04 Islamic Concept of Ownership

Economic Ideology of Islam
Islamic Concept of
Ownership
Islamic Concept of Ownership
Ownership
(Definition,
Reasons / Causes &
Nature
Ownership
(Definition, Causes
& Nature:
Definition:
• It means legal
possession and
authority of disposal
something valuable
in shariah
• It entails right of
control and
responsibilities for
risk
Ownership
(Definition, Causes
& Nature:
Reason & Causes:
• To acquire
authorized and
permitted things
 Through Contract
 Compensatory
contract like sale
 Non Compensatory
Contract like gift
Ownership
(Definition, Causes
& Nature:
Reason & Causes:
• To acquire
authorized and
permitted things
 Through Inheritance
as Successor
 Through increase in
value
Ownership
(Definition, Causes
& Nature:
Nature:
• Ownership may be
of following types:
 Ownership of Assets
 Ownership of debt
 Ownership of
Usufruct or benefit
Ownership
(Definition, Causes
& Nature:
Characteristics:
• The owner of a
physical thing has
ownership of its
benefits too but not
the other way round
Ownership
(Definition, Causes
& Nature:
Characteristics:
• Ownership of
physical items is not
END time bound but
ownership of benefits
is time bound
• Ownership of
physical items can not
destroy by death of
owner but it transfers
The Real Nature of

Ownership (I)
The Real Nature of
Ownership (I):
• It can be discussed
under the following
heads:
 Trust
 Demand of
Vicegerency on
Earth
 Open to general use
 Trial
 Acting upon the
commands of
The Real Natural of
Ownership (I):
Trust:
• Allah is the master of
every thing in the
universe
• Man himself is the
creation of Allah
• The rights of
ownership by man
have been wanted to
him by Allah
The Real Nature of Ownership (I):
‫َاْل ْر ُض َو ْن‬ ‫ْل‬

The Quran Says:
‫ْن ْم ْو َن‬
‫َم ِفْيـَهآ ِا ُك ْنُتـ َتْعَلُم‬ ‫ُق ِّلَمِن ا‬
(O, Hazrat Muhammad, SAW) Ask (them).
For whom is the land and all that is in it, if
you have knowledge?. [Q23: 84]

The Quran Says:‫َا َذ‬
‫ْل اَل ُرْو َن‬ ‫ْو ْو َن‬
‫َسَيُق ُل ِلّلٰـ ِهۚ ُق َف َت َّك‬
They will say (at once) For Allah. Then ask
(them) why do you not think?. [Q23: 85]

‫َّو َو ُر َو اَل‬ ‫ْل ْن‬
The Quran Says:
‫ْن ْم ْو َن‬ ‫ُر‬ ‫ْو ُت‬
‫ُك ِّل َشْى ٍء ُه ُيِجْيـ ُيَجا َعَلْيِه ِا ُك ْنُتـ َتْعَلُم‬ ‫ُق َم ِبَيِد ٖه َمَلُك‬
(O, Hazrat Muhammad, SAW) Ask (them) in
whose hand is the kingdom of all the things
and He gives protection and no one can give
protection to any one against Him if you have
knowledge?[Q23: 88]

‫ْل‬
The Quran Says:
‫ُرْو َن‬ ‫ْو ْو َن‬
‫َسَيُق ُل ِلّلٰـ ِهۚ ُق َفَا ّنٰـ ى ُتْسَح‬
They will reply (at once) (such a kingdom is)
For Allah. Then ask them why do you come
under the magic. [Q23: 89]
The Quran Says:
‫ْم‬ ‫ْو‬ ‫ْو‬ ‫َا ْم َا‬ ‫ْو‬ ‫َو ْن ُد‬ ‫ْر‬ ‫َاْل‬ ‫َو‬ ‫َو‬
‫ِّلَّلِه َما ِفى الَّسَما اِت ْن َما ِفىَوا ِض ۗ ِاْن ُتْب ا َوَما ِفٓى ْنُفِسُك ُتْخُف ُه ُيَحاِسْبُك ِبِه‬
‫الّل ُهۖ َف ْغِفُر ِلَم َّيَشآُء ُيَع ُب َم َّيَشآُء ۗ الّل ُه َعٰلى ُك َش َق ْيٌر‬
‫ِّل ْى ٍء ِد‬ ‫ٰـ‬ ‫ِّذ‬ ‫ٰـ َي‬
Whatever is in the heavens and whatever is in the
earth belongs to Allah. And you may reveal or you
may hide that which is in your heart, Allah will
account you for it. Then He will forgive whom He
wants, He will punish whom He wants. And Allah is
powerful over every thing. [Q2: 284]
The Real Natural of
Ownership (I):
Trust:
• It is clear from these
verses of Quran that
it is Allah who has
granted to man
ownership rights
over various things
and these things are
in the nature of a
sacred trust with
man
The Real Natural of
Ownership (I):
Trust:
• Man as the
vicegerent of Allah
has the right of using
these things, subject
to the provision that
he must use them in
accordance with the
will of Allah
The Real Natural of
Ownership (I):
Demand of
Vicegerency on
Earth:
• Man has been
appointed vicegerent
on earth and he has
been charged with
the duty of achieving
well-being in the
both worlds
The Real Natural of
Ownership (I):
Demand of
Vicegerency on
Earth:
• The purpose of
everything that exist
in the world is to
provide to man an
opportunity to
succeed in the
achievement of this
goal
‫ْم َّو ْر ُز ْو ْم‬ ‫َل‬ ‫َء َا َو ُم‬ ‫َو اَل‬

