Basics of Islamic Economics

The basics of Islamic economics reflect the foremost belief around which all the Islamic concept revolve, they are based on the idea that the whole universe is created and controlled by One, the only One God. He has created man and appointed him as His vicegerent on the earth to fulfill certain ethical objectives through obeying His commands.

These commands are not restricted to some modes of worship or so-called religious rituals. They, on the contrary, cover a substantial area of almost every aspect of our life and, consequently, finance. These commands are neither so exhaustive that straiten the human activities within a narrow circle, leaving no role for human intellect to play, nor are they so little or ambiguous that they leave every sphere of life at the mercy of human perception and desire. These commands acts in the name of ethics and ethical finance.

Far from these two extremes, Islam has a balanced approach to govern the human life. This balanced approach is at the basis of Islamic finance. On the one hand, it has left a very wide area of human activities to man’s own rational judgment where he can take decisions on the basis of his reason, assessment of facts and expedience. On the other, Islam has subjected human activities to a set of principles which have eternal servants of Allah is required not only in worship, but also in their economic and financial activities, even though it is at the price of some apparent benefits, because these apparent economic benefits may go against the collective interest of the society.

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