The Fundamentals

of Islamic Economics
from the Tafseer: Adhwa’ al Bayaan
by Al Imaam Muhammad Al Ameen Ash-Shinqitee

This noble verse which is His statement

{‫ن إِذَا أَ ْن َفقُوا لَمْ ُيسْ ِرفُوا َولَمْ َيقْتُرُوا‬
َ ‫}وَالّذِي‬
-along with the verses we mentioned with it clarified one of two
pillars of what is currently called economics. To clarify, there is no
difference between rational persons that all issues of economics
despite their abundance and different types categorically originally
refer back to two fundamentals to which there is no third:
The first is earning wealth
The second of them is utilizing it in its areas of use

By this you know that economics is a dual action and there is no

benefit in one of the principles without the existence of the other. If a
person was the best of people in their outlook of the aspects of
earning money but was stupid and ignorant in the ways to use it then
everything he got of wealth would be a waste to him with no benefit.
Likewise, if a person were the best of people in their outlook of the
ways to use and spend wealth in its avenues of productive spending
but was stupid and ignorant in the ways to earn it then his good
outlook on spending wouldn’t benefit him so long as he was unable
to acquire anything to spend. The verses mentioned directed
mankind and alerted them towards the economics of spending

Once you know that all issues of economics refer back to the two
principles mentioned and that the verses mentioned demonstrated one
of them, then know that the other one which is earning wealth was
demonstrated by other verses which show Allah’s opening the doors
of earning one’s money in appropriate ways like mercantile trade and
other ways such as His saying:
{ْ‫ح أَنْ تَبْتَغُوا َفضْلً مِنْ رَبّكُم‬
ٌ ‫علَيْكُ ْم جُنَا‬
َ َ‫}لَيْس‬
Also His saying:
{ِّ‫ل ال‬ ِ ْ‫ن َفض‬ ْ ‫} َفإِذَا ُقضِ َيتِ الصّل ُة فَانْتَشِرُوا فِي الَْرْضِ وَابْتَغُوا ِم‬
And He said:
{ِّ‫ل ال‬
ِ ْ‫ن َفض‬
ْ ‫ن فِي الَْرْضِ يَ ْبتَغُونَ ِم‬ َ ‫علِ َم أَنْ سَيَكُونُ مِ ْنكُمْ مَ ْرضَى وَآخَرُونَ َيضْرِبُو‬
َ}
What is meant by Allah’s bounty in the verses mentioned is profit of
trade such as His saying:
{ْ‫عنْ تَرَاضٍ مِنْكُم‬
َ ً‫ل أَنْ تَكُونَ ِتجَارَة‬ ّ ِ‫}إ‬

We previously mentioned the types of parterships and their names in

Surah Al Kahf in speaking about His statement:
{ِ‫}فَابْعَثُوا َأحَدَكُمْ ِبوَ ِرقِكُمْ هَذِ ِه ِإلَى الْمَدِينَة‬
We clarified which of them are allowed and what is not in view of the
four Imaams and clarified which they agreed about prohibiting and
which they agreed about allowing as well as what they differed over.
As such, the abundant ways Allah has opened for earning wealth in
appropriate, legislative ways is thus known.
 Once you have known what we mentioned of all of the issues of
economics referring back to two principles which are earning wealth
and using it in spending then know that each of these two principles
must have two essential matters:

The first of them is: Knowing Allah’s ruling about it because Allah,
majestic and lofty, has not permitted all ways of earning wealth but
rather has permitted some ways and forbidden others as He said:
{‫لّ الْبَيْعَ َوحَرّ َم الرّبا‬
ُ ‫لا‬ ّ‫ح‬َ ‫} َوَأ‬
Also He has not permitted using ones wealth in every way but rather
He has permitted some spending and prohibited others such as He
said:
{َ‫ل حَبّ ٍة أَنْبَ َتتْ سَبْعَ سَنَا ِبل‬
ِ ‫ل الِّ كَمَ َث‬
ِ ‫ن أَمْوَالَهُمْ فِي سَبِي‬ َ ‫ل الّذِينَ ُي ْن ِفقُو‬
ُ ‫}مَ َث‬
He said about impermissible spending:
{ِّ‫ل ال‬ِ ‫ن أَمْوَالَهُ ْم لِ َيصُدّوا عَنْ سَبِي‬ َ ‫ن الّذِينَ َكفَرُوا يُ ْن ِفقُو‬ ّ ِ‫إ‬
ً‫علَيْهِ ْم حَسْرَة‬ َ ُ‫} َفسَيُ ْن ِفقُونَهَا ُثمّ تَكُون‬

