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Islamic Economy
by Im?m al-Haramain Sa'?d ash-Shuraim

All praise is due to Allaah, Lord of all the worlds. Peace and
blessings be upon the Messenger, his household and companions.
Fellow Muslims! Fear Allaah as He should be feared and be conscious of
Him in private and public. Be dutiful to Him and follow up an evil deed
with a good one it will erase it. Deal with people kindly. Allaah says,

"Verily, he who fears Allaah with obedience to Him (by abstaining from
sins and evil deeds, and by performing righteous good deeds), and is
patient, then surely, Allaah makes not the reward of the good-doers to be
lost." (Yoosuf 12:90)

Dear brethren! Money is the blood vessel of material development in the
life in this world, as Islaamic injunctions are the artery of spiritual
and moral development. Naturally, money overwhelmingly dominates human
mind. If the materially-overwhelmed mind is not controlled by
injunctions of Allaah and contentedness, it can lead man into a state of
poisonous madness and reprehensible avarice.

No wonder, man's love for money moves around in his body as blood moves
around in veins. This has to be so because Allaah says,

"And verily, he is violent in the love of wealth." (Al-`Aadiyaat 100:8)

And He says about a group of humans,

"And you love wealth with much love." (Al-Fajr 89:20)

It is in the light of this that people compete and vie with one another
to accumulate this wealth and get as much as they can of this tempting
material. However, legality or otherwise of this competition and its
meritoriousness or blameworthiness depend upon one's sincerity or
otherwise in searching for it. This is what Allaah refers to when He says, "

"O man! Verily, you are returning towards your Lord with your deeds and
actions (good or bad), a sure returning, so you will meet (the results
of your deeds which you did)." (Al-Inshiqaaq 84:6)

Money is a two-edged weapon. It is for the people of Islaam, Eemaan and
good intention a blessing for which they praise Allaah at all times.
This is the sign of the best nation. Allaah says,

"Those who spend their wealth (in Allaah's Cause) by night and day, in
secret and in public, they shall have their reward with their Lord. On
them shall be no fear, nor shall they grieve." (Al-Baqarah 2:274)

Money is loss and calamity for the disbelievers however much its
sources and however abundant it is. This is because they fail to spend it in
proper ways, so that it can be a source of sorrow and curse for them.
Allaah says,

"And let not the disbelievers think that Our postponing of their
punishment is good for them. We postpone the punishment only so that they may
increase in sinfulness. And for them is a disgracing torment." (Aal
`Imraan 3:178)

This has to be so because those who disbelieve in Allaah and His
Messenger derives their wealth mostly from sources that Allaah and His
Messenger forbid like usury, eating up people's wealth wrongfully and
hindering people from the way of Allaah. This act of theirs will cause them
real agony and regret when regret will be of no avail, for there is no
sin greater than disbelief. Allaah says,

"Verily, those who disbelieve spend their wealth to hinder (men) from
the Path of Allaah, and so will they continue to spend it; but in the
end it will become an anguish for them. Then they will be overcome. And
those who disbelieve will be gathered unto Hell." (Al-Anfaal 8:36)

It is in order to underline the importance of money in the life of
individuals and communities that it is mentioned in the Qur'aan commendably
or condemningly in more than eighty places.

Fellow Muslims! The law of Islaam encourages construction of the earth
and developing it economically so that it can help people to worship
Allaah as it is due therein. The Messenger of Allaah said,

"When the final Hour comes and one of you is holding a palm shoot and
he is able to plant it, he should do so, for he will earn a reward for
that." (Al-Bukhaaree in al-Adab al-Mufrad)

It is in the light of this that Islaam is very keen in providing
guarantees and pillars to ensure permanent and solid economical development.
A prominent pillar in this regard is independence of the Muslim society
in terms of their economy and development, so that it can be the leader
not a follower. Economical independence naturally means lack of
economical dependence on a foreign country. It also means Muslims' control of
their own economical potentialities with no foreign meddling. Losing
economical authority means losing political, military, social and
cultural authority. Therefore, economical development of the Muslim society
cannot be achieved if there is no economical independence and development
from within.

Dear brethren! These days, the Muslim Ummah is suffering from
economical anarchy and weak development. It is also suffering from economic
corruption that infiltrates into its societies through individuals and
organizations. The proliferation of these infiltration outlets is enough to
cause commotion that can lead to political and social instability,
devastating recession in the money market, lack of development and a
seriously weak economy for the Muslims.

Many recent studies confirm that there are connections between economic
corruption and development. Had the Muslim followed the real meaning of
Islaamic economic system they would not have deviated from the right
path of development and they would not have lived an anarchic life
falling over one another on what is called bourses market and stock exchange
that are not controlled by Islaamic injunctions. Also, there would not
have been chaos and many societies would not have been burdened with
choking debts accumulated from loans initially taken to purchase
unnecessary things.

