Islamic Economics
Islamic Economics
Economics studies are devoted with the economical behavior of individuals and societies, for
instance production, consumption, saving, good exchange and so on. Every nation is supposed to
regulate the production of goods and services as demanded by the people, consumers, thus any
economic system needs to answer four main questions:
1- What to produce of goods and services?
2- How to produce these goods and services?
3- Who to produce to these goods and services?
4- What will be the rate of economic growth?
Economic growth is essential in order to be able to provide high living standards to the people
affording to provide more products, the faster the rate of economic growth the better the living
standards are going to be. The four main production resources are:
1- Natural resources
2- Capital
3- Labor
4- Technology
Every economic system aims to achieve a better utilization of these resources which leads the
way to a greater economic growth providing a balanced system and better living standards
through equal division of wealth among different social sectors.
2
Towards the end of the 20th century, a new terminology was raised by muslim scholars, although
theories ages back to the early days of Islam, yet the term Islamic Economics was only stated
fourteen hundred years later. The term was not simply naming something that already existed
but it was the willing to establish a modern economic system bounded by Islam regulations that
would certainly meet the economic and social needs of Islamic continents and countries helping
these nations to achieve a faster economic growth and hence a better living standards. This
project also aimed to reflect the Islamic identity and set loose the countries from political and
economical dependency and oppression of the west.
After World War II, Islamic countries retained their political independency from western nations
and
Economics studies are devoted with the economical behavior of individuals and societies, for
instance production, consumption, saving, good exchange and so on. Every nation is supposed to
regulate the production of goods and services as demanded by the people, consumers, thus any
economic system needs to answer four main questions:
1- What to produce of goods and services?
2- How to produce these goods and services?
3- Who to produce to these goods and services?
4- What will be the rate of economic growth?
Economic growth is essential in order to be able to provide high living standards to the people
affording to provide more products, the faster the rate of economic growth the better the living
standards are going to be. The four main production resources are:
1- Natural resources
2- Capital
3- Labor
4- Technology
Every economic system aims to achieve a better utilization of these resources which leads the
way to a greater economic growth providing a balanced system and better living standards
through equal division of wealth among different social sectors.
2
Towards the end of the 20th century, a new terminology was raised by muslim scholars, although
theories ages back to the early days of Islam, yet the term Islamic Economics was only stated
fourteen hundred years later. The term was not simply naming something that already existed
but it was the willing to establish a modern economic system bounded by Islam regulations that
would certainly meet the economic and social needs of Islamic continents and countries helping
these nations to achieve a faster economic growth and hence a better living standards. This
project also aimed to reflect the Islamic identity and set loose the countries from political and
economical dependency and oppression of the west.
After World War II, Islamic countries retained their political independency from western nations
and
Cited: - Abdelrahman Yousry. “The Journy of Islamic Economics” - World Database for Islamic Banking and Finance. - “Global Arab Encyclopedia” - Shamshad Akhtar. “Understanding Islamic Finance”