Islamic Economic System Essay

Islamic Economic System implies a mood of satisfying the economics needs of the members of organized society in accordance with is injection of Quran and Sunnah. Its derived from the teachings of the Holy Quran and explained in his Ahadith by the Holy Prophet (SWT). This system proceed in this original miscellanea till the death of the Second caliph Hazrat Umar (RA). The system believes in the private ownership of the means of production, distribution and substitution which ar managed and controlled by individuals or groups of individuals for private profit. Islam enjoins investment of money and different resources it issues clear injunctions on the legitimate ways of investing them. The Jews confused Riba with mess they would call Riba a kind of trade. Unrestricted economic freedom and non-interference of the evoke in such freedom is some other feature of conventional economy. Competition, which is another feature of conventional, leads to the destruction of minor enterpri ses and firms.This encourages merger of smaller business organisations into study ones and thus monopolies or cartels are established. The Institution of banking and interest is the life-blood of conventional form of economy. For business, trade and industry especially for big projects and economic ventures, huge capital are required which no individual or firm contribute arrange. To pay Zakat on ones wealth and post is extremely compulsory for a Muslim. Abu Huraira has reported Gods Messenger as maxim If God gives anyone property and he does not pay the Zakat on it, his property will be made to appear to him on the solar day of resurrection as a large bald snake with black sight over its eyes. It will be put round his neck on the day of resurrection, then seize his jaws, then say, I am your property I am your treasure.The only verses which state not mere good norms but rather economic rules or regulations are the verses dealing with zakaat (tax on surplus wealth) and rib a (usury/interest). Establish worship, pay the poor-due, and bow your heads with those who bow (in worship). 243. In Islam in that location is no conflict between matter and soul, as there is no separation between economy and religion. Its characteristics, value and essence are appreciated by Muslims and the non-Muslims. The over-arching values of Islamic economics lie in the principle that it is an economic strategy that can achieve unity and consent between the material and the spiritual life of the people.