society, or the state. Thus, if this wealth is amassed and becomes powerful enough to be used for
altering currency rates or engaging speculation that is harmful to the public weal, then it is the
duty of the state to seek legitimate and just Sharīʿa means by which to reduce the dangers of this
financial power because it is impermissible to block any potential harm to individuals in a
manner that causes to the original owner of the wealth, as justice must be maintained for all
parties concerned.
3. The wealthy owner has an obligation to fulfill his financial duties with his wealth,such as paying
the alms of Zakat and other duties of social solidarity. If the owner refuses to pay these dues that
are obligatory upon his wealth, the state has the right to secure such payments through the power
vested in its authority and to secure them for the poor and needy and for any projects related to
the public weal.
From these observations, it is clear that wealth under Islamic rule cannot be raised in a fast
and ugly manner, given the constraints and obligations associated with it that would preclude its
large expansion within a short duration. And if wealth is raised in accordance with the Sharīʿa,
having fulfilled any obligations towards the larger society, such wealth is considered sacrosanct
and respected under Islam. Additionally, Islam has sanctioned the concept of inheritance shares,
which is the division of wealth amongst one’s inheritors, thus restricting the expansion of wealth
once again, such that it may no longer add to the potential harm of society.
Seventh: The fight against poverty
Every economic system strives to fulfill certain objectives, and among the most important
objectives for economic studies and financial policiesrelating to Islamic legislative thoughtis the
fight against poverty, as the phenomenon of poverty is a social illness, and the dangers of its
reality do not extend to those who are poor alone but rather go on to affect the society as a whole.
Society cannot be established on a firm and solid foundation, while a section of its people suffers
from the plights of poverty and is afflicted by its scourge. Thus, any religious, nationalist, or

43
moral call is bound to have little impact on a people’s state as long as it is not tied to any
foundational reforms that are aimed at relieving this continuous source of suffering, for poverty
constitutes a dangerous illness, and it is up to the reformers, if they hope to gain any attentive
ears, to establish their call on the eradication of this deadly scourge and destructive danger . .
Otherwise, any such call to reform would fall on deaf ears and result in no more than empty
rhetoric that has no resonance with the people.
Islam’s response to the phenomenon of poverty has always been decisive, as it has
affirmed the concept of sharing a portion of one’s wealth between the rich and the poor, and this
sharing of a specific portion is renewed annually and applies to all types of assets that are raised,
be it money, real estate, personal effects, or crops . . This share ought to not to be associated with
the desire of its contributor, nor is it to be regarded as an act of good will or benevolence, as it is
not in essentially a chartable act that is deserving of praise and gratitude, but it is rather an
obligatory duty that is due annually upon anyone who owns wealth, willingly or unwillingly, and
it is the duty of the state to collect it and redistribute it to the needy who are deserving of it.
Islam has not sufficed itself with outlining this financial obligation but has also mentioned
other obligations upon the wealthy that are by no means less significant or worthy than the
Zakat, such as the duties of social integration inall their material sense, including forms of
financial support, expiations, charity,blood money, endowments, and bequests.
The financial obligations that are due upon the wealthy are by no means restricted to what
we have mentioned in terms of their amount, but they rather extend according to what is needed
to cover all the basic social needs in cases where poverty is widespread since it would be
Islamically inconceivable to tolerate a poor class that is utterly destitute and incapable of feeding
itself, while an other social class lives a life of prosperity, extravagance, and ease . . For this
reason, the noble Messenger affirmed the idea of sharing between the two camps of the
Muhājirīn (Migrators) (al-Muhajirīn) and the Anṣār (Supporters), and he specified that the
Migrators specifically as the recipients of assistance in this case, in order that the wealth does not
remain hoarded amongst a minority of the wealthy, and said concerning this,”Whoever has an
extra mount shall give it to the one without a mount, and whoever has any extra provisions shall
give to the one with no provisions.” The narrator of this ḥadīth Abu Saʿīd, commented on it,

44
saying, “And he continued to list the different types of wealth, until it became clear to us that we
had no right to keep anything of what we had in excess.”It was also narrated that the Messenger
of Allah, Allah’s peace and blessings be upon him, said, “Whoever has food for two shall fetch a
third, and whoever has food for four, shall fetch a fifth or a sixth.” It was also narrated on the
authority of ʿAlī b. AbīṬālib that he said, “Allah has decreed that the rich provide of their wealth
to the extent that they are able to meet the needs of the poor among them, and if they are left to
go hungry, bare and exhausted, then it is by the will of the wealthy, and Allah, the Most Exalted,
has the right to hold them to account for this and punish them for it on the Day of Judgment.”
The Islamic Perspective on Private Property
Private property constitutes one of the pillars upon which society is founded, and it would
be inconceivable for any society to deny or ignore the concept of proprietorship because the
drive for ownership is something that is instinctively ingrained in the human psyche, and this
drive can be quite strong amongst certain peoples and individuals, while weak amongst others.
However, it would be impossible to deny it altogether without any intransigence or difficulty.
And if we are to consider that some regimes have attempted to eliminate private ownership all
together, we are still left with the inescapable reality that such regimes would never be able to
overcome the hidden and instinctively human drive for ownership, as the human being from the
beginning of his or her childhood can be seen longing and looking to possess small objects, and
once this drive grows stronger and is developed further as he or she is able to understand what it
means to possess or own something, this drive will eventually propel him or her to work harder
and to exert an effort, and to earn and income, as it is the most immediate material incentive that
affects human behavior and productivity.
Especially given that economic studies today seek a great level of sophistication in
supplying the material and spiritual incentives of individuals, so as to encourage them in
increasing their work and productivity, the elimination of private property would effectively
serve as a defining detrimental factor in killing the sense of motivation within the human being,
which would make any work appear as a loathed duty and lead to a preference for slacking off.

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Given the above, it is only natural that Islam would affirm the concept of private property
as something to be celebrated, except that it would also not wish for private property to
constitute a burden on society and for proprietors to transgress in their exploitation of it and their
investment in it. For this reason, Islam has surrounded this concept with many restrictions,
duties, and conditions, such that it may be steered in an appropriate direction that contributes to
the wellbeing of the individual and that serves the advancement of society.
The Nature of Private Property in Islam
The topic of subject property is considered among the most important subjects for
researchers and it has been the source of much debate and disagreement amongst the scholarly
community of philosophers, legal scholars, religious clerics, and politicians. Some of have
viewed it from an individualist light, highlighting its necessity and the importance of affirming it
and of securing full freedoms for proprietors in terms of how to dispose of their properties, while
others have viewed from an opposite light, highlighting how it represents a real danger to the
public weal and indicating that for this reason it ought to be eliminated and done away with as a
right.
The mistake in my opinion is that each of the two perspectives has focused on the concept
of property from a partial angle that fails to account for comprehensive vision, and for this
reason, both perspectives have fallen into the error of being too quick to judge and consider.
Indeed, private property has its own positive side in terms of its contribution to the building of
society by providing the necessary incentives for hard work and the earning of income, but it
also has a negative side in that the proprietor may seek every possible means to expand his
property and wealth, even if they be at the expense of the public weal and harmful to the
community.
From here, we can ascertain the distinguishing nature of private property in the Islamic
perspective, which can only be grasped through the comprehensive perspective that Islam has
taken vis-à-vis the concept of proprietorship. The nature of proprietorship in Islam is
simultaneously constituted of a private and a communal dimension; it is neither to be viewed in
an absolute individualist and private light, as is the case with the proponents of capitalism, due to

46
the constraints and obligations that Islam has imposed upon it, and nor is it a form of
unsuccessful communitarianism, as the proponents of communism, due to Islam’s affirmation in
principle of the concept of proprietorship, even if it has not tolerated the idea absolute ownership
with the constraints and obligations that it has associated with it in the name of the public weal.
It is thus regarded in an individualist light in terms of its affirmation and in a communal light in
terms of the restrictions placed upon it, and as such Islam has provided a very positive remedy
for the challenges of private property.
And if we were to go back to the Noble Qurʾānic verses concerning the topic of private
ownership, we would find a confirmation of these two dimensions, for the Qurʾān ascribes
ownership to Allah in some instances and also ascribes it to individuals in other instances. The
explanation for this combined mention is to alert the our attention to this distinct feature, in order
to guarantee that the proprietor is able to direct his property to the benefit of society since it is
impermissible for him to use it or invest in it in a manner that contravenes the boundaries of the
Sharīʿa, which are antithetical to anything that is harmful or exploitative.
As the Most Exalted mentions in ascribing all wealth to Himself:
“And to Allah belongs the kingdom of the Heavens and the Earth and all that is in between” [al-
Māʾīda: 17];
“And give them of Allah’s wealth that He has bestowed upon you” [al-Nūr: 33];
“And believe in Allah and His Messenger, and spend from what He has made you successors to”
[al-Ḥadīd: 7];
And with regards to ascribing wealth to the people, He said:
“And do not devour your wealth between you unjustly” [al-Baqara: 188];
“And take from their wealth a charity” [al-Tawba: 103];
“Allah has purchased from the believers their very lives and their wealth in exchange for
Paradise” [al-Tawba: 111];

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“And in their wealth is a rightful portion for the beggar and the needy” [al-Dhāriyāt: 19].
The ascription of proprietorship to Allah does not in any way conflict with the ascription of
proprietorship to people, as its ascription to the people is born out of a desire to grant the human
being the responsibility to invest in it, tend to it, and to take care of it, while its ascription to
Allah is meant to keep the proprietor from indulging in his greed, such that it brings harm to the
people.
The Duties Accruing from Private Property
The duties accruing from private property consist of the active financial obligations that
the proprietor must commit to; in addition to his responsibilities in ensuring that his wealth and
investments are developed through means that are compliant with the Sharīʿa, he is also
responsible for the following duties:
The duty of Zakāt: Zakat consists of the financial obligation that the proprietor must fulfill
towards the poor and needy, and it is considered a religious obligation that is both an act of ritual
worship and a financial obligation. Perhaps it has been given this characteristic of worship as
means of spurring people to pay it and to fulfill its obligation, as people are more prone to failing
in their financial obligations.
The duty of social solidarity:social solidarity in Islam is a general concept that stems from
Islam’s desire to bring about a society that is cooperative and well integrated and that is founded
upon the values of love, affection, and unity, such that it becomes a cohesive society whose
building is stable and is based on a firm foundation and strong pillars . . As the Most Exalted
states, “The believers are but brothers,” and the essence of brotherhood is none other than
cooperation, solidarity, and affection. As the noble Messenger describes the believers, saying,
“You see the believers in their compassion, affection, and sympathy with one another as the
example of a single body; if a body part complains (of any pain or ailment), the rest of the body
responds to it with sleeplessness and fever.” Narrated by Bukhārī and Muslim.
The Noble Qurʾān has clarified the meaning of righteousness, stating, “Righteousness does
not consist of turning your faces to the East or the West, but the righteous is one who believes in

