This document discusses the Islamic viewpoints on factors of production according to a lecture on Islamic economics. It identifies the four main factors of production as land/natural resources, labor, capital, and organization/entrepreneurship. For each factor, it provides relevant Quranic verses and explanations of their meanings and importance in an Islamic economic framework.

1. IBM 11013
Introduction to Islamic Economics
Islamic View points of Production
Lecturer in charge
RA.Sarjoon
06.06.2011
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2. Production
• Islam considers production as a means using
the wealth and the effort of the person to
produce commodities which satisfy his living
needs on this earth in a concept of Halal and
Haram, and any means used outside this
concept no matter the goods are do not
consider production in the view of the
Shari’ah.
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3. Factors of Production
1. Land /Natural Resources
2. Labor
3. Capital
4. Organization /Entrepreneurship
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4. 1. Land/ Natural Resources
(Meaning and Importance)
1. Earth (Soil) (2:36)
2. Minerals (57:25)
3. Mountains (15:19) (79:32,33)
4. Forests (11:80)
5. Animals (20:54)
6. Climate and Rainfall (16:10,11)
7. Wider Significance of Land (20:53)
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5. 2. Labor
(Meaning and Importance)
1. Man was created to work (90:04) (76:28)
2. Physical Labor (28:27)
3. Intellectual Labor (12:54-56)
4. Supply of Labor
a) Efficiency of Labor
b) Mobility of Labor
c) Population
5. Freedom of Occupation(4:97,98)
6. Dignity of Labor
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6. Supply of Labor(4)
1. Efficiency of Labor
a) Physical and Moral Health (28:26)
b) Mental Fitness (12:55)
c) Education and Training (2:269)
d) Beauty and Grace (27:88)
2. Mobility of Labor(4:97)
3. Population(6:151)
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7. 3. Capital
(Meaning and Importance)
1. Accumulation of Capital
2. Avoidance of Extravagance
3. Hoarding
4. Peace and Security
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8. Accumulation of Capital(1)
a) Growth of Income
1. Compulsory Measures
a. Payment of Zakath
b. Prohibition of Interest
2. Optional Measures
a. To encourage growth of capital in the community
b. Re-investment of cash
c. Leaving successors wealthy
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9. b) Avoidance of Extravagance (7:31),(17:26,27)
c) Hoarding (70:18),(9:34)
d) Peace and Security (2:193),(22:40)
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10. 4. Organization
(Meaning and Importance)
1. Business Contracts (2:282)
2. Forms of Business Organizations
a. Profit Sharing (Mudaraba/Qirad)
b. Partnership
a. Muzarea and Musaqath
b. Shirkath Al-Mufawadha
c. Shirkath Al-Anan
d. Hirkath Al-Sanai
e. Shirkath Al-Wujooh
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11. c. Joint-Stock Companies
d. Business on Commission
e. Government undertaking
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