its islamic economic

1. Mohamad Amirul Hafiz B Othaman
IEE120022
Nur Amalia Binti Nazri
IEE120014
Islamic
Economi
c
System

2. Main core in Islamic Econs
• Concept of tawhid,rububiyyah and
tazkiyyah.
- It is a recognition of authority of God of the Creator,
that govern human in their life and livelihood in this world.
• Concept of the Creator
- Allah alone is the Creator,Master,Ruler,Controller and Sustainer of
the Universe.
- Man is created by Allah in the best mould, he is the khalifah of Allah
on earth. He is ordained to worship Allah and obey His Law and
establish justice in this world.

3. • Ownership concept
- Ownership can be divided to three
i. is only for consumption not to be owned
ii. Restricted as long as the owner is still alive
iii. There are several property own by public not individually use
- Specific ownership > Islam allows individual to have property of their
own, to protect the five (mind,soul,property,faith and dignity)
- Public ownership >managed by government e.g road, bridge etc
>not managed by government, e.g water, air, sun
• Justice,balance and impartiality
- Justice do create a balance and impartiality in economy.
- Cover between griping and extravagant simplicity, freedom with
regulations, material and spiritual, and between individual and
community.

4. • Economic practices that benefit and harm
- Things are halal as long as they giving no harm, if its gives harm to
anyone it will be automatically illicit and have to be removed.
- There are a lot of illicit activities which were prohibited such as riba’,
gambling, prostitution etc.
- And also illicit goods such as alcohol, pig and dog which may disturb
physically and mentally of ones except in emergency.
• Ruler’s role
- Ruler is one who has been entrusted to the earth by
Allah, responsible to its people, more than in terms of material and
spiritual.
- There are 8 responsible of a ruler : 1) implementation of laws and
regulations. 2) social security 3) income distribution 4) marketing
surveillance 5) employment and wage policy 6) fight against usury,
corruption and monopoly 7) resourse mobilization 8) equality of
opportunity.

5. Islamic Economic Operation Method of
Changing
• Ijtihad
- Most of economics issues been solved by ijtihad.
- Legal issues that had to succumb to the development is new
cases which had not found in Alquran and Assunnah.
- This bring to community,scholars or even government to give
their ijtihad in order to solve this issues but still have to refer
AQ and AS.
- They can define which method to use based on economic
size, region, residence, climate, resources, level of economic
growth,socio-cultural environment, and availability of
technology.

6. I.E. Operated Tools
• Zakah
- Zakah plays a big role in the distribution of income and
wealth. It makes a person contribute about 2.5% of their
money.
• Mudharabah (Qiradh)
- There are two parties. One of them conduct the business
and invest his efforts but without capital of his own and
the other contributes only capital without participating in
the business activity.
• Elimination of riba’
- the cause of one party (moneylender) escaped from any
risk by charging higher rate than the rate of the borrowed

7. Principles and Method
• Different human understanding of the
principles then appears a various Islamic
economic system
• 3 important part in the economy of the
philosophy, principles and operating

8. Organization of islamic economics
• Economic nationalism
- Its all about the implementation of economic policies based on
sharia, management of state-owned property, gov. intervention in
econ and sources of national income.
- The activities include :
1. Currency matters
2. Revenue
3. Inheritance
4. Land
5. Mining/mineral

9. • Economic trade
- It is about ‘halal’ profit gain by muslims in their work also from rolling capital,
investment, and many more.
- Private sector play a great role in this economic individually or approved
entity.
- Based on sharia, concept and activity in this section can be divided by two :
1. Profit sharing agreement : mudharabah and musyarakah.
2. Exchange agreement : cash payment, murabahah, bai’ bithamin ‘ajil, jual
salam, istisna’, ijarah, al-rahnu, kafalah,wakalah, wafak and currency
exchange.
• Economic society
- This section press on charity aspect and advocate certain people’s destiny
especially poverty people.
- In this economic, we have zakah, donation, waqaf qardh ul-hasan

10. Economic personnel
- Overall, economics activity will finally direct to achievement of the aim
score by the personnel.
- Whether they have different goals between one personnel to another,
they actually share the same root cause that is peaceful.
- Supplier would like to maximize the profit while consumer want to
maximize utility and also the government maximize charity of their people.
- Islam approve market mechanisme and also government intervention in
economy as long as it helps to solve community’s issues.
- Owners, consumers,operators, manufacturers, trades, laborers and
entrepreneurs are all personnel in economic’s activity