Islam and islamic Economics

Before we can understand Islamic economic system, the understanding of Islam is crucial because the economic system here is part and partial of the ‘complete way of life’ of Islam.

Islam does not separate economic affairs and its teaching and there is no way the two can be separated because separation of the two could cause incomplete practice of the religion.

It is important to note that, all economic activities must be conducted according to the shari’ah in order to make them accepted as a form of worship to Allah, the Almighty. Hence, economic affairs must not divert man from his true purpose of existence which is to worship Allah, the Almighty and to conduct his activities (including economic activities) based on the divine laws.

Man must submit himself to Allah. He must obey his Lord’s laws. Only by following the revelation can man achieve peace in his life in this world and the hereafter. This is suitable with the literal meaning of Islam which means peace, obedience, surrender and submission.

Therefore, aqidah is the fundamental essence in the teaching of Islam and the establishment of its economic system. Crux of the term Islam and aqidah could be best understood from the following hadith:

On the Authority of `Umar r.a. who said:
One day while we were sitting with the Messenger of Allah there appeared before us a man whose clothes were exceedingly white and whose hair was exceedingly black; no signs of journey were to be seen on him and none of us knew him. He walked up and sat down by the Prophet SAW.
Resting his hands against his and placing the palms of his hands on his thighs he said:

O Muhammad, tell me about Islaam. The Messenger of Allah said: Islaam is to testify that there is no deity worthy of worship but Allah and Muhammad is the Messenger of Allah, to perform prayers, to make zakaah, to fast in Ramadaan, and to make the pilgrimage to the House if you were able to do so.
He said: You have spoken rightly; and we were amazed at him asking him and saying that he had spoken rightly.
He said: Tell me about eeman. He said: It is to believe in Allah, His angels, His books, His messengers, and the Last Day, and to believe in divine destiny, both the good and the evil thereof. He said: You have spoken rightly.
He said: Then tell me about ihsaan. He said: It is to worship Allah as though you are seeing Him and while you see Him not, yet truly He sees you.
He said: Then tell me about the Hour. He said: The one questioned about it knows no better than the questioner. He said: Then tell me about its signs. He said: that the slave-girl will give birth to her mistress and that you will see barefooted, naked destitute herdsmen competing in constructing lofty buildings.
Then he took himself off and I stayed for a time. The he said: O `Umar, do you know who the questioner was? I said: Allah and His Messenger know best. He said: It was Gabriel, who came to teach you your religion.
It was related by Muslim.

Only by realizing the true meaning of Islam, iman, ihsan and the Hour (Doomsday), man’s consciousness over his true purpose of creation and existence can be manifested to the fullest in this world. In order to achieve that, part and partial of the requirement is to conduct our economic activities based on the shari’ah. Hence, Islamic economic system is indispensable in that process so that man can manifest his obedience to Allah, in conducting his economic activities.