18 Nationalised Property is neither Public nor State Property

Nationalisation is one of the practices of the Capitalist system, which is the transferral of individual property to State property, if the State viewed that there was a public interest which required the ownership of this property (by the State), which is originally owned by individuals. The State is not obliged to undertake nationalisation; rather it is free to nationalise if it chose to, or to leave the property as it was without nationalisation. This behaviour is different from that regarding the public property and State property, which are according to the rules of Islam, consistent with the nature of the property and its description, and it is so, irrespective of the view of the State. Thus the reality of the property has to be examined; if there was a right of all Muslims in it, then it would be a State property and she should own it. But if all the Muslims had no right in it, then it remains an individual property, which the State should not own. And if the property is of the community utilities or of the minerals, or its nature does not allow its individual ownership, then it becomes naturally a public property and the State cannot keep it as an individual property. If such property was not of the category of public property, then it has to remain as an individual property, and the State absolutely cannot nationalise it, nor can it own it against the will of its owner, unless He accepted to sell it to the State as He would sell to any individual, and the State bought it from Him as any individual would buy it. Thus the State cannot own the properties of individuals by force, under the pretence of the public interest, even if it paid its price; this is because the individual’s properties have to be respected and protected, and no one is allowed to commit aggression with regards to them even if it was the State. If this took place, the aggression would be considered eligible to be a subject of complaint, which the individual owner could submit to the Mahkamat al- Mathalim (court of unjust acts), allowing his complaint to be settled (and the unjust act removed). This is because the Khalifah has no right to take anything that is under the authority of anybody, except by a known and confirmed right. The State also cannot keep any part of the public or State properties in the hand of an individual under the pretence of the public interest, because the interest of the properties has been determined by the Shar’a when it identified the public property, State property and the individually-owned property.

Thus, it becomes clear that property owned by nationalisation is not considered to be of the public property, nor of the State property, or is it of the divine rules; it is rather one of the patches of the capitalist system.

Superior Economic Model : Islamic System

Download Original eBook (PDF) : The Economic System in Islam.pdf