Islamic Economics: Principles and Ethics

Study Notes

Rabbāniyyah (Divine Origin): Islamic economics has a divine origin and is built upon the Islamic world view, confirming that God is the sole creator, owner, and provider of resources.
Insāniyyah (Humanness): Islamic economics is concerned with the role of human beings who possess physical and spiritual attributes to manage the economy, allocate resources, distribute, and achieve growth.
Akhlāqiyyah (Ethicality): Human beings are accountable for their economic choices and actions in the hereafter, and must exercise their intellect to deal with economic problems, following Allah's guidance and teachings.
Wasaṭiyyah (Moderation): Balance is fundamental in economic conduct, and moderation is a principle of good conduct, leading to benefits in all aspects of livelihood, including economics.
Wāqiʿiyyah (Practicality): Islamic economics considers the realities of life, the importance of efficiency, and the need to use reason and facts to understand and explain economic realities.
Ālamiyyah (Universality): Islamic economics is for the entire humanity, not only for Muslims, and imposes a challenge to Muslim economists to contribute to world economic stability and prosperity.

Human beings are accountable for their economic choices and actions in the hereafter.
The role of human beings is to establish a moral and social order on earth, following Allah's guidance and teachings.
The purpose of humanity is to enslave themselves to Allah by following His guidance and teachings.
Moderation is essential in economic conduct to avoid extremism, injury, discontent, and unhappiness.
Islamic economics uses reason and facts to understand and explain economic realities, considering the realities of life and the importance of efficiency.
The 2007-2008 global financial crisis is an example of the consequences of neglecting divine revelations and values in economic activities.