Foundations and Principles (EP)

Islamic economics is based on a paradigm which is not secularist and value-neutral. It treats all human beings as vicegerents of God and brothers unto each other. All resources at the disposal of human beings are trust and must be used for the well-being of all in conformity with the values provided by the Shari'ah. However, well-being in Islam is not a function of just material possessions and unlimited consumption. It is rather a function of the balanced satisfaction of both the material and the spiritual needs of the human personality. This can be done by actualising the maqasid al-shari'ah (goals of Shari'ah). For further details see: ISRA, Islamic Financial System; Principles and Operations.

Maqasid al-Shari'ah in Wealth

Technically: jurists use it for the means that can contribute to the maintenance and development of wealth and prevent it from total loss or decrease. Preservation of wealth is one of the major objectives of the Shari'ah, and all economic transactions are directed toward this purpose. It is of two types: 1) preservation of public wealth by maintaining the treasury; 2) preservation of personal wealth, like that of orphans or other individuals or of private partnerships, or that of a mentally incompetent person by stopping him from free disposition. The objective of preserving wealth plays an important role in contemporary ijtihad. For further details see ISRA Compendium.


Literally: moderation in matters. Technically: chivalrous and above suspicion; one whose merits exceed his demerits; with regard to mortgages, a person whom both a mortgagor and mortgagee trust to keep possession of the mortgage in order to preserve and safeguard it. For further details see ISRA Compendium.

Is It Permissible to Give a Discount to the Client on the Whole Quantity from the Beginning of the Signing of Contracts When the Commodity and the Payment for It Are Delivered in Stages?
How Does the Bank Record the Profits of a Delayed-Payment Murabahah Sale?
قرار رقم 132 (6/14) بشأن عقود الإذعان

Wealth circulation comprises all processes related to its creation, consumption and distribution. This objective is derived from the Qur’an, which provides, as a rationale for instructions to distribute one source of wealth among a number of different groups, “ that wealth is not circulated among the rich in the society only” (Qur’an, 59: 7). For further details see ISRA Compendium.

قرار رقم 140 (6/15) بشأن الاستثمار في الوقف وفي غلاته وريعه
إيداع المسلم أمواله في البنوك التي تتعامل بالفائدة
تمويل شراء أجهزة ألعاب إلكترونية تستعمل نقودًا معدنية

Islamic Financial System ©



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