In the Name of Allah,
the Most Gracious,
the Most Merciful
Wealth is a tool, and the means by
which life is maintained. The Islamic
Shari’ah aims to establish a balanced
society, wherein social justice is
upheld and one can live an honorable
life. Allah says:
The Economic
Aspect of Islam
3
“Wealth and children are the
adornment of the life of this world.”
[18:46]
Since Islam considers money one of
the indispensable necessities without
which neither individual, nor society,
can exist, it has ordained that Zakah
be taken (2.5%) from the savings of
the rich, if the necessary amount from
which it is taken is in that person’s
possession for a full year. This money
is to be distributed amongst the poor.
It is a due right of the poor, and it is
forbidden to withhold it from them.
This does not mean that Islam
abolishes individual ownership and
private business; rather, it sanctions
and respects them. There are
many explicit texts which prohibit
transgression against the wealth and
property of others. Allah says:
“And do not eat up one another’s
wealth unjustly.” [2:188]
4
Islam has enacted laws and regulations
which guarantee the achievement
of its goal; to provide an honorable
life for each individual in the Islamic
society. Some of these regulations are:
01 Islam has forbidden interest, for
it results in people exploiting
others and devouring their wealth
wrongfully. Islam has made wealth
and property sacred. Due to the
fact that interest leads people to
forsake acts of kindness and leads
to the accumulation of wealth in
the hands of a few, Allah says:
5
“O you who believe! Be afraid of Allah
and give up what remains due to you
from usury, if you are truly believers.
And if you do not do it, then take a
notice of war from Allah and His
Messenger. But if you repent, you
may have your principal - thus you
do no wrong, nor are you wronged.”
[2:278-9]
6
02 The Religion of Islam encourages
people to give loans. It also
encourages that one extend the
period (of repayment) if one is
having difficulty repaying a loan.
One should not be harsh to that
individual if he intends on repaying
his debt. As for those who have
the means to pay the debt off, but
choose not to, a different course
of action should be taken. Allah
says:
7
“And if a debtor is in hardship, then
let there be postponement until a
time of ease.” [2:280]
said: صلى الله عليه وسلم The Prophet
“Whoever loans money to a person
in difficulty, he will receive the reward
of charity for each day he gives
them. And whoever extends the
time period for the debtor who has
difficulty returning a loan will receive
the reward of charity for each day he
does so.” [Ibn Maajah]
8
03 Islam encourages that the loan be
pardoned altogether if it is difficult for
the debtor to repay it. Allah says:
“And if a debtor is in hardship, then
let there be postponement until a
time of ease. But if you give it as
charity, then it is better for you, if you
only knew.” [2:280]
said: صلى الله عليه وسلم The Prophet
“Whoever wishes that Allah save
him from the difficulties of the Day
of Judgment, let him extend the time
period to a debtor or free him of his
loan.” [Muslim]
9
04 Hoarding and monopolizing of any
type of commodity is forbidden,
because the trader takes into his
possession products which the
people need without selling them
until the supply decreases, and
then he sells them for whatever
price he pleases. This incurs
much harm, both to the individual
and the society, the rich and the
said: صلى الله عليه وسلم poor. The Prophet
“Whoever hoards commodities
would sin...” [Muslim]
Abu Yusuf, the student of Imam Abu
Haneefah, may Allah have mercy on
him, said:
“Anything that is hoarded and proves
harmful to the public, it is considered
of the prohibited type of monopoly,
even if the thing hoarded is gold or
silver. Whoever hoards something
the public is in need of would have
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certainly misused what he owns. The
reason monopoly is prohibited is to
safeguard people from harm, for
indeed, people have many different
needs, and monopolizing therein
would incur hardship upon people.”
A ruler may force one who hoards a
commodity to sell it at a reasonable
profit which is neither detrimental to
the seller or buyer. If the monopolist
refuses to sell at that profit, the ruler
may take possession of the hoarded
commodity and sell it at a reasonable
price in order to prevent those who
may be thinking of exploiting the
people by monopolizing goods they
are in need of.
