Islamic economics 

(Arabic: ‫)االقتصاد اإلسالمي‬
The term means knowledge of economics or economic activities and processes in terms of Islamic
principles and teachings.[1]Islam has a set of special moral norms and values about individual and
social economic behavior. Therefore, it has its own economic system, which is based on its
philosophical views and is compatible with the Islamic organization of other aspects of human
behavior: social and political systems.[2]
is a term used to refer to Islamic commercial jurisprudence (Arabic: ‫فقه المعامالت‬, fiqh al-mu'āmalāt),
and also to an ideology of economics based on the teachings of Islam that takes a middle ground
between the systems of Marxism and capitalism, mostly similar to the labour theory of value, which
is "labour-based exchange and exchange-based labour".[3][4]
Islamic commercial jurisprudence entails the rules of transacting finance or other economic activity in
a Shari'a compliant manner,[5] i.e., a manner conforming to Islamic scripture (Quran and sunnah).
Islamic jurisprudence (fiqh) has traditionally dealt with determining what is required, prohibited,
encouraged, discouraged, or just permissible,[6] according to the revealed word of God (Quran) and
the religious practices established by Muhammad (sunnah). This applied to issues like property,
money, employment, taxes, loans, along with everything else. The social science of economics,[6] on
the other hand, works to describe, analyse and understand production, distribution,
and consumption of goods and services,[7] and studied how to best achieve policy goals, such as full
employment, price stability, economic equity and productivity growth.[8]
Early forms of mercantilism and capitalism are thought to have been developed in the Islamic
Golden Age[9][10][11] from the 9th century and later became dominant in European Muslim territories
like Al-Andalus and the Emirate of Sicily.[12][13]
The Islamic economic concepts taken and applied by the states Age of the Islamic Gunpowders and
various Islamic kingdoms and sultanates led to systemic changes in their economy. Particularly in
the Mughal India,[14][15] its wealthiest region of Bengal, a major trading nation of the medieval world,
signaled the period of proto-industrialization,[16][17][18][19] making direct contribution to the world's
first Industrial Revolution after the British conquests.[20][21][22]
In the mid-twentieth century, campaigns began promoting the idea of specifically Islamic patterns of
economic thought and behavior.[23] By the 1970s, "Islamic economics" was introduced as an
academic discipline in a number of institutions of higher learning throughout the Muslim world and in
the West.[5] The central features of an Islamic economy are often summarized as: (1) the "behavioral
norms and moral foundations" derived from the Quran and Sunnah; (2) collection of zakat and
other Islamic taxes, (3) prohibition of interest (riba) charged on loans.[24][25][26][27]
Advocates of Islamic economics generally describe it as neither socialist nor capitalist, but as a "third
way", an ideal mean with none of the drawbacks of the other two systems.[28][29][30] Among the claims
made for an Islamic economic system by Islamic activists and revivalists are that the gap between
the rich and the poor will be reduced and prosperity enhanced[31][32] by such means as the
discouraging of the hoarding of wealth,[33][34] taxing wealth (through zakat) but not trade,
exposing lenders to risk through Profit sharing and venture capital,[35][36][37] discouraging
of hoarding of food for speculation,[38][39][40] and other activities that Islam regards as sinful such as
unlawful confiscation of land.[41][42] However, critics like Timur Kuran have described it as primarily a
"vehicle for asserting the primacy of Islam", with economic reform being a secondary motive.[43][44]