Featured Books

more books

Must Read

  1. Islamisation of Knowledge: Problems, Principles and Prospective click
  2. Islamic Thought in the Modern World click
  3. An Approach to Knowledge and Human Limitations click
  4. The Balance Sheet of Western Philosophy in this Century click
  5. Man between Two Laws: A Qur’anic Perspective in Understanding Self and Understanding the Other click


An Introduction to Islamic Economics PDF Print E-mail


One: Islamic Economics : An Overview
Two: The Nature of Islamic Economics
Three: The Methodology of Islamic Economics
Four: Islamic Economics in Practice
Five: Hope for the Future
Six: Direction of Future Research


The present book aims at showing the contours of an Islamic economy. Its main theme is that the neo-classical economics which has fashioned the present-day world has outlived its utility. Its approach is narrow, its assumptions are unrealistic, and its strategies inhuman. It has landed humanity into an abyss of problems. If human thinking does not transcend the basic framework of neoclassical economics, the future of man on this globe is pretty bleak. In this background, the Islamic economic precepts provide a ray of hope. The present book invites the reader to cast an objective look at the principles of Islamic economics and perceive their potential. The book addresses both the common reader and the professional economist trained in the West. It is not, however, a detailed exposition of the subject. Instead, it attempts to give a bare introduction to the subject of Islamic economics.

Chapter one gives a broad overview of the subject. It is intended for those who cannot spare the time to go through the entire book. It is a quick run-through of the main themes of the subject.

Chapters two and three are more in the nature of an academic excursion into formalizing the basic precepts of Islamic economics. They define the subject and spell out its scope and methodology. They are meant for professional economists and students of Islamic economics at the university level.

Chapter four gives a brief resume of the practice of Islamic economics in the present day world. It shows the eagerness of the Muslim countries to put into practice, albeit inadequately, the basic principles of Islamic economics.

The last two chapters argue that Islamic economics is the economics of the future and that neo-classical economics can benefit from its principles and methodology.

Two appendices follow the main text. The first discusses the liability of the shareholders in a joint stock company. The second deals with discounting for project evaluation. We believe that as compared to capitalism, Islam has a distinctive position on these issues.


One Islamic Economics : An Overview
1. Islamic Worldview
2. Basic Assumptions
 2.1 Human nature  2.2 Materialism  2.3 Ownership  2.4 Universalism
3. Economic Organization
 3.1 Economic Power  3.2 Equilibrium at Less than Full Employment  3.3 Islamic Economic Organization
4. Role of Money
 4.1 Interest and Public Debt  4.2 Interest and Foreign Exchange Instability  4.3 Interest and Environment  4.4 Interest and Inflation  4.5 Islamic Concept of Money  4.6 Banking in Islamic Economy
5. Consumer Behaviour
 5.1 Consumerism  5.2 Simple Living and Intensive Use of Resources  5.3 Islamic Values and Consumer Behaviour  5.4 Conservation of Resources
6. Poverty
 6.1 Contemporary Economic Order  6.2 Social and Political Underdevelopment  6.3 Over-population  6.4 Urbanization  6.5 Technology  6.6 Social Security System  6.7 Fighting Poverty in an Islamic Framework
7. Fiscal Management
 7.1 Islamic Principles of Taxation  7.2 Deficit Financing
8. Diffusion of Knowledge
9. Concluding Remarks

Two The Nature of Islamic Economics
1. The Recent Upsurge
2. Definition of Islamic Economics
 2.1 Falah  2.2 Resources  2.3 Cooperation and Participation
3. Sources of Islamic Economics
4. The Approach of Islamic Economics

Three The Methodology of Islamic Economics
1. Introduction
 1.1 Why Methodology at all?  1.2 Need for Defining the Methodology of Islamic Economics
2. Methodology of Islamic Economics
 2.1 The Hard Core  2.2 The Role of Reason  2.3 Inductive or Deductive Reasoning
 2.4 Assumptions and Method  2.5 Problem-Solving  2.6 Process of Theorizing
3. Comparison of the two Methodologies
4. Some Related Issues
 4.1 Role of Revelation  4.2 The Assumption of an Ideal Islamic Society
 4.3 General Theory of Islamic Economy
5. Concluding Remarks

Four Islamic Economics in Practice
1. Islamic Banks
2. Zakah
3. Insurance
4. Waqf
5. Al-Hisbah

Five Hope for the Future
1. Introduction
2. Islamic Approach to Contemporary Economic Problems
 2.1 Unemployment and Inflation  2.2 Economic Development  2.3 Technology
 2.4 Economic Power
 2.5 Consumer Sovereignty
 2.6 Role of Public Policy
3. Concluding Remarks

Six Direction of Future Research
1. Holistic Approach
2. Search for an Interest-free International Economic Order
3. Technology
4. Economic Power