The Quran Says:
‫ُتْؤُتوا الُّسَفَهآ ْم اَلُك اَّلِتْى َجَع الّلٰـ اًلُه َلُك ِقَياًما ا ُق ُهـ ِفْيـَها‬
‫ُرْو‬ ‫ْم ْو‬ ‫َو ْك ْو ْم َو ْو ْو‬
‫ا ُس ُهـ ُق ُل ا َلـُهـ َق َّمْعـ ًفا‬
And do not give your wealth (entrusted
wealth of the orphans) to the simpletons
(immature orphans of weak understanding)
which Allah has made a source of economy
for you and feed them from it and clothe
them also and advise them a good matter .
[Q4: 5]
The Real Natural of
Ownership (I):
Demand of
Vicegerency on
Earth:
• The Prophet (S.A.W)
END said that we have
been given wealth so
that you should
establish worship
and pay zakat
The Real Nature of

Ownership (II)
The Real Natural of
Ownership (II):
Open to General
Use:
• All members of the
human race are
brothers to each
other and are units
of a single whole
• Allah’s blessings are
not exclusively the
property of one class
The Real Natural of
Ownership (II):
Open to General
Use:
The Prophet (S.A.W)
says that the entire
creation is the family of
Allah and of His
creation Allah likes him
the best who treats His
family well. [Mishkat]
The Real Natural of
Ownership (II):
Trial:
• Man has been given
the right of
ownership by way of
trial.
• It is clear that one
can only be tested if
one is allowed
freedom of will and
action.
The Real Natural of
Ownership (II):
Trial:
• This freedom to
exercise right of
ownership has been
curtailed to the
extent that another
man’s freedom
should not be
violated
The Real Natural of
Ownership (II):
Acting upon the
commands of
shariah:
• The various
commands of Quran
can only be carried
out if an individual
enjoys the right of
private property
over goods, lands
and houses
The Real Natural of
Ownership (II):
Acting upon the
commands of
shariah:
• For instance, the law
of inheritance, the
system of zakat, ushr
and sadaqat, the
system of Nafaqat
The Real Nature of Ownership (II):

