ISLAM AND ECONOMICS (original) (raw)

2022, Department of Islamic Revealed Knowledge, CFSIIUM

As people are acquainted with the different economic systems of the world, it has been observable that no economic system is correctly working to fulfil the economic requirements and needs of human beings. Human needs are not only confined to fulfilling basic needs such as food, shelter, and clothing. They are very much vast in nature. Human beings also engage in many economic activities for their satisfaction, such as purchasing property, selling goods and services, investing, borrowing loans, and others. Economics, in general, signifies the study of human behaviour in using resources to satisfy wants. It deals with the human management of the earthly resources regarding consumption, production, and distribution. Concisely, Islamic economics is defined as the knowledge and application of injunctions and rules of the Sharīʿah that prevent injustice in acquiring and disposing material resources, so that, man could perform his obligations to Allah S.W.T. and society. Islamic economics focuses on all aspects of economic activities. It neither confines to profit-making as practised in materialism nor sole individual ownership as advocated by capitalism. On the other hand, Islam stresses the equal distribution of goods and services among people in society. It balances both individual and societal interests. The Islamic economic system has the strength to overcome the weaknesses of both socialism and capitalism. Thus, economics in Islam is based on the concept that Allah S.W.T. Owns everything in this world. All properties, wealth and resources are God’s ownership, and He disposes them according to His Will. Human beings should exploit these resources and have power over them only as directed by Allah’s laws and His will.