So knowing Allah’s ruling about earning wealth and using it in its

areas of spending is an essential matter that must occur because
whoever does not know that might earn wealth in an impermissible
manner, and money earned in an impermissible manner has no good
in it whatsoever. Also he may use or spend the money in a way that
is forbidden and to use it in such a way will bring sadness to the
partaker.

The second matter is to know the ways guaranteed to:

(a.) Earn wealth. -For a person may know for example that trading in
a certain type of product is permissible in a religious sense but does
not know the way to employ it for a benefit guaranteed to bring about
wealth in that legislated venture. How many business persons want
profit and his venture reciprocates loss to his disadvantage due to his
lack of knowing the ways by which to obtain profit.
 (b.) Likewise a person may know that spending upon a particular
matter is allowed and has a benefit but isn’t guided to how to actually
use his wealth in that particular mentioned way as can be witnessed
in projects that have abundant benefit so long as money is invested in
them with wisdom and benefit, for verily the permissibility of
spending/ investing in them is known but spending in a manner to
facilitate benefit isn’t known by everyone.

Hereupon you know that the greatest principles of economics are

four:
The First: Knowing Allah’s ruling about the manner of earning
money and avoiding earning in the ways that are legislatively
forbidden.
The Second: Having a good outlook on how to earn the wealth after
knowing what is permitted by the Creator of the heavens and earth
and what is not permitted.
The Third: Knowing Allah’s ruling about the ways in which wealth
is used and spent and then abstaining from the forbidden ways.
The Fourth: Having a good outlook at the ways to use and spend
wealth and avoiding what is not beneficial of them.

So whoever builds his economics upon these four foundations than

his economics are guaranteed to take care of his greater good and will
be pleasing to Allah and whoever breaches one of these four
foundations then it would be contrary to that because whoever
collects wealth in ways Allah has not permitted then his wealth has
no good in it nor blessing. This is as Allah the exalted said:
{ِ‫لّ الرّبا وَيُرْبِي الصّ َدقَات‬ ُ ‫قا‬ُ َ‫}يَ ْمح‬
Also He said:
{ِ‫عجَ َبكَ كَثْرَ ُة ا ْلخَبِيث‬
ْ َ‫} ُقلْ ل َيسْتَوِي ا ْلخَبِيثُ وَالطّ ّيبُ َولَ ْو أ‬
We spoke about the issues of usury in the verse of usury in Surah Al
Baqarah and spoke about the types of partnership and their names in
Surah Al Kahf and clarified what is permissible of them and what is
not in speaking about the statement of Allah:
{ِ‫}فَابْعَثُوا َأحَدَكُمْ ِبوَ ِرقِكُمْ هَذِ ِه ِإلَى الْمَدِينَة‬

There is no doubt that it is binding on the Muslims in the ends of the

earth to mutually cooperate on an economic system permitted by the
lord of the heavens and earth upon the tongue of His messenger, salla
allahu alaihi wa sallam, that can guarantee awareness of the ways to
acquire wealth in legislatively approved manners and its utilization in
productive legislatively allowed uses. This is because the present
economy in the ends of the earth is not permitted by the noble
religion because those who developed its avenues are not muslims.
Thus you find nothing permissible in the religion of the transactions
of banks and corporations because they either contain usury based
profits or trickery with which it is not allowed to interact such as the
types of insurance that are widely recognized by companies today in
the ends of the earth. You would hardly find anything of it free of
trickery and the prohibition of trade with trickery is firmly
established from the prophet, salla allahu alaihi wa sallam. From
what is known is that whoever currently claims the permissibility of
the types of insurance known with the corporations is erroneous
because he has no proof with him but rather the authentic proof is
contrary to what he says. And Knowledge is with Allah.