Definition of Islamic Economics

Definition of Islamic Economics-The term "Islamic economy" comes from two words namely Economic and Islam. Economy comes from ancient Greek, which were first discovered by Xenophon (440-355SM), which consists of the word "Eikos" which means household and "nomos" means the rules and norms. The word "Islam" comes from Arabic meaning "peaceful (silmun), submission (taslimun), adherent (aslamun), ladder (sullamun) and welfare (Salamun). Dri above definition, the definition of Islamic economics is a household rule that creates peace, surrender or sincerity to serve, needs to God, glory and prosperity to the short term (the world) and long-term (hereafter).


In terminology (definitive), Islamic Economics is the grammar rules for the conduct of household consumption, production, distribution, and circulation patterns using the teachings of Islam, in order to achieve balance and synergistic relationship between the various interests of life.


Definition of Islamic Economics experts say:
  • Yusuf Qaradawi, the definition of Islamic economics is based on the divine economy. This system starts from God, aims to end in God, and use the means that can not be separated from the shari'ah of God.
  • M.A. Mannan, Definition of Islamic Economics is a social science that studies the economic problems of the people who were inspired by Islamic values.
  • M. Al-Faujani Syauqi, Definition of Islamic Economics with all its economic activities and their rules are based on points of Islamic teachings about the economy.
  • Monzer Kahf, Definition of Islamic Economics with study of the process and the suspension of human activities related to production, distribution and consumption in Muslim society.
  • Hasanuz Zaman in his book "Economic Functions of an Islamic State (1984)" provides a definition: "Islamic Economics is the knowledge and applications and rules of the shariah That Prevent injustice in the requisition and disposal of material resources in order to Provide satisfaction to human being and enable Them to perform They obligations to God and the society "
  • The MN Siddiqi in his book "Role of State in the Economy (1992)" provides a definition: "Islamic economics is 'the moslem thinker' response to the economic challenges of Their times. They were the resource persons in this Endeavor aided by the Quran and the Sunnah as well as by reason and experience ".
  • Heider Nawab Syed Naqvi in ​​his book "Islam, Economics, and Society (1994)" gives the formula: "Islamic economics is the Moslem representative's behavior in a typical moslem society".
  • S.M. Hasanuzzaman, "Islamic economics is the knowledge and application of the teachings and sharia rules that prevent injustice in seeking and spending of resources, in order to provide satisfaction for people and enable them to carry out their obligations toward God and the community."
  • M.A. Mannan, "Islamic economics is a social science that studies the economic problems of the people to have Islamic values."
  • Khursid Ahmad, Islamic economics is "a systematic effort to try to understand the economic problems and human behavior in relation to these issues from an Islamic perspective.
  • M.N. Siddiqi, Islamic economics is a response to "Muslim thinkers of the economic challenges of their times. In this effort they were assisted by the Qur'an and As Sunnah as well as reason and experience.
  • M. Akram Khan, "Islamic economics aims at studying human welfare (falah) is achieved by organizing the resources of the earth on the basis of cooperation and participation.
  • Louis Cantori, "Islamic economics is nothing but an attempt to formulate a science of human-oriented economy and society oriented to resist the excesses of individualism in classical economics."Economics is a matter of turning property guarantees among humans, so humans can maximize the function of his life as a servant of God to reach falah in the world and the hereafter (the Hereafter). Economics is a collective activity. 
Objectives to be achieved in an Islamic economic system based on the basic concept in Islam is monotheism  by reference to the Qur'an and Sunnah are: 1. Fulfillment of basic human needs including food, clothing, shelter, health, and education to every strata of society. 2. Ensuring equality of opportunity for all people 3. Prevent concentration of wealth and minimize inequality of income and wealth distribution funds in society. 4. Ensure to everyone the freedom to adhere to moral values 5. Ensuring stability and economic growth Institutional framework of an Islamic society proposed by the MN Siddiqi in his article "Teaching Economics in An Islamic Perspective" is:
  1. Although the absolute ownership belongs to Allah SWT, but in Islam permitted a private property, which is limited by obligations to others and moral boundaries are governed by sharia.
  2. The freedom to try and create highly valued, but still get the limits in order not to harm others in this competition must be fair competition that took place.
  3. Joint venture (joint enterprise) must be the main foundation in collaboration, where the system of profit sharing and share the risks that may arise is applied.
  4. Consultation and deliberation should be the mainstay in public decision making.
  5. State is responsible and has the power to regulate individuals in every decision in order to achieve the goals of Islam.
Four main values ​​that can be drawn is:
  1. Positive role of the state
  2. Moral limits on freedom of owned
  3. Equality of obligations and rights
  4. Deliberation and effort to always cooperate. 
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