business or transaction is permissible Halal and does not violate any of the

Business or transaction is permissible halal and does

This preview shows page 6 - 13 out of 20 pages.

business or transaction is permissible (Halal) and does not violate any of the ordain of Islam Islam also does not restrict anyone from entering into any Halal economic transaction
Image of page 6
The Objectives of the Distribution of Wealth in Islam 1. The establishment of a practicable system of economy Free & Fair Market System In Islam Similarly, Islam also does not lay any imposition on price determination in an economy and recognizes the market forces of supply and demand in determining the prices and does not restrict any particular level of profit margin to be charged But in fact encourages moral ethics to be followed in determining the price
Image of page 7
The Objectives of the Distribution of Wealth in Islam 1. The establishment of a practicable system of economy Free & Fair Market System In Islam In general, Islam does not encourage the interference of state or any of the stakeholder in determining the prices in an economy If some of the players of the market are manipulating some of the market forces Then the state is required to interfere and regularize the market
Image of page 8
The Objectives of the Distribution of Wealth in Islam 1. The establishment of a practicable system of economy Free & Fair Market System In Islam For Example: During the Caliphate of Hazrat Umer Farooq (RA) One trader was selling goods at a price much lower than the market The Caliph ordered the trader to Raise the price up to the market level, or Leave the market
Image of page 9
The Objectives of the Distribution of Wealth in Islam 1. The establishment of a practicable system of economy Free & Fair Market System In Islam For Example: The reason for this order was to regularize the market and safeguard the interest of other traders, who were following the free market prices In the same manner, state can also interfere in cases where some of the stakeholders are involved in Hoarding and artificially manipulating the market
Image of page 10
The Objectives of the Distribution of Wealth in Islam 2. Enabling every one to get what is rightfully due to him Under materialistic economic systems, There is only one way of acquiring the right to ''wealth'', and that is a direct participation in the process of production. The basic principle of Islam in this respect is that "wealth" is, in principle the property of Allah, Himself and He alone can lay down the rules as to how it is to be used.
Image of page 11
The Objectives of the Distribution of Wealth in Islam 2. Enabling every one to get what is rightfully due to him So according to the Islamic point of view,
Image of page 12
Image of page 13

You've reached the end of your free preview.

Want to read all 20 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors