Islamic Economy

What is Islamic Economy?

Islam is providing guideline and rule for every sphere of life and society especially economic. Islamic Economy, is a term used to refer to Islamic commercial jurisprudence. It is based on the rule called Shar'iah. Islam has set some standard based on justice and practically for economic system to be established and this standard is to prevent the enmity, which always happens among different socioeconomic section.

The principal of Islamic Economy?

In an Islamic Economy, the interests of both individuals and communities are addressed, because individuals and communities are not foes and work in harmony. Furthermore, whenever there is a conflict of interest between an individual and the greater good of the community, priority is given to the community’s needs.

This is the basis of all Islamic Economies and the characteristic that distinguishes an Islamic Economic System from other systems around the world. The sharing of profits and losses is a rule designed to divide wealth between the capital and the efforts. It is the principle that supports justice in wealth distribution.

How Islamic Economy is Beneficial?

Equality: Everyone working within the Islamic Economy practices self-monitoring rather than needing to be monitored by someone else; hence the control and monitoring of the economy is very efficient and powerful. It serves a variety of goals and prevents individuals from escaping their duties, rights and responsibilities.

Integrity: In Islam the Economy and Ethics are inseparable unlike other economic systems used in the world. Consequently, the required qualities of a Muslim economist include being honest, trustworthy, tolerant, decent, humble, merciful and caring. 

Transparency: Islamic Economy stresses the need for transparency in all economic and financial transactions.

Market Monitoring: Islamic Economic has a market monitoring system, however it does not interfere by setting or changing prices, such actions are undertaken only to prevent wrongful action and adjust things should a transaction be performed wrong.

What is in Islamic Economy?

Islamic Economy is consisting:
  • Zakat
  • Islamic Endowment / Waqf
  • Monetary
  • Islamic Finance & Investment
  • Financial Market
  • Islamic Banking
  • Islamic Insurance / Takaful
  • Halal, which includes
    • Food
    • Travel
    • Media
    • Fashion
    • Pharmaceutical
    • Cosmetic