The Quran Says:
‫ْو َو ْو‬ ‫ْو اَل ْد ْو ْو َر ْو ْم‬ ‫َن‬ ‫َا‬
‫َمُنـ ا َت ُخُل ا ُبُي ًتا َغْيـ ُبُي ِتُك َذَحّتٰـ ىَنَتْس ْاَت ِنُس ا ُتَسِّلُم ا َعٰٓلى‬
‫َا‬ ‫ٰا‬ ‫َيآ ُّيـَها اَّلـِذ ْي‬
‫ُك ْم ٌر ُك ْم ُك ْم َّك ُرْو‬
‫ْهِلَهاۚ ٰذ ِل َخْيـ َّل َلَعَّل َت‬
O, believers! Do not go into the other houses
except your own houses till you ask
permission and greet the inmates with peace.
This is better for you so that you may be
heedful (careful). [Q24: 27]
The Real Nature of Ownership (II):
‫ْن ْم ْو َذ ْو‬
The Quran Says:
‫َو َر ْو َو ْن ْم ْم ُر ُء ْو ُس‬ ‫َن‬ ‫ْر‬
‫َفِا َّل َتْفَعُل ا َفْا ُنـ ا َاِبَح ِّماَل الّلٰـ ِه اَلُس ِلٖه ۚ ِا ُت ْبُتـ َفَلُك‬
‫ْو َن‬ ‫ْو َن َو‬ ‫ٍب‬‫َو‬
‫ُت ْظَلُم‬ ‫ْم اِلُك َت ْظِلُم‬
‫ْۚم‬
But if you did not do so, then get ready to
fight with Allah and His Messenger. And if
you repent you have the right for your actual
amount of wealth. Neither you wrong, nor
you will be wronged. [Q2: 279]
The Real Natural of
Ownership (II):
Acting upon the
commands of
shariah:
• Islam grants such
END ownership rights
over all kinds of
property. However,
this ownership rights
are not absolute, but
conditional
The Right of
Individual
Ownership(I)
The Rights of
Individual
Ownership (I):
• Islam recognizes
individual right of
ownership of
consumer goods and
means of production
• Followings are a
brief description of
these rights
The Rights of
Individual
Ownership (I):
 The Right to use and
Expend
 Right to Invest for
profit
 Rent
 The Right to
Transfer Ownership
The Rights of
Individual
Ownership (I):
 The Right to Protect
Property
 The Right to
Accumulate Wealth
The Rights of
Individual
Ownership (I):
The Right to Use
and Expend:
• Every individual can
use a thing in his
ownership to his own
or other’s benefit
The Rights of
Individual
Ownership (I):
The Right to Use
and Expend:
• To make these things
more beneficial or
useful he can make
alterations or
additions to these
things through the
process of
production with
The Rights of
Individual
Ownership (I):
The Right to Use
and Expend:
• It is the right of
owner to transform
END the natural shape of
a thing through
alteration or
addition
• This right of owner
extends to moveable
The Right of
Individual
Ownership(II)
The Rights of
Individual
Ownership (II):
Right to Invest for
Profit:
• It is the right of the
individual to earn
profit from the
things in his
ownership
• An individual can
invest his wealth in
lawful business to
The Rights of
Individual
Ownership (II):
Right to Invest for
Profit:
• A man can adopt the
following means to
increase his wealth
1. Private Business
2. Musharkah
3. Mudarbah
4. Rent
The Rights of
Individual
Ownership (II):
Right to Invest for
Profit:(Private Business)
• An individual can
undertake any
productive work
with the motive of
earning profit on the
following grounds
The Rights of
Individual
Ownership (II):
Right to Invest for
1. In business there is
both the possibility
of making profit or
loss. So if he faces
the loss then his
right is to keep the
profit as well
The Rights of
Individual
Ownership (II):
Right to Invest for
2. If he has incurred
loss
in the past or runs
the
risk of any future
loss
he has a right to the
current profit to
The Rights of
Individual
Ownership (II):
Right to Invest for
3. The process of
production is very
useful. It fulfills our
needs. Production
can continue only if
the individual has
the right to the
profit arising from
production
The Rights of
Individual
Ownership (II):
Right to Invest for
Profit:(Musharkah)
• Partnership means
production or
trading in which two
or more persons,
with fixed capital,
join to share profit
or loss for which the
rate should be
predetermined.
The Rights of
Individual
Ownership (II):
Right to Invest for
Profit:(Mudarbah)
• In this type of
partnership a person
hands over his
capital to a
businessman who
invests it in a venture
The Rights of
Individual
Ownership (II):
Right to Invest for
Profit:(Mudarbah)
• In other words one
person provides the
capital the other
person uses it in
business
• The profit is shared
according to the
agreement
The Rights of
Individual
Ownership (II):
Right to Invest for
Profit:(Mudarbah)
• The loss will be
solely borne by the
END capitalist
• The other person will
loose the labor he
expended on the
capital
The Right of
Individual
Ownership(III)
The Rights of
Individual
Ownership (III):
Right to Invest for
Profit:(Rent)
• The owner has the
right to rent out his
property for earning
profit
• Things that are
rented out must be
useable like land
machinery, house etc
The Rights of
Individual
Ownership (III):
Right to Invest for
Profit:(Rent)
• These are the things
which remain intact
even after use which
means that they
don’t lose their
benefit after use and
they can be rented
out again and again
The Rights of
Individual
Ownership (III):
Right to Invest for
Profit:(Rent)
• Cash can not be
rented out because it
looses its benefit.
• Cash does not
remain intact after
use and hence it has
no capacity to
transfer its benefits.
The Rights of
Individual
Ownership (III):
The Right to Transfer
Ownership
• A person has a right
to transfer his
property to another
person.
• Property may be
transferred for a
price or free.
The Rights of
Individual
Ownership (III):
Ownership
• A person can
transfer his property
to another by the
following methods
1. By Sale
2. By Hiba (Gift)
3. By Will
The Rights of
Individual
Ownership (III):
Ownership (By Sale)
• Through sale the
ownership rights of a
thing are transferred
to another party for
some consideration
The Rights of
Individual
Ownership (III):
Ownership (By Hiba)
• Hiba (gift) means to
transfer the
ownership of a thing
to another person
without receiving
anything in return
• Generally Hiba
fulfills human needs
The Rights of
Individual
Ownership (III):
Ownership (By Hiba)
• Islam encourages the
practice of Hiba
(Gift) for helping the
weak people and for
fulfilling social
purposes
The Rights of
Individual
Ownership (III):
Ownership (By Hiba)
• The owner can avail
of the right of
END making Hiba (gift) of
his property only
before lying on his
deathbed.
The Right of
Individual
Ownership(IV)
The Rights of
Individual
Ownership (IV):
Ownership (By Will)
• To make a will is the
right of a person to
assign a fixed share
of his wealth or
property to one or
more persons
The Rights of
Individual
Ownership (IV):
Ownership (By Will)
• Islam allows a
person to make a will
of only one-third
portion of his estate
• This right is granted
to other than heirs
The Rights of
Individual
Ownership (IV):
Ownership (By Will)
• No will can be made
in favor of the heirs
because their shares
have been
determined by
Islamic Law
The Rights of
Individual
Ownership (IV):
The Right to Protect
Property
• Every owner has the
right to protect his
property and to save
it from trespass
• The owner can stop
the other people
from trespassing on
his property
The Rights of
Individual
Ownership (IV):
Property
• In certain cases it is
obligatory so that the
important objects
which are attached
to ownership do not
fail
The Rights of
Individual
Ownership (IV):
Property
Abdullah bin Umar
(Allah be pleased with
END him) reported that he
had heard the Holy
Prophet (SAW) sayings:
“He who dies in defense
of his property is
martyr”
The Right of
Individual
Ownership(V)
The Rights of
Individual
Ownership (V):
The Right to
Accumulate wealth
• A person can
accumulate wealth
and property within
certain limits.
The Rights of
Individual
Ownership (V):
The Right to
Accumulate wealth
• It is undesirable only
when it is done
through avarice or
hoarding or cupidity
or by trampling
upon the rights of
others or through
foul means
The Rights of
Individual
Ownership (V):
The Right to
Accumulate wealth
• Accumulation of
wealth is allowed in
both movable and
immovable property
for the purpose of
supplying the future
needs of one’s family
The Rights of
Individual
Ownership (V):
The Right to
Accumulate wealth
• Accumulation of
wealth is also
allowed in achieving
good objects and
leaving an estate to
heirs
The Rights of
Individual
Ownership (V):
The Right to
Accumulate wealth
• The prophet says:
“It is better to leave an
estate for the family
than to leave them
helpless paupers”.
(Sahih Bukhari)
The Rights of
Individual
Ownership (V):
The Right to
Accumulate wealth
• Hazrat Usman (RA)
gave away lavish
sums as sadaqat for
the support of the
needy to prosecute
Jihad in the way of
Allah and on other
occasions
The Rights of
Individual
Ownership (V):
The Right to
Accumulate wealth
• At his death he left a
very large estate
which he could not
have done without
accumulation
The Rights of
Individual
Ownership (V):
The Right to
Accumulate wealth
• Similarly, Abdullah
bin Zubair and
END Abdul Rahman bin
Auf (Allah be
pleased with them)
also left huge estates
after death
Limits of Private
Ownership
Limits of Private
Ownership:
• The real owner of the
wealth is Allah
• It is Allah who
blessed the right of
ownership on man
• Man’s right of
ownership is not
absolute but it is
subject of limits and
restraints imposed
upon it by Allah
Limits of Private Ownership:
The Quran
‫َن‬ ‫َا‬ ‫َا‬ Says:
‫َن ُّد َو ْن‬ ‫َّد َر َر َو اَل َس‬ ‫َو‬
‫اْبَتِغـ ِفْيَمآ ٰا َتاَك الّلٰـ اَلُه الـ ا اٰاْل ِخ َةۖ َاْلَتْن َنِصْيَبَّنَك ِم اَلالـ ْنَياۖ ْحِس َك َمآ ْحَس‬
‫َن‬ ‫ُّب‬ ‫ْر‬ ‫َد‬ ‫َو‬
‫الّلٰـ ُه ِا َلْيَك ۖ َتْبِغـ اْلَفَسا ِفى ا ِض ۖ ِا الّلٰـ َه ُيِح اْلُمْفِسِد ْي‬
And that (wealth) which Allah has given you,
demand the hereafter with it and no not forget
your share of the world and do such good with the
people (as) Allah has done good with you and do
not desire (do) dispute in the land. Indeed Allah
does not love the disputers. [Q28: 77]
Limits of Private
Ownership:
• In interpretation of
the verse of Al Qasas
Mufti Muhammad
Shafi writes
 Whatever man owns
has been given to
him by Allah
Limits of Private
Ownership:
 Man should spend

