Course Outline: Islamic Economics (Course # 612)
Date: 20/7/10
Core Topics
Definition of Islamic Economics: Introduction and fundamental
concepts.
Nature, Need & Scope: Understanding the importance and reach
of the subject.
Islamic Point of View on Ownership of Resources: How Islam
views property and resource management.
Economic Problems: Scarcity, human wants, and the nature of
economic challenges.
Sources of Shariah: * Holy Qur'an
o Sunnah
o Ijma
o Ijtehad
o Qayas
Life Objectives: Ownership, wealth, and the objective of worldly
life.
Basic Economic Values:
o Tauheed (Oneness of Allah)
o Akhirat (Life after death)
o Risalat (Prophethood)
o Brotherhood & Equality
o Justice
o Concept of Halal & Haram
o Ethical sources of earning
Shariah-Based Transactions & Elements:
o Riba (Usury/Interest)
o Markup
o Profit sharing
Advanced Concepts
Distribution of Wealth: How wealth is circulated in an Islamic
Economic system.
Comparative Analysis: Comparison of Islam with Capitalism and
Socialism.
Islamic Banking & Development: Introduction to Islamic
commercial development.
Islamic Finance: Contracts and foreign exchange (Baig).
Financial Instruments: Tools used in Islamic finance.
Zakat: Its definition and significant economic role.
Meanings of Islamic Economics
What is Islamic Economics?
Economics: It is a discipline of life focused on searching for resources and
managing/arranging a home.
, Islamic Economics: The primary difference between conventional and
Islamic economics lies in the Divine Commandments. Human needs (food,
shelter, etc.) are the same regardless of whether a person is Muslim or
non-Muslim, but the method of fulfilling those needs distinguishes the two
systems.
Foundations of the Islamic Economic System
The Islamic economic system is built upon both Morality and Law.
Non-Islamic systems often rely solely on law, which is a major
shortcoming.
Islamic economics integrates moral ethics to ensure that the spirit of the
law is upheld, not just the letter.
Categorization of Goods: Halal vs. Haram
In Islam, all worldly items are divided into two categories: Halal
(Permitted) and Haram (Prohibited). The rulings regarding permissible
exchange and trade include:
One person’s gain should not result in another person’s loss.
Exchanges between parties must be just and fair. (Justice is a
commandment of Allah).
Relevant Quranic References:
Al-Baqarah (275-283)
Al-Imran (161)
Al-Ma’idah (38, 90)
Al-Nur (19, 33)
An-Nisa (10)
Prohibition of Hoarding (Mal Jama’ Karnay ki Mumanat)
Islam prohibits the hoarding of goods to artificially inflate prices for
personal gain.
When a person develops an excessive love for wealth, they lose empathy
for others.
Surah Al-Humazah: Explains that wealth accumulation and counting it
obsessively leads to spiritual and moral ruin.
Wealth itself is not “bad” (the Sahaba, like Hazrat Abu Bakr, were
wealthy), but it becomes a trial if it is not used to help the poor or if it is
kept out of circulation.
Concentration of Wealth
The concentration of wealth is a moral crime against the nation.
Qarun (Korah): The example of Qarun is cited as a warning. His refusal to
acknowledge wealth as a blessing from Allah and his refusal to help the
needy led to his downfall.
References: Al-Imran (180), At-Tawbah (34).
Commandment of Spending: In Sabilillah
Islam commands the spending of wealth for the welfare of the community
(Jama’at) and the nation.
Date: 20/7/10
Core Topics
Definition of Islamic Economics: Introduction and fundamental
concepts.
Nature, Need & Scope: Understanding the importance and reach
of the subject.
Islamic Point of View on Ownership of Resources: How Islam
views property and resource management.
Economic Problems: Scarcity, human wants, and the nature of
economic challenges.
Sources of Shariah: * Holy Qur'an
o Sunnah
o Ijma
o Ijtehad
o Qayas
Life Objectives: Ownership, wealth, and the objective of worldly
life.
Basic Economic Values:
o Tauheed (Oneness of Allah)
o Akhirat (Life after death)
o Risalat (Prophethood)
o Brotherhood & Equality
o Justice
o Concept of Halal & Haram
o Ethical sources of earning
Shariah-Based Transactions & Elements:
o Riba (Usury/Interest)
o Markup
o Profit sharing
Advanced Concepts
Distribution of Wealth: How wealth is circulated in an Islamic
Economic system.
Comparative Analysis: Comparison of Islam with Capitalism and
Socialism.
Islamic Banking & Development: Introduction to Islamic
commercial development.
Islamic Finance: Contracts and foreign exchange (Baig).
Financial Instruments: Tools used in Islamic finance.
Zakat: Its definition and significant economic role.
Meanings of Islamic Economics
What is Islamic Economics?
Economics: It is a discipline of life focused on searching for resources and
managing/arranging a home.
, Islamic Economics: The primary difference between conventional and
Islamic economics lies in the Divine Commandments. Human needs (food,
shelter, etc.) are the same regardless of whether a person is Muslim or
non-Muslim, but the method of fulfilling those needs distinguishes the two
systems.
Foundations of the Islamic Economic System
The Islamic economic system is built upon both Morality and Law.
Non-Islamic systems often rely solely on law, which is a major
shortcoming.
Islamic economics integrates moral ethics to ensure that the spirit of the
law is upheld, not just the letter.
Categorization of Goods: Halal vs. Haram
In Islam, all worldly items are divided into two categories: Halal
(Permitted) and Haram (Prohibited). The rulings regarding permissible
exchange and trade include:
One person’s gain should not result in another person’s loss.
Exchanges between parties must be just and fair. (Justice is a
commandment of Allah).
Relevant Quranic References:
Al-Baqarah (275-283)
Al-Imran (161)
Al-Ma’idah (38, 90)
Al-Nur (19, 33)
An-Nisa (10)
Prohibition of Hoarding (Mal Jama’ Karnay ki Mumanat)
Islam prohibits the hoarding of goods to artificially inflate prices for
personal gain.
When a person develops an excessive love for wealth, they lose empathy
for others.
Surah Al-Humazah: Explains that wealth accumulation and counting it
obsessively leads to spiritual and moral ruin.
Wealth itself is not “bad” (the Sahaba, like Hazrat Abu Bakr, were
wealthy), but it becomes a trial if it is not used to help the poor or if it is
kept out of circulation.
Concentration of Wealth
The concentration of wealth is a moral crime against the nation.
Qarun (Korah): The example of Qarun is cited as a warning. His refusal to
acknowledge wealth as a blessing from Allah and his refusal to help the
needy led to his downfall.
References: Al-Imran (180), At-Tawbah (34).
Commandment of Spending: In Sabilillah
Islam commands the spending of wealth for the welfare of the community
(Jama’at) and the nation.
