FACTOID # 10: The total number of state executions in 2005 was 60: 19 in Texas and 41 elsewhere. The racial split was 19 Black and 41 White.
 Home   Encyclopedia   Statistics   States A-Z   Flags   Maps   FAQ   About 


FACTS & STATISTICS    Advanced view

Search encyclopedia, statistics and forums:



(* = Graphable)



Encyclopedia > Islamic economic jurisprudence

Part of a series on the
Islamic Jurisprudence

– a discipline of Islamic studies This article or section does not cite any references or sources. ... This is a list of academic disciplines (and academic fields). ... Islamic Studies is the academic discipline which focuses on Islamic issues. ...

This box: view  talk  edit
This is a sub-article of fiqh and Law and economics.

Islamic economics is economics in accordance with Islamic law. There are two paradigms for understanding Islamic Economics - one assuming the political framework is Islamic (i.e., Khilafah) and the other assuming the political framework is non-Islamic, resulting in a paradigm that seeks to integrate some prominent Islamic tenets into a secular economic framework. This is a sub-article of Islamic economical jurisprudence. ... In states ruled by Islamic law, jizya or jizyah (Arabic: جزْية; Ottoman Turkish cizye) is a per capita tax imposed on able bodied non-Muslim men of military age. ... In Sharia (Islamic Jurisprudence) from the arabic نصاب is the amount which savings or capital or product must exceed in order for the muslim owner to be obliged to give Zakat (Charity). ... Khums (derived from the Arabic خمس or five) is a Shia article of faith that refers to a one-fifth tax, which all adult Muslims who are financially secure and have surplus in their income normally have to pay on annual savings, net commercial profits, and all... Sadaqah is a Islamic Term that means voluntary charity. See also Alms Zakat Khums Category: ‪Islam-related stubs‬ ... A waqf (Arabic: وقف, plural awqāf) is an inalienable religious endowment in Islam, typically devoting a building or plot of land for Muslim religious or charitable purposes. ... Bayt al-mal is an Arabic term that is translated as House of money. ... This is a subarticle to Islamic economics. ... Riba is the (Arabic: ربا ) term for intrest, the charging of which is forbidden by the Quran here, among other places: And that which you give in gift (loan) (to others), in order that it may increase (your wealth by expecting to get a better one in return) from other... Murabaha is defined as a particular kind of sale, compliant with shariah, where the seller expressly mentions the cost he has incurred on the commodities to be sold and sells it to another person by adding some profit or mark-up thereon which is known to the buyer. ... Takaful - Islamic Insurance ==]] “The basic fundamentals underlying the Takaful concept are very similar to cooperative and mutual principles, to the extent that the cooperative and mutual model is one that is accepted under Islamic Law. ... Sukuk is the Arabic name for a financial certificate but can be seen as an Islamic equivalent of bond. ... This is a sub-article to Islamic economical jurisprudence and inheritance. ... Islamic politics is the profession of Muslim politicians. ... Marriage in Islam is considered to be of the utmost importance. ... Islamic criminal jurisprudence is the Islamic criminal law. ... This is a sub-article to Islamic jurisprudence and etiquette. ... Islamic theological jurisprudence is the filed of Islamic jurisprudence specialized in theological issues. ... This is a sub-article to fiqh and Hygiene Hygiene in Islam is a prominent topic but one which non-Muslims are not very familiar with. ... This article or section does not cite any references or sources. ... Law and economics, or economic analysis of law, is the term usually applied to an approach to legal theory that incorporates methods and ideas borrowed from the discipline of economics. ... Face-to-face trading interactions on the New York Stock Exchange trading floor. ... Sharia (Arabic شريعة also Sharia, Shariah or Syariah) is traditional Islamic law. ... Anglicized/Latinized version of the Arabic word خليفة or Khalifah, Caliph is the term or title for the Islamic leader of the Ummah, or community of Islam. ...

The former paradigm seeks to restate the economic problem as being a problem of distribution of resources in order to meet the basic and luxurious needs of individuals in society, building an ethical marketplace where there is co-operative competition, participants are rewarded by being exposed to risk and/or liability, property is equitably divided between public and private use and the state has a clear role in policing, taxation, managing public assets and ensuring the circulation of wealth. Islamic movements calling for political reformation will generally propose this paradigm to explain how they will introduce economic reform.