11
05 It has prohibited taxes that are
taken from a trader to allow
them to sell their goods or to
import them into the country. The
said: صلى الله عليه وسلم Prophet
“One who collects the tax imposed
on traders, will not enter Paradise.”
[Ahmad & Abu Dawood]
This tax is considered taking money
unlawfully and giving it to those who are
not entitled to it. All those who contribute
to this tax, including tax collectors,
clerks, witnesses and receivers come
under the Prophet’s saying:
12
“No flesh that grows from unlawful
things shall be admitted into
Paradise; Hellfire shall have the best
claim to them.” [Tirmidhi]
06 Islam has forbidden hoarding
wealth, and not expending from
it the due right that belongs to
Allah; both the individual, as well
as society, would stand to benefit
from this. Wealth should be
circulated in society to stimulate
the economy, and with this, all
individuals within society would
stand to benefit. Allah says:
“And those who hoard up gold and
silver and spend it not in the Way of
Allah, announce unto them a painful
torment.” [9:34]
As Islam respects individual ownership,
it imposes rights and duties therein.
Among these are obligations which
concern and relate to the owner
himself, such that he must take care of
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himself and his dependents, relatives
and those he must maintain. There
are other rights which concern the
individuals in society, such that they
must pay Zakah, and give out charity,
and help others. Other obligations
concern the society at large, such
that they must spend to build schools,
hospitals, orphanages, mosques, and
other facilities which would benefit
society. What is sought by this is that
resources are not amassed in the
hands of a few within society.
07 It has been forbidden to give
less in measure and weight, for
it is a type of theft, treachery and
deception. Allah says:
“Woe to those who give less in
measure and weight. Those who,
when they have to receive by measure
from men, demand full measure. And
when they have to give by measure or
weight to men, give less than due.”
[83:1-3]
14
08 It has prohibited domination of
public domain, such as water and
public pastures, which do not
belong to anyone, and has also
prohibited preventing people from
benefiting from it. The Messenger
said: صلى الله عليه وسلم of Allah
“There are three persons whom
Allah will not speak to on the Day
of Judgment, nor look at: a seller
who falsely swears that he bought a
product for a higher price than which
the buyer bought it, a person who
swears to a false oath after ‘Asr (late
15
afternoon) so as to usurp the money
of a Muslim, and a man who refuses to
give excess water. On that day, Allah
will say to him, ‘Today I withhold from
you my Grace as you withheld what
was in excess of your needs, though
you are not its creator.’” [Bukhari]
said: صلى الله عليه وسلم The Prophet
“All Muslims have equal shares in
three things: pasture, water, and fire.”
[Ahmad]
16
09 The Religion of Islam brought
about a just system of inheritance
through which wealth is
distributed amongst a man’s
rightful heirs; whether they are
young or old, male or female. No
one has the right to distribute
the inheritance in any other way.
One of the benefits of this system
is that it divides the estates, no
matter how large they may be,
into small shares, thus making it
impossible for the money to settle
with a certain group. The Prophet
said: صلى الله عليه وسلم
“Indeed, Allah has given each person
his due right. So let not one of you
bequeath something to someone
who is already allotted a portion of
the inheritance.” [Abu Dawood]
17
10 Islam has legislated endowments,
which are of two types:
A Private endowments limited to
the family and children of the
endower; in order to safeguard
them from poverty and begging.
The condition of its validity is
that the endowment should
serve charitable causes after the
endower’s progeny cease.
B Public charitable endowments
which are used to maintain
charitable causes; such as
building hospitals, schools,
streets, public libraries, Mosques,
social welfare homes for orphans
and the elderly, and all that serve
public interest.
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11 The Religion of Islam has
legislated a system of bequeathal.
Therefore, every Muslim has the
right to bequeath a portion of
his money to be used after his
death for righteous purposes. The
Religion has limited this portion,
to a third so that his heirs would
not be harmed. Aamir bin Sa’d
said:
would visit me صلى الله عليه وسلم “The Prophet
while I was sick in Makkah (Mecca).
