Home Inhaltsverzeichnis

What is Islamic Economy?

Nach oben

Islamic Banking Islamic Economy Islamic Funds Islamic Finance
An Islamic economy is a market economy guided by moral values. Economic activities are based on principles of cooperation and responsibility. Cooperation means that an economic exchange shall be beneficial to both parties involved. Transactions in which one party wins at the expense of the other are not permissible in Islam. Thus, monopolistic dealings, usury, and exploitation are prohibited. Transactions that allow both parties to win are permissible, and these include most types of activities needed for economic prosperity. Performance-based arrangements, like profit sharing or partnership, represent the most cooperative form of beneficial agreements, and thus are highly encouraged in Islam. Responsibility means that each individual is entitled for reward or return based on his effort and contribution. Thus gambling and lotteries are not permissible. Gambling allows an individual to gain based on pure luck, not on merit or effort. It shifts wealth blindly among participants leading to improper distribution of wealth. Gambling is a clear form of a zero-sum game where one party wins only if the other loses, and thus causes hatred and enmity among participants. A society where lotteries or gambling-like activities prevail is a zero-sum society, where the winner takes all, and the rest is doomed to fail. Islamic economics is a framework for studying economic activities that allow mutual benefit of exchange to be realized. It provides proper tools and techniques for evaluating economic decisions, showing when and how to achieve win/win outcomes and avoid win/lose or lose/lose ones. Islamic economics is based on the principle that Allah the Almighty created this world with plenty of resources that satisfy the needs of everyone. Thus one person's success is not necessarily achieved at the expense or exclusion of the success of others. This "win/win" framework leads to better economic behavior and performance, and thus promises better future for mankind. Islamic Banks are financial institutions established according to principles of  Islamic Economics. They provide finance and financial services in a manner leading to mutual benefit. Although finance activities are deeply rooted in Islamic history, formal Islamic banking is a recent phenomenon, whereby the first Islamic bank was established around 1963. Since then Islamic banks have developed and proliferated, reaching total assets of around $137 billions, held by more than 160 financial institutions distributed throughout the world.

*From a magazine article written by Colin Willis, Treasurer, Al Rajhi Banking & Investment Corporation.

Neues islamisches Transaktionsmodell
im Internet auf Goldbasis.

Copyright © 2008 - 2009 Baltext Publishing, Basel, Switzerland Letzte Aktualisierung: 11.08.2009