Islamic economic is the social uplift system of the communtiy that is base on Exploration of Resourses, utilize and distributed on Social Justice

1. Research & Written
YOUSUF IBNUL HASAN
Program Consultant Islamic Banking & Applied Finance
IQRA University Pakistan
Design by
SAIRA ALI Student MBA Program 2010-2014
IQRA UNIVERSITY

2. WHAT IS ISLAMIC ECONOMICS?
WHAT ARE THE PRINCIPLES ON WHICH ISLAMIC ECONOMY,
ITS MONETARY AND FINANCIAL SYSTEMS FUNCTION?
Islamic Economics is a system that defines the available
resources blessed by Almighty Allah to the mankind.
How these resources are utilized and distributed by man
keeping in it, the social justice and seeking best of these
in participation and cooperation by applying,
knowledge, experience, ability and efforts through the
power of pen and book, granted by Almighty Allah,
recognizing and in confirmation the status of men as
“Unique among all creations” and appointing as
“Custodian” to all the resources, that Almighty Allah
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owns it alone and absolute.
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3. ECONOMICS IS AS OLD AS ISLAM ITSELF”.

Islam is not a religion. It is a complete political, social,
financial & economic system for Islamic & non Islamic
communities without discrimination with freedom of
choice and speak within define limits.
Islam is “Deen”. It totally differs to the religions because
of the definition, depth and details.
 Deen is interpreted as a “Lifestyle”.
 The principles of Deen are comprehensively guided in
Holy Quran, explained in Hadiath and practice by Holy
Prophet Muhammad May Peace Be upon Him as
Sharia’h”

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4. ALMIGHTY ALLAH IDENTIFIED
Aims, Objectives, Purpose, Way & Means
of
Islamic Economics
 “READ
(IQRA) in the name of your Lord, who
has created you with the clot of frozen blood and
taught you with the power of pen …………….
 The
word READ opens the chapter of an Islamic
Economics; in
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5. READ
RATIONAL
EFFORTS
APPLICATION
DESCRIPTIVENESS
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6. 20TH CENTURY ECONOMISTS DEFINE
ISLAMIC ECONOMICS
Hasan-uz-Zaman
Islamic economics is the knowledge and application of
injunctions and rules of the Shari'ah that prevent injustice in
the acquisition and disposal of material resources in order to
provide satisfaction to human beings and enable them to
perform their obligations to Allah and the society.
M. Akram Khan
Islamic economics aims at the study of human recovery
achieved by organizing the resources of earth on the basis of
cooperation and participation.
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7. Dr. Nejatullah Siddiqi
Role of Shariah define belief in justice and
freedom, cooperation and sharing which are
the fundamentals to Islamic economic
philosophy within the total Islamic system.
Key to Islamic economics philosophy lies in
man's relationship with Allah, his universe
and his people. The other human beings are
the nature and purpose of man's life on earth.
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8. CONCEPT OF ECONOMICS
Established on the day Adam
Adam was senseless to his needs & desires upon his
creation. He disobeyed Allah Almighty on the
temptation of IBLEES (devil).
Adam’s act of disobedience created principles of economics
that revolve around
Theory of Need, Want and Desire that lead to
Act, Acquire and Accept
Prophet Adam (May Peace Be Upon Him) was sent to
earth to develop mankind with a system of life that give
birth to Natural Economics.
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9. DEFINITION OF ISLAMIC
ECONOMICS
“Any activity that has a commercial,
economical and financial purpose with the
priority of social benefit to mankind is
classified as
Islamic Economics
The system that has the foundation on this
classification leads to socio- economic
development and not just the economic
development.”
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10. BASE OF ISLAMIC ECONOMICS
Resources are unlimited and efforts are limited.
 Needs and wants does not effect on the supply or resources.
 Availability of resources depend on efforts that increase
affordability which is the force for satisfying needs.
 Nations using their efforts in achieving knowledge and
apply it in seeking rights are leaders of economic growth.
 Nation merges economics growth with socio development
are the genuine Communities and such states are

