ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Do's and Don't Islamic Finance

Updated on September 18, 2018

Islamic Economic System Do's and Don't

Islamic Economic System

Islamic economics is based on the Shariah i.e., the Islamic law, which governs secular as well as religious activities. The basic objectives are to ensure general human well-being and socio-economic justice. Presented below are the concepts that are to be followed to achieve equilibrium within a socio-economic framework:

Economic Well-Being and the Moral Norms of Islam
Islam urges Muslims to enjoy the bounties provided by God and to set no quantitative limits to the extent of material growth of the Muslim society. It even equates the struggle for material well-being with acts of virtue. It also urges Muslims to gain mastery over nature because, according to the Quran, all resources in heavens and on earth have been created for the service of mankind.

Universal Brotherhood
Justice

Social Justice
Economic Justice
Prohibition on Taking Interest (Riba) Zakat Ownership

According to the Quranic verses, everything in this universe belongs to God, the Almighty. “Whatever is in the heavens and whatever is on the earth belongs to Allah” [Al-Baqarah, 2:284]. He is the real owner of everything. “And Allah’s is the kingdom of the heavens and the earth, and Allah has power over everything.” [Al- Imran, 3:189]. Sadr (1994, 98-114) illustrated that individual ownership, state ownership and public ownership are three parallel forms of possession in Islamic law. Real ownership, however, belongs to Allah. Man holds property in trust and he is accountable to Him, in accordance with the rules which have been clearly laid down in the Shariah Islami’iah [Islamic Teaching].

Economic Freedom within Reason
Islamic economy allows individuals freedom within the boundary of spiritual and moral values. The execution of this ‘freedom’ is undertaken as follows:


THE DISTINCTION BETWEEN CONVENTIONAL AND ISLAMIC THEORIES

The Role of Moral Values
The Importance of the Hereafter

Islamic Perspective of Firm

Islam is also aware of man’s inordinate love for worldly gains (Quran 100:8). Consequently, Islam instructs its people to be moderate in their pursuit for profit, behave in the prescribed way, and acquire only the legitimate, not the maximum.

Keenness to Earn Legitimate (Halal) Earnings
Says the Holy Qur’an: Do not devour one another’s property wrongfully, nor throw it before the judges in order to devour a portion of other’s property sinfully and knowingly. (2:188)

Do not devour another’s property wrongfully – unless it be by trade based on mutual consent. (4:29)

Trade through Mutual Consent
The Holy Qur’an says: “O you who believe! eat not up your property among yourselves in vanities: but let there be amongst you traffic and trade by mutual goodwill: nor kill [or destroy] yourselves: for verily Allah has been to you Most Merciful.” (4:29)

Truthfulness in Business Transactions
Trustworthiness in Business Transactions
Generosity and Leniency in Business Transactions
Honoring and fulfilling Business Obligations
A verse states thus: O you who believe! Fulfil [your] obligations. (5:1)

A tradition of the Prophet (sws) states thus: The Muslims are bound by their stipulations. (Abu Da’ud, No: 3120)

Fair Treatment of Workers
Prohibited Matters in Business Transactions
some of these prohibited and undesirable business practices are as follows:

Dealing in Prohibited (Haram) Items
Sale of Al-Gharar (Uncertainty, Risks, Speculation)

Arbitrarily Fixing the Prices

Hoarding of Foodstuff
No one hoards but the traitors (i.e. the sinners). (Abu Da’ud, No. 2990) He (sws) also said: The importer [of an essential commodity] into the town will be fed [by Allah], and the hoarder will have [Allah’s] curse upon him. (Ibn Majah, No: 2144)

Exploitation of one’s Ignorance of Market Conditions
Al-Najsh (Trickery)
Cheating and Fraud in Business Transactions

Swearing

Giving Short Measures

Dealing in Stolen Goods

Islamic Economics

Hasbi Rabbi

Rabbana

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      islamic finance training 

      8 years ago

      Great sharing!I was looking for this kind of information because one of my friend is interested in investing in islamic banking.I will keep looking for more such articles.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)