What is the meaning of Islamic economics?
Islamic economics is the knowledge and application of injunctions and rules of the Shari’ah that prevent injustice in the acquisition and disposal of material resources in order to provide satisfaction to human beings and enable them to perform their obligations to Allah and the society.
How does Islamic economic rationalism differ from conventional economic rationalism?
Conventional economics define a consumer as a utility maximizer of material wants and needs, while norms and religious value is absent here (Friedman, 1979). Islamic economic rationalism includes religion, social and cultural values to regulate consumption (Ahmad, 1992).
What is the importance of Islamic economics?
It is because the strength influence of two systems capitalism and socialism. Therefore, the main objectives of Islamic economics are the realization of human pur- pose to achieve the happiness of the world and the hereafter (falah), as well as a good and honorable life (al-hayah al-tayyibah).
What are major objectives of the Islamic economic system?
Mohammad and Shahwan (2013) summarised that the objectives of Islamic economics consist of two sectors, which are the philosophical-based objective (Al-Falah) and the operation-based objective (economic, social, justice, harm elimination, and state participation).
What are the features of Islamic economic system?
The central features of an Islamic economy are often summarized as: (1) the “behavioral norms and moral foundations” derived from the Quran and Sunnah; (2) collection of zakat and other Islamic taxes, (3) prohibition of interest (riba) charged on loans.
What are the principles of Islamic economics?
According Karim (2003), there are five basic principles of Islamic economics, namely tawhīd (faith), ‘adl (justice), nubuwwa (prophetic), the caliphate (government), and ma’ad (back/result). The fifth value is the basis of inspiration to formulate propositions and theories of Islamic economics.
Which countries use Islamic economy?
Iran leads the way with 29% of the global total followed by Saudi Arabia (25%), Malaysia (11%), the United Arab Emirates (8%), Kuwait (6%), Qatar (6%), Turkey (2.6%), Bangladesh (2.1%), Indonesia (2%) and Bahrain (1.8%). These countries drive the growth of Islamic finance, set industry standards and foster innovation.
What is the basic principles of Islam?
The orthopraxy of Islam is a declaration of faith: the statement that there is no God but God; that Muhammad is the messenger of God; the five-time daily prayer; the giving of alms, typically 2.5 percent of one’s income or assets; the fasting of the month of Ramadan; and the going to pilgrimage, or hajj, once in one’s …
What is the basis of Islamic civilization?
Islam civilization is based on the value of education, which both the Qur’an and the Prophet stressed. This dark green jade pot, 14 cm. (5½”), once furnished the Safavid palace at Tabriz, and probably passed into Ottoman hands after the Battle of Çaldiran in 1514.