The Fundamentals

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 ّ‫ح‬ َ ‫} َ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 ال‬ ِ ‫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 ُ ‫قا‬ ُ َ‫}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.