Category Archives: Articles on Islamic Economics

Difference between Islamic Economics and Islamic Law

Salman Ahmed Shaikh Islamic law is derived from holy Quran and teachings of Prophet Muhamad (pbuh). Analogical deduction of specific juristic applications based on core principles is part of Fiqh. But, to be meritorious as a separate field of inquiry, … Continue reading

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Labor Productivity and Technical Progress in Islamic Economic Framework

Salman Ahmed Shaikh Most developing countries have lower labor productivity. Some of the reasons why people are not able to increase their productivity include: lack of education and hence lack of employable skills, poor health and malnutrition. Islam has made … Continue reading

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Critical Questions on Marxian Economics

Salman Ahmed Shaikh Marx said that labor creates surplus value in production process which the capitalists extract in an exchange. The surplus accumulates and this is exploitation of labor by capitalists. However, we note few observations below. First, the payoffs … Continue reading

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Is Islam the Cause of Underdevelopment

Salman Ahmed Shaikh It is observed that many of the developing countries are countries with Muslim majority population. In fact, if we flip this, almost every country with Muslim majority population seems to be underdeveloped. Is this a coincidence or … Continue reading

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Scope of Islamic Economics

Salman Ahmed Shaikh For recognition as a distinct field in economic inquiry, any school of economic thought has to have a distinction in methodology, offer positive explanation of an economic phenomenon or propose unique policy suggestions on recurrent and important … Continue reading

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Critical Analysis of Arguments in Favor of Interest

Salman Ahmed Shaikh In this article, we briefly analyze the logical arguments that are usually presented in the defense of interest as a price of money capital in loans. Interest is the price of risk It is not correct to … Continue reading

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Effect of Zakat on Asset and Capital Markets

Salman Ahmed Shaikh Zakat is a religious obligation to pay a part of wealth and production to the government. In its economic character, Zakat is a combination of a net worth tax and production tax. Zakat is levied as per … Continue reading

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Concept of Wealth in Islamic Economics

Omar Javaid Islamic economics enables a Muslim society to achieve certain ends. It is not so difficult to understand that material resources are required in order to achieve the objectives or Maqasid of Shariah namely “preservation and protection” of Deen, … Continue reading

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Material Progress and Islam

Salman Ahmed Shaikh Scope and objective of ‘Deen-e-Islam’ is to purify our souls and character in all walks of life and in our different roles in this world.  Islamic teachings enable us to shine in life hereafter where every soul … Continue reading

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Inheritance Law of Islam and Women

Salman Ahmed Shaikh In the ancient world, women inherited nothing and even when they inherited, they were treated like a minor. Women usually had no independent legal personality. The pre-Islamic Arabs were opposed to inheritance by woman, who could not … Continue reading

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