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Property Rights and
Islamic Economic
Approaches
Introduction
 Capitalism views : Assets are obtained from the
results of a person's hard work so that he is fully
entitled to the expenditure of the assets he owns.
 Capitalist system : high degree of wealth inequality
between the richer group of the society and the
poorer one
Introduction
 Socialism views : property is something that must be
owned jointly by members of society in one country.
 The socialist system gives the state or community
association’s ownership of most productive resources, and
limit individual ownership and economic freedoms.
Introduction
 Ownership of these wealth has an impact on the
social status of the community. And this difference in
social strata creates conflict among them.
 Both of these views (Capitalism & Socialism) put
wealth as the main objective in economic activity.
Wealth is a fundamental focus on materialism. All
economic activities are focused on controlling larger
assets. Both of these ideologies are free from
religious values. It is focussed on rationality which
tend to be secularism.
Position of Wealth in Islam
God’s Ultimate
Ownership
Represents the
will of God
State’s Role
• Private Property
• Public Property
• State Property
Approach of Property Rights in Islam
Laissez faire
approach
(Al Faruqi,
Abdul Rauf
etc)
Populist
approach (Abu
Sulayman)
Populist-
state
control
(Sadr)
Laissez Faire Approach
Limited
boundaries
Moral
compass
Shariah
guidance
Populist Approach
Tawhid: Allah
is the creator
and men are
equal
partner
Acknowledge
individual
ownership
No one
should be
without
property
Certain
ceilings on
private
ownership
More tax
Populist-state control (Sadr)
Allah provides
natural
wealth for all
mankind
Three forms
of ownership:
state, publin
and private
Restrictions
on economic
activities to
maintain
social balance
Large
enterprises
must be
controlled by
state
Ownership in Islamic
Perspective
Private Ownership Public Ownership State Ownership
 Working
 Inheritance
 Hibah
 Other resources
 All of facilities which are
really needed by many
people (categorised
water, pastures, fire)
 Natural resources which
are forbidden to be
owned by individual or
certain group
 Unlimited mining
 Ghanimah,kharaj,
ushur, taxes
 properties which are
less -ownership
 unusable land
States owned enterprises which operate in this interest are
not allowed to be privatised
Limits to private property
 Hoarding
 Zakat and charity
 Sell the hoards at fair value
 Unused capacity of production as hoarding
 Riba
 Usury
 Fair exchange value

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Property Rights and Islamic Economic Approaches.pptx

  • 1. Property Rights and Islamic Economic Approaches
  • 2. Introduction  Capitalism views : Assets are obtained from the results of a person's hard work so that he is fully entitled to the expenditure of the assets he owns.  Capitalist system : high degree of wealth inequality between the richer group of the society and the poorer one
  • 3. Introduction  Socialism views : property is something that must be owned jointly by members of society in one country.  The socialist system gives the state or community association’s ownership of most productive resources, and limit individual ownership and economic freedoms.
  • 4. Introduction  Ownership of these wealth has an impact on the social status of the community. And this difference in social strata creates conflict among them.  Both of these views (Capitalism & Socialism) put wealth as the main objective in economic activity. Wealth is a fundamental focus on materialism. All economic activities are focused on controlling larger assets. Both of these ideologies are free from religious values. It is focussed on rationality which tend to be secularism.
  • 5. Position of Wealth in Islam God’s Ultimate Ownership Represents the will of God State’s Role • Private Property • Public Property • State Property
  • 6. Approach of Property Rights in Islam Laissez faire approach (Al Faruqi, Abdul Rauf etc) Populist approach (Abu Sulayman) Populist- state control (Sadr)
  • 8. Populist Approach Tawhid: Allah is the creator and men are equal partner Acknowledge individual ownership No one should be without property Certain ceilings on private ownership More tax
  • 9. Populist-state control (Sadr) Allah provides natural wealth for all mankind Three forms of ownership: state, publin and private Restrictions on economic activities to maintain social balance Large enterprises must be controlled by state
  • 10. Ownership in Islamic Perspective Private Ownership Public Ownership State Ownership  Working  Inheritance  Hibah  Other resources  All of facilities which are really needed by many people (categorised water, pastures, fire)  Natural resources which are forbidden to be owned by individual or certain group  Unlimited mining  Ghanimah,kharaj, ushur, taxes  properties which are less -ownership  unusable land States owned enterprises which operate in this interest are not allowed to be privatised
  • 11. Limits to private property  Hoarding  Zakat and charity  Sell the hoards at fair value  Unused capacity of production as hoarding  Riba  Usury  Fair exchange value