Categories : ECONOMIC SYSTEM IN ISLAM

From the start of Muhammad’s (upon whom be peace) prophethood, almost to the very end of his life—and especially in the Meccan Era—the Muslims suffered great economic distress. The Messenger of God had forsaken all his belongings, along with the wealth of his generous and compassionat

Islam guides its followers in all phases and activities of life, material as well as spiritual. Its basic teaching on economics is mentioned in several Qur’anic passages. We find it stated clearly in several verses, as in some of those mentioned above, that God created everythin

Both the individual right of controlling one’s wealth and the right of the collectivity vis-à-vis each person’s wealth, inasmuch as one is a member of society, have to be satisfied simultaneously. Individual temperaments differ enormously, and sickness or other accidents m

Wills are operative only for one-third of property and favor persons other than creditors and heirs. The goal of this rule seems to be twofold: To permit a person to adjust things, in extraordinary cases, when the normal rule causes hardship (one-third of the property is enough for fu

One also has obligations as a member of a larger family (i.e., society and the state of residence). In the economic sphere, one pays taxes that the government then redistributes in the collectivity’s interest. Tax rates differ according to the sources of income. Interestingly, t

This consists of risks involving heavy charges from objects of insurance, and differs according to the times and social conditions. Among the Arabs of the Prophet’s time, daily ailments were unknown and the cost of medical care was practically nothing. The average man built his

Qur’an 5:90 prohibits all games of chance and characterizes them as the “work of Satan” for cogent reasons. First, most social evils emanate from an inequitable distribution of the national wealth, which allows some to become too rich and others to become too poor. A

Probably every religion has prohibited usury. However, only Islam provides remedies to undermine the causes leading to this evil institution: Nobody willingly pays interest on borrowed money. He or she pays interest because the money is needed and there is no other choice. Islam has m

We end this brief sketch by mentioning two important prohibitions that are characteristic of a Muslim’s daily life: games of chance and alcoholic drinks. Having already discussed the first one, which causes the vast majority of its participants to spend money for years without g

All financial and other dealings are based on some expressed or implicit agreements. Honoring these agreements is the key to happy and smooth relationships among members of a community or a society. Therefore, the Qur’an stresses this principle and, in several places, actually l