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Allah, the Last Day, the angels, the Book, and the Prophets, who spends of his money out of love
for Him on the near of kin and the orphans and the needy and the wayfarer and those who ask
and in emancipating the slaves, who observes the prayer and performs the Zakāt, and those who
fulfill their promise when they make a promise and who are patient in good and bad and in war;
these are the ones who are truthful and such are the ones who are God-conscious!” [al-Baqara:
177] . In this manner it becomes clear for us that the obligatory duties of private ownership are
not merely restricted to Zakāt but rather extend to all that contributes to the service of the
community and promotes brotherly relations between its members.
The Constraints on Private Property
Islamic legislation does not seek to bind private property with material obligations but
rather has obligated the proprietor with meeting certain restrictions on the generation of wealth
or its use. These restrictions consist of negative commitments that are binding on any proprietor
so as to ensure that his property is of no harm to the public weal, for though Islam seeks to affirm
private ownership as a means of accommodating this natural human instinct and for this property
to fulfill its role in society, it also forbids that this right be used towards purely materialistic and
greedy ends. Although the proprietor may derive a particular benefit from developing his
property and its use in any manner that maylead to abundant gains, such a materialistic vision is
disapproved in Islam for contradicting its moral foundations and legal rulings.
These negative commitments are met by two restrictions:
First:that private ownership is not developed non-Sharīʿa means that are harmful to others such
as forming a monopoly, fraud, or exploitation since all such means are unlawful in Islam due to
their harms against the people. Any wealth that is generated through such means is cannot be
respectable or protected under Islam but rather it is the duty of the authorities to prevent these
unlawful means from being used in the interest of the common weal and to preserve the
objectives of the Sharīʿa.
Second: that this expansion of wealth is not contrary to the moral principles mandated by
Islamsuch as the trade in harmful merchandise, alcohol, drugs and all the like of what is
detrimental to the religion, morals, nation, and economy of the wider society. Among these is

49
means is human trafficking and their shipping to nations that violate their rights, trading in
contraband and legally prohibited products, which are only prohibited for their harms to society,
and thus trade in such merchandise grants the merchant an opportunity to exploit this prohibition
to actualize corrupt earnings.
Private ownership is constrained by all the relevant passages in the Qurʾān and Sunna,
which ascertain the prohibition of any harm or harming, irrespective of the means, and harm in
all its types is forbidden in Islam, as no rights can be guaranteed through harm, a principle which
the noble Messenger has amply clarified in his saying, “there should no harming nor
reciprocating harm.” This ḥadīth calls for the prevention of harm in all its manifestations, be it
through using preventive means before it falls or repairing its traces after it has fallen. Islam has
by no means sufficed itself with prohibiting harmful conduct, such as any conduct that stems
from a motivation that is harmful to the individual or collective because even if the action itself
is permissible, once it is tied to a harmful or prohibited motivation, then it is also prohibited, as it
is impermissible for the human being to go about arbitrarily applying his or her rights, even if the
actions are permissible, for anything that is tied to a sinful intention becomes itself prohibited by
virtue of its motivation. For this reason, if a proprietor uses his wealth with the intention of
harming his neighbor, partner, or any individual in society, then such a use can never be lawful
for its association with a harmful intention.
The Ruling on the Confiscation of Private Property
Many people ask about the ruling concerning the legitimacy of confiscating a private
property or nationalizing it in its present form and Islam’s position vis-à-vis this policy, which is
normally considered a violation of the right to private ownership and a direct attack on the
proprietor. In response to this question, I would not wish to provide a single for this type of
situation, which can be constituted of very different circumstances where different rulings apply.
I can however confirm the self-evident truths that Islam prohibits all forms of injustice, whether
this injustice is from the state against the individual or from the individual against the society, for
it is unlawful for the state to violate the rights of individuals and attack their freedom to own
property and to earn an income. The ownership of property is an established right, and since the
individual works hard with much effort to secure his property, it is only just that this right be

50
protected against any foreign aggression. At the same time, however, we must not be unmindful
of the fact that the individual cannot develop his property or wealth through exploitative means,
the enforcement of a monopoly, or the harming of others, and in such cases the property is no
longer protected, as it was reaped through means that are not sanctioned by the Sharīʿa.
With this discussion, the following picture emerges:
First: the confiscation of an individual’s private assets by state authorities in order to exact the
vengeful desires of a tyrannical ruler or their development to the benefit of the ruler and his
authority, such actions cannot be approved by Islam for their clear injustice.
Second: the confiscation of private property in response to a pressing social interest, which is an
extension of the view that a property may not be confiscated if it leads to any harm to the public
weal, and examples of this case are the confiscation of property for the expansion of public roads
or the building of dams and railroads. Such forms of confiscation are clearly permissible and are
mandatory if they bear no harm to the common good, which must always be tended to by the
state. The historians have recorded that the Second Caliph ʿUmar b. al-Khaṭṭāb had wanted to
expand the Holy Mosque (in Mecca) and requested to by the homes surrounding the Kaʿba to
add them to the mosque. In response some homeowners accepted while others disapproved, and
so ʿUmar b. al-Khaṭṭāb seized their properties by force and placed their values in the coffers of
the Kʿaba to compensate them, saying to them, “You have chosen to settle by the Kaʿba, and this
is its precinct, while (you cannot claim that) the Kaʿba settled on your properties.”
This being said, it must be ascertained that any confiscation of private property,
irrespective of the pressing need for which it was intended, cannot result in an injustice to the
original proprietor, and for this reason it is the duty of the state to offer full financial
compensation for his property so as to ensure that he is not met by any injustice behind this
confiscation which was necessitated by the pressing circumstances.
Third:the confiscation of corrupt assets, such as those that are acquired or developed through
contravening the established principles of the Sharīʿa or that are aimed at harming public
interests, which are sacrosanct. Under this fall all forms of property or assets that were gained
through dealing in interest, imposing a monopoly, harming others, bribery, forms of trafficking

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that can be harmful to the society or state, tax evasion, failing to pay the Zakāt, trading in
merchandise prohibited under the Sharīʿa or that are illegal under state law, and in addition to
this wealth is any profit that is achieved through the exploitation of particular circumstances such
as the corrupt profits of a merchant who exploits the circumstances of war or the hiding of
certain merchandise from the market, for any profit that carries the features of exploitation is
necessarily a corrupt profit that is unlawful. It is thus the prerogative of the just state to carefully
examine each of these cases individually and to confiscate in whole all that is gained through
bribery, interest, or a monopoly and to confiscate partially what is gained through exploitation or
corrupt profits. In such cases, an authorized committee can determine the amount the amount
needed to restore justice in a manner that leads to no harm to either the individual or society at
large, for justice is what is sought and demanded in all occasions, and it is the objective
standardupon which each new instance must rely.
The Islamic Perspective on the Economic Functions of the State
The Primary Function of the Islamic State:
Among the most important functions of the state in Islam is the protection of public interests, and
these interests are not limited to guaranteeing the security of the public and protecting the
borders of the state but rather extend to securing what Islam has legislated for the benefit of the
individual and society at large, for Islam did not institute such laws for a frivolous purpose that is
empty of meaning. Rather, these laws are there to be implemented, and it is the duty of the
Islamic state to strive in applying the rulings of Sharīʿa, which have been instituted for no other
reason other than to secure the interests of the public and to place Islamic society on a solid and
upright footing that is firmly constituted.
The Islamic perspective is that the state has no claim to ownership nor does it have a
partisan role in confronting the people, for if this were the case, it would certainly lead to some
form of conflict and antagonism in the actualization of competing interests. The state, however,
by virtue of its authority and power is better able to secure its interests, especially when it
harnesses its potential in an immoral manner by prompting society to serve the authorities and

52
subjugating the people to meet the interests of those in power with the threat of violence and
deterrence. However, the state from the Islamic perspective is but an instrument that has been
facilitated in the service of the public, and society is the source of its legitimacy. Its ultimate
purpose is thus to secure the wellbeing of its citizenry, and the establishment of justice and
working towards ensuring security and public order are the means to fulfilling this purpose. As
such, it is unbefitting for the state to transcend the limits that have been imposed upon it in its
rule just as it is unbefitting for the state to ignore its essential purpose which is to serve the
people, as opposedsubjugating the people in its service, for the people come before the state, and
the state is but an instrument in securing the welfare of the people.
With this in mind, Islam has guaranteed the freedom of individuals with respect to their
religion, opinion, work and earnings, while providing them with the freedom to live a dignified
life, be it in relation to individual freedoms, freedom of opinion, and the freedom to work, earn
and own property as one wills, except that all such freedoms function as medicine: if they are
used in precise measure and with wisdom, the cure is actualized, and if they areused in a random
fashion, they are a cause of death and extinction. Thus while freedom of opinionis guaranteed, it
is unbefitting to use it destructively to instill doubts in the basic creed of the Muslim Ummah, in
its heritage, in its ability to ward off enemies, and in its right to defend its interests. As for the
rights to earn, to work, and own property, these are affirmed because they are the means to
developing a strong integrated economy that bestows its benefits on the individual and society at
large. But such rights must never be directed towards the exploitation of society and exposing it
to harm by exploiting its needs and harming its national interests.
The state is the authority that is responsible for protecting these societal interests, and this
is achieved by looking after them and affirming the rulings that protect them against any
exploitation or misuse.
The State’s Supervision of Economic Affairs
Since the duty of the state is to protect society’s interests, it must have some form of
commission established to provide some oversight over the civil transactions that take place
within it, and this is primarily achieved through the establishment of specific regulations that are

