Islamic Economics

1927 Words4 Pages
bulb-icon

Recommended: Advantages of islamic finance

Islam is a religion that was founded in the year 622 AD by the prophet Mohammed. Mohammed founded the religion in the city of Mecca, in what is now present day Saudi Arabia. The God of Islam is referred to as Allah, which means the one true god. The holy book of Islam is the Qu'ran, which is considered to be the words of Allah as revealed to Mohammed. Islam is an Arabic word that means to submit. A Muslim is a person who submits to Allah and follows the teachings of Islam (World Religions, 2003).

Muhammad was born in 570 AD in Mecca, and Muslims believe that in 610AD he began to receive the word of Allah through the angel Gabriel. He received these messages over a 22 year period while he lived in Mecca and Medina in Arabia. Mohammed assembled these words and teachings into a book called the Qu'ran. The Qu'ran is considered to be the holy words of Allah and is the sacred text of Islam. The Qu'ran makes up the foundations of Islamic law (Worldbook Online, 2003).

Islam is not just a religion, but it is a way of life. The Creator of humanity, Allah, gives guidelines in the Qu'ran that direct all aspects of life, including the economic aspect. Not only must Muslims follow the law of Islam regarding prayer and fasting, they also must obey the rules of economics and interest. The Qu'ran dictates how Muslims are to properly conduct economic transactions (USC, 2003).

According to a devout Muslim leader, Shayhk Nizam Yaquby, "There is no sin in the Qu'ran - not even drinking, not even fornicating, not even homosexuality - which could be as abhorrent and serious as dealing in riba (interest)." (Useem, J., 2002).

Riba is the Islamic term for interest. A large part of Islamic economics is based on the strict forb...

... middle of paper ...

...ing and pork are avoided. Asian Wall Street Journal, New York, May 18 2000. 20-21.

1999, Toronto CA. http://users.bart.nl~/abdul/book4ft.html

Presley, J.R. & Sessions, J.G. (1994). Islamic economics: the emergence of a new paradigm. The Economic Journal, 104, 584-596.

Principles of Islamic banking. Retrieved February 27, 2003 from

http://www.usc.edu/dept/MSA/economics/nbank1.html

University of Southern California (USC). (2003). Economics and Islam. Retrieved February 27, 2003, from http://www.usc.edu/dept/MSA/economics/

Useem, J. (2002). Banking on Allah. Fortune, 145(12)-154-159.

Virk, S. (2003). Women in Islam: economics. Retrieved February 27, 2003 from

http://www.members.cox.net/arshad/womeco.html

Worldbook Online. Retrieved February 27, 2003 from http://www.worldbookonline.com/wbol/wbAuth/jsp/wbArticle.jsp?/na/ar/co/ar282380.htm

Show More
Related

  • Islamic Rhetoric: The Transcendence of Allah

    584 Words  | 2 Pages

    Secondly, Muhammad is a person who received the Koran’s revelations and founded Islam as a prophet. Muhammad was born in Mecca, and when he became 12, he followed his uncle, and served as a caravan trader. While

    Read More

  • Comparative Essay On Judaism And Islam

    1063 Words  | 3 Pages

    Islam is a monotheistic religion which is originated from the Middle East or more specifically in the Arabian Peninsula early in the 7th century. This religion was founded on the teachings of the Prophet Mohammed who named this religion after the Arabic word acceptance. Islam has 2 major sects the Sunni and Shi’a. This split occurred when Mohammed died. The Sunni believed that the new leader of Islam should be determined through election but the Shi’a thought that the new leader should be Imam Ali a cousin and son in law of Mohammed. Another branch of Islam is Druze but only a small minority of Muslims who live in Lebanon, Syria and Palestine are followers of this sect (3 Faiths with One God - Islam, Arab American National Museum).

