Name: Danish Ali

SAP ID: 29660

Assignment#02

Discuss the Islamic System of Life.

a. Social & Political System of Islam:

Islam is a universal religion and final version of past divine religions. It

provides guidance in every sphere of human life. It is the duty of
religion to establish a peaceful existence in society. Islamic political
system provides peaceful co-existence for pluralistic society. Examples
of the period of pious Caliphs is a great evidence in this concern. There
are three types of Islamic government, namely Immamat, Immarat,
and Khalafat. Furthermore there are three types of Khilafat; general,
individual and national Caliphate. Islam provides very clear instructions
for the selection of a caliph. Head of Islamic state should be a Muslim.
According to Sharia, firm belief on the oneness of Allah and finality of
Prophethood in the Prophecy of Hazrat Muhammad (PBUH) are basic
conditions for being a Caliph in an Islamic state. In this political system
Allah is the only sovereign of the state. It is the duty of all Muslims to
obey Allah, his apostle and ruler of the time. All the matters of the state
are discussed in Majlas e Shura. Ruler of the state is answerable before
his subjects and Allah almighty. In Islam, politics and religion are not
different departments.

The conception of society in Islam is much more comprehensive, for it

synthesises material and spiritual aspects of human life and views
society as an organic whole, where all aspects of life considered as
parts of a body, and where the affliction of individual part will equally
affect the whole. Islam perceives society as an association, which is
formed in accordance to the divine law with the purpose of peaceful
coexistence. The Divine revelation as contained in the al-Quran and
the Sunnah of the Prophet Muhammad (PBUH) constitutes the
foundation of social order in Islamic society. Therefore, there is no room
for sectarianism or racism in Islamic conception of society. It is a
universal social system based on the principle of tawhid (Oneness of
God), which is the cornerstone of the world unity. It is through
submission to the law of God that Islamic society attains universal
characteristic and transform all humankind to a single brotherhood.
b. Educational System of Islam
Islam, in theory as well as in practice, has always promoted knowledge.
Distinctive mark of human beings over the angels is knowledge:
"And Allah taught Adam all the names…”
(2:31)
The first verses of the Quran began with the word:
"Read. Read in the name of thy Lord who created; [He] created the
human being from blood clot. Read in the name of thy Lord who taught
by the pen: [He] taught the human being what he did not know. "
(96: 1-5).
The Qur'an says.
"Are those who have knowledge equal to those who do not have
knowledge?!”
(39:9).
The Prophet of Islam (peace be upon him and his progeny) has also
emphasized the importance of seeking knowledge in different ways:

Time: "Seek knowledge from the cradle to the grave."

Place: "Seek knowledge even if it is far as China."

Gender: "Seeking of knowledge is a duty of every Muslim"

Source: "Wisdom is the lost property of the believer, he should take it

even if finds it in the mouth of a mushrik."

The Prophet did not only preach about importance of knowledge, he

also gave examples of promoting knowledge. In the very first battle
between the Muslims and unbelievers or Mecca, known as the war of
Badr, the Muslims gain victory and caught seventy kuffars as prisoners
of war. One of the criteria of releasing the POWs devised by the
Prophet was that those who were literate among the prisoners could
go free if they teach ten Muslim children how to read and write.

Knowledge in Islam is normally divided into two broad categories: there

is a famous saying "al-'ilm "ilman: 'ilmu- adyan wa ilmu abdan -
knowledge is of two kinds: the knowledge concerning religions and the
knowledge concerning [human and physical] bodies." What has been
mentioned on the importance of knowledge refers to both, the
religious as well as the secular knowledge.
c. Islamic Economics, the concept of Banking & Takaful
Islamic banking refers to a system of banking that complies with Islamic
law also known as Shariah law. The underlying principles that govern
Islamic banking are mutual risk and profit sharing between parties, the
assurance of fairness for all and that transactions are based on an
underlying business activity or asset.

These principles are supported by Islamic banking's core values

whereby activities that cultivate entrepreneurship, trade and
commerce and bring societal development or benefit is encouraged.
Activities that involve interest (riba), gambling (maisir) and speculative
trading (gharar) are prohibited.

Through the use of various Islamic finance concepts such as ijarah

(leasing), mudharabah (profit sharing), musyarakah (partnership),
financial institutions have a great deal of flexibility, creativity and
choice in the creation of Islamic finance products. Furthermore, by
emphasising the need for transactions to be supported by genuine
trade or business related activities, Islamic banking sets a higher
standard for investments and promotes greater accountability and risk
mitigation.

Takaful is commonly referred to as Islamic insurance; this is due to the

apparent similarity between the contract of kafalah (guarantee) and
that of insurance. However, takaful is founded on the cooperative
principle and on the principle of separation between the funds and
operations of shareholders, thus passing the ownership of the Takaful
(Insurance) fund and operations to the policyholders. Muslim jurists
conclude that insurance in Islam should be based on principles of
mutuality and co-operation, encompassing the elements of shared
responsibility, joint indemnity, common interest and solidarity.

In takaful, the policyholders are joint investors with the insurance

vendor (the takaful operator), who acts as a mudarib – a manager or
an entrepreneurial agent for the policyholders. The policyholders share
in the investment pool's profits as well as its losses. A positive return on
policies is not legally guaranteed, as any fixed profit guarantee would
be akin to receiving interest and offend the prohibition against riba.
d. Family Life in Islam

Islam takes the family as a divine institution with marriage as its nucleus.
A human being is born with a father and a mother to protect the being
and bring it up. When this child grows up, it understands the
importance of life and then is joined by a person to expand his family.
The people who collectively build up the pillars of the family or
husband, wife, and the children. These people came under relations
like parents and siblings.

• Cultivating Islamic Values.

The main focus of a Muslim family unit is cultivating Islamic values
in their line. A family that begins with the sacred agreement of
nikah, where a man and woman agrees to stay together for the
sake of Allah will eventually come under the blessings of the
Almighty. Similarly, when their family extends, the upbringing and
training of kids would be done on Islamic scale. The family values
should be based purely on Islamic teachings. Either they are
personal habits, dressing, food manners, relationships or
etiquettes –every single detail of a family’s lifestyle should be set
according to the Quran and Sunnah.
• Fulfilling Complete Rights of Family Members
Islam gives a full set of rights and responsibilities to every member
of the family. Either it’s the couple, parents, kids or siblings, every
person has their own rights and responsibilities. There is a
complete detail of the rights of all family members in the Quran.
Husband and wife or parents and kids –Quran has given
complete guidelines for treating the relations.
• Meeting Family Needs with Halal Earnings
When it comes to the finances, women, kids and old members
are the responsibility of the man of the house, while the women
of the family are responsible to take care of household and kids.
But all of these should be done on mutual understanding –and
without overburdening any person.