53
meant to preserve civil rights and that are subject to the prevailing social conditions. As such, the
state must strive to legislate the necessary laws that are needed to preserve people’s rights, and
any law that is intended to this effect or to protecting the interests of a certain segment of society
is not only permissible in Islam but in fact required on the condition that it meets the description
of the objective it aims to achieve and that it does not violate the rights of any individual from
among the people. From among these laws that must be legislated by the state for the
preservation of the public weal are labour laws that are meant to determine the number of
working hours, fix minimum wages, establish vacation pay, establish a social security net, and
provide employment insurance for unanticipated layoffs. The proof for Islam’s need of such laws
is that Islam has come to protect public interests and labourers, for this the class that exerts the
greatest effort, and what they produce is more worthy of protection and care. As such, it is the
duty of the state to protect them against arbitrary treatment and exploitation, as it is unlawful
subject their lives and the lives of their families to the whims of their employers who may derive
personal benefit from cheating them and paying them minimally for their work. Thus, should the
state have no interest in securing universal healthcare and education for the children of the
patiently striving working class, it should at least ensure to collect the Zakat from the wealthy so
as to assist in providing them with a dignified living.
If the state is able to assist in securing this general masses with its right to a dignified
living, it would deter them from turning to these suspicious groups that only desire to exploit the
people as instruments for the actualization of political ends. On the other hand, if this section of
the masses were to turn instead to Islam, which is their religion and creed, it would find therein
the financial regulations that would guarantee its dignified economic right to a generous
life. Thus, the fact that Islam never was and never can be a religion of injustice and that it would
be inconceivable for it to accede to any form of exploitation under any given circumstanceshould
suffice such people as a source of great pride; Islam has granted them the right to share annually
in a portion of what the wealthy make, and this allotted portion is sufficient enough to meet all
the needs of the poor and need to guarantee them with a dignified existence.
The Islamic Inspection Regime (Ḥisba)

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Under its golden age, the Islamic state depended on a system that enabled it to inspect the
markets, financial dealings, merchandise, and public benefits in general, and this system was
developed into an official inspection regime (wilāyat al-ḥisba).
This inspection regime functions as an inspection commissionthat is tasked with

overseeing and maintaining all that pertains to protecting the interests of society, so as to assist
the state with its supervisory role and with combatting all forms of corruption, exploitation and
harm.
Many books have been authored on the topic of inspection and the duties of the inspector,
and they all affirm the duty of the state in protecting society against the dangers of those who are
accustomed to exploitation and whose conscience is incapable of deterring them from
committing prohibited offences that harm people.
Al-Mawardī states in his work al-Aḥkām al-Sulṭāniyya: “In the case of detested
transactions such as those involving interest, corrupt sales, and the sale of what the Sharīʿa has
prohibited while both the parties to the transaction agree to it and are aware of its unlawfulness,
the inspection regime has the authority to and must condemn them, prevent them, and punish
them depending on the gravity of the violation. Among such transactions are the cheating
merchandise and manipulating costs, which must be condemned, prevented, and punished
depending on the circumstance, for if this cheating is intended to deceive the buyer buy hiding
from him the cost, then it is a more harshly condemned offence that is more sinful, which ought
to be more strongly condemned and punished, whereas if the nothing is kept hidden from the
buyer, it would be less sinful and not as serious.”
The Scope of State Intervention in Economic Affairs
It would be pointless for us to comment on the state’s intervention in economic affairs

beforeunderstanding the purpose of such intervention, for if this intervention brings about some
common good or is demanded by some exigent circumstances, then it becomes mandatory upon
the state without doubt. This is because the very purpose of the state is to secure the public weal,
and thus if such considerations call for state involvement, then it becomes a duty upon the state
to intervene to protect society and its interests. However, if this intervention is with the intention

55
of harming certain individuals or oppressing society and subjugating it to a despotic authority

and by terrorizing them with threats of seizure and expropriation as a means of controlling their
movement and spreading fear within them, such intervention is clearly unacceptable, as it carries
with it the meanings of injustice and repression, and all the revealed religions and any just legal
system have come for no other purpose than to prevent injustice and to struggle against the
unjust.
It is permissible for the state to intervene, however, in the following cases:
First: in cases where there is a monopoly, exploitation, or any harm, for in such cases public
interests are exposed to dangers that are harmful to society, and as such it is permissible and in
fact a duty of the state to protect society since its primary function is to protect its interests. Thus,
if the major merchandise that constitute the every day needs of the people happen to be
monopolized by a small group of merchants, it becomes incumbent upon the state to seize such
merchandise in order to resell it at its normal prices and to make it affordable to the people and to
prevent this wrongful exploitation from becoming a means to prosperity that is in contravention
to the Sharīʿa.
Second: the case of corrupt earnings:though the right to make an earning is well established for
individuals, it is impermissible for it to be accompanied by the exploitation of times of crisis
such as wars, economic depressions, political crises, or when goods are in shortsupply. Such
exigent circumstances do not permit merchants to unjustly and exorbitantly raise their prices.
While Islam has legally allowed for prosperous gains in profits, it has restricted this to the lawful
profits that are well known by merchants and which consumers are able to accept with
conviction and satisfaction. As for the base profits that are extracted from the consumer with
great reluctance, such are sinful and bad, and for this reason it is incumbent upon the state under
these circumstances to intervene and fix the profit margin so as to protect consumers against the
dangers of unfettered greed and exploitation.
Third:cases of pressing needs: as the problems of life have developed in complexity, and the
interests of people have become ever more intertwined, while the means of production have
increased, and as such, and the functions of the state have developed in an interconnected

56
manner it has become all the more necessary for the state to supervise the various public
economic organizations, which ought not to be controlled and exploited for personal interests by
a minority of individuals. Here, it is the responsibility of the state to intervene in every important
economic organization with the intention of supervising and taking over it if this is what is
demanded for the common good. Among the most important of these organizations are those
related to public resources, energy sources, weapons manufacturing, marine and air
transportation, and any others that are required by the public weal and must hence be under the
direct supervision of the state.
The State’s Responsibility to Public Money
The state represents the legal personality that is responsible for protecting the public weal,
and as such, all the affairs of the state must connected to the interests of the public, which are the
true measure of legitimacy by which all the state’s actions are held to account. As for the ruler, he
is the person with whom the final decisions ultimately rest, for he is considered to be the most
eligible candidate for running the state’s apparatus, and he charges from its wealth for his work
what is sufficient enough to relieve him of any other duties, and it is forbidden to him to misuse
the funds of the public treasury or take from it as he wills because this is the wealth of the
people, meaning it can only be spent in meeting its interests.
This is the opinion of Islam on the head of state, and as such it is impermissible to for him
to set for himself any special privileges, unless these are in line with what is absolutely
necessitated by the public good. Indeed, Islamic society during the era of the Rightly Guided
Caliphs, which is the golden age that best represented the nature of Islamic rule, was greatly
affected by this objective perspective on the ruler, as the ruler used to take himself to account
first, while finding no qualms with the public’s taking him to taskand encouraging and praising
such vigilance, which he considered to be a healthy manifestation in society.
A man said to ʿUmar b. al-Khaṭṭāb, “O Commander of the Faithful, if you only spent more
on yourself from Allah’s wealth, the Most Exalted.” So ‘Umar said to him, “Do you know what
the similitude of them and I is? It is as the example of a people who are traveling, and they

57
gathered from them some money and confided it with someone to spend on them, so is it
permissible for such a man to appropriate the money to himself and keep it from them?”
The first Caliphs were not merely satisfied with taking themselves to task with regards to
the state’s wealththat was entrusted to their disposal, but they also held their governors and
workers to account for the wealth that they were entrusted with, and if they found that any of
them had used their positions to advance some material gains or to generate wealth through
unlawful means, they would either seize this wealth in whole or in part and return it to the public
treasury for the benefit of the public . . The righteous CalpihʿUmar b. ʿAbd al-ʿAzīzincarcerated
one of his governors, Yazīd b. al-Mahlab, because he failed to return the money in his
possessionto the public treasury, and he told him concerning this, “It is the right of the Muslims.”
The responsibility of the state to providing social security: As we have seen, the
primary function of the state is to protect the interests of society, and among the most important
of these interests that is most urgently needed is the provision of a social security programby the
state out of its responsibility for the needy, the poor, the orphans, the unemployed, and the senile.
If we were to follow the premodern legal (fiqh) manuals we would find texts confirming
the Islamic perspective on the state’s obligation to provide all that relates to social security by
facilitating universal health care, welfare for the poor, thesenile, the orphans and abandoned
infants.
Here is a text from one of the premodern legal manuals, in which the author discusses the
expenses of the public treasury: “As for the fourth kind, he must spend on the medicine of the
poor and the ill and for their treatment, on theshrouds of the dead who are penniless, on
abandoned infants and for the blood money of their crimes, on those who are disabled from work
with no financial support, and other such examples, and it is the duty of the ruler (Imām) to
spend upon those for whom these rights are due.
The Islamic state used to also grant a specified allowance for infants from the public
treasury, whether they were from among the rich or poor, and ʿUmar b. al-Khaṭṭāb ordered on
someone to call upon the people and reassure them not to rush in weaning their infants, for every
infant in Islam was provided for. ʿUmar b. al-Khatṭṭāb also spoke with two of his workers in Iraq

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who had informed him of the surplus of wealth in their treasury there, and he said to them,
“Perhaps you overtaxed your workers with what they cannot bear, but by God if it is saved for
the widows of Iraq, it would suffice them such that they shall not need from any ruler after me.”
Islam has not sufficed itself with providing insurance for the poor among the Muslims but
has ensured that this duty of the state extends to non-Muslims as well, as we see in the letter of
Khalid b. al-Walīd to the people of Ḥīra when he made peace with them, where any old man who
was unable to work or had received an injury had his Jizya tax waived and was provided for from
the treasury of the Muslims for him and his children, as long as he lived within the abode of
Islam and the Ḥijra.
This is what is to be understood by social insurance in Islam, which is an honoured and

humanist vision in its general and comprehensive scope and which was by no means restricted to
the residents of the Arabian peninsula from among the Quraysh or others or to those of the
Muslim faith to the exclusion of others. Islam has made no distinctions between an indigenous
Arab inhabitant and an Arab resident from the farthest reaches of the Levant, Iraq, or Egypt
whose lands were liberated but has rather treated them equally in full accordance with Islam’s
humanist vision, which is the primary reason for why many inhabitants of these liberated lands
entered into Islam in waves, tasting its universal vision of justice, a sense of generous concern,
and humane treatment.
Today, after more than thirteen centuries and after all that has been achieved by our
modern societies of rights and freedoms, we must objectively ask ourselves: has the modern
citizen in any of the far reaches of the Earth been able to secure for himself all that the Islamic
state has been able to secure for its citizens, and have the colonial powers been able to secure for
their colonial subjects a small portion of what by contrast Islam was able to offer its liberated
lands? This is indeed the nature of Islamic civilization, and this is the secret of its greatness and
endurance, and this is why the colonial powers were eventually forced to leave their colonized
states in a state of rejection, while the people of the lands conquered by Islam were eventually
integrated into the Islamic fold, becoming full members of its society, speaking its language and
upholding its religion, looking favorably onthe generousand new thought of its civilization.

