This presentation introduces the basic principles of Islamic economics. It discusses how Islamic economics is rooted in Shariah law and requires economic activities to comply with principles of justice, fairness, and ethics. Key principles discussed include the prohibition of interest and uncertainty, emphasis on wealth redistribution through charity, recognition of private ownership but with an emphasis on trusteeship, encouragement of free markets while prohibiting unfair practices, and the prohibition of gambling and excessive speculation. The overall aim of Islamic economics is to create an equitable system where wealth is used to benefit society in an ethical manner.

2. Subject:
Introduction of Islamic
Economic
Presented By:
Akbar Ali
001
Presented To:
Mufti Umar Farooq Shah

3. Topic:
• Basic Principle of Islamic
Economics

4. Table of Contents:
• Introduction:
• Shariah Compliance
• Prohibition of Interest (Riba):
• Prohibition of Uncertainty (Gharar):
• Wealth Redistribution:
• Ethical and Moral Considerations:
• Ownership and Property Rights
• Market Mechanism and Competition
• Prohibition of Gambling and Speculation
• Conclusion:

5. Introduction:
Islamic economics is a branch of economics that is based
on the principles and teachings of Islam.
It offers an alternative economic system with its own set of
values and guidelines.
This presentation will cover the basic principles of Islamic
economics

6. Shariah Compliance:
Islamic economics is rooted in Shariah, the Islamic law
derived from the Quran and the teachings of Prophet
Muhammad (peace be upon him).
It requires economic activities to be conducted in
accordance with Shariah principles, which include justice,
fairness, and ethical considerations.

7. Prohibition of Interest (Riba):
Prohibition of Interest (Riba): One of the fundamental
principles of Islamic economics is the prohibition of interest
or usury (riba).
Islamic finance promotes profit-sharing and risk-sharing
models rather than charging interest. The aim is to
eliminate exploitation and ensure a just distribution of
wealth.

8. Prohibition of Uncertainty (Gharar):
• Islamic economics discourages excessive uncertainty or
speculation (gharar) in economic transactions.
• It encourages transparency and clarity in contracts to
avoid any ambiguity or unfairness.

9. Wealth Redistribution:
• Islamic economics emphasizes the concept of social
justice and aims to reduce economic disparities.
• It promotes the redistribution of wealth through various
means, including mandatory charity (Zakat) and
voluntary alms-giving (Sadaqah).
• These mechanisms ensure the welfare of the less
fortunate and alleviate poverty.

10. Ethical and Moral Considerations:
• Islamic economics places a strong emphasis on ethical
and moral values in economic activities.
• It promotes honesty, integrity, and accountability in
business dealings.
• Practices such as fraud, deception, and exploitation are
strictly prohibited.

11. Ownership and Property Rights:
• Ownership and Property Rights: Islamic economics
recognizes the right to private ownership and property,
but it also emphasizes the concept of trusteeship.
Wealth and resources are considered blessings from
Allah, and individuals are seen as custodians
responsible for using their wealth in a manner that
benefits society as a whole.

12. Market Mechanism and Competition:
• Islamic economics encourages free markets and
competition. However, it emphasizes that economic
activities should be conducted within the boundaries of
Shariah principles.
• Unfair monopolies, hoarding, and price manipulation are
discouraged

13. Prohibition of Gambling and Speculation:
• Islamic economics prohibits gambling (maysir) and
speculative practices that create an imbalance of risk
and reward.
• Activities such as gambling, excessive speculation, and
derivative trading are discouraged as they are deemed
socially and economically harmful.

14. Conclusion:
• Islamic economics offers an alternative economic system
based on ethical, moral, and religious principles.Its core
principles revolve around Shariah compliance, the
prohibition of interest and uncertainty, wealth
redistribution, ethical considerations, property rights,
market mechanisms, and the prohibition of gambling and
speculation. By adhering to these principles, Islamic
economics aims to create a just and equitable society
where economic activities are conducted in a
responsible and ethical manner.