his wealth in such
manner that his
ultimate purpose
should be to achieve
success in the world
and Hereafter both
Limits of Private
Ownership:
 Since wealth has

been given by Allah,
man should spend it
in accordance with
His commands
 Allah has given two
kinds of orders for
the use of this wealth
Limits of Private
Ownership:
1. Man should give
away a portion of
his wealth to others.
This order has been
issued because
whatever man owns
has been given to
him by Allah. Hence
man should show
benevolence to
others
Limits of Private
Ownership:
2. Allah has the right to
forbid you to use this
wealth in some
END particular way. It is
his
prerogative to deny
you your right over
wealth in case it is
likely to cause strife
Limits of The Right

to Use or Spend (I)
Limits of the Right to
use or spend (I):
Islam has imposed the
following limits on the
use and spending of
things:
1. Prohibition to waste
wealth
2. Prohibition to spend
wealth on things or
activities disallowed
by Shariat
use or spend (I):

use and spending of
things:
3. Ban on
extravagance and
immoderate
spending
4. Prohibition of
voluptuous life style
use or spend (I):

use and spending of
things:
5. Prohibition of using
one’s property in
such a way as to
cause hurt or loss to
others
Limits of the right to
use or spend (I):
Prohibition to waste
wealth
• Since wealth is
Allah’s trust with
man, it is prohibited
to betray the trust by
wasting it. Wasting
of wealth is very
similar to mischief
and strife in the land
(Fasad fil Ard)
Limits of the right to use or spend(I):