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The Islamic Ruling on Interest Based Transactions
The topic of interest-based transactions is among the most controversial topics that is likely
to generate much debate in our social gatherings due to the interconnectedness of our daily
transactions and their relationship to the banks that play a pivotal role in our contemporary
economic lives.
At this juncture, we cannot delve into this challenge in a manner that is able to address any
of its ambiguities without first addressing some basic principles and key points that can clarify
the details of the problem.
The Islamic Ruling on Interest (Ribā)
I do not believe that anyone can oppose the prohibition against interest (in Islam), for it is
clearly prohibited by an explicit text of the Qurʾān, and as such, this topic does not require any
further debate or disagreement since there is no room for any independent legal reasoning on the
intended meaning of the text.
Thus the point of contention is not over the prohibition of interest but is rather related to
what is intended by the word ribā (interest). So what is the prohibited ‘ribā’? If we are able to
define thisribāwith a comprehensive all encompassing definition we would be able to achieved
the desired result, however defining this term and knowing what is intended by it is by no means
easy, and scholars and jurists have persevered since the origins of Islam till the present day in
studying the topic of interest, and their disagreements historically were no different than what we
see today. Accordingly, we are in no need today of clarifying the ruling concerning interest, due
to the clarity of the ruling presented in the Qurʾānic text, where in God, the Most Exalted, states,
“While Allah has made trade lawful but has forbidden financial interest.” What we need instead
need to understand is the nature of banking transactions and which of these would fall under
ribā, and is hence prohibited, and which would fall under the default of permissibility.

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I admit from the start that no researcher in this topic is able to ascertain in an absolutely
definitive sense his conclusions given the vagueness of the relevant sources and proofs, for
though these proofs are definitive in terms of clarifying the ruling onribā, they are by no means
definitive when it comes to clarifying what is intended byribā; for had there been sufficient
clarity in its definition, there would have been no need for debate amongst the jurists since no
one would consciously dare to defy a definitive proof. For this reason, there ought to be a
specialized Islamic legal academy where scholars specialized in this topic are able to conduct an
objectivestudy that can reach the most accurate position possible, and it is only natural that there
would be no unanimous consensus (ijmāʿ) or agreement, given that consensus is impossible on
matters that are subject to legitimate differences of legal opinion. However, providing a scholarly
survey on this topic taking into consideration the nature of financial transactions today is more
likely to narrow the gap of disagreements amongst the specialists by clarifying the majority
position among them, in order that people may reach an agreed upon ruling with regards to their
daily financial transactions.
The proofs concerning the prohibition of interest: As we mentioned above, interest is

forbidden by a clear Qurʾānic text, and here we shall provide the relevant Qurʾānic proofs
concerning its prohibition in order to clarify the gradualism with which the Noble Qurʾānhas
sought to enforce its prohibitions, which is the same process with which the Qurʾān has
prohibited the consumption of intoxicants.
Interest is mentioned in four verses, once as a Meccan revelation and the other three in
Medina, which highlights Qurʾān’s concern with stamping out this detested transaction, which is
defined as an ugly form of exploitation that is rejected by the humanist spiritand from which
human nature flees. Thus, the first verse seeks to alienate interest and to clarify that is something
undesirable, while encouraging the payment of Zakat,which is rewarded many fold with Allah,
without the mention of an explicit prohibition. As the Most Exalted states, “Whatever you give
out with interest that it may grow in people’s money, does not grow with Allah. As for what you
give of Zakat, desiring with it the Countenance of Allah, suchare the ones whose wealth is
multiplied” [al-Rūm: 39].

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The next verse then came to rebuke the Jews who are described as taking interest, while
they were forbidden from it, and as eating the wealth of the people unjustly. Even though it still
did not explicitly prohibit interest up to this point, the general flow of the verse strongly hints at
the undesirability of engaging in interest, while preparing the human conscience for its eventual
prohibition. As the Most Exalted states, “For the transgression from the Jews, We prohibited
upon them some of the good things that had been previously lawful and for their deterring of
many people from the path of Allah and for their taking of interest, when they were prohibited
from it, and for their consumption of people’s wealth unjustly. And we have prepared for the
disbelievers amongst them a most painful punishment” [al-Nisāʾ: 160-161].
The third verse then came to prohibit compounded interest. As Allah, the Most Exalted,
states, “Oyou who believe! Do not eat of interest, compounded over and over, and fear Allah,
perchance you may succeed” [Āl-ʿImrān]. Had Islam sufficed itself with this verse, which only
prohibits compounded interest, some would be justified in arguing that what is prohibited is
compounded interest and not the simple interest rates, however, the fourth verse has decisively
precluded any room for disagreement by staunchly declaring its prohibition in His statement, the
Most Exalted, “Those who devour interest do not stand up except as the one has been roughed up
by the Satan with his touch. That is because they said trade is similar to the charging of interest,
but Allah has made trade lawful but forbidden interest. Whoever receives this admonition from
His Lord and desists shall keep what has already come to pass and his affair is with Allah, and as
for he who returns, then such are the People of the Fire, wherein they shall abide” [al-Baqara:
275]. As He states after this, “O you who believe! Remain conscious of Allah and cease whatever
remains of interest if you are truly believers. And if you fail to do so, then beware of war from
Allah and His Messenger, but if you repent, then you shall have back your principal; thus you
shall not wrong nor shall you be wronged” [al-Baqara: 278-279].
With this definitive text that is categorical and decisive, the ruling concerning interest is a
clear prohibition that is not subject to further doubts or confusion, given the clarity and
categorical nature of the proof.
There are many ḥadīth reports narrated from the Messenger, Allah’s peace and blessings be
upon him, all of which confirm the prohibition of interest in all its forms. Among these is what

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the noble Messenger has said in his farewell sermon: “Hence all interest obligations from the
days of ignorance shall henceforth be waived. Your capital is however yours to keep. You shall
not wrong nor shall you be wronged.” Among them also is his saying, may Allah’s peace and
blessings be upon him: “Allah has cursed the consumer of interest, its giver, the one who
witnesses it and the scribe who transcribes the transaction.”Furthermore, he said, “None shall
devour interest except that that his final outcome is scarcity.”
It is said concerning the reason for revealing its prohibition is that some of the Arab tribes
during the Age of Ignorance (al-jāhiliyya) used to deal in interest, and when Islam came and they
entered its fold, they disputed amongst themselves concerning the charging of interest. This
occasioned the revelation prohibiting all forms of interest, be it at a low or high rate.
Islam has thus rebuked the use of interest very strongly, and it has not merely sufficed
itself with its prohibition but has rather sought to warn those who engage in it with a severe
punishment, in a manner that strikes fear into the hearts and souls, threatening them with
destruction, war, and a horrible fate, addressing them with the words, “Be ware of war from
Allah and His Messenger” and “Allah wipes out interest.”
The Meaning Intended by the Prohibited Ribā
The word ribā is used to designate the excess or increase of something in general; thus, it
is mentioned concerning something that increases,or when a man enters in ribā, it means he has
gone into excess, and it may also be used to designate an additional amount, as in one who added
(arbā) to the fifty, i.e. he gave a little extra. Al-rabwa al-rabiya in Arabic is the elevated region.
From this literal sense, we see thatribā in the Arabic language consists of something in
excess, however, not everything in excess constitutes ribā because trade has some form of
surplus as well, which in this case is permissible. Thus, we must return to the meaning of ribā in
the technical sense of the Sharīʿa, and if we turn to the Qurʾān to understand this legal sense, we

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would find that the Qurʾān’s passages point to the prohibition ofribā without clarifying its
meaning, suggesting that what is prohibited is the ribā as it was understood by the people of the
Age of Ignorance and what was known to the people at that time. This is why the Companions
never asked the Prophet, may Allah’s peace and blessings be upon him, to clarify its meaning, for
they were content with how it was understood in their context as it was conventionally
understood by the people.
As for the financial transactions of today, are they considered similar to the ones that were
dealt with during the Age of Ignorance? And if the transactions of the people of that age are
characterized by the ugliness of their exploitation, can we say that bank deposits may be
characterized similarly in our day? There is certainly no doubt that any transaction today that
may considered as exploitative is to be regarded as prohibited, whether it meets the conditions of
interest or not. Thus Ribā according to Islam relates to conduct that contains the meaning of
exploitation, be it a debt or a sale, for the seller who exploits the need of the consumer by selling
something at a price that is exorbitantly above its original value is engaging in ribā(a murābī),
and the employer who makes use of his employ and rewards him with only half of his salary is
also a murābī. Thus ribā,in my opinion, is not simply restricted to the conventional
understanding of interest that pertains to financial loans but is rather more inclusive to
incorporate anything that carries the meaning of exploitation, even if it may appear as a
permissible exchange at first place.
There are some people who attempt to circumvent the rulings of the Sharīʿa and who deal
in interest based transactions, while cloaking the form of their transactions to appear as pure and
honorable. All such transactions may be counted as ribā because they signify ugly exploitation
and harm to he individuals and to society, whereas Islam never for once looks to the external
form and appearance of transaction, for what must be considered are the objectives, motivations,
and intentions behind them.
Investment in Islam

