Dimas (2010) stated that economic development must be guided and come up from a deep

understanding which originally is rooted from ideals and supreme values of the Quran and the

Sunnah. According to Dimas, poverty, unemployment, and unjust income distribution have

been inherited which majority have been found in Muslims society. He stated that because

economic development in Islam is firmly goal-oriented, economic agents must define a

specific aim that does not exceed "the objectives of Syariah (Maqasid Al Shari'ah)". He

focuses more on classification of Maqasid AI-Shari'ah which can be classified into three

which are darruruyat (necessities), hajjiyat (requirements), and tahsiniyyat (beautification).

He also stated that economic growth must strive to provide both the spiritual and material

needs in a balanced manner. Hence, human character and behaviour are purposefully aligned

with shariah and Islamic teaching. As a result, in the modern Muslim world, the existence of

Islamic nations has a huge impact on the economic cycle. He also makes a comparison that

the Islamic view of development is totally differs from the conventional as it is more related

with spiritual based development. Islamic development is a goal-oriented as well as a value-

oriented activity committed to optimising the function of the human person in all aspects of

life in order to achieve falah (welfare) both in this world and in the next. The methodologies

utilised must represent Islam's worldview, which implies that every notion of economic

growth must be generated, raised, and kept in accordance with Shari'ah regulations.

Meanwhile, according to Ubaid Raza (2016), he discussed the concept of economic

development in economics but there are many different views from economists regarding

that. The initial definition of development was in terms of output growth through time, and

then in terms of per capita output. For example, according to Meier (1964) definition,

“economic development is a process whereby an economy’s real national income increases

over a long
period of time”. This definition fails to take into account the changes in the growth of

population. Thus, some economists define economic development in terms of an increase in

per capita income. And then, Ubaid Raza also explained about the Islamic concept of

economic development. Islamic economist combines religion and economics. In Islam, the

concept of development centers on two fundamental aspects of its religious system: the

divine and the human, as well as their interaction. It considers life as a whole and as part of

its unitary view of the universe, it does not consider the maternal and moral aspects of human

existence separately. Last but not least, he also mentioned that Endowment (Al-Wqaf) and

zakat are examples of the elements of economic growth and human development which are

necessary for social cohesion.

Mehmet Bulut and Cem Korkut (2020) discussed the Islamic philosophy and development

principles in the theories of institutional economics. In addition, institutions that contributed

to the early development of the Islamic world, a model of Islamic economic growth such as

institutions of zakat,sadaqah and waqf will be addressed. In theories of institutional

economic, they focus only on this world, while in Islamic economic perspective, they are

concerned with the present world and the Hereafter. And their goals are only to maximizing

profit or maximizing utility in this world in theories of institutional economics but in Islamic

economic perspective, their goals are doing welfare in the Hereafter and in this world. In

Islamic perspective on economic development, happiness (sa'ada) is a comprehensive notion

that extends beyond mere contentment to include the balanced realisation of both the material

and spiritual components of human existence. This indicates that the Muslim community's

objectives should not be restricted just to increasing financial comfort and productivity, but

should also encompass the pursuit of peace, justice, and proper behaviour.

 
 1. Dimas Bagus Wiranata Kusuma. (2010). Economic Development in Islamic

Perspective. Retrieved from

http://repo.unand.ac.id/5033/1/Dimas%20Bagus%20Wiranata%20Kusuma.pdf

Dimas (2010) stated that economic development must be guided and come up from a

deep understanding which originally is rooted from ideals and supreme values of the Quran

and the Sunnah. According to Dimas, poverty, unemployment, and unjust income distribution

have been inherited which majority have been found in Muslims society. He stated that

because economic development in Islam is firmly goal-oriented, economic agents must define

a specific aim that does not exceed "the objectives of Syariah (Maqasid Al Shari'ah)". He

focuses more on classification of Maqasid AI-Shari'ah which can be classified into three

which are darruruyat (necessities), hajjiyat (requirements), and tahsiniyyat (beautification).

He also stated that economic growth must strive to provide both the spiritual and material

needs in a balanced manner. Hence, human character and behaviour are purposefully aligned

with shariah and Islamic teaching. As a result, in the modern Muslim world, the existence of

Islamic nations has a huge impact on the economic cycle. He also makes a comparison that

the Islamic view of development is totally differs from the conventional as it is more related

with spiritual based development. Islamic development is a goal-oriented as well as a value-

oriented activity committed to optimising the function of the human person in all aspects of

life in order to achieve falah (welfare) both in this world and in the next. The methodologies

utilised must represent Islam's worldview, which implies that every notion of economic

growth must be generated, raised, and kept in accordance with Shari'ah regulations.

2. Ubaid Raza. (2016). Islamic Perspective on Economic Development. Retrieved

from
 http://www.krishisanskriti.org/vol_image/

08Jun201610064426%20%20%20%20%20MD%20%20UBAID%20RAZA

%20%20%20%20%20%20%20%20125-128.pdf

Meanwhile, according to Ubaid Raza (2016), he discussed the concept of economic

development in economics where there are many different views from economists regarding

that. The initial definition of development was in terms of output growth through time, and

then in terms of per capita output. For example, according to Meier (1964) definition,

“economic development is a process whereby an economy’s real national income increases

over a long period of time”. This definition fails to take into account the changes in the

growth of population. Thus, some economists define economic development in terms of an

increase in per capita income. And then, Ubaid Raza also explained about the Islamic concept

of economic development. Islamic economist combines religion and economics. In Islam, the

concept of development centers on two fundamental aspects of its religious system: the

divine and the human, as well as their interaction. It considers life as a whole and as part of

its unitary view of the universe, it does not consider the maternal and moral aspects of human

existence separately. Last but not least, he also mentioned that Endowment (Al-Wqaf) and

zakat are examples of the elements of economic growth and human development which are

necessary for social cohesion.

3. Bulut, M.; Korkut, C. On Islamic Economic Development. Preprints 2020,

2020030111

Mehmet Bulut and Cem Korkut (2020) discussed the Islamic philosophy and

development principles in the theories of institutional economics. In addition, institutions that

contributed to the early development of the Islamic world, a model of Islamic economic
growth such as institutions of zakat,sadaqah and waqf will be addressed. In theories of

institutional economic, they focus only on this world, while in Islamic economic perspective,

they are concerned with the present world and the Hereafter. And their goals are only to

maximizing profit or maximizing utility in this world in theories of institutional economics

but in Islamic economic perspective, their goals are doing welfare in the Hereafter and in this

world. In Islamic perspective on economic development, happiness (sa'ada) is a

comprehensive notion that extends beyond mere contentment to include the balanced

realisation of both the material and spiritual components of human existence. This indicates

that the Muslim community's objectives should not be restricted just to increasing financial

comfort and productivity, but should also encompass the pursuit of peace, justice, and proper

behaviour.