18 Facts About Islamic economics

Islamic economics refers to the knowledge of economics or economic activities and processes in terms of Islamic principles and teachings.

Islamic economics jurisprudence has traditionally dealt with determining what is required, prohibited, encouraged, discouraged, or just permissible, according to the revealed word of God and the religious practices established by Muhammad .

The central features of an Islamic economics economy are often summarized as: the "behavioral norms and moral foundations" derived from the Quran and Sunnah; collection of zakat and other Islamic economics taxes, prohibition of interest charged on loans.

Advocates of Islamic economics generally describe it as neither socialist nor capitalist, but as a "third way", an ideal mean with none of the drawbacks of the other two systems.

Classical scholars in the Muslim world did however, make valuable contributions to Islamic economics thought on issues involving production, consumption, income, wealth, property, taxation, land ownership, etc.

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Islamic economics discussed what he called asabiyya, which he cited as the cause of the advancement of some civilizations.

Islamic economics noted that growth and development positively stimulates both supply and demand, and that the forces of supply and demand are what determines the prices of goods.

Islamic economics noted macroeconomic forces of population growth, human capital development, and technological developments effects on development.

Medieval Islamic economics appears to have somewhat resembled a form of capitalism, some arguing that it laid the foundations for the development of modern capitalism.

Islamic economics grew naturally from the Islamic revival and political Islam whose adherents considered Islam to be a complete system of life in all its aspects, rather than a spiritual formula and believed that it logically followed that Islam must have an economic system, unique from and superior to non-Islamic economic systems.

Mohammad Baqir al-Sadr and cleric Mahmoud Taleghani developed an "Islamic economics" emphasizing a major role for the state in matters such as circulation and equitable distribution of wealth, and a reward to participants in the marketplace for being exposed to risk or liability.

Enrollment has subsided in classes and second and third generation Islamic economics economists are scarce, some institutions have "lost their real direction and some have even been closed".

Islamic economics economists classify the acquisition of private property into involuntary, contractual and non-contractual categories.

Islamic economics teaching holds that the market, given perfect competition, allows consumers to obtain desired goods and producers to sell their goods at a mutually acceptable price.

Only financial institution under Islamic economics Governance was Baitulmaal wherein the wealths were distributed instantly on the basis of need.

Islamic economics carried census during his caliphate; and provisioned salaries to Government employees, stipend to poor and needy people along with social security to unemployed and retirement pensions.

Islamic economics banks have grown recently in the Muslim world, but are a very small share of the global economy compared to the Western debt banking paradigm.

One significant result of Islamic economics is the creation of Islamic banking and finance industry.