Islaamic economic system on its part does not recognise that economic
productivity should be developed in isolation from proper distribution
of wealth. Also, goals of Islaamic economy should be made clear and
efforts should be carefully exerted to see that problems of individual
Muslims like illiteracy, unemployment and accommodation and health
sufferings are adequately addressed.

If people had reflected over the concept of Islaamic economy, they
would not have found themselves in the abyss of this chaos, because the
word for economy in Islaam is `iqtisaad' which is derived from root word
`qasd'; and `qasd' in Arabic language means uprightness, justice and
balance in word and deed, in imports and exports and in earnings and
spending. The Islaamic economic system therefore seeks to maintain balance
in development and justness in money market. It seeks to bring the
Muslim society to justice and balance with neither exaggeration nor
negligence.

It is in the light of the above that it becomes mandatory on the
Muslims to exert all efforts to islaamize their economy and development by
drawing from a single source of economic legislation which is the Book of
Allaah and the Sunnah of His Messenger. The correct Islaamic belief and
the authentic source of legislation are enough to guarantee ownership
for individuals and nations.

This proposal may cause some simpletons to raise eyebrows because of
their wrong perception that economy should only be controlled by
mathematical regulations and criteria only. The reason for this is that
thoughts and actions of these people are guided by individualism and
selfishness. It is this selfishness that caused foreign economic systems to
swing between communism and capitalism, and this is clear evidence that
belief has a great influence on economic development.

Dear brethren! The real progress in the study of Islaamic economy can
only come through adhering to Islaamic teachings, keeping it in the form
in which Allaah wants it and not to change or alter it in the garb of
man-made law.

Islaam sees that economic activity regarding exercising right of
ownership should be subjected to Allaah's injunctions. Allaah says,

"O you who believe! Be afraid of Allaah and give up what remains (due
to you) from Rib? (usury) (from now onward), if you are (really)
believers. And if you do not do it, then take a notice of war from Allaah and
His Messenger but 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 your capital sums)."
(Al-Baqarah 2:278-279)

Not only that, there is abundance evidence that the Muslims'
degeneration, weakness, ignominy and their subjugation by their enemy are caused
by their violations of Islaamic law in business transactions. The
Messenger of Allaah addressed his followers saying,

"When you become stingy with dinar and dirham [i.e, you hold back from
spending them in righteous ways], and you deal in `eenah' and you
become obsessed with cattle rearing thereby abandoning struggling in the way
of Allaah, Allaah will impose ignominy on you and He will not remove it
until you go back to [the correct teachings of] your religion." (Ahmad)

Dear Muslims! To attain the aspired progress, Islaamic economy needs a
serious participation from sincere scholars and Muslim economists who
can draw the outlines of the real and correct Islaamic economy.
Understanding of the situation and its social form should be given adequate
consideration. Studies should be based on induction and invention methods
with the aim of identifying the problems facing the Islaamic economy
and the reasons why it lags behind. To actualize this, we need to look
into the Prophetic methodology as a basic way of achieving guidance in
the light of Allaah's injunction:

"Allaah has permitted trading and forbidden Rib? (usury)."

(Al-Baqarah 2:275)

And His injunction:

"O you who believe! Eat not up your property among yourselves unjustly
except it be a trade amongst you, by mutual consent. And do not kill
yourselves (nor kill one another). Surely, Allaah is Most Merciful to
you." (An-Nisaa 4:29)

Fellow Muslims! Know that the economic problems that face the Muslim
world resulted from absence of the correct Islaamic way that caters for
the general economic well-being with resolution, cooperation and
perfection and through which interests of the Ummah can be attained and harm
be averted.

The contemporary applications in Muslim financial institutions,
especially in the area of banking and insurance, and the positive impact of
supporting them need to be appreciated by the Muslim societies,
governments and regulating authorities.

If we want to develop a correct economic activity, there are two
important elements that we must not ignore: Zakaah and Waqf [trust fund]. It
is through these two elements that we can have a guarantee of an
unlimited support in achieving the economic and social security for the
Ummah.

Not only that, we need to perfectly understand how to deal with
globalization scourge that has now become a reality that imposes itself on the
entire world.

Therefore, the importance of having a constructive economic cooperation
among Muslim countries cannot be overemphasised. There should be an
increase in trade exchange among them. They should have a common Islaamic
market that can compete with world markets. The future of the Muslim
societies should be planned from their own lands and with their own
efforts and conducts so that they would not become a prey to economic and
ideological beggary. For, any nation whose future is based upon that kind
of beggary is a lost nation that can never rise or progress. Allaah
says,

"He it is Who has made the earth subservient to you (i.e. easy for you
to walk, to live and to do agriculture on it); so walk in the path
thereof and eat of His provision. And to Him will be the Resurrection."
(Al-Mulk 67:15)