‫اَل‬ ‫ْرَث َو ل َل َو‬ ‫َاْل‬ ‫َو َذ َو‬
The Quran Says:
‫َو‬ ‫َد‬ ‫ْر‬
‫ا َّنْس ۗ الّلٰـ ُه‬ ‫ِا ا َت ّلٰـ ى َسٰعى ِفى ا ِض ِلُيْفِس ِفْيـَها ُيْهِلَك اْلَح‬
‫َد‬ ‫ُّب‬
‫ُيِح اْلَفَسا‬
And when he goes away from (you), he tries
in the earth to spread dispute in it and to
destroy crops and cattle and Allah does not
love dispute. [Q2: 205]

Imam Navavi writes:
“Wasting of wealth implies spending wealth
in ways which are contrary to shariat and
spending it unnecessarily. The reason for the
prohibition is that this kind of spending
given rise to mischiefs in the society and
Allah does not like mischief-mongers.
Furthermore when a man has wasted his own
wealth his thoughts turn to expropriating the
wealth of others.”

Sending a troop to Syria Abu Bakar (RA)
said:
I give you ten instructions “Do not slay any
woman, child or a very old man. Do not cut
down a fruit tree, do no lay waste a settled
land, do not slaughter a goat or camel except
for food, do not burn the honeybees nor
scatter them, do not embezzle, and do not be
a coward”. (Mowta Imam Malik)
‫‪Islamic Concept of Ownership‬‬
‫‪Limits of the right to use or spend(I):‬‬
‫ْد َن َا ْم‬
‫‪The Quran Says:‬‬
‫ُر‬ ‫ْم ْن‬ ‫ُد‬ ‫َل ْو‬ ‫َو‬
‫َسْيـ ‪ٝ‬ه ۖ ‬ ‫ُك‬ ‫ل‬
‫ِا ٰلى َم َي َخاُهـ ُشَعْيًباۗ َقا َيا َق ِم اْعُبَلوا ا ّلٰـ َهَزَماَنَل اَل ِّم ِا ٰلـٍه َغ‬
‫َو‬ ‫َو‬ ‫ْد َء ُك ْم ٌة ْن َّر ُك ْم ْو‬
‫َتْبَخُسوا الْنَّنا‬ ‫َا َق َجآ ْت اَل َبِّيَن ِّم ِّب َاْل ۖ َاَف ُفوا اْلَك ْياَل اْلِمْيـ ا‬
‫ْم‬ ‫ْم ٌر ْم‬ ‫َد‬ ‫ْر‬ ‫ْو‬ ‫ُد‬ ‫َء ْم َو‬
‫ْشَيآ ُهـ ُتْفِس ا ِفى ا ِض َبْع ِا ْص ِحَهاۚ ٰذ ِلُك َخْيـ َّلُك ِا ُك ْنُتـ‬
‫َن‬
‫ُّمْؤِمِنْي‬
‫]‪. [Q7: 85‬‬

The Quran Says:
And We sent their brother, Shuaib to
Madian. He advised them: O, (my) nation!
Worship Allah only, there is no God for you
except Him. The signs from your Lord has
reached you. Give exact measure and weight
and do not give less things to the people and
do not create dispute in land after its
reformation. This is better for you, if you are
believers. [Q7: 85]
use or spend(I):
The Quran Says:
And We sent their brother, Shuaib
to Madian. He advised them: O,
(my) nation! Worship Allah only,
there is no God for you except
Him. The signs from your Lord has
reached you. Give exact measure
END and weight and do not give less
things to the people and do not
create dispute in land after its
reformation. This is better for you,
if you are believers. [Q7: 85]
Limits of The Right

to Use or Spend (II)
use or spend (II):
wealth
“Allah does not like you
to do three things:
Entering into a
controversy, wasting
wealth and asking too
many questions”.
(Bukhari)
use or spend (II):
wealth
• So wastage and
destruction of useful
things is the common
loss of humanity,
violation of the right
of mankind and an
injustice even as an
act of war
use or spend (II):
wealth
• The capitalist
countries waste their
trade goods,
industrial goods and
agricultural products
in order to increase
the gross profit.
Islam strictly
prohibits this
practice
use or spend (II):
Ban on spending
wealth in ways which
are contrary to shariat
• Spending wealth on
wine and adultery
and other unlawful
things or practices
are prohibited
gambling and
speculations
use or spend (II):
Ban on spending
wealth in ways which
are contrary to shariat
ostentatious display
END • Spending wealth on
absurd marriage
customs and fire-
works etc.
Limits of The Right