The latter paradigm however simply proposes two main tenets: no interest can be earned on loans, and socially responsible investing. The key difference from a financial perspective is the no-interest rule since the Islamic socially responsible investing paradigm is not much different from what other religions do. In trying to prevent interest, Islamic economists hope to produce a more 'Islamic society', however liberal movements within Islam may deny the need for this field, since they generally see Islam as compatible with modern secular institutions and law. Interest is the rent paid to borrow money. ... A loan is a type of debt. ... Investment is a term with several closely related meanings in finance and economics. ... Finance studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects. ... Islam (Arabic:  ) is a monotheistic religion based upon the teachings of Muhammad, a 7th century Arab religious and political figure. ... This article or section does not adequately cite its references or sources. ...



For centuries Muslims have integrated their religious beliefs with the external economic realities of the nations they live in. Like most things in Islam, commerce adapts to al-urf, "the custom". At times there is tension where customs are in conflict with Islamic texts, such as banks, which institutionalize the notion of interest, a guaranteed return on capital. Banks have not existed throughout Islamic history and appeared for the first time in the Ottoman empire, in the late 18th century. In Islamic law (Sharia Arabic: شريعة), al-urf العرف is the custom of a given society, leading to change in the Egypt, marriage the Urfi way means to get married without offical papers issued by the state (Zawag Urfi:زو&#1575...

In the 1980s and 1990s some Muslim bankers and religious leaders suggested ways to integrate Islamic law on usage of money with modern concepts of ethical investing. In banking this was done through the use of sales transactions (focusing on the fixed rate return modes) to achieve similar results to interest. This has been heavily criticised by many modern writers as nothing more than a sham. Year 1980 (MCMLXXX) was a leap year starting on Tuesday (link displays the 1980 Gregorian calendar). ... MCMXC redirects here; for the Enigma album, see MCMXC a. ... Ethical investing, also known as Socially responsible investing or SRI attempts to ensure that invested funds are not used to violate the investors most basic moral values or ethical codes. ... Investment is a term with several closely related meanings in finance and economics. ...

Some modern writers accepted the premises and principles used in the Western Political Economy and sought to fuse morality and some tenets of Islamic law to produce an Islamic discipline, namely Islamic Economics. Others sought to present a new philosophy and paradigm for what constitutes Islamic Economics. To date, there is no agreement as to the methodological definition and scope of Islamic Economics due to this fundamental debate and tension in the Muslim world.

Reforms under Islam

Main article: Reforms under Islam (610-661)

Michael Bonner, Professor of Medieval Islamic History at the University of Michigan, writes on poverty and economics in the Qur'an that the Qur'an provided a blueprint for a new order in society, in which all participants would be treated more fairly than before. This "economy of poverty" prevailed in Islamic theory and practice until 13th and 14th century. At its heart was a notion of property circulated and purified, in part, through charity, which illustrates a distinctively Islamic way of conceptualizing charity, generosity, and poverty markedly different from "the Christian notion of perennial reciprocity between rich and poor and the ideal of charity as an expression of community love." The Qur'an prohibits bad kind of circulation (often understood interest or usury) and asks for good circulation (zakat [legal alms giving]). Some of the recipients of charity appear only once in the Qur'an, and others—such as orphans, parents, and beggars—reappear constantly. Most common is the triad of kinsfolk, poor, and travelers. Unlike pre-Islamic Arabian society, the Qur'anic idea of economic circulation as a return of goods and obligations was for everyone, whether donors and recipients know each other or not, in which goods move, and society does what it is supposed to do. The Qur'an's distinctive set of economic and social arrangements, in which poverty and the poor have important roles, show signs of newness. The Qur'an told that the guidance comes to a community that regulates its flow of money and goods in the right direction (from top down) and practices generosity as reciprocation for God's bounty. In a broad sense, the narrative underlying the Qur'an is that of a tribal society becoming urbanized. Many scholars have characterized both the Qur'an and Islam as highly favorable to commerce and to the highly mobile type of society that emerged in the medieval Near East. Muslim tradition (both hadith and historiography) maintains that Muhammad did not permit the construction of any buildings in the market of Medina other than mere tents; nor did he permit any tax or rent to be taken there. This expression of a "free market"—involving the circulation of goods within a single space without payment of fees, taxes, or rent, without the construction of permanent buildings, and without any profiting on the part of the caliphal authority (indeed, of the Caliph himself)—was rooted in the term sadaqa, "voluntary alms." This coherent and highly appealing view of the economic universe had much to do with Islam's early and lasting success. Since the poor were at the heart of this economic universe, the teachings of the Qur'an on poverty had a considerable, even a transforming effect in Arabia, the Near East, and beyond.[1] Many Reforms took place under Islam between 610 and 661, including the period of Muhammads mission and the rule of his four immediate successors. ... Interest is the rent paid to borrow money. ... Of Usury, from Brants Stultifera Navis (the Ship of Fools); woodcut attributed to Albrecht Dürer Usury (//, from the Medieval Latin usuria, interest or excessive interest, from Latin usura interest) was defined originally as charging a fee for the use of money. ... This is a sub-article of Islamic economical jurisprudence. ... Pre-Islamic Arabia is studied by Islamic scholars because it is the context in which Islam, as practiced today, was formed. ... The Middle Ages formed the middle period in a traditional schematic division of European history into three ages: the classical civilization of Antiquity, the Middle Ages, and modern times. ... The Near East is a term commonly used by archaeologists, geographers and historians, less commonly by journalists and commentators, to refer to the region encompassing the Levant (modern Israel, Jordan, Syria and Lebanon), Turkey, Mesopotamia (Iraq and eastern Syria). ... This article or section does not cite any references or sources. ... For the river and also village in Norway named Sira, see Sira, Norway. ... For main article see: Caliphate Khalif is the head of state in a Caliphate, and the title for the leader of the Islamic Ummah, or global Islamic nation. ... Sadaqa is voluntary Islamic charity as opposed to zakat, or obligatory charity. ...


