Principle Of Ownership In Islam

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Basically, Islam does not explain production, consumption or investment relationship either Al-Quran or Sunnah (the tradition of the Prophet). Islamic economics has too many different with other schools of thought, resources are not limited. In Islam, resources belong to Allah, the owner of everything. Islam believes that Muslim is only the khalifah (vicegerent) and ‘abd (slave) who own the responsibility to use the resources for the good purpose and to give benefits to the society. It explains everything include allocation of resources. Fundamentally, it is based on three principles which are:
1) Principle of mixed ownership
2) Principle of economic freedom but must be within a limiting framework
3) Principle of social justice in the society …show more content…

All property owned by an individual should be shared to the society. Certain things like oil, natural resources and lakes cannot be owned by an individual. In fact, everyone is equally entitled the right to gain benefit from it as these goods are belong to the whole community. Moreover, the state may manage them on behalf of the community, as a trustee. “And those in whose wealth is recognized right for the (needy) who asks and him who is prevented (for some reason from asking)” (Quran, Al-Ma’arij:24-25). From this Quranic verse, Islam believes that society has a right to a portion of individual’s property. This verse is talking about “right” not charity. As a conclusion, Islamic economics set the rules that Muslim should remember that all property are belong to Allah and we are only the trustee besides we have to use our property for a betterment of the …show more content…

Based on this article, it explains everything regarding the allocation of resources according to Islamic law. Basically, Islam is a comprehensive and syumul religion which covers all areas of human life includes economics, munakahat and muamalat. Besides, we believe that Islam has given detailed regulations for our economic life, which is balance and fair. Based on the article, we found that Islamic economic is a system that emphasize social justice in distributing property. We strongly agreed that in Islam, resources are not limited, if there are limitations, it is imposed by the injustice of man and not by nature. Furthermore, Islamic private ownership creates a kind of externality (economy) where may lead to increase in consumption. Based on this condition, we may conclude that consumption of individuals in the society may increase too. We may relate this effect to the payment of zakat. As we all know, all Muslims must spend 2.5% of one year’s total cumulative wealth for the purpose of helping needy people and for the betterment of the

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