23.
Islamic
Economic System
(Riba and ways of trade)
Course Instructor & Clusterhead
Islamic Studies:
Syed Anwar Hussain
7.INTEREST:
In Islamic economic system, Interest (usury) is not
allowed. Interest means capital without physical or
mental labor.
Quran says:
“Allah permitted trade and forbidden interest
(usury)”.
The difference between interest and profit is that:
(a) in case of interest, there is no chance of loss but
in case of profit, there is a chance of loss.
(b) interest is fixed but profit is not fixed.
(c) profit required initiative, efficiency and labor but
interest does not required anything
(d) in case of interest you know your return but in
case of profit you have to work for your return.
8.PROCEDURE OF TRADE &
BUSINESS:
Every business and trade can be started.
In socialism & capitalism.
Holy Prophet (SAWW) has said:
“Truthful and honest merchant and traders will
be accompanied with prophets and martyred
on the day of judgment.”
9.CLASS STRUGGLE:
Islam is opposed to class struggle, it means
conflict/dispute between the owner of the
industry and labors.
In capitalism, there is a concept of labor union
because in this system the owners does not pay
the rights but in Islam there are many orders for
the rights of labors therefore, Islam is not giving
permission for the labor unions as in Islam the
owners and labors are equal as human beings.
Quran says:
“And hold fast altogether the rope of Allah and
be not divided”
10.STRUGGLE FOR
ECONOMY/EARNING/SUSTAINANCE:
In Islamic economic system everyone has to work for
his livelihood, beggars who are physically fit are not
liked. Holy prophet (SAWW) has said:
“The upper hand is better than the lower hand”.
Again he said:
“Legal earner is beloved of Allah”.
Those who are not able for their earning, it is the duty
of government to provide the basic requirements of
the public. As food, cloth and shelter. Hazrat Umer
Farooq has said:
“If any dog dies on the side of the river of Dajlah due
to hunger, I would be responsible for his death”
11.PROCEDURE OF LAND:
In Islamic economic system the surplus land
which is cultivated or not cultivated would be
taken by government and hand over to those
who want to cultivate.
Example of Hazrat Bilal (R.A).
In socialism and capitalism.
12.PROCEDURE OF INDUSTRY:
Industry is permitted.
Should provide clean and lawful goods.
Industry should be lawful.
In socialism and capitalism.