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Financial investments are indispensible to our contemporary age, and the need for them is
ever more urgent given the rapid population explosion that is reason for concern and that
continues to threaten humanity with famine, poverty and extinction due to the lack of sufficient
natural resources in meeting the needs of humanity, from one angle, and due to the detrimental
ways in which they are invested, from another. If only these natural resources that are at the
disposal of humanity were invested in accordance with the most advanced scientific standards,
they would surely be sufficient in meeting all the needs of all modern societies. Thus, it is
imperative that the standard of living is raised in our Arab societies in order that their natural and
human resourcesare enlisted together in accordance with the most advanced scientific
developments and raise the income levels in our countries and strengthen our economies such
that they are able to meet the aspirations of our people and nation.
Investment is therefore crucial to the wellbeing of all individuals and because it is the only
means for advancement in our contemporary context, and Islam has indeed encouraged
investment and hard work, granting workers a lofty and honorable station in society, favoring
them to the idle worshippers, as work in itself is an act of worship, one which reaps profits and
benefits.
Islam’s Encouragement of Work
If we return to the texts of the Noble Qurʾān and the pure Sunna, we would find that they
consistently affirm the importance of work, which constitutes the most important element of
productivity, even though Islam’s encouragement of labour came at a time when work consisted
primarily of menial crafts amongst the ancient nations, such as Romans and the Greeks. With its
emphasis on the importance of hard work and of the contribution of laborours, Islam was hence
able to alter the previous image of menial labour and to grant it the lofty station that it deserved
by making it praiseworthy, respectable and honorable.

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As the Most Exalted states, “And who is better in speech than the one who calls to Allah
and follows it with good works?” He also states, “And others who travel through the land
seeking the favours of Allah, and others who struggle in the cause of Allah.”
Many ḥadīths have been narrated from the noble Messenger that also affirm the value of
work, elevating the income that one makes with his own sweat and labour to the most honorable
of ranks, and he said concerning a man whose hand began to peel from his hard work, “This is a
hand that shall not be touched by the Fire . . .”
It is narrated that some of the Companions saw a man hastening to his work and said, “If
he were only so in the path of Allah.” The noble Messenger responded to them, “Do not say this,
for if he is seeking work (to provide) for his young child, then it is in the path of Allah, and if he
is seeking work to provide for himself, it is in the path of Allah, but if he is seeking work out of
ostentation and pride, then it is in the path of Satan” . .
The Prohibition Against Hoarding and Exploitation
From these texts, the Islamic position toward productive labour and toward investment,
which is very much needed in our day and age, becomes clear, and we are thus able to mention
certain points relating to the Islamic position on investment and wor. These points are as follows:
1. Islam’s very clear encouragement of labour because its benefits return to the individual and to
society, and the texts we have mentioned readily affirm this . .
2. Islam’s prohibition against hoarding wealth, which entails withholding money from playing its
positive role in society, and Islam has prohibited this because it is a source of harm to the
individual and society and because it reflects a greedy spirit, where money is viewed purely from
the perspective of self interest. However, wealth in Islam is but an instrument to securing the
wellbeing of all through its investment, spending on others, and through charity. . As the Most
Exalted states, “. .As for those who hoard gold and silver and do not spend of it in the path of
Allah, then inform them of a painful punishment; on the Day when they will be seared in the fire
of Gehenna, and their foreheads, sides and backs shall be branded therewith: ‘This is what you
hoarded for yourselves, so taste what you have hoarded.’”[al-Tawba: 34-35].

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3. The prohibition against exploitative investments: here we see the morality of Islamic legislation
in terms of its of its ability to relate legal rulings to the moral principles that are connected to the
public weal. It is prohibited for the investor to invest his wealth in anything that contravenes the
Sharīʿa or what is orthodox and customary. Thus, if one were to invest their wealth in
exploitative ways so as to actualize quick and generous profits, then such profits would be
unacceptable under Islam, and this is why Islam has prohibited that the investor engage in any
form of monopolization, becomes monopolies are an ugly form of investment, as it generates
harm to society. Similarly, Islam has prohibitedinterest because it carries an exploitative
meaning, as the one who loans the poor person who is penniless some money for some interest is
considered a sinner due to his exploitation of others’ needs
The Lawful Means of Investment:Islam has called for investing money in all the
productive means that are able to generate profits and develop the economy. However, it has
permitted some forms of investment and prohibited others. Thus, prohibited investments consist
of any investment that leads to any exploitation and harm, and if anyone chooses to invest his
wealth then he must supervise the means he has chosen for his investment and abide by the
condition that it not be associated with any harm to the other. Accordingly, the investment of
money through relying on interest, monopolies, or any form of harm to individuals, the society at
large, or the state is prohibited, as it is an exploitative form of investment that contravenes the
most basic of moral principles, which Islam has only come to secure and encourage.
As for permissible investments, these are any investments that are not connected to any
form of exploitation or harm, and Islam has encouraged such lawful investment, urging people to
partake in it because it is the means to securing the wellbeing of the individual and the state and
it is the path that leads to building a strong state that that is firmly established.
Islam has also mandated that all investments be shared fairly by all partners in terms of
their wealth and losses, their profits, financial choices, and effort, and any agreement that do not
stipulate this equal sense of responsibility is an unjust agreement according to Islam, and as such
it is prohibited, as for those agreements where both parties to the agreement bear equal
responsibility for any potential losses, these are considered legally acceptable and lawful.

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With this we can see why Islam has prohibited any investment where one party is fully
guaranteed the principal amount and any interest that is charged, while the other party bears full
responsibility for any potential losses, giving the first party a clear sense of security concerning
his or her principal and profit, while the latter’s fate remains tied to the vagaries of the market,
which may result in either loss or profit; such a scenariodoes away with the idea of shared risk,
which remains an essential feature of any investment.
The Islamic Alternative to Interest
Though Islam has prohibited has prohibited any investment that does away with the equal
share of responsibility between both parties to the agreement, it has paved the path for those with
the capital and those with the requisite competencies to establish investment agreements to invest
their capital and investment skills; those with the capital contribute with their money, while those
who have the requisite competencies contribute with their skills and effort, and the profits are
then shared in accordance with what both parties have agreed upon.
This type of agreement is called “al-muḍārabawalqarāḍ” (lsilent partnership and loaning)

in Islamic law, and it means that the parties to an investment agreement are to share in the
material, physical, and mental contribution on the understanding that the profits are split in
accordance with agreed upon percentages for each. Such an agreement without a doubt would
actualize fairness in its most refined sense, while providing the worker with the necessary
material incentive to work hard, as it motivates him to contribute more knowing that he has a
share in the profits and that a portion of this profit shall be his.
The Muslim jurists have the defined a “mudāraba” agreement as follows: it is an

agreement where one party contributes with his money and the other with his work.” Others have
defined it as, “An agreement consisting of an authorization by a capital owner to a partner to
invest his money with the understanding that the profits are shared between the two.”
The word mudārabais taken from al-ḍarbfilarḍ, which meansto travel the land, which is
understood to mean traveling for the purpose of trade, as can be seen in the statement of the Most

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Exalted, “And others who travel the land (yaḍribūnafilarḍ).” The Ḥanafī jurists have thus taken
the term “mudāraba,” which was in common use in Iraq, whereas the jurists of the Shafiʿī school
used the term “qarāḍ” (loaning), which comes from qarḍ and literally means to sever, as if to say
that the one with the capital has severed a portion of his wealth to give to his partner. Also,
qarāḍis derived from equivalence (musāwāh) and balancing (muwāzanah), as if to say each of
the two parties aims to share his contribution either through the financing or through the work.
There used to be a number of Companions who used to deal in mudārabaagreements,

because this type of partnership actualizes true benefits to those with the capital and those with
the skills; it may be that those with the capital may not have the requisite skills or entrepreneurial
abilities, whereas those who are skilled may not have the required capital to work with. Thus,
affirming this type of agreement and partnership is bound to actualize its benefits for both parties
in a manner that guaranteed and that is free from exploitation or inequity.
The wisdom in Islam’s affirmation of this type of investment lies in the fact that
irrespective of the guarantees that may be give, investments will always remain by their nature
risky endeavors that are subject to losses. It would thus be inequitable to expect the party
exerting most of the effort to also bear full responsibility for any losses that may be incurred,
while the party owning the capital that barely exerts any of the effort is guaranteed his full
principal and its associated profits . . For this reasons, it is only right that both partners share in
the risk by bearing brunt of any losses that may accrue, with the understanding that any profits
are also shared.
The Importance of Establishing an Economy that is in Harmony with the Islamic Creed
Some people may be of the opinion that establishing an Islamic system with regards to the
economy and finances means to permanently seal the banks closed and to do without them all
together, as they are held to go against the Islamic teachings that prohibit interest. But since these
institutions play a tremendous role in our economic lives, then partaking in such an Islamic
system could only lead to the total collapse of commerce and of our political, economic, and
financial orders as we know them.
We are able to respond to this concern with the following:

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First:Islam never sought to prohibit the establishment of financial and economic institutions that
provide the development role that is provided by the banks, for these institutions are vital, and
they play a crucial role that we cannot do without
Second:Why must we assume that these types of institutions are the best types of institutions
that can never be improved upon in the manner that is likely to secure a greater good for our
Ummah? And must we assume that it is impossible for humanity to conceive of any other option
from the current one that is more secure and that is more likely to guarantee greater economic
independence for our nations?
Third:Why don't we consider the possibility for argument’s sake that the current economic and
financial order today has been setup in a particular manner that is dedicated to ensuring the
continued prosperity of developed nations and the continued underdevelopment of developing
nations? Is it notthe right of the developing nations of Africa, Asia and Latin America to ask
themselves, at least during the times of ease, about the reasons that continue to hinder their
development despite the tremendous abundance of their resources, while the developed nations
that are endowed with fewer resources continue to leap forward in their progress and grow much
richer?
There is no doubt that the current global economic order, which we continue to treat as
beyond criticism and which is not necessarily the final and brightest possibility and the most
beneficial system, may be in fact what is best for other nations, however, it is not what is best for
our societies, which cannot perceive its latent dangers due to the brilliance of its appearance.
Fourth: Our Arab societies today have changed significantly from their past, and they now
possess enough oil reserves and other natural resources that allow them the opportunity to rebel
against the global economic order, while the greedy motives of advanced nations means that they
would never hesitate to deliberately deprive our Ummah of the true value of its abundant
resources in the international banks by means of decreasing the value of major currencies or by
means of inflation.