For the People, By the People, & Of the People
This Socio Economics Development converts
Peoples into Nations.
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11. ISLAMIC ECONOMIC REGARDS
THREE FACTORS OF PRODUCTIONS.
Man, Money &Commodity
MAN
COMMODITY
MONEY
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12. RELATIONSHIP OF ALLAH & MAN
Tawheed
Oneness of Almighty Allah
Total commitment to the will of Allah by submission &
the mission to mould human life in accordance with
Allah’s will”.
4 Great ways to except Tawheed
1st….. Look back and thank Allah.
2nd……. Look forward and trust Allah
3rd……… Look Around and believe in Allah
4th………. Look within yourself and find Allah
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13. Life on earth
Is a test and its purpose is to prove successfully by doing
Allah’s willed. For man entire universe with all natural
resources and powers are opens to exploitation, which
Allah owns it alone. Provisions are available to man being
the nature of trust.
 Islam & Faith
Almighty Allah is absolute & Prophet Mohammad Peace be upon Him,
was an executive judge. Holy Quran is the code of conduct.

Islam organizes
Man’s life in its aspect of political, social, commercial, legal,
ethical, financial, monetary and in economy.

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14. ISLAMIC ECONOMICS
Application of Deen
(Principles of Lifestyle).
Through the Theory “The Holy Quran”
By the explanation of theory “Hadiath”
&
Practice & Implementation
“The glorious Shariah”
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15. ISLAMIC ECONOMICS IS AN
INDEPENDENT SYSTEM
 It enjoys a separate identity.
 It is a self-contained system with its own
economic policy,
 It covers interests at Private and Public as well
as Material or Spiritual.
 It has given a complete system of lifestyle,
Earning, Expenditure, Businesses, and
Relationship with Legal Framework.
 It emphasizes for all bases on Social Justice,
Equality, Unity, love, Cooperation, Sharing, 15
Transparencies in all affairs and respect. hasan
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16. Islamic Economics System guards
 Rights of minorities and non-Muslims in the Islamic
state.
 Rights of Women and Orphan’s.
 Rights of employees.
 Rights of Lenders and Borrowers.
 Rights of everyone without Race-Religion-Language-Color
or Sect.
Islamic Economics system is based on four principles
 All wealth belongs to Almighty Allah
 Man is the trustee of the wealth
 Hoarding of wealth is prohibited
 Wealth must be in circulation at all time
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17. Three parameters for day-to-day affairs and
problems
IJMA(GATHERING)
QIYAS(DICUSSIO
N)
AMAL(ACT)
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18. WHAT ISLAMIC ECONOMIC BELIEVE
Islamic Economics is specifically believe distribution as an
economic problem.
It differ application to capitalist & communist systems for
production.
It differentiates between Basic
Needs & Luxuries.
It does not accept concept of effective scarcity of resources.
It does not accept concept of inflation
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19. The Holy Quran identifies resources
Sufficient, Unlimited & in Qualities
Fulfilling the basic needs like
Food, Clothing & Shelter
For over Fifty Billion Human Beings at all time.
Conventional economics
misguides this reality with starvation, poverty,
& economic backwardness because of
misdistribution originated from man-made
laws and systems.
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20. MAN & MONEY IN ISLAMIC ECONOMICS
Money matters in human life play a vital role
 Money matters identify principles of it affairs including
earnings, income, distribution of wealth & its utilization.
 Matters pertaining to money must be fair, transparent &
useful for developing socio-economic life of community.
 Islamic Economics eliminate monopoly of an individual,
group or an organization who keeps a control on world
monetary policies and gets most out of these resources
by blocking wealth, crossing their jurisdictions
 It does not impose limits on amount of wealth that an
individual can acquire.