to Use or Spend
(III)
use or spend (III):
Prohibition of
Extravagance (Israf)
• Israf means willful
overspending of
wealth or overuse of
property when the
actual purpose may
be served by lesser
spending or use
• Israf is also
prohibited according
to Islamic teachings
use or spend (III):
Prohibition of
• Wealth is generally
spent to meet one’s
needs, to buy
comforts or luxuries
• Spending of wealth is
justified only if
moderation and
moral limits are
observed
use or spend (III):
Prohibition of
• A person indulges in
Israf for two
reasons: Either he
has a large amount
of wealth or however
small his resource he
spends them
recklessly.
• So both cases are
forbidden in Islam
Limits of the Right to use or spend(III):
‫اَل ُّب‬
The Quran Says:
‫َّو ْو َو َر ْو َو اَل ْو‬ ‫ْم َد‬ ‫ْو‬ ‫َد َم ُذ‬
‫َيا َبِنٓى ٰا ُخ ا ِز ْيَنَتُك ِعْن ُك ِّل َمْسِجٍد ُك ُل ا اْش ُب ا ُتْس ُف اۚ ِا َّنه ُيِح‬
‫ِر‬ ‫َن‬
‫اْلُمْس ِفْي‬
‫ِر‬
O, family of (Hazrat) Adam! Remain good
with your adornment (turn out with clean
clothes) at the time of every prayer and eat
and drink and do not be spend extravagant.
Allah does not like extravagant. [Q7: 31]
Limits of the Right to use or spend(III):
‫َو َن َذ َا ْو ْم ْو َو ْم ُر ْو َو َن َن‬
The Quran Says:
‫َو‬
‫اَّلـِذ ْي ِا آ ْنَفُق ا َل ُيْس ُف ا َل َيْقُتـ ا َك ا َبْي ٰذ ِلَك َق اًما‬
‫ِر‬
And when those people spend, they are not
careless in spending very much (extravagant)
and (they are) not miserly but they keep a
medium (moderate) between the two
(extremes).
[Q. 25: 67]
use or spend (III):
Prohibition of
• Ibn-e-Abbas (RA)
says:
“Avoiding extravagance
or boastful spending
you may eat what you
like and put on the
clothes you like.”
(Bukhari)
use or spend (III):
Prohibition of
• Israf which is
prohibited has
following aspects
1. To cross the limit of
moderation in
quantity and quality
use or spend (III):
Prohibition of
• Israf which is
prohibited has
following aspects
2. To ignore important
needs and spend
wealth on
unimportant
things
use or spend (III):
Prohibition of
• Israf which is
prohibited has
following aspects
3. Unjustified expenses
in the context of
general economic
condition of society
use or spend (III):
Prohibition of
• The purpose of these
teachings of the
Quran and the
Hadith is to observe
moderation in the
spending of wealth
and adopt a
balanced lifestyle
use or spend (III):
Prohibition of
• Man should use
goods according to
need
END • Unnecessary, useless
or excessive spending
should be avoided
• Man should not
spend beyond his
means or over and
above the need
Limits of The Right

to Use or Spend
(IV)
use or spend (IV):
Prohibition of
Voluptuousness:
• Islam has declared a
few things unlawful
and most things
lawful
• Islam imposes a
restriction on a
wealthy man that he
should use lawful
things in moderation
use or spend (IV):
Prohibition of
Voluptuousness:
• The purpose of
wealth and property
is to maintain life
• After the
maintenance of life a
non should not
become a
voluptuary, but
should seek to fulfill
the higher purposes
‫‪Islamic Concept of Ownership‬‬
‫‪Limits of the Right to use or spend(IV):‬‬
‫ٌب َّو ٌو َّو ٌة َّّو ٌر ْم َو ٌر َاْل َو‬

‫‪The Quran Says:‬‬
‫ُّد‬ ‫ٓو َا‬
‫ا‬ ‫ْم‬
‫ًّر َّم ِل‬ ‫ا‬ ‫ِف‬ ‫اُث‬ ‫َك‬ ‫َت‬ ‫ُج‬ ‫ِا ْعَلُم اَاْل َّنَمااَل اْلَحَياُة الـ ْنَيا َلِع َا َلـْه ِز ْيَن َتَفاُخـ َبْيَنُك‬
‫َب ُك َر ‪ٝ‬ه َّم ْي َر‬ ‫َو ْو‬
‫ى‬ ‫ـ‬
‫ا ُن ِد ۖ َك َمَثِل َغْيٍث ْع َذَج اْل َّفا َنَباُت ُثـ َيِه َفَتـ اُه ُمْصَفٌنا ُثـ‬
‫َو َو َو‬ ‫ٌۙد َّو َر َن‬ ‫ٌب‬ ‫َر‬ ‫َو‬ ‫ْو‬
‫َيُك ـ ُحَطاًماۖ ِفى اٰاْل ِخ ِة َع ا اَّلَشِد ْي ُعَمْغِف ٌة ِّم الّلٰـ ِه ِر ْض ا ۚ َما‬
‫ُرْو‬ ‫ُّد‬
‫اْلَحَياُة الـ ْنَيآ ِا َمَتا اْلُغ ِر‬
‫‪]Al-Hadeed 57: 20[ .‬‬
Limits of the Right to use or spend(IV):