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And with this we conclude by saying that our Arab societies today are in dire need to re-
evaluate their position vis-à-vis the global economic order that without a doubt is directly
opposed to the interests of our Ummah, and the problem is by no means restricted to the gloomy
image that has been associated with the use of interest but rather extends to the very nature of the
economic order, which is at its base a monopolistic, exploitative and greedy system that serves to
perpetuate our backward reality and that plunders our national resources through the manufacture
of successive financial crises, while we continually pant in desperation as werush to treat their
detrimental consequences that are harmful to our most vital interests.
New Lecture
Code of Ethics
Code of Ethics and Professional Conduct Sample Template:
1. Be inclusive.
We welcome and support people of all backgrounds and identities. This includes, but is not
limited to members of any sexual orientation, gender identity and expression, race, ethnicity,
culture, national origin, social and economic class, educational level, color, immigration status,
sex, age, size, family status, political belief, religion, and mental and physical ability.
2. Be considerate.
We all depend on each other to produce the best work we can as a company. Your decisions will
affect clients and colleagues, and you should take those consequences into account when making
decisions.
3. Be respectful.
We won't all agree all the time, but disagreement is no excuse for disrespectful behavior. We will
all experience frustration from time to time, but we cannot allow that frustration become

71
personal attacks. An environment where people feel uncomfortable or threatened is not a

productive or creative one.
4. Choose your words carefully.
Always conduct yourself professionally. Be kind to others. Do not insult or put down others.
Harassment and exclusionary behavior aren't acceptable. This includes, but is not limited to:
 Threats of violence.
 Insubordination.
 Discriminatory jokes and language.
 Sharing sexually explicit or violent material via electronic devices or other means.
 Personal insults, especially those using racist or sexist terms.
 Unwelcome sexual attention.
 Advocating for, or encouraging, any of the above behavior.
5. Don't harass.
In general, if someone asks you to stop something, then stop. When we disagree, try to
understand why. Differences of opinion and disagreements are mostly unavoidable. What is
important is that we resolve disagreements and differing views constructively.
6. Make differences into strengths.
We can find strength in diversity. Different people have different perspectives on issues, and that
can be valuable for solving problems or generating new ideas. Being unable to understand why
someone holds a viewpoint doesn’t mean that they’re wrong. Don’t forget that we all make
mistakes, and blaming each other doesn’t get us anywhere.

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Instead, focus on resolving issues and learning from mistakes.
What to Include Your Code of Ethics and Professional Conduct:
A code of ethics and professional conduct consists of four key sections detailed below. You can
cover all of them in a short summary Code of Ethics and Professional Conduct as we have above,
or expand on them in detail so employees are clear on how to handle many common situations.
1. The work environment.
Employees should act with integrity, comply with laws, maintain a professional work
environment and comply with company policies. They should treat customers, colleagues, and
partners ethically at all times.
Work Environment Code of Conduct Topics:
 Equal opportunity.

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 Discrimination and harassment.
 Violence policy.
 Safety policy.
 Substance abuse.
 Gambling policy.
 Privacy policy.
 Misconduct explanation and policy.
2. Conflicts of interest.
A company's reputation depends on the actions and integrity of its employees. It is essential that
they avoid relationships and activities that hurt, or appears to hurt, their ability to make objective
and fair decisions.
Conflict of Interest Code of Conduct Topics:

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 Corporate asset contributions.
 Running for public office.
 Insider trading and financial interests.
 Investments in companies employees do business with.
 Employee political interests.
 Significant financial interests in other companies.
 Securities transactions.
 Taking out loans.
3. Protecting company assets.
Employees should always act to protect company assets, including physical, intellectual, and
electronic or digital properties.

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Company Assets Code of Conduct Topics:
 Preparing, maintaining, and disclosing accurate records.
 Information security.
 Protecting communication and information technology systems.
 Protecting external communications.
 Use of company property.
 Use of property owned by others.
 Facility security.
 Protecting intellectual property.
4. Anti-bribery and corruption.
A company's integrity is essential for maintaining trustworthiness and reputation. Employees

should always do their work fairly, honestly, and legally.

76
Anti-Bribery and Corruption Code of Conduct Topics:
 Doing business with governments.
 Choosing and maintaining service providers.
 Receiving gifts and entertainment.
 Loans, bribes, and kickbacks.
 Relationships with former employees.
 Obligations of departing and former employees.
 Interaction with competitors.
 Relationships with affiliates, international entities, and customers.
5. Attendance and punctuality.

77
Employees are expected to be regular and punctual in attendance. This means being in the office,
ready to work, at starting time each day. Absenteeism and tardiness burden other employees and
the company.
6. Absence without notice.
Employees who are unable to work due to illness or an accident should notify their supervisor.
This allows the company to arrange for coverage of their duties and helps others continue to
work in their absence. If an employee does a report for work and the company is not notified of
an employee's status for 3 days, it is typically considered a job abandonment.
7. General harassment and sexual harassment.
This company is committed to providing a work environment free of discrimination and

unlawful harassment. Actions, words, jokes, or comments based on an individual’s sex, race,
ethnicity, age, religion, or any other legally protected characteristic are not tolerated.
8. Cell phone use at work.
Personal cell phone usage during work hours is discouraged, except in extreme cases such as an
emergency.
9. Dress code.
A professional appearance is important when employees work with customers or potential

customers. Employees should be well groomed and dressed appropriately for the business and
for their position.
10. Substance abuse.
The manufacture, distribution, possession, sale, or purchase of controlled substances of abuse on

company property is prohibited. Being under the influence of illegal drugs, alcohol, or
substances of abuse on company property is prohibited. Working while under the influence of
prescription drugs that impair performance is prohibited.

78
11. Tobacco products.
The use of tobacco products on company property, outside of permitted areas, is specifically
prohibited.
12. Internet use at work.
Employees may use the Internet when appropriate to access information needed to conduct a
business company business. Use of the Internet must not disrupt or injure the company computer
network. Use of the Internet must not interfere with an employee's productivity.
How to Write a Code of Ethics and Code of Conduct:
1. Review your mission statement and core values.
The goal of a code of ethics is to help employees make decisions that are in line with what the
company or organization values. This should be distilled into your mission statement and core
values, so it's a good place to start.
2. Talk to stakeholders.
What do management, employees, and clients think are the most important values of the
company to uphold? Get input from everyone involved to be sure your code reflects what the
company stands for. You can have them all look at a code of conduct template to get ideas for
how their own might look like.
3. Review past ethical issues.
Where has your company faltered with ethics in the past? Where has it shined? Call attention to
problem areas and reinforce the strengths you already have.
4. See where other companies have faltered.
Have other companies in your industry had recent ethical failures? Avoid the same pitfalls by
covering these issues in your code.

79
5. Create a draft code for input and discussion.
Give everyone a chance to help decide on the contents of the code of ethics by inviting them to
discuss and give input on a draft.
6. Create a final draft and share it.
Once you've got a final draft approved, share it throughout the organization. Also, make sure that
a copy of it is added to your employee handbook.
Code of Ethics and Professional Conduct Examples:
Employees of Alphabet and its subsidiaries and controlled affiliates (“Alphabet”)

Alphabet should do the right thing – follow the law, act honorably, and treat co-workers with
courtesy and respect.
No matter what job you do or where you do it, you are Hershey. Think about that as
Hersey you watch over every business relationship, every transaction, and every product,
and make sure your actions always reflect our values.

80
Starbucks empowers all partners to make decisions that impact our reputation.
Individual actions at work shape how the world views Starbucks, which is why it’s
Starbucks
so important that we each take responsibility for Our Starbucks Mission and acting
ethically in all situations.
Make the Right Call. It’s as simple as it sounds. Whenever you’re faced with a
Under
decision—big or small—always do what you know is ethically right, and, of course,
Armour
always follow the law.
We know that bigness is not our strength, best is our strength. Bureaucracy is an
Verizon
enemy. We fight every day to stay “small” and keep bureaucracy out.
Is a code of ethics really important for your business to have? At what point should you get one?
You may be wondering this, especially if you work for a smaller business or organization.
The Importance of a Code of Ethics:

81
A code of ethics is important because it helps employees or organization members make

decisions that are in line with company values in the absence of a clear rule or direct supervision.
A code of ethics can improve decision making at a business, and make it easier for employees to
be autonomous.
FAQs:
What are the five codes of ethics?
 Integrity.
 Objectivity.
 Professional competence.
 Confidentiality.
 Professional behavior.
Why does a project manager need a code of ethics and professional conduct?

82
A code of ethics is important because it helps employees or organization members make

decisions that are in line with company values in the absence of a clear rule or direct supervision.
A code of ethics can improve decision making at a business, and make it easier for employees to
be autonomous.
Learn about the importance of a Code of Ethics.
What is a Code of Conduct with example?
A professional Code of Conduct is an official document that clearly defines how a company's
employees should behave in the workplace on a day-to-day basis.
Check out this free sample of a Code of Ethics and Professional Conduct.
What is the difference between a Code of Ethics and Code of Conduct?
A code of ethics is broad, giving employees or members a general idea of what types of behavior
and decisions are acceptable and encouraged at a business or organization. A code of conduct is
more focused. It defines how employees or members should act in specific situations.
What are the three main categories or types of codes of ethics?

