BH30603Labor in Islamic
PerspectiveTitle: “The Sources of Basic Principles of
Islamic Economics”
Group Members:1. SITI NORHIDAYAH BT ABD WAHAB - BB111105562. NOR FATIHAH BT YAHAYA - BB111103893. SAEZATUL AZWA BINTI OSMAN - BB11110515
The Basic Principles in Islamic Economics
• Generally, there are 3 fundamental principles in Islamic economics.
Basic principles
Multi-faceted
Ownership
Economic freedom within a
defined limit
Social justice
The sources of Islamic Economics
The two fundamental sources of Islamic economics are:
1. Al-Quran
The Holy Book for Muslims.
The word "Quran," a verbal noun, is equivalent in meaning to "qira'ah," as both
come from the verb "qara'a" which means "to read."
It is incredible words of Allah S.W.T revealed to Prophet Muhammad through
angel Jibrael.
It is one of the most important fundamental sources in Islamic economics.
It is contains general and broad guidelines for the conduct of human beings.
It is also the first intention in the determination of the law.
2. As-Sunnah (Hadith)
The second most important sources after Al-Quran.
It is consists of the religious actions and quotations of
the Islamic Prophet Muhammad which includes
speeches, behavior/act, and confessions.
The way of life that Prophet Muhammad taught
people in theory and practice.
Was noted down by His companions in hadith.
For example:
Riba
1. The Prophet said: “There is no riba
except in loaning.” (Nasaee 4504)
2. The Prophet said: “A loan from which
some benefits accrue to the creditor is
one of the many different forms of
riba.” (Al-Bayhaqi)
Moral conduct in entrepreneurship
1. Abu Said related that Prophet said: “The
truthful and trustworthy businessman will
accompany Prophets, saints and martyrs on
the Day of Judgment.” (Darimi, Tirmidhi)
2. Abu Huraira reported that the Prophet said:
“A time will come upon the people when
one will not care how one gains one’s
money, legally or illegally.” (Bukhari)
• Others sources of Islamic economics:
1. Ijma (Consensus of Opinion)
Ajma’a - verbal noun of Arabic word:
a) To determine
b) To agree upon something
Considered as the 3rd sources.
Exist in both Al-Quran and As-Sunnah.
When an Ijtihad (interpretation) of one or
few scholars becomes universal, it turn into
Ijma.
• Example of Ijma is opinion from
Abdullah ibn ‘Umar radhiallahu ‘anhuma
and his friends which is a prohibition for
people who rent a good, then he rent
the good to other people but with
higher rates.
(Ibn Hazm – Al-Muhalla, problem no.
1314)
• The Ijma is based on the following
verse in Al-quran:
1. “O you who believe, do not consume
(use) your wealth among yourselves in
vanity, except it be a matching trade
between you” (Al-Nisa’ 4:29)
2. Qiyas (Analogical Deduction)
Other sources of Islamic economics.
It means,
a) measuring/ascertaining length, weight or
quality of something.
b) Comparison to establish equality/similarity
between two things.
In the language of Usul, Qiyas is the extention
of a Shariah ruling from an original case (Asl) to
a new case (Far') because the new case has the
same effective cause (Illah) as the original case.
• For example,
1. The Quran forbids selling or buying of
foods after the last call for Friday
prayers until the end of the prayer.
(Surah al-Jumuah 62:9)
Therefore, this prohibition is extended
to all kinds of transaction and activities
such as agricultures, administrations
and others.
3. Ijtihad (Exertion of Effort)
An intense efforts/ability from a faqih in
order to gather the divine laws of
Shariah from a reliable sources and
proofs.
The law of Shariah is still not clearly
stated in Al-Quran & Hadith.
A mujtahid is the one who does Ijtihad.
For example:
Zaqah is based on the doctrine of
justice and the lack of market
system to achieve fair distribution
The principles of zaqah are derived
from verses from Al-Quran and
Sunnah.
1. The principle of multi-faceted ownership
• Capitalist believes in the private individual form of ownership.
• Islamic society does not agree with capitalism .• In Islamic viewpoint, ownership is accepted in a
variety of forms-instead of the principle of only one kind of ownership. (Socialism) E.g private ownership.
• According to Quaranic verses, every thing in this universe belongs to God almighty. "Whatever is in the heavens and whatever is in the earth belongs to Allah." [Al-Baqarah, 2:284].
2. The principle of economic freedom within a defined limit
• To allow individuals a limited freedom within the bounds of the spiritual and moral values in which Islam believes.
• The execution of this principle in Islam was performed in the following way:
1. The sacred law provided the textual stipulation to forbid a group of social and economic activities . usury, monopoly will be hindered.
2. The sacred law To protect & safeguard public interest through the limitation of freedom of individuals in the actions they perform.
• Individual does not have the right to posses as much as he desires and should be limited for the public welfare
3. The principle of social justice
• Islam requires authorities intervene in economic activities. E.g management, planning, and distribution.
• It shall be the duty of the Islamic government ruling implement Islamic economy ad curb the abuses.
• Should have the intervene of government because government jurisdiction is outside the areas of the individual’s ability to execute.
• Government intervention prevent usury, monopoly
Conclusion..Islamic Economic System is a system in which is how Islam arrange economical life with what belongs through precision thinking, covering the moral values of Islam and the knowledge of economy. It also assesses the human activities in line with syariah requirements either on the acquisition, management and the use of resources for the benefit themselves, the community and the nation, including the spiritual and physical aspects to find mardhatillah.