The Quran Says:
Know it well that indeed the life of this world
is only a play and amusement and a show of
beauty and of boasting among you and a
more desire (competition) for wealth and
children like the rain which grows farming
and is pleasing for the farmers. Then it
reaches its full growth and the seers see it
turning yellow, then it becomes hay and there
is the severe punishment ……………..
Limits of the Right to use or spend(IV):

The Quran Says:
And there is forgiveness from Allah and the
pleasure. The life of the world is only deceit
(deception, delusion)
(Q. 57 : 20)
use or spend (IV):
Prohibition of
Voluptuousness:
• Muad bin Jabal
(RA) reported that
when Allah’s Apostle
(SAW) sent him to
yemen he warned
him: “Beware! Avoid
voluptuousness, for
Allah’s servants are
not voluptuaries.”
(Mishkat-al-
use or spend (IV):
Prohibition of
Voluptuousness:
• It is clear in the light
of Quran and
Sunnah that Islam
does not demand
renunciation of
pleasures from us; it
requires us to follow
a moderate and
balanced course
use or spend (IV):
Prohibition of
Hazardous use of
property:
“Causing hurt to others
is not lawful in Islam.”
“Causing hurt to others,
whether in the first
place or in retaliation is
unlawful in Islam.”
use or spend (IV):
Prohibition of
Hazardous use of
property:
• Any use of property
which causes
END nuisance to the
neighbor or
environmental
pollution is unlawful
Limits on The Use

of Animals Under
Ownership
Limits on the use of
Animals under
Ownership:
• The cattle and other

working animals
perform much
useful work for us
• It is the right of the
master to use their
service
Animals under
Ownership:
• But only that much

burden of work
should be put on the
animals as they can
perform easily
Animals under
Ownership:
• They should be fed
properly. They
should be put to use
for those purposes
only for which
providence has
created them i.e., for
riding or carrying
loads or for
performing
agricultural or
Animals under
Ownership:
• It is unlawful to set
the animals to fight
each other just of
enjoyment
• Similarly, their use
for target practice in
archery or
marksmanship is
forbidden
Animals under
Ownership:
• The messenger of
Allah has
pronounced a curse
upon a man who uses
END a living creature for
target practice (Abu
Dawud)
Limits of Profitable
Business (I)
Business (I):
• Islam has imposed
certain limits on
investing money or
property in
profitable business.
• Of these some limits
are those which
forbid the adoption
of an immoral course
of action
Business (I):
• Some limits are those
which prohibit such
lawful action as
under particular
circumstances causes
loss to the society,
even when the
intention is bona
fide.
• In this regard the
limits imposed by
Islam are as follows:
Business (I):
1. Immoral Acts
2. Ban on spurious
weights and
Measures
3. Avoid Adulteration
4. Ban on Hoarding
5. To conceal the
Defect of Goods
6. Charging Higher
Price
7. Charging Monopoly
Business (I):
Immoral Acts:
• Prominent among
the immoral acts are
 Fraud
 False representation
 Exaggeration in
Advertisement
 Un ethical
Advertisement
Business (I):
Immoral Acts:
• Prominent among
the immoral acts are
 Presenting defective
goods as serviceable
 Presenting low grade
goods as high quality
goods
 Lying about the cost
price to induce the
purchaser to pay
Business (I):
Ban on spurious
weights and Measures:
• Islam commands
that weights and
measures should be
correct and fully in
accord with the
standard.
• Every lapse or
omission in this
regard is a
punishable crime
Business (I):
Avoid Adulteration:
• It is unlawful to
adulterate food items
and other goods and
to deceive the public
in this matter
Business (I):
Ban on Hoarding:
• It is forbidden to
indulge in hoarding
in order to raise the
price of goods.
• Similarly, it is
prohibited to create
artificial shortages in
order to sell at black
market rates
Business (I):
Ban on Hoarding:
“He who hoards in
order to raise the
prices for Muslims is
END a wrongdoer and
Allah takes no
responsibility for
him.”
• It is the duty of the
Islamic state to curb
the rise in prices due
Business (II)
Business (II):
To Conceal the Defect
of Goods:
• The Prophet (SAW)
says: “Muslims are
brothers unto each
other. It is not right
for a Muslim to sell a
defective thing to a
brother Muslim
without informing
him about its
defect.” (Mustadrak)
Business (II):
To Charge a Higher
price from a person in
Dire Need:
• It is forbidden to
take advantage of
the pressing need of
a person and charge
a black market price
from him
Business (II):
To Charge a Higher
price from a person in
Dire Need:
• Similarly it is
forbidden to exploit
the helpless state of a
person and purchase
his goods at low
price
Business (II):
Charging Monopoly
Price:
• Sometimes a
business achieves an
extraordinary
control of market
forces.
• If this has been done
by artificial methods,
it is wrong and
condemnable
Business (II):
Charging Monopoly
Price:
• But if the control has
been gained by
natural factors even
then undue
advantage should
not be taken of this
monopoly
Business (II):
Charging Monopoly
Price:
• To use this
monopolistic power
to raise the prices, to
indulge in
profiteering, to
charge exorbitant
rates of profit, to de-
standardize the
goods, to cut the
production below
Limits of Profitable Business (II):

