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Outline of Presentation Concept Philosophy Basic Islamic Concepts of Economy & Finance Institutions
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Concept
A monetary activities based on syariah Aim to prevent injustice in acquiring sources and utilizing them to fulfill human requirements To execute humans responsibility towards Allah and society All economic activities that are in line with syariah are ibadah
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Concept
Rububiyyah stresses that Allah is the creator and source of all wealth Ubudiyyah to express ones humility and humbleness Tazkiyyah to purify the soul through the purification of wealth by giving zakah Brotherhood economics as a wasilah (medium) to form the Islamic brotherhood Powerpoint Templates
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Outline of Presentation Concept Philosophy Basic Islamic Concepts of Economy & Finance Institutions
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Philosophy
the spirit of al-adl wa al-ihsan is a guiding principle to the Islamic economic system Allah said:
Allah commands justice, the doing of good, and liberality to kith and kin, and He forbids all shamefull deeds, and injustice and rebellion: He instructs you, that ye may receive admonition (16: 90)
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Outline of Presentation Concept Philosophy Basic Islamic Concepts of Economy & Finance Institutions
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Western economic system is based on laissez faire principle. This means, free growth without government interference that involve private property, free trade and profit are the only motivation in the competitive market.
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Any profits made will be shared between them according to an agreed ratio
Losses are borne solely by the capital provider Powerpoint Templates
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Outline of Presentation Concept Philosophy Principles Basic Islamic Concepts of Economy & Finance Institutions
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Institutions
1) Zakat Institution
zakat literally means purification technically means giving out part of our property to be distributed to the eligible recipients (asnaf) Asnaf: a) Fakir e) Riqab (slave) b) Miskin f) Gharimin (debter) c) Amil g) Fisabilillah d) Muallaf h) Ibn al-Sabil (musafir) part of principles of Islam types: Zakat Fitrah, Zakat of Property Zakat ratio is 2.5% of overall income Powerpoint Templates Page 18
Institutions
2) Bayt al-Maal Institution - introduced by Caliph Umar alKhattab - serves as a financial institution in charge of financial inflow and outflow
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Institutions
3) Waqaf Institution - human consciousness and kindness to donate property for charitable purposes - foster the spirit of unity, cooperation and mutual assistance - Property that can be contributed for waqaf: land, house, car, etc.
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Institutions
4) Al-Rahnu Institution - literally means collateral - valuable property tied under collateral agreement due to debt - If the borrower could not settle the debt, the property can be used as a mode of payment - an easy way for simple cash loan
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Conclusion
Islamic economic system is proven to be a fair, just and relevant to all time, place and race. It emphasizes on the equality in the distribution and utilization of wealth among human being regardless of what position they hold in the society. It protects the welfare of the needy and maintain the rights of the wealthy base on the principle that property is belong only to Allah and human being is His trustee in this world.
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