The Economic Aspect of Islam | Part1

Wealth is the vigour and basis upon which life is maintained. The Islamic Shari’ah aims through it to establish a balanced society, wherein social justice is upheld and one can live an honourable life. Allah (SWT) says: Wealth and children are the adornment of the life of this world. [18:46]

Since Islam considers money one of the indispensable necessities without which individual nor society can e[ist, it has ordained that =akaah be taken (2.5 ) from the capital of the rich, if the necessary amount from which it is taken is in that person’s possession for a full lunar year. This money is to be distributed amongst the poor. It is a due right of the poor, and it is forbidden to withhold it from them.

This does not mean that Islam abolishes individual ownership and private business; rather it sanctions and respects them. There are many e[plicit te[ts which prohibit transgression against wealth and property of others. Allah (SWT)says:

And eat up not one another’s property unjustly. [2:188]

Islam has enacted laws and regulations the implementation of which guarantees the achievement of its goal… to provide an honourable life for each individual in the Islamic society. Some of the regulations are: Islam has forbidden interest, for it does not allow people to e[ploit others and devour their wealth wrongfully. Islam has made wealth and property inviolable. Due to the fact that interest leads people to forsake acts of kindness and leads to the accumulation of wealth in the hands of a few, Allah (SWT) says:

O you who believe %e afraid of Allah and give up what remains (due to you) from usury (from now onward), if you are (really) believers. And if you do not do it, then take a notice of war from Allah and His Messenger. %ut if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums) and you shall not be dealt with unjustly (by receiving less than

And if the debtor is in a hard time (has no money), then grant him time till it is easy for him to repay, but if you remit it by way of charity, that is better for you if you did but know.[2:280]

The Prophet (SAW)said: “Whoever wishes that Allah save him from the difficulties of the Day of Requital let him e[tend the time period to a debtor or free him of his loan.” [Muslim] Hoarding and monopolizing of any type of commodity is forbidden, because the trader takes into his possession products which the people need without selling them until the supply decreases, and then he sells them for whatever price he pleases. This incurs much harm, both to the individual and the society, the rich and the poor. The Prophet (SAW)said: “Whoever hoards [commodities] would sin…” [Muslim]

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“Anything that is hoarded and proves harmful to the public, it is considered of the prohibited type of monopoly, even if (the thing hoarded is) gold or silver. Whoever hoards (something the public is in need of) would have certainly misused what he owns. The reason monopoly is prohibited is to safeguard people from harm, for indeed, people have many different needs, and monopolizing therein would incur hardship upon people.” A ruler may force one who hoards a commodity to sell it at a reasonable profit which is neither detrimental to the seller or buyer. If the monopolist refuses to sell at that profit, the ruler may take possession of the hoarded commodity and sell it at a reasonable price in order to prevent those who may be thinking of e[ploiting the people by monopolising goods they are in need of. It has prohibited ta[es that are taken from a trader to allow them to sell their goods or to import them into the country.

The Prophet (SWT) said:

“One who collects the ta[ imposed on traders, will not enter Paradise.” [Ahmad Abu Dawood] This ta[ is considered taking money unlawfully and giving it to those who are not entitled to it. All those who contribute to this ta[, including ta[ collectors, clerks, witnesses and receivers come under the Prophet’s saying:

“No flesh that grows from unlawful things shall be admitted into Paradise; Hellfire shall have the best claim to them.” [atTirmidhi] Islam has forbidden hoarding wealth, and not e[pending from it the due right that belongs to Allah; both the individual as well as society would stand to benefit from this. Wealth should be circulated in society to stimulate the economy, and with this all individuals within society would stand to benefit. Allah (SWT) says:

And those who hoard up gold and silver and spend it not in the Way of Allah, announce unto them a painful torment. [ :34]

As Islam respects individual ownership, it imposes rights and duties therein. Among these are obligations which concern and relate to the owner himself, such that he must take care of himself and his dependants; relatives and those who he must upkeep. There are other rights which concern the individuals in society, such that they must pay =akaah, and give out charity, and help others. Other obligations concern the society at large, such that they must e[pend to build schools, hospitals, orphanages, mosques, and other facilities which would benefit society. What is sought by this is that resources are not amassed in the hands of a few within society. Source: aljumuah.comSource: aljumuah.com