Charging Monopoly Price:
In the time of Hazrat Umar (RA) a man
started breeding horses in Madina. Hazrat
Umar (RA) ordered him to close the business.
The man appealed for the review of this
decision, whereupon Hazrat Umar (RA)
directed him to import fodder for the horses
from outside Madina so that fodder price in
Madina should not go up. So the man
arranged to import fodder from yeman.
Business (II):
Charging Monopoly
Price:
• So the object was to
lay down the
principle that where
END a man gains profit at
the cost of the
society, he should be
forcibly stopped to
do so
Limits of Transfer
of Ownership
Limits of Transfer of
Ownership:
• The purpose of
transfer of property
should not be to
cause loss to any
body
• In exercising the
right of ownership
one should not be so
reckless as to be
guilty of
extravagance or
under use or
Ownership:
• As a safeguard
against injurious use
of the right to
transfer ownership
Islam has granted
the right of pre-
emption to the
partner in the
property or the
neighbor.
Ownership:
• According to the
right of pre-emption
the partner or the
neighbor has a prior
right to buy a
property on sale.
Ownership:
• By enacting the law
of pre-emption Islam
seeks to protect the
individual interest of
the neighbor and
enhance the
collective interest of
the society
Ownership:
• Similarly the right to
transfer property by
will has been
restricted to one-
third of the total
estate so that the
right of the real heirs
should not suffer
Ownership:
• Similarly the owner
when on his
deathbed is
forbidden to transfer
property as a gift or
END in consideration of a
nominal price
Limits of Right of
Protection
Limits of the Right of
Protection:
• The owner has the
right to protect his
property
• However, those who
have a sharii right to
use this property can
not be stopped from
doing so.
Protection:
• The other
individuals or
institutions have
several moral or
legal rights in the
property of an
owner…. For
example, right to
protect one’s
ownership does not
mean that the owner
should stop tax-
Protection:
• Similarly
accumulation of
wealth is permitted,
but this right should
be exercised within
the limits of
moderation.
• Islam does not allow
any one to hoard
wealth in the coffers
and withhold it from
circulation in the
Protection:
• Stinginess is not a
less evil in the eyes of
Islam than
extravagance
• In fact, avarice is a
more deep-rooted ill
and gives rise to
many moral evils
• It diminishes the rate
of consumption in
the society
Protection:
• Even it adversely
affects the
circulation of wealth
and production of
goods which in turn
END has a bad effect on
the level of National
income, Employment
and the entire
Economic System

04 Islamic Concept of Ownership

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04 Islamic Concept of Ownership

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Economic Ideology of Islam

The Real Nature of

The Real Nature of Ownership (I):

‫َاْل ْر ُض َو ْن‬ ‫ْل‬

The Real Nature of Ownership (I):

The Real Nature of Ownership (I):

The Real Nature of Ownership (I):

The Real Nature of Ownership (I):

‫ْم َّو ْر ُز ْو ْم‬ ‫َل‬ ‫َء َا َو ُم‬ ‫َو اَل‬

The Real Nature of

The Real Nature of Ownership (II):

The Real Nature of Ownership (II):

 Man should spend

 Since wealth has

forbid you to use this

Limits of The Right

Islam has imposed the

Islam has imposed the

Limits of the right to use or spend(I):

Limits of the right to use or spend(I):

Limits of the right to use or spend(I):

‫‪Limits of the right to use or spend(I):‬‬

Limits of the right to use or spend(I):

Limits of The Right

Limits of The Right

Limits of the Right to use or spend(III):

Limits of the Right to use or spend(III):

Limits of The Right

‫‪Limits of the Right to use or spend(IV):‬‬

‫ٌب َّو ٌو َّو ٌة َّّو ٌر ْم َو ٌر َاْل َو‬

Limits of the Right to use or spend(IV):

Limits of the Right to use or spend(IV):

Limits on The Use

• The cattle and other

• But only that much

Limits of Profitable Business (II):

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