Islamic Financial Concept

PRESENTATION BY: MUAZZAM ZULQARNAIN

 Contents

 Introduction of The Islamic Financial Concept

 Economic Struggle
 Motivation For Lawful Earning
 Poverty Eradication
 Distinction between Lawful and Unlawful Earning
 Usury is Prohibited
 Code Of Conduct for Trade
 Prohibition of Lavish Spending
 Prohibition of Concentration of Wealth
 Introduction of The Islamic Financial Concept

The major concept of Islamic economics and finance is taken from Quran and Sunnah which is Universally
strong and permanent and will remain till the Day of Judgement while the western economic/banking
system is based upon Human approach and experience which is poor, unreliable, limited and variable.
A Muslim is obliged to follow the conditions and parameters stated in the Holy Quran and Sunnah.
Quran Says, “O people! Follow what has been sent down to you from your Lord, and do not
go behind other masters leaving Him” (3:Surah Al Araf). In this Verse of the Holy Quran, it is
clearly stated not only to the Muslims but all the people to follow the Sunnah and verify it from the
Divine Script, and to avoid Shirk and trusting on unreliable context. It is also mentioned in the Quran,
“And it is not befitting to a Muslim man or Muslim woman, when Allah and His
Messenger have decreed something that they would have any choice in their matters,
and whoever disobeys Allah and His Messenger, he undoubtedly, has strayed away
manifestly” (36:Surah Al Ahzab), where its transparent that if a man or a woman try to ignore the
decisions and planning of Allah and disobeys His Messenger, that person is surely in wrong direction
and will be the responsible of his own destruction. The Prophet added, ”He who obeys me, obeys Allah,
and he who disobeys me, disobeys Allah.”(2957:Sahih Al Bukhari).
Islam is the Perfect Religion, and where it declared social and moral principles, there it has also guided the
humanity in economy. At multiple locations in Quran, Livelihood is been said “Fazalullah” which means
(Grace of Allah), and “Khair”, which means (Excellent and Benevolent) is also used to represent it. This
reminds the person that it is one of the Attribute of Allah, so he/she is required to imply it in their lives
and use the economic resources for the purposes of Islam as set for individual and collective life.
 Economic Struggle

Islam has declared the entire earth as a field for humankind

and has encouraged man to strive for the greater good of
his life and the creation of God. In the term of economics
it can be called the policy of Maximization of production.
Islam is a very open religion that gives the education as
well as ethics for all the social, economical and individual
issues with the best examples from the collection of
Ahadith and Sunnah. It has persuaded humans to work
hard on various economic struggles and achievements.
 Motivation For Lawful Earning

Unemployment, being unskilled and begging have been declared

unattractive and is strongly advised not to be done. There is a
hadis that states (it does not suit any of you to do nothing and
does not look for sustenance and then say “Allah bless me with
sustenance”, you have to work/strive for it side by side with
praying for it, therefore you should know that gold and silver
do not fall from the sky). In Quran Allah says, “and forget
not your share in the world” (77:Surah Al Qasas). The
Holy Prophet(SAW) says (Striving Lawful Occupation right
after Fajar prayer is one of the Islamic Obligations.)
One of the basic principles of Islamic economics is to provide
economic services to all human beings.
 Poverty Eradication

The problem of poverty prevention also plays an important role in the economic
policy of Islam. All human beings should be provided with equal
opportunities for economic struggle. The man who can no longer meet his
basic requirements due to sickness, infirmity, disability, old age, loss of the
one who supports him or because his income cannot meet his needs, is
supported by the Islamic government.
He is given a share from the money collected from zakat, khums and other
sources. Man's life is financially secure in Islam if he is unable to work. But, if
he can work and does not want to work, then he is deprived of any financial
support. Islam wants man to be an active, fruitful worker who depends on
himself to secure his needs and provisions. Imam Ja'far al-Sadiq is quoted as
saying (Allah, the Most Powerful and High, certainly made in the wealth of
the rich an adequate share for the poor, if it was not so He would certainly
make their share greater. If they are needy, it is because some of the
rich refuse to give them their share.)
Distinction between Lawful and Unlawful Earning
Usury is Prohibited
Code Of Conduct for Trade
Prohibition of Lavish Spending
Prohibition of Concentration of Wealth