    Read More

  • How Did Muhammad Influence The Spread Of Islam

    459 Words  | 1 Pages

    As Muhammad lived his merchant life, one night he walked into a cave and saw the angel Gabriel. She told Muhammad that Allah had picked him to be the prophet to communicate his words to his people. Muhammad thought he was crazy but Khadijah consoled him and told him it was real. Gabriel continued to reveal more messages to Muhammad for the next 22 years. When he told his family and friends, they became a small group of followers. Eventually, some followers kept track of words and messages in a book called the Qur’an, which is the holy book of Islam.

    Read More

  • The Similarities And Differences Of Monotheistic Religions

    716 Words  | 2 Pages

    In the seventh century, a new faith arose in the Middle East known as the Islamic religion. Just like Christianity and Judaism, the Islamic religion believed in one God known as Allah. The founder of Islam was a very unique individual known as Mohammad. Mohammad had an amazing spiritual experience that transformed his life and made a great impact in history. He experienced visions and revelations from Allah which he accepted as messages. Mohammed

    Read More

  • Similarities Between Christianity And Islam

    1501 Words  | 4 Pages

    Unlike Christians, Muslims believe that the Prophet Muhammad spread their religion throughout the world. Islam began in the year 610, when the prophet Muhammad started receiving messages from Allah, through the Angel Gabriel. He started spreading the word to others and that is how the Islamic faith began. The Prophet Muhammad was born in 570 AD in Saudi Arabia, Mecca. Both of his parents passed away by the time he was 6 years old and he was raised by his uncle. Muhammad’s first job was a camel driver and later he started managing caravans for many merchants. In doing so, he was employed by a woman named Khadija. They soon got married and it was said that she made his life easier because Allah was through her. When Muhammad was in his 30’s, he would go to Mount Hira to be alone and pray.One day on the mountain while in solitude an angel came to him saying he was chosen to spread the word of Allah. At first, Muhammad said he was not the right one to do this mission however, the angel persisted. He went home to tell his wife and through his wife he found the courage to follow what the angel told him. Khadija was his first follower. In the first three years, he only converted 40 people in Mecca. It was only a small amount of people but it caused a lot of chaos in Mecca. Many of his followers were sentenced to death and Muhammad was next. As persecution was rising, Muhammad found out that he had followers in a city

    Read More

  • Is Islam a Violent Religion by Nature?

    981 Words  | 2 Pages

    Islam and the worship of Allah (god) began with Muhammad and his revelations that lasted for 23 years of his life from (610 C.E.- 623 C.E.). In the Islamic religion it is believed that he was the last prophet sent by Allah (god) and this made all his teachings into to Law and are looked at as the will of God. These messages were given to him through the archangel Gabriel, in a kind of continuation to the Jewish Torah and Christian Bible, which the Qur’an shares some similarities or past “history” with them such as the belief in Abraham and Jesus as a prophet, but in the eye’s of Mohammad the Jews and Christians had fallen astray from the real teaching of god.

    Read More

  • Comparing Islam, Christianity And Judaism

    804 Words  | 2 Pages

    Centered around revelations of the Prophet Muhammad, Islam was founded thousands of years ago. According to Mary Fisher, author of Living Religions, followers of Islam are commonly referred to as Muslims (Fisher, 2008 p. 381). Very similar to the structures of both Christianity and Judaism, Islam is a monotheistic religion, where worshipers believe in a single God, commonly referred to as Allah, according to Mary Fisher (Fisher, 2008 p. 386). In fact, many Muslims recognize some of the prophets from Judaism and Christianity, such as Moses and Jesus, as messengers of God, according to Mary Fisher

    Read More

  • Buddhism and Islam

    1683 Words  | 4 Pages

    Islam, on the other hand, started in Mecca, where Prophet Muhammad (Peace be Upon Him) was born. He was believed to be that last nabi (messenger) that Allah will give to the world. The religion was not well accepted in its city of origin though, due to the opposition the Prophet faced as a nascent community . Later, he was invited to Medina and Islam expanded from there.

    Read More

  • Comparing Confucianism and Islam

    2973 Words  | 6 Pages

    Islam is a religion that is based on the submission oneself to the will of God, who is called Allah. Muslims are the people believe in that, regardless of their culture, background or ethnicity. It is believed that God’s prophets brought a message for the people to worship one God without intermediaries and that prophet Muhammad was the end of G...