Main article: Islamic banking

Islamic economic institutions, not just the Islamic bank but all those connected with Islamic banking, claim to operate on the basis of "zero interest." Critics of Islamic economics argue, however, that the fundamental characteristic of charging interest (i.e. charging a premium, on the principal amount of a loan, for the time value of the loaned money) is not truly eliminated in Islamic banking, but rather the interest is merely hidden and relabeled. This is a subarticle to Islamic economics. ...

For example, consider the practical reality of purchasing a vehicle from an Islamic bank under an allegedly "zero interest" loan. The procedure, generally, is that the client tells the Islamic bank which vehicle he or she would like to own. The Islamic bank then purchases that vehicle in its name, and sells it to the client at a marked-up price, under an agreement that the new marked-up price of the vehicle must be paid in a certain number of installments of a certain time period. Thus a $20,000 car might cost $35,000 if purchased from an Islamic bank at "zero interest," 5 year loan. Of course, the bank charges the extra $15,000 on top of the $20,000 cost of the car because money has a time value (that is to say, a payment of $20,000 5 years from now is worth less than a payment of $20,000 today). This is also why a $20,000 car could cost $35,000 if the purchase were financed by an interest bearing loan issued by a non-Islamic financial institution. This transaction utilises valid sales transactions called murabaha, but violates Islamic law by the bank usually not taking delivery or connecting two independent contracts or taking of legally enforable guarantees from the buyer.

Usually, time value of money is compensated to the lender by the lender charging the borrower interest on the principal amount of the loan. Islam prohibits time value of money in itself as producing no value - in conjunction with other value driven agreements the idea is entertained. The time value of money (TVM) is a way of calculating the value of a sum of money, at any time in the present or future. ...

In the case of Islamic banking, the lost time value is compensated by utilising a sales contract, charging a mark-up on the home or vehicle that the client might be seeking to purchase by way of a loan. The vehicle or mortgage usually remains in the name of the bank, until the principal loan including the mark-up has been paid. In the case of a business loan, instead of charging interest over the time that the principal amount is loaned out, an Islamic bank will demand a certain percentage of the borrower's business profits for an indefinite period of time. So it is the principle of sharing and the bank is a partner who obtains losses as profits. This is because of a law in the islamic finanical theory that you are not allowed to enjoy the profits if you did not take its risk based on the famous tradition, al-kharaj bi damaan - return is determined by exposure to risk/liability.

Under a conventional interest based loan it is possible to "call" the loan if the interest rate drops and the borrower finds that he can find cheaper financing (i.e. pays off the entire loan before the end of its term, thus paying less interest). However, there is no way to call a loan issued by an Islamic bank. Thus, while the borrower from an Islamic bank is protected against interest rate increases, the borrower cannot benefit from interest rate drops.

In theory, Islamic banking should be synonymous with full-reserve banking, with banks achieving a 100% reserve ratio [1]. However in practice this is rarely the case, another point of strong criticism of "Islamic Banking". Full-reserve banking is a theoretically conceivable banking practice in which all deposits, banknotes, and notes in a financial system would be backed up by assets with a store of value. ... It has been suggested that this article or section be merged with Reserve requirements. ...