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21. ISLAMIC ECONOMICS SYSTEM GUIDANCE
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Guides in maintaining of wealth in a proper form of
distribution and define incentives for work and efforts.
Shows opposition & defends against misuse of exploitation
in getting hold of wealth through unfair means.
Denies clearly "free" Market of Capitalism, which has led
to the situation of survival of a part of the society.
Emphasizes public revenue from natural resources
should be use to secure needs of community and not to fill
pockets of casino owners.
Encourages state to provide public, essentials, utilities
and resources to cover needs of citizens in justified way.
Outlaw hoarding of wealth and eliminate copyright or
patent laws that open an avenues for developing potential
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monopoly.
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22. ISLAMIC ECONOMIC SYSTEM

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Protects ownership of businesses & companies by restricting
it only to those who contributes both capital or effort
Effectively puts a stop on concepts "corporate takeover"
from becoming a reality.
Classifies wealth in a systematic way to protect rights of
individuals to access wealth.
Protects the society and secures the needs of the people.
Mandates vital and natural resources as public property
while allowing for unlimited access to luxury items.
Protects society by defining certain needs as a “prohibited
needs”.
Disregards corrupt man-made systems and protects honor,
rights of woman, minor and orphans.
Bans all forms of prostitution, pornography or any activities
that exploit charms and physical attractiveness of women.
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Prohibits alcohol, gambling, spiral of corruption, social
turmoil and moral devastation
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23. BASIC PRINCIPLES OF ISLAMIC ECONOMICS
Principle of adaptable ownership
 Principle of economic freedom within a “defined limit”
 Principle of social justice.

FIRST PRINCIPLE
Three types of ownerships are permitted ;
 The individual ownership.
 The state ownership.
 The public ownership.
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24. SECOND PRINCIPLE
Economic Freedom within a Defined Limit
 Islamic law prohibits all such social and economic
activities that differ to the teachings of Islam and its
principles and values. Such social, economical and
commercial activities fall under the category of Riba
 It defines the principles on which ruler sworn for
supervision of general activities intervenes in any anti
Islamic economic activities.
 It guides State to protect and safeguard public interest
through the control on individual freedom in the illegal
and non-permitted actions they involve due to which the
economic activity of the community and society suffer.
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25. ECONOMICS
FREEDOM IN DEFINE LIMITS
Men have no right to possess unlimited wealth and
desire to obtain wealth by any means and way he may
choose.
 Right is given to every member of the society by
appointing each one as a guardian of the public trust
and the ownership is limited for the public welfare and
for the betterment of mankind.

THIRD PRINCIPLE:
Social Justice in Islamic Economics
 To give-and-take responsibility
 To keep social balance
 Prohibits growth in differences

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26. IT GIVE SOCIAL BALANCE
i.e. few live in extra luxury and rest were deprived of basic
necessities of life and forced to live a life of misery, hunger,
without shelter, illness and as neglected class of the
society.
DIFFERENCE
Tawhid (monotheism)
 Definite acceptance of Almighty Allah’s relationship with
man and man’s believes in supremacy of Almighty Allah
with clear vision on Day of Judgment.
 The accomplishment of man depends on the belief and
obeying the teachings of Islam and bringing healthy and
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peaceful community by synchronizing between morality
and the material characteristic of life.
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27. IJTEHAD
Emphasize on independent legal judgment, effort and
ability to figure out rules from sources that carry out social
justice in accordance with Islamic Economics.
 Economical and social problems can be solved only through
Ijtehad, particularly issues in regard to which, no definite
injunction is available in the Quran, or Sunnah.

ETHICS
It is third element for the enforcement of social justice.
 Islamic economics considers ethics in relation to human
lifestyle or religion.
 Islamic Sharia’h defines social justice in Islamic Economic
as the pillar of the concept that functions with a valid 27
reason.
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

28. ETHICS
The concept of Zakat and prohibition of practicing of
Riba in the daily life of an Islamic society.
 The contribution of Zakat and elimination of Riba
develop stability, peace, harmony and social
economics development.
 It gives the real value of Money as money to be
respected instead to be loved.
 It defines the state responsibilities for income
distribution and take this responsibility as the basic
principles towards the social justice

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