Islamic Theory of Ownership

Islamic Theory of Ownership

• Allah (swt) holds ultimate ownership of all creation.
• Quranic verses support God's ownership over all creation. (e.g., 12:6)
• Ownership is part of human nature.
• Islam upholds individual's right to private property.
• Quranic phrases ("his wealth", "their wealth", etc.) signify individual ownership.

Restrictions on Ownership

• Ownership is not absolute; it's subject to restrictions and regulations.
• A Muslim holds property in trust, accountable to Allah (swt).
• Private ownership excludes others and grants the owner authority.
• The owner may use the property itself or its usufruct.

Acquisition of Ownership

• Ownership can be acquired through various contracts (e.g., sale, gift, donation, will, partnership).
• Inheritance is another way to acquire ownership of property.
• Ownership of natural resources, such as land, can be acquired through first possession and labor (e.g., hunting, exploiting, and working the land).

Divisions of Private Ownership

• Private ownership is divided into complete and incomplete ownership.
• Complete ownership grants full rights over a specific property, including its usufruct (enjoyment/use).
• Incomplete ownership has subsets:
  • Ownership over the rights connected with a land.
  • Ownership of the property itself
  • Ownership of the usufruct of property.

Ownership Rights Included in Land

• Rights over water, irrigation, and passage are intrinsically linked to ownership of the land.
• These indivisible rights cannot be traded separately.

Ownership Over a Property

• Property ownership signifies sole possession and use of a certain property.
• Usufruct is another legal concept, often in a lessee situation.

Ownership Over Usufruct

• Usufruct involves the benefits gained from an asset, while the owner retains ownership.
• It can be obtained through borrowing, leasing, endowment, will, etc.
• The lessee has the right to use the asset for a certain time.

Characteristics of Ownership Over Usufruct

• Ownership over usufruct is restricted by conditions of time, place, and rules.
• The beneficial owner is typically not liable for maintenance in contracts associated with usufruct.
• The borrower is responsible for maintenance if the ownership over usufruct is through a loan.

Restrictions on Ownership Rights

• Public properties cannot be privately owned since their aim is to benefit the public.
• Ownership of prohibited items (e.g., wine, pigs) is disallowed.
• Acquisition of ownership should be lawful and avoid practices like usury, gambling.

Restrictions Related to Utilization

• Muslims are commanded to spend wealth for Allah's sake and assist relatives and the poor.
• Wastefulness is prohibited.
• Investment for economic growth and job creation is considered virtuous.
• Exercise of property rights must not infringe on the rights of others (e.g., light and air).

Abuse of Ownership

• If the right to own property is abused, the state may regulate or restrict it.
• Development and construction in certain areas might be subjected to regulations.
• Non-use of land may invite state intervention.
• Uncultivated land may be taken and allocated for cultivation.

Ineligible Assets For Individual Ownership

• The atmosphere, free air, sun's rays, ocean resources, and space cannot be owned by individuals.
• These globally essential resources are for all humankind.
• The Prophet (PBUH) declared that grass, water, and fire are shared resources.

State Supervision of Natural Resources

• Vital resources (e.g., forests, rivers, minerals) are managed by the state or through authorized private entities.
• State supervision will ensure these are utilized ethically for the common good.
• Corporations are restricted to specific logging activities within a particular area for a specific time.