Islam is totally accepting business
The Prophet urged (peace and blessings be upon him) urged, “Be
involved in business as nine out of ten sources of income lie in
Its role is defined in the Holy Koran and the Hadiths “ … whoever
returns to [dealing in interest or usury] - those are the companions
of the Fire; they will abide eternally therein…” (Al-Baqarah 2:275)
This shows that it is contrast to communism/socialism which is
In Islam the behaviour in business is set with conditions which it must
Seek monopoly or manipulate the market
Exploit the poor
Trade in forbidden goods and services such as :
Alcohol / drugs / tobacco
Pornography / gambling
Deal in pork products
Engage in ‘usury’ riba
Central to Islam is Tawhid
Tawhid is the Islamic way of life , the fundamental of all Islamic
civilization, which is process, means and end together.
Tawhid is both the essence of the individual and the society he or she
Tawhid is acceptance of one creator and His divine guidance of
Tawhid implies both the mission and morality of humankind on both
social and spiritual contexts.
Fall under two categories – fard’ain, and fard kifayah
Fard’ain means that an individual’s obligation to perform his or her
Fard kifayah means that an obligation for man to serve the entire
community through services to each other, necessary for the
community to live safely and comfortably.
The obligation to improve the Muslim Ummah falls under Fard
Kifayah, where undertaking business is the principal method of
improving the economy and community.
Entrepreneurship in Islam – social justice derived through productive
work, where equal opportunities exists for all, and everybody can
utilize their abilities to work and gain just reward for their efforts.
Most countries adopted concepts of ‘Islamic socialism’ where
references to Islam teachings and shariah were only cursory or
There are fifteen general principles of Islamic economy
Islam provides a supportive value system where a person should
seek to achieve economically as well as spiritually
People are expected to earn their own living, if possible.
The pursuit of wealth is legitimate, however moderation in
lifestyle is espoused
Prices should be just, based upon competitive markets.
The inequality of income should not be allowed to become too wide,
therefore the state should intervene to ensure that equality is
The needy are protected by society through Zakat
Land and capital are productive factors, only when combined with
labour. Therefore income should not just be derived from ownership.
Finance, leases, loans, etc. should be based on the sharing of risk as a
basic principle of justice and equity
Islamic values from upon wasted resources, human skills and idleness.
Human are God’s custodians and only possess resources temporarily.
So, they must ensure these resources are passed onto the next
generation intact, consequently Muslims have a duty to protect the
Private ownership is paramount within the economy, where the state
should only interfere under exceptional circumstances.
Monetary policy should only be utilized to stabilized prices.
Fiscal policy should only be used to preserve an equilibrium between
tax revenue and public expenditure.
The state’s role is solely to provide sufficient infrastructure for society
to operate fairly and equitably.
Antisocial practices that damage society are forbidden where monopoly
and hoarding and other market distortion are not permitted.
Islamic economics provides a way of creating equity within a
Entrepreneurship is the preferred method of agency within an Islamic
economy, where high levels of interdependency through clusters based
on community are advocated.
Developing entrepreneurship based upon Tawhid principles is
empowering to the Ummah and a way to integrate with the world
without the need to compromise religious beliefs and values
The Al-Qur’an is not just a book of divinity, it is a practical book of
empowerment, largely ignored for its potential in this regard