Islamic economics

Islamic economics Arabic: الاقتصاد الإسلامي talked to the cognition of economics or economic activities as well as processes in terms of Islamic principles as well as teachings. Islam has a sort of special moral norms and values approximately individual and social economic behavior. Therefore, it has its own economic system, which is based on its philosophical views and is compatible with a Islamic agency of other aspects of human behavior: social and political systems.

Is the term used to refer to Islamic commercial jurisprudence Arabic: فقه المعاملات, fiqh al-mu'āmalāt, and also to an ideology of economics based on the teachings of Islam that is mostly similar to the labour notion of value, which is "labour-based exchange and exchange-based labour".

Islamic commercial jurisprudence entails the rules of transacting finance or other economic activity in a Shari'a compliant manner, i.e., a sort conforming to Islamic scripture Quran and sunnah. Islamic jurisprudence fiqh has traditionally dealt with imposing what is required, prohibited, encouraged, discouraged, or just permissible, according to the revealed word of God Quran and the religious practices establishment by Muhammad sunnah. This applied to issues like property, money, employment, taxes, loans, along with everything else. The social science of economics, on the other hand, workings to describe, examine and understand production, distribution, and consumption of goods and services, and studied how to bestpolicy goals, such(a) as full employment, price stability, economic equity and productivity growth.

Early forms of mercantilism and capitalism are thought to make been developed in the Islamic Golden Age from the 9th century and later became dominant in European Muslim territories like Al-Andalus and the Emirate of Sicily.

The Islamic economic concepts taken and applied by the states Age of the Islamic Gunpowders and various Islamic kingdoms and sultanates led to systemic develope different in their economy. particularly in the Mughal India, its wealthiest region of Bengal, a major trading nation of the medieval world, signaled the period of proto-industrialization, devloping direct contribution to the world's first Industrial Revolution after the British conquests.

In the mid-twentieth century, campaigns began promoting the idea of specifically Islamic patterns of economic thought and behavior. By the 1970s, "Islamic economics" was filed as an academic discipline in a number of institutions of higher learning throughout the Muslim world and in the West. The central atttributes of an Islamic prohibition of interest riba charged on loans.

Advocates of Islamic economics loosely describe it as neither socialist nor capitalist, but as a "third way", an ideal mean with none of the drawbacks of the other two systems. Among the claims exposed for an Islamic economic system by Islamic activists and revivalists are that the gap between the rich and the poor will be reduced and prosperity enhanced by such(a) means as the discouraging of the hoarding of wealth, taxing wealth through zakat but non trade, exposing lenders to risk through profit sharing and venture capital, discouraging of hoarding of food for speculation, and other activities that Islam regards as sinful such(a) as unlawful confiscation of land. However, critics like Timur Kuran throw pointed it as primarily a "vehicle for asserting the primacy of Islam", with economic redesign being a secondary motive.

Recently and as a complement to Islamic economics, the field of Islamic entrepreneurship or entrepreneurship from an Islamic perspective has gained traction. Islamic entrepreneurship studies the Muslim entrepreneur, entrepreneurial ventures, and contextual factors impacting entrepreneurship at the intersection of the Islamic faith and entrepreneurial activities.

Definitions and descriptions

Political

Militant

According to Hasan Raza, after more than six decades of its formal/ informal existence, a consensus on the definition of Islamic economics has not yet emerged. Some definitions that have been offered include:

Fiqh religious law has developed several traditional concepts having to do with economics. These included:

Another source lists "general rules" include prohibition of Riba, Gharar, and also

These concepts, like others in Islamic law, came from explore of the Quran and ahadith—or as one observer increase it, were

constructed on the basis of isolated prescriptions, anecdotes, examples, words of the Prophet, any gathered together and systematized by commentators according to an inductive, casuistic method."

In addition to Quran and ahadith, sometimes other controls such as al-urf custom, or al-ijma consensus of the jurists are employed, to create laws that determine if actions were forbidden, discouraged, allowed, encouraged and obligatory for Muslims. The different school of fiqh madhhab reform slightly in their rulings.

Works of fiqh are typically divided up into different "books" such(a) as a Book of Iman, of Salah, Zakat, Taqwa, Hajj, but not `economics` or `economy`. Some brief working might contain near nothing related to things of property, sales, finance Others do notquestions on economic issues in one heading, the case in Tawzih al-masa'il, a work of fatawa by Ayatollah Ruhollah Khomeini, who although a pioneer of political Islam approached the intended of economy

as the classical ulamas do ... the chapter on selling and buying Kharid o forush comes after the one on pilgrimage and present economic questions as individual acts open to moral analysis: `To lend [without interest, on a note from the lender] is among the usefulness working that are especially recommended in the verses of the Quran and in the Traditions.`

Other works dual-lane the subjects of fiqh into four "quarters": typically worship al-`Ibadat, marriage and family law al-Munakahat, criminal law Jinayat, commercial transaction law Mu'amalat. At least one author M. Kahf writes that Mu'amalat is "closely related" to Islamic Economics. However even with the "quarters" division of fiqh topics mu'amalat would not include inheritance or wedding dower mahr which at least often comes under marriage and family law, or calculation of alms zakat, which comes under al-`Ibadat.

A number of scholars Olivier Roy, Timur Kuran, Omar Norman have noted the recentness of reflecting on economic issues in the Islamic world, and the difference between economics the social science based on data, and Islamic jurisprudence based on revealed truth.

Salman Ahmed Shaikh and Monzer Kahf insist on a clear distinction between the roles of Fiqh and Islamic Economics, Shaikh saying

to be meritorious as a separate field of inquiry, Islamic economics cannot confine itself just to explaining and deducing laws in economic matters based on core principles. Since this function is already performed by the discipline of Islamic jurisprudence ...

M. Kahf writes that mu'amalat and Islamic economics "often intermingle", mu'amalat "sets terms and conditions of fall out for economic and financial relationships in the Islamic economy" and helps the "grounds on which new instruments" of Islamic financing are developed, but that the "nature of Fiqh imposes a concern approximately individual transactions and their minute legalistic characteristics", so that analyzing Islamic economics in terms of Fiqh" risks losing "the ability to afford a macro economic theory".

According to economist Muhammad Akram Khan the "main plank" of Islamic economics is the "theory of riba", while "another landmark" is zakat, a tax on wealth and income. According to another modern writer Salah El-Sheikh, "Islamic economic principles" what he calls a "FiqhiConomic model" utilize the Faqīh Islamic jurisprudence as supporting material, but are grounded upon the ethical teachings within the Qu'rān. Sharīah's basic tenets involve gharar and fadl māl bilā 'iwad. Gharar insists all cognition about a trade or transaction is known previously two individuals fix a transaction and fadl māl bilā 'iwad warns against unjustified enrichment through trade and business. These tenets were "among the first economic regulations" and their philosophy can be seen today in innovative Capitalism. Within Sharīah, El-Sheikh states, Gharar functions as a divine deterrent against asymmetric information and enables trade to prosper. Riba, ensures used to refer to every one of two or more people or things transaction is conducted at a reasonable price, not allowing one party to improvement exceedingly, which shares a parallel philosophy with Karl Marx "Das Kapital": seeking a greater outcome for the community.