Islamic Economic System Essay

Islamic Economic System implies a temper of fulfilling the economic sciences demands of the members of organized society in conformity with is injection of Quran and Sunnah. It’s derived from the instructions of the Holy Qur’an and explained in his Ahadith by the Holy Prophet ( SWT ) . This system continued in this original signifier till the decease of the Second Caliph Hazrat Umar ( RA ) .

The system believes in the private ownership of the agencies of production. distribution and exchange which are managed and controlled by persons or groups of persons for private net income. Islam enjoins investing of money and other resources ; it issues clear injunctions on the legitimate ways of puting them. The Jews confused “Riba?” with trade ; they would name “Riba?” a sort of trade. Unrestricted economic freedom and non-interference of the province in such freedom is another characteristic of conventional economic system. Competition.

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which is another characteristic of conventional. leads to the devastation of minor endeavors and houses.This encourages amalgamation of smaller concern administrations into major 1s and therefore monopolies or trusts are established. The Institution of banking and involvement is the life-blood of conventional signifier of economic system. For concern.

trade and industry particularly for large undertakings and economic ventures. immense financess are required which no person or house can set up. To pay ‘Zaka?t ’ on 1s wealth and belongings is highly obligatory for a Muslim.

Abu? Huraira has reported God’s Messenger as stating: “If God gives anyone belongings and he does non pay the ‘Zaka?t ’ on it. his belongings will be made to look to him on the twenty-four hours of Resurrection as a big bald snake with black musca volitanss over its eyes. It will be put round his cervix on the twenty-four hours of Resurrection. so prehend his jaws. so say. ‘I am your belongings ; I am your hoarded wealth. ”The lone poetries which province non mere ethical norms but instead economic regulations or ordinances are the poetries covering with zakaat ( revenue enhancement on excess wealth ) and riba ( usury/interest ) .

Establish worship. pay the poor-due. and bow your caputs with those who bow ( in worship ) . 2:43. In Islam there is no struggle between affair and psyche.

as there is no separation between economic system and faith. Its features. value and kernel are appreciated by Muslims and the non-Muslims. The over-arching values of Islamic economic sciences prevarication in the rule that it is an economic scheme that can accomplish integrity and harmoniousness between the stuff and the religious life of the people.


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