83
 Duties to clients and customers.
 Duties to the public.
 Duties to company.
What is included in a code of ethics?
This depends on your business policies and industry. Generally, a code of ethics should include
the six universal moral values, where you state that you expect an employee to be trustworthy,
respectful, responsible, fair, kind and good citizens. Honorable mentions include adding that
your business celebrates diversity, green practices, and proper dress codes.
What is a written code of ethics?
A code of ethics helps to guide ethical behavior in the workplace. Anytime an employee or group
of employees need to make a decision, they can refer back to the code of ethics. The code of
ethics also communicates values and expectations to new employees.
See our template.
Is a code of ethics required by law?
It depends on your business. However, many businesses are required to establish a code of
ethics.
Can I combine my company's code of conduct and code of ethics?
Yes, in most cases businesses will combine both of these documents into one as there is
significant overlap between them. It is rare to find businesses that have two separate policies.
Whilst they are technically different documents, employees will have less difficulty recalling
important points around conduct and ethics if they have a single document to refer to.

84
What are some examples of a code of ethics?
 Alphabet - Employees of Alphabet and its subsidiaries and controlled affiliates

(“Alphabet”) should do the right thing – follow the law, act honorably, and treat co-
workers with courtesy and respect.
 Hershey - No matter what job you do or where you do it, you are Hershey. Think about
that as you watch over every business relationship, every transaction, and every product,
and make sure your actions always reflect our values.
 Starbucks - Starbucks empowers all partners to make decisions that impact our
reputation. Individual actions at work shape how the world views Starbucks, which is
why it’s so important that we each take responsibility for Our Starbucks Mission and
acting ethically in all situations.

85
 Under Armour - Make the Right Call. It’s as simple as it sounds. Whenever you’re faced
with a decision—big or small—always do what you know is ethically right, and, of
course, always follow the law.
 Verizon - We know that bigness is not our strength, best is our strength. Bureaucracy is
an enemy. We fight every day to stay “small” and keep bureaucracy out.
How is the code of ethics different from a code of conduct by definition?
A code of ethics, or professional code of ethics, is usually a set of general guidelines or values. A
code of conduct policy is typically more specific, giving guidelines for how to respond in certain
situations. A code of conduct example would be a rule expressly prohibiting accepting or offering
bribes.
New Lecture
Unethical Practices
Unethical behavior in business runs the gamut, from simple victimless crimes to huge travesties
that can hurt large numbers of people. Whether it is stealing a pen, padding an expense report,
lying to avoid a penalty or emitting toxic fumes into the air, unethical behavior cannot be
condoned by a company. A strict ethics policy is the cornerstone for any business that wants to
maintain a good reputation.
Theft at the Workplace

86
Theft at work comes in a variety of forms, and oftentimes employees do not view it as unethical
behavior, believing no one gets hurt by the action. Employees take home office supplies, use
business computers for personal tasks, pad expense accounts and abuse sick time or allotted
personal days.
Unethical behavior also includes having another employee punch a time card, or not punching
out for lunch hours or other nonapproved time off. Though these may seem like minor
infractions, they eventually have an impact on the bottom line of the company, which then hurts
all employees. Theft also affects employee morale and is disheartening to those who choose to
behave ethically.
Gifts from Vendors
Businesses that buy from and sell products to other businesses are sometimes subject to unethical
behavior. The practice of accepting gifts from a vendor in exchange for increased purchasing is
not only unethical, it may have legal repercussions. The same can be said for offering a customer
kickbacks to increase his purchasing habits.
Ethics policies often contain guidelines for giving or accepting gifts with vendors or other
business associates, such as a cap on the value of the gift. Other businesses strictly forbid giving
gifts or any other item with monetary value. This is a safeguard to prevent any perception of
unethical behavior.
Bending the Rules
Bending the rules in a business situation is often the result of a psychological stimulus. If an
employee is asked to perform an unethical task by a supervisor or manager, he may do it because
his allegiance to authority is greater than his need to abide by the rules. Turning the other way to
avoid trouble for another employee is still unethical, even though the motivation may be
empathetic.
For example, knowing that a coworker is having issues outside work justifies watching him leave
early each day without reporting it. Withholding information that can change an outcome also

87
falls under the umbrella of unethical behavior, even if the perpetrator believes he is doing what is
in the best interest of the business. For example, if a poor earnings report is withheld until after a
stockholder meeting.
Environmental Impacts and Risks
Unethical behavior by companies, such as releasing pollutants into the air, can affect cities,
towns, waterways and masses of people. Though accidents can occur, the release of harmful
toxins into the environment due to lax safety standards, improper maintenance of equipment or
other preventable reasons is unethical. If a business willingly continues production of a product
knowing inherent environmental risks exist, it can certainly be categorized as unethical behavior.
Wages and Working Conditions
Other unethical practices include not paying workers a fair wage, employing children under the
legal working age and unsafe or unsanitary working conditions. Any practices that are not in
compliance with fair labor standards and federal working guidelines fall into this category.
New Lecture
Islamic State
THE ISLAMIC WELFARE STATE:
Abstract
The natural worth of anything consists in its fitness to supply the necessities and serve the
conveniences of human needs. Welfare state always strives to put in place the necessary impetus
that will ensure the material and spiritual wellbeing of people in its domain. Islamic Welfare
State (IWS) mould the social, economic, cultural and political engagements as a complementary
whole guided by the basic principles (Sharia), to establish a society where justice, equity and
economic prosperity are prominent, as well as rape the benefits of this life and the next. This
paper seeks to examine the interrelationship between the political and economic contents of the
Islamic way of life and discusses the nature and functions of the Islamic State toward peoples’

88
wellbeing in the light of basic imperatives (principles) within the framework of financial
constraints.
Introduction
It is all said and done the efficacy of Islamic Welfare State, is to surrender Maslaha (public
welfare) to its people. Islamic economics strives to ensure the necessary mechanisms and
imperatives are put in place with Shari’ah guidance to achieve material and spiritual welfare of
the people (Chapra, 2002). Islam has a set of goals and values encompassing all aspect of human
life including social, economic and political. Since all aspects of life are interdependent and the
Islamic way of life is a consistent whole, its goals and values in one field determine the goals and
values in the other fields as well.
Ensuring Islamic Welfare State (pre-conditions)
The basic imperatives or pre-conditions for ensuring Islamic welfare state are;
a. Authority and Organization (the state)
Islam condemns anarchy and disorder in society. Therefore, the Qur’an (2:205) and the Sunnah
of the Prophet (PBUH) stressed the need for organization and authority in the Muslim society.
This stress is also vividly reflected in several statements as well as actual behavior of his
companions and in the ideals of Muslim Jurists. Umar, the second caliph (R.A) emphasized that
“there could be no ideal society without an imam (sovereign) and there could be no imam
without obedience (Al-Tantawi, 1959).” Shafi’i, the famous jurist recorded the mood of his age
(150-204 A.H.) by stating that; “there is ijma (consensus) among Muslims scholars that there
must be a caliph (Imam) in a Muslim society.” Likewise Ibn Hanbal stressed that; “the absence of
an imam could only result in disorder.” Ibn Khaldun emphasized that “the institution of caliphate
is a shari’a obligation and that Muslims are obliged to establish and maintain it.” Similar
opinions were expressed by Ibn Taymiyah, Shah Wali-Allah and a number of other scholars.
Thus, the state is viewed by Islam as an instrument for the realization of the ultimate goals,
spiritual and material, of the Islamic society. Such an attitude toward the state is quite natural
since Islam advocates certain goals and ideals that would be difficult to realize without a value,
and goal oriented state. This idea was expressed beautifully by the famous Muslim poetthinker

89
Muhammad Iqbal (d.1938) when he stated, “the state according to Islam is only an effort to
realize the spiritual and material pursuit in human organization.” However, the authority
exercised by the state is not absolute, it is a trust from God and it is to be exercised in accordance
with the terms of the trust as laid down in the Shari’a.
b. Mutual Consultation (Democratic Orientation)
Authority and organization should be exercised in a democratic passion as opined in the Qur’an;
“And consult them in affairs” (3:159), “And they conduct affairs by mutual consultation”
(42:38), “Sovereignty is for none but God.” (12:40), “Is it not His to create and to govern.”
(7:54). Shari’ah as a divine law regards God as the sovereign and when this principle is
recognized by the people, the authority for its establishment resides in the hands of the general
public and is to be exercised in the light of the Qur’an and Sunnah through the democratic
process of consultation with the Ummah or its rightful representatives.
c. Welfare Commitment
It is mandatory for Islamic state to foster good life and welfare to its people. The Qur’an clarify
that, “the mission of the Holy Prophet is defined to be a merciful blessing (rahmah) for all
mankind (2:107). Some manifestation of these merciful blessing are stated vividly in the Qur’an.
These include, among others, fostering of “good life” (hayah al-tayyibah) and “welfare” (falah),
provision of ease and alleviation of hardship, generation of prosperity, nurturing a climate of love
and affection, and ensuring freedom from moral corruption, hunger, fear and mental tension.
Hence, all institutions including the state, should reflect a character of the merciful blessing, and
cater to welfare of everyone.
However, the welfare function of Islamic state was particularly stressed by Prophet
Muhammad (P.B.U.H) when he stated: “Any ruler who is responsible for the affairs of Muslims
but does not strive sincerely for their wellbeing will not enter Paradise with them (narrated by
Muslim, 1:126)”. Welfare is incompatible with Islamic state and it should be the driven force
guiding its policies and programs. The companions of the Prophet appreciated this welfare role of
the Islamic State as is evidenced by numerous utterances of the early caliphs and their