I said to him, ‘I have some wealth,
may I bequeath all of it in charity?’
19
He replied, ‘No.’ I said, ‘Then half of
it?’ He replied, ‘No.’ Then I said, ‘A
third?’ He replied, ‘A third is much.
If you leave your heirs rich, it would
be better than to leave them relying
upon others begging for money.
Whatever you spend, it will act as a
charity for you, even a morsel of food
which your hand feeds your wife.
Perhaps Allah will raise your status
and cause some people to benefit
from you….’” [Bukhari]
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12 Islam has forbidden all that falls
under the words of Allah:
“O you who have believed, do not
consume one another’s wealth
unjustly.” [4:29]
This includes:
A Taking by force of anything
without right, for it involves
wronging others and spreading
corruption in society. The Prophet
said: صلى الله عليه وسلم
“Whoever usurps a Muslim’s right
through a false oath, Allah makes
the Hellfire obligatory upon him and
Paradise forbidden.” A man asked,
“Even if it were something negligible
He replied, ”?صلى الله عليه وسلم O Messenger of Allah
“Even if it were a twig of [the most
common tree you know].” [Muslim]
21
B Deceit and cheating. The
said: صلى الله عليه وسلم Messenger of Allah
“Whoever fights us is not from us,
and whoever deceives us is not from
us.” [Muslim]
C Bribery. Allah says:
“And do not consume one another’s
wealth unjustly, nor send it [in bribery]
to the rulers in order that [they might
aid] you to consume a portion of the
wealth of the people in sin, while you
know it is unlawful.” [2:188]
said: صلى الله عليه وسلم The Prophet
“May Allah curse the one who gives
a bribe and the one who takes it in
matters of judicial rulings.” [Tirmidhi]
Allah cursed the one who gives a
bribe because he helps to spread evil
in society; if he had not offered the
bribe there would never have been
any bribery. Allah cursed the one who
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accepts the bribe because he takes
what is not rightfully his, and breaches
the trust he was given. He takes a price
for a duty which he was designated to
do in the first place.
said: صلى الله عليه وسلم D Theft. The Prophet
“The fornicator who fornicates is
not a true believer so long as he
commits it. No thief who steals is a
true believer as long as he commits
theft. No drunkard who drinks wine is
a true believer as long as he drinks
it.” [Muslim]
For it includes taking people’s wealth
without right. Allah says:
“Sever the hand of the thief, male
or female, as a recompense for that
which they committed, a punishment
by way of example from Allah. And
Allah is All Powerful, All Wise.” [5:38]
In order for a person’s hand to be
severed as a castigatory punishment,
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the following conditions have to be
met:
Some of the scholars have stated
that the repentance of the thief is not
accepted until he returns what he has
stolen to its owner. If he has no wealth,
the owner of the wealth is asked to
pardon him. Furthermore, if the owner
pardons the thief before the case
reaches the court, then the castigatory
punishment is dropped.
E It prohibited that a person sell
something to a customer while
his brother is in the process
of negotiating a deal with him,
except if he allows him to do so.
This is because it stirs enmity
and hatred between individuals
said: صلى الله عليه وسلم in society. The Prophet
“Let not any person sell something
if his brother is about to strike a
deal, and let not any person propose
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marriage to a woman to whom his
brother has already proposed, except
if he gave him permission.” [Muslim]
03
01 The wealth must have been in
the custody and protection of the
owner
The amount stolen must meet
the minimum required amount
set for the implementation of this
punishment - hence it must be
larceny and not petty theft.
02
The motive behind the theft
must not have been the need
for food, drink, or clothing. If this
were the motive, the hand would
not be severed. This is taken
from the judgment of ‘Umar in
the year of the Ramaadah.
25
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This is an excerpt
of a larger book titled
“The Message of Islam”
by Abd Ar-Rahman
bin Abd Al-Kareem Ash-Sheha.
26
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