Week2 Definition of Islamic Economics

The resource is not scarce

And human desire is never end

So what should be the definition of economics?

Ibn Khaldun (Al-Muqaddimah): “The study of human efforts in obtaining resources and using them, through exchange, for the fulfillment of necessities, need, and refinements as well as for the propose of acquisition”

Hasanuz Zaman: “The knowledge and application of injunctions and rules of the Shariah that prevent injustice in the acquisition and disposal of material resources in order to provide satisfaction to human beings and enable them to perform their obligations to Allah and the society”

Zaidan Abu al Makarim: “The science that deals with wealth and its relation to man from the point of view of the realization of justice in all forms of economic activities”

Muhammad Akram Khan: “Islamic economics aims at the study of human falah achieved by organizing the resources of the earth on the basis of cooperation and participation”

Islamic economics aims at the study of human falah achieved by organizing the resources of the earth on the basis of cooperation and participation

Infaq: Spending on others to seek God's pleasure

Riba: Prohibition of Interest 

Amanah: Fulfillment of Covenants and Trusts

Adl: Justice

Enterprise by seeking His bounty

In Islam, God has created these resources for all human beings and has made man their trustee. God would like man to use these resources to achieve falah.

Man is not the real owner of these resources. So he is not free to use as he like. He needs directions.

God has created sufficient resources for His creatures (41:10)

Therefore the apparent scarcity of resources may be due to improper use or imbalanced distribution.

The word adequacy is prefer to scarcity. 

Allah created us to be different in order to work together on the basis of cooperation and participation.

Principle of Truth

Principle of Cleanliness

Principle of Moderation

Principle of Benefit

Principle of Moral

He has only forbidden to you dead animals, blood, the flesh of swine, and that which has been dedicated to other than Allah. But whoever is forced [by necessity], neither desiring [it] nor transgressing [its limit], there is no sin upon him. Indeed, Allah is Forgiving and Merciful.

“Cleanliness is half the faith (Emaan).” [Sahih Muslim]

And [they are] those who, when they spend, do so not excessively or sparingly but are ever, between that, [justly] moderate

Maslaha as a derivative concept literarily means benefit or interest which is quite a generic expression. However, when qualified to Maslaha Al Mursala, it means the benefit or interest of the public. In this case the public refers to the majority and this can include the Muslim Ummah and in fact non-Muslims (Lahsasna, 2011).

Islam forbids intoxicants (Al-Qur’an, Al-Baqarah: 219), the meat of dead animals, blood and flesh of swine (Al-Qur’an, Al-Baqarah: 173). In financial services, Islam forbids interest (Al-Qur’an, Al-Baqarah: 276) and gambling (Al-Qur’an, Al-Maida: 90), for instance. On some occasions, even lawful goods become impermissible, such as during the time of fasting (Al-Qur’an, Al-Baqarah: 183). 

Fasting in Islam is prescribed for Muslims to make them become God-fearing by restraining their desires and achieving moral consciousness.