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Islamic Economy (An Introduction)
Author : Dr. Safwan Odaybat
Date Added : 12-09-2022

Islamic Economy (An Introduction)

 

Amidst the increasing economic crises that hit countries every now and then, the recent fall of capitalist economy, the failure of socialism, and the fall of communism in the late eighties, conflicting calls have emerged:

First: A call for the application of an Islamic economic system, encompassing macro and micro levels, doesn`t discriminate between classes, swings between the steadiness of the total principles and the flexibility of the application to the branches. Accordingly, it constitutes a comprehensive system for mankind, deriving its comprehensiveness from the fact that Sharia is applicable to every time and place. 

Second: A call for applying the fittest economic system to mankind, as agreed by countries, be that system capitalist, socialist or mixed. As a matter of fact, there isn`t what is called an Islamic economic system. Rather, there are mere viewpoints and reasoning that impose a certain meaning on texts of Sharia and limited banking experiences that don`t live up to be called an economic system, in addition to failure to find comprehensive developmental solutions.

What is the concept of the Islamic economy? How true is the assumption that there is an Islamic economic system? We will attempt to give an answer through the following:

From a linguistic viewpoint, economy refers to spending between exceeding and falling short. For more details, kindly check [Al-Mohkam Wal Moheet Al-`Adam by Ibn Seedoh, vol.6/pp.186]. As a term, it refers to "The science that investigates all that is related to fortune, money, earnings, possessing, spending, production, investment, services, savings, poverty and richness." [Al-Mo`jam Al-Iktisadi Al-Islami by Dr. Ahmad Al-Shorbasi, pp.36].

 

Leaving such definitions aside, let`s consider some definitions delivered by contemporary scholars of Islamic economy:

 

First: It is impossible that the Sharia, which is eternal and fits for every time and place, lacks general rules and controls for the themes of Economics, such as fortune, investment, production, and the like. This is because these have to do with man`s succession on earth. These elevate life and cause it to continue; however, without them society will return to the life of the jungle and take the path of extinction. Rather, these themes are amongst the requirements for the perfection of Sharia, about which Almighty Allah Said (What means): "This day have I perfected your religion for you, completed My favour upon you, and have chosen for you Islam as your religion." [Al-Ma`idah/3].

 

Second: Demonstrating the greatness and comprehensiveness of Sharia to all aspects of life, including economic terminology, is one method for calling people to the way of Allah. Rather, it is calling to Him with insight and knowledge. This call also needs scholars of economy who are aware of the minutest details of this field and its emerging issues from Sharia, legal, and specialist technical aspects. Their knowledge and experience will enable them to deliver Fatwa, make disciplined Ijtihad, and understand texts using their talent in jurisprudence. We may add that this is a collective obligation.

 

Third: The general rules and the total principles of Sharia are tantamount to a general constitution on which rulings rely. "In terms of jurisprudential principles, the economic policy of Islam is divine, but in terms of application, it is secular." [Thatiyat Al-Siyasa Al-Ektisadiya Al-Islameyah Wa Ahmeyat Al-Ektisad Al-Islamic by Dr. Moh. Shawki Al-Fangari, pp.18]. Consequently, there are many texts of Sharia about the economic policy. For example, Allah The Almighty Says (What means): "And do not eat up your property among yourselves for vanities, nor use it as bait for the judges, with intent that ye may eat up wrongfully and knowingly a little of (other) people’s property." [Al-Baqara/188]. He also Says (What means): "In order that it may not (merely) make a circuit between the wealthy among you." [Al-Hashir/7]. Moreover, narrated a man of the Companions (RA): I went on an expedition with the Prophet (PBUH) and heard him saying: "People are partners in three things: grazing, pasture, water and fire." [Reported by Ahmad and Abu Dawood, and its narrators are reliable (thiqah)]. The Prophet (PBUH) said: "If anyone makes a barren land productive, then it belongs to him." [Reported by Ath-Thalatha. At-Tirmidhi graded it Hasan (good)].

Economic theories that fit to be a just comprehensive economic system for reforming mankind have been established upon these jurisprudential principles.

 

Fourth: We conclude that Islamic economy is "A science that examines whatever is related to fortune, money, earning, possessing, spending, production, investment, services, savings, poverty and richness in light of the principles of Sharia, its total rules, and the Islamic value system."

 

هذا المقال يعبر عن رأي كاتبه، ولا يعبر بالضرورة عن رأي دائرة الإفتاء العام

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Summarized Fatawaa

What is the ruling on a Muslim who slaughters an animal while being in a state of Janabah (ritual impurity)?

All Perfect Praise be to Allah, The Lord of The Worlds, and may His Peace and Blessings be upon our Prophet Muhammad and upo all of his family and companions.

Slaughtering is permissible for the ritually impure man and the menstruating woman because ritual purity isn`t a condition for the validity of the slaughtering. Moreover, it is permissible for the uncircumcised person to do the slaughtering as well. And Allah The Almighy Knows Best.

I work at a company that provides cash advances of 800 dinars, 1000 dinars, or 1200 dinars, depending on the employee’s years of service. An administrative fee of 40 dinars is deducted from the amount in the first month, and the remaining amount is repaid in installments. What is the ruling on this, knowing that the deducted amount (40 dinars) is fixed?

We fear that the deducted amount may be a means of circumventing interest (Riba). If the deducted amount is equal to or less than the actual administrative expenses, then there is no issue, as some scholars permit the borrower to bear the costs of documenting and managing the loan. However, piety suggests refraining from taking this loan under these conditions, as dealing with private individuals and companies is not the same as dealing with the state, which spends from the public treasury. And Allah Knows Best.

A man who was on travel prayed Duhr as four Rakhas upon leaving Tafilah heading to Amman. However, on his way to Amman, he prayed Asir as two Rakhas (Shortened). Is what he did correct from an Islamic perspective?

All perfect praise be to Allah, The Lord of The Worlds. May His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.
 
What he did is correct; he is liable for nothing before Allah The Almighty, since combining and shortening prayers during travel are two separate concessions. Therefore, it is permissible for a traveler to shorten prayer without combining it with another. And Allah The Almighty Knows Best.

What is the ruling of Sharia on uncovering Awrah  before  a female laser-hair-removal specialist to remove thick hair knowing that I`am engaged and feel embarrassed and this treatment is guaranteed and definitive?

Praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
It is lawful for a Muslim woman to look at the body of another Muslim woman except what is between the navel and the knees.  In addition, it is lawful to look at the whole body for treatment; however, having thick hair isn`t considered an illness. And Allah The Almighty Knows Best.