Debt arrangements

Most Islamic economic institutions advise participatory arrangements between capital and labor. The latter rule reflects the Islamic norm that the borrower must not bear all the cost of a failure, as "it is God who determines that failure, and intends that it fall on all those involved." Capital has a number of related meanings in economics, finance and accounting. ...

Conventional debt arrangements are thus usually unacceptable - but conventional venture investment structures are applied even on very small scales. However, not every debt arrangement can be seen in terms of venture investment structures. For example, when a family buys a home it is not investing in a business venture - a person's shelter is not a business venture. Similarly, purchasing other commodities for personal use, such as cars, furniture, and so on, cannot realistically be considered as a venture investment in which the Islamic bank shares risks and profits for the profits of the venture.

Natural capital

Perhaps due to resource scarcity in most Islamic nations, this form of economics also emphasizes limited (and some claim also sustainable) use of natural capital, i.e. producing land. These latter revive traditions of haram and hima that were prevalent in early Muslim civilization. Sustainability is an attempt to provide the best outcomes for the human and natural environments both now and into the indefinite future. ... This article or section does not cite its references or sources. ... This article covers the word as used in Islamic urban planning. ... Hima means (is Arabic for) inviolate zones solely for the conservation of natural capital, typically fields, wildlife and forests (contrast haram to protect areas for more immediate human purposes). ...


Social welfare, unemployment, public debt and globalization have been re-examined from the perspective of Islamic norms and values. Islamic 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. It remains to be seen [vague] if they will find niches - although hybrid approaches, e.g. Grameen Bank which applies classical Islamic values but uses conventional lending practices, are much lauded by some proponents of modern human development theory. ... This article or section does not cite any references or sources. ... This page is a candidate to be copied to Wiktionary. ... A KFC franchise in Kuwait. ... The Grameen Bank (Bangla: গ্রামীণ ব্যাংক) is a microfinance organization and community development bank started in Bangladesh that makes small loans (known as microcredit) to the impoverished without requiring collateral. ... Human development theory is an economic theory that merges older ideas from ecological economics, sustainable development, welfare economics, and feminist economics. ...

Islamic stocks

In June 2005 Dow Jones Indexes, New York, and RHB Securities, Kuala Lumpur, teamed up to launch a new "Islamic Malaysia Index" —a collection of 45 stocks representing Malaysian companies that comply with a variety of Shariah-based criteria. Three variables (the total debt of an indexed company, its total cash plus interest-bearing securities and its accounts receivables) must each be less than 33% of the trailing 12-month average capitalization, for example. 2005 : January - February - March - April - May - June - July - August - September - October - November - December- → Deaths in June June 27: Shelby Foote June 27: John T. Walton June 26: Richard Whiteley June 25: John Fiedler June 25: Chet Helms June 24: Paul Winchell June 21: Jaime Cardinal Sin June 20: Jack Kilby... Linear graph of the DJIA from 1901 until today Logarithmic graph of the DJIA from 1901 until today The Dow Jones Industrial Average (NYSE: DJI, also called the DJIA, Dow 30, or informally the Dow industrials, the Dow Jones or The Dow) is one of several stock market indices created... NY redirects here. ... This article does not cite its references or sources. ...

Popularity and availability

Today there are many financial institutions, even in the Western world, offering financial services and products in accordance with the rules of the Islamic finance. For example, legal changes introduced by Chancellor Gordon Brown in 2003, have enabled British banks and building societies to offer so-called Muslim mortgages for house purchase. Islamic economics in practice. ... This article or section does not adequately cite its references or sources. ... Building society was the name given in 19th century Britain for working mens co_operative savings groups: by pooling savings, members could buy or build their own homes. ...

In 2004 the UK's first stand alone Sharia'a compliant bank was launched, the Islamic Bank of Britain. They offer products and services to its UK customers that utilise the Islamic financial principles; such as Mudaraba, Murabaha, Musharaka and Qard. The Islamic Bank of Britain is a commercial bank in the United Kingdom, established in August 2004 to offer Sharia’a compliant financial service products to British Muslims. ...