90
instructions to their governors. Umar (R.A), wrote to Abu Musa, once a governor of a province:
“the best man in authority is he under whom people prosper, and the worst among them is he
under whom people encounter hardship (Abu Yusuf, AH 1332).” Muslim jurists have all
unanimously held that the catering to the welfare of the people and relieving them from hardship
is the basic objective of the Shari’a and hence, of the IWS (Chapra, 2002). The evidences in the
Qur’an and Sunnah and the writings of Islamic scholars on the welfare functions of the IWS is so
overwhelming that it would be absolutely unjustified not to perceive Islamic State (IS) as a
“welfare state.”
d. Welfare Strategy
The strategy for ensuring welfare in Islam is by harmonizing the spiritual and material pursuit of
life. All human efforts whether material (economic), social, educational, scientific goals are
spiritual as long as they conform to Shari’ah injunctions. In Islamic state, the basis of Shari’ah is
wisdom and welfare of people in this world and the hereafter. The concept of welfare can neither
be exclusively worldly, nor purely in the hereafter but rather complementing both to achieve the
maximum welfare in this life (material) and the next life (spiritual). This is of course a general
indication of what is implied by welfare in Islam. More specific positions have been taken by the
Shari’ah on many issues, to be precise, welfare of individuals in an IS can be realized if there is a
conducive (proper) environment for a fuller realization of Islamic spiritual values in the minds of
people as well as the society, and adequate fulfillment of all basic material needs of life
(education, food and clothing, suitable job, comfortable housing, generally healthy environment,
and adequate transport facilities).
The fulfillment of these spiritual and material needs of individuals and society would necessitate
the playing of a vital role by the state in the economic system of Islam. Nevertheless, it must be
stress here that it is basically the moral responsibility of individual to cater for his own needs
through his own volition and effort. Islam categorically condemns begging and sloth while
placing great stress on hard work. The Prophet (PBUH) said: “beg not anything from people.”
And “A man has not earned better income than that which is from his own labor” (Narrated by
Abu Dawud, 1:382). Also, Umar (RA) the second caliph emphasized hard work by saying: “no
one of you should stay away from seeking livelihood and say “O God! Give me sustenance’ for

91
the sky will not rain gold and silver, and seek of the bounties of God and be not a burden on
others.”
e. Spiritual Uplift
This constitutes moral values, ethical connotations, individual freedom, love and affection, and
mutual help. It is the duty of the IS to ensure the moral health of its people not necessary by
coercion but through education, training and creation of homes for younger generation imbibed
with the teachings of Islamic moral norms and enforcement of Islamic values as well as
prescribed penalties for violators.
Functions of Islamic Welfare State
Some of the functions of the IS with respect to the economy in achieving welfare objectives are
stated as follows;
1. To alleviate poverty, ensure full employment and encourage economic growth; this is
achieved through appropriate planning in altering current economic situation for a predetermined
objectives. Also, physical infrastructures such as roads, hospitals, communication networks,
airports, bridges and dams as well as other structures to stimulate economic growth.
2. To ensure macroeconomic stability, more specifically the real value of money; Islamic
welfare state follows the general principle of justice and honesty in measuring the value of
commodities and money. Market forces left alone to determine value is not humane because
extremes on either supply or demand may occur. Through appropriate measure of monetary,
fiscal and income policies with direct control of money value, wages, prices and income
distribution.
3. Protection of life and property (law and order); Islamic state through the divine mood of
the Shari’ah must strive to maintain law and order within its jurisdiction, so that properties and
lives of the citizenry are protected for their welfare. The prophet (P.B.U.H) emphasized on the
importance of security and stability in the society and condemns any threat on the people’s peace
and mindset.
4. Justice; it is the duty of the Islamic state to induce fair play within its boundaries without
any discrimination. As the prophet (P.B.U.H) opined: “Between Muslims there are no races and
no tribes, the best among you is he who must regards God, think deeply about what I said”.
When it

92
comes to relationships, Islamic state should ensure justice to all people rich or poor, white or
black and ruler or the ruled etc.
5. Social security and equitable distribution of income; Islamic state should provide avenues
for welfare packages inform of unemployment benefits, insurance against occupational hazard,
old age pension, assistance to those who are disable (physically or mentally). However, Islam
believes in distributional equity so the state should stick to this rule through just remuneration,
creating incentives for entrepreneurship and intensifying wealth distribution through the system
of zakah and other institutions based on “Halal” and “Haram” codes.
6. International relations and national defense; the core responsibility of the Islamic state is
to uplift the spiritual and material wellbeing of its people. If resources permit, it should provide
assistance in deserving countries. As it relate with other countries, the state co-operates in
promoting righteousness and piety at the expense of sin and aggregation. This is because Islam
endures universal brotherhood and co-operation.
On defense, the state while working for peace it should strengthen its defense to prevent
any threat against its faith, resources and territory. This is achieved through preparedness in both
material and men, including; military services, training, economic diversification, moral building
and collaboration with other Muslim states.
Financing Welfare in as Islamic State
Islamic welfare state need finance to live up to its obligations, to this end it mobilize
resources/funds through various sources in accordance with the Shari’ah. The sources are:
1. Zakah; Islam obliged the payment of zakah by those who capable to pay. The zakah funds
are disbursed to the needy and deserving people. Collection of zakah and its disbursement is the
duty of the Islamic state to ensure the welfare of the people.
2. Income from natural resources; resources provided by God varies in quantity from
country to country. Their exploitation either by the state or private individuals presupposed
efficiency which will encourage the mobilization of funds for financing welfare.
3. Taxation; as Allah said: “So distribute taxes among all people with justice and equity, and
do not levy on any one a tax beyond his capacity”. From this view, a progressive tax conforms to
the provision of Islam for mobilizing funds in Islamic state to finance welfare. This will ensure
social justice and equitable distribution of income.

93
4. Borrowing; this will serve as the last option for Islamic state in mobilizing funds to
finance welfare. It should be interest free loan either through Qard Al-hasanah or other modes of
finance prescribed by the Shari’ah. This can be obtained from Islamic banks, private individuals
and some Muslim states.
Islamic welfare State, “Ideal” or “Richest”
Islamic welfare state is an ideal state which strives to improve the spiritual and material
wellbeing of its people with available resources at its disposal. Ideal as used here, emphasize on
(a) spiritual uplift of human society with minimal moral laxity and corruption (b) general
economic welfare with available resources (c) distributive justice and equity with the absence of
exploitation.
On the contrary, rich state is the one with available stock of wealth and resources more
than its needs. But this does not qualify it to be ideal, unless the resources are harnessed to the
optimum in ensuring the spiritual and material welfare of its people. For example, Nigeria is a
rich state but not “ideal”.
Individual Freedom (Nature and Identity)
The whole process of welfare revolves around the framework of individual freedom. The Qur’an
and the Sunnah emphasized on individual freedom inform of human personality, self esteem and
values. The freedoms of enterprise and profit making are given prominence in Islam like
capitalism but with moral constraints and subject to consideration of public interest. Individual
freedom serves as the identity of Islamic welfare state and at the same time it should not be in
conflict with public interest as the general principle of welfare provision in the state.
Islamic Welfare State, Capitalism and Socialism
Capitalism and socialism are all secular ideologies and morally neutral. Mixed capitalism
emphasized freedom of enterprise, minimal state intervention and zeal for accumulation of
wealth. Socialism emphasized equality of people in the distribution of income based on the
principles of dialectical materialism. By implication, the former ideology lacks morality, justice

94
and equity while the later remain passive on individual freedom and incentives and hard work.
In contrast, IWS is neither capitalist nor socialist because it has its own unique guiding
principles, values, goals and identity where individual freedom of enterprise and public interest
working simultaneously to achieve the general welfare (spiritual and material) of people.
Moreover, Islam is fully committed to human brotherhood with social and economic justice,
equitable distribution of income and individual freedom within the context of social welfare.
Although, both capitalism and socialism preached equitable distribution of income, in capitalism
this recognition is an outcome of group pressure, while in socialism it is accompanied by
negation of individual freedom. Islam achieves this equity within the framework of individual
freedom with spiritual and legal imperatives to safeguard public interest, moral constraints
against unearned income, and social obligations to ensure a just distribution of income and
wealth hence, IWS bears no resemblance to any other form of state.
Conclusion
It is clear from the above that, the IWS is unique in ideology, superior in operations, exceptional
in strategies and all-encompassing in affairs. With necessary imperatives put in place, the policy
trust of IWS is anchored towards creating an environment for the realization of human welfare
(spiritually and materially) through Shari’ah provisions (Qur’an and Sunnah). Moreover, there is
a complete integration of economic, social, political and cultural spheres of life towards
achieving good life in this world and the next.
THANX FOR READING

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1

DIARY BUSINESS AND ISLAMIC ETHICS

Business Ethics 181950005

Ethics and Business

History of Business Ethics

Business Ethics 181950005

Business Ethics 181950005

Business Ethics 181950005

Islam and Business Ethics

Business Ethics 181950005

Business Ethics 181950005

Forbidden businesses in islam

Business Ethics 181950005

iv. Animal products whose method of slaughtering is unknown or doubtful:

(b) From a non-Muslim:

• if there is a probability of Islamic zibh: it is permissible to trade in them;

• if there is no probability of Islamic zibh: it is not permissible to trade in them.3

3. Other ‘Ayn Najis

4. Hoarding Common Food Items

Business Ethics 181950005

5. Tools and Machines for Haram Purposes

However, there is no problem in dealing in machines of dual- or multi-purpose nature which

Allah means The One God.

Business Ethics 181950005

‘Allah’ represents purity of Islamic monotheism

Business Ethics 181950005

Business Ethics introduced in Islam

What Quran says

Business Ethics 181950005

Business Ethics in Islam

Business Ethics 181950005

What is forbidden in business in Islam?

Business Ethics 181950005

Business Ethics 181950005

� Be honest and truthful

� Keep one’s word

� Be humble in how you conduct your life

� Do not deal in fraud

Quranic concept in business

What Quran says

What is Islamic law

Business Ethics 181950005

3. Makruh/Disliked: it is makruh to involve oneself exclusively in the profession of butcher, or

Quranic view of wealth

Business Ethics 181950005

Comprehensive financial planning encompasses a number of critical areas such as wealth

Business Ethics 181950005

Business Ethics 181950005

At a time of global advancement in various fields such as science and technology:

Business Ethics 181950005

Business Ethics 181950005

Business Ethics 181950005

Business Ethics 181950005

Business Ethics 181950005

Islamic view of wealth

Wealth and Properties: Islamic Perspective

Business Ethics 181950005

The Whole Universe, created for sake of mankind, belongs to Allah

‫ق نولنككنن أنعكثننرهمعم ل ينععلنمموُنن‬ ‫ض نأل إكنن نوععند ن‬

‫اك مشنرنكاَنء إكعن ينتنبكمعوُنن كإل اَلظننن نوإكعن همعم كإل‬

‫همنوُ اَلنكذيِ نخلن ن‬

‫ت لكقنعوُمم ينتنفننكمرونن‬ ‫ض نجكميِععاَ كمعنهم إكنن كفيِ نذلك ن‬

Business Ethics 181950005