Post by ritu on Sept 16, 2023 8:28:04 GMT
The economy in Islamic civilization has strong historical roots and a highly organized system. The combination of religious, cultural and social principles creates an economic framework that is different from other economic systems in the world. This article will discuss the history and main principles that shaped the economic system in Islamic civilization.
History of Islamic Economics
The economy in Islamic civilization has developed since the 7th century AD when Islam first appeared in Arabia. The Islamic economic system was introduced by the Prophet Muhammad through his teachings and continued to develop over the following centuries. There are several key characteristics that stand out in the history of Islamic economics:
Zakat and Infaq : One of the most important economic principles in Islam is zakat, which is an obligation for Muslims to give part of their income to the needy. Zakat is used to support the poor, orphans, and other charitable projects. Infaq, which is a voluntary donation outside of zakat, also plays an important role in Phone Number List encouraging a more equitable distribution of wealth.
Prohibition of Usury : Islam prohibits usury or interest. This means money must not generate money itself, and trading or lending involving usury is prohibited. This prohibition aims to prevent exploitation of the poor and to ensure that the economy revolves around real activity.
Sharia-Based Financial System : Islam has a unique financial system known as sharia banking. In this system, financial practices that are contrary to Islamic principles are avoided. For example, in Islamic banking, interest-bearing deposits are replaced by a profit sharing system, where profits and risks are shared between the bank and the customer.
Trade and Trade Networks : Islamic Empires, such as the Abbasid Caliphate, played an important role in international trade. They developed extensive trade networks connecting the Middle East with Asia, Europe and Africa. This created economic prosperity in Islamic civilization and enabled the exchange of culture and knowledge.
History of Islamic Economics
The economy in Islamic civilization has developed since the 7th century AD when Islam first appeared in Arabia. The Islamic economic system was introduced by the Prophet Muhammad through his teachings and continued to develop over the following centuries. There are several key characteristics that stand out in the history of Islamic economics:
Zakat and Infaq : One of the most important economic principles in Islam is zakat, which is an obligation for Muslims to give part of their income to the needy. Zakat is used to support the poor, orphans, and other charitable projects. Infaq, which is a voluntary donation outside of zakat, also plays an important role in Phone Number List encouraging a more equitable distribution of wealth.
Prohibition of Usury : Islam prohibits usury or interest. This means money must not generate money itself, and trading or lending involving usury is prohibited. This prohibition aims to prevent exploitation of the poor and to ensure that the economy revolves around real activity.
Sharia-Based Financial System : Islam has a unique financial system known as sharia banking. In this system, financial practices that are contrary to Islamic principles are avoided. For example, in Islamic banking, interest-bearing deposits are replaced by a profit sharing system, where profits and risks are shared between the bank and the customer.
Trade and Trade Networks : Islamic Empires, such as the Abbasid Caliphate, played an important role in international trade. They developed extensive trade networks connecting the Middle East with Asia, Europe and Africa. This created economic prosperity in Islamic civilization and enabled the exchange of culture and knowledge.