The Islamic finance sector was worth between 300 and 500 billion dollars (237 and 394 billion euros) as of September 2006, compared with 200 billion dollars in 2004. The number of Islamic retail banks and investment funds number in their hundreds and many Western financial institutions offer products that comply with Sharia law, including Citigroup, Deutsche Bank, HSBC, Lloyds TSB and UBS. [2] Institutional fund management is fund management conducted by large financial firms such as banks, insurance companies and major investment organisations (e. ... Sharia (Arabic شريعة also Sharia, Shariah or Syariah) is traditional Islamic law. ... Citigroup Inc. ... Deutsche Bank AG NYSE: DB (German for German Bank) is a multinational bank operating worldwide and employing more than 67,500 people (December, 2005). ... HSBC Holdings plc (LSE: HSBA, SEHK: 005, NYSE: HBC, Euronext: HSBC, BSX: 1077223879) is one of the largest banking groups in the world, ranked the fifth-largest company and third-largest banking company in the world in Forbes Global 2000. ... Lloyds TSB Group plc is a group of financial services companies, based in the United Kingdom, which was created in 1995 following the merger of the TSB Group and the Lloyds Bank Group. ... UBS can refer to: UBS AG, a banking group Unbundled Bitstream Services United Building Society - the name of several financial institutions in different countries around the world. ...

Business Method Patents

With the recent ability to patent new methods of doing business in the United States, a small number of patent applications have been filed on methods for providing Sharia compliant financial services. These pending patent applications include: A patent is a set of exclusive rights granted by a state to a patentee (the inventor or assignee) for a fixed period of time in exchange for the regulated, public disclosure of certain details of a device, method, process or composition of matter (substance) (known as an invention) which... Business method patents are a class of patents and one of many legal aspects of business. ... A patent application is a request pending at a patent office for the grant of a patent for the invention described and claimed by that application. ...

  • US patent US20030233324A1Declining balance co-ownership financing arrangement. This discloses an allegedly Sharia compliant financing arrangement for home purchases and refinances that does not involve the payment of interest.
  • WO patent WO06068837A2 Controlling a Computer System Enabling Sharia-Compliant Financing. This discloses an improved computer system for carrying out Sharia compliant financial transactions.


  1. ^ Michael Bonner, "Poverty and Economics in the Qur’an", Journal of Interdisciplinary History, xxxv:3 (Winter, 2005), 391–406
  • Muhammad Nijatullah Siddiqui, Muslim Economic Thinking, (Islamic Foundation, Leicester, UK)
  • Syed Nawab Haider Naqi, Ethics and Economics: An Islamic Synthesis, (Islamic Foundation, Leicester, UK)
  • M. Umar Chapra, Islam and the Economic Challenge, (Islamic Foundation, Leicester, UK)
  • Angelo M. Venardos, Islamic Banking & Finance in South-East Asia: Its Development & Future, (World Scientific Publishing, Singapore)
  • Abbas Mirakhor, Theoretical Studies in Islamic Banking and Finance, (Islamic Publications International)
  • Fatwa Dewan Syariah Nasional - Majelis Ulama Indonesia Fatwa about many issues in Islamic Economics
  • Islamic Economics book list
  • Islamic Banking references
  • Islamic Banking references (GDRC)

Uma Chapra is an economist who has written extensively on the issues of Islamic finance. ... Abbas Mirakhor is an International Monetary Fund Executive Director representing the Iranian government at the IMF. Abbas Mirakhor has served as an economist in the Research Department of the IMF and was formerly Professor of Economics at the Florida Institute of Technology. ...

See also

There are many new trends in Islamic Philosophy and meanwhile some traditional schools are still very alive and active. ... Islamization of knowledge is a term which describes a variety of attempts and approaches to synthesize the ethics of Islam with various fields of modern thought. ... Green economics is an approach to economics in which the economy is considered to be a component of, and dependent upon, the natural world within which it resides and of which is it considered a part. ... Ibn Khaldūn or Ibn Khaldoun (full name Arabic: , ) (May 27, 1332/732AH – March 19, 1406/808AH), was a famous Arab Muslim historian, historiographer, demographer, economist, philosopher and sociologist born in present-day Tunisia. ... OIC Member States; Full members in blue/Observers in pink The 57 Organization of Islamic Conference (OIC) countries have a combined GDP (at PPP) of $5,540 billions. ...

External links



Share your thoughts, questions and commentary here
Your name
Your comments

Want to know more?
Search encyclopedia, statistics and forums:


Press Releases |  Feeds | Contact
The Wikipedia article included on this page is licensed under the GFDL.
Images may be subject to relevant owners' copyright.
All other elements are (c) copyright NationMaster.com 2003-5. All Rights Reserved.
Usage implies agreement with terms, 1022, m