    Read More

  • The Spread of Islam

    813 Words  | 2 Pages

    Islam is a major world religion. Its origin can be traced back to 610 CE in Arabia. The basis of this religion is the revelations to the prophet Mohammad. Dissatisfied with his life, he traveled to deserts, hills, and the wilderness surrounding Mecca, where he lived, to meditate and reflect. He became a new man through his revelations, which many of his followers believe Allah transmitted to him through his angel Gabriel. Islam was originally an Arab religion, but many different beliefs and practices were added to it, making it extremely popular and aiding in its rapid spread. This new religion spread to many different areas surrounding Arabia, both under Mohammad and after his death. The Muslim Empire grew to encompass Spain and the Eastern Roman Empire as well Persia and Africa. Many different practices and methods were used to spread Islam. The religion itself was appealing to, in addition to the inhabitants of Arabia, other people in the surrounding areas because of its distinct religious beliefs and practices, such as the five pillars, as well as the humility and prayerfulness of the Islamic people. They fought cruel, vicious wars with their enemies. Many different things motivated the warriors to expand, but above all, the riches they would gain from the people of the Fertile Crescent encouraged them to expand.

    Read More

  • What is Islamic Finance?

    3003 Words  | 7 Pages

    Islamic finance is a financial system that operates according to Islamic law (which is called sharia) and is, therefore, sharia-compliant. Just like conventional financial systems, Islamic finance features banks, capital markets, fund managers, investment firms, and insurance companies. However, these entities are governed both by Islamic law and the finance industry rules and regulations that apply to their conventional counterparts. Therefore, islamic finance is to be assets based as oppose to the currency based whereby investment structured on exchange or ownership of assets, and money is simply mechanism for transaction process. It would based on two sources which are Al-Quran and As-Sunnah.

    Read More

  • Rise Of Islam Research Paper

    593 Words  | 2 Pages

    1. The religion of Islam is founded in 632 C.E. by the famous prophet Muhammad. Muhammad was raised up in Mecca, and soon enough got involved with the only god, Allah. He shared his sightings with the Islamic citizens and told how important it was to devote to Allah. He was later titled as the last prophet, and traveled to Medina to form a group called the umma.

    Read More

  • The Advantages of Islamic Finance and Banking

    1173 Words  | 3 Pages

    As the world has recently passed through the global financial crisis that begun in 2008 in the USA with the banks’ collapsing, analysts are giving different opinions and making new economic hypothesizes about the origin of, as well as the process of different countries escaped from the crisis. Among all these new “theories”, the case of Islamic banks is interesting in terms of its nature and consequences. In my essay, I will try to highlight the basic principles of the Islamic finance, the reasons of the restriction of interest, the most important tools used by Islamic banks in economic activities and brief explanation of them, and finally my view point of the probable future improvement of the Islamic financial system.

    Read More

  • Essay On Islamic Banking

    2135 Words  | 5 Pages

    Next, Islamic banking also are misinterpret as not profitable as it forbidden riba’ in its practices. Also, we need to aware the customers that Islamic banking not just an alternative for finacial approach, but it also provides better value to the customers.

    Read More

  • Inside Islam

    1558 Words  | 4 Pages

    ...ethics, and so forth. The crucial piece of information to remember about this religion is that they greatly emphasis unity and have a great amount of diversity. Even though it is a diverse religion, all of the Muslims are monotheistic and solely believe that Allah is the creator of everything, including humans. As a human being they believe that they are in debt to God or simply stated as according to Seyyed Hossein Nasr, “Therefore, all that we are and all that we have belongs to God for which we are indebted to Him and for whose gifts we must give thanks (shukr)” . God is the Absolute and the main point of the Islamic religion is that it is crucial to worship him and follow his commands, and that will lead to peace among everyone. This particular religion has continued to rapidly grow throughout the world and as with most religions, it will continue to grow.

    Read More

More about Islamic Economics

Open Document